Insurance (Amendment) Law, 2012 (Law 9 of 2012)

Summary

This is a short amending law that makes technical and transitional changes to the Insurance Law, 2010. It inserts a clarifying phrase into section 4(4)(c) to cover companies registered by way of continuation (not just those originally incorporated under the Companies Law), and it replaces paragraphs 4 and 5 of the Schedule to the Insurance Law, 2010, which deal with saving existing licences and implementing new licensing conditions.

The substantive effect is transitional: licences, dispensations, approvals or directions granted under the old (repealed) insurance law and still in force when this amendment commences continue in force for 18 months, or until the Cayman Islands Monetary Authority issues its written approval under the new regime, if sooner.

• Licence class confirmation: During the same 18-month window, existing licensees must tell the Authority in writing which class of licence under section 4(3) of the Insurance Law, 2010 they wish to hold going forward, after which the Authority can approve the licence on the same terms or impose new, varied or revoked conditions.
• Compliance deadline: Licensees not yet meeting the conditions in section 4(4) or section 8(2) must come into compliance within the same 18-month period, unless the Authority grants a longer period for good cause.

In short, this is a savings-and-transition mechanism for insurers who were licensed under the prior insurance law regime, requiring them to actively engage with CIMA to confirm or obtain their licence class and come into compliance with the 2010 Law's conditions within a defined window, rather than a document creating new ongoing regulatory requirements for the insurance sector generally.

Key obligations

• Existing licensees must notify the Authority in writing, within eighteen months of this Law coming into force, of the class of licence under section 4(3) of the Insurance Law, 2010 under which they wish to operate.
• Licensees not in compliance with the conditions specified in section 4(4) or section 8(2) of the Insurance Law, 2010 must come into compliance within eighteen months of this Law coming into force, or such longer period as the Authority may permit for good cause shown.

Applies to

insurance licensees (existing licensees under the repealed Insurance Law licensed prior to the Insurance Law, 2010 taking effect)

Deadlines

• eighteen months after this Law comes into force: Saving of existing licences, dispensations, approvals or directions granted under the repealed Law continues only until this date (or, if sooner, the date of the Authority's written approval under the new regime).
• within eighteen months of the coming into force of this Law: Existing licensees must notify the Authority in writing of the licence class under section 4(3) they wish to hold.
• within eighteen months of the coming into force of this Law (or such longer period as the Authority may permit for good cause): Existing licensees not compliant with conditions under section 4(4) or section 8(2) must achieve compliance.