Determined to checkmate activities of unregistered insurance brokers in the insurance industry, the National Insurance Commission (NAICOM) has released the list of 300 insurance brokers it has given approval to undertake brokerage business in the industry.
The names of the approved insurance brokers are published on the website of the commission. The commission in December 2015, had published the names of 108 insurance brokers for their failure to meet the regulatory requirements especially failure to renew their licenses.
Industry operators said that majority of the erring firms were sanctioned for violating certain provisions of the insurance Act 2003, such as late submission of their returns to the regulatory body, while some did not even submit returns for several years, non-renewal of operating licence, among other infractions.
When their names were made public, the commission said the affected insurance brokers would not be allowed to renew their operating licences, while those who are still interested to continue operating in the insurance industry would be required to apply for a fresh licence.
The commission through a circular, said an insurance broker whose licence has lapsed and wishes to re-register under the same name should submit a letter of appeal giving reasons why the last licence lapsed and payment of non-refundable fee of N250,000 for processing of the appeal. Moreover, it required the intending broker to equally submit application for re-registration, if appeal is sustained by the commission, adding that such interested broker must make payment of N250,000 application fee, submit Certified True Copy of CAC’s Form CO2 and CO7, evidence of payments of the fee and payment of all outstanding levies due before the licence lapsed.
Other requirements listed in the circular include: Nomination of qualified CEO and Executive Management for regulatory approval; submission of a management account/statement of account as at the last day of last month of the period since the last approved account and apply for NAICOM’s approval of the members of the board of directors.
The commission stated that there would be re-registration inspection of the brokerage firm to determine non-violation of the Insurance Act and payment of penalties for identified violation/non-compliance, while the interested brokers must attend and be successful at the re-registration interview. Besides, interested brokers are required to submit Professional Indemnity Cover Sworn Declaration, Tax Clearance for the expired period of licence, certificate on Oath from the external auditors and payment of licence fee of N2.250 million, after which the licence would be issued to those that fulfil all the listed requirements.
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