For the purpose of applying the provisions of this Decree-Law, the following words and expressions shall bear the meanings assigned thereto respectively, unless the context requires otherwise:

An insurance is a contract whereby the Insurer undertakes to pay the Insured or the eligible Beneficiary an amount of money, an arranged revenue or any other monetary compensation in case the insured incident or risk has occurred, in return for Premiums or any other regular payments to be paid by the Insured to the Insurer.

The insurance business shall be divided into the following types:

1. Insurance of Persons and fund accumulation operations; and
2. Property and liability insurance.

The resolutions, statutes, regulations and instructions issued by the Board shall determine the insurance activities that fall under each insurance type of the above.

The Board may impose compulsory insurance against some risks under any regulations whereby the controls and conditions of insurance and other provisions related thereto are identified.

1. The CBUAE shall charge fees for supervision and control, in addition to any other chargeable fees for the services provided the CBUAE under the provisions of this Decree-Law, including the services of issuing licenses and permits.
2. The Board shall issue a resolution determining the fees referred to in Clause (1) above, and shall publish the same in the Official Gazette.

The CBUAE may establish funds with an independent legal person for the purpose of protecting policyholders, Beneficiaries and aggrieved persons. A resolution shall be issued by the Board specifying the method of forming such funds and their objectives, mechanism of finance, risks covered by them and benefits they provide when such risks occur, methods of their termination and the provisions of their liquidation.

The Board shall adopt the policies, regulations and rules necessary for regulating insurance business, pursuant to this Decree-Law, including the following:

1. The Solvency Margin and the Minimum Guarantee Fund controls according to the generally-accepted international standards in this regard;
2. Basis of calculating the Technical Provisions;
3. Reinsurance criteria and controls;
4. Basis of investing the Company's assets;
5. Determining the Company's assets that meet the accrued insuring obligations;
6. Accounting policies to be adopted by the Company and the required forms to prepare and present financial statements;
7. Basis of developing accounting books and records of the Companies, Agents, and Brokers, along with determining the data to be recorded in such books and records;
8. Records which the Company commits itself to maintain and the description of such records, as well as data and documents that must be furnished to the CBUAE;
9. Conditions, controls and ethics for practicing the insurance and reinsurance activity and the Insurance-Related Professions;
10. Anti-money laundering and combating terrorism financing and the financing of illegal organizations in insurance activities, in cooperation with the relevant authorities;
11. Insurance policy rates it deems appropriate and the technical grounds thereof;
12. Controls and conditions for licensing the Companies and the Insurance-Related Professionals;
13. Minimum capital for the Companies and the Insurance-Related Professionals;
14. Rules and controls necessary to protect clients of the Companies and Insurance-Related Professionals and provide them the appropriate Insurance Coverage;
15. Conditions, rule and controls for approving Auditors of the Companies and the Insurance-Related Professionals and their obligations;
16. Setting out and determining the Emiratization targets in the insurance sector, monitoring the compliance with such targets and imposing penalties and fines on the Companies and the Insurance-Related Professionals that do not comply with the same, and to that end, it may coordinate with the relevant authorities or may entrust them with any of such functions; provided that the Board shall set a mechanism for the retention and disposition of amounts of such fines, and the CBUAE shall submits an annual report to the Cabinet on the Emiratisation targets and the actions that have been taken to achieve such targets;
17. Regulating Takaful Insurance business, including the provisions and procedures for appointing and approving the Sharia Supervisory Committee and the conditions required to be fulfilled by its members;
18. The financial reporting system and the external audit of the Companies and the Insurance-Related Professionals;
19. Regulations, rules, standards, directives and instructions related to inspection operations and procedures of the Companies and the Insurance-Related Professionals; and
20. Regulations, rules and standards related to the competency of the Senior Employee.

1. The Governor shall issue the policies, regulations, statutes, instructions and rules approved by the Board, and shall issue the resolutions and instructions necessary for implementing the same.
2. The Governor shall be responsible for applying the provisions of this Decree-Law and the CBUAE's regulations and the Board's resolutions issued in pursuance thereof.
3. The Governor may delegate his functions set forth herein to any of his deputies, assistants or other Senior Employees of the CBUAE; provided that the delegation is in writing and for a specific period.

Any of the following Persons licensed the CBUAE may engage in insurance business in the State:

1. An Insurance Company incorporated as a public joint-stock company in the State; and
2. A branch of a foreign Insurance Company.

1. Insurance brokerage for funds or property existing in the State or for the liabilities arising therefrom may only be carried out by an Insurance Company licensed under the provisions of this Decree-Law.
2. The Company may reinsure any property inside and outside the State.
3. No Person may conclude an Insurance Policy with an Insurance Company outside the State to cover any money or property in the State or liabilities arising therein. No legal person in the State may insure its personnel in the State with an Insurance Company outside the State.
4. Notwithstanding the provisions of Clause (3) above, insurance may be made with an Insurance Company in the State in case the required Insurance Coverage is not available in the State, or Insurance Companies abstain from, or unable to provide such coverage, or for any other reasons decided the CBUAE, in accordance with the controls and conditions determined by the Board in this regard.

1. The Insurance Policy shall be drawn up in the State in Arabic, and an accurate translation into any other language may be attached therewith. In case of discrepancy in the translation of the policy, the Arabic text shall prevail.
2. The policy's clauses exempting the Insurance Company from liability shall be written in bold with a different colour, and must be approved by the Insured beforehand.
3. Insurance Policies may be electronically issued, in accordance with the terms and conditions established by virtue of a resolution by the Board.
4. Notwithstanding the provision of Clause (1) above, the Governor may exclude certain Insurance Policies from the condition of being drawn up in Arabic if so requested the CBUAE.

The CBUAE shall set the general framework for governance of the Companies, as well as the regulations and rules for organizing the work of their boards of directors. the CBUAE shall also set the conditions that must be fulfilled by board candidates and the conditions for appointing their Senior Employees; provided that the Companies whose securities are listed on financial markets of the State shall comply with the governance requirements issued by SCA.

A Person to be appointed as a board member, Director General or Authorized Manager of the Company must:

1. Have never been convicted of a felony or misdemeanor involving moral turpitude and breach of trust or of insolvency, unless rehabilitated; and
2. Have never been punished with any administrative sanction determined by a decision of the Board, on the grounds of committing a violation of any of the provisions of this Decree-Law or Federal Decree Law No. (32) of 2021, referred to hereinabove, in his capacity as a Director General or board member of a Company or beneficial owner thereof or controlling over its capital, including the liability for causing loss, bankruptcy or liquidation of the Company.

1. In order for a Senior Employee to be appointed, he/she must fulfil the same conditions set forth in Article (15) above, in addition to the fulfillment of the qualifications, efficiency and expertise requirements necessary for carrying out insurance operations. The Company shall provide the CBUAE with a detailed statement containing the academic qualifications, practical experience and documents supporting the above.
2. The Board shall issue a resolution defining the academic qualifications, the practical experience and the documents referred to in Clause (1) above.

The Company shall notify the CBUAE in case the position of the Company's board member, Director General, Senior Employee or Authorized Manager becomes vacant. The Company's board of directors or the Company, as the case may be, shall fill the vacant position within a period not exceeding (30) days from the date of being vacant, after obtaining the approval of the CBUAE.

The Company's board of directors shall provide the CBUAE with copies of the board's minutes of meetings and decisions related to the election of the Company's chairman, vice-chairman and members authorized to sign on behalf of the Company and their specimen signatures, within (7) seven days from date on which such decisions are issued.

Should the chairman and board members submit their resignations or should the vacant positions reach one quarter of the Company's board members, the Governor shall:

1. Form an interim committee comprising experienced and specialized individuals and appoint a chairman and vice-chairman thereto to assume the management of the Company;
2. Call for a general meeting within a period not exceeding (3) three months following date of forming the committee, renewable for a similar period only once, in order to elect a new board of director of the Company. The Company shall bear the committee's remunerations, as decided by the Governor.

1. The Company may publish a call to hold the general meeting in newspapers only following the approval of the CBUAE of the publishing. The Company may only include any additional items on the general meeting's agenda subject to prior approval of the CBUAE.
2. Subject to the provisions of Clause (1) above, a Company whose securities are listed on financial markets may publish an invitation to the general meeting in newspapers only following the approval of SCA.

The Company, in implementation of the instructions issued by the Board, shall maintain the following:

1. Solvency margin and the Minimum Guarantee Fund, as per the type of insurance carried out by the Company;
2. Technical Provisions estimated at the end of each fiscal year; and
3. Reserves to be maintained in the State.

The Company licensed to engage in insurance business shall appoint or approve a registered actuary, pursuant to the provisions of Article (65) hereunder, within one month from date of being granted the license, and shall so notify the CBUAE within one month from the date of appointment or approval of the Actuary.

Insurance Companies may together create one or more insurance pool(s) to provide an Insurance Coverage of any branch of insurance or any specific operation for the benefit of the pool, pursuant to the bylaw of each pool; provided that the CBUAE's prior approval is obtained.

The Insurance Company shall pay the compensation set out in the Insurance Policy to the Insured or to the Beneficiary, as the case may be, as soon as the insured incident occurs or the insured risk is realized. Whereupon, the Insurance Company shall subrogate the Insured for the indemnity it paid for damage in claims of the Insured vis-à-vis the party causing the damage for which the Insurance Company's liability has arisen.

The Insurance Company shall conclude the Insurance Policy for all motor vehicles licensed in the State when so requested by stakeholders. The Board shall set the insurance rates as commensurate with the severity of risks.

1. The Companies and the Insurance-Related Professionals shall provide any data or information requested the CBUAE about them or about any Company possessively related or associated therewith in any manner whatsoever, within the time limit set the CBUAE.
2. The Company's Board of directors shall invite the CBUAE to attend the general meeting before at least (15) fifteen days from date of its convention. the CBUAE may assign one of its employees to represent it for such purpose.
3. the CBUAE may assign one or more of its employees to verify or audit any of the Company's transactions, records or documents, within the normal business hours of the Company. The Company shall put any of the aforesaid at the disposal of the so assigned employee and shall cooperate with him to enable him to fully perform his duties.
4. CBUA may, based on the audit result, assign experts, consultants, Actuaries or Auditors to audit/check the Company's operations, evaluate its positions and submit a report thereon. The Company shall cooperate with them in a manner that enables them to fully perform their duties. The company shall bear their remunerations, as determined the CBUAE for any one of them.
5. The expert, consultant, Actuary or Auditor may not disclose to any third party whatsoever any information concluded under Clause (4) above without obtaining the CBUAE's written approval, except for the disclosure that is based on a court order.

1. The Company shall provide the CBUAE with a detailed annual report on its operations signed by the board chairman, the Authorized Manager or authorized signatories of the Company, including the annual financial statements, financial reports reflecting detailed profits and losses of the type of insurance carried out by the Company and each branch thereof and the Auditor's report, within a period not exceeding (3) three months from the end of the fiscal year. the CBUAE shall be delivered a copy of the report, at least (15) fifteen business days before inviting to the general meeting.
2. The Company shall present the financial accounts and statements referred to in Clause (1) above only after obtaining the CBUAE's approval.
3. The board chairman or Director General shall promptly notify the CBUAE if the Company is exposed to serious financial or administrative situations compromising rights of the Insured or Beneficiaries.

1. The Company shall provide the CBUAE with forms of the Insurance Policies and their approved annexes, including the general and special terms and conditions, the technical grounds of such policies and the Premiums rates annexed thereto, and shall provide the CBUAE with schedules of the redemption values of life Insurance Policies and funds accumulation operations and the premiums rates annexed thereto.
2. Where the public interest requires or in case of imperfection that may compromise the interests of Policyholders, the CBUAE may request the Company to introduce an amendment to the forms of Insurance Policies and their approved annexes, within the period determined the CBUAE for such purpose.
3. The Company shall provide the Insured and the Beneficiaries with copies of the Insurance Policies and the annexes thereof after the amendment is introduced, within the time limit set the CBUAE.

The Companies shall comply with the principles of disclosure and transparency while dealing with the Insured and the Beneficiaries and in all policies, documents, leaflets, advertisements, publicity, articles and scientific materials issued by them, which are regulated by a resolution by the Board.

The Board shall issue a list of violations committed by the Companies and the Insurance- Related Professionals, pursuant to the provisions of this Decree-Law and the fines imposed thereon.

1. A grievance committee shall be established by the CBUAE to consider grievances filed against decisions, measures and administrative sanctions issued pursuant to the provisions of this Decree-Law. The Board shall issue the necessary decisions on the formation of the committee, rules of procedure, remunerations of its members, experts to be engaged and all matters related thereto.
2. Save as regulatory and supervisory policies, resolutions, regulations, directives and instructions. The committee referred to in Clause (1) above shall decide on grievances against the CBUAE's decisions, pursuant to the provisions of this Decree-Law and the resolutions issued in pursuance thereof.
3. A grievance against a the CBUAE's decision shall be made within (20) twenty business days from the date of notification of the decision in accordance with the mechanism determined by the Board. The committee shall not accept grievances submitted after this time limit.
4. Decisions falling within the competence of the Committee, pursuant to the provisions of this Article, may not be challenged before courts before a grievance against them is filed and decided.
5. No grievance may be filed before the committee set out in Clause (1) above against decisions issued the CBUAE, pursuant to the provisions of Clause (2) of Article (41) hereunder.

1. the CBUAE may assign any of its employees or any other licensed or authorized Person to inspect the Company or any other Company owned by such Company or is affiliated thereto, in order to ensure the soundness of its financial position and its compliance with the provisions of this Decree-Law and the resolutions, regulations, statutes and instructions issued in pursuance thereof, as well as other laws and regulations in force in the State.
2. the CBUAE shall coordinate with the relevant regulatory authority in case of the inspection of Companies owned by the Insurance and Reinsurance Companies, Insurance-Related Professionals or associated Companies, which are governed by the regulatory authorities.
3. the CBUAE may, in coordination with the relevant authorities in the State, inspect premises of any Person suspected to engage in any insurance and reinsurance business or the Insurance-Related Professions. To that end, the CBUAE may obligate the suspected Person to provide all information, documents and records related thereto and to seize them.
4. The Companies and the Insurance-Related Professionals and companies owned by and affiliated to the same shall provide the inspector with whatever data, information, records, books, accounts and documents related to the subject of the inspection on the dates specified by him.
5. The inspector may collect the necessary information and clarifications from any Person with whom the Company or the owner of the Insurance-Related Profession has a relationship with regard to the subject of the inspection.
6. The inspector may summon any Person at the time and place specified by them to provide information, data, documents or records related to the inspection.
7. the CBUAE may assign one of its employees or a specialized expert to guide the Company and the Insurance-Related Profession or supervise some operations within a specific period determined the CBUAE. If the expert is from outside the CBUAE, the Company and the Insurance-Related Profession shall pay his fees determined as determined the CBUAE.
8. The Company and the Insurance-Related Profession shall bear all expenses of inspection and investigation that another person is assigned to carry out, pursuant to the provisions of Clause (1) above, if it is proved that it violates the provisions of this Decree-Law and the statutes and resolutions issued in pursuance thereof.

The Companies and Insurance-Related Professionals or any of their managers or employees may not:

1. Prevent, obstruct, or hinder any employee or any other Person assigned the CBUAE from carrying out inspection or audit under the provisions of this Decree-Law;
2. Conceal any data, records or books requested the CBUAE or whoever is assigned to carry out inspection or audit; and
3. Issue any statements or give any inaccurate or misleading data, records or books.

Every Insurance Company shall make a cash deposit in a bank operating in the State, as a security for implementing its obligations set forth in this Decree-Law, the amount of which shall be determined as follows:

1. (AED 4,000,000) four million dirhams for person and fund accumulation insurance referred to in Clause (1) of Article (4) above.
2. (AED 6,000,000) six million dirhams for property and liability insurance referred to in Clause (2) of Article (4) above.
3. By virtue of a resolution of the Board, the amount of the deposit referred to in Clauses (1) and (2) above may be increased. The deposit shall be made to the order of the Governor.

