Supervisor’s discretion to prohibit new policies

(1) Where any intervention takes place under section 53, or after other appropriate inquiry, and the Supervisor is satisfied that it is in the interest of the policy holders or prospective policyholders to do so, the Supervisor may by notice in writing prohibit any such licensed insurance company from writing new policies in any class of insurance business in respect of which such company is licensed. (2) The Supervisor shall in any notification under sub- section (1), state the reasons for his decision and inform the insurance company of its right under section 174, to request the Supervisor to refer his decision for review by the Minister.