18.
| (1) The Board may cancel or suspend the registration of an insurer, either wholly or in respect of a particular class or sub-class of insurance business, for any one or more of the following reasons or grounds, namely, that the insurer"
| | (a) has not commenced business within twelve months after being registered : | | |
| | (b) has ceased to carry on insurance business in respect of any class of business ; | | |
| | (c) proposes to make or has made any composition or arrangement with its creditors or has gone into liquidation or has been wound up or otherwise dissolved ; | | |
| | (d) is carrying on its business in a manner likely to be detrimental to the interests of its policy holders or to the development of the insurance industry or the national interest : | | |
| | (e) is unable to meet its obligations ; | | |
| | (f) has failed to maintain the solvency margin of such amount as is determined by the Board under section 26 ; | | |
| | (g) has contravened any provision of this Act or any regulation or rule made thereunder or any condition imposed or and direction given by the Board under this Act: | | |
| | (h) has furnished false, misleading or inaccurate information, or has concealed or failed to disclose material facts, in its application far registration ; | | |
| | (i) has ceased to be of good financial standing ; | | |
| | (j) has since the grant of the licence, been disqualified for the grant of licence : or | | |
| | (k) is found guilty of any malpractice or irregularity in the management of his affairs. | | |
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| (2) The Board may for any one or more reasons or grounds specified in subsection (1), and by notice sent in that behalf, suspend the registration granted to an insurer for a period not exceeding three weeks, without prejudice to such insurer's responsibility to meet its obligations under policies already issued, and the insurer shall thereafter be prohibited from issuing new insurance policies until the suspension is removed. |
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| (3) The notice referred to in subsection (2). shall specify the period of suspension and the date be for 2 which the insurer is required to show cause to the Board why such suspension should be removed. |
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| (4) On receipt of an insurer's response to the notice sent under subsection (2). the Board may
| | (a) where an insurer shows sufficient cause why the suspension should be removed, immediately remove the suspension; or | | |
| | "(b) where the Board is not satisfied with the response of the insurer, either extend the period of suspension already imposed, or cancel the registration as the case may be. | | |
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| (5) Where the Board decides under subsection (4) to cancel or suspend for a further period the registration of an insurer, it shall be its duty to forthwith inform the insurer of lift cancellation or suspension us the case may be and in the event of an extension of a suspension for a further period, the Board shall further inform the insurer "
| | (a) of the period for which the suspension is being extended ; | | |
| | (b) of the action that needs to be taken to rectify or remove the reason or ground which caused the imposition of the suspension ; and | | |
| | (c) the time within which the corrective measures referred to in paragraph (b) should be taken. | | |
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| (6) Where a registration is cancelled or suspended under subsection (4), it shall be the duty of the licence holder whose licence is being cancelled or suspended as the case may be, to forthwith surrender the licence to the Board- and the Board shall thereupon "
| | (a) in the case of a cancellation of a registration, cancel the licence ; or | | |
| | (b) in the case of a suspension of a registration for a specified period, make an endorsement to that effect on the face of the licence, and return the licence to the holder thereof. | | |
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| (7) Notwithstanding the provisions contained in subsections (1) and (2) of this section, the Board may in lieu of a cancellation or suspension on any one or more grounds referred to in subsection (1), of a licence issued to an insurer under this Act, and where, the nature of the act or omission referred to therein and which is committed by such insurer is not of such nature as to warrant a cancellation or suspension of the licence, direct the insurer to take such measures as may be determined by the Board, to"-
| | (a) prevent the continuance of such act or omission ; and | | |
| | (b) rectify and set a right any consequences resulting from such act or omission. | | |
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Sri Lanka Consolidated Acts