Section 12: Disqualification for appointment as director, etc. 1990.No.1

(1) No insurer shall appoint or have in its employment a Director, Chief Executive, Manager or Secretary if he-
(a) is or becomes of unsound mind, or as result of ill health, is incapable of carrying out his duties;
(b) is convicted of any offence involving dishonesty or fraud;
(c) is not a fit and proper person for the position;
(d) is guilty of serious misconduct in relation to his duties;
(e) in the case of a person with professional qualification, has been disqualified or suspended from practicing his profession in Nigeria by the order of any competent authority made in respect of him personally;
(f) is a person who has been a director of or has been directly concerned with the management of an insurance or financial institution whose licence to operate is cancelled or whose business has been wound-up on grounds specified in sections 408 (d) and 409 of the Companies and Allied Matters Act 1990 ;
(g) is a person whose appointment with an insurance or a financial institution has been terminated or who has been dismissed for reason of fraud or dishonesty ; or
(h) has been convicted by a court or tribunal of an offence in the nature of criminal appropriation of funds or breach of trust or cheating;
(2) No insurer shall appoint or have in its full time employment a partner or director in a firm or insurance brokers or loss adjusting firm.
(3) An insurer who contravenes subsection (1) of this section commits an offence and is liable on convicted to a fine of N5000 for every day during which the contravention continues.