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  • COB 7 COB 7 Core Rules — Insurance

    • COB 7.1 COB 7.1 Application and Interpretation

      • COB 7.1.1

        (1) The Rules in this chapter apply to an Authorised Firm with respect to the conduct in or from the DIFC of Insurance Business, Insurance Intermediation or Insurance Management to the extent specified in any Rule.
        (2) The Rules in this chapter do not apply to an Insurer that is an Authorised ISPV with the exception of the Rules in COB section 7.2.
        (3) Only COB section 7.2, COB Rules 7.3.1, 7.6.1 and 7.9.1 and COB sections 7.10 and 7.12 in this chapter apply to an Insurer, Insurance Intermediary or Insurance Manager when it carries on a Financial Service with or for a Market Counterparty.
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
        [Amended] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

      • COB 7.1.2

        In this chapter, unless otherwise stated, a reference to an "insurer" is a reference to both an Insurer and a Non-DIFC insurer.

        Derived from DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

      • COB 7.1.3

        (1) In this chapter, unless otherwise stated, a reference to a Client of an Insurance Manager is a reference to:
        (a) an insurer to whom the Insurance Manager provides its Insurance Management services; and
        (b) a Policyholder with whom the Insurance Manager interacts when carrying out its Insurance Management activities.
        (2) In COB section 7.12, when an Insurance Manager provides Insurance Management services to a Captive Insurer, a reference to a Client in (1)(a) is a reference to:
        (a) the Captive Insurer;
        (b) any shareholder of the Captive Insurer; and
        (c) any Person on whose behalf the Insurance Manager undertakes to establish that Person as an insurer.
        (3) In (2):
        (a) a Captive Insurer includes a Cell of a Protected Cell Company which is an Insurer; and
        (b) a shareholder includes a holder of Cell Shares.
        Derived from DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

      • Guidance

        The Rules in this chapter apply to Authorised Firms conducting Insurance Business and Insurance Management in relation to all classes of Contracts of Insurance. However, those Rules apply to Authorised Firms conducting Insurance Intermediation only in relation to Contracts of Insurance that are not contracts of Long-Term Insurance. Other COB Rules relating to the Financial Services of Advising on Financial Products or Credit and Arranging Credit or Deals in Investments will apply to advising and arranging on contracts of Long-Term Insurance.

        Derived from DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

    • COB 7.2 COB 7.2 Insurance Business, Management and Intermediation Restrictions

      • COB 7.2.1

        An Authorised Firm may only conduct Insurance Business or Insurance Intermediation with or for a Client to the extent specified in this section.

        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • COB 7.2.2 COB 7.2.2

        (1) An Insurer must ensure that it does not Effect a Contract of Insurance or Carry Out a Contract of Insurance through an establishment maintained by it in the DIFC where the contract is in relation to a risk situated within the State, unless the risk is situated in the DIFC or another Financial Free Zone, or the contract is one of re-insurance.
        (2) An Insurance Intermediary must ensure that it does not act as agent in relation to a Contract of Insurance where the contract is in relation to a risk situated within the State, unless the risk is situated in the DIFC or another Financial Free Zone, or the contract is one of re-insurance.
        (3) An Insurance Manager must ensure that it does not act in relation to a Contract of Insurance where the contract is in relation to a risk situated within the State, unless the risk is situated in the DIFC or another Financial Free Zone, or the contract is one of re-insurance.
        [Amended] DFSA RM61/2008 (Made 4th January 2009) [VER15/01-09]
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
        [Amended] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]
        [Amended] DSFA RM185/2016 (Made 7th December 2016). [VER28/02-17]
        [Added] DFSA RMI289/2020 (Made 16th December 2020). [VER37/02-21]

        • COB 7.2.2 Guidance

          The classes of insurance are set out in GEN App4. These include both insurance and reinsurance contracts relating to life insurance and non-life insurance (such as accident, sickness, property and travel insurance). However, the prohibitions in COB Rule 7.2.2 only apply to a Contract of Insurance that is not a contract of re-insurance.

          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
          [Amended] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]
          [Amended] DSFA RM185/2016 (Made 7th December 2016). [VER28/02-17]

      • COB 7.2.3

        An Insurer must ensure that it does not carry on, through an establishment maintained by it in the DIFC, both Long-Term Insurance Business and General Insurance Business unless the General Insurance Business is restricted to Class 1 or Class 2 or both.

