Section 8: Cancellation of registration and appeal.

(1) If, in the case of a registered insurer, the Commission is satisfied that-
(a) the class of insurance business of the insurer is not being conducted in accordance with sound insurance principles;
(b) the insurer has failed to satisfy the margin of solvency as contained in section 24 of this Act;
(c) the insurer has ceased to carry on business of the class or category assigned to it for at least one year in Nigeria;
(d) the insurer has applied in writing for the cancellation of its registration as an insurer;
(e) a judgment obtained from a court of competent jurisdiction in Nigeria against the insurer remains unsatisfied for 90 days and there is no appeal pending against the judgment;
(f) the insurer is carrying on simultaneously the insurance business any other business which is detrimental to the insurance business of the insurer;
(g) subject to Part V of this Act, the insurer has transferred to or amalgamated with the business of any other insurer;
(h) the insurer has refused to submit to an examination of its books as provided for in this Act;
(i) the insurer has failed to comply with the provisions of section 26 of this Act;
(j) the insurer has failed to maintain adequate reinsurance arrangements and treaties in respect of the classes or category of insurance business the insurer is authorized to transact;
(k) subject to subsection (5) of this section, the insurer lacks the necessary expertise by virtue of a substantial reduction in the number of its qualified employees;
(l) the net asset of the insurer is below the minimum paid-up capital and the capital injections has not been made within the time stipulated by the Commission;
(m) the Commission has received and verified not less than 5 complaints of failure to pay claims promptly;
(n) the insurer has failed to setup the special reserves and provisions as prescribed under sections 20 to 22 of this Act;
(o) the insurer acts in any manner without the approval of the Commission in cases where this Act requires such approval;
(p) the insurer has been wound-up or otherwise dissolved or has gone into liquidation;
(q) the insurer, in the case of a reinsurance company has failed to satisfy the provisions of Section 23 of this Act.
(3) The commission shall give notice in writing to the insurer of the commission's intention to cancel the registration of the insurer in respect of a particular class or both classes of insurance business, as the case may be, and the provisions of section 7 of this Act shall apply to any such notice as if it were a notice to reject an application for registration.
(4) Where no appeal is lodged as provided for under section 7 of this Act, the Commission shall, with the approval of the Governing Board cancel the registration of the insurer and notice of such cancellation shall be published in the Gazette.
(5) Where the lack of necessary expertise specified in subsection (2) (d) of this section relates to a particular class of insurance business, the Commission may-
(a) suspend the insurer from carrying on the class of insurance business until the deficiency is corrected ; or
(b) cancel that class of insurance business from the number of insurance business the insurer is authorized to transact.
(6) Where a certificate of registration of an insurer is cancelled, the insurer shall forthwith discontinue acceptance of any new business-
(a) within 12 months from the date of the cancellation, in the case of the reinsurance business in accordance with the provisions of section 82 of this Act; and
(b) in all case, the Commission may act as a receiver from the date of cancellation in accordance with the provisions of this Act, may appoint any person to act on his behalf.