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Bermuda Reminds Insurers Of Reclassification Requirement

Monday, September 5, 2011

Following guidance released previously, the Bermuda Monetary Authority (BMA) has reminded those companies operating as Long-Term Insurers to comply with the requirements of the Insurance Amendment (No. 3) Act of 2010 by submitting paperwork to be reclassified.

According to guidance previously released by the Authority, the Act requires that Long-Term Insurers must reapply no later than September 30, 2011 for reclassification as a Class A, Class B, Class C, Class D or Class E Long-Term Insurer.

When reapplying using the T-1 application form, companies must also submit their: original certificate of registration; most recent audited statutory financial statements; management accounts as at December 31, 2010, or more recent if available; and the applicable application fee of BMD500 (USD500) in the case of Class A and Class B and BMD1,000 in the case of Class C, D, or E entities.

Any Long-Term (Re)insurer that fails to apply for reclassification may have its registration cancelled by the Authority in accordance with Section 31(4) of the Amendment Act, the BMA has warned.