Sri Lanka Consolidated Acts Sri Lanka Consolidated ActsPower of Controller to increase deposit
| 44. Where upon examination of the returns and reinsurance treaties furnished by any registered insurer it appears to the Controller that the deposit made by the insurer under section 12 or that the amount of the assets in Ceylon in respect of insurance business of the insurer in Ceylon is inordinately low in relation to the volume of insurance business transacted by the insurer in Ceylon, the Controller may, after giving the insurer an opportunity of being heard, order the insurer to make an additional deposit and the provisions of subsections (2), (3), (4) and (5) of section 12 and the provisions of section 13 and section 14 shall apply to such additional deposit: Provided, however, that where the insurer establishes to the satisfaction of the Controller that the assets of such insurer in Ceylon are adequate, to meet the outstanding claims and unexpired risks in respect of the insurance business transacted in Ceylon by such insurer, the amount of such additional deposit, together with any deposit made under section 12, shall not exceed one-tenth of the premia paid in Ceylon in the financial year preceding the year in which such order is made in respect of the policies of insurance issued by such insurer. |