        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • COB 7.2.4

        An Insurer which is a Protected Cell Company must ensure that all Insurance Business is attributable to a particular Cell of that Insurer.

        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • COB 7.2.5 COB 7.2.5

        An Insurer must not carry on any activity other than Insurance Business unless it is an activity in direct connection with or for the purposes of such business. For the purposes of this Rule, Managing Assets is not an activity in connection with or for the purposes of Insurance Business.

        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

        • COB 7.2.5 Guidance

          1. The following activities will normally be considered in direct connection with or for the purposes of Insurance Business carried on by an Insurer:
          a. investing, reinvesting or trading, as investor or rabb ul maal and for the Insurer's own account, that of its Subsidiary, its Holding Company or any Subsidiary of its Holding Company but not any other party, in Securities, loans, investment accounts, units or shares in collective investment funds, certificates of mudaraba, certificates of musharaka or other forms of investments that are intended to earn profit or return for the investor;
          b. rendering other services related to Insurance Business operations including, but not limited to, actuarial, risk assessment, loss prevention, safety engineering, data processing, accounting, claims handling, loss assessment, appraisal and collection services;
          c. acting as agent for another insurer in respect of contracts of insurance in which both insurers participate;
          d. establishing Subsidiaries or Associates engaged or organised to engage exclusively in one or more of the businesses specified above; and
          e. giving advice relating to its own Contracts of Insurance.
          2. The DFSA may give individual guidance on other business activities that may be determined to be in direct connection with Insurance Business.
          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
          [Amended] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

      • COB 7.2.6 COB 7.2.6

        An Insurance Manager must not underwrite on behalf of a Non-DIFC insurer in relation to a Contract of Insurance with or for a Retail Client, unless the Insurance Manager has obtained the prior written approval of the DFSA in respect of that insurer.

        Derived from DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

        • COB 7.2.6 Guidance

          For the purposes of COB Rule 7.2.6, an Insurance Manager should submit to the DFSA sufficient information to establish that the Non-DIFC insurer for which it proposes to act is fit and proper and is subject to adequate regulation in its home jurisdiction.

          Derived from DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

    • COB 7.3 COB 7.3 Communication of Information and Marketing Material

      • General Obligation

        • COB 7.3.1

          (1) When communicating any information in relation to Insurance Business, Insurance Intermediation or Insurance Management to a Person, an Authorised Firm must take reasonable steps to ensure that the communication is clear, fair and not misleading.
          (2) An Insurer, Insurance Intermediary or Insurance Manager must not, in any form of communication with a Person, including an agreement, attempt to limit or avoid any duty or liability it may have to that Person under legislation administered by the DFSA.
          (3) An Insurer or Insurance Intermediary must, when providing or directing marketing material to a Client, comply with the requirements in COB section 3.2, if the marketing material relates to a Direct Long-Term Insurance Contract.
          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
          [Amended] DFSA RM154/2015 (Made 9th December 2015) [VER25/02-16]
          [Amended] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

    • COB 7.4 COB 7.4 Client's Duty of Disclosure

      • COB 7.4.1

        An Insurer or Insurance Intermediary must explain to a Client:

        (a) the Client's duty to disclose all circumstances material to the insurance both before the insurance commences and during the continuance of the policy; and
        (b) the consequence of any failure by the Client to make such disclosures.
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • COB 7.4.2

        An Insurance Intermediary must explain to a Client that all answers or statements given on a proposal form, claim form or any other relevant document are the Client's own responsibility and that the Client is responsible for checking the accuracy of such information.

        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • COB 7.4.3

        If an Insurance Intermediary believes that any disclosure of material facts by a Client is not true, fair or complete, it must request the Client to make the necessary true, fair or complete disclosure, and if this is not forthcoming must consider declining to continue acting on that Client's behalf.

        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • COB 7.5 COB 7.5 Authorised Firm's Duty of Disclosure

      • COB 7.5 Guidance

        If an Authorised Firm is required to provide information to a Client or potential Client under this section or any other section in this Chapter before providing a service or doing anything, then the information should be provided in good time before providing the service or doing the thing so that the Client has sufficient time to make an informed decision.