The deposit may only be disposed of for the payment of debts arising from insurance operations carried out by the Company; provided that a prior written authorization of the Governor or his representative is obtained.

If the value of the deposit diminishes below the prescribed limit if it is disposed of, the Company shall replenish the deposit amount within a period not exceeding (30) thirty days from the date of the CBUAE's request to replenish the deposit amount.

The Company that carries out the type of insurance referred to in Clause (1) of Article (4) above must keep in the State funds whose value is at least equivalent to the full amount of the mathematical reserve of contracts concluded in the State or implemented therein. The Board may reduce the percentage of reserve the Company is required to keep.

Such funds must be completely separated from the funds of other insurance operations. When calculating the aforementioned reserve, the deposit referred to in Clause (1) of Article (38) above shall be taken into account, so that whichever value is greater shall be applicable.

1. No Company may be incorporated in the State, and no branch of a foreign Insurance Company may be opened and no new branch may be added without the approval of the CBUAE.
2. No Person may engage in insurance business without having the relevant license issued the CBUAE, which may, as it deems appropriate for the need of the national economy, approve or reject the issuance of the license, and in case of rejection, the CBUAE shall be reasoned.
3. The Board shall revoke the license if it has been issued based on false information.
4. No unlicensed Company may issue the Insurance Policy. Any Insurance Policy concluded by an unlicensed Company shall be null and void, and a bona fide affected party may claim compensation.
5. The Board shall set the controls and requirements necessary for implementing the provisions of Clauses (1) and (2) above.

The Company may not reinsure with another Company unless the other Company is licensed to carry out the insurance type entrusted to reinsure it according to the regulations issued by the Board.

The fiscal year of the Company shall commence on 1st January and end on 31st December every year. However, the first fiscal year shall commence from the date of its registration in the Commercial Register and end on 31st December of the following year.

The Governor may suspend the Company from carrying out one or more types of insurance for a period not exceeding one year, while informing both the Company and the relevant authority of the suspension decision, in any of the following cases:

1. In case the Company violates the provisions of this Decree-Law or the resolutions, regulations, statutes or instructions issued thereunder;
2. In case the Company lacks of any of the conditions required to be fulfilled in the license under the provisions of this Decree-Law;
3. In case the Company fails to engage in business by carrying out any type of insurance covered by the license, or ceases to engage in such business for of one year;
4. In case the Company is unable to fulfill its financial obligations; and
5. In case the Company refrains from implementing a final court judgement related to the Insurance Policy;

The Company that has been suspended from carrying out one or more types of insurance shall implement its obligations that had been arisen before the suspension decision is issued.

1. If the Company removes, within a period not exceeding one year from the date on which the suspension decision is issued, the suspension reason, the Governor shall issue a decision approving it to continue in insurance business, and the CBUAE shall inform the relevant authority and the Company of the decision.
2. In the event that the time limit referred to in Clause (1) above expires and the Company fails to remove the suspension reason, the Board shall delicense the type of insurance subject of the suspension, and the CBUAE shall so inform the company and the relevant authorities.

If the license revocation reason is removed, the Company may, within a period not exceeding one year from the date on which the revocation decision is issued, submit an application to the CBUAE for licensing, accompanied by the documents proving the removal of the license revocation reason. The Board may issue its decision on approval or rejection, provided that the decision is reasoned, and the CBUAE shall inform the Company and the relevant authorities of the decision.

1. Where the Board rejects the relicensing application for all types of insurance, or if the Company fails to submit a relicensing application, within the time limit referred to in Article (47) above, the Company shall go into liquidation within a period not exceeding one month from the date of expiry of such period or from the date of being notified of the rejection decision. If the Company fails to go into liquidation, it shall be liquidated in accordance with the provisions of this Decree-Law.
2. The Company shall be delicensed if a liquidation decision is issued against pursuant to the provisions of this Decree-Law, a final court judgement of its liquidation is rendered or is declared bankrupt under the legislation in force in this regard.

The foreign Insurance Company's branch shall submit an irrevocable letter of bank guarantee in favor of the CBUAE, in an amount not less than (AED 100,000,000) one hundred million dirhams in case of engagement in insurance activity, and an amount not less than (AED 250,000,000) two hundred fifty million dirhams in case of engagement in reinsurance activity, in accordance with the instructions issued by the Board in this regard.

The Foreign Insurance Company's branch shall provide the CBUAE with the total final account, and shall publish it in two local daily newspapers, one of which is published in Arabic.

1. Representation offices of foreign Insurance Companies may not carry out their activities related to insurance in the State before obtaining the relevant license from the CBUAE.
2. the CBUAE shall issue a resolution regulating the functions of such offices.
3. The license shall be either accepted or rejected by virtue of a resolution of the Board, and the CBUAE shall so notify the relevant authorities.

The Companies engaged in insurance business for persons and fund accumulation operations may not distinguish between the policies issued of the same type; in terms of insurance rates, the amount of profits distributed to policyholders or other requirements, unless such distinguishment is generated from a difference in life chances for policies where the lifetime has an effect, except for:

1. Reinsurance policies;
2. Insurance Policies of amounts that enjoy certain discounts according to the price lists communicated to the CBUAE; and
3. Insurance Policies that include special conditions on the life of members of a single family or a group of individuals related by a single profession/job or any other social bond.

Based on the Company's request, the CBUAE may agree to issue policies at discounts less the normal prices if there are reasons that justify the same.

The Companies that engage in the insurance of persons and fund accumulation operations shall examine the financial position of this type and assess the value of its obligations at least once every (3) three years by an Actuary, as of the date of its engagement in business.

This assessment shall cover all insurance operations concluded by the Company inside and outside the State separately. If the activity is carried out by a branch of a foreign Company, the assessment shall be limited to the operations whose contracts were concluded in the State or carried out therein.

The assessment referred to in Article (55) above shall be made whenever the Company is desirous to examine its financial position to determine the percentages of profits to be distributed to shareholders or policyholders, or whenever it is desirous to announce this position.

the CBUAE may request that this assessment be made at any time before (3) three years; provided that a period of not less than one year has elapsed from the date of the last examination.

The financial instructions of Insurance Companies issued by the Board, pursuant to this Decree-Law, shall set the data required to be included in the Actuary's report on the result of the assessment and examination referred to in Articles (55) and (56) above.

The Company shall send to the CBUAE a copy of the Actuary's report on the result of the examination and assessment referred to in Articles (55) and (56) above, within six months from the expiry of the period for which the examination was conducted, accompanied by the following:

1. A statement of effective Insurance Policies concluded by the Company inside or outside the State on the date of conducting the examination. If the activity is carried out by a branch of a foreign Company, the statement shall be limited to the policies concluded or carried out in the State.
2. An acknowledgment by persons in charge of the Company's management that all data and information necessary to draw up a correct report have been placed at the disposal of the Actuary.

Following the expiry of the six-month period, as referred to in this Article, an additional period may be given to the Company to submit this report; provided that this period does not exceed three months.

If it becomes clear to the CBUAE that the Actuary's report does not reflect the true financial position of the Company, the CBUAE may request a reexamination at the Company's expense by an Actuary selected the CBUAE for this purpose.

1. Companies that engage in the insurance of persons and fund accumulation may not deduct, whether directly or indirectly, any part of their funds corresponding to their obligations arising from the Insurance Policies to distribute it as a profit to shareholders or Policyholders, or to pay any amount beyond their obligations under the Insurance Policies issued by the same. The distribution of profits shall be limited to the amount of money in excess, as determined by the Actuary in their report, after conducting the examination referred to in Article (57) above.
2. For the purpose of applying the provisions of this Article, the Company's funds in the State and abroad may be considered as one unit, without prejudice to the provisions of Article (23) above.

The Companies that engage in the insurance of Persons and fund accumulation may not issue savings bonds for a period exceeding (30) years. If the duration of a bond is (25) years or more, the value of its redemption after year (25) twenty fifth may not be less than the amount of the full mathematical reserve. The Premiums to which savings bond holders are committed must be of equal or eroded value.

The Company may transfer the Insurance Policies it has concluded in the State, including the rights and obligations related to any type of insurance carried out by the Company, to another Company or Companies that carries out the same type of insurance.

1. The transfer application shall be submitted to the CBUAE, accompanied by the documents related to the transfer agreement, and the transfer application shall be published in two local daily newspapers, one of which is published in Arabic, at the expense of the transfer applicant, or as per the mechanism determined the CBUAE;

   provided that the announcement shall refer to the right of policyholders, the Beneficiaries or any interested party to file any objection to the CBUAE to such transfer, within (10) business days from the date of the announcement; provided that the subject of their objection and the grounds thereof are determined.

2. the CBUAE shall issue its approval of the transfer if no interested party objects thereto within the period referred to in Clause (1) above. The decision shall be published in the Official Gazette within one month from the date of its issuance, and it may be invoked vis-a-vis the Insured, the Beneficiaries and the Company's creditors, and the funds shall be transferred to the Company to which the policies have been transferred, subject to the provisions relating to the transfer of ownership and assignment of funds; provided that the transferred funds are exempted from the registration fees under the provisions relating to the transfer of ownership and assignment of funds.
3. If an objection is submitted within the period referred to in Clause (1) above, the TIPS application shall be decided on only after an agreement is reached between the interested parties or a final judgement is rendered on such objection. However, the CBUAE may issue a decision approving the transfer; provided that a guarantee is submitted by the Company to the CBUAE equivalent to its obligations vis-a-vis the objector, including the expenses that may be incurred for retaining any of the Company's assets.

The provisions of Articles (66) and (67) above shall be applicable if any Company is desirous to cease the engagement in one or more types of insurance, or is desirous to free up its funds required to be exist in the State for such type or types, after the Company provides a proof that it has fulfilled its obligations for all policies concluded within the State or carried out therein, pertaining to such type or types regarding which it decided to cease its operations.

1. The provisions of this Decree-Law and the resolutions, regulations, statutes and instructions issued thereunder shall apply to Takaful Insurance Companies, in so far as they do not contradict the nature of its business, and they may not engage in insurance business in such a manner that violates the provisions and principles of the Islamic Sharia, which must be reflected in its memorandum of association and articles of association.
2. The Board shall issue a regulation setting out aspects of activities and the rules and standards of the Takaful Insurance Company's business in a manner that is appropriate with the nature of the license granted thereto.

Takaful Insurance Company shall establish a fund that has an independent legal personality, in accordance with the controls and procedures identified under a resolution by the Board, which shall report to the CBUAE, in which contribution amounts and their investment returns are deposited, in addition to the Takaful reinsurance contributions or the equivalent thereof and their revenues. The fund shall bear all expenses and costs of insurance operations, and shall be liable for the compensation under the provisions of Takaful Insurance Policies.

1. The Supreme Sharia Board shall set the Sharia rules, standards and principles for Takaful Insurance Companies business, and shall control and supervise of internal Sharia supervisory committees referred to in Article (72) hereunder.
2. Takaful Insurance Companies shall bear the expenses of the Higher Sharia Authority, including the allocations, remunerations and expenses of its members, pursuant to the articles of association of the Supreme Sharia Board.
3. Takaful Insurance Companies and the internal Sharia supervisory committees shall comply with fatwas and opinions issued by the Higher Sharia Authority.

1. An independent internal Sharia supervisory committee shall be formed in every Takaful Insurance Company called "the Internal Sharia Supervisory Committee", comprising experts and specialists in Islamic financial transactions jurisprudence. Such committee shall supervise and approve all business, activities, products, services, contracts, documents, and charters of the Company's business, and shall set the necessary Sharia controls for the same under rules, principles and standards set by the Supreme Sharia Authority, in order to ensure their compliance with the provisions of the Islamic Sharia. Fatwas or opinions issued by the committee shall be binding on the Company.

2. The general meeting of the Takaful Insurance Company shall be authorized to appoint members of the internal Sharia Supervisory Committee, pursuant to provisions of Decree Law No. (32) of 2021, referred to hereinabove, and the names of the members of the Internal Sharia Supervisory Committee shall be presented to the Supreme Sharia

   Board to approve the same before being presented to the general meeting and a decision is issued approving the appointment.

3. Members of the Internal Sharia Supervisory Committee may not occupy any executive position in a Takaful Insurance Company, provide it services beyond the scope of the Committee's work, act as shareholders in it or have or their relatives up to the second degree have any interests related thereto.
4. Should a dispute is raised over a Sharia opinion between members of the Internal Sharia Supervisory Committee, or there is a disagreement regarding a Sharia matter between the Internal Sharia Supervisory Committee and the Company's board of directors in question, the matter shall be referred to the Supreme Sharia Board, whose opinion shall be final in this regard.
5. An internal department shall be established in every Takaful Insurance Company for the internal Sharia supervision and to monitor the Company's compliance with fatwas and opinions of the Internal Sharia Supervisory Committee. This department shall report directly to the Company's Board of Directors, and its employees shall have no powers or executive responsibilities vis-a-vis the business, activities and contracts reviewed or supervised by them from a Sharia viewpoint.

1. The Internal Sharia Supervisory Committee shall draw up an annual report, as per the form determined by the Supreme Sharia Authority, showing whether Takaful Insurance Company's management complies with the application of the provisions of Islamic Sharia in the business and activities it engages in, products provided and contracts concluded by it, and documents used by it.
2. The Internal Sharia Supervisory Committee's report shall be submitted to the Supreme Sharia Authority for approval before being presented to the general meeting.

An Insurance Company may, whether directly or jointly with associated Persons, own shares of another Insurance Company or bonds convertible to shares only in accordance with the controls and instructions issued by the Board in this regard.

1. A Company may merge with, or acquire any other Company, regardless of its activity, and may transfer any part of its obligations to another Person only after obtaining the prior approval of the CBUAE.
2. Subject to the legislation in force in the State on merger and acquisition, the Board may issue the regulations, statutes, instructions and rules related to merger and acquisition.

1. The Board shall set a framework for restructuring and liquidating the Companies, including the controls, conditions and rules in this regard to reduce the impacts that may be caused from the imbalance in its financial position.
2. the CBUAE may request the relevant authorities in the State to temporarily impound the Company that suffers from an imbalance in its financial position and seize on its assets, property and rights of its shareholders, issue a decision requesting the competent court to liquidate or dissolve the Company in question and develop a plan to liquidate or transfer its assets, liabilities, settlements and clearances, as the CBUAE deems appropriate, and implement or supervise the implementation of the liquidation plan, take a decision on the restructuring or submit a request for a bankruptcy declaration to the competent court, pursuant to the legislation in force in this regard.
3. the CBUAE may coordinate with the relevant authorities of the State before the Board issues any decisions in accordance with the provisions of this Article, whenever it deems necessary. the CBUAE may request the competent judicial authorities to take precautionary and expeditious measures and procedures and any other measures that would protect policyholders, creditors, shareholders and their interests, or as dictated by the public interest.

1. For the purposes of restructuring the Company pursuant to the provisions of Paragraph (m), Clause (2) of Article (33) above, the Board may issue a decision dissolving the Company's board of directors and forming a neutral committee to restructure the company in accordance with Paragraph (d), Clause (2) of Article (33) above. The committee shall submit a monthly report, or whenever so requested, to the CBUAE on the progress of the restructuring procedures.
2. For such purpose, the restructuring includes managing the Company and organizing its distressed financial affairs by negotiating with all its creditors for determining the Company's debts and how to be repaid by adopting a plan for the restructuring.
3. The committee referred to in Clause (1) above shall publish an announcement in The Official Gazette for (3) three consecutive business days in two local daily newspapers, one of them is published in Arabic, at the expense of the Company, which shall include an invitation to all creditors to submit statements of the amount of their debts, supported by documents, within a period not exceeding (30) thirty days from the date of publishing the last announcement. No statements submitted by any creditor may be accepted following the lapse of such period.

