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Dubai Financial Services Authority (DFSA): Contents

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Jul 5 2007 - Aug 20 2014Aug 21 2014 onwards

PIN 3.6.1

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The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

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(1) Except as permitted in this RuleG , a DIFC Incorporated InsurerG must not effect any Direct Long-Term InsuranceG contract the terms of which include any of the following:
(a) investment components of Policy BenefitsG , that are wholly or partly guaranteed;
(b) options to receive Policy BenefitsG on expiry, maturity or surrender as annuities, where annuity rates are wholly or partly guaranteed at the inception of the contract;
(c) bonuses on participating contracts where those bonuses become vested Policy BenefitsG or guaranteed by the Insurer at a date prior to expiry, maturity or surrender; or
(d) other options or discretionary Policy BenefitsG that expose the Insurer to investment, expense or other risk that is not readily definable at the inception of the contract.
(2) An InsurerG may request the permission of the DFSAG to effect Direct Long-Term InsuranceG contracts with features of the kind referred to in (1). A request must be made in writing and must include:
(a) details of the terms of the proposed contracts;
(b) an explanation of how the InsurerG intends to price such contracts, and to value them for the purposes of its capital adequacy calculations; and
(c) an explanation of how the InsurerG intends to quantify, monitor and manage the risks to its capital adequacy represented by such features of contracts.
(3) The DFSAG may give an InsurerG permission to effect Direct Long-Term InsuranceG contracts having one or more features of the kind referred to in (1). Permission shall be given in writing and shall be subject to such terms or conditions as the DFSAG may specify in its notice giving permission. Where any terms and conditions are imposed on the InsurerG , the InsurerG shall comply with such terms and conditions.
(4) The DFSAG may on its own initiative at any time vary or revoke permission given under (3) above. Variation or revocation shall be communicated to the InsurerG in writing.
(5) The procedures in Schedule 3 to the Regulatory LawG apply to a decision of the DFSAG under this Rule not to give permission or to impose conditions or restrictions or to vary or revoke permission.
(6) If the DFSAG decides to exercise its power under this Rule not to give permission or to impose conditions or restrictions or to vary or revoke permission, the Insurer may refer the matter to the FMTG for review.
[Added] RM46/2007 (Made 5th July 2007). [VER6/07-07]
[Amended] DFSA RM136/2014 (Made 21st August 2014). [VER14/06-14]