Insurance FAQ

The Commission does not publish a list of Approved Direct Writers. Direct Writers are approved at the time of approval of new applications and when subsequent request for additions are made by a companies.

An application for a licence is considered complete only when all the required documents and supporting information are submitted to the Commission and the applicable application fees paid. Once an application is complete, it will be reviewed and sent to the Licensing Committee for consideration of approval.

PARCs are not required to hold restricted deposits. Companies licenced only under Section 4 of the Insurance Ordinance (captive and domestic Insurers) are required to hold restricted deposits.

The Commission recommends a minimum of US$5,000 Paid-up Capital for PARC’s.

PARCs are not required to hold restricted deposits. Companies licenced only under Section 4 of the Insurance Ordinance (captive and domestic Insurers) are required to hold restricted deposits.

Special Dispensation is an approval granted to licenced insurance brokers by the Commission in specific circumstances, which allows one to take out a policy or contract of domestic business with one or more unlicenced insurers.

Special Dispensation is granted in cases where the insurance cover being sought is not available locally, where the risks are too large to be covered by local market insurers or where no insurer is willing to accept the business. The following conditions must be met for Special Dispensation to be granted:

• The insurer has not been refused a licence under the Ordinance;
• The insurer must be of sound reputation;
• The proposed volume of business to be placed is inadequate to support the payment of fees of an insurer’s licence or that some good and sufficient reason exists;
• The need for cover is self-evident (in terms of additional capacity, or policy coverage or otherwise).

The Special Dispensation is usually granted for a period of one year or a blanket approval can be granted without the need to seek approval on a case by case basis for specific classes of business.

Licenced Insurers

Licenced Insurers are required to submit the following:

1. Quarterly Returns

Guidelines issued pursuant to Section 43 of the Financial Services Commission Ordinance (“FSCO”) requires licenced domestic insurance companies to file Insurance Supervisory Returns to the Commission within one month after the end of each calendar quarter. The Insurance Supervisory Returns are to be prepared in accordance with the explanatory notes contained in the Guidelines for Insurance Supervisory Returns, and using the template provided by the Commission.

These returns are unaudited, completed for domestic (TCI) insurance business only, and are described as follows:

1. Cover Page: enter the Company Name, the reporting period and the type of return being submitted.
2. The Business Revenue Account (BRA) Sheet: information entered on this page will be entered automatically in their respective cell on the Income Statement.
3. Income Statement
4. Statement of Retained Earnings
5. Liabilities, Capital and Reserves
6. Assets
7. Section 6(3) Assessment
8. Solvency Assessment

Domestic insurance companies are required to make separate filings on their local operations and on their worldwide operations while external insurance companies are required to provide information on their operations in the Turks & Caicos Islands only.

Insurers are also advised to include Notes to their Insurance Supervisory Returns disclosing the type of business written and any major financial changes for the quarter.

         2.  Annual Returns

Section 10 of the Insurance Ordinance, Regulation 14 of the Insurance Regulations, and Guidelines issued pursuant to Section 43 of the FSCO require every licenced Insurer to submit within three (3) months of the end of its financial year Annual Returns which comprise the following:

1. Consolidated Audited Financial Statements: This is the Audited Financial Statements which includes domestic (TCI) and non-domestic insurance business.
2. Audited Financial Statements for domestic TCI business only.  
3. A copy of the Auditors’ Management Letter: This should also include the company’s response to the issues raised by the external auditor.
4. Audited General Revenue Account (by lines of business) for domestic TCI business only.
5. Insurance Supervisory Returns – Annual Returns based on the figures reported in the Audited Financial Statements for TCI business only.
6. Form AS 7/04: CEO Annual Certificate.
7. Form ASS 2/99: Independent Auditor’s Assessment as to Solvency for both domestic (TCI) business and consolidated if applicable.
8. Form SAS 2/99: Solvency Assessment Schedule for both domestic (TCI) business and consolidated if applicable. Insurers are required to complete the Applicable Schedule for general only, long term only or composite business respectively.
9. ASBRC Form 2/99: Statutory Books and Records.
10. Direct Confirmation from the financial institution holding the restricted deposit of the amount of the deposit as at the financial year end, and, that the funds are held to the order of the Commission.
11. Summary of the current reinsurance arrangements for the classes of business underwritten in respect of domestic (TCI) business.
12. Copies of all current Reinsurance Treaties in respect of domestic (TCI) business.
13. Annual Compliance Report Form: To be completed in respect of domestic (TCI) business only.
14. Where an insurer has a branch or a subsidiary in the Turks and Caicos Island, written confirmation that it accepts responsibility for all contracts issued, all acts, omission, liabilities of such branch or subsidiary.
15. In accordance with Section 6(9) of the Insurance Ordinance Insurance companies carrying out long term insurance are required to prepare and submit, at least once in every three years, an Actuarial Valuation of its assets and liabilities certified by its actuary.

NB: In respect of (7) and (8) above, a solvency assessment is not required if the business is an Ordinary (TCI) Limited Company and does not carry out business in the Turks and Caicos Islands

Brokers

Section 11(2) of the Insurance Ordinance and Guidelines issued pursuant to Section 43 of the FSCO require every licenced Insurance Broker to submit to the Commission within three (3) months of the end of their financial year Annual Returns which comprise the following:

1. Audited Financial Statements
2. Form IBKR/1: Broker Annual Certificate
3. Copy of current Professional Indemnity Insurance
4. Schedule SPD/1/98: Special Dispensation Declaration Form – Brokers are required to provide a list of all the placements made with unlicensed (TCI) insurers during the year.
5. Annual Compliance Report Form

Agents

Section 11(1) of the Insurance Ordinance and Guidelines issued pursuant to Section 43 of the FSCO require every licenced Insurance Agent to submit to the Commission within three (3) months of the end each calendar year Annual Returns which comprise the following:

1. Form IA/1: Agent Annual Certificate
2. Evidence of the existence of power of attorney, agency agreement or guarantee or professional indemnity insurance.
3. Annual Compliance Report Form

Insurance Manager/ Principal Representatives

Section 11(4) of the Insurance Ordinance and Guidelines issued pursuant to Section 43 of the FSCO require every licenced Insurance Manager and Principal Insurance Representative to submit Annual Returns to the Commission by 31^st March each year which comprise the following:

1. Annual Compliance Statement: A copy of which is available on the TCIFSC website
2. Form ASBRC 2/99: Statutory Books and Records
3. Copy of current Professional Indemnity Insurance
4. Annual Compliance Report Form

Sub- Agents

Section 11(3) of the Insurance Ordinance and Guidelines issued pursuant to Section 43 of the FSCO require every licenced Sub- Agent to submit Annual Returns to the Commission by 31^st March which comprise the following:

1. Confirmation in writing that the sub-agent is acting for only one insurance agent or insurance broker
2. Name of insurance agent or insurance broker that the sub-agent is acting for
3. If the sub-agent is a company – Confirmation that the TCIFSC was notified of all changes or proposed changes in the information (including those in its Business Plan) contained in or supplied in connection with the Company’s application for its TCI Insurance License.
4. Annual Compliance Report Form

The Commission has a cadre of Insurance Analyst staff possessing a wealth of experience in regulatory insurance, business and financial management, who conducts periodic assessments and reviews of individual licencees. These assessments include detailed financial review and statistical analysis along with industry data and known market conditions. Insurance personnel further ensure that all licencees are compliant with the respective licensing requirement and insurance best practices.