Declaration of Compliance - General Business

Summary

This is a template form used by directors of a Bermuda general business insurer to declare compliance with key regulatory requirements under section 15A of the Insurance Act 1978. It is completed and signed annually for the relevant financial year end and covers five specific compliance areas.

• Minimum criteria: Directors must declare whether the company has complied with all requirements of the minimum criteria applicable to it.
• Solvency margin: Declaration of compliance or non-compliance with the minimum margin of solvency.
• Enhanced capital requirement: Declaration of compliance or non-compliance with the applicable enhanced capital requirement (ECR).
• Regulatory conditions: Declaration of compliance or non-compliance with all applicable regulatory conditions, directions, restrictions and approvals imposed on the insurer.
• Liquidity ratio: Declaration of compliance or non-compliance with the minimum liquidity ratio for general business.

Where any item is marked as non-compliant, the company must include a description of the non-compliance and any remedial action taken between the relevant year end and the filing date. The declaration must be signed and dated by the company's directors.

Key obligations

• Directors of a general business insurer must complete and sign a Declaration of Compliance for each financial year end under section 15A of the Insurance Act 1978.
• The declaration must state whether the company has complied or not complied with the minimum criteria, minimum margin of solvency, applicable enhanced capital requirement, applicable regulatory conditions/directions/restrictions/approvals, and the minimum liquidity ratio for general business.
• If any area of non-compliance is identified, the company must include a description of the non-compliance and any remedial action taken between the year end and the filing date.

Applies to

general business insurers (Bermuda-registered)