Effect of cancellation

(1) Notwithstanding section 18, upon the cancellation of an insurance company’s licence– (a) it shall be lawful for it to continue to carry on business relating to policies issued before the date on which it is notified of such cancellation (hereinafter in this section referred to as “the date of notification”) and it shall continue to carry on such business unless the Supervisor is satisfied that it has made suitable arrangements for its obligations under those policies to be met; and (b) it shall not be lawful for it, after the date of notification, to issue any new policy or to enter into any new contract in relation to which licensing under this Act is required. (2) Nothing in sub-section (1)(a) shall be taken as authorising the renewal of or an increase of the liability, after the date of notification, of any general insurance policy issued before that date, and where any such policy is renewed or increased after that date the company shall be regarded as having issued a new policy in contravention of sub-section (1)(b). (3) Where any person is in contravention of this section the Supervisor shall, after giving 14 days written notice, impose an administrative penalty of five thousand dollars in the first instance, but an appeal shall lie to the Court within thirty days of the imposition of such fine. (4) Where after the imposition of a penalty in accordance with sub-section (3) the violation continues for a month, a person shall be liable on summary conviction to punishment in accordance with section 183.