Insurance (Amendment) Law, 2019 (Law 14 of 2019)

Summary

This is a short amending Law that updates the Insurance Law, 2010 to bring it into line with company-vehicle legislation introduced since 2016, in particular the Limited Liability Partnership Law, 2017. It makes three technical amendments, each to a section that previously referenced only Part XVIIA of the Companies Law and Part 12 of the Limited Liability Companies Law. The amendments update those cross-references to the 2018 Revisions of those Laws and add a reference to Part 8 of the Limited Liability Partnership Law, 2017.

• Section 20: Duties of an insurer's auditor.
• Section 21: Requirements applicable to insurance managers.
• Section 24: The Authority's powers.

The practical effect is that licensees under the Insurance Law who provide company management services (and their auditors and insurance managers) must now also have regard to, and comply with, Part 8 of the Limited Liability Partnership Law, 2017, in the same way they were already required to comply with the equivalent provisions of the Companies Law and Limited Liability Companies Law. CIMA's supervisory and enforcement powers under section 24 are correspondingly extended to cover compliance with this new reference.

This is a narrow legislative housekeeping amendment rather than a new regulatory regime. It does not introduce new filings, fees, or standalone compliance programmes, but it does widen the scope of existing statutory compliance duties for affected insurance licensees to include limited liability partnership structures.

Key obligations

• Licensees providing company management services under the Insurance Law, 2010 must comply with Part 8 of the Limited Liability Partnership Law, 2017, in addition to the previously referenced company/LLC law provisions.
• Auditors of insurers must have regard to compliance with Part 8 of the Limited Liability Partnership Law, 2017 (as well as the Companies Law (2018 Revision) and LLC Law (2018 Revision)) when performing their duties under section 20 of the Insurance Law.
• Insurance managers must comply with the updated cross-referenced provisions, including Part 8 of the Limited Liability Partnership Law, 2017, under section 21(2)(g) of the Insurance Law.

Applies to

insurance licensees, licensees providing company management services, insurance managers, auditors of insurers