        Derived from DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

      • COB 7.5.1

        (1) An Insurer, Insurance Intermediary or Insurance Manager must, subject to (3), disclose to a Client:
        (a) the name and address of the insurer or insurers effecting the Contract of Insurance;
        (b) its own name and address where different; and
        (c) contact details of the Person to whom a claim is to be notified.
        (2) The disclosures in (1) must be made before effecting or placing the Contract of Insurance, or as soon as reasonably practicable thereafter.
        (3) An Insurance Manager is not required to make the disclosure under (1) to an insurer to whom it provides Insurance Management services.
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
        [Amended] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

      • COB 7.5.2 COB 7.5.2

        (1) An Insurance Intermediary or Insurance Manager must, subject to (3), disclose to a Clientif:
        (a) it has a direct or indirect holding representing 10% or more of the voting rights or capital in an insurer; or
        (b) an insurer, or its parent undertaking, has a direct or indirect holding representing 10% or more of the voting rights or capital in the Insurance Intermediary or Insurance Manager.
        (2) The disclosures in (1) must be made before providing Insurance Intermediation or Insurance Management services to the Client.
        (3) An Insurance Manager is not required to make a disclosure under (1) to an insurer to whom it provides Insurance Management services.
        Derived from DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

        • COB 7.5.2 Guidance

          An Insurance Intermediary or Insurance Manager is required to disclose the information under COB Rule 7.5.1(1) and COB Rule 7.5.2(1) to any Policyholder with whom it interacts when carrying out its Insurance Intermediation or Insurance Management activities.

          Derived from DFSA DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

      • COB 7.5.3 COB 7.5.3

        (1) An Insurance Intermediary must, before providing any Insurance Intermediation service to a Person as a Retail Client, disclose whether any advice or information is or will:
        (a) be provided on the basis of a fair analysis of the market;
        (b) not be provided on the basis of a fair analysis of the market because of any contractual agreement it has with any particular insurer or insurers to deal with only their products; or
        (c) even if there are no contractual agreements of the type referred to in (b), not be provided on the basis of a fair analysis of the market.
        (2) If (1) (b) or (c) applies, the Insurance Intermediary must, if requested by the Retail Client, provide to that Client a list of insurers with whom it deals or may deal in relation to the relevant Contracts of Insurance.
        (3) An Insurance Intermediary must, before providing any Insurance Intermediation service to a Client, disclose to that Client whether it acts on behalf of an insurer or any other Person or acts independently on behalf of Clients.
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
        [Amended] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

        • COB 7.5.3 Guidance

          1. An Insurance Intermediary should not represent itself as providing advice or information on the basis of a fair analysis of the market under COB Rule 7.5.3(1) unless it has considered a sufficiently broad range of Contracts of Insurance and based its decision on an adequate analysis of those contracts.
          2. Insurance Brokers act for Clients who are Policyholders. In doing so, they may claim under COB Rule 7.5.3(3) that they act 'independently' for the Clients.
          3. The DFSA expects an Insurance Broker which holds itself out to a Client as acting 'independently' for the Client to be able to demonstrate its independence to the DFSA. Factors that the DFSA would take into account when assessing if an Insurance Broker has acted independently include whether that broker:
          (a) has assessed a sufficiently large number of insurance products available on the market, and those products are sufficiently diverse in terms of their types and the issuers, to be able to suit the Client's needs and objectives;
          (b) is free to select insurance products from a sufficiently large number of insurers — for example, if a broker has close links with insurers, or exclusivity clauses in arrangements with insurers whose products they can select, the broker may not be able to claim it is independent; and
          (c) has disclosed clearly to the Client all commissions and other economic benefits it or a Group member receives from insurers with whom it places insurance.
          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
          [Amended] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

    • COB 7.6 COB 7.6 Disclosure of Costs and Remuneration

      • COB 7.6.1 COB 7.6.1

        An Insurer, Insurance Intermediary or Insurance Manager must provide details of the costs of each Contract of Insurance or Insurance Intermediation service or Insurance Management service offered to a Client.

        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

        • COB 7.6.1 Guidance

          1 The disclosure required by this Rule should include any premiums, fees, charges or taxes payable by the Client, whether or not these are payable to the Authorised Firm.
          2 The disclosure should be made in terms readily understandable by the Client, taking into account the knowledge held by that Client in relation to the type of insurance in question.
          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • COB 7.6.2

        An Insurer or Insurance Intermediary must, where any premium is payable through a Credit Facility made available to a Retail Client, disclose any interest, profit rate or charges payable by the Client for using that facility.

