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Article 22

IA-BOD-RES 15/2013 Effective from 9/10/2013
  1. In case of a breach by the Insurance Broker of the Law, regulations, instructions, resolutions or circulars issued thereunder, the IA may sanction any of the following penalties:
     
    1. Serve a warning to the Insurance Broker and compel them to remove the breach
      causes and take the necessary actions to prevent recurrence it in the future.
       
    2. Suspend the Insurance Broker from practicing the activity for maximum period of
      one year.
       
  2. The IA may cancel the Insurance Broker’s license in any of the following cases:
     
    1. Losing any of the license conditions stipulated herein.
       
    2. Gross breach of any of the duties and obligations.
       
    3. Failure to renew the license, or to pay the annual renewal fees or prescribed delay
      fines.
       
    4. Issuance of a final court judgment declaring the Insurance Broker bankrupt.
       
    5. The dissolution and liquidation of the Insurance Broker.
       
    6. If the Insurance Broker fails practice the licensed activity within 6 months from
      the date of granting the license.
       
    7. If the Insurance Broker fails practice the activity after a suspension period.
       
    8. If it is found out that the license was granted on the basis of invalid information or data, or based on an undertaking that has not been implemented as determined by the IA.
       
  3. The cancelation of the license shall entail the following:
     
    1. Publishing the decision to cancel the Insurance Broker’s license and write off its
      name from the Insurance Brokers Register as soon as the decision is published in
      two widely distributed daily newspapers in the UAE, one of them in Arabic
      language, at the Insurance Broker’s own expense. The IA may pay such expenses
      from the Insurance Broker’s Letter of Guarantee.
       
    2. Recover the Letter of Guarantee and terminate the professional indemnity
      insurance policy after 3 months from the publication date once the IA approved
      the same; and after the settlement of all transactions of the Insurance Broker and
      ensuring there are no obligations towards the IA, clients, companies or any
      beneficiaries arising from practicing the Insurance Brokerage business.
       
    3. No application for license may be submitted before the lapse of (3) years from the
      date of issuing the license cancelation decision.