NAICOM may withdrawal the registration certificate of an insurance company if these things happen.
If in any case the insurance company goes against the principle of insurance.
Commissioner of insurance reserve all the right to withdraw the certificate of such registered insurance company using the following circumstances;
(a) If the insurance company fails to set up special reserve as required by the decree.
(b) If the insurer continually fails to pay claims as required.
(c) when such insurance company is not being conducted inline or accordance with sound insurance principles.
(d) when the insurer fails to satisfy the margin of solvency as contained in section 20 of the insurance decree.
(e) if the business of the insurer has been transferred or amalgamated with the business of another insurance company.
(f) when the insurer refuses to submit to an examination of its books as also provided by the decree.
(g) if such insurance has failed to maintain adequate reinsurance arrangements and treaties in respect of the classes of insurance the insurer is authorized to transact.
(h) if the insurance company lacks the necessary expertise by virtue of a substantial reduction in the number of its qualified employee.
(I) if such insurance company fails to submit report in the prescribed form to the commissioner.
(j) if the net assets of the insurance company are below the minimum paid up capital and the capital has not been made good within the time stipulated by the director.
(K) setting up a branch office without the approval of the director.
(l) when the insurer acts in any manner without the approval of the director in case where the decree requires such approval.
(m) that the insurer has been wound-up or otherwise dissolved or has gone into liquidation.
(n) in case of a reinsurance company, has failed to comply with solvency margin requirement.
(o) if the insurance company fails to carry on insurance business of the class assigned to it for at least one year in Nigeria.
1. If the insurer by itself apply for cancellation.
2. If the judgement obtained against the insurer by a court of competent jurisdiction remains unsatisfied for 30 days and there is no appear pending against the judgement.
3. if the insurer is carrying on simultaneously with insurance business of any other business which is detrimental to the insurance business of the insurer.
When all these are committed by insurance company, such insurance can be withdrawn of its registration certificate.
Source: Principle & Practice of insurance NAICOM
By: Peter A. Irene (FCA, FIIN) NAICOM – AIM FORUM