On 17 May 2023, the Honourable Justice Sir Anthony Smellie KC
held in Premier Assurance Group SPC Ltd. (in Official
Liquidation) v Providence Insurance Company I.I (for and on behalf
of Premier Assurance Segregated Portfolio Puerto Rico SAP) and
others that a transfer of insurance business made in breach of
the requirement to obtain approval from the Cayman Islands Monetary
Authority ("CIMA") pursuant to Section
31 of the Insurance Act, 2010 (the "Insurance
Act") was void ab initio and of no legal
effect. The decision is momentous as it was the first time that the
Grand Court has determined the legal effect of non-compliant
transactions under Section 31 of the Insurance Act.
Premier Assurance Group SPC Ltd. (in Official Liquidation) (the
"Company") was licensed to offer
insurance products through one if its segregated portfolios,
Premier Assurance Segregated Portfolio
("PASP"), to a global market (with the
exception of the United States, the Cayman Islands and the British
Virgin Islands) under the Insurance Act. Upon the winding up of the
Company on 19 April 2021, the Company's insurance licence was
revoked by CIMA.
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