Nigerian Legislation

Preliminary and Commissions

(a)            a friendly society, that is an association of persons established with no share capital for the purpose of aiding its members or their dependents, where such association does not employ any person whose main occupation -

(i)             is the canvassing of other persons to become members of the association,

(ii)            is the collecting of contributions or subscriptions towards the funds of the association from its members; or

(b)            a pension fund or a provident fund; or

(c)            a company or any other body (whether corporate or unincorporated) or person whose business is established outside Nigeria, engaged solely in reinsurance transactions with an insurer authorised or pursuant to the provisions of this Decree to carry on any class of insurance business, but not otherwise howsoever.

(a)             life insurance business; and

(b)             general insurance business.

(2)             Life insurance shall be sub-divided into the following categories, that is -

(a)             individual life insurance business; and

(b)             group life insurance business.

(3)             General insurance business shall be sub-divided into the following categories, that is –

(a)             fire insurance business;

(b)             accident insurance business;

(d)             workmen's compensation insurance business;

(e)             goods-in-transit insurance by road, water, air or rail;

(f)             marine and aviation insurance business other than that specified in paragraph (e) of this subsection;

(g)            oil and gas insurance business;

(h)            contractors "all risks" and engineering risk insurance business;

(i)             credit Insurance, bond and suretyship;

(j)             railway rolling stock insurance business; and

(k)             miscellaneous insurance business;

(4)             For the purposes of this Decree -

(a)             any part of an insurance business may be treated as belonging to a particular class of insurance business; and

(b)            reinsurance of liabilities under an insurance policy shall be treated as insurance business of the class to which such policy would have belonged if it had been issued by the reinsurer.

(5)            Subject to the provisions of this Decree, an insurer may be authorised to transact any new category of miscellaneous insurance business if he shows evidence of adequate reinsurance arrangement in respect of that category of miscellaneous insurance business, possesses, relevant expertise in that category of insurance business; and requisite capital where necessary.

(6)            If the National Insurance Commission (in this Decree referred to as "the Commission") is satisfied that an insurer -

(a)             has conducted his business in accordance with sound insurance principles; and

(b)             has complied with the provisions of this Decree,

3.-  (1)            No person shall carry any class of insurance business in Nigeria except -

(a)            a company duly incorporated as a limited liability company under or pursuant to the Companies and Allied Matters Decree 1990; or

(b)            a co-operative insurance society registered under any enactment or law relating to co-operative societies; or

(c)            a mutual insurance company; or

(d)            a body duly established by or pursuant to an enactment to transact the business of insurance or reinsurance.

(2)            For the purposes of subsection (1)(c) of this section, any seven or more persons may, subscribing their names to a Memorandum of Association and otherwise comply with the requirements of this Decree as to registration, form a mutual insurance company the aim of which shall be to use any profit derived from their operations to reduce the cost of insurance undertaken by its members.

(3)            A person who has or has acquired shares, the nominal value of which, by itself or together with the aggregate nominal owned by that person or by that person and his associates amounts to more than 25 per centum of the total nominal value of all the issued shares of the insurer concerned shall serve on the Commission notice of the holding or acquisition.

(4)            In this section, "associate" includes the person's spouse, child, parents, step child, step parent, brother, sister, uncle, aunt, niece, nephew and cousin and where applicable their spouses.

4.-  (1)             Subject to the provisions of this Decree, no insurer shall commence or carry on insurance business in Nigeria unless the insurer is registered by the Commission under or pursuant to this Decree.

(2)            The Commission -

(a)            may in granting an approval under section 3 of this Decree impose such conditions as it may deem fit; and

(b)            shall not grant approval if it is satisfied that is not in the public interest or the interests of policy holders or persons who may become policy holders, for it to be given.

(3)            Where an insurer is not satisfied with the decision of the Commission under the foregoing provisions of this section, he may appeal to the Minister within 30 days of the refusal.

5.-   (1)             An application for registration as an insurer shall be made to the Commission in the prescribed form and be accompanied by a business plan and such other documents or information as the Commission may, from time to time, direct or require.

(2)            For the purposes of this Decree, life insurance business and general insurance business shall be subject to separate application and registration.

(a)            that the class or category of insurance business shall be conducted in accordance with sound insurance principles;

(b)            that the applicant being one of the referred to in section 3(1) of this Decree is duly established under the applicable law and has a paid up share capital as specified in section 10 of this Decree for the relevant class of insurance business;

(c)            that the relevant statutory deposit specified in section 10 of this Decree has been paid to the Central Bank of Nigeria (in this Decree referred to as "the Central Bank") and the applicant has submitted a certificate from the Central Bank to that effect;

(d)           that the arrangements relating to reinsurance treaties in respect of the class or category of insurance business to be transacted are adequate and valid;

(e)            that the proposal forms, terms and conditions of policies are in order and acceptable;

(f)             that there is at least -

(i)            a competent and professionally qualified person, or

(ii)            a person who holds a recorganised degree in insurance or actuarial science with at least 5 years post qualification experience in middle management cadre of an establishment insurance company or a similar qualification with at least 10 years post-qualification experience in the middle management cadre of an insurance company, who is registered as an insurance practitioner by the Institute and has satisfied the requirements of the Institute, to head each of the departments of the insurance business dealing in oil and gas, credit insurance bonds and suretyship, contracts' all risk, engineering risk insurance, marine and aviation insurance and reinsurance;

(g)            that the applicant does not have in its employment a person disqualified from being appointed by an insurer under section 15 of this Decree;

(h)            that the directors and shareholders are persons who have not been involved in or been found guilty of fraud;

(i)             that the name of the applicant is not likely to be mistaken for the name of any other insurer who is or has been an insurer or so nearly resembling that name, as to be calculated to deceive;

(j)             that the applicant has paid the fee prescribed for registration;

(k)            that it is in the interest of public policy that the applicant be registered;

(l)             that, where the class of insurance is other than life insurance business, the application is for the purposes of transacting not less than 3 classes of insurance business;

(m)           that the applicant has a satisfactory business plan and feasibility study of the insurance business to be transacted within the next succeeding 5 years from the date of the application; and

(n)            in the case of reinsurance business, that in addition to the matters referred to in this section, it has complied with section 10(1)(d) of this Decree and any other conditions which may be specified. from time to time, by the Minister.

(2)            The Commission shall, if satisfied as the matters referred to in subsection (1) of this section, register the applicant provisionally as an insurer and issue to the applicant a provisional certificate of registration which shall be valued for a period of 3 years.

(3)             Notice of the registration of an applicant as an insurer (including registration pursuant to subsection (4) of this section and subsection (6) of section 7 of this Decree, shall be published in the Gazette.

(4)             An insurer registered provisionally under subsection (2) of this section shall -

(a)            have its registration cancelled if it does not commence business within 3 months of registration;

(b)            before the expiry date of the provisional registration, if it desires to continue in business, apply to the Commission for full registration.

(5)            The Commission shall, if satisfied that -

(a)             the operation of the business plan submitted by the insurer under subsection (1) of this section has produced the desired result; and

(b)            the insurer has conducted its business in accordance with -

(i)             sound insurance principles, and

(ii)            the provisions of this Decree and any other enactment,

7.-   (1) If the Commission is not satisfied as the matters referred to in subsection (1) or (5) of section 6 of this Decree, it shall give notice in writing to the applicant within 90 days of the submission of the application of the Commission's intention to reject the application.

(2)            An applicant aggrieved by the intention of the Commission to reject an application for registration as an insurer may, within 30 days after the date of the notice of the Commission's intention to reject the application, lodge with the Director-General of the Ministry a notice of appeal to the Minister.

(3)            The notice of appeal under subsection (2) of this section shall be in writing setting out the grounds on which it is made, and the Director-General shall transmit the notice with any other relevant documents to the Minister within 14 days after the date of its receipt by the Director-General.

(5)            The Director-General shall, unless the appeal is withdrawn, give notice in writing to the applicant of the decision of the Minister (which shall not be subject to appeal) if the appeal is allowed, the Director-General shall cause the Commission to register the person as an insurer and notify him in writing accordingly.

(6)             If an appeal is disallowed, the Director-General shall cause a notice thereof to be published in the Gazette and in such other manner to ensure wide publicity therefore as he may determine.

8.-   (1)             If, in the case of a registered insurer, the Commission is satisfied that -

(a)            the class of insurance business of the insurer is not being conducted in accordance with sound insurance principles; or

(b)            the insurer has failed to satisfy the margin of solvency as contained in section 25 of this Decree; or

(c)            the insurer has ceased to carry on insurance business of the class or category assigned to it for at least one year in Nigeria; or

(d)            the insurer has applied in writing for the cancellation if its registration as an insurer; or

(e)            a judgement obtained from a court of competent jurisdiction in Nigeria against the insurer remains unsatisfied for 30 days and there is no appeal pending against the judgement; or

(f)             the insurer is carrying on simultaneously with the insurance business any other business which is detrimental to the insurance business of the insurer; or

(h)            that the insurer has refused to submit to an examination of its books as provided for in this Decree; or

(i)             that the insurer has failed to comply with the provisions of subsection (5) of section 27 of this Decree; or

(j)             that the insurer has failed to maintain adequate reinsurance arrangements and treaties in respect of the classes or category of insurance business the insurer is authorised to transacted; or

(k)            subject to subsection (3) of this section, the insurer lacks the necessary expertise by virtue of a substantial reduction in the number of its qualified employees; or

(l)             that the insurer has contravened the provisions of section 7 of the Nigeria Reinsurance Corporation Act or any other law relating to compulsory reinsurance; or

(m)           that the net assets of the insurer are below the minimum paid-up capital and the capital has not been made within the time stipulated by the Commission; or

(n)            that the insurer persistently fails to pay claims promptly; or

(o)            that the insurer has failed to set up the special reserves as prescribed under subsection (1) of section 25 of this Decree; or

(p)            that the insurer has established a branch office without the approval of the Commission; or

(q)            that the insurer acts in any manner without the approval of the Commission in cases where this Decree requires such approval; or

(r)             that the insurer has been wound-up or otherwise dissolved or has gone into liquidation; or

(s)            that the insurer, in the case of a reinsurance company, has failed to satisfy the provisions of section 25 of this Decree,

(2)            Where no appeal is lodged as provided for under section 7 of this Decree, the Commission shall, with the approval of the Minister, cancel the registration of the insurer and notice of such cancellation shall be published in the Gazette.