        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • COB 7.6.3

        An Insurer, Insurance Intermediary or Insurance Manager must ensure that it does not impose any new costs, fees or charges without first disclosing the amount and the purpose of those charges to the Client.

        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • COB 7.6.4

        (1) An Insurer, Insurance Intermediary or Insurance Manager must, on the request of any Client, disclose to that Client all commissions and other economic benefits accruing to the Authorised Firm or any member of the same Group from:
        (a) any Insurance Intermediation business;
        (b) any Insurance Management business; or
        (c) any other business connected to or related to the provision of such business;
        transacted by the Authorised Firm on behalf of that Client.
        (2) The requirement to disclose the information under (1) does not apply where an Insurance Intermediary acts solely on behalf of a single insurer, and this fact has been disclosed to the Client.
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • COB 7.7 COB 7.7 Information About the Proposed Insurance

      • COB 7.7.1

        An Insurer or Insurance Intermediary must provide adequate information in a comprehensive and timely manner to enable a Client to make an informed decision about the Contract of Insurance that is being proposed.

        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • COB 7.7.2 COB 7.7.2

        Without limiting the generality of the disclosure obligation under COB section 7.5, an Insurer or Insurance Intermediary must, for the purpose of complying with the obligation under that section:

        (a) provide to a Client information about the key features of any insurance proposed including the essential cover and benefits, any significant or unusual restrictions, exclusions, conditions or obligations, and the applicable period of cover; and
        (b) explain, except where the insurance cover is sourced from a single insurer, the differences in and the relative costs of similar types of insurance as proposed.
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

        • COB 7.7.2 Guidance

          When deciding to what extent it is appropriate to explain the terms and conditions of a particular insurance the Insurer or Insurance Intermediary should take into consideration the knowledge held by the Client in relation to the type of insurance in question.

          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • Specific Disclosure for Long-Term Insurance

        • COB 7.7.3

          Where an Insurer or an Insurance Intermediary proposes Direct Long-Term Insurance to a Retail Client, the disclosure for the purposes of this section must include:

          (a) the method of calculation of any bonuses;
          (b) an indication of surrender values and paid-up values, and the extent to which any such values are guaranteed;
          (c) for unit-linked insurance contracts, definition of the units to which they are linked, and a description of the underlying assets;
          (d) the basis of any projections included in the information; and
          (e) any facts that are material to the decision to invest, including risks associated with the investment and factors that may adversely affect the performance of the investments.
          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • [Deleted]

        [Deleted] DFSA RM69/2010 (Made 1st March 2010). [VER18/03-10]

        • COB 7.7.4 [Deleted]

          [Deleted] DFSA RM69/2010 (Made 1st March 2010). [VER18/03-10]

    • COB 7.8 COB 7.8 Suitability

      • COB 7.8.1

        An Insurer or an Insurance Intermediary must comply with the suitability requirement set out in COB section 3.4 when conducting any Insurance or Insurance Intermediation Business with or for a Retail Client in respect of Direct Long-Term Insurance.

        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • COB 7.8.2 COB 7.8.2

        (1) Subject to COB Rule 7.8.3, an Insurer or Insurance Intermediary must only make a recommendation to a Retail Client to enter into a Contract of Insurance that is General Insurance where it has taken reasonable steps to ensure that the recommended Contract of Insurance is suitable in light of the Client's demands and needs.
        (2) The Insurer or Insurance Intermediary must obtain from a Retail Client such information as is necessary to identify the Client's circumstances and objectives, and consider whether the terms of the particular contract of General Insurance meet the requirements identified.
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

        • COB 7.8.2 Guidance

          Simple and easy to understand general insurance products, such as motor insurance, do not require a detailed suitability assessment. However, in other cases, the information which an Insurer or Insurance Intermediary would generally need to have about the Client’s needs and demands, before making a recommendation about a product, include:
          a. details relating to the purpose for which the Client is seeking to obtain insurance cover (e.g., what risks the Client wishes to cover);
          b. the Client’s circumstances, including financial, to assess the type of exclusions and level of excess the Client wishes to accept, or is suitable for the particular Client; and
          c. any other matters relevant to the particular type of insurance product or market.
          [Added] DFSA RMI259/2019 (Made 1st January 2020). [VER/34/01-20]

      • COB 7.8.3 COB 7.8.3

        An Insurer and an Insurance Intermediary may only recommend to a Client a contract of General Insurance that does not meet all the Client's requirements if it clearly explains to the Client, at the point of making the recommendation, that the contract does not fully meet the Client's requirements and the differences in the insurance recommended.

