(2)The Authority may, if it has reason to believe that an insurer is entering into or is likely to enter into re-insurance treaties or other re-insurance contracts which are not favourable to the insurer or are detrimental to the public interest, it may, by order, direct that the insurer shall not enter into such re-insurance treaty or other re-insurance contract unless a copy of such treaty or contract has been furnished to it in advance and the terms and conditions thereof have been approved by it and if the insurer fails to comply with such order he shall be deemed to have failed to comply with the requirements of this Act.