(3)            Where the lack of necessary expertise specified in subsection (1) (k) of this section relates to a particular class of insurance business, the Commission may -

(a)            suspend the insurer from carrying on the class of insurance business until the deficiency is corrected; or

(b)            cancel that class of insurance business from the number of insurance business the insurer is authorised to transact.

(4)           Where a certificate of registration of an insurer is cancelled, the insurer shall forthwith discontinue acceptance of any new business -

(a)            within 2 years from the date of the cancellation, in the case of the reinsurance business to which the provisions of section 8 of this Decree shall also apply; or

(b)            within 12 months from the date of cancellation, in any other case, and all cases, a receiver may be appointed from the date of cancellation in accordance with the provisions of section 55 of this Decree; and shall wind-up the insurance business in accordance with the provisions of section 56 of this Decree.

10.-  (1)           No insurer shall carry on insurance business in Nigeria unless the insurer has and maintains, while carrying on that business, a paid-up share capital of the following amounts as the case may require, that is -

(a)            in the case of life insurance business, not less than 20,000,000;

(b)            in the case of general insurance business, not less than 20,000,000;

(c)            where the general insurance business includes any of the following, that is -

(i)            oil and gas insurance business,

(ii)           credit insurance business, bonds and suretyship,

(iii)          contractors' all risk and engineering risk insurance business,

(iv)           marine and aviation insurance business, other than goods-in-transit insurance business by road, water, air and rail,

(d)            in the case of reinsurance business, not less than 150,000,000;

(2)            The paid-up share capital stipulated in subsection (1) of this section -

(a)             in the case of existing insurers, shall come into force on the expiration of the period of 1 year from the date of the commencement of this Decree;

(b)            shall be subscribed to by shareholders without recourse to the insurance funds and the statutory reserves of the body corporate;

(c)            may be subscribed to by the capitalization of part of undistributed profits.

(3)             Failure to satisfy the paid-up share capital as stipulated in subsection (1) of this section shall constitute a ground for the cancellation of the certificate of registration of an insurer under section 8 of this Decree.

(4)            The Minister may, from time to time, on the recommendation of the Commission with the approval of the Head of State, Commander-in-Chief of the Armed Forces by an order published in the Gazette, vary the amount of minimum paid-up share capital.

11.-  (1)           An insurer intending to commence or continue to carry on insurance business in Nigeria after the commencement of this Decree shall -

(a)            deposit the share capital referred to in section 10 of this Decree (in this Decree referred to as "the statutory deposit") with the Central Bank;

(b)            keep deposited with the Central Bank, the statutory deposit at all times during which the insurer is lawfully carrying on insurance business in Nigeria under or pursuant to the provisions of this Decree.

(2)            Any statutory deposit made under subsection (1) of this section shall attract interest at the minimum lending rate by the Central Bank on every 1st January of each year.

(a)            after the registration of an insurer pursuant to section 6 of this Decree, cause to be released to the insurer a sum not exceeding 50 per centum of the statutory deposit paid by the insurer in respect of each class or category of insurance business but where registration is refused or is subsequently cancelled the whole of the statutory deposit shall, subject to the other provisions of this Decree, be released to the insurer concerned;

(b)            in the case of an insurer who has been in business for a period of not less than five years and has continuously conformed with the solvency requirement for each year of business, in accordance with subsection (2) of section 25 of this Decree, cause to be released a further 35 per centum of the statutory deposit.

13.-  (1)           Where an insurer suffers a substantial loss, that is, such loss as it cannot reasonably meet from its own resources, the Commission may, upon application therefore by the insurer, approve the withdrawal from the statutory deposit of an amount of not more than 25 per centum of the deposit and any amount so withdrawn shall be replaced by the insurer not later than 30 days after the date of such withdrawal.

(2)            The statutory deposit shall be regarded as assets of the insurer and shall be available, if a certificate of insurance is cancelled, for the discharge of the liabilities arising out of policies of the insurance business transacted by the insurer and remaining undischarged at the time of the cancellation of the certificate or winding-up.

14.-  (1)           An insurer shall, on the day it is registered to commence or continue business in Nigeria, have a principal office to which all communications and notices may be addressed, so however, that a postal box address or a private mail bag address shall not by itself only be sufficient for the purposes of the foregoing requirement.

(2)            Notice of the location of the principal office or any subsequent change shall be given within 21 days thereof to the Commission who shall record the same.

(3)            If an insurer carries on business without complying with the requirements of this section, the insurer and every officer thereof are each guilty of an offence and liable on conviction to a fine of N500 for every day during which the insurer so carries on business.

(4)            The fact that the address of an insurer is included in its application or in its annual return or any other return to the Commission shall not be taken to satisfy the obligation imposed by this section.

(5)            Where the insurer is a company incorporated under or pursuant to the Companies and Allied Matters Decree 1990, it shall ensure that its principal office under this Decree is the same as its registered office within the meaning of that Decree.

15.-  (1)           No insurer shall appoint or have in his employment a director, chief executive, manager or secretary if-

(a)             he is or becomes of unsound mind, or as a result of ill health is incapable of carrying out his duties; or

(b)             he is convicted of any offence involving dishonesty or fraud; or

(c)             he is not a fit and proper person for the position; or

(d)             he is guilty of serious misconduct in relation to his duties; or

(e)            in the case of a person with professional qualification, he has been disqualified or suspended from practicing his profession in Nigeria by the order of any competent authority made in respect of him personally; or

(f)             he is a person who has been a director of or has been directly concerned with the management of an insurance institution or financial institution whose licence to operate is cancelled or whose business has been wound up on grounds specified in sections 408(d) and 409 of the Companies and Allied Matters Decree 1990; or

(g)            he is a person whose appointment with an insurance or a financial institution has been terminated or who has been dismissed for reasons of fraud or dishonesty; or

(h)            he has been convicted by a court or tribunal of an offence in the nature of criminal misappropriation of funds or breach of trust or cheating;

(i)             he is a partner in a firm of insurance brokers or loss adjusters.

(2)            An insurer who contravenes subsection (1) of this section is guilty of an offence and liable on conviction to a fine of N5,000 for every day during which the contravention continues.

16.-  (1)            No insurer shall appoint a person as a chief executive whether designated as the managing director, executive chairman or otherwise howsoever -

(a)            unless the person has -

(i)             a recognised professional qualification in insurance or related course, or

(ii)            been registered by the Institute and has satisfied the requirements of the Institute, or

(iii)           not less than 10 years post-qualification experience in the insurance industry, or

(iv)          spent the last 7 years of the 10 years referred to in sub-paragraph (iii) of this paragraph at senior management level;

(b)            if the appointment contravenes the provisions of section 15 of this Decree;

(c)            unless the insurer has served on the Commission a written notice that it proposes to appoint that person to that position and containing such particulars as may, from time to time, be prescribed; and

(d)           unless the Commission has, before the expiration of a period of 60 days beginning with the date of service of that notice, notified the insurer that there is no objection to that person being so appointed.

(2)            A notice served by the insurer under subsection (1) (c) of this section shall contain a statement signed by the person proposed to be appointed that it is served with his knowledge and consent.

(3)           The Commission may -

(a)            before the expiration of the period mentioned in subsection (1) (d) of this section, serve a notice of objection to the appointment of the proposed chief executive; and

(b)           give the insurer and the person proposed to be appointed a period of 21 days within which to make written representation to the Minister through the Director-General of the Ministry.

(4)            The Director-General shall, after receiving the representation made pursuant to subsection (3) of this section, give notice in writing to the insurer and the proposed chief executive of the decision of the Minister which decision shall be final and not be subject to appeal.

(5)            If an insurer carries on business without complying with the requirements of this section, the insurer and the person proposed to be appointed are each guilty of an offence and liable on conviction to a fine of N2,500 for every day during which the insurer so carries on business.

17.-  (1)            A person who becomes or ceases to be the chief executive of an insurer shall, before the expiration of a period of 30 days beginning with the day on which he does so, notify the insurer in writing and send an advance copy to the Commission, on such matters as may, from time to time, be prescribed.

(2)            An insurer shall give written notice to the Commission of the fact that a person has become or ceased to be a chief executive of the insurer and of any matter which the person is required to notify the insurer under subsection (1) of this section and that notice shall be given before the expiration of the period of 21 days beginning with the day on which that fact or matter comes to the knowledge of the insurer.

(3)            A person who fails to comply with subsection (1) or (2) of this section is guilty of an offence and liable on conviction to a fine of N2,500 per day during which the default continues.

18.-  (1)           Where an insurer changes a person heading a department under subsection (1)(f) of section 6 of this Decree, it shall give written notice to the Commission within 21 days of the change.

(2)            If the Commission is satisfied that, as a result of a change notified to it under subsection (1) of this section, the insurer no longer meets the requirements of subsection (1) of section 6 of this Decree, it may suspend the insurer from undertaking new insurance business in that class or category for such period as it may specify to enable the insurer to meet the requirement.

(3)             If the insurer is unable to meet the requirement within any time specified under subsection (2) of this section, the Commission may delete that class or category of insurance from the business the insurer is authorized to transact under this Decree, with 12 months period to run off.

19.-  (1)           An advance copy of the draft (unstamped) policy document evidencing the contract of insurance shall be delivered to the insured not later than 30 days after payment of the first premium.

(2)           The policy document duly stamped shall be delivered to the insured not later than 3 months after payment of the first premium.

(3)            An insurer who contravenes the provisions of this section is guilty of an offence and liable on conviction to a fine of 10,000.

20.-  (1)           No rider, clause, warranty, endorsement or variation which purports to alter or amend the standard policy documents notified to and approved by the Commission pursuant to subsection (1)(e) of section 6 of this Decree shall be attached, printed or stamped on the policy documents without the prior approval of the Commission.

(2)            Notice of an alteration or amendment approved by the Commission pursuant to subsection (1) of this section shall be served on the insured and become operative after 14 days of such notification.

(3)            A dispute as to the regularity of any rider, clause, warranty, endorsement or variation shall be referred to the Commission for consideration and determination.

(4)            No new product shall be introduced into any class or category of insurance business without the prior approval of the Commission.

