Rainbow Insurance Co Ltd ("RIC") was a registered insurer under the Insurance Act 1987 until the suspension of its registration by the Financial Services Commission ("FSC") (with the support of the Minister, required under the Act) on 24 September 2007, following an investigation process which began with an inspection in August 2004. The FSC suspended RIC’s registration because it considered that RIC failed to meet various liquidity and solvency requirements under the Act. The Co-Respondent is the proposed liquidator.
RIC says that the FSC’s decision (and consequently the Minister’s decision) was unreasonable and in breach of the rules of fairness and natural justice. Its complaints include that the FSC had made up its mind in advance, failed to consider RIC’s representations, relied on incomplete information such as an inspection report containing accounting errors, and treated RIC differently from other insurance companies. It also says that the FSC failed to give reasons and failed to disclose a crucial report. The FSC denies that it acted unreasonably or in breach of the rules of fairness and natural justice and says that it gave RIC ample time to comply with its recommendations.
The Board concludes that the FSC did not act unfairly towards Rainbow in the period of over six months between 1 March 2007 and the eventual suspension of its registration on 27 September 2007.
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