Interpretation

(1) In this Act unless the context otherwise provide“accounts” means the balance sheet, profit and loss account, cash flow statement and revenue account or accounts of a company prepared in accordance with international accounting standards; “actuary” means a person who is– (a) a Fellow by examination of the Institute of Actuaries in England, of the faculty of Actuaries in Scotland, of the Canadian Institute of Actuaries, or of the Society of Actuaries of the United States of America; or (b) is a Fellow of a professional body of actuaries which is internationally recognised; “admissible assets” means the assets of an insurer which are acceptable for determining an insurer’s solvency and shall include those identified in Schedule III, but shall not include receivables outstanding or unpaid for a period of more than twelve months; Schedule III. 12 “agent” means any individual, firm or body corporate appointed by an insurer or up to a maximum of three insurers and not being an employee of such insurer(s), to solicit applications for insurance or negotiate insurance on their behalf, and if authorised to do so by the insurer(s), to effectuate and countersign insurance contracts; “annuities on human life” means contracts whereby, in return for one or more premiums paid to the insurer, the insurer pays a sum or a series of sums to the insured in the future but does not include superannuation allowances and annuities payable out of any fund applicable solely to the relief and maintenance of persons engaged or who have been engaged in any particular profession, trade or employment, or of the dependants of such persons; Schedule III. “assets” means anything owned by a business, institution or individual, having commercial or exchange value and which is acceptable to the Supervisor, and may include land, buildings, cash in hand and on deposit and securities and investments identified in Schedule III, but does not include goodwill; “association of underwriters” means an association of individual underwriters, whereby every underwriting member of a syndicate becomes liable for a separate part of the sum secured by each policy subscribed to by that syndicate, limited or proportionate to the whole sum thereby secured; “auditor” means a person who is a member in good standing of– (a) the Institute of Chartered Accountants of Belize and who holds a current practicing certificate from that Institute or Organization as the case may be; or (b) such other similar professional accounting association as may be prescribed from time to time and who holds a current practicing certificate from that association; 13 “aviation insurance business” means the business of effecting and carrying out contracts of insurance– (a) upon aircraft or upon the machinery, tackle, furniture or equipment of aircraft; (b) upon the freight of, or any other interest in, or relating to, aircraft; (c) against loss, damage or liability arising out of, or in connection with, the use of aircraft; (d) upon goods, merchandise or property of any description whatever on board aircraft; or (e) against damage arising out of or in connection with the use of aircraft, including third party risks; “bond investment business” means, subject to section 3, the business of issuing bonds or endowment certificates by which the company, in return for subscriptions payable at periodical intervals of less than six months, contracts to pay the bond holder a sum at some future date, not being life assurance business, industrial assurance business or sinking fund business; “carrying on insurance business” in Belize includes– (a) the receipt of proposals for or issuing of policies of insurance in Belize or the collection or receipt in Belize of renewal premiums on policies issued in Belize by an insurer or through an agent or as agent but does not include the collection or receipt in Belize of renewal premiums under a policy issued outside Belize to a person resident outside Belize at the date of issue of the policy and who is temporarily resident in Belize or 14 the making of payments due under any such (b) the use in Belize of any business description or title in any language of the words “insurance”, “assurance”, “guarantee”, “underwriting”, “reinsurance”, “surety”, “casualty”, or any of their derivatives, or any expression which suggests, connotes or is intended to connote insurance business; (c) the making in Belize of any representation in any document or in any other manner offering, directly or indirectly, to arrange contracts of insurance; and (d) opening or maintaining a place of business or an or appointing or using a representative in Belize, whether or not such business is being arranged in or from within “chief executive officer” means a person employed by an insurer, who, subject to any directions of the directors of the company, is responsible for the conduct of the insurance business of the insurer; “claims outstanding” means the amount set aside by a company at the end of its financial year for the purpose of meeting unsettled claims (including claims in respect of which the amounts have not been determined and claims arising out of incidents occurring which have not been notified to the company), under contracts of insurance in respect of incidents occurring before the end of the year and for the purpose of meeting expenses likely to be incurred in connection with the settlement of such claims; but does not include the reduction of amounts recoverable from other insurers or other persons; 15 “class of insurance business” means any class of insurance business specified in Schedule I to this Act; Schedule I. “collector” includes every person, however remunerated, who calls on policyholders for the purpose of receiving premiums payable under industrial life insurance policies or any other CAP. 250. “company” includes a company incorporated or licensed under the Companies Act, a corporate body incorporated outside Belize, and any statutory corporation, which carries on or proposes to carry on any insurance business in Belize; “contingent and prospective liabilities” means an insurer’s financial obligations to an insured party in relation to past and future events which though possible may or may not occur; “controlling