Section 19: Separation of accounts and reserves funds.

(1) Where an insurer carries on the two classes of insurance business, all the receipts of each of those classes of insurance business shall be entered in a separate and distinct account and shall be carried to and form a separate insurance fund with the appropriate name so that in case of life insurance there shall be-
(a) the individual life insurance business fund;
(b) the group life insurance business and pension fund; and
(c) health insurance business.
(2) Each insurance fund shall represent the liabilities in respect of all contracts of insurance of that particular class and shall consist-
(a) in the case of life insurance business, the life business funds shall be a sum not less than the mathematical reserve ; and
(b) in the case of general insurance business of the provisions for unexpired risk and provisions for outstanding claims, including in the case of the latter, provisions estimated to provide for the expenses of adjustment or settlement of such claims.
(3) The insurance fund of each particular class shall-
(a) be absolutely the security of the policy holders of that class as though it belonged to an insurer carrying on other business than insurance business of that class;
(b) not be liable for any contract of the insurer for which it would not have been liable had the business of the insurer been only that of particular insurance class; and
(c) not be applied, directly or indirectly, for any purposes other than those of the class of business to which the fund is applicable.