Sri Lanka Consolidated Acts Sri Lanka Consolidated ActsPower of the Board to increase deposit
| 53. Where upon examination of the returns and reinsurance treaties, contracts and arrangements furnished by any insurer, it appears to the Board that the deposit made by the insurer under section 21 or that the amount of the assets in respect of insurance business of the insurer is inordinately low in relation to the volume of insurance business transacted by the insurer, the Board may. after giving the insurer an opportunity of being heard, order the insurer to make an additional deposit under the provisions of subsections (2). (3), (4) and (5) of section 21 and the provisions of section 22 and section 23 shall apply to such additional deposit : Provided however, where the insurer establishes to the satisfaction of the Board that the assets of such insurer in Sri Lanka are adequate to meet the outstanding claims and unexpired risks in respect of the insurance business transacted in Sri Lanka by such insurer, the amount of such additional deposit, together with any deposit made under section 21. shall not exceed the solvency margin as determined by the Board under section 26. |