interest” has the meaning given in section 2B; “Court” means the Supreme Court of Belize; “divestment directive” means a directive issued under section 7F; “employers’ liability insurance business” means the issue of, or the undertaking of liability under, policies insuring employers against liability to pay compensation or damages to workmen in their employment due to negligence of the employer, but does not include any business carried on as incidental only to marine, aviation and transit insurance; “financial group” means a related group, the members of which are incorporated in Belize and are limited in their activities to– (a) the business of insurance; (b) the business of banking; (c) financial business; 16 (d) international banking; (e) trading in securities; and (f) subject to the approval of the Supervisor, providing necessary services to support the activities of the members of the related group, and includes a financial holding company; “financial holding company” means a local company that is the holding body corporate of an insurer or insurance intermediary required by section 7J; “financial year” means each period of twelve months at the end of which the balance of the accounts of the company is struck, or, if no such balance is struck, means the calendar year; “fit and proper person” has the meaning given in section 2A; Schedule I. “general insurance business” means insurance business of any class or classes specified in Schedule I not being long-term “gross premiums” means premiums after deduction of refunds and rebates of premiums but before deduction of premiums for reinsurance ceded and commission payable by the company; “holding body corporate” means a body corporate that has a controlling interest in another body corporate; “industrial life insurance business” means the business of effecting insurance upon human life, premiums in respect of which are payable at intervals of less than two months in each case and are contracted to be received, or are usually received, by means of collectors sent by the insurance company to each policy holder, or to his residence or place of work; 17 “industrial life insurance policy” means a policy in respect of which the premiums are contracted to be paid at intervals of less than two months and are contracted to be received or are usually received by means of collectors, and includes– (a) a policy that has at any time been such a policy; and (b) a paid-up policy (not being a policy expressed to be a non-industrial policy) granted in lieu of an industrial policy or of a policy referred to in paragraph (a); “insurance adjuster” means a person or an entity possessing such skills, experience or qualifications as may be prescribed by Regulations and who represents an insurer in investigations and dealings with respect to the settlement or adjusting of insurance claims but shall not include a salaried employee of an insurer while acting on behalf of such insurer in the settlement or adjusting of an insurance claim; “insurance broker” means a firm or body corporate registered in accordance with Part IV which, on behalf of existing or prospective policyholders and not being itself an insurer or agent of an insurer, for compensation as an independent contractor, in any manner directly or through representatives or other means, negotiates, solicits or procures insurance contracts or the renewal or continuance of contracts of insurance or of reinsurance with four or more insurers or for placement with insurers or reinsurers and shall include bodies and partnerships or individuals who represent four or more insurance principals; (a) means the assumption of the obligations of an insurer in any class of insurance business; and (b) includes reinsurance business; 18 “insurance company” or “insurer” means a body corporate which is licensed to carry on insurance business in Belize, pursuant to this Act; “insurance intermediary” means any insurance broker, agent or sub-agent and includes a collector; “insurance liabilities” means in relation to an insurance company, any debt due from or other liabilities of the company under any contract of insurance to which it is a party; “insurance sub-agent” means any person appointed by a registered corporate agent with the authority of the insurance company that is the agent’s principal, and not being an employee of the agent, to solicit applications for insurance or to negotiate insurance through that agent; “insurer” means a company carrying on insurance business and, except where otherwise stated, includes all the members of an association of underwriters which is licensed as an insurer; “liability insurance business” means the business of effecting and carrying out contracts of insurance, against risks of the persons insured incurring liabilities to third parties, not being risks arising out of, or in connection with the use of motor vehicles or out of, or in connection with the use of vessels or aircraft or risks incidental to the construction, repair or docking of vessels or aircraft. Where the principal object of a contract of insurance is to insure a person against risks of such kinds that the business of effecting and carrying out contracts of insurance against such risks constitutes property insurance business, a company shall not for the purpose of this Act be treated as carrying on liability insurance business by reason only of the incidental inclusion in such a contract of a provision whereby the company assumes liability against the risk of the person insured incurring liabilities to third parties. “licensed insurance agent” means an insurance agent licensed in accordance with Part IV; 19 “licensed insurance broker” means an insurance broker licensed in accordance with Part IV; “licensed insurer” means an insurer licensed in accordance with Part II or Part III as the case may be; “life insurance business” means the issue of, or the undertaking of liability under policies of insurance upon human life, or the granting of annuities upon human life; “life insurance fund” means the fund to which the receipts of an insurer in respect of his life insurance business are carried into, and from which payments in respect of that business are made; “life insurance policy” means an ordinary