Solvency margins

(1) Subject to sub-section (7), every registered insurer shall ensure that the value of its assets exceeds the amount of its liabilities (“the margin of solvency”) by such amount as may be prescribed by or determined in accordance with regulations made for the purposes of this section. (2) If the solvency margin of a registered insurer falls below such amount as may be prescribed by or determined in accordance with regulations made for the purposes of this section, the registered insurer shall at the request of the Supervisor submit to him a short-term financial scheme within thirty days of the request, or such longer period as the Supervisor may permit, and shall if the Supervisor considers the scheme (or the scheme as previously modified) inadequate, propose in writing modifications to it. 28 (3) A scheme submitted under sub-section (2) may include proposals for– (a) the appointment of a special manager acceptable to the Supervisor; and (b) the discontinuance, either in whole or in part, of the registered insurer’s business. (4) A registered insurer shall adhere to any scheme accepted by the Supervisor. (5) If a registered insurer is unable or fails to submit a scheme which is acceptable to the Supervisor, the registered insurer shall be deemed to be unable to pay its debts.