(1) An insurer shall not appoint a director or a principal officer without the prior written approval of the Commission.

(2) The Commission shall not grant an approval under subsection (1) unless it is satisfied that the person concerned is a qualified person to hold the proposed appointment.

(3) An approval under subsection (1) may be granted on terms and conditions the Commission considers appropriate.

(4) An insurer who contravenes subsection (1) is liable to pay to the Commission the pecuniary penalty stated in the First Schedule.