1. The committee referred to in Clause (1) of Article (78) above shall draw up its report on the restructuring plan within a period not exceeding (15) fifteen days from the date of consolidation of debts and invite creditors to approve the plan under an announcement to be published in two local daily newspapers, one of which is published in Arabic, provided that the plan is approved by creditors representing at least three-fourths of non-preferred debts and unsecured by a pledge.
2. In the event that the creditors approve the plan, in accordance with the provisions of Article (a) of this Article, the committee shall submit this plan to the CBUAE and then be submitted to the CBUAE and then to the Board for approval.
3. In the event that creditors reject the plan prepared in accordance with the provisions of Clause (1) above, the Committee shall submit a report on the same to the CBUAE, which shall submit it along with its recommendations to the Board.
4. The Board may take the appropriate decision on the plan submitted in accordance with the provisions of Clause (1) above. In the event that the Board approves the plan, the restructuring procedures shall be proceeded with, and in case of rejection, the Board decides to take the appropriate action, pursuant to the provisions of Clause (2) of Article (33) of this Decree-Law.
5. After completing the restructuring, a new Board of Directors of the company will be elected, pursuant to the provisions of the legislation in force in the State.

If the Board finds out that the Company's positions are distressed, despite the application of the restructuring plan or the futility of this plan, it may decide to discontinue the progress of the restructuring procedures and take the appropriate action, in accordance with the provisions of Clause (2) of Article (33) above.

1. Notwithstanding the provisions of Federal Decree-Law No. (32) of 2021, referred to hereinabove, the provisions contained in this Decree-Law and the regulations and resolutions issued thereunder shall apply to the Company's liquidation. The liquidation shall be carried out by one or more liquidators appointed by the general meeting under a special decision. If the liquidation is based on a court judgment, the court shall indicate the method of liquidation and appointment the liquidator. The liquidator's appointment decision shall specify his fees and powers, along with obliging him to provide a guarantee if necessary. If the liquidator's fees are not determined in the appointment decision, they shall be determined by the competent court.
2. The decision of appointing the liquidator shall be announced by registration in the Commercial Register, and such announcement shall be published in two local daily newspapers, one of which is published in Arabic, within a period not exceeding seven (7) days from the date of the announcement. Such appointment may be invoked vis-a-vis third parties only from the announcement date.
3. The authority of the Company's board of directors shall end when the Company goes into liquidation. In the course of liquidation, the Company shall retain the legal personality to the extent necessary for the liquidation proceedings. The powers of the Company's organizational units and affiliates shall be limited to the liquidation proceedings that do not fall within the powers of liquidators.

1. Any stakeholder may challenge the decision issued by the Company's general meeting on the liquidator's appointment before the competent court, within (40) forty days from the date announcing the appointment decision.
2. The challenge referred to in Clause (1) above may not discontinue the liquidation proceedings, unless otherwise decided by the court.

The liquidator shall be removed based on the appointment method, and any decision or judgment on the liquidator's appointment shall include the appointment of a replacement. The liquidator's removal shall be published in two local daily newspapers, one of which is published in Arabic. Such removal may be invoked vis-a-vis third parties only from the announcement date.

The issuance of the liquidation decision shall give rise to the following:

1. The liquidator adds the phrase "under liquidation" next to the name of the Company in all its documents and correspondence;
2. Discontinuation of any authorization or signatory power issued by any entity, and the liquidator shall be exclusively competent to grant any authorization or signatory power required by the liquidation proceedings;
3. Discontinuation of the calculation of the lapse of time that leads to the dismissal of the case with regard to any rights or claims due or existing in favor of the Company for a period of one year from the date of issuance of the liquidation decision;
4. Discontinuation of cases and proceedings brought by or against the for a period of six (6) months, unless the court decides to proceed with such cases before the expiry of the same, subject to the provisions of Clause (5) of this Article; and
5. Discontinuation of any procedural or executive transactions against the Company, unless such transactions are based on the request of a pledgee and related to the pledged property, in such case, such transactions shall be discontinued or their acceptance shall be prevented for a period of (6) six months from the date on which the liquidation decision is issued.

The liquidator may issue whatever decisions he deems appropriate and take whatever actions he deems necessary to complete the liquidation, including:

1. Managing the Company's business to the extent required by the liquidation;
2. Making a record of all the Company's assets, in agreement with the Company's board of directors, which is bound to deliver to the liquidator the Company's property, books and documents;
3. Appointing any experts and specialists to help him to complete the liquidation procedures, or appointing special committees and delegating them any of the tasks and powers vested in him; and
4. Appointing one or more lawyers to represent the Company under liquidation in any cases or proceedings related thereto.

1. All pledges, mortgages and collaterals created over any property or rights of the Company during the (3) three months preceding the date of the issuance of the liquidation decision shall be null and void. Such a period shall be one year if the pledges or collaterals are in favor of a Person who has an ownership with, or is related the Company.
2. Any decision of attachment at any property or right of the Company before the issuance of the liquidation decision shall be null, unless this decision is issued based on a pledgee's request and is related to the pledged property.

For the purposes of Articles (87) and (88) above, a person is deemed related to the Company in any of the following cases:

1. If the Person is a member of the Company's board of directors, a manager at the Company or has a joint business interest with either one; or
2. If he/she is a spouse of a member of the Company's board of directors or a manager thereat or has a joint business interest with either one.

Subject to the provisions of the legislation in force in the State, the liquidator may repay the Company's debts and may sell their property, whether movable or real property, at public auction or by any other means, unless it stipulated in his appointment document that the sale must be carried out in a specific way. However, the liquidator may sell the Company's assets as a whole only by a special decision of the general meeting.

1. Subject to the provisions relating to the Insured and the Beneficiaries of the Insurance Policies, the liquidator shall, within (30) days from the date of the issuance of the liquidation decision, publish a prominent announcement at a prominent place in two local daily newspapers, one of which is published in Arabic, to notify creditors to submit their claims against the company, whether payable or unpayable claims, within two months if they are residents in the State and three (3) months if they reside abroad.
2. The announcement shall be republished in the same manner promptly after the expiration of a period of (14) fourteen days from the date of publication of the first announcement. The statute of limitations for claims shall be calculated from the date of publication of the first announcement.
3. If the liquidator or the competent court is satisfied that there is a legitimate excuse for a creditor for his failure to submit his claim within the period referred to in Clause (1) above, such period may be extended for further (3) three months maximum.
4. The period from the issuance of the liquidation decision to the publication of the announcement referred to in Clause (1) above shall not be calculated within the period prescribed for case dismissal on any rights or claims of creditors against the Company under liquidation.

1. The liquidator shall issue his decisions on the claims and objections submitted to him, pursuant to the provisions of Article (92) above, within a period not exceeding (6) six months from the date of submission.
2. If the liquidator fails to issue his decision within the period referred to in Clause (1) above, the claims and objections shall be deemed to be rejected de jure.
3. Any stakeholder may challenge the liquidator's decision issued pursuant to the provisions of Clauses (1) and (2) above before the competent court within whose jurisdiction the Company's head office is located, within a period of (30) thirty days from the date of being notified of the decision or from the date of the expiry of the period referred to in Clause (1) above, whichever is shorter.

Notwithstanding the provisions of any other legislation, the liquidator may file a motion to the competent court to impose a precautionary attachment at any property belonging to the Company's debtors, may or take any precautionary or expeditious measures against them, pursuant to the provisions of the legislation in force, taking into account the following:

1. The liquidator shall be exempted from depositing a security such motion; and
2. The liquidator shall have issued a notice of claim to the debtor upon filing the aforementioned motion, or shall issue it within (8) eight days subsequent to the issuance of the decision. This notice shall be an alternative to the substantive action required to be filed pursuant to the provisions of the Federal Civil Procedure Law.

1. After the liquidation decision is issued, a creditor, debtor, Insured or Beneficiary may institute a case against a Company under liquidation only in accordance with the grounds and procedures referred to in this Decree-Law.
2. Subject to the provisions of Clause (1) of this Article, a Person affected by the liquidator's actions or procedures may challenge the same before the competent court within whose jurisdiction the Company's head office is located, pursuant to the provisions of the legislation in force in this regard. The court may confirm, nullify or amend such actions and procedures, and may order the liquidator to take actions he is required to take.

Debts owed by the Company under liquidation shall be paid according to the following order: 

1. Rights of employees and workers payable for the last (4) four months;
2. Liquidator's fees, expenses incurred and the loans he obtained for the purposes of completing the liquidation;
3. Rights of the Insured and the Beneficiaries of the Insurance Policies, and the liquidator shall allocate the Company's assets, which represent the technical provisions required to be retained under the provisions of this Decree-Law, to pay such obligations, and any amount collected by the Company under the reinsurance arrangements shall constitute part of the technical provisions;
4. Rights of other creditors, as per the order of priority under the provisions of the legislation in force in this regard; and
5. Shareholders' rights.

1. The liquidator shall submit to the general meeting, every (6) six months, a provisional account for the liquidation proceedings, and shall provide the information or data requested by partners on the liquidation status, and shall complete his mission within the period specified for the liquidation in his appointment decision. If no period is specified, each partner may refer the matter to the competent court to designate the liquidation period.
2. The liquidation period may be extended only by a decision of the general meeting after reviewing a report by the liquidator stating the reasons why he failed to complete the liquidation on time. If the period of liquidation is specified by the court, it may be extended only with its permission.

1. Upon the completion of liquidation, the liquidator shall submit to the general meeting a final account on the liquidation proceedings, and such proceedings shall complete upon the ratification of the final account.
2. The liquidator shall announce the completion of the liquidation by registering the same in the Commercial Register and publishing it in two local daily newspapers, one of which is issued in Arabic, and the same may be invoked vis-a-vis third parties only from the date of this announcement. Upon the completion of the liquidation, the liquidator shall submit a request for striking the Company off the Commercial Register.

1. Any notification or decision issued by the liquidator under the provisions of this Decree-Law shall be communicated to the relevant Person in person or his legal representative, or may be sent by registered mail with acknowledgment of receipt to his last address kept with the Company under liquidation.
2. Any notification sent pursuant to this Article shall be deemed to have been duly delivered to the recipient should such Person refuses to receive it.
3. If the communication is not possible, pursuant to the provisions of Clause (1) above, the liquidator shall carry out the communication through publication in two local daily newspapers, one of them is published in Arabic, for at least two times, and the relevant Person shall bear the publication expenses, and this publication shall be considered notification to him.

1. Pursuant to the provisions of this Decree-Law, a professional union shall be established called (Emirates Insurance Union), which shall have the legal personality and legal capacity necessary to carry out all actions and acts that enable it to achieve its objectives.
2. All Companies and Insurance-Related Professionals shall become a member of the Emirates Insurance Union, in accordance with the controls and procedures determined under a resolution by the Board. The Union shall establish committees for various insurance activities practiced by members.
3. the CBUAE shall supervise the business of the Emirates Insurance Union and approve its articles of association, which define its functions, responsibilities and relationship with the CBUAE, and shall establish its committees related to various insurance activities, and the provisions relating to its general meeting, formation of its board of directors and meetings of each one, fees of membership, annual subscription, rules for practicing the profession, disciplinary procedures against its members, and other provisions regulating its affairs, the Emirates Insurance Federation shall replace all the Emirates Insurance.
4. The Emirates Insurance Association, established under Federal Law No. (6) of 2007, referred to hereinabove, and all contracts, rights and obligations related to the Emirates Insurance Association shall be devolved to the Union.
5. The Emirates Insurance Association's staff shall be transferred to the Emirates Insurance Union, without prejudice to their acquired rights.
6. The legislation, policies, statutes and regulations applicable to the Emirates Insurance Association shall apply to the Emirates Insurance Union, without prejudice to the provisions of this Decree-Law, unless the superseding ones are issued.

1. Notwithstanding the provisions of any other legislation, electronic data shall be probative if it complies with the legislative controls related thereto.
2. The Companies shall keep, for the legally prescribed period, a soft copy of the original books, records, statements, documents, correspondence, telegrams, notices, and other papers related to its business, and such electronic copy shall have the probative force of the original, pursuant to the legislation governing the same.

1. Subject to the provisions of the Federal Civil Procedure Law, the CBUAE may request to intervene in any case filed before judicial authorities to which one of its parties is a Company or Insurance-Related Profession.
2. All entities in charge of implementing the provisions of this Decree-Law and other entities shall notify the CBUAE of any investigations or measures taken against any Company or Insurance-Related Profession. the CBUAE may provide to such authorities any clarifications, data or information that it may deem appropriate in this regard.

Without prejudice to any severer penalty set forth in any other law, any Person that breaches the prohibition set forth in Clauses (1), (2) and (4) of Article (41) or the provisions of Article (65) above, shall be penalized by imprisonment and/or a fine not less than (AED 1,000,000) one million dirhams.

All government agencies and Companies to which such agencies contribute and which benefit from insurance business shall submit any data or information related to insurance operations concluded by the same, as required the CBUAE within the period specified for the same.

the CBUAE may cooperate with regulatory authorities in other states to exercise its powers set forth in this Decree-Law over the Companies and the Insurance-Related Professionals abroad, in accordance with the following controls:

1. Observing the principle of reciprocity;
2. The subject of cooperation must not conflict with exigencies of the public interest and public order;
3. It must coordinate with the relevant authorities in the State; and
4. It must comply with the provisions of the legislation in force in the State.

the CBUAE shall publish the decisions related to the issuance and suspension of the license or relicense, or decisions related to the merger, ownership, restructuring, liquidation or termination of the Companies in the Official Gazette and in two local daily newspapers, one of which is published in Arabic, at the expense of the Company, and at the CBUAE's website.

the CBUAE shall publish draft regulations and rules governing the business of the Companies and Insurance-Related Companies under a notice to be served to all relevant agencies to give an opinion thereon, within the period identified the CBUAE.

1. The Board shall set the terms and conditions for citizens' and foreigners' ownership of the Company's shares and the percentages of contribution to the capital thereof.
2. The Board shall determine the terms and conditions for citizens' and foreigners' ownership and the percentages of contribution thereto.

the CBUAE's employees identified by a resolution of the Minister of Justice, in coordination with the Governor, shall have the capacity of judicial officer to detect acts committed in violation of the provisions of this Decree-Law.

Any Person that is governed by the provisions of this Decree-Law shall adjust their affairs in compliance with the provisions of this Decree-Law within a period not exceeding (6) six months from the effective date thereof, and may be extended for a similar period under a resolution of the Cabinet, at the proposal of the Board.

The provisions of Federal Decree-Law No. (32) of 2021, referred to hereinabove, shall be applicable to insurance business, in so far as they do not contradict the provisions of this Decree-Law.

1. Federal Law No. (6) of 2007, Regulating Insurance Business, referred to hereinabove, and any provisions repugnant to, or in conflict with the provisions of this Decree-Law shall hereby be repealed.
2. The regulations, resolutions and circulars issued pursuant to the provisions of Federal Law No. (6) of 2007, referred to hereinabove, shall remain effective, in so far as they do not contradict the provisions of this Decree-Law, until the superseding regulations, resolutions and circulars are issued.

This Decree-Law shall be published in the Official Gazette, and shall enter into force after (30) thirty days from the publication date.

Mohammed bin Zayed Al Nahyan

President of the United Arab Emirates

Issued by Us at the Presidential Palace

Dated: 17 th Rabi' Al-Awwal 1445 AH,

Corresponding to: 2 nd October 2023 AD

1. The provisions of the law herein shall apply to the insurance companies incorporated in the State and the foreign companies licensed to perform the activity in the State including the companies engaged in the operations of cooperative insurance and takaful insurance or the operations of reinsurance provided for in the law herein and the insurance professions related thereto.
    
2. The provisions of the law herein shall not apply to the companies operating in the free zones in the State unless specifically provided for in the law herein.

1. An insurance is a contract pursuant thereto the insurer shall be obliged to pay the insured or the beneficiary whose in his favor the insurance has been concluded a sum of money, regular proceeds or other monetary indemnity in case the insured accident or risk occurred, in return of installments or any other monetary sums paid by the insured thereto.
    
2. The insurer shall pay the indemnity provided for in the insurance contract to the insured or the beneficiary, as the case might be, as soon as the insured accident or risk occurred and thereupon the insurer shall legally subrogate the insured or the beneficiary in respect of the rights or obligations of each one of them.
    
