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General
Information
The
Insurance Supervision and Control in Egypt
Act
No. 10 of 1981 As Amended by Act No. 91 of 1995
Chapter Eleven
Transfer of Policies, Work
Suspension, Withdrawal of Authorisation and Erasure of Registration
Section 1
Transfer of Policies
Article
60 - Where a company
proposes to transfer to another company its policies together with all its
rights and obligations for all or a part of its transactions in A.R.E.,
shall apply to the Authority under the provisions specified in the
executive regulation.
The
application shall be published in Al waka' a Al Misryah and in at least
two local dailies according to the provisions specified in the executive
regulation.
This
application shall include a call to the policyholders and others who may
be concerned to notify the Authority of their remarks on the transfer in a
date not exceeding three months as from publication.
Transfer
of the company's policies with all its obligations shall be made on the
ground of the decision of the board of the Authority if it is demonstrated
that the transfer does not harm the interests of the policyholders,
effected in Egypt the beneficiaries and creditors.
This
decision shall be published in Al wak'a Al Misryah and used as a pretext
against the insureds and beneficiaries of the policies issued by the
company in A.R.E. and the company's creditors.
In
such a case the company's funds in ARE shall be transferred to the
transferee subject to the provisions of the transfer of property and the
funds transferred. The transferred funds shall be exempted from stamp
duties, registration and archive fees imposed under laws on the transfer
of property and funds
Section 2
Work Suspension
Article
61 - If a company registered under this Act resolves to
suspend its transactions in
one or more classes of insurance and seeks to free all or some of its
funds, it shall submit to the Authority an application accompanied by the
following:
1
- An evidence that it has completely and finally met its liabilities for
all the valid policies of the
class or classes it resolved, to suspend its
transactions or that it has transferred its policies
to another company as specified in the previous
article
2
- An evidence that it has published three times advertisement in at least
two local dailies at
intervals of 15 days under the provisions
of the executive regulation, intending to apply a
petition to the Authority three months
later from the date of the last advertisement to free
all or part of its funds in A.R.E. That
advertisement contains a call to the policyholder and
others who may be concerned to submit
their objections to the Authority in a date not
later than the date of submitting the
mentioned application.
The
Authority shall accept the application if it received no objections within
the period set in this clause. But if an objection was submitted within
this period, the application shall only be decided on after an agreement
or a final judgment on the objection.
However
the chairman of the Authority may permit release of the company's funds
providing the allocation of an amount equal to its commitments towards
objector, including the expenditures needed to keep an asset of the
company's.
Section3
Erasure of Registration and Withdrawal of
Authorisation
Article
62 - Erasure of registration and withdrawal of
authorisation for carrying on the
activity wholly or in part are as follows:
1
- If it appears that authorisation and registration have not been obtained
in a legal way.
2 - If the company persists to contravene the provisions of this Act or
its executive decisions.
3 - If it is proved to the Authority that the company is unable to meet
its liabilities.
4 - If it is proved to the Authority that the company always neglects
settling the claims or
frequently disputes sound claims.
5 - If the paid up capital becomes less than the minimum amount fixed in
article 27 of this Act
and the company does not complete it although it
has been asked to do so.
6 - If the company does not keep in Egypt the funds that should be
allocated as specified in
article 38 of this Act or if it does not complete
them within a year as from the date of asking
it to do so.
7 - If the company refrains to submit its books and documents for the
check or examination
carried out by the Authority or the auditors or
refused to submit the statements or data
which should be submitted according to the Act,
although it was asked in writing to do so
more than once for three months.
8 - If a decision has been issued approving the transfer of the company's
policies and related
obligations to another company of all the
transactions carried on in Egypt according to
article 60 of this Act.
9 - If the company suspends to carry on its activity in Egypt and released
its funds according to
article 61 of this Act.
10 - If a court sentence passed proclaiming the company's bankruptcy.
11 - If the company fails to comply with any of the prerequisites of the
authorisation to carry
on its activity and does not correct
the offence committed within the period fixed by the
executive regulation of this
Act.
A
decision of erasure and withdrawal of authorisation of carrying on the
activity shall not be issued unless the company has been notified by a
registered letter with a delivery receipt to present its defense within a
month in writing as from the date of notification. Erasure and withdrawal
of authorisation to carry on all or part of the business shall be effected
by a decision of the board of the Authority sanctioned by the competent
minister and published in Al waka'a Al Misryah.
Erasure
and withdrawal of authorisation of carrying on part of the business shall
be applied only to the transactions specified in the issued decision
therein.
In
all cases the company to which the decision of erasure and withdrawal of
authorisation of carrying on the whole business may not dispose of its
funds and guarantees before carrying out the requirements specified in
article 61 of this Act. In consequence of the decision of erasure and
withdrawal of authorisation the company shall suspend carrying on the
activity in the classes of insurance specified in the decision.
The
chairman of the Authority may authorise the company to run off the
existing transactions during erasure under the conditions made by him, as
well as he may order to liquidate the company.
Liquidation
shall take place according to the rules set up by the board of the
Authority to ensure the fulfillment of the company's obligations under the
supervision committee consisting of three members nominated by the
chairman of the board.
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