Grounds for cancellation or suspension of licence

(1) Subject to sub-section (2), the Supervisor may notify in writing an insurance company licensed under this Act that he proposes to cancel or suspend its licence, giving his reasons for so doing (and notifying the company of its right under section 174, to request the Supervisor to refer his proposal for review by the Minister) if at any time– (a) the Supervisor is satisfied that– (i) such licensing was procured as a result of any misleading or representation or in consequence of any incorrect information (whether or not done wilfully); (ii) the company is insolvent in the terms of section 50 or having regard to its financial record and any other matter the company is likely to become so insolvent; (iii) the company’s insurance business or any class thereof is not being conducted in accordance with sound insurance principles and practice; (iv) in the case of a company which carries on, or proposes to carry on, some other form of business in addition to insurance business, the carrying on of both the insurance business and that other business is or is likely to be contrary to policyholders’ or the public’s policyholders’ or the public’s interest; 56 (v) any of its reinsurance arrangements are not satisfactory; (vi) it has been guilty, without reasonable cause, of delay in the payment or settlement of any claim payable under any policy issued by it; or (vii) it has contravened this Act or any regulations made thereunder or any condition, direction or requirement imposed under this Act by the Minister or by the Supervisor, or has been an accessory or party to the contravention thereof by any other person; (b) a judgment is obtained against the company in any court in Belize which remains unsatisfied for twenty-one days, and no appeal from such a judgment is brought or taken within twenty- one days of the judgment, or if it is so brought is abandoned or dismissed. (2) Where an insurance company remains under any liability in respect of local policies belonging to any class of insurance business, the Supervisor shall not cancel the company’s licence in respect of that class unless he is satisfied that adequate provision has been or will be made for that liability and that adequate arrangements will exist for payment in Belize of premiums and claims on those policies. (3) No new business shall be written by an insurance company whose licence has been suspended or cancelled by the Supervisor and pending the hearing of any appeal to the Minister which may be made under section 174.