Section 42: Control of failing insurance institutions.

(1) If, after exercising any of the powers set out in section 41 of this Act, as in the opinion of the Commission may be appropriate in the circumstance the state of affairs of the insurance institution concerned does not improve significantly, the Commission may, with the approval of the Minister-
(a) assume control of the whole property and affairs of the insurance institution, and carry on the whole of its business and affairs; or
(b) assume control of such part of its property, business and affairs as the Commission considers necessary; or
(c) appoint persons to do so on behalf of the Commission.
(2) Where the Commission or an appointed person has assumed control of the business of an insurance institution in pursuance of subsection (1) of this section, the insurance institution shall submit its business to the control of the Commission and shall provide the Commission or the appointed person with such facilities as the Commission or the appointed person may require to carry on the business of the insurance institution and notwithstanding the provisions of this section, all insurance institutions shall co-operate with the Commission at all times.
(3) An insurance institution which fails to comply with the provisions of subsection (2) of this section or with any requirement of the Commission or any appointed person under subsection (1) of this section, is guilty of an offence and liable on conviction to a fine of N500,000 and, in addition, to a fine not exceeding N5,000 for each day during which the default continues.
(4) The insurance institution may however within 30 days from the date in which the Commission shall have taken over the operation of the insurance institution lodge an appeal through the Permanent Secretary to the Minister whose decision on the appeal shall be final.