NAICOM suspends three underwriting, brokerage firms

THE National Insurance Commission (NAICOM), yesterday, announced the suspension of two underwriting and a brokerage firms from transacting insurance business for six months for violations of industry rules.The companies are Alliance and General Insurance Company Limited, A & G Life Assurance Plc and Fidelity Bond Insurance Brokers.A statement signed by the Deputy Commissioner (Technical), Ibrahim Hassan, said the three companies were suspended for six months for non-rendition of accounts, misrepresentation and non-disclosure of liabilities; non-remittance of premiums and commissions, and corporate governance abuses.The commission said: 'In the exercise of the powers conferred on it by the enabling laws states that the suspension order may further be extended at the end of six months until such a period when the commission is satisfied that the violation of the provisions of the relevant laws has been addressed and the method of transacting business is no longer hazardous to the policy-holders and potential clients.'The National Insurance Commission (NAICOM) has suspended Alliance and General Insurance Company Limited, A & G Life Assurance Plc and Fidelity Bond Insurance Brokers from transacting further insurance business for a period of six months with effect from August 6, 2012.'The suspension is as a result of the failure by the respective companies to comply with relevant provisions of the National Insurance Act 1997 and the Insurance Act 2003. Specifically, the offences of the companies include non-rendition of accounts; misrepresentation and non-disclosure of liabilities; non-remittance of premiums and commissions, and corporate governance abuses.'According to the statement, 'the commission, in the exercise of the powers conferred on it by the enabling laws also states that the suspension order may further be extended at the end of six months until such a period when it is satisfied that the violation of the provisions of the relevant laws has been addressed and the method of transacting business is no longer hazardous to the policyholders and potential clients.
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