3. The company shall be obligated to conclude insurance contracts for all the vehicles licensed to get going in the State when so required by the pertinent authorities. The executive regulation of the law herein shall determine the insurance's premium tariffs while magnitude of the risks should be taken into consideration.

In implementing the provisions of the law herein the direct insurance operations shall be divided into three types:

1. Life assurance and funds accumulation operations
2. Properties insurance
3. Life liability insurance

The executive regulation of the law herein shall determine others may be enlisted under each of the three types.

Insurance operations shall include the relevant activities of the types provided for in Article (4) of the law herein and as well shall include re-insurance, insurance agents, and actuaries, insurance brokers, loss and damage adjusters and insurance consultants' activities.

The Authority shall charge annul fees against the supervision and monitoring and any other fees proposed by the Board, provided a resolution therefor shall be issued by the Cabinet.

The Board shall issue on a recommendation by the Director General the bylaws, regulations, instructions and decisions pertinent to the insurance operations including:

1. The Solvency Margin and the Minimum Guarantee Fund, provided the same shall not be less than one third of the Solvency Margin taking the international standards into consideration,
2. The basis of calculating the Technical Provisions,
3. The Re-insurance criteria,
4. The basics of investing the Company’s assets,
5. Determining the company's assets that meet the accrued insuring obligations.
6. The accounting policies to be adopted by the company and the requirired forms to prepare reports, financial statements and presentation thereof.
7. The principles of organizing accounting books and records of each of the companies, Agents, and Brokers and determining the data to be contained in these books and records.
8. The records which the company shall be obliged to organize and maintain as well as the data and documents shall be made available to the Authority.
9. The rules of professional practice and code of ethics
10. Anti-Money laundering and combating terrorism financing in the insurance activities in collaboration with the pertinent bodies.
11. The rules governing ownership in insurance companies’ capitals, pursuant to the provisions of the Federal Law pertinent to Commercial Companies.

Article (23) bis (1)

The Authority may compel those practicing insurance activities of certain types and classes, but not others, and determine the terms, conditions and applicable tariff rates, as well as regulating the rights and obligations of the related parties.

Article (23) bis (2):

The Authority may establish funds that have independent legal personality for the purpose of protecting and compensating persons. The Board shall issue a decision to determine how to establish these funds, their objectives, funding, as well as risks covered under these funds, and benefits in case those risks have occurred

1. Insurance and re-insurance operations in the State may be carried out by any of the following entities which are licensed and registered with the Authority:
    
   1. A public stock company established in the State.
   2. A branch of a foreign insurance company
   3. An insurance agent
       
2. A. The prior approval of the Board shall be obtained before incorporating any insurance company in the State or opening a branch of a foreign insurance company or carrying out the operations of an insurance agent.
   
   B. The fiscal year of the company shall commence on the first day of January and end on the thirty first day of December each year and as for the first fiscal year it shall commence as from date of incorporation and end on the thirty first day of December of the following year.


3. Any insurance contract concluded by a company not duly registered according to the provisions of the law herein shall be deemed invalid and the affected party may claim compensation by reason of so invalidation.

1. The company may not combine both Persons and Funds Accumulation Insurance Operations and Property and Liability Insurance Operations.

2. Exception to what is stipulated in paragraph (1) of the article herein, an existing company licensed to practice the two types of insurance prior to the promulgation of this Law may combine Persons and Funds Accumulation Insurance Operations and Property and Liability Insurance Operations, provided that it will comply to do the following:

(a) Complete separation between Persons and Funds Accumulation Insurance Operations and Property and Liability Insurance Operations in terms of technical, financial, technological, administrative and legal procedures and the relevant requirements in terms of technical, administrative and financial staff, with the exception of the Director-General of the company.

(b) Preparation of all reports and financial statements required by the Law herein, the instructions and decisions of the Board on a consolidated total basis, and on the basis of the separation between Persons and Funds Accumulation Insurance Operations and Property and Liability Insurance Operations.

1. Properties or possessions in existence inside the State or liabilities resultant thereof shall not be insured with insurance companies outside the State and as well no mediation in insuring these properties, possessions or liabilities except with a company duly registered according to the provisions of the law herein.

2. The insurer may re-insure inside and outside the State.

Taking the provisions of the law herein into consideration, the company may open branches therefor in the State.

1. Insurance policies concluded in the State shall be written in Arabic and a faithful translation into another language may be attached therewith, and in case of differences over the interpretation of the policy the Arabic text shall prevail.
2. The policy's articles exempting the company from the liability shall be written in bold letters and different colour and must be acknowledged by the insured.
3. Insurance policies may be issued electronically, in accordance with the circumstances and conditions established by a decision by the Board.
4. Exception to paragraph (1) of the article herein, the Director-General may exclude certain insurance policies from the condition of writing them in the Arabic language.

The company shall be maintain the number of UAE nationals working therewith as resolved by the Cabinet.

No one shall be a member of the company's Board of Directors, a general manager or an authorized manager therein should he ever been:

1. Convicted of a crime or a felony of dishonor, distrust or public moral or pronounced bankrupt and never been rehabilitated.

2. Liable according to the Board's discretion for grief violations of any of the provisions of the law herein or of the companies' law in his capacity as general manager or board member of one of the companies including the liability of causing the company to go for compulsory liquidation.

1. The chairman and the members of the board of directors of the company, its general manager and the authorized manager or whosoever acting on his behalf or any of the company's managers or a senior officer shall not:

1. Participate in managing other competing insurance company or a similar company thereto,
2. Compete the company's operations or do any actions or an activity that conflicts with the company's interest,
3. Carry out the operations of an insurance agent or a broker,
4. Receive a commission for any of the insurance operations.

2. Whosoever be in charge of the management of the company or any employee therewith shall not represent any of the shareholders of this company.

Efficiency and experience in insurance operations shall be prerequisites have to be fulfilled by any general manger or authorized manager and the senior officers of the company. The company shall provide the Authority with detailed description thereof implying qualifications and experience of each one as specified in the executive regulations of the law herein.

1. The company shall advise the authority of the names of the members of its board of directors, general manager or the authorized manager or any of the senior staff and whether the position of any one of them vacated. The company shall fill the vacancy within sixty days as from date of vacating the same and notify the Director General of the Authority as so.

2. The company's Board of Directors shall provide the Authority with copies of the minutes of the Board's meetings and its decisions related to the elections of the company's chairman, his deputy, and the board's members authorized to sign on behalf of the company and their specimen signatures within seven days as from date of issuing these decisions.

3. Should the chairman and the members of the board of directors lodged their resignations or the Board lost its quorum the board of directors shall form a provisional committee of experienced and specialized individuals, appoint a chairman thereto, a deputy therefor out of its members to take charge of the company's management, invite the general assembly to convene within a period not exceeding three months as from date of the formation of the committee which shall be subject to renewal for a similar period once only by decision of the Board - in order to elect the company's new board of directors. The company shall bear remunerations of the committee as decided by the Board.

The company in implementation of the instructions issued by the Board shall maintain the following:

1. Solvency margin and the minimum guarantee fund associated with the type of insurance engaged therein.
2. Technical provisions as estimated at the end of each fiscal year.
3. The reserves need be maintained inside the State.

The company licensed to carry out insurance operations after the implementation of the provisions of the Law herein shall appoint or approve a registered actuary within a month as from date of granting the license thereto, provided reporting the same to the Director General within a month as from date of appointing or approving the actuary. The companies licensed prior to implementing the provisions of the law herein shall adjust their situation in accordance with the provisions of the Article herein within three months as from date of implementing the provisions of the law herein.

1. The company shall provide any data or information requested by the Director General on the company per se or on any company possessively related or associated therewith during the period as determined by the Director General, in addition to any data or information submitted by the company to any other monitoring body and any data or information received by the company from these bodies on time of occurrence.

2. The company's Board of directors shall invite the Director General to attend the general assembly meetings before at least fifteen days as from date of its convention. The Director General may depute whosoever represents him out of the Authority's employees in this respect.

3. The Director General may assign one or more of the employees of the Authority to ascertain or verify at suitable times any of the company's transactions, records, or documents. The company shall put any of the aforesaid at the disposal of the so assigned employee and cooperate with him to enable him to fully perform his duties.

4. The Director General on basis of the verification performed pursuant to the provisions of Para (3) of the Article herein shall appoint experts, consultants, actuaries or accounts auditors to check the company operations, evaluate the situations and file a report thereon. The company shall cooperate with them in a manner that enables them to fully perform their duties. The company shall bear their remunerations as determined by the Director General for each one of them.

5. The expert, consultants, actuary or the accounts auditor shall not disclose to any body whatsoever any information on the results arrived at according to Para (4) of the Article herein only after obtaining the written approval of the Board.

1. The company shall be obligated to provide the Authority with a detailed report on its operations signed by the chairman of its board of directors, the authorized manager or those authorized to sign on behalf of the company containing company's final annual accounts and all the related detailed information annexed thereto including the annual budget, detailed profit and loss accounts of the two types of insurance in which the company is engaged and of each branch thereform plus the accounts auditor's report within a period not to exceed four months as from the end of the fiscal year. The report shall reach the Authority within at least thirty days period prior to inviting the company's general assembly to convene.

2. Should the accounts and data provided for in Para (1) of the Article herein proved to be not in agreement with the provisions of the law, and the regulations, rule, directives and decisions issued pursuant thereof the director general shall request the company's board of directors make them corrections in order to obtain the approval thereto before presenting them to the general assembly. The company's board of directors shall not present the same before obtaining such an approval.

3. Should the company faces unfavorable financial or administrative situations or inflicted grief losses affecting the rights of the insured or the beneficiaries, the company chairman of the board of directors or its general manager shall forthwith inform the director general of the Authority as so.

1. A.The company shall provide the authority with the insurance policies' forms and endorsements they have approved for its operations including the general and special terms and conditions and the technical basis of these policies and the premiums rates annexed thereto and as well shall provide the director general with schedules of the redemption values of the life assurance policies and funds accumulation operations and the premiums rates annexed thereto.
   
   B. The director general should the public interest require or in case of existence of a genuine imperfection may demand insertion of amendments into these forms within the period he determines for the purpose. The company may oppose the amendment and in case no agreement reached the matter shall be referred to the Board to settle it.
    
2. The company shall provide the insured and the beneficiaries with copies of the insurance policies and the related details.

The insurance and re-insurance companies registered with the Authority shall observe the doctrine of disclosure and transparency in their dealing with their patrons and in respect of all the documents, papers, bulletins, advertisements, propaganda and articles and scientific materials of their issue. The Board shall issue a resolution in respect of the matters must be observed in implementation the renderings of the Article herein.

The accounts auditor shall forthwith file a report to the Authority with copy thereof to the company's chairman of the board of directors in any of the following cases:

A. Should he became evident that the financial situation of the company does not enable it to fulfill its obligations towards the insured or hinders its capacity to meet the financial requirements provided for in the law herein and the regulations, rules, directives and decisions issued pursuant thereto relevant to the financial situation of the company.

B. Should he became evident that there is grief imperfection in the company's performance of its financial procedures including the process of entering the statements into its accounting records.

C. Should he refused or have reservations in respect of any certificate issued by the company related to its income or its financial statements.

D. Should he decided to resign or refused to be reappointment with the company for unusual reasons.

2. The Director General may ask the accounts auditor to furnish him directly within a specific period with the information needed to monitor the company's operations.

3. The general assembly of the company, in case the accounts auditor recommended that the financial statements filed thereto by the board of directors not to be approved, may resolve either to:

1. return the financial statements to the board of directors and demand the budget and profit and loss account be corrected according to the auditor's remarks and deem them approved following the correction, or
    
2. refer the matter to the director general to appoint an expertise committee of account auditors, determine their remunerations to be borne by the company, to settle the subject matter of the dispute between the company's board of directors and its accounts auditors. The decision of the committee shall be binding after presenting the same once more to the general assembly for approval. The budget and the profit and loss account shall be amended as decided by the committee.

The Authority shall conduct periodical inspection on the insurance and re¬insurance companies to ensure the soundness of their financial situations, and their compliance with the provisions of the law and the technical basis of carrying out the insurance and re-insurance operations. Should the Director General come to know through such inspection or vide sufficient information that one of the following incidents took place, then he shall ensure soundness of such information:

1. (a) The company did not fulfil its obligations, or it's likely to fall short in doing so or the company is unable to continue its operations.
2. (b) The company violated the provisions of the law herein, bylaws, regulations, instructions or the decisions issued pursuant thereto.
3. (c) The company's procedures needed to reinsure the risks accepted by it are inadequate or the company didn't make these procedures, with the exception of the insurance-related professions.
4. (d) The company has lost one of the required terms and conditions for licensing or registration to carry out the insurance activity.
5. (e) The company's total losses exceeded (50%) of its paid-up capital.
6. (f) The company ceased its operations for more than one year without justifiable cause or legitimate reason.

2. Should the Director General became evident that the said information is correct he shall ask the company to take certain procedures to rectify its position within the period he shall determine, and in case the company failed to do so, the Director General shall refer the matter to the Board to take the necessary actions to rectify these situations; including:
(a) Request from the company or the main office of the foreign insurance company, as appropriate, to take the necessary action to correct the administrative situations, including the disqualification of the Director-General, the Authorized Manager or any senior official.

(b) Disqualification of the Chairman of the Board of Directors or any member of the Board that proves accountability for the current status of the Company.

(c) Dissolving the Company's Board of Directors and appointing a provisional neutral administrative committee of experienced individuals to take its place and appointing a chairman for the committee and a deputy thereof. The functions and competencies of the committee shall be determined for a period not exceeding six months, extendable for a period not exceeding one year in cases where this is required. The company shall be liable for the fees of the committee as determined by the Authority and upon accomplishment of the committee's mission a new Board of Directors shall be elected in accordance with the provisions of the Commercial Companies Law.

(d) Taking the necessary action to merge the company into another according to the provisions of the Commercial Companies Law.
(e) Ceasing or cancelling the company's license.
(f) Restructuring the company.
(g) Preventing the company from concluding any more insurance contracts or preventing it from practicing a particular type or types of insurance.
(h) Setting upper limit for the premiums total amounts received by the company for issuing insurance policies.
(i) Retaining assets in the State equal in value to the company's total net obligations accrued from its operations in the State or a certain percentage of their value as determined by the Board based on the recommendation of the Director General.
(j) Restricting the company's involvement in any of its investments activities associated with the solvency margin or compeling it to liquidate its investments in any of these activities to serve this purpose, unless such action would cause damage to the company as decided by the expert specialized in this field.
(k) Appointing an independent observer member from outside the Authority to attend meetings of the Board of Directors of the company and participate in the discussions without having a vote during taking the decision and the Board shall determine his competencies and fees.
(l) Liquidating the company.

3. The provisions stipulated in paragraph (1) and (2) of the article herein shall apply to Insurance Related Professions to the extent appropriate to the nature of these professions.

Article (41) bis (1):

1. Subject to the provisions of the Law concerning Offences and Administrative Sanctions in the Federal Government, the Authority has the power to impose administrative fines on insurance companies, reinsurance companies and insurance-related professions.

2. The Cabinet shall issue a decision to determine the offences for which the fines referred to in paragraph (1) of the article herein shall be imposed.

Article (41) bis (2):

1. The Director-General shall designate any expert, consultant, actuary or auditor for the purpose of conducting an inspection or audit.

2. Inspectors and auditors appointed by the Director General shall be given all necessary authorities to enable them to carry out their duties, including:

(a) Accessing records, registers, statements and internal audit reports. As well as collecting information and requesting necessary clarifications from the insurance company, reinsurance company, insurance-related profession and the members in respect of the insurance operations they carry out. In addition to obtaining prints or copies of records, registers and statements.

(b) Collecting the necessary information and clarifications from the members of the group of insurance company or reinsurance company in relation to all records, operations and activities relating to the insurance company.

(c) Collecting the necessary information and clarifications from any third party that has a relation with the insurance company, reinsurance company or the insurance-related profession concerning the subject matter of auditing.

