Section 15: Requirement for carrying on business.

(1) The Council may make rules requiring registered Insurance Brokers (in this Act referred to as "Practising Insurance Brokers") and enrolled bodies corporate to ensure that
(a) their businesses have a working capital of not less than N5 million, made up of verifiable movable and immovable assets and cash in proportion as the Council may decide;
(b) they maintain a professional indemnity cover of not less than N10 million or 50 percent of their annual brokerage income for the preceding year, whichever is greater;
(c) the number of insurance companies with which they place insurance businesses and the amount of insurance business which they place with each insurance company, is such as to prevent their business from becoming unduly dependent on any particular insurance company;
(d)
they open and keep clients' accounts at banks for money received by them for or on behalf of persons with whom they do business;
(e) they keep such accounting records showing the transactions of their businesses as may be prescribed;
(f) they do not hold directly or indirectly financial interest-
(i) in excess of 10 percent in any reinsurance company; or
(ii) in a loss adjusting company in Nigeria;
(g) they pay to the appropriate insurer any premium collected by them not later than 30 days of collecting the premium.
(2) A practising Insurance Broker or an enrolled body corporate shall keep records of all insurance businesses handled by them and, for the purposes of this section, separate records shall be kept by the practising Insurance Broker or enrolled body corporate with respect to
(a) insurance business entered into with insurers registered in Nigeria; and
(b) insurance business entered into with persons outside Nigeria.
(3) A practising Insurance Broker and enrolled body corporate shall
(a) keep accounting records which shall show and explain the business transacted by the practising Insurance Broker or enrolled body corporate and disclose his or its financial position; and
(b) ensure that the accounting records kept under subsection (1) of this section gives a true and fair view of his or its business at the accounting date.
(4) A practising Insurance Broker or enrolled body corporate who contravenes the provisions of this section commits an offence and is liable on conviction to a fine of N50,000.00.