17. The following new sections are hereby inserted immediately after section 34 of the principal enactment and shall have effect as sections 34A and 34B, of the principal enactment :
| 34A. Every insurer carrying on the business of life assurance shall-
| | (a) employ on its staff at least one person with over ten years experience in life assurance at managerial level; | | |
| | (b) employ, or retain on a permanent basis, an actuary to investigate the financial condition of such business. | | |
|
|
| 34B.
| | (1) Subject to subsection (4), every insurer carrying on life assurance business shall invest fifty per centum of his reserve funds including capital in Government securities and the balance in approved investments. | | |
| | (2) Subject to subsection (4) every insurer carrying on insurance business other than life assurance business shall invest thirty per centum of his reserve funds including capital in government securities and the balance in approved investments. | | |
| | (3) For the purpose of this section an approved investment" means-
| | | (b) deposits with Commercial Banks ; |
| (c) deposits and investments with the State Mortgage Bank established under the State Mortgage and Investment Bank Act, No. 13 of 1975 or deposits and investments in the Housing Development Finance Corporation of Sri Lanka Limited, established under the National Housing Act (Chapter 401) ; |
| (d) investments in quoted public companies. |
|
| | (4) No insurer shall invest-
| | | (a) more than five pet centum of its reserve funds in any approved investment referred to in paragraph (a) or (d) of subsection (3) except with the permission of the Controller; or |
| (b) more than five per centum of its reserve funds as a deposit in a commercial bank being a bank which has shares in. or is a holding or subsidiary of, the insurer. '. |
|
|
|
|
Sri Lanka Consolidated Acts