Insurance Act

156. Advance payment of premiums

Edition: 2023-12-11 · In force

156. Advance payment of premiums

(1)No insurer shall assume a risk in Kenya in respect of insurance business unless and until the premium payable thereon is received by the insurer.

(2)An intermediary shall not receive any premiums on behalf of an insurer.

(3)An intermediary who contravenes subsection (2) shall be liable to a penalty equivalent to twenty percent of the unremitted premium on each contravention, payable to the Policyholders' Compensation Fund.

(4)Any officer or director of an intermediary who contravenes subsection (2) shall be guilty of an offence, and upon conviction shall be liable to a fine not exceeding one hundred thousand shillings or to imprisonment for a term of three months, or to both.

(5)An insurer shall pay an intermediary insurance commission due within thirty days upon receipt of premium.

(6)An insurer who contravenes subsection (5) shall be liable to a penalty of five million shillings on each contravention, payable to the Policyholders' Compensation Fund.[Act No. 12 of 1994, s. 28, Act No. 8 of 1996, s. 55, Act No. 4 of 1999, s. 74, Act No. 11 of 2006, s. 17, Act 9 of 2007, s. 61, Act No. 10 of 2010, s. 60, Act No. 11 of 2019, s. 11.]

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Source: Kenya Law