38.
| (1) Every insurer who carries on long term insurance insurer business, whether solely or in addition to general insurance business, shall"-
| | (a) maintain a separate fund to be called the "Long Term Insurance Fund" and shall credit all money received in respect or the long term insurance business earned on by such insurer, to that Fund and | | |
| | (b) keep the assets in respect of the long term insurance business separate from the assets in respect of any-other class of insurance business. | | |
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| (2) The Long Term Insurance Fund maintained by an insurer under subjection (1). shall not be liable for any contracts of the insurer for which it would not have been liable had the business of the insurer been only that of long term insurance business, and shall not be applied directly or indirectly for any purposes other than these of the long term insurance business earned on by that insurer. |
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| (3) For the purpose of verifying whether an insurer complies with the provisions of subsection (1). the Board may"
| | (a) call upon such insurer to furnish from time to time a return in such form as may be prescribed ; | | |
| | (b) authorize an officer in writing to enter at all reasonable hours the place at which such insurer is carrying on long term insurance business and examine any books, registers or documents of such insurer relating to such business, and such insurer shall furnish such return or permit such officer to enter such place and make such examination. | | |
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| (4) Where, following an actuarial investigation into the financial affairs of an insurer transacting long term insurance business under subsection (1) of section 48. there is an established surplus in respect of participating policies which the actuary has recommended as being available for distribution, the insurer shall not transfer or otherwise apply assets representing any part of that surplus, unless the insurer has allocated for the payment of bonuses to holders of participating policies at least ninety per centum of that surplus. |
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Sri Lanka Consolidated Acts