Insurance Appeal Tribunal Regulations 2011 (Pre-Consultation Draft)

Summary

This is a pre-consultation draft of regulations that would govern how the Insurance Appeal Tribunal operates under section 44D(2) of the Insurance Act 1978. It sets out the procedure for bringing and hearing appeals against decisions of the Bermuda Monetary Authority (the Authority), including deregistration orders, capital adjustment notices, and directions to remove controllers or officers. As a pre-consultation draft, it is not yet in force and is intended to solicit industry feedback before finalisation.

• Who can appeal: Registered insurers, insurance managers, brokers, agents, salesmen, and controllers or officers subject to Authority action under sections 41, 42, 32, 6D, 30F, 30H or 30JC of the Insurance Act 1978.
• Appeal procedure: Sets time limits and content requirements for notices of appeal, grounds of appeal, supplementary (confidential) grounds, the Authority's disclosure of documents, and the Authority's response.
• Tribunal process: Covers empaneling the tribunal, preliminary hearings, interim relief applications to suspend an Authority decision, evidence and hearing procedure, withdrawal of appeals, costs, and consolidation of multiple appeals.
• Confidentiality safeguards: Allows appellants to withhold commercially sensitive or confidential information from the main grounds of appeal by filing it separately as restricted information under section 52 of the Act.
• Offence provision: Creates a summary offence, carrying a fine of up to 10,000 dollars, for giving false evidence or false written statements to the tribunal on a material matter.

Because this is only a pre-consultation draft, none of the timelines or obligations described are currently binding; they represent the proposed framework that would apply once the regulations are made and come into force.

Key obligations

• An appellant must file a notice of appeal with the Secretary at the Ministry of Finance within the prescribed period after the Authority's relevant decision (e.g. 10 days for insurer/manager deregistration orders, 28 days for controller/officer removal directions or capital adjustment appeals by controllers/officers).
• When filing a notice of appeal, the appellant must serve a copy on the Authority and, where applicable, on the registered person concerned.
• The appellant must file a notice setting out the grounds of appeal within 14 days of filing the notice of appeal, and serve copies as required.
• A registered person may file a separate notice of supplementary grounds of appeal at the same time as the grounds of appeal to protect confidential or commercially sensitive information.
• The Authority must file the Schedule-listed disclosure documents with the Secretary within 14 days of receiving a copy of the notice of appeal, and serve a list or copies on the appellant.
• The Authority, as respondent, must file a response to the grounds of appeal within 28 days of receiving the notice of grounds of appeal, and serve it on the appellant and other relevant parties.
• The chairman must serve notice of the preliminary hearing date, time and place not earlier than 21 days and not later than 35 days after receipt of the Authority's response, and at least 5 days before the hearing.
• Parties seeking to amend grounds of appeal, supplementary grounds, or the Authority's response must follow the prescribed leave and notice procedures.
• Costs or expenses directed to be paid by the tribunal must be taxed by the Registrar of the Supreme Court if required.

Applies to

registered insurers, insurance managers, insurance brokers, insurance agents, insurance salesmen, controllers, officers, the Bermuda Monetary Authority

Deadlines

• 10 days: Time within which an insurer, insurance manager, broker, agent or salesman must file a notice of appeal after being served an order of cancellation of registration.
• 28 days: Time within which a registered person, controller or officer must file a notice of appeal against a direction to remove a controller/officer, a cancellation on minimum-criteria grounds, or a notice of objection.
• 14 days from filing the notice of appeal: Deadline for the appellant to file the notice setting out grounds of appeal.
• 14 days of receiving a copy of the notice of appeal: Deadline for the Authority to file disclosure documents listed in the Schedule with the Secretary.
• 28 days of receiving a copy of the notice of grounds of appeal: Deadline for the Authority to file its response with the Secretary.
• not earlier than 21 days and not later than 35 days after receipt of the Authority's response, and not less than 5 days before the hearing: Window within which the chairman must serve notice of the preliminary hearing date, time and place.