48.
| (1) Every insurer shall, in respect of all long term insurance business transacted by the insurer, cause an investigation to be made by an actuary at the end of each financial year into the financial condition of such long term insurance business, including a valuation of its assets and liabilities in respect of that business, and shall cause an abstract to be made in accordance with rules made in that behalf by the Board within such period after the close of the financial year as the Board may determine. The actuary shall certify whether the reserves of the insurer are adequate to meet all liabilities current and contingent of its policy holders and determine the surplus, and shall recommend the quantum of bonus that may be paid to policy holders. The actuary shall also recommend the surplus that is available for transfer to the shareholders of the insurer. |
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| (2) The provisions of .subsection (1) regarding the making of an abstract shall apply whenever at any other time, an investigation into the financial condition of the insurer is made with a view to the distribution of surplus or an investigation is made the results of which, are made public. |
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| (3) A copy of an abstract made under subsection (1) shall be submitted to the Board, and the Board shall have power to call for any additional information and documents relating to the actuarial valuation. |
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| (4) there shall be appended to every abstract required by subsection (1) or subsection (2), a certificate signed by the director or principal officer of the insurer, the full and accurate particulars of every policy under which there is a liability either actual or contingent, have been furnished to the actuary for the purposes of the investigation. |
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| (5) There shall be appended to every abstract required by subsection (1) or subsection (2) a statement of the long term insurance business subsisting at the date to which the accounts of the insurer are made up for the purposes of such attract. |
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| (6) Where an investigation into the financial condition of an insurer is made at a date other than the last date of the year of account, the accounts for the period elapsing after the end of the preceding year of account, and the balance sheet as at the date at which investigation is made, shall be prepared and audited in the manner provided for in this Act. |
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Sri Lanka Consolidated Acts