Establishment of statutory funds

(1) Every company licensed under this Act to carry on any class of insurance business in Belize shall establish and maintain a Statutory Fund in respect of all such classes of business. (2) The statutory fund shall be established– (a) at the date on which the company commences the carrying on of any class of insurance business referred to in sub-section (1); or (b) not later than three months commencement of this Act, whichever is the later date. (3) The fund referred to in sub-section (1) shall be established and maintained– (a) in the manner set out in sub-sections (4), (5) and (6); or (b) under an appropriate name in respect of each class of insurance business referred to in sub- 62 (4) Every company carrying on long-term insurance business in Belize shall place in trust in Belize assets equal to its liabilities and contingency reserves, less the amount deposited on account pursuant to section 24 with respect to its policyholders in Belize as established by the revenue account and balance sheet of the company as at the end of its last financial year. (5) Every company carrying on motor vehicle insurance business in Belize shall place in trust in Belize assets equal to its liabilities and reserves, less the amount deposited on account pursuant to section 24 with respect to its policyholders in Belize as established by the revenue account and balance sheet of the company as at the end of its last financial year. (6) Assets required to be placed in trust pursuant to sub- sections (4) and (5) shall be so placed not more than three months after the end of the financial year to which the balance sheet or the revenue account, as the case may be, of the company relates. (7) A statutory fund of all classes– (a) shall be as absolutely the security of the policy holders of that class as though it belonged to a company carrying on no other business than insurance business of that class; (b) shall not be liable for any contracts of the company for which it would not have been liable had the business of the company been only that of insurance of that class; and (c) shall not be applied, directly or indirectly for any purpose other than those of the class of insurance business to which the fund is applicable. 63 (8) No insurance company carrying on insurance business of any class and no company of which any such insurance company is a subsidiary, shall declare a dividend at any time when the value of the assets representing each fund established and maintained by the company as determined in such manner as may be prescribed, is less than the amount of the liabilities attributed to such business. (9) A company carrying on more than one class of insurance business in respect of which it is required to establish and maintain a statutory fund shall keep such books of accounts and other records as are necessary for the purpose of identifying– (a) the assets representing each statutory fund; and (b) the liabilities attributable to each class of