The Insurance License

التاريخ

2006-07-19

Article (45)	A-	None of the Companies, stipulated in paragraph (A) of Article (25) of this Act, shall not be permitted to transact insurance business before obtaining the License from the Board by virtue of the provisions of this Act.
	B-	The conditions for granting the License to transact insurance business, the requirements thereof, and the documents that need to be submitted for each type of insurance, the requirements for the annual renewal of the License, corporate governance, shall be determined by Instruction to be issued by the Board for this purpose. The provisions of this paragraph shall be applied to Reinsurance Company.
	C-	Should it become evident, that granting the License was based on incorrect information that License shall be cancelled by a Board Decision.

Article (46)	The Company shall not be permitted to reinsure the insurance contracts for any class of insurance business transacted, with another Company unless such Company was licensed to transact that class.

Article (47)	The Board may, upon the recommendation of the Director General, suspend the license of the Company for a class of insurance or more, transacted by the Company, for a period not exceeding one year, in any of the following cases:-
	A-	The Company is in violation of the provisions of this Act, Regulations and Instructions issued by virtue thereof.
	B-	The Company lost any of the conditions required for the license granted to the Company by virtue of the provisions of this Act.
	C-	The Company has not transacted business in any of the insurance classes included in the license, or stopped to transact this business for a year.
	D-	The Company has failed to fulfill its financial obligations.
	E-	The Company has refrained from enforcing a final judgment related to an insurance contract.

Article (48)	A-	Should the Company remove the cause of suspending the License in any of the cases stipulated in Article (47) of this Act during the period of suspension, or within one year as of the date of suspension, the Board shall upon the recommendation of the Director General issue a decision permitting the Company to continue transacting insurance business.
	B-	If the Company did not remove the cause of suspending the License within a maximum period of one year from the date of suspension, the license for that class shall be cancelled by a Board decision.

Article (49)	A-	The procedures relevant to the suspension or cancellation of the License and the authorities delegated to the Director General in respect thereof, shall be determined by virtue of Instructions to be issued by the Board for this purpose.
	B-	Upon the decision of suspension or cancellation of the License for one class of insurance or more, the following shall be implemented:-
		1.	The Company shall be prohibited from concluding insurance contracts in any of these classes; otherwise the Company shall be subject to the penalties stipulated in this Act.
		2.	All rights and obligations arising from the contracts concluded prior to the suspension or cancellation of the license, shall be considered valid and operative, for which the Company shall remain liable.

Article (50)	The Company, which has had its license cancelled, may submit to the Director General, within a period not exceeding one year as of the date of cancellation, a request which shall be attached with the documents proving that the causes which lead to cancellation are removed. The Board shall, upon the recommendation of the Director General, issue a decision in this respect within a period not exceeding two months.

Article (51)	A-	Should the Company, whose License for all insurance business transacted been cancelled, refrain from submitting the request for obtaining a License after the expiry of the period stipulated in Article (50) of this Act, or should the Board deny the request, the Company shall commence voluntary liquidation procedures within one month as of the date of the expiry of the duration, or from the date of being notified of the decision of the Board. If the Company did not proceed with these procedures, the company shall be liquidated pursuant to the provisions of this Act.
	B-	The License of the Company shall be deemed cancelled, de facto, if a decision to liquidate it voluntarily has been taken, if a final competent Court judgment has been issued to liquidate it compulsorily, or if it has been declared bankrupt.

sdc ref id

297