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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
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Prudential — Insurance Business Module (PIN) [VER15/01-18]
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  • PIN 2.5 Insurers that undertake surety insurance business

    • PIN 2.5.1

      This section applies only to InsurersG that undertake Insurance BusinessG in Class 7(b).

      [Added] RM46/2007 (Made 5th July 2007). [VER6/07-07]

    • PIB 2.5.2

      An InsurerG that undertakes Insurance BusinessG in Class 7(b) must ensure that:

      (a) in any reporting period, the amount of its Gross Written PremiumG attributable to Class 7(b) does not exceed 5% of its total Gross Written PremiumG in all classes of non-life insurance;
      (b) the PersonG insured under any Contract of InsuranceG in Class 7(b) is:
      (i) a Body CorporateG ; or
      (ii) if not a Body CorporateG , a Financial InstitutionG ;
      (c) at the time of effecting a Contract of InsuranceG in Class 7(b), the Person insured under that contract has a rating of BBB or better; and
      (d) the maximum period of any Contract of InsuranceG in Class 7(b) does not exceed twenty years.
      [Added] RM46/2007 (Made 5th July 2007). [VER6/07-07]

    • PIN 2.5.3

      PIN Rule 4.1.4 applies in respect of determination of ratings for the purposes of PIN Rule 2.5.2(c).

      [Added] RM46/2007 (Made 5th July 2007). [VER6/07-07]

    • PIN 2.5.4

      An InsurerG that is a Protected Cell CompanyG that undertakes Insurance BusinessG in Class 7(b) must comply with PIN Rule 2.5.2 in respect of each CellG to which such business is attributable.

      [Added] RM46/2007 (Made 5th July 2007). [VER6/07-07]

    • PIN 2.5.5

      (1) An InsurerG intending to undertake Insurance BusinessG in Class 7(b) must:
      (a) notify the DFSAG in writing of its proposal to undertake such business; and
      (b) give to the DFSAG a business plan for the business intended to be undertaken.
      (2) The DFSAG may object to a proposal made by an InsurerG under (1).
      (3) The procedures in Schedule 3 to the Regulatory LawG apply to a decision of the DFSAG under (2).
      (4) If the DFSAG decides to exercise its power under (2), the Insurer may refer the matter to the FMTG for review.
      (5) An InsurerG must not effect any contract of insurance in Class 7(b) if the DFSAG has objected to a proposal it has made under (1).
      [Added] RM46/2007 (Made 5th July 2007). [VER6/07-07]
      [Amended] DFSA RM136/2014 (Made 21st August 2014). [VER14/06-14]

      • PIN 2.5.5 Guidance

        1. If all the information required is provided to the DFSAG relating to the proposal to effect Contracts of InsuranceG in Class 7(b), generally, it will take about 45 days for the DFSAG to be able to determine whether an InsurerG should be allowed to conduct this type of business. An InsurerG may commence a reference to the FMTG in relation to a decision of the DFSAG to object to a proposal.
        2. The current requirements relating to Class 7(b) do not cater to monoline specialist financial guarantee insurers. However, if such an InsurerG wishes to operate in the DIFCG , the DFSAG will consider what requirements should apply to it. In doing so, the DFSAG will consider capital adequacy and other requirements that are generally applied to such specialist InsurersG in other jurisdictions.
        [Added] RM46/2007 (Made 5th July 2007). [VER6/07-07]
        [Amended] DFSA RM136/2014 (Made 21st August 2014). [VER14/06-14]