Article (41) bis (3):

Any insurance company, reinsurance company or insurance-related profession, or any of their managers or employees shall not:

1. Prevent, intercept or obstruct any person appointed by the Director General to carry out inspections or audits pursuant to the law herein.

2. Conceal any data, registers or books requested by the Director General or the person appointed by him to perform the inspection or auditing duties.

3. Issue any misleading statements or give any inaccurate data, registers or books.

Every insurance company shall deposit into one of the banks operating in the State a deposit to stand as guarantee for fulfilling its obligations amounting:

1. Dirham four million for the two types of insurances of life assurance and fund accumulation operations provided for in Para (1) of Article (4) of the law herein.
    
2. Dirham two million for each branch of insurance enlisted under the two types of insurances of properties and life liabilities provided for in Para (2) & (3) of Article (4) of the law herein, provided the total amount shall not exceed Dirham six million at most regardless of the number of the branches.

According to a resolution by the Cabinet the deposit as provided for in the preceding two paragraphs may be increased on basis of a recommendation by the Chairman.

The deposit shall be in the form of money or the equivalent of shares and bonds of companies incorporated in the State or a mortgage of a real-estate located therein, subject to the chairman's consent.

The deposit shall be deposited into one of the banks licensed in the State in the name of the company and to the order of the chairman in so capacity. As for the real-estate mortgage, an endorsement shall be entered into its registration with the Department assigned for mortgages' registration as an indication for that. The Authority shall be provided by an official certificate as so. The cash returns of the deposit (if any) shall be made for the company's interest. By consent of the Director General the whole deposit or part thereof shall be replaced by any other form of deposit provided for in the Article herein in condition that its value shall not be less than the legal limit of the deposit at the time of replacement.

The deposit shall not be disposed off except by a written permission from the chairman or whosoever authorized by him. The court of jurisdiction or the committee may order seizure of the deposit against the debts accrued from the insurance operations of the company. However, no order shall be given to seize the deposit against other debts.

The Authority shall request the company to complete the deposit should it become less than the legally determined limit due to decrease in the values of the shares, bonds, or real-estates or impose seizure thereon or on part thereof according to the provisions of the preceding Para or for any other reason. The company shall complete the deposit within a thirty day period at most as from date of the call to complete the deposit.

The bank shall not dispose off the deposit by any form or another except pursuant to a final judicial verdict or by a written permission from the chairman. The pertinent real estate registration bodies as well shall not lift off the endorsement signifying mortgaging of the real-estate kept as a deposit except by a written permission from the chairman or whosoever he authorizes.

The companies engaged in any of the two insurances types provided for in Para (1) of Article (4) shall maintain funds therewith in the State equivalent in their value at least to the total amount of the special mathematical reserve of the contracts concluded inside the State or of those executed therein. The Cabinet on basis of a presentation by the Chairman may decrease percentage of the reserve to be maintained by the company to no less than 50%.

These funds shall be fully maintained separate from the monies of other insurance operations. However, in calculating the said reserve the deposit provided for in Para (1) of Article (42) of the law herein shall be taken into consideration in such a manner whichever the larger shall weigh up.

The insurance companies operating at the time of implementing the law herein shall be given one year grace period as from date of enforcing the law herein to adjust their situations according to the provisions of Para (1) and (2) of Article (42) of the law herein. The Cabinet on recommendation of the chairman may extend the period for another year.

1. Incorporation of any insurance company in the State or opening a branch of a foreign insurance company therein shall not be only after obtaining a license from the Authority which shall have the right either to grant it or refuse as may seen fit to the national economy needs provided that the purpose of the company shall be carrying out insurance operations. The executive regulations of the law herein shall determine the documents need be submitted along with the licensing application.

2. Should licensing be granted on basis of inaccurate information the license shall be cancelled by decision of the director general.

1. Any of the companies provided for in Para (1) of article (24) of the law herein shall not carry out insurance operations only following its inscription in the register according to the provisions of the law herein and the requisites determined by the executive regulation of the law herein.
 

2. Should the registration been granted on basis of inaccurate information the registration shall be cancelled by decision of the director general.

The company shall not re-insure with another company unless that other company is duly licensed to carry out the type of insurance assigned thereto for re-insurance.

The Board on basis of the director general's presentation may cease the company to carry out certain type or types of the insurances of its practice for a period not exceeding a year and shall notify the company and the pertinent body given the cessation decision in any of the following cases:

1. Should the company is in violation of the provisions of the law herein and the regulations, rules and directives issued pursuant thereto.
    
2. Should the company became devoid of any of the terms needed for the registration according to the provisions of the law herein.
    
3. Should the company did not carry out its operations in any of the insurance types listed with those ones requiring registration or ceased operating in such a type to carry out for period of one year.
    
4. Should the company failed to fulfill its accrued financial obligations.
    
5. Should the company refrained to execute a final judicial verdict related to an insurance contract.

1. Should the company within a period not more than one year as from date of the cessation eliminated the reason led to cease its operations due to any of the cases provided for in Article (50) of the law herein, the Board shall issue on basis of a presentation by the director general a decision approving the company to continue carrying out insurance operations. The decision shall be transmitted to the pertinent body and the company.

2. Should the company failed to eliminate the reason led to cease its operations within a period of one year at most as from date of the cessation, its license for that type or types of insurances shall be cancelled by decision of the Board. The decision shall be transmitted to the pertinent body and the company.

1. The procedures related to cessation of operations or cancellation of one or more of the insurance types and the powers bestowed upon the director general in this respect shall be determined by virtue of the decisions issued by the Board for the purpose.
 

2. The following shall result from the decision of ceasing the operations or canceling the license for one or more of the insurance types:
 

1. The company shall be prohibited from concluding insurance contracts of any of those insurance types subject to the penalties provided for in the law herein.
    
2. All rights and obligations accrued from the contracts concluded prior to the cessation of the operations or the cancellation of the license for that or those types of insurance shall be deemed proper and valid and the company shall remain liable therefor.

The company which its registration for one or more types of insurances has been cancelled may file an application to the director general to re-register it within a period not exceeding one year as from date of issuing the cancellation decision attached therewith the documents establishing elimination of the reasons of that the cancellation. The Board shall issue its decision pertaining thereto on basis of a presentation by the director general within a period of two months at most as from date of referring the matter to the Board.006

1. Should the company which its registration for all types of insurance had been cancelled did not file an application for re-registration within the period provided for in Article (53) of the law herein or the Board rejected the application for re-registration, the company shall start procedures of voluntarily liquidation within a month as from the expiry date of such period or from date of notifying the company of the Board's decision and should the company did not conduct these procedures the company shall be liquidated according to the provisions of the law herein.

2. The registration of the company shall be deemed canceled should a non-compulsory liquidation decision been issued or a final judiciary verdict of compulsory liquidation been pronounced thereon or been declared bankrupt.

1. Branches of foreign insurance companies shall be obliged before getting registered to appoint an authorized manager for the branch to carry out insurance operations on their behalf and they shall be responsible for his actions provided attaching along with the appointment decision an official documents and an attested copy thereof in order to be deposited with the Authority authorizing him to exercise all necessary powers to manage the branch including the acts of:

1. Issuing insurance policies, making endorsements and paying the accrued indemnities.
2. Representing the company before the Authority, the courts of jurisdictions, and all official and non-official bodies in connection with the branch's operations and management.
3. Receiving of warnings and all notices and correspondences intended to the company.

2. The branches of the foreign insurance companies shall be obliged to notify the director general of the name of the so authorized manager within a month as form date of his appointment and shall appoint a replacement thereto within a month as from date of vacating his position.

3. The branches of the foreign insurance companies shall publish the company's consolidated final accounts in two widely circulated local daily newspapers issued in Arabic and in one local daily newspaper issued in English.

1. Representative offices of the foreign insurance companies shall not carry on their tasks in the State before obtaining a license for the purpose from the Authority.
 

2. The Authority shall issue a decision to organize the tasks of these offices.
 

3. The licensing applications may be approved or rejected by decision of the Board and the decision shall be notified to the relevant bodies.

Companies engaged in any of the two types of insurances provided for in Para (1) of Article (4) of the law herein shall not discriminate between a policy and another of the same type in respect of insurance premiums or profit amounts allocated to the shareholders or the like of other stipulations unless such discrimination is a result of life expectancy variations in those policies which life span has an effect therein, with exception of:

1. Re-insurance policies.
    
2. Insurance policies in amounts with certain discounts according to the premium rates' schedules communicated to the Authority.
    
3. Insurance policies with special terms covering the life of the members of one-family or group of people professionally or occupationally related or having any other social relation.

The director general may license the company upon its own request to issue policies at premiums discounted than the usual should there are justifiable reasons.

Companies engaged in either of the two types of the insurances provided for in Para (1) of Article (4) of the law herein shall examine the financial status of the related type and assess the outstanding obligations related thereto at least once every three years by an actuary.

Such assessment shall include all insurance operations concluded by the company inside and outside the State one-by-one and should the activity been conducted by a branch, the assessment shall be confined to the operations which their contracts been concluded inside the State or executable therein.

The assessment mentioned in Article (59) of the law herein shall be conducted whenever the company intended to examine its financial status in order to determine percentage of profits to be allocated to the shareholders or policyholders or whenever it intended to make such status public.

The Authority may demand such assessment be conducted at any time before the lapse of three years provided the lapse of one year at least as from date of conducting the latest assessment.

The executive regulation of the law herein shall determine statements should be incorporated in the expert's report in respect to the findings of the examination and the assessment referred to in Articles (59) & (60) of the law herein.

The company shall send the Authority a copy of the expert's report on the findings of the examination and the assessment referred to in Articles (59) & (60) of the law herein within six months as from the expiry of the period for which the examination was conducted accompanied with the following:

1. A statement of the insurance policies still in effect concluded by the company inside or outside the State on the date of conducting the examination and should such an activity been carried out by a branch of a foreign company the statement shall include only those policies concluded inside the State or those ones executable therein.
    
2. A declaration by those responsible for managing the company in witness that all statements and information required to get an exact report have been put under the disposal of the expert.

By decision of the director general following the lapse of the six months provided for in the Article herein an extension of time may be given to the company to file the said report provided such period shall not exceed three months.

Should the Authority became evident that the expert's report did not reflect the reality of the financial status of the company the Authority may order a re-examination thereof on the company's own expenses by an actuary to be elected by the Authority for the purpose.

The companies engaged in life assurance and funds accumulation operations shall not deduct whether directly or indirectly any part of the funds intended to meet their obligations accrued from the insurance policies in order to allocate as profits for the shareholders or the policyholders or to pay any amount other than their obligations according to the insurance policies they have issued. Allocation of profits shall be restricted to the surplus funds as determined by the expert in his report after conducting the examination referred to in Article (59) of the law herein.

In implementing the provisions of the Article herein the company's funds inside and outside the State shall be deemed without prejudice to the provisions of Article (34) of the law herein as one unit.

The companies engaged in life assurance and funds accumulation operations shall not issue saving bonds for a period exceeding thirty years and should the bond of a duration of twenty five years or more the surrender value after the twenty fifth year shall not be less than the full amount of the mathematical reserve and the premiums undertaken by the bearer of the saving bonds shall be of equal amounts or receding.

The saving bonds shall include therein invalidation articles to be used by the company as an argument in face of the bearer to invalidate the bond for delaying payment of the premium.

The contract, however, shall not be invalidated before lapse of three months as from the due date of the premium and should the bond being nominal such period shall not become effective only as from date of serving a notice on the bearer of the bond by a registered letter.

Also, it shall be specified in these bonds that the right therein shall pass to the beneficiaries by reason of the death of the bearer of the bond without paying any additional monies or imposing any further provisos.

By decision of the Board based on a recommendation of the director general other statements need be included in the saving bond may be specified.

In case the company engaged in life assurance and funds accumulation operations gone bankrupt or in case of liquidation the due amounts of each holder of a policy with unexpired durtion shall be estimated to equate the mathematical reserve thereto in the day of announcing the bankruptcy verdict or the liquidation decision calculated according to the technical basis of the premiums' tariff at the time of concluding the policy.

Insurance companies licensed to operate in the free zones shall not carry on any activity outside these zones other than the activity of re-insurance.

1. The provisions relevant to the regulation of the insurance agent's operations and the accrued liabilities thereupon shall be determined pursuant to decisions or directives to be issued by the Board for the purpose.

2. No body shall carry out the operations of an insurance agent only after providing the director general with the agreement he concluded with the company stated therein him being authorized as agent therefor. However, the agent shall not act as an agent for more than one company. He shall fulfill the terms and conditions provided for in Article (30) of the law herein.

No body shall carry out operations of an insurance broker, a re-insurance broker, an appraisal and loss adjuster, an insurance consultant, or an actuary only after entering his registration in the register prescribed for the purpose according to the terms and conditions as determined by the Board pursuant to the rules issued for the purpose provided including therein the provisions determining his responsibility, organizing his operations and requisites of his registration. However, he shall fulfill the provisos provided for in Article (30) of the law herein.

The company may reassign the insurance policies it concluded inside the State, including the rights and obligations associated with any type of the insurances engaged therein, to another company or other companies engaged in the same type of insurance.

1. The reassignment application shall be placed to the director general attached therewith the instruments and documents establishing the agreement on the reassignment. The director general shall give directions to publish a notice about the reassignment in the Gazette just once, in two widely circulated local daily newspapers issued in Arabic and in one local daily newspaper issued in English for two consecutive times, on the applicant own expenses provided that the notice shall include reference to the right of the policyholders and the beneficiaries thereof or whosoever interested therein to raise to the director general an objection to the reassignment within forty five days as from date of the latest notice specified therein the subject matter of the objection and the sustaining reasons.

2. The director general shall issue a decision approving the reassignment should those concerned parties raised no objection within the period referred to in Para (1) of the Article herein. The decision shall be published in the Gazette within a month as from date of its issue and shall be used as an argument in face of the insured, the beneficiaries and the company's debtors. The funds of the company shall be relocated to the company which the policies have been reassigned, taking into accounts the provisions related to conveyance and reassignment of funds. The reassigned funds shall be exempted from registration and safekeeping fees imposed according to laws of conveyance and reassignment of funds.

However, should any objection been raised during the said period, the reassignment application shall not be finalized only after the concerned parties reached an agreement or a final verdict been pronounced in the subject matter of the objection.

Nonetheless, the director general may issue a decision approving the reassignment provided the company paying an amount equivalent to its obligations towards the objector including the expenditures may be needed to maintain any of the company's assets.

The provisions of Articles (71) & (72) of the law herein shall be applied should any company ceased operating in certain type or types of the insurances or intended to release its monies need be maintained inside the State for such type or these types of insurances following the company submission of an evidence establishing fulfillment of its obligations towards all policies concluded inside the State or towards those executable therein of the type or types which the company decided to cease operating therein or reassigned these policies to another company in the manner as stated in Article (71) & (72) of the law herein.

1. The special provisions on merger stated in the commercial companies' law shall be applied to mergers of insurance companies.

2. No merger of an insurance company except into another insurance company operating in the same type of insurance and no procedures for merger shall be initiated except after filing an application for merger to the director general attached therewith the necessary reports and statements and obtaining the approval of the Board.

1. The director general shall form an assessment committee participating therein one representative of each company, the accounts auditors thereof, as well as experts and specialist. The director general shall appoint one of them as chairman of the committee.

2. The committee provided for in Para (1) of the Article herein shall assume assessment of all assets, rights and obligations of the companies intending merger in order to indicate the shareholders' net rights on the date set for the merger. The committee shall file its report to the director general along with the company's statement of accounts produced as a result of the merger within a period not to exceed ninety days as from date of referring the matter thereto. The Board on recommendation of the director general may extend such period for a similar period in case of necessity, provided the companies intending merger shall equally bear remunerations of the assessment committee and in case of difference thereat these remunerations shall be determined by decision of the director general. However, director general's decision in this respect shall be final.

3. The director general shall file the committee's report to the Board along with his recommendations and should the Board approve the committee's report, the Board shall form an executive committee composed of the chairmen and Board members of the companies intending the merger and the companies' auditors to handle the excutionary procedures of merger according to the provisions of the commercial companies' law.

