Declaration of Compliance - Long-Term

Summary

This is a template form used by long term (life) insurers in Bermuda to satisfy the annual Declaration of Compliance requirement under section 15A of the Insurance Act 1978. It is signed by the company's directors and confirms, or discloses non compliance with, key regulatory requirements as at the relevant financial year end.

• Minimum criteria: Directors declare whether the insurer has complied with all requirements of the minimum criteria applicable to it.
• Minimum margin of solvency: Directors declare whether the insurer has complied with the minimum margin of solvency.
• Enhanced capital requirement: Directors declare whether the insurer has complied with the applicable enhanced capital requirement.
• Regulatory conditions: Directors declare whether the insurer has complied with all applicable regulatory conditions, directions, restrictions and approvals imposed on it.
• Non compliance disclosure: Where any area of non compliance is identified, the form requires a description of the non compliance and any remedial action taken between the relevant year end and the filing date.

The form must be signed and dated by the company's directors for the year ending December 31 of the relevant year, and is filed with the Bermuda Monetary Authority as part of the insurer's regulatory reporting obligations under the Insurance Act 1978.

Key obligations

• Directors of a long term insurer must complete and sign the Declaration of Compliance annually for the year ending December 31, confirming compliance with the minimum criteria, minimum margin of solvency, enhanced capital requirement, and applicable regulatory conditions.
• Where the insurer has not complied with any of these requirements, the declaration must include a description of the non compliance and any remedial action taken between the relevant year end and the filing date.

Applies to

long term insurers