life insurance policy, an industrial life insurance policy or a sinking fund policy; “life insurer” means a licensed insurer carrying on life insurance “life underwriter” include a life insurance agent; “local company” means a company incorporated in Belize under the Companies Act; CAP. 250. “local policy” means an insurance policy issued in Belize and includes an ordinary life insurance policy issued outside Belize and subsequently made payable in Belize at the request of the policy holder to which the policy holder has agreed in writing, but does not include an ordinary life insurance policy made payable outside Belize at the request of the policy holder to which the policy holder has agreed in writing; “long term insurance business” means insurance business of all or any of the following classes, namely– (a) ordinary life insurance business; (b) industrial life insurance business; 20 (c) bond investment business; (d) in relation to any insurer, insurance business carried on by the insurer as incidental only to any of the classes of business referred to in paragraphs (a), (b), and (c); “loss assessor” means a person with specialist knowledge appointed by the insured to assess his claim and negotiate a settlement with the insurer or insurer’s representative; “marine, aviation and transit business” means the business of effecting and carrying out, otherwise than incidentally to some other class of insurance business, contracts of insurance– (a) upon vessels or aircraft, or upon the machinery, tackle, furniture, or the equipment of vessels or aircraft; or (b) upon goods, merchandise or property of any description whatever on board vessels or aircraft; or (c) upon the freight of, or any other interest in or relating to, vessels or aircraft; or (d) against damage arising out of or in connection with the use of vessels or aircraft, including third party risks; or (e) against risks incidental to the construction, repair or docking of vessels, including third party risks; or (f) against transit risks (whether the transit is by sea, inland water, land or air, or partly one and partly another) including risks incidental to the transit insured from the commencement of the transit to the ultimate destination covered 21 by the insurance, but not including risks the insurance of which is motor vehicle insurance business; or (g) against any other risks the insurance of which is customarily undertaken in conjunction with or as incidental to any business referred to in the foregoing paragraphs of this definition; “marine insurance business” means the business of effecting and carrying out contracts of insurance– (a) upon vessels, or upon the machinery, tackle, furniture or equipment of vessels; (b) upon the freight of, or any other interest in, or relating to, vessels; (c) against loss, damage or liability arising out of, or in connection with the use of vessels, including third party risks; (d) against risks incidental to the construction, repair or docking of vessels, including third- party risks; (e) upon goods, merchandise or property of any description whatever on board vessels; “Minister” means the Minister responsible for insurance; “motor vehicle insurance business” means the business of effecting contracts of insurance against loss of, or damage to or arising out of or in connection with the use of, motor vehicles, including third party risks but exclusive of transit risks and a company shall not be treated as carrying on motor vehicle insurance business by reason only of the fact that goods, merchandise or property upon which a contract of insurance is 22 effected by it (being goods, merchandise or property on board of a vessel or an aircraft) consist of, or include motor vehicles; “mutual company” means a company whose capital is owned by the policy holders of the company; “officer” includes the chief executive officer, the manager, secretary, treasurer, or actuary of that body or any other person designated as an officer of a company or association by its articles of association, its by-laws or any rules regulating its operation; “ordinary life insurance” means insurance business whereby an insurer assumes in return for the payment of a sum or sums of money a contingent obligation dependent upon human life but does not include industrial life insurance, personal accident, sinking fund or cancellable group life insurance; “overseas company” or “foreign company” means a company incorporated outside Belize; “pecuniary loss insurance business” means the business of effecting and carrying out contracts of insurance against any of the following risks– (a) loss to the person insured arising from the insolvency of their debtors or from the failure (otherwise than through insolvency) of their debtors to pay their debts when due; (b) loss to the person insured arising from their having to perform contracts of guarantee entered into by them; (c) loss to the person insured attributable to interruptions of the carrying on of business carried on by them or to reductions of the scope of business so carried on; 23 (d) loss to the persons insured attributable to the incurring of unforeseen expenses; or (e) neither falling within any of the foregoing sub- paragraphs nor being a kind such that the carrying on of the business of effecting and carrying out contracts of insurance against them constitutes the carrying on of insurance business of some other class; (Where the principal object of the contract of insurance is to insure a person against risks of such kinds that the business of effecting and carrying out contracts of insurance against such risks constitute marine, aviation and transport insurance business, motor vehicle insurance business or property insurance business, a company shall not for the purpose of this Act be treated as carrying on pecuniary loss insurance business by reason only of the incidental inclusion in such a contract of a provision whereby the company assumes liability against the risks specified in paragraphs (c) and (d)). “personal accident insurance business” means the business of effecting and carrying out contracts of insurance which pay out capital sums contingent upon the life insured’s death or permanent disablement, including loss of limb, sight, etc., and weekly benefits for temporary disablement for a defined period from working following accidental bodily injury but not death or disablement following illness or disease; (Where the principal object of a contract of insurance is to insure a person against risks of such kinds that the business of effecting and carrying out contracts of insurance against such risks constitute marine, aviation and transport insurance business, motor vehicle insurance business or property insurance business, a company shall not for the purpose of this Act be treated as carrying on personal accident insurance business by reason only of the incidental inclusion in such a contract of a provision whereby the company assumes liability against the happening of personal accidents, whether fatal or not). 