1. The companies, the parties of the merger, shall let the insured review the agreement on which the merger has been accomplished in order to verify its articles. The agreement shall be displayed at the main office of each one of these companies for fifteen days as from date of publishing the decision of merger in the Gazette.

2. Any interested party shall have the right to raise an objection before the Board within thirty days as from date of publishing the decision of merger, provided the objector shall indicate the subject matter of his objection, the sustaining reasons thereto and specifically state the damages alleged to be inflicted due to merger. Should the Board failed to settle the objection for any reason within thirty days as from date of referring the same thereto the objector shall have the right to recourse to the court of jurisdiction. However, these objections or claims filed with the court shall not cease the decision of merger unless the court orders otherwise.

3. The Board shall issue the instructions relevant to the procedures of merger and settlement of objections raised thereto in this respect and all the matters related thereto.

1. A. For the purposes of restructuring the company according to Para (2.J.) of Article (41) of the law herein the Board on basis of a presentation by the director general may dissolve the company's board of directors and form a neutral committee to restructure the company composed of experienced and specialized individuals and appoint a chairman for the committee and a deputy thereto for a period not to exceed a year as from date of issuing a decision thereto. The fees of the committee as determined by the Board shall be borne by the company. The committee shall file a monthly report to the director general on the progress of the restructuring procedures or whenever so requested.
   
   B. The process of restructuring shall include for the purpose, managing the company and organizing the staggering financial affairs through negotiations with all its debtors in order to determine means to settle debts of the company by approving a restructuring plan.

2. The committee provided for in Para (1.A.) of the Article herein shall publish a notice once in the Gazette and for three consecutive working days in two widely circulated local daily newspapers issued in Arabic and in a local daily newspaper issued in English; all at the company's own expenses. The notice shall include calling all the creditors to file statements of their debts supported with confirmatory documents within a period not exceeding thirty days as from date of publishing the latest notice. However, any statements filed by any creditor upon lapse of such period shall not be considered.

1. Irrespective of the provisions stated in any other legislation, the execution of any levy whether precautionary or executionary on the company's funds or assets or any action or execution on these funds or assets shall stay as from date of issuing the decision of the restructuring pending occurrence of any of the following cases:

1. The period provided for in Para 1.A. of Article (77) of the law herein lapsed in case the restructuring plan has been approved.
2. The Board issued a decision according to the provisions of the law herein rejecting the restructuring plan.
3. The creditors rejected the restructuring plan according to the provisions of the law herein.
4. The Board issued a decision bringing the restructuring procedures to halt according to the provisions of the law herein.

2. Computing of the time limit to deny hearing of legal proceedings by reason of time-lapse shall cease in connection with the procedures provided for in Para (1) of the Article herein.

1. The committee shall prepare its report on the restructuring plan within a period not exceeding fifteen days as from date of substantiating the debts therewith and call the creditors to approve the plan by publishing a notice in two widely circulated local daily newspapers issued in Arabic and in a local daily newspaper issued in English, provided the same be approved by creditors representing no less than three quarters of the non-preferred and non-mortgage warranted debts.

2. A. in case the creditors approved the plan according to the provisions of Para (1) of the Article herein, the committee shall present the plan to the general manger whose in turn shall refer it to the Board along with his recommendations.

B. In case the creditors rejected the plan prepared according to the provisions of Para (1) of the Article herein, the committee shall file a report thereon to the director general who shall refer it along with his recommendations to the Board to take the necessary action according to the provisions of Para (2) of Article (41) of the law herein.

3. The Board may approve or disapprove the plan presented according to Para (1) of the Article herein; in case of approval the procedures of restructuring shall proceed and in case of disapproval the Board shall decide about the suitable procedure to be taken according to the provisions of Para (2) of Article (41) of the law herein.

4. Following the accomplishment of the restructuring a new board of directors shall be elected according to the provisions of the commercial companies' law.

1. Should the Board became evident that the situations of the company are staggering still despite applying the restructuring plan or the restructuring is ineffective, the Board may decide to cease the restructuring procedures and take the suitable procedures according to the provisions of Para (2) of Article (41) of the law herein.

2. The Board on basis of a presentation by the director general may issue the necessary directives to repeat the restructuring and all the matters related thereto according to the provisions of the law herein.

1. The provisions stated in the law herein, the rules and decisions issued pursuant thereto shall apply in case of liquidating the company. The liquidation shall be conducted by one liquidator or more to be appointed by the general assembly by the ordinary majority whereby the company's decisions are being issued.

Should the liquidation been on basis of a verdict, the Court shall specify method of liquidation and appoint the liquidator.

The decision of appointing the liquidator shall be determined therein his fees and powers coupled with commitment him to submit a guarantee should the matter necessitated. Should the liquidator's fees are not determined in the appointing decision the fees shall be determined by the court of jurisdiction.

2. The decision of appointing the liquidator shall be announced by insertion in the trade register and publishing in two widely circulated local daily newspapers issued in Arabic and a local daily newspaper issued in English within a week period at most as from date of the announcement. However, such an appointment shall not be used as an argument in face of the others except as from date of the announcement.

3. The powers of the board of directors shall end when the company starts the liquidation phase. However, the entities of the company shall remain in existence during the period of liquidation, provided their powers shall be confined to the liquidation operations that fall within the domain of the liquidators.

1. Any interested party shall have the right to appeal against the decision issued by the company's general assembly appointing the liquidator before the court of jurisdiction within forty days as from date of entering the decision in the trade register.
 

2. The appeal made according to Para (1) of the Article herein shall not cease the liquidation procedures unless the court decides otherwise.

The liquidator shall be dismissed in the same manner of his appointment. Any decision or verdict to dismiss the liquidator shall include appointing whosoever will take his replace. The dismissal of the liquidator shall be announced by entrance in the trade register and publishing in two widely circulated local daily newspapers issued in Arabic and a local daily newspaper issued in English. Such dismissal shall not be used as an argument in face of the others except as from date of the announcement.

The following shall result from the decision of liquidation:

1. The liquidator will add the expression "under liquidation" to the name of the company on all its papers and correspondences.
    
2.  Cessation of any signing authorization or powers issued by any body in the company. The liquidator shall solely be qualified to grant any signing authorization or powers required for the procedures of liquidation.
    
3. Cessation of computing the time-lapse barring hearing of claims of any rights or claims whether exiting or due to the company for a period of one year as from date of issuing the decision of liquidation.
    
4. Cessation of the legal proceeding and procedures filed by or against the company for a period of six months unless the court decides to proceed therein before the end of such a period; taking the provisions of Para (5) of the Article herein into consideration.
    
5. Cessation of the proceeding of any procedural or excutionary processes against the company except should it be upon request of a mortgagee and related to the mortgaged fund per se, then all these processes shall cease or denied acceptance for a period of six months as from date of issuing the decision of liquidation.

The liquidator may take all the necessary decisions and procedures he may see necessary to accomplish the procedures of liquidation including:

1. Managing the company's operations to the extent required for the liquidation procedures.
    
2. Taking inventory of all assets and chattels of the company in collaboration with the board of directors which shall undertake to deliver the company's funds, books and documents to the liquidator.
    
3. Appointing any of the experts and individuals to assist him to accomplish the procedures of liquidation or appointing a special committee and delegate thereto any of the tasks and powers entrusted to him and issuing the necessary decisions to accomplish the procedures of liquidation.
    
4. Hiring one lawyer or more to represent the company under liquidation in any of the legal claims or procedures related thereto.

Irrespective of any agreement otherwise, the liquidator may take all the necessary procedures he may see necessary to protect the company's rights including:

1. Canceling any action, rescinding any agreement concluded by the company or retrieving any amount paid by the company during the three months prior to issuing the decision of liquidation should that constitute preferring certain body over the creditors of the company. The period shall be one year should the company happened to be in possessive relation or associated with that body. The preferentiality shall be deemed realized should the action or the procedure done without indemnity or with partial indemnity or involved assessment of a fund or right in a value other than the real or in a value other than the regular in the market.
2. Canceling any action or rescinding any agreement concluded by the company with any body possessively related or associated therewith or retrieving any amount paid by the company to either of them during the three months prior to issuing the decision of liquidation.
3. Concluding an agreement with any of the creditors of the company on the method of paying or installing any amounts or debts accrued therefrom.
4. Terminating the service of any of the company's employee and paying his dues.
5. Terminating any contract concluded by the company with any body before it expires.

2. The liquidator shall take any of the procedures referred to in Para (1) of the Article herein by a written notice to be served on the relevant person. These procedures may be appealed against before the court of first instance where under its jurisdiction the company's main office falls during thirty days as from date of notifying the person.

1. All mortgages and warrantees in connection with any of the funds or rights of the company made before three months as from date of issuing the decision of liquidation shall be deemed null and void. The said period shall be one year should the mortgages and warrantees were in favor of somebody possessively related to the company or associated thereto.

2. Every decision imposing a levy on any fund or right of the company prior to the issue of the decision of liquidation shall be deemed cancelled unless the decision was issued upon request of mortgagee or related to mortgaged fund.

For the purposes of the Article (86) & (87) of the law herein an individual shall be deemed associated with the company in any of the two cases:

1. Should the individual being an administrator in the company or having joint business interest with an administrator therein.
    
2. Should the individual being a spouse of an administrator in the company or a relative up to the third degree of that administrator or spouse thereof or having joint business interest with any one of them.

Taking the provisions of the legislations prevailing in the State into consideration, the liquidator may fulfill the company due debts and sell its properties whether in form of chattels or real-estate in public auction or by any other mean unless specified in his appointment letter that sales to be conducted in particular manner. However, the liquidator shall not sell the company's possessions in one lot except by permission of the general assembly.

1. Taking into consideration the provisions relevant to the insured and the beneficiaries of the insurance policies, the liquidator shall publish within thirty days as from date of issuing the decision of liquidation a notice in a clearly visible space in two widely circulated daily local newspapers issued in Arabic and in a daily local newspaper issued in English advising the creditors of the necessity of presenting their claims against the company whether being due or not within two months should they are residing inside the State and three months should they are residing outside it.

2. The notice shall be republished in the same manner immediately after lapse of fourteen days as from date of publishing the first notice. The time-lapse period of the claims shall be computed as from date of publishing the first notice.

3. Should the liquidator or the court of jurisdiction became convinced that there is a legitimate excuse for the creditor failure to present his claim during the period specified in Para (1) of the Article herein such period shall be extended for another three month at most.

4. The period as from date of issuing the decision of liquidation up to date of publishing the first notice mentioned in Para (1) of the Article herein shall not be computed within the period determined to bar hearing of the creditors' claims of any rights or claims towards the company under liquidation.

1. Taking Para (2) of the Article herein into consideration, the liquidator shall issue, within three months as from date of issuing the decision of liquidation, the notices indicated here below unless there are justifying reasons to go beyond this period, provided the whole period shall not exceed six months:

1. Notice with an acknowledgment receipt to each of the insured or the beneficiary of the insurance policy indicating extent of his rights and obligations.
2. Claim notice with an acknowledgment receipt to each debtor indicating amount of debts and obligations owed to the company.

2. An objection against the notice mentioned in Para (1) of the Article herein may be placed to the liquidator within thirty days as from date of serving the notice on the intended party and should no objection been placed during the period, the insured or the beneficiary shall be deemed to have recognized the contents of the notice.

3. The period determined to hear the claim filed pursuant to the provisions of Para (2) of the Article herein shall cease.

4. Should the claim's notice issued by the liquidator to the debtor according to the provisions of Para (1.B.) of the Article herein became final and decisive the liquidator may make settlement with the debtor or use the notice against him by virtue of the provisions of the prevailing laws.

1. A. The liquidator shall issue his decisions in respect of the claims and objections submitted to him according to the provisions of Articles (91) & (92) of the law herein within a period not to exceed six months as from date of submission.

B. should the liquidator didn't issue his decision within the period specified in Sec. (A) of the Para herein the claims and objections shall be deemed legally rejected.

2. Any interested party may file an objection before the court of first instance where under its jurisdiction the company's main office falls against the decision issued by the liquidator according to the provisions of Para (1) of the Article herein within thirty days as from date of notifying the intended party of the decision or within thirty days as from lapse of the six months period referred to in Sec. (1.A) of the Article herein whichever is shorter.

Irrespective of any other legislation the liquidator may file a petition to the competent court of first instance to impose a precautionary levy on any funds belonging to the company's debtors or take any precautionary or urgent measures against them according to the provisions of the prevailing legislations taking the following into account:

1. The liquidator shall be exempted from attaching a guarantee with his petition.
    
2. The liquidator has served a claim notice on the debtor when he filed the petition referred to herein or will serve the same within the eight days following the issue of the decision. Such notice shall stand in place of the subjective claim need be filed according to the provisions of the Civil Procedures Law.

1. No creditor, debtor, insured, or beneficiary shall be entitled to file a claim against the company under liquidation after issuing the decision of liquidation except according to the principles and procedures provided for in the law herein.

2. Taking the provisions of Para (1) of the Article herein into consideration anybody inflicted harms due the liquidator actions or procedures may file according to the prevailing laws an objection before the court of first instance where under its jurisdiction the company's main office falls. The court may uphold, nullify, or amend these actions and procedures.

Exception to the legislation in force in the State, the due debts and obligations of the company subject to liquidation shall be paid according to the following order:
1. The due entitlements of the staff and employees for the last four months.
2. The liquidator’s fees, costs, expenditures and the loans he obtained.
3. The rights of insured and beneficiaries of insurance policies. The liquidator shall be obliged to allot the company's assets that represent the technical provisions required to be retained in accordance with the provisions of the law herein to pay these liabilities and any amounts acquired by the company according to any arrangements of reinsurance shall be deemed part of the technical provisions.
4. The rights of the other debtors by order of preferences according to the laws in force.
5. The rights of the shareholders.

1. The liquidator shall submit to the general assembly every six months a provisional account of the liquidation course of action and disclose any information or details required by the partners about the liquidation's state of affairs. He shall accomplish his mission within the period specified in his appointment letter and should no period been specified any partner may file the matter to the court of jurisdiction to determine a period for the liquidation.

2. The liquidation's period shall not be extended except by decision of the general assembly after considering the report of the liquidator indicated therein the reasons that hindered accomplishing the liquidation on time. Should the period of liquidation been determined by the court the same shall not be extended save by its permission.

1. The liquidator shall submit upon accomplishing the liquidation a final account to the general assembly about the processes of liquidation. The liquidation processes shall end upon approving the final account.

2. The liquidator shall declare the liquidation accomplished in the trade register and publish an announcement in two widely circulated local daily newspapers issued in Arabic and in one local daily newspaper issued in English and that shall not be used as an argument in face of the others only as from date of such an announcement. The liquidator following the accomplishment of the liquidation shall file an application to write the company off the register.

1. A. Serving any notice or decision issued by the liquidator according to the law herein to the intended person shall be made by handing the same to him personally or to whosoever legally represent him or by posting it with an acknowledgement receipt to his last address as maintained by the company under liquidation.

B. Each notice sent pursuant to the Article herein shall be deemed duly handed to the consignee should that person refused to receive it.

2. Should it became difficult to serve the notice according to the provisions of Para (1) of the Article herein the liquidator shall serve the notice by publishing it in two of widely circulated local daily newspapers issued in Arabic and in one local daily newspaper issued in English at least twice. The publishing fees shall be on the intended person own expenses and such publishing shall be deemed legal notice in all aspects.

1. The insurance companies, reinsurance companies and insurance-related professions subject to the provisions of the law herein shall establish a professional association to be called "Emirates Insurance Association" that shall have a legal personality and all the insurance companies operating in the State shall be members of the Association. The Association shall form independent committees for the different insurance activities carried out by the members.

2. The Association shall prepare Articles of Association issued by the Chairman after the Board’s approval under which it shall determine the Association's functions, duties, its relation with the Authority, formation of its committees for different insurance activities, provisions and procedures of its general assembly, formation of its Board of Directors, meetings of each one of them, affiliation fees, annual subscription fees, code of conduct, disciplinary procedures against the members and other related affairs.

