7-1

Premiums generated from all types/lines of primary insurance business must be paid directly by Clients to Companies. Insurance Brokers must instruct Clients to this effect in writing prior to inception, and retain records to show the Clients’ acknowledgment to this condition. Insurance Brokers are prohibited from collecting Premiums under any circumstances.

7-2

Premiums generated from reinsurance operations are subject to the reinsurance brokerage agreement concluded between the Reinsurer and the Insurance Broker.

7-3

Claim Settlements and Premium refunds resulting from all types of primary insurance business must be paid directly by Companies to Clients. Insurance Brokers are prohibited from collecting Claim Settlements or Premium refunds.

7-4

Claim Settlements and Premium refunds resulting from all types of reinsurance business are subject to the reinsurance brokerage agreement concluded between the Reinsurer and the Insurance Broker.

7-5

Insurance Companies and Insurance Brokers must establish and maintain all the necessary electronic means to facilitate the application of this Article.

7-6

a. 

When the Insurance Broker conducts Insurance Brokerage undertakings that lead to the conclusion of an Insurance Policy with a certain Client, then the Insurance Broker becomes entitled to receive Remuneration from the Company upon inception and renewal of the Insurance Policy, as long as the Insurance Brokerage agreement is valid.

b.

I. 

Companies are prohibited from communicating directly or indirectly with the Clients of the Insurance Broker, whether during inception or at renewals for the purpose of depriving it from its Remuneration.

II.

Notwithstanding what it stated in the former sub-Article (I) of this Article, Companies may communicate with Clients of Insurance Brokers if Clients owe due and unpaid premiums or instalments thereof to the Company.

7-7 

a. 

A Company must pay the due Remuneration to the Insurance Broker within the time specified in the Insurance Brokerage agreement, which in all cases must not exceed ten (10) business days from the date of receipt of such payment(s) of premium(s) by the Company.

b.

If the premium was to be paid through instalments, then the Company must pay the Insurance Broker its share of each instalment within the time specified in the Insurance Brokerage agreement, which in all cases must not exceed ten (10) business days from the date of receipt of such instalment.

c.

Notwithstanding what is stipulated in paragraph (b) of this Article, Insurance Authority Board of Directors’ Decision No. (49) of 2019 Concerning Instructions for Life Insurance and Family Takaful Insurance applies to life insurance and family Takaful Insurance policies.