(5)            An insurer who contravenes the provisions of subsection (2) or (4) of this section is guilty of an offence and liable on conviction to a fine of 25,000.

21.-  (1)            An insurer shall keep and maintain at its principal office the following, that is -

(a)             the Memorandum and Articles of Association or other evidence of the constitution of the insurer;

(b)            a record containing the names and addresses of the owners of the insurance business (whether known as or called shareholders or otherwise however);

(c)            the minutes of any meeting of the owners and of the policy-making executive (whether known as or called the board of directors or otherwise however);

(d)            a register of all policies, in which shall be entered in respect of every policy issued, the name and address of the policy-holder, the date when the policy was effected and a record of any transfer, assignment or nomination, of which the insurer has notice;

(e)            a register of claims, in which shall be entered every claim made, together with the date of claim, the name and address of the claimant and the date on which the claim was settled, or, in the case of a claim which is repudiated, the date of repudiation and the grounds for the rejection or in the case of litigation, the particulars of the litigation and the decision of the court in the matter;

(f)             a register of investment showing those which are attributable to the insurance funds and those which are not and also any alteration in their values from time to time;

(h)             a register of reinsurance ceded, showing separately, those ceded in Nigeria and those ceded outside Nigeria;

(i)              a cash book;

(j)              a current accounts book; and

(k)             a register of open policies in respect of marine insurance transactions.

(2)            An insurer shall in respect of its insurance business, maintain and keep the following additional records, that is -

(a)             a register of assured under group policies;

(b)             a register of loans on policies;

(c)             a register of cash surrendered values; and

(d)             a register of lapsed and expired policies.

(3)            Where an insurer fails to comply with any of the provisions of subsection (1) or (2) of this section, the insurer and every officer of the insurer who fails to comply is guilty of an offence and liable on conviction to a fine of 25,000.

22.-  (1)          A reinsurer shall keep and maintain at its principal office the following -

(a)             the Memorandum and Articles of Association or other evidence of the constitution of the reinsurer;

(b)            records containing the names and addresses of the owners of the reinsurer (whether known as or called share holders or otherwise however);

(c)            the minutes of any meeting of the owners and of the policy-making executive (whether known as or called the Board of Directors or otherwise however);

(d)            a register of all treaties, in which shall be entered in respect of every treaty issued the name of the cedant, and the date when the treaty was effected;

(e)             a register of all claims, in which shall be entered every claim made together with the date of claim, the name of the cedant or insured, their proportionate share and the date the claim is settled;

(f)             a register of investments showing those which are attributable to the reserves and those which are not and also any alteration in value, from time to time;

(g)            a register of assets;

(h)            a register of businesses on retrocession, showing separately, those ceded in Nigeria and those ceded outside Nigeria;

(i)             a register of new and existing clients; and

(j)             a cash book.

(2)             A life reinsurer shall keep the following additional records, that is -

(a)            a register of assureds under group policies;

(b)            a register of lapsed and expired policies;

(c)            a register of claims showing the name of the cedant and when the claim is settled.

(3)            Where a reinsurer fails to comply with any of the provisions of subsection (1) or (2) of this section, the reinsurer and every officer of the reinsurer who fails to comply, is guilty of an offence and liable on conviction to a fine of 250,000.

23.-  (1)           Where an insurer carries on the two classes of insurance business, all the receipts of each of those classes of insurance business shall be entered in a separate and distinct account and shall be carried to and form a separate insurance fund with the appropriate name, so however, that in the case of life insurance, there shall be -

(a)            the individual life insurance business fund; and

(b)            the group life insurance business fund.

(2)            Each insurance fund shall represent the liabilities in respect of all contracts of insurance of that particular class and shall consist -

(a)            in the case of the individual life insurance business and group life business fund, of a sum not less than the mathematical reserve; and

(b)            in the case of general insurance business, of the reserves for unexpired risks and reserves for outstanding claims, including, in the case of the latter, reserves estimated to provide for the expenses of adjusted or settlement of such claims.

(3)            The insurance fund of each particular class shall -

(a)            be as absolutely the security of the policy holders of that class as though it belonged to an insurer carrying on other business than insurance business of that class;

(b)            not be liable for any contract of the insurer for which it would not have been liable had the business of the insurer been only that of particular insurance class; and

(c)            not be applied, directly or indirectly for any purposes other than those of the class of business to which the fund is applicable.

24.-  (1)            An insurer shall establish and maintain the following technical reserves, applicable thereto, in respect of each class of insurance business, that is -

(a)            reserves for unexpired risks;

(b)            reserves for outstanding claims; and

(c)            contingency reserves to cover fluctuations in securities and variation in statistical estimates.

(2)            An insurer shall, in respect of its general insurance business, maintain the following reserves, that is -

(a)            reserves for unexpired risks, which shall be credited with an amount not less than -

(i)             45 per centum of the total premiums, in the case of general insurance business other than marine cargo insurance business, and

(ii)            25 per centum of the total premiums, in the case of marine cargo insurance;

(b)            reserves for outstanding claims, which shall be credited with an amount equal to the total estimated amount of all outstanding claims together with a further amount representing 10 per centum of the estimated figure for outstanding claims in respect of claims incurred but not reported at the end of the year under review; and

(c)            contingency reserves, which shall be credited with an amount not less than 3 per centum of the total premiums or 20 per centum of the net profits (whichever is greater) and the amount shall accumulate until it reaches the amount of the minimum paid-up capital or 50 per centum of the net premiums (whichever is greater).

(3)            An insurer shall, in respect of its life insurance business, maintain the following reserves, that is -

(a)            a general reserve fund, which shall be credited with an amount equal to the net liabilities on policies in force at the time of the actuarial valuation; and

(b)            a contingency reserve fund, which shall be credited with an amount equal to 1 per centum of the gross premiums or 10 per centum of the profits (whichever is greater) and accumulate until it reaches the amount of the minimum paid-up capital.

(4)            A reinsurer shall establish a general reserve fund, which shall be credited with an amount -

(a)            not less that 50 per centum of the reinsurer's gross profit for the year where the fund is less than the authorised capital of the insurer;

(b)            not less than 25 per centum of the reinsurer's gross profit for the year, where the fund is equal to or exceeds the authorised capital of the reinsurer.

25.-  (1)            An insurer shall, in respect of its business, other than its life insurance business, maintain at all times a margin of solvency, being the excess of the value of its admissible assets in Nigeria over its liabilities in Nigeria, consisting of -

(a)            reserves for unexpired risks;

(b)            reserves for outstanding claims;

(c)            reserves for claims incurred but not yet reported; and

(d)            funds to meet other liabilities.

(2)            The solvency margin referred to in subsection (1) of this section shall not be less than 15 per centum of the gross premium income less reinsurance premiums paid out during the year under review or the minimum paid-up capital, whichever is greater.

(3)            For the purpose of calculating the solvency margin, all moneys owed by policy holders, brokers or agents by way of premiums due to but not received by the insurer as at the end of the relevant year, shall not count as admissible assets.

(4)            Where the Commission finds that the solvency margin of an insurer has fallen below the margin stipulated in this section he shall forthwith direct the insurer to make good the deficiency by way of cash payment into its account and satisfactory evidence of such payment shall be produced to the Commission within 60 days of the receipt of the direction.

(5)            If satisfactory evidence of payment is not produced to the Commission within the time stipulated in subsection (4) of this section, the insurer shall not undertake a new insurance business until it produces satisfactory evidence of payment to the Commission.

(6)            Failure to make payment and produce satisfactory evidence of the payment, as required under subsections (4) and (5) of this section, within a period of 6 months of the receipt of the direction, shall constitute a ground for the cancellation of the registration of an insurer under section 8 of this Decree.

(7)            An insurer who transacts a new insurance business in contravention of subsection (5) of this section shall be liable to have his registration cancelled under section 8 of this Decree notwithstanding that the period of 6 months referred to in subsection (6) of this section has not expired.

(8)            An approved auditor who audits the balance sheet, profit and loss account and revenue account of an insurer under section 28 of this Decree, shall issue a certification on oath stating the extent to which the insurer has satisfied the margin of solvency required under this section.

(9)            If the Commission is not satisfied with a certification issued under subsection (8) of this section, it may conduct an independent investigation on the matter with a view to determining what action to take against the insurer or the auditor.

(10)          Where an investigation conducted under subsection (9) of this section discloses a false certification by an auditor, the Commission -

(a)            shall delete the auditor from its list of approved auditors and the auditor shall thereafter not be acceptable to audit an insurer's account; and

(b)            may, make a report on the auditor to the appropriate professional body for necessary disciplinary action.

(11)         In this section -

26.-  (1)           An insurer shall, at all times in respect of the insurance business transacted by it in Nigeria, invest and hold invested in Nigeria, assets equivalent to not less than the amount of the funds in such insurance business as shown in the balance sheet and the revenue accounts of the insurer.

(2)            Subject to the other provisions of this section, the assets of an insurer shall not be invested in property and securities except -

(a)            securities specified under the Trustees Investment Act;

(b)            shares in other securities of a co-operative society registered under a law relating to co-operative societies;

(c)            loans to building societies approved by the Commission;

(d)            loans on real property, machinery and plant in Nigeria;

(e)            loans on life policies within their surrender values;

(f)            cash deposit in or bills of exchange accepted by licensed banks; and

(g)            such investments as may be prescribed.

(3)            An insurer shall not be treated as satisfying the requirements of this section unless not less that 25 per centum of the total assets of the insurer is invested in the securities mentioned in paragraph (a) of subsection (2) of this section.

(4)            No insurer shall -

(a)            in respect of its general insurance business, invest more than 25 per centum of its assets in real property; or

(b)            in respect of its life insurance business, invest more than 35 per centum of its assets in real property.

(5)            An insurer which contravenes the provisions of this section is guilty of an offence and liable on conviction to a fine of 50,000.

(6)            In this section, references to real property, include references to an estate in land, a lease or a right of occupancy under the Land Use Act.

27.-  (1)            An insurer shall, not later than 30th September of each year submit in writing to the Commission the following -

(a)            a balance sheet, duly audited, showing the financial position of the insurance business of the insurer at the close of that year, together with a copy of the relevant profit and loss account which the insurer is to present to its shareholders at its annual general meeting;

(b)            a revenue account applicable to each class of insurance business for which the insurer is required to keep a separate account of receipts and payments; and

(c)            a statement of investments representing the insurance funds.

