Section 23, The Insurance Act, 2000

(1) Every company incorporated in Sierra Leone shall before and after registration as an insurer deposit and keep deposited with the Bank of Sierra Leone an amount of fifteen million leones for each class of insurance business it seeks to transact. (2) Every company incorporated outside Sierra Leone shall before and after registration as an insurer deposit and keep deposited with the Bank of Sierra Leone an amount of thirty million leones for each class of insurance business it seeks to transact. (3) Every company seeking to transact re-insurance business shall before and after registration deposit and keep deposited with the Bank of Sierra Leone ten times the amount specified in subsections (l) and (2), as the case maybe. (4) The deposit may be made in cash or in approved securities or partly in cash and partly in approved securities, so that the sum total of the cash deposited and the face value or nominal value of the securities is not less the amount required to be deposited under this section. No. 5 Insurance Act 2000 17 (5) A deposit made in cash shall be held by the Bank of Sierra Leone to the credit of the insurer. (6) The insurer may at any time replace any securities deposited by him under this section with the Bank of Sierra Leone either by cash or other approved securities or partly by cash and partly by approved securities provided the cash and the face value of the securities are not less than the face value of the securities replaced. (7) The Bank of Sierra Leone shall, if so requested by the insurer— (a) sell any securities deposited by the insurer with the Bank under this section and hold the cash realised by such sale as deposit; or (b) invest in approved securities specified by the insurer the whole or part of a deposit held by it in cash or the whole or part of cash received by it on the sale of or the maturing of securities in which investment is so made as deposit and may charge the normal commission on such sale or investment. (8) If the cash realised by the sale of securities falls short of the face value of the securities, the insurer shall make good the deficiency by a further deposit either in cash or in approved securities within a period of two months from the date on which the securities were sold and unless he does so the insurer shall be deemed to have failed to comply with the requirements of this section. (9) If the cash realised by the sale of securities exceed the face value of the securities the Commissioner may, if satisfied that the full amount required to be deposited under this section is in deposit, direct the Bank of Sierra Leone to return the excess. (10) Any interest accruing, due and collected on securities deposited under this section shall be paid to the insurer subject only to deduction of the normal commission chargeable for realisation of interest. 18 No. 5 Insurance Act 2000 (11) If any part of a deposit made under this section is used in the discharge of any liability of the insurer, the insurer shall deposit such additional sums in cash or approved securities as will make up the amount so used; and the insurer shall be deemed to have failed to comply with the requirements of this section unless the deficiency is supplied within a period of two months from the date when the deposit or any part of it is so used for the discharge of liabilities. [Margin: Reservation of and withdrawal from deposit.]