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  • Chapter Six Licensing Foreign Insurance Companies

    • Article (19) Licensing Requisites

      1. Requisites for licensing a foreign insurance company to carry out insurance activity in the State through a branch or an agent are as follows:
         
        1. The company should introduce new insurance products not availed by the existing insurance companies or offer coverage already existing but needed in the State's insurance market.
           
        2. The company should carry out nontraditional insurance activity and coverage in the State as main activity besides the other fields of insurance.
           
        3. The company should realize increment in the total retention.
           
        4. The company should attain a surplus in the effective demand available in the State's insurance market for the traditional types of insurance.
           
        5. The company should be evaluated and rated by any of the international bodies engaged in rating insurance companies which in their respect the Board issued a resolution specified therein the rating degree.
           
      2. Licensing application of a branch of a foreign company shall be accompanied with the following documents duly attested and translated into Arabic:
         
        1. Copy of the license to carry out insurance operations in the State which the mother company is holding its nationality issued by a regulatory and supervisory governmental body and duly authenticated and attested indicated therein classes and types of insurance the company is licensed to undertake.
           
        2. A resolution by the administrative authority of the mother company to open the branch.
           
        3. Copies of the company's statement of accounts for the last two years duly approved by a certified auditing office.
           
        4. Copy of the mother company's profile, organization, activities and markets of its operations.
           
        5. Statement showing nature of the company relation with the branch and powers endowed therewith.
           
        6. The company's plan of work for the first three years.
           
        7. A certificate by an actuary, in case of insurance of persons and funds accumulation, displaying:
           
          Firstly:
                     		the actuary's approval of the basis of calculating the premiums.
           
          Secondly:
                     		adequacy of the technical provisions and extent of compliance with solvency margin and the minimum amount of guarantee.

           
        8. Other approvals and licenses need be obtained according to the requirements of the prevailing laws, regulations, and rules.
           
        9. Copies of the specimens of the agreements which the company will conclude with the providers of the insurance services including the insurance and reinsurance agents and brokers.
           
        10. Any other statements or documents as determined by the regulations and rules according to the Law or decided by the Board deemed necessary to consider the application.
           
      3. The provisions of Articles (12), (13), (14), (15) and (16) of the Regulation herein shall apply to licensing and registration of foreign insurance companies.