Insurance Act 1966 · 2020 Revised Edition · Part 2 · Conduct of Insurance Business
47. Bank covenants in lieu of deposits
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If, in the case of any authorised reinsurer, a bank licensed under any written law for the time being in force relating to banking makes with the Authority an agreement in a form approved by the Authority whereby —
the bank covenants to deposit with the Authority a specified sum in cash on account of the reinsurer’s deposit under section 46(1); and
the covenant complies with any requirement the Authority sees fit to impose as to the circumstances in which that sum is to be deposited,then, for the purposes of this Act, the reinsurer is treated as having made the deposit under that section and the sum so covenanted for is recoverable even if no consideration is provided on the agreement.
Any sum deposited by a bank pursuant to an agreement made under subsection (1) is to be dealt with under or for the purposes of this Act as if it were a sum deposited by the authorised reinsurer under section 46.[34E