Article (25)
FED LAW 6/2007 Effective from 15/2/20071. 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. The company shall not carry out life assurance and funds accumulation operations together with the operations of properties and life liability insurances.
2. The existing companies engaged in the two types of insurance as provided for in Para (1) of the Article herein shall adjust their situations within five years as from date of enforcing the law herein. However, the said period may be extended by resolution of the Cabinet.
3. The existing companies engaged in the two types of insurance as provided for in Para (1) of the law herein upon enforcing the provisions of the law herein shall abide by the directives issued by the Board organizing the operations of each of these two types of insurances.