(2)            The returns and accounts required to be submitted under subsections (1) (a) and (b) of this section shall be in such form as may be approved by the Commission.

(3)            An insurer transacting life insurance business shall submit to the Commission every three years, in the prescribed form, the following -

(a)            an abstract of the report of an actuary and valuation report of the insurance business;

(b)            a summary and valuation of the life policies; and

(c)            a table showing premiums, policy reserve values and guaranteed surrender values, together with the relationship between premiums paid and such guaranteed surrender values.

(d)            a certificate of solvency signed by an actuary stating that the value of the assets representing the funds maintained by the insurer in respect of the insurance business exceeds the value of the liabilities.

(4)            The Commission may require an insurer transacting life insurance business to -

(a)            cause the person who is for the time being the actuary of the insurer to make an investigation into its financial condition (including evaluation of its liabilities) in respect of that business as at a specified date;

(b)            cause an abstract of that person's report of the investigation to be made and submitted to it;

(c)            prepare and submit to it a statement of its life insurance business or part thereof as at the date of the request;

(d)            show it sufficient evidence that no more than 10 per centum of the actuarial surplus declared is appropriated for shareholders.

(5)            An insurer transacting life insurance business shall, at the expiration of each year -

(a)            prepare with reference to that year, in the prescribed form, a statement and exhibit of the life policies; and

(b)            submit the statement and exhibit together with such other documents and information relating to the relevant accounts and balance sheet (including copies of reports on the affairs of the insurer for the year as submitted to the policy-holders of the insurer) as the Commission may, from time to time, require.

(6)            On receipt of the documents mentioned in subsections (4) and (5) of this section, the Commission shall, if it appears to it that the statement furnished by an insurer under any of those subsections is inaccurate or is not prepared in the prescribed form, or is defective in any material particular -

(a)            require from the insurer such further information as it may consider necessary;

(b)            call on the insurer to submit for its examination any book of accounts, register or any other documents;

(c)            require the insurer to confirm on oath or by a sworn declaration the authenticity of any statement submitted by the insurer;

(d)            refuse to accept the insurer's annual statement unless or until the inaccuracies have been corrected or the deficiencies have been supplied.

(6)            An insurer who fails, neglects, or refuses to produce any book or give any information as may be required by the Commission under this section is guilty of an offence and liable on conviction to a fine of 25,000.

(7)            No insurer shall distribute any dividends until the Commission has approved the annual returns of the insurer within 45 days of its submission to the Commission.

(8)            An insurer shall in each year, after receipt of the approval mentioned in subsection (7) of this section, publish its general annual balance sheet together with its profit and loss accounts in at least one newspaper having wide circulation in Nigeria.

(9)            Without prejudice to subsection (8) of this section, no insurer shall distribute any dividends in the first 3 years of its commencement of business.

(10)          The provisions of this section shall apply mutatis mutandis to a reinsurer.

28.-  (1)           The balance sheet, profit and loss account and revenue account of an insurer, in respect of the insurance business transacted by the insurer, shall be audited annually by an auditor approved in that behalf by the Commission and no auditor shall be so approved by the Commission if he is an employee, manager or director of the insurer.

(2)            At the conclusion of the audit, the auditor shall issue a certificate signed by him, stating whether in his opinion –

(a)            he has obtained adequate information from the books and records of the insurer;

(b)            the books of the insurer have been properly kept and the affairs and transactions of the insurer have been correctly recorded;

(c)            the accounts and balance sheet of the insurer are in accordance with the information given to him for the purposes of his audit;

(d)            the accounts and balance sheet are in accordance with the applicable provisions of this Part of this Decree; and

(e)            the balance sheet of the insurer and the profit and loss account, respectively, give a true and fair view of the financial position of the insurer.

29.-  (1)           An insurer transacting life insurance business shall, in respect of its life insurance business, once in every period of 5 years cause an investigation to be made into its financial position by an actuary appointed or secured by the insurer.

(2)            An investigation under subsection (1) of this section shall include -

(a)            a valuation of the liabilities of the insurer; and

(b)            a determination of any excess over those liabilities of the assets representing the funds maintained by the insurer.

(3)            For the purposes of an investigation under this section, the value of any asset and the amount of liability shall be determined in accordance with applicable valuation regulations.

30.-  (1)            Subject to the provisions of this section, no insurer shall -

(a)            amalgamate with, transfer to or acquire from any other insurer any insurance business or part thereof, without the approval of the Commission; or

(b)            without the sanction of the Court -

(i)            amalgamate with any other insurer carrying on life insurance business, or workmen's compensation insurance business, or

(ii)            transfer to or acquire from any other insurer, any such insurance business or part thereof.

(2)            The Commission may, before granting an approval under subsection (1) (a) of this section, call for such statements, documents and other information as shall enable it to reach a decision on the matter.

(3)            If a class of insurance business mentioned in subsection (1) (b) of this section is intended to be amalgamated with any other insurance business or where an insurer or the class of insurance business is intended to be transferred or acquired, in whole or in part, the insurers concerned shall apply to the Court to sanction the proposed amalgamation or transfer, as the case may be.

(4)            Before an application is made to the Commission for approval or to the Court to sanction any transaction under this section, notice of intention to make the application together with a statement of the nature of the amalgamation, transfer or acquisition shall, at least 3 months before the application is made, be published in the Gazette and be served on the Commission.

(5)            During the 3 months referred to in subsection (4) of this section, certified copies of each of the following documents shall be kept open for inspection by the members and policy-holders at the principal and branch offices of the insurers concerned, that is -

(a)            a draft of the agreement of deed under which it is proposed to effect the amalgamation, acquisition or transfer;

(b)            balance sheets in respect of the insurance business of each of the insurers concerned, prepared in the prescribed form; and

(c)            actuarial reports in respect of the life insurance business of each of the insurers concerned, prepared in the prescribed form; and

(d)            a report on the proposed amalgamation, transfer or acquisition prepared by an independent actuary.

(6)            The deed or agreement under which an amalgamation, transfer or acquisition, as the case may be, is proposed to be effected shall be available for inspection without payment of any fee by policy-holders and shareholders at all reasonable times in all the offices of the insurers in Nigeria, for a period of 21 days after the publication of the notice in the Gazette.

(7)            The Commission or Court in its discretion may approve or sanction the amalgamation, transfer or acquisition if it is satisfied that no sufficient objection has been established by those entitled to be heard.

(8)            For the purposes of subsection (7) of this section it shall be sufficient objection if it appears to the Commission or Court that policy-holders representing not less than one-fifth of the total number insured by any of the insurers carrying on the insurance business concerned, dissent from the amalgamation, transfer or acquisition, as the case may be.

(9)            If an amalgamation, transfer or acquisition under this section is approved by the Commission or sanctioned by the Court, no policy-holder shall be regarded as having abandoned a claim which he would have had against the original insurer or as having accepted in place of the original insurer the liability of that insurer.

(10)            A policy-holder who abandons his claim under subsection (9) of this section shall have the right to cancel his contract, in which case he shall be entitled to claim the portion of premium corresponding to the unexpired term of the risk insured by him or to the mathematical reserve, in the case of life insurance.

(11)            The insurer from whom the business is transferred shall not be registered anew to undertake the same class or, as the case may be, classes of insurance business until after the expiration of 5 years from the issue of the approval by the Commission or sanction of the Court.

(a)            certified copies of statement of assets and liabilities of the insurers concerned in the amalgamation, transfer or acquisition together with a statement of the nature and terms of the amalgamation or transfer;

(b)            a certified copy of the agreement or deed under which the amalgamation, transfer or acquisition had been effected;

(c)            a certified copy of the actuarial or other reports upon which the agreement or deed was founded; and

(d)            a declaration signed by each of the insurers concerned -

(i)             that to the best of their knowledge and belief, every payment made or to be made to any person whatsoever on account of the amalgamation or transfer is therein fully set forth, and

(ii)            that no other payments beyond those set forth have been made or are to be made either in money, policies, securities or other valuable consideration by or with the knowledge of any of the parties to the amalgamation or transfer.

32.-  (1)            A petition for the winding-up of an insurer may be presented to the Court either -

(a)            by not less than 50 policy-holders, each of whom holds a policy that has been in force for not less than 3 years, on the grounds specified in sections 408 and 409 of the Companies and allied Matters Decree 1990; or

(b)            by the Commission on any of the following grounds, that is -

(i)             that the insurer has failed to comply with the requirements of subsection (1) of section 8 of this Decree, or

(ii)            that the insurer, having failed to comply with any of the requirements of subsection (1) of section 8 of this Decree or having contravened any of the provisions of that section, has continued such failure or contravention for a continuous period of 6 months, after notice of the failure or contravention has been conveyed to the insurer by the Commission, or

(iii)           that the registration of the insurer has been cancelled in accordance with subsection (2) of section 8 of this Decree, or

(iv)           that it appears from the annual statements furnished by the insurer under section 27 of this Decree or from the results of any investigation made, that the insurer is insolvent.

(2)            The provisions of the Companies and Allied Matters Decree 1990 shall have effect, subject to this Decree, as if the petition under subsection (1) of this section was presented under that Decree.

34.-  (1)            No person shall transact business as an insurance agent unless he -

(a)            possesses a certificate of proficiency issued by the Institute; and

(b)            is licensed in that behalf under this Decree.

(2)            An application for a licence as an insurance agent shall be made to the Commission in the prescribed form and be accompanied by the prescribed fee and such other documents as may be prescribed, from time to time.

(3)            If the Commission is satisfied that the applicant has satisfied the requirements of this section or such other requirements as may be prescribed, it shall license the applicant as an insurance agent.

(4)            A licence issued under this section shall entitle the holder to act as an insurance agent for the insurer or insurers named in the licence and shall, subject to this section, be renewable every year on payment of the prescribed fee.

(5)            A person who -

(a)            is a minor; or

(b)            is of unsound mind; or

(c)            has not been certified as an insurance agent by the Institute;

(d)            had, prior to the date of his application, been convicted by a court or tribunal of an offence in the nature of criminal misappropriation of funds or breach of trust or cheating,

(6)            An insurance agent who, after having been licensed, is found to be a minor or subsequently suffers any of the disabilities mentioned in paragraph (b), (c)) or (d) of subsection (5) of this section, shall have his licence cancelled.

