Insurance Act, 1989
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Powers to intervene in cases of doubtful solvency. |
18.—(1) If the Minister has reason to believe— | |
(a) that an undertaking is or may be unable to meet its liabilities, or | ||
(b) that an undertaking whose head office is in the State is or may be unable to provide the required solvency margin, | ||
the Minister may direct the undertaking to take, by a specified date, such one or more of the following measures as he deems appropriate, either indefinitely or for a specified period: | ||
(i) to refrain from taking on new business, or new business of a specified type or class, | ||
(ii) to limit its premium income to a specified amount, | ||
(iii) to refrain from making investments of a specified class or description, | ||
(iv) to realise, within a specified period, investments of a specified class or description, | ||
(v) to maintain in the State assets of a value equal to the whole or a specified proportion of the amount of its liabilities in respect of business carried on in the State, | ||
(vi) to take such further measures as may be specified in the direction. | ||
(2) The powers in subsection (1), paragraphs (i) to (vi), may also be exercisable by the Minister on any of the following grounds: | ||
(a) if the undertaking has failed to comply with a provision of the Insurance Acts, | ||
(b) if the Minister is not satisfied that adequate arrangements are in force or will be made for the reinsurance of risks against which persons are insured by the undertaking in the course of carrying on business, being risks of a class in the case of which he considers that such arrangements are required, | ||
(c) if there exists a ground on which the Minister would be prohibited from issuing an authorisation to the undertaking if it were applied for, | ||
(d) if it appears to the Minister that there has been a substantial departure from any proposal or forecast submitted to him and on the basis of which an authorisation was issued to the undertaking. | ||
(3) In the case of an undertaking whose head office is in another Member State of the Community the Minister shall, before issuing a direction under this section, notify the supervisory authority of the Member State in which the head office is situated. | ||
(4) If the undertaking does not comply with a direction under this section the Minister may suspend or revoke its authorisation in any class or part of a class of business in accordance with the procedures provided for in section 58 . | ||
(5) The Minister may apply to the Court for an order confirming a direction under this section or for an order confirming and extending the period of operation of such a direction for such time as the Court may, having regard to all the circumstances, consider appropriate, and the Court may grant such an order. | ||
(6) The Court may, in addition to or in lieu of making an order under subsection (5), make such order in relation to the matter as may appear to it to be necessary. | ||
(7) The whole or part of proceedings under this section or of an appeal in relation thereto may be heard in chambers. | ||
(8) An undertaking to which a direction is given under this section may apply to the Court for an order setting aside the direction and the Court may grant such an order. | ||
(9) The Minister may from time to time vary or revoke a direction given under this section. |