Duties of directors and officers

(1) A director, officer and the principal representative of an insurer or insurance intermediary or financial holding company, in exercising the powers and discharging the duties of the person’s office, shall– (a) act honestly, in good faith and in the best of the or intermediary or financial holding company and the policy holders; and (b) exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. (2) Without limitation to the duties of the directors, officers or the principal representative, and in addition to the CAP. 250. requirements of the Companies Act, the directors, officers and the principal representative of an insurer or insurance intermediary or financial holding company shall69 (a) manage or supervise the management of the and affairs of the intermediary or financial holding company; (b) maintain a high standard of conduct in relation to the insurer, intermediary or financial (c) notify the Supervisor of any developments that pose material risks to the insurer or intermediary or financial holding company, including breaches of legal and prudential (d) establish appropriate risk policies and systems to promptly identify, measure, assess, report and control risks undertaken by the insurer or insurance intermediary, and establish adequate levels of premiums and reinsurance with respect to those risks; (e) designate an officer or committee of directors to monitor the policies and systems referred to in paragraph (d); (f) establish appropriate policies, standards and procedures for the investment of the assets of the insurer or insurance intermediary, in a manner expected of a prudent person considering the nature of the liabilities of the insurer or intermediary that avoid undue risk of loss and obtain a reasonable return and that are in compliance with the requirements of the applicable regulations; (g) designate an officer or committee of directors to monitor the policies, standards and procedures referred to in paragraph (f); 70 (h) adopt policies and procedures that provide for identification and monitoring of transactions between the insurer or intermediary and related parties; (i) establish policies and procedures concerning the fair treatment of policyholders and potential policyholders and establish procedures for dealing with complaints and claims effectively and fairly; (j) designate an officer or committee of directors to monitor the policies and procedures referred to in paragraph (i); (k) perform any other duties and responsibilities that the Supervisor may prescribe from time to time; and (l) exercise independent and informed judgment in the performance of their duties. (3) A director, officer and the principal representative of an insurer or insurance intermediary or financial holding company shall ensure that a copy of the policies, systems, standards and procedures referred to in sub-section (2) is filed with the Supervisor, who may require such changes as appropriate.