Professional indemnity insurance
4.—(1)  For the purposes of section 17(1)(c) of the Act, an applicant shall have in force a professional indemnity insurance policy under which the limit of indemnity covered shall be —
(a)in the case of an applicant who desires to be registered as a direct general insurance broker, a general reinsurance broker or a life reinsurance broker, an amount of not less than $1 million; or
(b)in the case of an applicant who desires to be registered as a direct life insurance broker, an amount of not less than $500,000.
(2)  For the purposes of section 17(1)(c) of the Act, an applicant shall have in force a professional indemnity insurance policy under which the deductible allowed shall be not more than 20% of the applicant’s net asset value as at the end of its preceding accounting period.
(3)  An applicant who desires to be registered as an insurance broker in respect of more than one type of insurance broking business shall have in force a professional indemnity insurance policy under which the limit of indemnity covered shall be not less than the aggregate of the amounts of the limit of indemnity specified under paragraph (1) for those businesses.
(4)  An applicant who desires to be registered as an insurance broker in respect of more than one type of insurance broking business shall have in force a professional indemnity insurance policy under which the deductible allowed shall be not more than 20% of the applicant’s net asset value as at the end of its preceding accounting period.
(5)  A registered insurance broker shall have in force at all times a professional indemnity insurance policy —
(a)under which the limit of indemnity covered is of an amount not less than the minimum limit of indemnity applicable to it by virtue of paragraph (1) or (3), as the case may be; and
(b)under which the deductible allowed is of an amount not more than 20% of the registered insurance broker’s net asset value as at the end of its preceding accounting period.