The Minister of Justice in collaboration with the Minister shall issue a decision to assign the Authority's employees who shall have the capacity of law enforcement officers in the field of implementing the provisions of the law herein.

1. The insurance company shall manage insurance claims in accordance with the legislation in force and the provisions of the insurance policies, pursuant to the following procedures:

(a) Issuing a decision concerning any insurance claim in accordance with the instructions of professionals rules and code of conduct and ethics.

(b) In case any insurance claim is fully or partially denied, the Company must clarify the reasons for its decision in writing.

(c) In case of a dispute in relation to a claim, the concerned person may submit a written complaint to the Authority, which in turn may request clarification from the Company.

(d) In case the complainant has objection on the clarifications provided by the company, he may request that the dispute be referred to the Committee established pursuant to article No. (110).

2. One or more committees that will be concerned with resolving the disputes arising out of insurance contracts, operations and services shall be formed. The committee (s) shall have the competency to request any official papers or documents and to counsel experts, as well as hearing of witnesses and any other alternatives that need to be used to resolve the disputes before them.

3. Cases resulting from the disputes arising out of insurance contracts, operations and services shall not be accepted, if such disputes are not brought before the committees established in accordance with the provisions of paragraph No. (2) of the article herein.

4.The concerned party shall have the right to appeal against the decisions of the committees before the competent first instance court within thirty days of the day following their notification of the decision, otherwise the decision shall be deemed final and enforceable.

5. The Board shall issue the necessary decisions concerning the composition of the committees established in accordance with the provisions of paragraph No. (2) of the article herein, their competencies, powers, their work system, fees of its members and hired experts, types and classes of insurance for which insurance disputes are resolved before these committees, and other related matters.

The companies in existence upon enforcing the provisions of the law herein shall be obliged to adjust their situations according to the provisions thereof and the regulations and directives issued pursuant thereto within the period determined by the Board, provided such period shall not exceed two years as from date of implementing the provisions of the law herein.

Should the company failed to adjust its situations according to the provisions of article (111) of the law herein its registration shall be cancelled by decision of the Board.

Any natural person carrying out operations of insurance agent, insurance broker, loss and damage adjuster, insurance consultant or actuary shall be obligated upon enforcing the provisions of the law herein to adjust his situation according to the provisions thereof and according to the regulations and rules pursuant thereto within the period determined by the Board, provided such period shall not exceed a year as from date of implementing the provisions of the law herein, otherwise his registration or license as might be the case shall be deemed lawfully cancelled and shall be prohibited from carrying out the operations of insurance subject to punishment according to law.

1. Irrespective of what has been mentioned in any other legislation electronic data or printouts of the computers, correspondences generated by telex, fax, and e-mail shall be deemed suitable as proof of evidence should the legislative regulations relevant thereto been adhered to.

2. The companies may keep for the period determined by law microcopies (microfilm or other device of modern technology) instead of the original books, records, lists, documents, correspondences, telegrams, notices and other papers related to its financial operations. These microcopies copies shall have similar supremacy as proof of evidence according to the legislative regulations which a decision issued therefor.

3. The companies which are using in organizing its financial operations computers or other modern technological devices shall be exempted from organizing the commercial books needed according to the Commercial Transactions Law. Statements extracted from these devices or from other modern technological devices shall be deemed same as those statements extracted from the commercial books, provided compliance of the insurance companies with the established legislative regulations in this respect.

All ministries, government directorates, public enterprises, and companies therein the government is having stakes which benefit from the insurance operations shall be required to present any statements or information related to the insurance operations they concluded as may be requested by the Director General within the period he determined.

The insurance agent, broker, re-insurance broker, the actuary, the loss and damage adjusters, and the insurance consultant subject to the provisions of the law herein shall be obligated to present any statements or information as may requested by the Director General within the period he determined.

1. The Director General shall notify the concerned bodies or the pertinent authorities as might be the case of the decisions related thereto issued by the Board or by him personally.

2. The Director General shall publish the decisions related to the registration's suspension, cancellation, or restoration or the decisions related to companies' merger, acquisition, restructuring, liquidation, or termination in the Gazette, in two widely circulated local daily newspapers issued in Arabic and in one newspaper issued in English on the company's own expenses.

The provisions of the Law of Commercial Companies shall not apply to the insurance operations only to the extent the provisions thereto do not contradict the provisions of the law herein, and the regulations, rules, directives, and decisions issued pursuant thereto.

The Federal Law No. 9 of 1984 on insurance companies and brokers referred to herein shall be cancelled and while no contradiction with the provisions of the law herein the executive regulation and the decisions issued thereby shall remain valid pending the issue of the executive regulation necessary to implement the provisions of the law herein.

Any provision in conflict or contradiction with the provisions of the law herein shall be cancelled.

The law herein shall be published in the Gazette and be effective after six months as from date of publication.

The following words and expressions wherever they are stated in the executive Regulation herein shall bear the meanings beside each of them unless the context provides otherwise:

1. The provisions of the Regulation herein shall apply to all the insurance companies incorporated in the State and the foreign insurance companies licensed to perform their activities in the State including those companies engaged in the operations of cooperative insurance and Takaful insurance or operations of reinsurance and the professions associated with the insurance.
    
2. The provisions of the Regulation herein shall not apply to the companies operating in the free zones in the State unless specifically provided for in the Law.

1. Direct insurance operations as provided for in the Law shall be divided into three:
    
   1. Insurance of persons and funds accumulation operations
   2. Properly insurance
   3. Liability insurance
       
2. Insurance operations shall include the relevant activities of the categories provided for in paragraph (1) of the Article herein and shall include as well reinsurance operations and all the professions associated with the insurance which in their respect the Board had issued regulations, directives or special resolutions.

Insurance of persons and funds accumulation operations shall include the following:

1. Life assurance of all types including among others all insurance operations designed to pay certain amounts of money in case of death, disability, reaching certain age or life assurance associated with investment vehicles.
    
2. Health insurance of all types.
    
3. Personal accident insurance associated with life assurance (all insurance operations against personal accidents done by the company in favor of the individuals holding life assurance policies of the same company).
    
4. Funds accumulation operations (all operations the purpose of which formation of a capital to be paid in a specified date against a premium or periodic premiums without linking the same to life or death probabilities).

Property insurance and Liability insurance and the activities associated therewith shall include the following:

1. Fire insurance and the allied perils.
    
2. Land transport, marine and air cargo insurance and the related liabilities.
    
3. Marine hull, machinery, and equipment insurance and the related liabilities.
    
4. Aviation hull insurance and the like and their machineries and equipment and the related liabilities.
    
5. Satellites, balloons and spaceships insurance, and their machineries and equipment and the related liabilities.
    
6. Railway locomotives and coaches insurance and the related liabilities.
    
7. Land vehicles insurance and the related liabilities.
    
8. Engineering insurance and the related liabilities and insurances normally associated thereto.
    
9. Oil insurance including the insurances which are normally considered oil insurance.
    
10. Health insurance of all types.
     
11. Miscellaneous accident insurance including the following types:
     
    1. Personal accident insurance.
        
    2. Guarantee insurance and fidelity guarantee.
        
    3. Money, coins, securities, bonds and the like insurances whether during transport or in safe.
        
    4. Robbery and theft insurance.
        
    5. Glass insurance.
        
    6. Professional indemnity insurance including liabilties of those professionals in the fields of health, engineering, finance, accountancy, law and the other professions.
        
    7. Workman's compensation and employer liability insurance.
        
    8. Agriculture and livestock insurance and insurance of other animals.
        
    9. Other insurances normally falling under miscellaneous accident insurance.

1. The Authority at any time may determine other types of insurance to be enlisted under any of the insurance categories stated in Article (3) of the Regulation herein and may determine risks to be compulsorily insured. The Authority may determine unified tariffs of each one of these types of insurance as the public interest might necessitate.
    
2. The Authority may take the necessary legal procedures to attain the above mentioned objectives including proposing and preparing draft laws should the matter necessitate and issuing the necessary, regulations, rules, directives, and resolutions.

1. The prevailing tariffs of motor vehicle Insurance already circulated to the insurance companies via circular No.28/7/ EC/1055 dated 24.6.1996 shall remain valid till amended or replaced by the Board.
    
2. When premium rates of motor vehicle insurance are determined it has to be observed that they shall be according to the technical principles of pricing operations of such type.

1. The Authority may determine and amend the unified tariffs of certain types of insurance as the case might require.
    
2. The Authority may supervise the premium rates applied by the company and verify extent of commensurability with the risks insured by the company and may require detailed information on the basis and rules which the company relied upon to determine these rates.

1. Neither the company nor the insured has the right to cancel a compulsory motor vehicle insurance contract during validity of the contract as long as his licenses remained valid unless replaced by other insurance contract.
    

2. A compulsory motor vehicle insurance contract shall be deemed cancelled pursuant to the Law should the motor vehicle happened to be total loss and its registration been cancelled by the pertinent licensing authority.

   In this case, the insured shall have the right to be reimbursed by the company a sum of the premium prorate for the remaining period of the insurance contract unless the insured had caused an accident that created total loss and that without prejudices to the established rights of the others prior to cancelation of the insurance contract.

It's conditional on whosoever been appointed as member of the board to satisfy the following requisites:

1. He should be a UAE national.
    
2. He should be no less than 21 calendar years old and of legal capacity.
    
3. He should be one of those who acquired experience or specialized in any of the insurance operations or in one of the related fields. Any of the following persons shall be deemed people of experience and specialization:
    
   1. The insurance experts approved by the Authority.
       
   2. The members of the board of any similar establishment.
       
   3. The university professors of insurance or any of the related sciences.
       
   4. Those persons experienced in economic, commercial, financial, or legal fields.
       
4. He should be of good conduct, never been convicted for breach of honor, trust or public moral or declared bankrupt by Court and not yet rehabilitated.
    
5. He should never been dismissed as member of any of the boards on disciplinary counts.
    
6. He shouldn't be liable according to the Board's discretion for grief violations of any of the provisions of the Law or the Companies' Law in his capacity as general manager or board member of one of the companies including the liability of causing compulsory liquidation of the company.

1. An application to license the insurance companies established in the State shall be submitted to the Director General by the founders' committee of the insurance or reinsurance company on the form approved by the Board for the purpose.
    
2. Licensing application shall be accompanied by the following statements and documents:
    
   1. The company's memorandum and articles of association indicating the founders' names, number of stakes allotted to them, and percentage of each one.
       
   2. An economic feasibility study and the company's plan of work.
       
   3. A certificate by an actuary, in case of insurance of persons and funds accumulation, to incorporate the following:
       

      Firstly:	the actuary's approval of the basis of calculating the premiums.
      Secondly:	adequacy of the technical provisions and prospects of the company's compliance with the margin of solvency and the minimum amount of guarantee.

   4. A declaration by the founders that no one of the company's founders ever been convicted for breach of honor or trust or declared bankrupt by the Court.
       
   5. A declaration by the founders that all statements and documents submitted to the Authority are accurate.
       
   6. Any other statements or documents specified in the regulations and rules issued according to the Law or decided by the Board deemed required for considering the application.
3. After receiving the initial licensing approval, the company shall submit the following to the Authority:
    
   1. Name list of the individuals proposed to take up the post of the company's general manager and the senior officers of the company along with details of each one qualifications and experience and attach therewith the documents supporting these qualifications and experiences.
       
   2. Other approvals and licenses have to be obtained as required by the prevailing laws, regulations and rules.

1. The Authority shall prepare a register to register therein the submitted licensing applications and inscribe these applications in serial numbers according to each one date of receipt and assign a file for each application to keep therein the submitted statements and documents and indicate all procedures being taken in this respect.
    
2. After verifying accuracy and adequacy of the application and the attachments thereto and following payment of the prescribed fees, the pertinent Department of the Authority shall register the licensing application in the register according to the provisions of the Regulation herein and endorse the application with the number and date of submission and hand over the submitter a receipt showing the company's name, the application's subject, its registration number in the register and its date and statement of the accompanying documents.

The pertinent Department of the Authority shall consider the licensing application within (7) working days as from date of submission and should it been established that the application didn't satisfy any of the requisites or the required statements or documents it may ask those concerned, via a registered letter or through direct delivery, to satisfy them within (60) days at most as from date of notification.

1. In case the period provided for in the preceding Article lapsed without the requisites, statements, or documents been satisfied by the organization which submitted the licensing application, the pertinent Department shall refer the matter to the Director General.
    
2. The Director General shall consider the matter within seven days ' as from date of receiving the file and make his decision either by granting the organization which submitted the licensing application an additional period or rejecting the application.
    
3. The license applicant shall have the right to submit a new application to satisfy the requisites after lapse of six months as from date of the Director General's decision rejecting the application.
    
4. In case the new application satisfied the acceptable requisites of its submission, the pertinent Department shall refer the application to the Director General.
    
5. The Director General shall refer the application to the Board to issue its resolution either to approve it or reject it within sixty days as from date of reference.
    
6. The resolution approving the licensing shall be published in the Official Gazette and the pertinent authorities be informed to implement its substance.
    
7. The pertinent Department shall prepare a draft of the licensing resolution and same shall be approved by the Director General.

The Board's resolution rejecting the licensing application shall be deemed final.

The license issued to the company by the Authority shall contain the following:

1. An approval by the Authority to finalize establishment of the company according to the conditions and requisites provided for in the legislations prevailing in the State including the Law and the Regulation herein, and the rules and directives issued pursuant thereto.
    
2. Classes and types of insurance to be carried out by the company after accomplishing its establishment procedures and registration in the register.
    
3. The period within which the establishment of the company has to be completed. However, the Director General in special cases may extend such period to a similar period.
    
4. Any other requisites may be resolved by the Board according to the provision of the Regulation herein.

Without prejudices to the provisions of Article (118) of the Law, establishment of a company shall be done according to the requisites and conditions which on their basis the license has been granted. However, these requisites and conditions shall not be amended except by prior approval of the Board. Nonetheless, the provisions of the legislations prevailing in the State should be observed.

Should the company intend to carry out any other class of insurance or any type thereof not included in the license granted thereto or intend to change the services of it pursue in order to conform with the provisions of the Law, the company shall get the necessary approval from the Authority according to the procedures of granting the licenses as provided for in the Regulation herein.

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.

1. Each insurance company established in the State or a branch of a licensed foreign insurance company shall submit an application to the Authority for registration in the register according to the form prescribed by the Authority for the purpose.
    
2. The application for registration in the register shall be submitted in two copies signed by the legal representative of the company to the pertinent Department of the Authority within (30) days as from date of concluding the procedures of establishing and promulgating the company.

The registration application shall be accompanied by the documents verifying accuracy of the details included therein including the following:

1. A true copy of company's memorandum and articles of association attested by the pertinent authorities.
    
2. A true copy of the notice declaring establishment of the company.
    
3. A certified document to confirm that the company's capital equals no less than the minimum amount stated in the Resolution issued by the Cabinet of Ministers for the purpose.
    
4. A certificate from a bank operating in the State establishing deposit of the amount provided for in Article (42) of the Law according to the form prescribed by the Authority.
    
5. A statement of the insurance classes and types required to be carried out by the company in the State coupled with a statement of the general terms and conditions of the insurance operations of these classes and types.
    
6. A statement of the benefits, limitations, and terms incorporated in the insurance policy to be issued by the company.
    
7. A statement of the technical principles of the insurance operations of the two classes of insurance; insurance of persons and funds accumulation operation, the company requiring to carry out coupled with details of the principles of pricing these operations and a certificate by an actuary that the principles, benefits, and limitations of the insurance operations of these classes are accurate and apt be implemented.
    
8. A statement of surrender values or reductions (for insurance of persons and funds accumulation operations).
    
9. A specimen of each type of the insurance contracts to be issued by the company.
    
10. A list approved by the company's chairman showing names of the members of the board of directors, their nationalities and addresses.
     
11. A certified document showing names of the company's managers and senior officers, their nationalities, addresses and spheres and limits of their powers and a communication that they are authorized to manage the company and sign insurance contracts.
     
