ADVOKS GLOBAL · KENYA
Insurance Act
124. Transfers of insurance businesses
Edition: 2023-12-11 · In force
124. Transfers of insurance businesses
(1)In this section —"transferee insurer" means the insurer to which an insurance business (or part of it) is transferred as referred to in subsection (2); and"transferor insurer" means the insurer or insurers that have transferred that business or part.(2)If an insurer transfers its insurance business, or any part of it, to another insurer under an arrangement in accordance with which the insurer or its creditors have claims against the other insurer, then, if the other insurer is being liquidated by the court, the court shall, subject to the provisions of this section, order the transferor insurer to be liquidated in conjunction with the other insurer.(3)The court may by the same or a subsequent order appoint the same person to be liquidator for the two insurers and make provision for such other matters as the court considers necessary, with a view to the insurers being liquidated as if they were a single insurer.(4)The commencement of the liquidation of the transferee insurer is, unless the court otherwise orders, the commencement of the liquidation of the transferor insurer.(5)In adjusting the rights and liabilities of the members of the several insurers between themselves, the court shall have regard to —(a)the constitution of the insurers; and(b)the arrangements entered into between the insurers in the same manner as the court has regard to the rights and liabilities of different classes of contributories in the case of the liquidation of a single insurer or as near as possible as the circumstances allow.(6)If the transferor insurer is not in the process of being liquidated at the same time as the transferee insurer, the court may order the liquidation of the transferor insurer only if satisfied, after hearing any objections that may made by or on behalf of that insurer to its being liquidated, that it would be just and equitable for it to be liquidated.(7)An application may be made for the liquidation of the transferor insurer in conjunction with the transferee insurer by any creditor of, or person interested in, either of the insurers.(8)If —(a)an insurer is the transferee insurer in relation to one insurer and as the transferor insurer in relation to another insurer; or(b)several insurers are transferor insurers in relation to a single transferee insurer,the court may deal with any number of those insurers together or in separate groups, as it considers most appropriate in accordance with the principles set out in this section.