Section 19: Requirements relating to segregated funds

(1) An insurer engaged in life insurance business shall- (a) credit to the segregated fund all monies that the insurer engaged in life insurance business receives in respect of the life insurance business to which the fund relates, including- (i) amounts credited to the segregated fund on its establishment; (ii) premiums payable under life insurance contracts referable solely to the segregated fund; (iii) in the case of a life insurance contract that is referable to the fund and to one or more other segregated funds, the proportion of the premium that, by virtue of a provision under the insurance contract, is to be credited to the fund; (iv) income from the investment, or proceeds from the sale, of assets of the fund; (v) monies paid to or by the insurer engaged in life insurance business to the credit of the fund under a judgment of a court relating to any matter concerning the business of the fund or any failure to comply with these Regulations in relation to the fund; (vi) any other monies received by the insurer engaged in life insurance business in connection with its conduct of the business of the fund; and (vii) any capital payment made by the insurer engaged in life insurance business out of its own assets; (b) include in a segregated fund all assets and investments related to the life insurance business to which the fund relates; (c) credit to a life insurance fund all income arising from the investment of assets of that fund; (d) treat as liabilities of the fund, all liabilities of the life insurer arising out of the conduct of the life insurance business to which the fund relates; (e) apply the assets of a segregated fund exclusively- (i) to meet liabilities or expenses incurred for the purposes of the business of the fund; (ii) for the making of permitted investments; or (iii) for the purposes of a permitted distribution under a life insurance contract; and (f) ensure that the profits and losses of a segregated fund are dealt with in accordance with these Regulations. (2) An insurer engaged in life insurance business shall not, without obtaining the approval of the Authority- (a) charge or mortgage any of the assets of a segregated fund; (b) transfer an asset from one segregated fund to another segregated fund; or (c) restructure or terminate any segregated fund.