Section 38: Security deposit

(1) Every insurer shall hold an account maintained by the insurer with a commercial bank approved by the Authority of a sum equal to ten percent of the paid-up capital of the insurer. (2) The security deposit made under this section shall be considered part of the assets in respect of the capital of the insurer. (3) The deposits made under subsection (1) shall be invested by the insurer in Government securities or any other investment as may be approved by the Authority. (4) All income accruing from a security deposit made under this section shall be payable to the insurer making the deposit. (5) This section does not apply to a mutual insurer.