(7)            If an insurance agent who has applied for renewal of a licence issued under this section produces an official receipt indicating that he has paid the prescribed fee for the renewal of the licence, an insurer may transact business with him for a period not exceeding 60 days from the date of the official receipt.

35.-  (1)            An insurer who employs the services of an insurance agent and every person who acts for an insurer in that behalf shall maintain a register showing the name and address of every insurance agent and the date on which his services were employed and, where applicable, terminated.

(2)            Where an insurance business is transacted through an insurance agent, he shall immediately pay to the insurer any premium collected by him.

(3)            An insurance agent who contravenes subsection (2) of this section is guilty of an offence and liable on conviction -

(a)            for a first offence, to a fine of 10,000;

(b)            for a second offence, to a fine of 50,000; and

(c)            for a third offence, to a fine of 100,000 or to imprisonment for a term of 3 years or to both such fine and imprisonment and in addition his licence shall be cancelled and he shall be disqualified from being licenced again as an insurance agent.

(4)            A person who transacts business as an insurance agent –

(a)            without having been licensed in that behalf under this Decree; or

(b)            without having his licence renewed under this Decree; or

(c)            without producing an official receipt indicating that the prescribed fees for the renewal of the license has been paid, is guilty of an offence and liable on conviction to a fine of 250,000 or to imprisonment for a term of 3 years or to both such fine and imprisonment; and in addition, the Court may make an order requiring the person to refund any sums collected by him, while so transacting the business, to the rightful owners thereof or other persons entitled thereto.

(5)            An insurer who knowingly or recklessly transacts any insurance business with any person mentioned in subsection

(4)            of this section is guilty of an offence and liable on conviction to a fine of 500,000 and the Court may make such additional order as to the refund of the sums involved as specified under subsection (4) of this section.

36.-  (1)            No person shall transact business in Nigeria as an insurance broker unless he is registered under this Decree.

(2)            Application for registration as an insurance broker shall be made to the Commission in the prescribed form and accompanied by the prescribed fee and such other documents as may be prescribed from time to time.

(3)             If the Commission is satisfied that the applicant -

(a)            has the prescribed qualifications;

(b)            is a limited liability company duly registered under the Companies and Allied Matters Decree 1990; and

(c)            has a paid up capital of at least 5,000,000,

(4)             No person shall be a chief executive in a brokering firm unless -

(a)             he is registered as an insurance broker by the Institute; or

(b)            in the case of an existing firm, he has, within 3 years of the commencement of this Decree, successfully completed a course on insurance broking conducted by the Institute, and he has in addition satisfied all the requirements of the Institute;

(c)            in the case of an existing firm, he has within a period of 1 year of the commencement of this Decree, re-registered with the Commission.

(5)            Where the brokering firm deals in oil and gas insurance, credit insurance business bonds and suretyship, contractor's all risk and engineering risk insurance as well as marine, aviation insurance and reinsurance, the body corporate shall satisfy the Commission that it possesses the relevant expertise.

(6)            If the Commission is not satisfied as to any of the matters referred to in subsection (3) of this section, the Commission shall give notice in writing to the applicant of the Commission's intention to reject the application.

(7)            A person aggrieved by the intention of the Commission to reject an application for registration as an insurance broker may give notice of appeal and the provisions of section 7 of this Decree shall apply as if references in that section to an applicant were references to an applicant under this section.

(8)            A certificate issued to an insurance broker shall be valid for two years and shall, subject to this section, lapse if not renewed within two months from the date of expiry.

(9)            A person who transacts business as an insurance broker without having been registered in that behalf under this Decree is guilty of an offence and liable on conviction -

(a)            in the case of a firm or other combination of persons, each officer of the firm to a fine of 250,000 or to imprisonment for a term of 2 years or to both such fine and imprisonment and, in addition, the Court may make an order requiring the refund of the sums collected by the individual or firm while so transacting the business to the rightful owners thereof or other persons entitled thereto;

(b)            in any other case, to a fine of 250,000.

(10)          An insurer who knowingly or recklessly transacts insurance business with any person mentioned in subsection (9) of this section is guilty of an offence and liable on conviction to a fine of 500,000 and the Court may make such additional order as to the refund of the sums involved as referred to in that subsection.

(a)            has knowingly or recklessly contravened the provisions of this Part of this Decree; or

(b)            practices as a loss adjuster; or

(c)            has, for the purpose of obtaining a licence, made a statement which is false in a material particular; or

(d)            has been found guilty by a court of competent jurisdiction of fraudulent or dishonest practice (including misappropriation of clients' money); or

(e)            has materially misrepresented the terms and conditions of any policy or contract the insurance which he has sold to clients or seeks to sell to prospective clients, the Commission shall give notice in writing of the Commission's intention to cancel the registration or to refuse its renewal and the provisions of section 7 of this Decree shall apply as if references in that section to applicant were references to an insurance broker under this subsection.

(a)            maintain a professional indemnity cover of not less than 10, 000,000 or 50 per centum of his annual brokerage income for the preceding year, whichever is the greater;

(b)            have as a member of its senior management staff at least one person who has professional qualification in insurance or at least 7 years experience at senior management level with an insurer or insurance broker;

(c)            not hold directly or indirectly financial interest -

(i)            in excess of 10 per centum in an insurance or reinsurance company, or

(ii)            in a loss adjustment company in Nigeria;

(d)            notwithstanding the provisions contained in subsection (1)(i) of section 15 of this Decree an insurance broker may serve as a director of a reinsurance company;

(e)            keep a register of business transacted by him on an annual basis.

(2)            An insurer who transacts business with an insurance broker who has been suspended is guilty of an offence and liable on conviction to a fine of 250,000.

(3)            If an insurer continues to commit an offence under subsection (2) of this section after a second conviction, the Commission may give to the insurer notice of its intention to cancel the registration of the insurer under section 8 of this Decree.

40.-  (1)           An insurance broker shall establish and maintain at all times a trust account into which all monies, premiums, claims and recoveries from and on behalf of clients, insurers and reinsurer shall be paid.

(2)            An insurer who contravenes the provisions of subsection (1) of this section is guilty of an offence and liable on conviction to a fine of 250,000 or to imprisonment for a term of 3 years or to both such fine and imprisonment.

41.-  (1)           Where an insurance business is transacted through an insurance broker, he shall, not later than 30 days of collecting the premium, pay to the insurer any premium collected by him.

(2)            An insurance broker who contravenes the provisions of subsection (1) of this section is guilty of an offence and liable on conviction for -

(a)            a first offence, to a fine of 10,000;

(b)            a second offence, to a fine of 25,000;

(c)            a third offence, to fine of 50,000; and in addition the certificate of the insurance broker shall be cancelled and the person or, in the case of a firm, the persons constituting the firm, shall be disqualified from being again involved in the setting up of the business of insurance brokerage under this Decree either by himself or themselves or in conjunction with any other person or body.

(3)            An external auditor who audits the accounts of an insurance broker shall at the conclusion of each audit issue a certificate on oath that all premiums collected by the insurance broker have been paid to the insurer with whom he transacted business during the year.

(4)            Failure by an insurance broker to pay an insurer any premium collected under subsection (1) of this section may constitute a ground for the cancellation of the registration or refusal to renew the registration of the insurance broker.

(6)            False declaration by an insurance broker of his income or remittance of premiums collected shall constitute a ground for the cancellation of the registration or refusal to renew the registration of the insurance broker.

42.-  (1)            A registered insurance broker shall keep records of all insurance businesses handled by him and, for the purposes of this section, separate records shall be kept by the insurance broker with respect to -

(a)            insurance business entered into with insurers registered under or pursuant to this Decree; and

(b)            subject to subsection (3) of this section, insurance business entered into with persons outside Nigeria.

(2)            An insurance broker shall -

(a)            keep accounting records which shall show and explain the business transacted by the insurance broker and disclose his true financial position; and

(b)            ensure that the accounting records kept under paragraph (a) of this subsection give a true and fair view of his business at the accounting date.

(3)            An insurance broker shall submit an audited statement of accounts comprising -

(a)            the profit and loss account; and

(b)            balance sheet,

(4)            An insurance broker who contravenes the provision of this section is guilty of an offence and liable on conviction to a fine of 50,000.

43.-  (1)            No insurance broker shall undertake reinsurance broking without the approval of the Commission.

(2)            The Commission may grant an approval to an insurance broker for the purposes of subsection (1) of this section if it is satisfied that -

(a)            the insurance broker has the required expertise to conduct the class of reinsurance business; and

(b)            at least one partner or employee of the insurance broker has at least 12 years working experience in the middle management cadre of a reinsurer or reinsurance broker.

(3)            An insurance broker who contravenes the provisions of this section is guilty of an offence and liable on conviction to a fine of 250,000 and in addition the reinsurance business transacted shall be null and void.

44.-  (1)           A direct insurance broker who enters into a contract of insurance with a foreign insurer shall -

(a)            serve the Commission notice of the contract within 30 days of its being signed;

(b)            ensure that the relevant sections of the Nigeria Reinsurance Corporation Act are complied with; and

(c)            include any commission received on the transaction as part of the gross commission received by the insurance broker during the relevant year.

(2)            An insurance broker who contravenes any of the provisions of subsection (1) of this section is guilty of an offence and liable on conviction to a fine of 250,000 and a continuous contravention shall constitute a ground for the cancellation of the registration of the insurance broker.

45.-  (1)            No person shall transact business as a loss adjuster in Nigeria unless he is registered in that behalf under this Decree.

(2)            An application for registration as a loss adjuster shall be made to the Commission in the prescribed form and be accompanied by payment of such fee and other documents as may, from time to time, be prescribed.

(3)            An applicant shall be duly registered as a loss adjuster if the Commission is satisfied that -

(a)            he is duly registered as a limited liability company under the Companies and Allied Matters Decree 1990;

(b)            he has a paid up capital of at least 5,000,000; and

(4)            No person shall be a chief executive in a loss adjusting firm unless -

(a)            he is registered as a loss adjuster by the Institute;

(b)            in the case of an existing firm, he has, within 3 years of the commencement of this Decree, successfully completed a course on loss adjusting, conducted by the Institute, and he has, in addition, satisfied all the requirements of the Institute.

