Premium rates

(1) A company shall not issue any policy unless the rate of premium chargeable under the policy is a rate which has been approved by an actuary as suitable for the class of policy to which that policy belongs. (2) The Supervisor may at any time require the company to obtain and to furnish him with a report by an actuary as to the suitability of the rate of premium chargeable under any class of policy issued by the company and, if the actuary considers that the rate is not suitable, a report as to the rate of premium which the actuary approves as suitable in respect of that class of policy. (3) Where any requirement is made under sub-section (2) in respect of the rate of premium chargeable under any class of policy, the company shall not issue any policy of that class until the company has, in accordance with the requirement, obtained the approval of the actuary for the rate of premium. (4) An actuary in approving a rate of premium in respect of any class of policy under this section shall have regard to– (a) the maximum rate of commission proposed to be paid to any person in respect of that class of policy; and (b) the maximum rate of reduction of premium to be allowed to any person in respect of that class of policy.