12. An official certificate establishing that none of the company's managers ever been convicted for a breach of honor or trust and a written declaration by each manager that he never at any time declared bankrupt.
     
13. Information on the company's general manager, the authorized manager or the senior officers and a proof establishing that they acquired the necessary qualifications and experiences or any other documents deemed fit by the Board.
     
14. Any other documents determined by the Authority.

In addition to the documents stated in Article (21) of the Regulation herein a branch of a foreign insurance company shall attach the following documents:

1. A duly certified document showing names of the branch's managers, their nationalities, addresses and spheres and limits of their powers including payment of the compensations and a communication that they are authorized to manage the branch, sign insurance contracts, and pay compensations when they are due.
    
2. An approved certificate from the pertinent authorities in the company's country of registration indicating that the company is established and registered in that country according to the prevailing laws along with details of the activity which the company is licensed to carry out in that country, its legal status, the subscribed and paid up capital, and names of the representatives in charge of managing the branch of the company in the State, and spheres and limits of their powers.
    
3. Any other documents determined by the Authority.

1. The registration application shall be presented to the Director General attached therewith the opinion of the pertinent Department of the Authority within (30) days as from date of submission or of the date when the required statements and documents by the pertinent Department been satisfied as the case might necessitate.
    
2. The Director General shall have the power to accept or reject the registration application and in case of rejection, the Director General shall specify the reasons led to so rejection. Accordingly, the pertinent Department of the Authority shall inform the applicant about the decision made by the Director General in this respect.
    
3. The concerned party may place an appeal to the Board opposing the rejection decision within (30) days as from date of notification of the decision. The resolution of the Board in this respect shall be final.

In case of accepting the registration application, the pertinent Department of the Authority shall register the company in the register and hand over the applicant a certificate instituting such registration according to the form as prescribed by the Authority.

Duration of a company registration in the register shall be one calendar year.

1. It's conditional on whosoever been appointed as a general manager, an authorized manager or a senior officer in the company to satisfy at least the following conditions:
    
   1. He should be a university graduate completed an accredited training course in the field of insurance or in any other related fields.
       
   2. Abundantly competent and experienced in insurance operations; having no less than 5 year experience in insurance operations (for UAE nationals) and 10 years (for non-UAE nationals).
       
   3. He should have worked as manager of one of the insurance departments of any duly licensed insurance company.
       
   4. He shouldn't be liable according to discretion of the Board for a serious violation of any of the provisions of the Law or the Companies Law in his capacity as general manager or board member of any of the companies including the liability of causing compulsory liquidation of the company.
   5. He should be of good conduct; never been convicted for a breach of honor, trust or public moral or declared bankrupt by the Court and not yet rehabilitated.
       
   6. He shouldn't ever been dismissed from any of the businesses of the company or any other company on disciplinary counts throughout the last five years.
       
   7. Any other requisites deemed fit by the Authority and issued upon a decision made by the Director General.
       
2. The company's chairman and the board members, its general manager, the authorized manager or whosoever acting on his behalf or any other senior official shall be prohibited to:
    
   1. Take part in the management of any other competing insurance company or a similar one
       
   2. Compete the business of the company or do any works or activity in conflict with the interests of the company.
       
   3. Carry out the work of an insurance agent or broker.
       
   4. Receive any commission for any of the works of insurance or reinsurance.
       
3. Those undertaking the management of a company or an employee therein as well shall be prohibited to represent any shareholder of the company he is working for.
    
4. In implementing the provisions of the Article herein the competing or similar companies shall mean the companies are carrying out operations of same classes and types of insurance.

1. A company registered in the register shall renew its registration annually by submitting an application to renew the registration to the pertinent Department of the Authority. The application shall be submitted on the form prescribed for the purpose by the Director General provided; submitting same being signed by the legal representative of the company along with the following documents:
    
   1. Reinsurance strategy for the next financial year.
       
   2. Any details or documents required from the company according to the provisions of the Law, or the regulations, directives or resolutions issued pursuant thereto which the company did not provide at some stage during the year
        
2. The Authority shall renew the company's registration after ascertaining fulfillment of the requisites for renewing the registration and payment of the prescribed fees.

1. The company shall notify the Authority about each and every alteration or amendment may occur in respect of the particulars of the registration application or the documents attached thereto whether by means of addendum, deletion or amendment.
    
2. Such notification shall be made by submitting an application for endorsement, according to the form prescribed by the Authority for the purpose, signed by the legal representative of the company to the pertinent Department of the Authority within (15) days as from date of occurrence of the alteration or amendment along with the documents verifying accuracy of the details included therein certified by the pertinent authorities and in conformity with the provisions of the Regulation herein.
    
3. Should the required alteration or amendment affected the operations' principles of both insurance of persons and funds accumulation or the benefits, limitations or the terms and conditions incorporated in the insurance policy related to these operations, the company shall submit along with the notification a certificate by an actuary that these principles, benefits, limitations or terms and conditions are accurate and apt be implemented.

Each company happened to accomplish its registration in the register shall put together its name, its registration number and date as in the register on all publications, contracts, correspondences, notices, certificates, and policies issued by the company.

1. The company shall start rendering its services to the public within (60) days as from date of its registration in the register.
    
2. The Director General upon a request by the company in special and justifiable cases may extend such a period to a similar period.
    
3. In case the company doesn't start its works within the approved period, the matter shall be referred to the Director General or to whomever he might authorize.
    
4. The Director General shall send a written notice to the company advising necessity of starting rendering its services to the public within seven working days as from date of notifying the person who legally representing the company.
    
5. In case the period stated in Paragraph four above lapsed without the company starting its works, the Director General shall issue a decision to suspend the registration of the company in the register for a period of six months at most.
    
6. In case the six month lapsed without the company starting its works, its registration in the register shall be suspended.
    
7. The company which its registration being suspended shall have the right to reverse the suspension decision by submitting an application to the Director General on the form prescribed by the Authority for the purpose coupled with the justifying reasons and a proof of paying the prescribed fees.
    
8. The Director General shall make his decision on the application within seven working days.
    
9. The company which its registration being suspended may submit an application for re-registration on the form prescribed for the same by the Authority.
    
10. In case of re-registration, the procedures designated to register a company in the register whether stated in the Law or the Regulation herein shall be adopted.

Should an insurance company established in the State intend to open a branch therefor inside or outside the State, the company shall submit an application as so to the Authority on the form prescribed by the Authority for the purpose.

The following documents shall be attached to the application to open a branch for a company established in the State:

1. The board of directors' resolution to open the branch.
    
2. An economic feasibility study and work plan of the branch.
    
3. The organizational structure of the branch and name list of the branch manager and the senior officers therein provided; including names of those persons authorized to sign on behalf of the branch.
    
4. Emiratization percentage rate shouldn't be less than that as determined by the pertinent official authorities.
    
5. An undertaking by the company to render specialized training courses in the field of insurance for UAE nationals working therewith.
    
6. Any other documents as determined by the Authority.

In case an insurance company established in the State intended to open a branch therefor outside the State, the company's financial power and technical capacity to open a branch therefor outside the State, the experience of those in charge, the extent of its compliance with the provisions of the Law, regulations, rules and resolutions issued pursuant to any of them should be taken into consideration.

It's conditional that the solvency margin at the consolidated statement level of the company established in the State intending to open a branch therefor outside the State not to be less than that percentage as determined by that country provided; such percentage be maintained by the company throughout its branch working term outside the State.

1. The insurance company branch established in the State shall start its works in the State within a period not to exceed (60) days as from date of registration of the branch in the register maintained by the Authority. However, the Authority may extend such period for a similar period.
    
2. The Authority's approval to open a branch inside the State for a company established in the State shall be deemed lawfully cancelled should the branch doesn't start its work within the period stated in paragraph (1) of the Article herein or within the extended period as the case might necessitate.

1. The insurance company established in the State intending to cease operations of its branch outside the State or change its place shall advise the Director General of the consent of the branch's homeland to cease operations of the branch or to shift it from a place to another according to the legislations of that country in this respect, if any.
    
2. Taking the legislations of the country of the branch into consideration, all the branch's rights and commitments following cessation of its operations shall be transferred to an insurance company established in the State.

The insurance company established in the State intending to cease operations of one of its branches inside the State shall inform the Director General about the company plans to cease the operations of the branch and transfer the rights and liabilities originated from the insurance policies issued by the branch to the main office or to any of its branches operating in the State or to any other insurance company registered in the register according to the procedures specified in Article (72) of the Law.

1. The Director General may make his decision to shut down the branch of an insurance company established in the State and strike off its registration in any of the following cases:
    
   1. Should the approval to open the branch happened to be made on basis of inaccurate information,
       
   2. Should the branch lack any of the principle requisites for granting the approval to open it.
       
   3. Should the branch violate the provisions of the Law, the executive regulation, the rules or directives issued by the Authority.
       
   4. Should the branch cease carrying out its works for a period of (12) month.
        
2. In case a decision to shut down and strike off the branch is being made, the Director General shall inform the company as so according to the provisions of the Law and the registration of the branch shall be stricken off the special register prescribed for the purpose by the Authority.
    
3. The company shall have the right to appeal the decision of the Director General before the Board within thirty days as from date of notification.
    
4. The resolution of the Board rejecting the appeal shall be final.

Should a licensed foreign insurance company intend to open a branch therefor in the State it shall submit an application as so to the Authority on the form prescribed by the Authority for the purpose.

1. The following documents shall accompany the application to open a branch for a foreign insurance company licensed in the State:
    
   1. An economic feasibility study and work plan of the branch.
       
   2. A certificate duly attested attached therewith a certified translation into Arabic establishing that the mother company is being evaluated and rated by one of the international bodies engaged in rating the insurance companies which in its respect the Board had issued a resolution specified therein the rating degree.
       
   3. An undertaking that Emiratization percentage rate in the company will not be less than the rate as determined by the pertinent official authority.
       
   4. An undertaking by the company to provide specialized training courses in the field of insurance for UAE nationals working in the company.
       
   5. The organizational structure of the branch, a list of the names of the branch's manager and the senior officers of the branch and qualifications of each one of them and particulars of the persons authorized to sign on behalf of the branch.
       
   6. Any other documents as determined by the Authority.
        
2. The provisions of the Articles (34), (36) and (37) of the Regulation herein shall be applied to the application procedures of opening a branch for a foreign company licensed to operate in the State.

1. The company carrying out any type of insurance of persons and funds accumulation operations shall examine the financial status of such type and estimate its payable liabilities once every three years by an actuary.
    
2. The assessment referred thereto in paragraph (1) of the Article herein shall include all the insurance operations concluded by the company inside and outside the State each one separately and should such activity being performed through a branch of a foreign insurance company, the assessment shall include only those insurance operations which their contract have been concluded inside the State or apt be implemented therein.

1. The Assessment referred thereto in paragraph (1) of the Article (40) of the Regulation herein shall be conducted whenever the company wanted to check its financial status to find out percentage of profit to be allotted to the shareholders or the policy holders or whenever the company wanted to announce such status.
    
2. The Authority may request the assessment referred to in paragraph (1) of the Article (40) of the Regulation herein be conducted at any time before lapse of three years as from date of the last assessment provided; lapse of one year at least as from date of that examination.

The actuary's report on the result of the examination and assessment referred thereto in Articles (40) and (41) of the Regulation herein shall contain at least the following related details:

1. Examination of the specimens of the documents, terms & conditions, and tariffs of the different types of insurances used by the company to verify extent of conformity with the specimens of the documents, terms & conditions, and tariffs approved by the Authority or communicated thereto in order to ensure adequacy and fairness of premium rates and that the company's work technique will not expose its financial status to danger and will not cause damages to those dealing with it.
    
2. Examination of the paid-up compensations to ensure their settlement according to the terms & conditions and documents and studying as well claims under settlement to verify reasons of nonpayment.
    
3. Examination of the reinsurance operations as well as the reinsurance arrangements to ensure their adequacy to protect the financial status of the company and also to ensure adequacy of the reinsurers' guarantees.
    
4. Examination of the company's investment operations to verify the company's compliance with the provisions of the Law and the executive regulation and rules issued pursuant thereto particularly those related to adequacy of the provisions' funds, their investments and that they are not been disposed without obtaining the Authority's approval.
    
5. Examination of the elements of the financial status of the company and verify whether the company is satisfying the increment rate of its assets over its liabilities at any time according to the provisions of the Law.
    
6. Examination of the company's capability to fulfill its liabilities at any time and extent of its ability to continue fulfilling its liabilities and the possibility of its failure to pay same.
    
7. Extent of the company's compliance with the licensing and registration requisites and give an account of the violations and nature of these violations, if any, and extent of their implications on the financial status of the company and the insurance market.
    
8. All insurance operations concluded or implemented by the company inside the State and their types.
    
9. All insurance operations concluded or implemented by the company outside the State and their types (for local insurance companies).
    
10. Extent of the company's compliance with the rules and principles of transparency and fairness.
     
11. Conflicts of interests whether already existed, or existing or expected to develop relevant to any of the company's board members, the general manager, or the authorized manager or any of its senior officials.
     
12. Any other information as determined by the Authority or the regulations issued according to the Law.

1. The company shall send to the Authority a copy of the actuary's report on the result of the examination and assessment referred to in Articles (40) and (41) of the Regulation herein within (60) days as from lapse of the period when the examination has been conducted accompanied with the following:
    
   1. An account of the valid insurance policies concluded by the company inside or outside the State on date of the examination and should the performer of the activity happened to be a foreign insurance company such an account shall include only the policies concluded inside the State or apt be implemented therein.
       
   2. An acknowledgment by those responsible for managing the company that all particulars and information needed to arrive at authentic report have been put at the disposal of the actuary.
        
2. On basis of a decision by the Director General after lapse of the six months period provided for in the Article herein, the company may be given an additional period to file the report provided; such period not to exceed three months.

1. Should it became evident to the Authority that the actuary's report doesn't reflect reality of the company's financial status it may order a re-examination on the company's own cost by an actuary to be chosen by the Authority for the purpose.
    
2. The actuary chosen by the Authority shall follow in his work the directives and procedures referred thereto in the Law, the Regulation herein and the other regulatory resolutions.

The companies registered in the register maintained by the Authority shall comply with disclosure and transparency principles in their transactions in the insurance market and with their clients and in respect of all documents, papers, publications, advertisements, propagandas, essays, and scientific materials issued by them according to the procedures and criterions of corporate governance set out by the Board for the purpose.

Whosoever violates the provisions of the Regulation herein shall be punished by the penalties provided for in the Law and as the case might necessitate.

1. The board of directors may impose the following disciplinary penalties on the company in case the violations prompting such imposition are established:
    
   1. Cease the company to carry out operations of one type or more of the insurance carried out by the company for a period no more than one month in case of violating the regulations, rules, directives or the resolutions issued by the Authority.
       
   2. Cessation for a period not to exceed three months should the company cease to carry out operation of any type of the insurance incorporated in its registration for (12) months.
       
   3. Cessation for a period not to exceed six months should the company lack any of the requisites needed for registration in the register according to the Law.
       
   4. Cessation for a period not to exceed nine months should the company fail to uphold the accrued financial liabilities or refuse to execute a final judiciary ruling relevant to an insurance contract concluded by the company.
        
2. In all the cases which in their respect the Board made a decision to cease the company's operations, such cessation shall not be relieved and the company shall not be allowed to start the work under question except after eliminating the violation which prompted such cessation on basis of a report to be filed by the Director General to the Board establishing elimination of the violation.
    
3. The Director General may take the following procedures when the violations are less important than the ones mentioned in the preceding paragraph:
    
   1. Send a warning to the company to draw its attention to the violation and to necessity of taking procedures to eliminate same.
       
   2. Serve a notice on the company demanding certain procedures to be taken or calling it to refrain from doing specific matter within a limited period.

The Director General shall issue the necessary directives to implement the provisions of the Regulation herein.

The Executive Regulation issued according to the Ministerial Decree No. (32) of 1984 concerning the Federal Law No. (9) of 1984 on Insurance Companies and Brokers shall be invalidated.

The Regulation herein shall be published in the Official Gazette and be effective as from date of its publication.