(c)            in the case of an existing firm, he has within a period of 1 year of the commencement of this Decree, re-registered with the Commission.

(5)            Where the firm deals in oil and gas insurance, credit insurance bonds and suretyship, contractors, all risks and engineering risk insurance as well as marine, aviation insurance and reinsurance, the firm shall satisfy the Commission that it possesses the relevant expertise.

(6)            A certificate of registration issued to a loss adjuster shall be valid for 1 year and shall, subject to the loss adjuster satisfying prescribed requirements, be renewable every year on payment of the prescribed renewal fee and shall lapse at the end of 2 months after the expiry date.

(7)            A loss adjuster who has in his employment an unqualified but experienced loss adjuster shall not attend to a claim where the potential loss is in excess of 250,000 or such other sum as the Commission may, with the approval of the Minister, from time to time, by regulations, specify.

(8)            No loss adjusting company shall be owned by an insurer, a reinsurer or an insurance broker or any other company whose interest may prejudice the professional standard or conduct of the loss adjusting company.

(9)            A loss adjuster who transacts business as a loss adjuster without having been registered in that behalf or without having his registration renewed under the Decree is guilty of an offence and liable on conviction to a fine of 250,000.

(10)          An insurer or any other person who knowingly or recklessly transacts business with or engages the services of an unregistered loss adjuster or a loss adjuster whose certificate has expired is guilty of an offence and liable on conviction to a fine of 250,000.

46.-  (1)            If the Commission is satisfied that a registered loss adjuster -

(a)            has knowingly or recklessly contravened the provisions of this Part of this Decree; or

(b)            has, for the purpose of registration, made a statement which is false in a material particular; or

(c)            has been found guilty by a court of competent jurisdiction of fraudulent or dishonest practices (including misappropriation of clients moneys); or

(d)            has in any manner displayed any act of professional misconduct,

(2)            An applicant aggrieved by the intention of the Commission to cancel the registration of an insurer to refuse its renewal may within 30 days after the date of the notice of the Commission's retention to so act, lodge with the Director-General of the Ministry a notice of appeal to the Minister.

(a)            authorize an investigator to conduct an examination of any insurance agent, insurance broker or loss adjuster as may be reasonable in the circumstance; and

(b)            by notice in writing, require any insurance agent, insurance broker or loss adjuster to produce any document or information on any matter relating to the insurance business negotiated or to be negotiated or solicited by the insurance agent, insurance broker or loss adjuster.

50.-  (1)          The receipt of an insurance premium shall be a condition precedent to a valid contract of insurance and there shall be no cover in respect of an insurance risk, unless the premium is paid in advance.

(2)            An insurance premium collected by an insurance broker in respect of an insurance business transacted through the insurance broker shall be deemed to be premium paid to the insurer involved in the transaction.

51.-  (1)            No insurer shall either by itself or as a member of an association of insurers make a general increase in the rates of premiums charged or to be charged with respect to any class of motor insurance business or any division hereof except with the prior approval of the Commission.

(2)            An insurer who makes a general increase otherwise than in compliance with subsection (1) of this section is guilty of an offence and liable on conviction to a fine of 10 times the amount of the premiums charged and received by the insurer.

(3)            An insurer who increases rates of premiums otherwise that in compliance with subsection (1) of this section is guilty of an offence and liable on conviction to either of the following additional penalties, that is -

(a)            suspension of its operations in respect of new insurance business for a period of not less than 6 months or more than 3 years; or

(b)            cancellation of its certificate of registration,

(4)            The penalties referred to in subsection (3) of this section shall be imposed by the Commission and an insurer who feels aggrieved may appeal to the Minister in accordance with the provisions of section 7 of this Decree and the decision of the Minister in the appeal shall be final.

(5)            The provisions of this section shall not apply to non-tariff insurance business where premiums are charged according to the risk covered by the insurance policy.

52.-  (1)           The Commission may, from time to time, appoint an ad hoc committee to deal with matters relating to tariff insurance business in Nigeria.

(2)            The committee appointed under subsection (1) of this section shall consist of such number of persons and perform such functions as the Commission may, from time to time, prescribe.

53.-  (1)            No insurer shall pay by way of commission to an insurance agent, insurance broker or any other intermediary, an amount -

(a)            exceeding 10 per centum of the premium in respect of motor, workmen's compensation or contractor's "all risks" and engineering insurance; or

(b)            exceeding 20 per centum of the premium in respect of any other sub-division (not being one mentioned in paragraph (a) of this subsection) of general insurance business.

(2)            No alteration in the rates of a commission mentioned in subsection (1) of this section shall be made except with the prior approval of the Commission.

(3)            The rate of commission payable to insurance agents shall not be more than 50 per centum of the rate of commission payable to insurance brokers as determined by the Commission, from time to time, on the recommendation of the ad hoc committee appointed under section 52 of this Decree.

(4)            A person who pays or who receives any commission otherwise that in compliance with the provisions of this section is guilty of an offence and liable on conviction to a fine of 250,000 plus an additional fine being an amount equal to the excess commission.

(5)            For the purposes of this section, a construction plant, machinery and equipment insurance shall be deemed to be an engineering insurance.

55.-  (1)            In every case where the certificate of registration of an insurer, insurance broker or loss adjuster is cancelled pursuant to any provision of this Decree, the Commission may, unless the insurer is a body corporate being wound up by the Court, appoint a receiver to immediately take charge of its assets and to collect and gather in all other assets due to the insurer and administer same as expeditiously as possible for the benefit of the policy-holders, clients and creditors thereof.

(2)            The receiver shall, as soon as may be after his appointment, apply to the Court for the winding-up of the insurer and, for this purpose, the provisions of the Companies and Allied Matters Decree 1990 relating to the winding-up of companies by the Court shall, subject to section 57 of this Decree, apply.

(3)            The receiver may, immediately after his appointment, freeze the accounts of the insurer and shall take charge of the management control of the insurer.

56.-  (1)            This section has effect in relation to the winding-up of an insurer, carrying on life insurance business.

(2)            The liquidator appointed for the winding-up shall, unless the Court otherwise orders, carry on the life insurance business of the insurer with a view to its being transferred as a going concern to another insurer, whether an existing insurer or an insurer registered for that purpose.

(3)            In carrying on the business as specified in subsection (2) of this section, the liquidator may agree to the variation of any contracts of insurance in existence when the winding-up order is made but shall not effect new contracts of insurance.

(4)             The Court may, if it thinks it fit and subject to such conditions (if any) as it may determine, reduce the amount of the contracts made by the insurer in the course of carrying on life insurance business.

(5)             The Commission may at any time appoint, and the Court, on the application of the liquidator, may appoint, an independent actuary to investigate the life insurance business of the insurer.

(6)            The actuary shall report to the authority by whom he was appointed under subsection (5) of this section, as the case may require, on the desirability or otherwise of the life insurance business being continued and on any reduction in the contracts made in the course of carrying on that business that may be necessary for its successful continuation.

(7)            The Commission or the liquidator may petition the Court in the name or on behalf of the insurer under section 32 of this Decree.

57.-  (1)           Any power conferred on the Commission by this Decree to require an insurer, reinsurer, loss adjuster or other person to produce books or other documents shall include -

(a)            if the books or documents are produced -

(i)            to take copies of them or extracts from them, and

(ii)            to require the insurer, reinsurer, insurance broker, loss adjuster or other person ,or any person who is or was at any time employed as an officer, auditor or in any other office by the insurer, reinsurer, insurance broker or loss adjuster, to provide an explanation of such books or documents;

(b)            if the books or documents are not produced, to require the person who was required to produce them to state, to the best of his knowledge and belief, where they are.

(2)            In this section, "books, or documents" include accounts, deeds, writings, registers, ledgers and documents of all descriptions.

58.-  (1)           Where an insurer requires an insured to complete a proposal form or other application form for insurance, the form shall be drawn up in such manner as to elicit all such information as the insurer considers materials in accepting the application for insurance of the risk; and any information not specifically requested shall be deemed not to be material.

(2)            The proposal form or other application form for insurance shall be printed in easily readable letters and shall state, as a note in a conspicuous place on the front page, that "An insurance agent who assists an applicant to complete an application or proposal form for insurance shall be deemed to have done so as the agent of the applicant".

(3)            A disclosure or representation made by the insured to the insurance agent shall be deemed to be a disclosure or representation to the insurer provided the agent is acting within his authority.

(4)            In this section, the expression "insured" includes an applicant for insurance.

59.-  (1)            In a contract of insurance, a breach of a term whether called a warranty or a condition shall not give rise to any right by or afford a defence to the insurer against the insured unless the term is material and relevant to the risk or loss insured against.

(2)            Notwithstanding any provision in any written law or enactment to the contrary, where there is a breach of a term of a contract of insurance, the insurer shall not be entitled to repudiate the whole or any part of the contract or a claim brought on the grounds of the breach unless -

(a)            the breach amounts to a fraud; or

(b)            it is a breach of a fundamental term (whether or not it is called a warranty) of the contract.

(3)            Where there is a breach of a material term of a contract of insurance and the insured makes a claim against the insurer and the insurer is not entitled to repudiate the whole or any part of the contract, the insurer shall be liable to indemnify the insured only to the extent of the loss which would have been suffered if there was no breach of the term.

(4)            Nothing in this section shall prevent the insurer from repudiating a contract of insurance on the ground of a breach of a material term before the occurrence of the risk or loss insured against.

(5)            In subsection (2) (b) of this section, "fundamental term" means a warranty, condition or other term of an insurance contract which a prudent insurer will regard as material and relevant in accepting to underwrite a risk and in fixing the amount of premium.

60.-  (1)           A policy of insurance made by a person on the life of any other person or on any other event whatsoever shall be null and void where the person for whose benefit, or on whose account the policy of insurance is made has no insurable interest in the policy of insurance or where it is made by way of gaming or wagering.

(2)            A person shall be deemed to have an insurable interest in the life of any other person or in any other even where he stands in any legal relationship to that person or other event in consequence of which he may benefit by the safety of that person or even or be prejudiced by the death of that person or the loss from the occurrence of the event.

(3)            In this section, "legal relationship" includes the relationship which exists between persons under Islamic law or Customary law whereby one person assumes responsibility for the maintenance and care of the other.

