Insurance Act No.54 of 2005 - Vanuatu Financial Services ...

to comply with the Acts of that country relating to insurance.(3) If the assets an insurer holds in respect of its life or general insurance business includeshares in its holding company:(a)(b)(c)the shares are taken to be held by the insurer in a representative capacity and forthe sole benefit of the policyholders, whether the holding company is incorporatedin Vanuatu or not; andthe shares must only be held by the life or general insurer with the prior approvalof the Commission and subject to the conditions the Commission determines; andthe insurer must not vote at meetings of the holding company or at meetings ofany class of members of the holding company.36 Life insurers’ liabilitiesA life insurer’s liabilities:(a)(b)include its contingent liabilities for policy benefits that have not become claimable; andmust be based on an actuarial valuation.37 General insurer’s liabilitiesA general insurer’s liabilities include:(a)the amount the general insurer estimates will become payable for claims incurred undergeneral insurance policies that is:(i)(ii)reported but not paid, reduced by the amount which it estimates will be paid forthose claims under approved reinsurance policies; andincurred but not reported, reduced by the amount which it estimates will be paidfor those claims under approved reinsurance policies, being an amount not lessthan the amount calculated in accordance with the Regulations; and(b)(c)(d)provision for unearned premium, not less than the amount calculated in accordance withthe Regulations; anda contingency reserve; andprovision for unexpired risk.34