Persons desiring to carry on insurance business from within the Islands may make application in writing to the Cayman Islands Monetary Authority for the grant of a Class "B" Insurer’s Licence.

• Application shall be in the form prescribed and requires, inter alia, a detailed business plan, five years financial projections, personal details and references for proposed Directors and Shareholders, and confirmation of appointment of a licensed insurance manager.
• The application must be accompanied by the prescribed fee of CI$5,000.00 (US$6,097.56).
• Any decision to refuse to grant a licence is final and conclusive and not subject to appeal or review.
• It is a condition of every licence that the licensee shall notify the Head of Insurance Supervision forthwith of any change in the information supplied in the application.
• An Unrestricted Class "B" Licence permits an exempted insurer to carry on insurance business other than domestic business from within the Islands.
• A Restricted Class "B" Licence permits an exempted insurer only to accept insurance business other than domestic business from its member or members or such other persons as may be specifically approved by the Cayman Islands Monetary Authority.
• Minimum net worth for an Unrestricted Class "B" Licence is as follows:

A company effecting general insurance business – US$120,000

A company effecting long-term business – US$240,000

A company effecting both general and long term business – US$360,000

• Minimum net worth for a Restricted Class "B" Licence is determined by the Head of Insurance Supervision after reviewing the application.
• Every holder of a current licence shall on or before the 15^th day of January each year pay to the Cayman Islands Government an annual fee of CI$5,000.00 (US$6,097.56).
• It is the duty of the Head of Insurance Supervision

1. to maintain a general review of insurance practice in the islands and to ensure that every licensee is carrying on business in a satisfactory manner and is in a sound financial position, and
2. to examine and make recommendations to the Governor with respect to applications for licences.

• Every licensed insurer shall nominate at least one person resident in the Islands approved by the Cayman Islands Monetary Authority who is authorized to accept on its behalf service of process in any legal proceedings on its behalf and any legal notices required to be served on it.
• Every insurer shall appoint an Insurance Manager resident in the Islands and maintain permanently at a designated office in the Islands full and proper records of its business activities.
• A licensed insurance manager shall use his best endeavors to carry on insurance and re-insurance business only with insurers of sound reputation. In the event that a manager feels cause for concern regarding the probity or soundness of any insurer or re-insurer with whom he is carrying on business, he shall report the same to the Head of Insurance Supervision forthwith.
• Licensed insurers may only carry on insurance business in accordance with the information given in the Business Plan included with their licence applications. Any proposed change in the nature of such business requires the prior approval of the Cayman Islands Monetary Authority. Such insurers shall furnish annually to the Authority a certificate of compliance with this provision, in the prescribed form, signed by an independent approved auditor or a licensed insurance manager.
• Every licensed insurer shall prepare annual accounts in accordance with generally accepted accounting principles, audited by an independent, local auditor.
• Every insurer who is carrying on long term business shall prepare tri-annually an actuarial valuation of its assets and liabilities, certified by an actuary.
• Every insurer carrying on both general and long-term business shall keep separate accounts in respect of the long-term business.
• A licensed Class "B" insurer may not carry on domestic business.
• Every licensed Class "B" insurer shall furnish to the Cayman Islands Monetary Authority within six months of the end of its financial year audited accounts prepared by an independent auditor and a Certificate of Compliance.
• Where the Head of Insurance Supervision is of the opinion that a licensee is carrying on business likely to be detrimental to the public interest or its policyholders, or is in contravention of this Law, he may require such licensee to immediately take steps to rectify the matter or he may suspend the licence pending a full enquiry into the licensee’s affairs. Upon receipt of the report of such an enquiry, the Governor may, if necessary, revoke a licence without compensation to the licensee.
• No company licensed under this Law is required to be licensed under the Local Companies (Control) Law or the Trade and Business Licensing Law.

Further inquiries may be directed to:

Mr. William McCullough
Head of Insurance Supervision
Cayman Islands Monetary Authority
P. O. Box 10052
Grand Cayman
Cayman Islands, BWI

Telephone: 345-949-7089
Facsimile: 345-949-2532

A copy of the Insurance Law,1979 (1995 Revision) and The Insurance (Forms) Regulations, 1980 are available at a cost of US$14.51 (cheques payable to "Cayman Islands Government") by writing to:

The Clerk of the Legislative Assembly
P. O. Box 890GT
Grand Cayman
Cayman Islands, BWI