The Domestic Insurance Act, 2005 Overview

Vocabulary flashcards covering the key terms, structural parts, and regulatory mandates outlined in The Domestic Insurance Act, 2005 of The Bahamas.

The Insurance Act, 2005

Bahamian legislation that came into force on July 2, 2009, enhancing registration requirements for domestic insurers and intermediaries, and strengthening the Insurance Commission's regulatory powers in line with IAIS and FATF standards.

Beneficiary

As defined in Part I of the Act, the person named in a long-term insurance policy to receive the insurance proceeds upon the death of the policy owner or upon the maturity of an endowment.

Part I of the Insurance Act, 2005

The preliminary section (Sections 1-3) serving as the foundation of the Act, presenting introductory notes and key definitions such as beneficiary and carrying on insurance business in The Bahamas.

Part II of the Insurance Act, 2005

The section (Sections 4-21) that mandates and establishes the Insurance Commission as a corporate body, outlining its powers, functions, reporting requirements, and financial management.

Insurance Commission

A corporate body established under Section 4(2) of the Act that possesses a common seal, power to deal with property, ability to sue and be sued, and authority to regulate and supervise the domestic insurance sector.

Part III of the Insurance Act, 2005

The section (Sections 22-108) addressing the regulation, supervision, statutory funds, corporate governance, actuarial investigations, and ongoing monitoring of insurance companies.

Section 22 of the Insurance Act, 2005

A provision in Part III specifying that only corporate bodies incorporated and registered under Bahamian law may conduct insurance business in and through The Bahamas.

Part IV of the Insurance Act, 2005

The section (Sections 109-118) providing the regulatory regime governing Associations of Underwriters, including conditions for registration, suspension, cancellation, and writing new business.

Part V of the Insurance Act, 2005

The section (Sections 119-141) governing the registration and regulation of insurance intermediaries, including individual salespersons and their sponsors.

Insurance Intermediaries

Entities regulated under Part V of the Act, including salespersons who are one of only two classes allowed to register as individuals to conduct insurance business in The Bahamas.

Part VI of the Insurance Act, 2005

The section (Sections 142-198) governing Long-Term Insurance and Life Insurers across nine distinct subject areas.

Part VII of the Insurance Act, 2005

The section (Sections 199-205) governing General Insurance business across six subject areas, including computation of reserves liability and establishment of insurance pools.

Part VIII of the Insurance Act, 2005

The Miscellaneous section (Sections 206-243) covering various specific topics not addressed in other parts, such as quarterly returns, AML/CFT returns, and the effects of suicide or capital punishment on policies.