Clause 10

Where the Commissioner is satisfied that the affairs of any insurer are being conducted in a manner likely to be detrimental to the public interest or the interests of the policy owners or prejudicial to the interests of the insurer, the Commissioner may issue such directions to the insurer as he considers necessary and in particular may require the insurer —

to take such action or recruit such management personnel as may be necessary to enable it to conduct its business in accordance with sound insurance principles;

to remove any of its directors or any person whom the Commissioner considers unfit to be associated with it;

to take action as to the disposition or recovery of its assets;

to take any available steps for the recovery by the insurer of sums appearing to the Commissioner to have been illegally or improperly paid;

to stop renewing and or issuing further policies of the class of business to which the direction relates; or

to make such arrangements with respect to reinsurance as the Commissioner so specifies.(2) The Commissioner may, upon representation being made to him, or on his own motion, modify or cancel any direction issued under subsection (1) of this section and, in so doing, may impose such conditions as he thinks fit.(3) Any insurer which fails to comply with any direction made under subsection (1) of this section shall be guilty of an offence under this Act and shall be liable on conviction to a fine of five thousand dollars or to imprisonment for a term of six months or to both such fine and imprisonment and to a further fine of one thousand dollars for every day during which the offence is continued after conviction.”.