ADVOKS GLOBAL · KENYA
Insurance Act
45. Establishment of statutory fund
Edition: 2023-12-11 · In force
45. Establishment of statutory fund
(1)An insurer carrying on long term insurance business in Kenya on the appointed date shall, as at the date of commencement of his financial year next after the appointed date, and every insurer commencing long term insurance business in Kenya after the appointed date shall, as at the date of commencement of that business, establish and maintain a statutory fund under an appropriate name in respect of the long term insurance business carried on by him.(2)An insurer may establish and maintain a separate statutory fund, under an appropriate name, in respect of any class or classes of his long term insurance business.(3)Where an insurer carries on long term insurance business of more than one class, the Commissioner may in writing direct the insurer—(a)to establish, maintain and appropriately name one or more separate statutory funds in respect of any class or classes of long term insurance business carried on by him;(b)to maintain an account in respect of each of those classes of long term insurance business and to carry and enter the receipts of each of those classes of business in the account maintained by him.(4)All amounts received by an insurer in respect of any class of long term insurance business, after the establishment by the insurer of a statutory fund under this section, shall be carried to that fund.(5)Where, at any time—(a)an insurer is maintaining more than one statutory fund in respect of his long term insurance business; and(b)a particular policy ceases to be included in the class of the long term insurance business of the insurer in respect of which one of the statutory funds is maintained (in this subsection referred to as "the first fund") and commences to be included in the class of the long term insurance business of the insurer in respect of which another of the statutory funds is maintained (in this subsection referred to as "the second fund"),the insurer shall forthwith transfer from the first fund to the second fund assets equal to the liability on the policy at that time as ascertained by an actuary and approved by the Commissioner.(6)The income arising from the investment of the assets of a statutory fund shall be carried to and form part of that fund.(7)The assets of each statutory fund shall be kept distinct and separate from all other assets of the insurer.(8)An insurer carrying on long term insurance business shall maintain such books of account and other records as are necessary for identifying—(a)the assets representing each statutory fund maintained by the insurer under this section;(b)the liabilities attributable to that class or, as the case may be, each of those classes of long term insurance business.