BERMUDA MONETARY AUTHORITY
GUIDANCE NOTES FOR
RECLASSIFICATION IN ACCORDANCE WITH THE
INSURANCE AMENDMENT ACT 2008
These Guidance Notes have been produced with the aim of providing informal, non-
statutory guidance on the reclassification requirements and additional information for
consideration when applicable (re)insurers are determining the appropriate class for re-
The aim of these Guidance Notes is to facilitate the uniform application of the legislation
as it relates to the reclassification of all applicable class 3 insurers. All applicants should
note however, that it is the responsibility of individual businesses to ensure their
compliance with the law. The reader with specific queries may seek further advice from
the Authority, as appropriate.
2. Scope of Guidance
The Insurance Amendment Act 2008 (the “Amendment Act”) came into force on 30th
July, 2008 and created three new classes of insurance license, Class 3A, Class 3B and
Special Purpose Insurers. These Guidance Notes relate principally to the rules set down
in the Insurance Act 1978, (as amended by the Insurance Amendment Act 2008) which
facilitate the reclassification of the existing Class 3 sector. They also provide additional
information for consideration when applicable (re)insurers are determining the
appropriate class for reclassification applications.
In these Guidance Notes, the following terms are used.
"The Act" means the Insurance Act 1978 and its related regulations.
" Class 3 insurer " means the description in section 4D of the Act as amended by section
7 of the Amendment Act.
" Class 3A insurer " means the description in section 8 of the Amendment Act.
" Class 3B insurer " means the description in section 8 of the Amendment Act.
“Unrelated business”, in relation to an insurer, means insurance business consisting of
insuring the risks of