• CIB 10.2 CIB 10.2 Notices and run-off plans

    • CIB 10.2.1 Ceasing to effect contracts in a Class of Business

      This Rule 10.2 applies to a Captive Insurer that ceases or decides to cease to effect new Contracts of Insurance:

      (a) in a Class of Business in which the Captive Insurer has previously carried on Insurance Business; or
      (b) in respect of a Captive Cell or Long-Term Insurance Fund, in a Class of Business in which the Captive Insurer has previously carried on Insurance Business through that Captive Cell or Long-Term Insurance Fund.

    • CIB 10.2.2 Notification to the Regulator

      (1) A Captive Insurer to which this Rule 10.2 applies must, within twenty-eight days of deciding to cease to effect new Contracts of Insurance in a Class of Business, notify the Regulator of its decision, in a written notice specifying the following details:
      (a) the effective date of the decision to cease effecting Contracts of Insurance;
      (b) the Class of Business to which the decision relates; and
      (c) where relevant, Captive Cell or Long-Term Insurance Fund to which the decision relates.
      (2) A Captive Insurer which has provided a notice to the Regulator in accordance with Rule 10.2.2(1) must not effect any Contracts of Insurance in that Class of Business without the written permission of the Regulator. Where the notice referred to in Rule 10.2.2(1) relates to a Captive Cell or Long-Term Insurance Fund of the Captive Insurer, the restriction set out in this Rule applies only to that Captive Cell or Long- Term Insurance Fund.

    • CIB 10.2.3 Run-off plan — Captive Insurer decides to go into run-off

      (1) This Rule applies to:
      (a) Captive Insurers that are in run-off or that maintain Captive Cells or Long- Term Insurance Funds that are in run-off;
      (b) Captive Insurers that go into run-off or that place Captive Cells or Long-Term Insurance Funds into run-off;
      (c) Captive Insurers that make a decision to go into run-off or to place a Captive Cell or Long-Term Insurance Fund into run-off; and
      (d) Captive Insurers whose Financial Services Permission to effect Contracts of Insurance in respect of their entire Insurance Business or in respect of the entire business of a Captive Cell or Long-Term Insurance Fund is withdrawn by the Regulator.
      (2) If a Captive Insurer takes a decision to go into run-off or to place a Captive Cell or Long-Term Insurance Fund into run-off, the Captive Insurer must, at the same time as the notice referred to in Rule 10.2.2(1), provide the Regulator with a written run-off plan in respect of the Insurance Business being placed into run-off.

    • CIB 10.2.4 Run-off Plan — Regulator withdraws Captive Insurer's permission

      If the Regulator withdraws a Captive Insurer's permission to effect Contracts of Insurance in respect of the Captive Insurer's entire Insurance Business or the entire Insurance Business of a Captive Cell or Long-Term Insurance Fund, the Captive Insurer must, within twenty-eight days of the written notice of withdrawal of permission (or, if later, the period specified in that notice), provide the Regulator with a written run-off plan in respect of that Insurance Business.

    • CIB 10.2.5 Period of run-off plan

      (1) A run-off plan provided to the Regulator in accordance with this Rule must cover the run-off period until all liabilities to policyholders relating to the Insurance Business in run-off are met and must include:
      (a) an explanation of how, and to what extent, all liabilities to policyholders will be met in full as they fall due;
      (b) an explanation of how the Captive Insurer will comply with the requirements in Chapter 2 until such time as all liabilities owed to policyholders are met in full;
      (c) a description, appropriate to the size and complexity of the Captive Insurer's business, of the Captive Insurer's business strategy;
      (d) financial projections showing, in a form appropriate to the nature, size, and complexity of the Captive Insurer's operations, the forecast financial position of the Captive Insurer as at the end of each reporting period during the period to which the run-off plan relates; and
      (e) an assessment of the sensitivity of the financial position of the Captive Insurer to stress arising from realistic scenarios relevant to the circumstances of the Captive Insurer.
      (2) Where a Captive Insurer's Insurance Business in run-off relates to a Captive Cell or Long-Term Insurance Fund of that Captive Insurer, the run-off plan must deal with the matters set out in Rule 10.2.5(1) so far as they relate to that Captive Cell or Long-Term Insurance Fund.

    • CIB 10.2.6 Captive Insurers to monitor run-off plan etc

      A Captive Insurer that has provided a written run-off plan to the Regulator must monitor the matters contained in the run-off plan and must notify the Regulator promptly and in writing of any significant departure from the run-off plan.

    • CIB 10.2.7 Amended run-off plan

      Where a Captive Insurer has notified a matter to the Regulator in accordance with Rule 10.2.6, the Regulator may by notice in writing require the Captive Insurer to provide an amended run-off plan. The Captive Insurer must provide an amended run-off plan within twenty-eight days of receipt of the notice, unless the notice specifies a longer period.