Notice - Proposed Amendment to the Life Insurance Act 1978 (2013-03-13)

Summary

This is a notice from the Bermuda Monetary Authority (BMA) posting a proposed amendment to the Life Insurance Act 1978 for industry information and comment. It is not a final rule change; it describes two clarifications under consideration and invites feedback before any amendment is made.

• Priority of assignment: Clarifies that where a life policy has been validly assigned under a policy, priority is established under the Life Insurance Act regardless of any additional registrations made under the Companies Act 1981 and/or the Mortgage Registration Act 1786.
• Scope of application: Extends the ambit of the Life Insurance Act to cover all contracts expressed to be governed by Bermuda law, not only contracts made in Bermuda (as shown in the attached Exhibit A comparing the old and revised section 2 wording).
• Industry input: The proposed wording was suggested by industry representatives supported by Business Bermuda, and the BMA's Policy, Legal and Enforcement Department found no major policy concerns triggered by the changes.

The BMA invites comments on the proposal to be sent to policy@bma.bm. No effective date or compliance deadline is set, as the amendment has not yet been enacted at the time of this notice.

Applies to

life insurers, holders and assignees of life insurance policies governed by Bermuda law