Fit and proper requirements

34 Licensed insurer must be subject to fit and proper policy for directors and relevant officers

(1)

Every licensed insurer must—

(a)

be subject to a written policy that governs the qualifications, requirements, and other criteria that a person must have or satisfy in order to be appointed, and to continue to hold a position, as a director or relevant officer of the insurer, being a policy for the purpose of ensuring that only fit and proper persons are appointed to, and continue to hold, those positions (a fit and proper policy); and

(b)

take all practicable steps to comply with that policy.

(2)

The fit and proper policy must clearly specify the qualifications, requirements, and other criteria for a particular position, including matters relating to a person’s character, competence, and experience relative to the duties of the position.

(3)

The qualifications, requirements, and other criteria for a particular position that are specified in the fit and proper policy must, in the manner specified in an applicable fit and proper standard, take into account the fit and proper matters specified in the fit and proper standard.

(4)

The fit and proper policy must—

(a)

comply with the prescribed requirements; and

(b)

contain adequate provisions—

(i)

to encourage any person to disclose information to the insurer or the Bank that may be relevant to a fit and proper assessment; and

(ii)

for giving or obtaining any consents required for the collection and use of any information by the insurer to comply with the policy or section 37 and by the Bank for its powers and functions under this Act in connection with the policy.

(5)

A licensed insurer must obtain the Bank’s approval before its fit and proper policy is amended in a material way.

(6)

A licensed insurer that fails to comply with this section commits an offence and is liable, on conviction, to a fine not exceeding $500,000.

Section 34(6): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).