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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Recognised Jurisdictions and Funds
Declaration Notices
Financial Markets Tribunal
Archive
Rulebook Modules
Prudential — Insurance Business Module (PIN) [VER15/01-18]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Notices

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  • PIN 3.5 Limitation on use of assets in long-term insurance fund

    • PIN 3.5.1

      Except as provided in this section, assets that are attributable to a Long-Term Insurance FundG must be applied only for the purposes of the business attributed to the Long-Term Insurance FundG .


      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]

    • PIN 3.5.2

      Assets attributable to a Long-Term Insurance FundG may not be transferred so as to be available for other purposes of the InsurerG except:

      (a) where the transfer constitutes appropriation of a surplus determined in accordance with PIN section 7.3, provided that the transfer is performed within four months of the Reference DateG of the actuarial investigation referred to in that RuleG ;
      (b) where the transfer constitutes a payment of dividend or return of capital, in accordance with Rules PIN 3.5.3 and PIN 3.5.4;
      (c) where the transfer is made in exchange for other assets at fair value;
      (d) where the transfer constitutes reimbursement of expenditure borne on behalf of the Long-Term Insurance FundG , and in respect of expenses attributable to the Long-Term Insurance FundG ; or
      (e) where the transfer constitutes reattribution of assets attributed to the Long-Term Insurance FundG in error.
      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
      [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]

    • PIN 3.5.3

      Assets attributable to a Long-Term Insurance FundG must not be distributed by way of dividend or by way of return of capital, except by an InsurerG or a CellG that is deemed to constitute a single Long-Term Insurance FundG .


      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]

    • PIN 3.5.4

      A dividend or return of capital by an InsurerG or a CellG that is deemed to constitute a single Long-Term Insurance FundG may only be made where the dividend or return of capital constitutes appropriation of a surplus determined in accordance with PIN section 7.3, and:

      (a) if the payment is made within four months of the Reference DateG of the actuarial investigation determining that surplus, the payment does not cause the total aggregate amount of the dividends or returns of capital made by the InsurerG or the CellG since that Reference DateG to exceed the amount of that surplus; or
      (b) If the payment is made more than four months after the Reference DateG of the actuarial investigation determining that surplus, the payment does not cause the total aggregate amount of the dividends or returns of capital made by the InsurerG or the CellG since that Reference DateG to exceed 50 per cent of the amount of that surplus.

      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]

    • PIN 3.5.5

      Assets attributable to a Long-Term Insurance FundG must not be lent or otherwise made available for use for any other purposes of the InsurerG or any purposes of any party RelatedG to the InsurerG .


      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]

      • PIN 3.5.5 Guidance

        PIN Rule 3.5.5 operates to prohibit, among other things, lending between Long-Term Insurance FundsG of the same InsurerG . Assets must not be organised in such a manner as to create indebtedness between Long-Term Insurance FundsG .

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

    • PIN 3.5.6

      An InsurerG may not enter into any arrangement, whether or not described as a contract of reinsurance, whereby a Long-Term Insurance FundG of the InsurerG stands in the same relation to the InsurerG as though the InsurerG were the reinsurer in a contract of reinsurance in which the Long-Term Insurance FundG is the cedant.

      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]

      • PIN 3.5.6 Guidance

        PIN Rule 3.5.6 operates to prohibit reinsurance between Long Term Insurance FundsG of the same InsurerG , as well as arrangements of the nature of internal contracts of reinsurance where the cession transaction is attributed to a Long-Term Insurance FundG but the corresponding reinsurance acceptance transaction is not.


        Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]