Elema was charged by police in the National Capital District on Wednesday with one count of official corruption and one count of abuse of office.
Police said in a statement yesterday Elema, 53, from Sivitatana village, Rigo, Central, allegedly committed the offences between November 2012 and June 2013.
Police investigations were triggered off by a complaint from a company director.
The company director said he had applied for a re-insurance brokering licence with the insurance commissioner between November 2012 and June 2013.
He had told police that Elema, as the acting insurance commissioner, did not issue a licence and instead imposed non-existent statutory provisions of the Insurance Act 1995.