The 10th National Assembly has set out fresh conditions for insurance and reinsurance businesses in the country following the enactment of the Nigeria Insurance Industry Reform Act, 2024.
The proposed law which became an Act of parliament earlier in the week, seek to provide for a comprehensive legal and regulatory framework for insurance business in Nigeria and for related matters.
The enactment brought to end the Insurance Act, The Motor Vehicle (Third Party Insurance Act), the National Insurance Corporation of Nigeria Act and the Nigeria Reinsurance Corporation Act.
In Section 39, the proposed legislation provides that “No person shall transact business in Nigeria as an insurance broker unless he is licensed under the provision of this bill. A licence issued under this Bill shall be renewed every five years or for such longer duration as the commission may determine from time to time.”
Also, “Application for a licence as an insurance broker shall be made to the commission in the prescribed form and accompanied by the fee and such other documents as may be prescribed from time to time, by the Commission.”
The section also provides in (4) that “Where the commission is satisfied that- the applicant is either a firm registered under Part E of the Companies and Allied Matters Act No. 3 of 2020, or a partnership registered under Part C or D of Companies and Allied Matters Act No. 3 of 2020, or a limited liability company, as the case may be;
“The partner or chief executive officer of the applicant company is a qualified person with cognate experience; a member of the Institute and a member of the professional body of registered insurance brokers established by an Act of Parliament;
“That the Partner or the Chief Executive Officer of the applicant company possesses the current membership clearance certificate of the professional body of registered insurance brokers established by an Act of Parliament.”
In contrast, “Where the Commission is not satisfied as to any of the matters referred to in subsection (4) of this section, the Commission shall inform the applicant in writing of its decision rejecting the application within a period as may be specified in the Service Charter counted from the date of receipt of the application or submission of any other relevant document or evidence as may be required by the Commission.”
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