Div 7Investigations by Commissioner.

Division 7.—Investigations by Commissioner.

Commissioner may demand Information.

S. Africa, s. 28.

54. The Commissioner may demand in writing from any company information relating to any matter in connexion with its business.

Power to make Investigation.

Imp. Act 1923, s. 17. S. Africa, s 29.

55.—(1.) If it appears to the Commissioner that—

(a) a company is, or is likely to become, unable to meet its obligations;

(b) a valuation made in pursuance of Division 5 of this Part discloses that the amount of a statutory fund of a company is less than the amount of the liabilities of the company in respect of that statutory fund;

(c) a company has failed to comply with any provisions of this Act;

(d) a company has not, within a period of one month as from a date upon which the Commissioner demanded from it in writing any information which the Commissioner was entitled under this Act to demand from it, furnished that information fully and satisfactorily:

V. 4778, s. 18.

(e) the rate of expense of procuring, maintaining and administering any life insurance business of a company in relation to the income derived from premiums is unduly high;

(f) the method of apportionment of income or expenditure of a company among any classes of life insurance business or between life insurance business and any other business is inequitable; or

(g) any information in the possession of the Commissioner calls for an investigation into the whole or any part of the life insurance business of the company,

the Commissioner may serve on the company a notice in writing calling upon it to show cause, within such period, not less than fourteen days from the date of the notice, as is specified in the notice, why he should not, on the grounds so specified, investigate the whole or any part of the business of the company or appoint a person (in this Division referred to as “the Inspector”) to make such an investigation and report to the Commissioner the results of his investigation.

(2.) If the company fails, within the period specified in the notice, to show cause to the satisfaction of the Commissioner, the Commissioner may make the investigation or may cause it to be made by the Inspector.

Power to obtain information.

S. Africa, s. 29.

56.—(1.) In making an investigation under this Division, the Commissioner or the Inspector—

(a) may require the company to produce any securities, books, accounts, documents or statistics of the company for his inspection and to allow him to make such extracts from them as he deems fit;