24 “personal accident and sickness insurance business” means personal accident insurance business which in addition pays a benefit for temporary disablement up to a period of fifty-two weeks following the insured’s illness or disease; (a) in relation to life insurance business or industrial life insurance business, includes an instrument evidencing a contract to pay an annuity upon human life; and (b) in relation to accident and sickness insurance business, motor vehicle insurance business, marine, aviation and transit insurance business or employers’ liability insurance business, includes any instrument under which there is for the time being an existing liability already accrued, or under which any liability may accrue; and (c) in relation to bond investment business, includes any bond, certificate, receipt or other instrument evidencing a contract with the “policyholder” means the person who for the time being has the legal title to the policy and includes any person to whom a policy is for the time being assigned; “principal office” means the office notified to the Supervisor in accordance with section 39; “principal representative” means the representative notified to the Supervisor in accordance with section 39; “property insurance business” means the issue of or the undertaking of liability under policies of insurance against loss or damage to real or personal property of every kind and 25 interests therein, from any hazard or cause, or against loss consequential upon such loss or damage, not being risks the insurance of which is motor vehicle insurance business or marine, aviation and transit insurance business; “rebate” means any gift of money, share of commission, consideration or thing of value given or offered by an insurance intermediary to induce or persuade another party to purchase an insurance policy or to enter into an insurance contract with an insurer or through that intermediary; “reinsurance ceded” includes reinsurance retroceded; “reinsurance recoveries” includes recoveries in connection with reinsurance ceded or retroceded; “related group” means– (a) two or more bodies corporate that are controlled by the same person; (b) the direct and indirect subsidiaries of the bodies corporate referred to in paragraph (a); and (c) the controlling person referred to in paragraph (a); “sinking fund policy” means a policy whereby one party to the contract assumes the obligation to pay, after the expiration of a certain period or during a specified period, a certain sum or certain sums of money to a particular person in return for the payment from time to time of certain sums of money by the other party to the contract; “statutory fund” in relation to a company, means a statutory fund maintained by the company under section 26; 26 “sub-agent” means any person appointed by a licensed corporate agent, with the authority of the insurance company that is the agent’s principal and not being an employee of the agent, to solicit applications for insurance or to negotiate insurance through that agent; “subsidiary” means a company in which fifty per cent or more of its shares are held directly or indirectly by another company, or whose board of directors is controlled directly or indirectly by another company; “substantial investment” has the meaning given in section 2C; “Supervisor” means the Supervisor of Insurance appointed under section 4; “transit insurance business” means the business of effecting and carrying out contracts of insurance against loss of or damage to merchandise, baggage and all other goods in transit, (whether the transit is by sea, inland water, land or air or partly one and partly another) including risks incidental to the transit insured from the commencement of the transit to the ultimate destination covered by the insurance, but not including risks the insurance of which is motor vehicle insurance business; “Unclaimed Monies Fund” means the fund referred to in section 132; “unearned premiums” means the amount set aside by a company at the end of its financial year out of premiums in respect of risks to be borne by the company after the end of its financial year under contracts of insurance entered into before the end of the year; “unexpired risks” means the amount set aside by a company at the end of its financial year, in addition to unearned premiums, in respect of risks to be borne by the company after the end of its financial year under contracts entered into before the end of that year; 27 “without lawful excuse” means the lack of a legally justifiable reason for a person’s act or omission. CAP. 300. CAP. 314. CAP. 310. CAP. 317. (2) Where, in return for subscriptions payable at periodic intervals of less than six months, a person or body of persons, whether incorporated or not (not being, or being deemed to be registered under the Trade Unions Act, the Credit Unions Act, the Building Societies Act, or the Friendly Societies Act, undertakes, by prospectus or otherwise, to pay to the subscriber at a future date the amount of the subscriptions with interest thereon (with or without a right on the part of the subscriber to the return of his subscriptions in the meantime), that business shall for the purposes of this Act be deemed to be a bond investment business, and the card, book or other document in which receipts of subscriptions are entered shall be treated as the instrument evidencing the contract, and the subscriber shall be treated as the owner of the policy.