61.-  (1)            A policy of insurance shall not be made on the life of a person or other event without inserting in the policy the name of the person interested in it, or for those whose benefit or on whose account the policy is made.

(2)            The provisions of subsection (1) of this section shall not invalidate a policy for the benefit of unnamed persons from time to time falling within a specified class or description if the class or description is stated in the policy with sufficient particularity to make it possible to establish the identity of all persons who at any given time are entitled to benefit under the policy.

(a)            is entitled by assignment or other derivative title to a policy of life insurance; and

(b)            has, at the time when action is brought on the policy, the right in equity to receive and to give an effectual discharge to the insurer liable under such policy for money thereby assured or secured, shall be entitled to sue in the name of such person to recover such money, but the assignee shall not have a better title than the insured.

64.-  (1)            No assignment of a policy of life insurance shall confer on the assignee or his personal representatives any right to sue for the amount of the policy or the insured money, unless and until, a written notice of the date and purport of the assignment is given to the insurer liable under the policy at his principal address of business.

(2)            The date on which the notice is received shall regulate the priority of all claims under the assignment.

(3)            A bona fide payment made in respect of any policy by an insurer before the date on which the notice is received shall be valid against the assignee giving the notice.

67.-  (1)            Where a house or other building insured against loss of fire -

(a)            is damaged or destroyed by fire; and

(b)            there is no reasonable ground to suspect that the owner, occupier or other person who insured the house or other building is guilty of fraud in respect of the insurance, or of wilfully causing the fire,

(2)            The insurance money payable under subsection (1) of this section shall be paid out and expended towards re-building, re-instating or repairing of the house or other building so burnt down, damaged, or destroyed by fire, unless -

(a)            the party or parties claiming such insurance money shall within 60 days after the claim is agreed, give security to the satisfaction of the insurer that the insurance money shall be paid out and expended as stated herein; or

(b)            the insurance money is, at that time, settled and disposed of to and among all the parties entitled as the insurer may determine with the approval of the court on the application of the insurer or any of the interested parties.

(3)            Notwithstanding the provisions of subsection (1) of this section, the insurer shall have the right to elect whether to re-instate the house or building damaged or destroyed by fire, or to pay the insured for the loss suffered but not exceeding the insured sum.

68.-  (1)            Where a third party is entitled to claim against an insured in respect of a risk insured against, he shall have a right to join the insurer of that risk in an action against the insured in respect of the claim.

(2)            A third party shall, before bringing an application to join the insurer, give to the insurer at least 30 days notice of the pending action and of his intention to bring the application.

69.-  (1)            No insurer or reinsurer other than Nigeria Reinsurance Corporation shall enter into a contract of reinsurance with a foreign reinsurer without complying with the provisions of section 7 of the Nigeria Reinsurance Corporation Act.

(2)            Any insurer or reinsurer who contravenes the provisions of subsection (1) of this section is, in addition to any sanction specified in the Nigeria Reinsurance Corporation Act, guilty of an offence and liable on conviction to a fine of 500,000.

(3)            For the avoidance of doubt, no foreign reinsurer shall transact a reinsurance business which is classified in Nigeria as domestic reinsurance business unless it is registered under this Decree.

(4)            Any reinsurer which contravenes the provisions of subsection (3) of this section is guilty of an offence and liable on conviction to a fine of 1,000,000 and in addition the contract of reinsurance shall be null and void.

(5)            Any insurer which transacts any reinsurance business with a reinsurer not registered as required under subsection (3) of this section is guilty of an offence and liable on conviction to a fine of 1,000,000 and continuous transaction of such reinsurance business by the insurer shall constitute a ground for the cancellation of its certificate of registration.

(6)            In subsection (3) of this section, "domestic reinsurance business" includes-

(a)            motor and liability reinsurance business;

(b)            life reinsurance business; and

(c)            accident reinsurance business; and

(d)            such other reinsurance businesses as the Minister may, from time to time, prescribe.

(7)            The Minister on the recommendation of the Nigeria Reinsurance Corporation and the Commission, may, from time to time, by regulations, vary the categories of reinsurance business specified in subsection (6) (a), (b) and (c) of this section.

70.-  (1)            No insurer shall underwrite facultative reinsurance business in excess of 25 per centum of its gross premium income for the year under review.

(2)            An insurer which contravenes the provisions of subsection (1) of this section is guilty of an offence and liable on conviction to a fine of 500,000.

(3)            In this section, "facultative reinsurance" means individual acceptance or case by case acceptance of reinsurance business.

71.-  (1)           The Commission may, with the approval of the Minister, make regulations as to the form and contents of insurance advertisements.

(2)             Regulations under this section may make different provisions in relation to insurance advertisements of different classes or descriptions.

(3)            Subject to subsection (4) of this section, any person who issues an insurance advertisement which contravenes regulations under this section is guilty of an offence and liable on conviction to a fine of 100,000.

(4)            A person who in the ordinary course of business issues an advertisement to the order of another person, being an advertisement the issue of which by that person constitutes an offence under subsection (3) of this section, shall not himself be guilty of the offence if he proves that the matters contained in the advertisement were not (wholly or in part) devised or selected by him or by any person under his direction or control.

(5)            For the purposes of this section an advertisement issued by any person on behalf of or to the order of another person shall be treated as an advertisement issued by that person, and for the purposes of any proceedings under this section an advertisement inviting persons to enter into contracts with a person specified in the advertisement shall be presumed, unless the contrary is proved, to have been issued by that person.

(6)            In this section -

(a)            by any statement, promise or forecast which he knows to be misleading, false or deceptive, or by any dishonest concealment of material facts, or by the reckless making (dishonestly or otherwise) of any statement;

(b)            by any promise or forecast which is misleading, false or deceptive, induces or attempts to induce another person to enter into or offer to enter into any contract of insurance with an insurance company is guilty of an offence and liable on conviction to a fine of 100,000 or imprisonment for a term of 2 years or to both such fine and imprisonment.

73.-  (1)            Where -

(a)            civil proceedings are taken in court in respect of any claim relating to the death of or bodily injury to any person caused by or arising from the use of a motor vehicle covered by a policy of insurance; and

(b)            judgment is obtained against the person insured then, notwithstanding that the insurer may be entitled to avoid or cancel or may have avoided or cancelled the policy, the insurer shall, subject to this section, pay to the person entitled to the benefit of such judgment the sum payable (including costs and interest on such sum) not later than 30 days from the date of delivery of the judgment.

(2)            No sum shall be payable by an insurer under the provisions of subsection (1) of this section -

(a)            in respect of any judgment, unless before or within 7 days after the commencement of the proceedings in which the judgment was given, the insurer has notice of the bringing of the proceedings; or(b) in respect of any judgment, if execution thereon is stayed, pending an appeal; or

(c)            in connection with any liability, unless before the happening of the event which gave rise to the liability, the policy was cancelled by mutual consent or by virtue of any provision contained therein and -

(i)            before the happening of such event, the certificate of insurance was surrendered to the insurer, or the person to whom the certificate of insurance was delivered made a statutory declaration stating that the certificate of insurance had been lost or destroyed and so could not be surrendered, or

(ii)            after the happening of such event but before the expiration of 14 days from the taking effect of the cancellation of the policy, the certificate of insurance was surrendered to the insurer, or the person to whom the certificate of insurance was delivered made a statutory declaration stating that the certificate of insurance had been lost or destroyed and so could not be surrendered, or

(iii)            before or after the happening of the event or within a period of 14 days from the taking effect of the cancellation of the policy, the insurer had commenced proceedings under this Decree in respect of the failure to surrender the certificate of insurance.

(3)            No sum shall be payable by an insurer under the provisions of this section if -

(a)            in an action commenced before or within 3 months after the commencement of the proceedings in which the judgment was given, the insurer has obtained a declaration that apart from any provisions contained in the policy, he is entitled to avoid it on the ground that it was obtained by the non-disclosure of a material fact or by a representation of fact which was false in a material particular; or

(b)            the insurer has avoided the policy on the ground that he was entitled to do so apart from any provision contained in it.

(4)            An insurer who has obtained a declaration under subsection (3) of this section in an action shall not by that declaration be entitled to the benefit of the provisions of that subsection in respect of any judgment obtained in any proceedings commenced before the commencement of that action, unless before or within 7 days after the commencement of that action, he has given notice thereof to the person who is the plaintiff in the action under the policy -

(a)            specifying the non-disclosure or false representation on which he proposes to rely; and

(b)            that he intends to seek a declaration.

(5)            A person to whom notice of such action is given under subsection (4) of this section may, if he desires, be made a party thereto.

(6)            In the case of claims arising from life insurance policies, it shall be sufficient for the insurer to make any payment due to the policy to the beneficiary named in the policy document.

(a)            where he accepts liability, settle the claim not later than 90 days from the date on which the claim was delivered to it; or

(b)            where it does not accept liability, deliver a statement in writing disclaiming such liability to the person making the claim or his authorized representative not later than 90 days from the date on which the person delivered his claim to the insurer.

75.-  (1)            Where any claim referred to in section 74 or 75 of this Decree arises out of an accident involving one or more vehicles, it shall not be necessary, if there is sufficient evidence of proof of loss or damage, for any claimant to report in deliver a police report thereon to the insurer; but where death of or serious bodily injury to a person is involved in any such accident, the provisions of this section shall not apply.

(2)            Without prejudice to any other mode of proof, it shall be sufficient evidence of proof of loss or damage for the purpose of this section if -

(a)            where only one person is involved in the accident, the person delivers a statement of the facts to the insurer concerned together with a statement of any eye witness to the accident, if any; or

(b)            where more than one person are involved in the accident, each person delivers a statement of the facts to the insurer or insurers concerned and the alleged facts do not differ in any material particular.

(3)            Nothing in this section shall be construed as implying that a police report is not required in the case of claims arising from car theft.

(4)            In this section and sections 74 and 75 of this Decree, "insurer" includes -

(a)            a person who is carrying insurance risks and is registered for that purpose under this Decree; and

(b)            an insurance underwriter registered or licensed under the laws and regulations of a West African country that is participating in the Motor Vehicles (Third Party Liability Insurance) (ECOWAS Brown Card Scheme) relating to motor vehicle third party liability insurance.

76.-  (1)            Subject to subsection (4) of this section, an insurance in respect of goods to be imported into Nigeria shall, as from the commencement of this Decree, be made with an insurer registered under this Decree.

