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

PART 13 – TRANSFERS, MERGERS AND ACQUISITIONS84 Approval of Commission required for transfers, mergers, and acquisitions(1) No transaction to which an insurer is a party and which constitutes an agreement or ascheme by which all or any part of the business of the insurer is transferred to anotherperson, has legal effect without the approval of the Commission.(2) For the purposes of subsection (1), an arrangement entered into between two or moreinsurers, by which a liability of an insurer towards policyholders is to be substituted for aliability of another insurer towards those policyholders, whether or not:(a)(b)the insurer’s liability is expressed in or created by existing policies or by newpolicies; orthe terms of the new policies are the same as the terms of the original policies;is a scheme for the transfer of an insurance business.85 Application to Commission(1) The insurers involved in a transaction mentioned in section 84 must apply to theCommission for approval of the transaction.(2) The insurers must, at least within 14 days before making the application, cause a noticeto be published in the Gazette and in a newspaper circulating in Vanuatu setting out:(a)(b)(c)the names of the insurers involved; andthe proposed date of the transfer; andany other information the Commissioner requires.(3) The application must:(a)(b)(c)(d)set out the names and contact details of the insurers; andfor an insurer that carries on life insurance business - have with it the opinion ofthe first insurer’s actuary on the fairness of the transaction to the existingpolicyholders; andcontain the other information about the transaction the Commission requires; andbe accompanied by a copy of the notice.62