71.
| (1) In the winding up of an insurer, the value of the assets and the liabilities of the insurer in respect of long term insurance business shall be ascertained by an independent actuary appointed by the Board, separately from the value of any other assets and liabilities of the insurer, and the first-mentioned assets shall not be applied for the discharge of any liabilities other than those in respect of long term insurance business, in so far as the first-mentioned assets exceed the liabilities in respect of long term insurance business. |
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| (2) Where in the winding up of any insurer carrying on long term insurance business, it is Sound that when the assets and liabilities of the insurer are ascertained there is a surplus of assets over liabilities (hereinafter referred to as a "prima facie surplus") and that any pan of the surplus had, at any time during the ten years preceding the commencement of the winding up, been allocated to long term insurance policy holders, the following provisions shall have effects :"
| | (a) there shall be added to the liabilities of the insurer in respect of the long term insurance business, an amount which bears to the prima facie surplus the same proportion, as the aggregate amount of surplus so allocated to policy holders with profit policies during the aforesaid ten years bears, to the total surplus arising from the long term insurance business in those ten years : and | | |
| | (b) the assets of the insurer shall be deemed to exceed its liabilities only in so far as they are in excess after such addition, is made : | | |
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Sri Lanka Consolidated Acts