Insurance Business
(Appointment of Manager) (Jersey) Order 2008
1 Interpretation
(1) In
this Order –
“insurance business”
means insurance business to which Article 5 of the Law applies;
“Law” means
the Insurance
Business (Jersey) Law 1996;
“policy
holder” means a person who is the holder of, or may receive a benefit
under, a policy securing a contract of insurance.
(2) In
this Order a note contained in a paragraph of the Schedule to this Order forms part
of that paragraph.
2 Prescribed
circumstances in which the Commission may apply to the Court for appointment of
a manager
(1) The
Schedule sets out the prescribed circumstances for the purposes of Article 9A
of the Law.
(2) The
Commission may apply to the Court for the appointment by the Court of a person
to manage the affairs, or any part of the affairs, of a person in so far as
those affairs relate to the carrying on of insurance business to which Article 5
of the Law applies where the Commission is satisfied that there is sufficient
evidence to show the existence of any of the cases set out in the Schedule.
3 Citation
This Order may be cited
as the Insurance Business (Appointment of Manager) (Jersey) Order 2008.
SCHEDULE[1]
(Article 2)
PRESCRIBED CIRCUMSTANCES
Case 1
There has been inadequate
management of the affairs of the insurance business carried on by a person
(“the person”).
Note Such inadequate
management may be evidenced, in particular, by –
(a) the dishonesty of a shareholder controller
or any director or employee of the person;
(b) any
person committing a serious breach of a fiduciary duty in respect of the
person’s insurance business;
(c) the person
having insufficient resources to continue to carry on the insurance business
effectively;
(d) a
serious failure by the person to maintain proper records;
(e) the
existence of a conflict of interests that may prevent the interests of the person’s
business or the interests of a policy holder or a potential policy holder being
properly protected;
(f) the
person committing serious and persistent breaches of –
(i) the Drug
Trafficking Offences (Jersey) Law 1988, the Proceeds of Crime
(Jersey) Law 1999, the Terrorism (Jersey)
Law 2002, the Proceeds
of Crime (Supervisory Bodies) (Jersey) Law 2008, the Money Laundering
(Jersey) Order 2008 or an Order made under the European Communities
Legislation (Implementation) (Jersey) Law 1996 and relating to the
freezing of funds,
(ii) any
other enactment of Jersey relating to money laundering or the financing of
terrorism,
(iii) any
code of practice made under an enactment referred to in sub-paragraph (i)
or (ii) or adopted by or under such an enactment,
(iv) the
Law or any code of practice made under the Law or adopted by or under the Law,
or
(v) an enactment made under
the Law;
(g) the
death or incapacity or prolonged absence of a shareholder controller or
director of the person to the detriment of the insurance business of the person.
Case 2
The person carrying on
the insurance business appears to have ceased to do so but has failed to wind
up, liquidate, close or transfer the business in an orderly manner or at all.
Case 3
The person carrying on
the insurance business has persistently failed to examine claims or complaints
by policy holders.
Case 4
The person carrying on
the insurance business is not authorized under the Law to carry on insurance
business of that class.
Case 5
There is a need to
appoint a manager to collect, protect or preserve the assets or records of the
insurance business or the property of policy holders, or both.
Case 6
There is a need to appoint a manager to avoid circumstances arising
that could provide grounds for a forced closure of the insurance business.
Case 7
There is a need to
appoint a manager to promote or implement a compensation scheme established
specifically for policy holders.
Case 8
The person carrying on the insurance business has failed to comply
with any of the following –
(a) a
condition under Article 7 of the Law;
(b) a
notice of objection under Article 23 of the Law;
(c) a
direction under Article 28 or Article 36 of the Law,
and there is therefore a
need to appoint a manager of the business to ensure its independent management.