Frequently Asked Questions
Which Act governs Credit Unions in Grenada?
Credit unions are regulated in accordance with the Cooperative Societies Act No 8/2011.
Which Act regulates International Business Companies?
International Business Companies (IBCs) are regulated in accordance with the International Companies Act CAP 152 of the 2010 Continuous Revised Edition of the Laws of Grenada.
How do you register a Pension Plan?
Trustees of a plan must apply for registration by completing and submitting the prescribed application form
Payment of the required registration fee
Submit a copy of the constitutive documents (Trust Deed and Rules of the plan)
Names and addresses of the trustees of the plan
Any further documents required by GARFIN
Can a sales representative or insurance agent be registered to sell insurance for more than one insurance company?
A sales representative and insurance agent can sell insurance for a different insurance company but are prohibited from selling similar classes of insurance. They also need to obtain a no objection letter from the respective insurance companies.
How many Credit Unions are there in Grenada?
There are ten (10) registered and functioning credit unions and one (1) cooperative league, operating in Grenada.
How many International Business Companies are registered in Grenada?
As at June 30, 2018 there are eighty-four (84) IBCs registered in Grenada of which seventy-nine (79) are in Good Standing and five (5) are not.
What is the distinction between a sales representative, a broker and an agent?
According to Section 2 (1) of the Insurance Act:
Sales Representative – means an individual who (a) is contracted by a registered insurance company or an insurance agent, to solicit applications for insurance or negotiate insurance on behalf of the registered insurance company or insurance agent, but shall not include a bona fide salaried employee of a registered insurance company or insurance agent; (b) is an employee of a financial institution that is not an insurance company, whose primary duties are clerical in nature, but who, at the request and on behalf of the financial institution, sells life insurance products and advises the purchases of such products.
Insurance Broker – means any individual who, or any entity which, for compensation as an independent contractor in any manner, solicits, negotiates or procures insurance or the renewal or continuance of insurance, on behalf of existing or prospective policyholders.
Insurance Agent – means any individual, firm, partnership or company appointed by a registered insurance company or another insurance agent, to solicit applications for insurance or negotiate insurance on its behalf, and if authorized to do so by the registered insurance company, to effectuate and countersign policies, but does not include an individual who is an employee of the registered insurance company.
How does GARFIN monitor and supervise pension plans?
- Examination of annual audited statements of the plan
- Examination of actuarial reports of the plan
- Perform onsite examinations of the plan
- Investigate complaints lodged against the plan
- Review and register all amendments of the Plan
- All winding up of plans must be approved by GARFIN
- GARFIN may require the trustee or an officer of the plan to furnish, either by statutory declaration or otherwise, any information or explanation that may be necessary, for the proper exercise and performance of the powers and duties of the Supervisor.
What insurance obligation are companies required to satisfy?
General and Long-Term Insurance companies each has respective insurance fund and solvency levels to maintain as stipulated in Sections 22 and 53 respectively of the Insurance Act of 2010. This is reviewed on a quarterly basis and all companies are required to comply.
Where can trustees invest the assets of a registered pension plan?
The trustees of a registered plan may invest the funds of the plan, only in the assets prescribed in Schedule IV of the Insurance Act listed as:
- Bonds and Debentures
- Ordinary and Preference Shares
- Real Estate
- Deposit certificates
- Unit trusts
Please see Schedule IV to identify the limitations for each respective class of investment.
How does GARFIN monitor and supervise its licensees?
- Examine company records on a quarterly and annual basis to ensure compliance with the Insurance Act and Insurance regulations
- Onsite examinations for the company
- Investigate complaints lodged against insurance companies and intermediaries
- Impose sanctions, fines/penalties or other corrective actions when in breach of the Insurance Act
- Approve and register all insurance companies
How is the registration of a pension plan cancelled?
The registration of a registered plan shall be cancelled only after the plan has been wound up
Trustees who intend to wind up a plan shall notify the Supervisor, in writing, of that intention, at least sixty (60) days before the date of the intended winding up
The trustees of a registered plan shall, within fourteen (14) days of completion of the winding up of the plan, notify the Supervisor, in writing, that the winding up has been completed.
On receiving notice, in writing, that registered plan has been wound up, the supervisor shall cancel the registration of the plan, if he is satisfied that the –
Registered plan has been wound up; and
Assets of the registered plan have been applied in accordance with the rules of the registered plan
How does one become licensed to conduct insurance business in Grenada?
An application for registration shall be made to the Supervisor on the prescribed form and shall be accompanied by evidence of payment of the fee specified and by such documents as may be prescribed or as may be required by the Insurance Act.
Who do GARFIN license and register for insurance business?
Licenses and registration are issued for the following: insurance companies; sales representatives; insurance agents; insurance brokers; and insurance adjusters.