(2)            Accordingly, the provisions of any law, contract or instrument shall be construed with such modifications, amendment and omissions as would bring them into conformity with the general intendment of this section.

(3)            Without prejudice to the generality of the foregoing, every letter of credit or such similar document issued by any bank or other financial institution in Nigeria in respect of such goods shall be on a carriage and freight basis only.

(5)            A person who effects any insurance otherwise than in compliance with the provisions of this section is guilty of an offence and liable on conviction to a fine of 250,000.

(6)            In addition to the fine imposed under subsection (5) of this section, the person shall pay a fine equal in amount to the total commission received by him in any such transaction.

77.-  (1)            No person shall offer, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance contract in respect of any kind of risk to lives and property in Nigeria -

(a)            any rebate of the whole or part of the commission payable under this Decree; or

(b)            any rebate of the premium shown on the policy, except such rebate as may be allowed in accordance with the published prospectus or table of the insurer.

(2)             A person who offers or receives any rebate otherwise than as provided for in subsection (1) of this section is guilty of an offence and liable on conviction to a fine of 250,000.and a continuous contravention shall constitute a ground for the cancellation of his certificate of registration under this Decree.

78.-  (1)           No insurer shall grant loans to an officer of the insurer directly or indirectly except -

(a)            loans on life policies issued to such person by the insurer; or

(b)            loans normally forming part of the terms and conditions of service of such officer.

(2)            An insurer who grants and an officer of the insurer who receives any loan otherwise than as provided for in subsection (1) of this section is guilty of an offence and liable on conviction to a fine of double the amount of such loans.

79.-  (1)            The security and development fund established under the National Insurance Commission Decree 1997 shall -

(a)            be used for the payment of any claim admitted by or allowed against a registered insurer where such claim remains unpaid by reason of insolvency or cancellation of the registration of the insurer; and

(b)            be used to compensate innocent individual third parties permanently disabled or killed by uninsured or unidentified drivers.

(2)            The proportion of compensation to be paid in respect of any claims, shall be determined by the Commission.

80.-  (1)            An offence under this Decree shall, subject to the rules of Court, be tried in the Federal High Court and references in this Decree to "Court" or "the Court" shall be construed accordingly.

(2)            Prosecution for offences under this Decree shall be instituted before the Court in the name of the Federal Republic of Nigeria by the Attorney-General of the Federation or such officer in the Federal Ministry of Justice as he may authorise so to do, and in addition thereto, he may -

(a)            after consultation with the Attorney-General of any State in the Federation, authorise the Attorney-General or any officer in the Ministry of Justice of that State; or

(b)            if a Court so directs or if the Commission so requests, authorise any other legal practitioner in Nigeria, to undertake any such prosecution directly or assist therein.

(3)            The question whether any or what authority has been given in pursuance of subsection (2) of this section shall not be inquired into by any person other than the Attorney-General of the Federation.

(4)            A person accused of an offence under this Decree shall be entitled to defend himself in person or by a person of his own choice who is a legal practitioner resident in Nigeria.

81.-  (1)           If a person required to furnish returns or information to the Commission pursuant to this Decree fails to furnish such returns or information he is guilty of an offence and liable on conviction to a fine of 50,000 or to imprisonment for a term of 6 months or to both such fine and imprisonment.

(2)            If a person in purported compliance with a requirement to furnish returns or information as specified in subsection (1) of this section, knowingly or recklessly -

(a)            makes a statement in the returns; or

(b)            gives information which is false in any material particular,

83.-  (1)           An insurer who distributes dividends otherwise than in compliance with subsections (7) and (9) of section 27 of this Decree is guilty of an offence and liable on conviction to a fine of 250,000.

(2)            An insurer who encumbers or disposes of investment or does any other thing whatsoever which results in diminishing the security offered by any investment made pursuant to this Decree is guilty of an offence and liable on conviction to a fine of 500,000 or to imprisonment for a term of 5 years or to both such fine and imprisonment.

84.-  (1)           A public officer is guilty of an offence if, in the discharge of his duties under this Decree, he presents to another public officer, who is to take a decision thereon or do any other act in relation thereto, information which is false in any material particular, unless he proves that such information was supplied to him by another person and that he exercised all such diligence to prevent the commission of the offence as he ought to have exercised, having regard to the nature of his functions in that capacity and in all the circumstances.

(2)             A public officer found guilty of an offence under subsection (1) of this section is guilty of an offence and liable on conviction to a fine of not less than 250,000 or more than 500,000 or to imprisonment for a term of 3 years or to both such fine and imprisonment.

85.-  (1)           Where an offence under this Decree has been committed by a body corporate or firm or other association of individuals, a person who at the time of the commission of the offence was an officer thereof or was purporting to act in such capacity is severally guilty of that offence and liable to be prosecuted against and punished for the offence in like manner as if he had himself committed the offence, unless he proves that the act or omission constituting the offence took place without his knowledge, consent or connivance.

(2)            In this section and the other provisions of this Decree, "officer" -

(a)            in relation to a body corporate, includes a director, chief executive, manager and secretary;

(b)            in relation to the firm, includes a partner and other officer thereof;

(c)            in relation to any other association of individuals, includes a person concerned in the management of the affairs of such association.

86.-  (1)            Notwithstanding any other provision of this Decree, the Commission may, in writing, suspend an insurer from writing a new insurance business for a period of not less than 12 months as it may think fit, if the insurer fails to pay any fine imposed on him for an offence under this Decree -

(a)            within 30 days from the imposition thereof; or

(b)            in the case of an appeal to a higher court where no further appeal is made, within 30 days from the confirmation of the judgment of the lower court.

(2)            If the insurer fails to pay the fine referred to in subsection (1) of this section within the period of suspension mentioned in that subsection, the Commission shall cancel the certificate of registration of the insurer.

87.-  (1)            No person other than an insurer, insurance broker, loss adjuster or other intermediary registered pursuant to this Decree or an agent so licensed shall, after the expiry of 6 months from the coming into operation of this Decree, use the word "insurer" or any derivative thereof as part of his business name or for describing the nature or object of such business.

(2)            No person other than an insurer registered pursuant to this Decree or an agent so licensed shall, after the expiry of 6 months from the coming into operation of this Decree, use the word "underwriter" or any derivative thereof as part of his business name or for describing the nature or object of such business.

(3)            A person who uses the word "insurer or underwriter" otherwise than in compliance with the provisions of subsection (1) or (2) of this section is guilty of an offence and liable on conviction to a fine of 2,500 for every day or part thereof in which the name or description is so used.

88.-  (1)            A person may, on payment to the Commission of the prescribed fee, inspect or make copies of any document or obtain certified copies of any document in the custody of the Commission under this Decree.

(2)            No fee shall be paid to the Commission for information supplied by it to the chief executive or to the address of the principal office in Nigeria of the insurer, reinsurer, insurance broker or loss adjuster.

89.-  (1)            Where an original document is produced to the Commission, it shall be accompanied by 2 copies duly certified as true copies of the document for retention by the Commission, unless the Commission dispenses with the production of the copies or any copy.

(2)            Where a copy only of a document is produced, the Commission may require production of further evidence to account for the absence of the original and if he is satisfied, 2 copies shall be prepared, and shall, when duly certified on behalf of the insurer, reinsurer, insurance broker or loss adjuster be retained by the Commission, unless the Commission dispenses with their production.

(3)            For the purposes of this section, a document shall be deemed to be duly signed or certified if it appears to be signed on behalf of the insurer, reinsurer, insurance broker or loss adjuster by the chief executive in Nigeria of the insurer, reinsurer, insurance broker or loss adjuster or is issued under the seal or, as the case may be, is signed by some person approved by the Commission.

90.-  (1)            Service of process in any legal proceeding against any insurer, reinsurer, insurance broker, or loss adjuster registered pursuant to this Decree may be effected at the principal office of the insurer, reinsurer, insurance broker, or loss adjuster in Nigeria.

(2)            In any case where the principal office of the insurer, reinsurer, insurance broker, or loss adjuster in Nigeria has ceased to exist, process in any legal proceeding against such insurer, reinsurer, insurance broker, or loss adjuster may be served at the office of the Commissioner and service on the Commissioner in any such case, shall be deemed to be service on the insurer, reinsurer, insurance broker, or loss adjuster.

92.-  (1)            The fees payable for registration as an insurer shall be such as may be prescribed, from time to time.

(2)            Where fees are to be prescribed under this Decree or are specified herein such fees shall be prescribed or, as the case may be, may be varied, from time to time, by regulations made by the Commission with the approval of the Minister.

93.-  (1)           The responsibility for insuring all properties of Government as defined in the National Insurance Corporation Act is vested in the National Insurance Corporation of Nigeria

(2)            Notwithstanding the provisions of subsection (1) of this section and subsection (2) of section 4 of the National Insurance Corporation Act, any such properties of Government may, with the approval in writing of the Head of State, Commander-in-Chief of the Armed Forces, be insured with any other insurer.

94.-  (1)            The Insurance Decree 1991 is hereby consequentially repealed.

(2)            Nothing in this Decree shall be construed so as to prohibit the continuation of an examination by the enactment hereby repealed, begun before the commencement of this Decree and subsection (1) of section 31 of the National Insurance Commission Decree 1997 shall apply accordingly.

(3)            A register kept under the enactment hereby repealed shall be deemed part of the register to be kept under the corresponding provisions of this Decree and, accordingly, any person registered or licensed under the repealed enactment shall be deemed to be registered or licensed under this Decree.

(4)            Funds and accounts constituted under this Decree shall be deemed to be in continuation of the corresponding funds and accounts constituted under the enactment hereby repealed.

(5)            Where an offence, being an offence for the continuance of which a penalty was provided, has been committed under the enactment hereby repealed, proceedings may be taken under this Decree in respect of the continuance of the offence after the commencement of this Decree, in the same manner as if the offence has been committed under the corresponding provisions of this Decree.

96.-  (1)           The Commission may, with the approval of the Minister, make regulations generally for the purposes of this Decree and, without prejudice to the generality of the foregoing, such regulations may make different provisions for different classes of insurers or insurance business.

(a)            a person who has prescribed actuarial qualifications; or

(b)            a member of a professional actuarial society or institute approved by the Commission;