Clause 19

by deleting subsection (1) and substituting the following subsection:“(1) Every registered insurer shall satisfy —

such fund solvency requirements in respect of each insurance fund established by the insurer under this Act; and

such capital adequacy requirements,as may be prescribed or specified in directions for the purposes of this section.”;

by deleting the words “margins of solvency” in subsection (2)(a) and substituting the words “fund solvency requirements or capital adequacy requirements”;

by deleting subsection (4) and substituting the following subsections:“(4) The Authority may by notice in writing, if it considers it appropriate in the particular circumstances of a registered insurer having regard to the risks arising from the activities of the insurer and such other factors as the Authority considers relevant, direct that the insurer satisfy fund solvency requirements or capital adequacy requirements other than those that the insurer is required to maintain under this section.(5) Without prejudice to the generality of section 41, the failure of a registered insurer to comply with subsection (1) or (4) shall be sufficient cause for the Authority to be satisfied that the affairs of the insurer are being conducted in a manner likely to be detrimental to the public interest or the interests of the policy owners and to issue such directions under section 41(1) as the Authority may consider necessary.”; and

by deleting the section heading and substituting the following section heading:“Fund solvency requirements and capital adequacy requirements”.