        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

        • COB 7.8.3 Guidance

          When deciding what level of explanation is appropriate for a Client to whom a contract of insurance that does not fully meet that Client's requirements is recommended, the Insurer or Insurance Intermediary should take into consideration the knowledge held by the Client in relation to the type of insurance in question. The explanation should include sufficient information so that the Client can understand easily the differences between what is recommended and the Client’s requirements, and the advantages and disadvantages of the recommended insurance, including any financial or other risks the Client may face if the recommended policy does not fully meet the Client’s requirements.

          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
          [Added] DFSA RMI259/2019 (Made 1st January 2020). [VER/34/01-20]

      • COB 7.8.4

        Where an Insurance Intermediary is instructed to obtain insurance which is contrary to the advice that it has given to a Client, the Insurance Intermediary must obtain from the Client written confirmation of the Client's instructions before arranging or buying the relevant insurance.

        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • COB 7.9 COB 7.9 Managing Conflicts of Interest

      • COB 7.9.1 COB 7.9.1

        (1) An Insurance Intermediary or Insurance Manager must manage any conflict of interest to ensure that all its Clients are fairly treated and not prejudiced by any such interests.
        (2) An Insurance Intermediary or Insurance Manager must manage the conflict of interest by disclosing such conflict to the Clients in writing either generally or in relation to a specific Transaction.
        (3) If an Insurance Intermediary or Insurance Manager is unable to manage a conflict of interest, it must decline to act for the Client.
        Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

        • COB 7.9.1 Guidance

          1. An Insurance Intermediary, when considering how it manages conflicts of interests, should clearly identify the capacity in which it acts and to whom it owes duties. For example, if it is acting as an Insurance Broker, it is acting as an agent for the policyholder and it has a duty to act in the best interests of the policyholder. If it is acting as an Insurance Agent, it has a duty to act in the best interests of its principal i.e. the insurer or insurers from whom it holds an authority to act as agent.
          2. While the Rules do not prohibit an Insurance Intermediary from acting for both an insurer and policyholder in relation to the same risk, such an arrangement could result in conflicts of interest that are hard to manage. If an Insurance Intermediary proposes to act for both an insurer and policyholder in relation to the same risk, it should, under COB Rule 7.9.1(2), clearly disclose that information in a timely manner. The DFSA expects the firm to at least:
          a. notify both parties about the procedures it will follow if acting in the interest of the policyholder or the insurer is likely to impair its ability to act in the interests of the other party; and
          b. if one or both parties express concerns relating to the proposed process, decline to act for both parties under COB Rule 7.9.1(3) and instead act for only one party.
          3. An Insurance Manager will also need to identify and manage conflicts of interest that arise in the course of carrying on its business, for example, in the course of settling claims.
          Derived from DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

    • COB 7.10 COB 7.10 Placement of Insurance

      • Instructions

        • COB 7.10.1

          An Insurance Intermediary or Insurance Manager must not place a Contract of Insurance with or on behalf of an insurer unless it has satisfied itself on reasonable grounds that the insurer may lawfully effect that contract under the laws of the jurisdictions in which the insurer and the risk are located.

          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
          [Amended] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

      • Quotations

        • COB 7.10.2

          When giving a quotation, an Insurance Intermediary or Insurance Manager must take due care to ensure the accuracy of the quotation and its ability to obtain the insurance at the quoted terms.

          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
          [Amended] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

      • Confirmation of Cover

        • COB 7.10.3

          (1) An Insurer, in Effecting Contracts of Insurance, must promptly document the principal economic and coverage terms and conditions agreed upon under any Contract of Insurance and finalise such contract in a timely manner.
          (2) An Insurer, Insurance Intermediary or Insurance Manager must, as soon as reasonably practicable, provide a Client with written confirmation and details of the insurance which it has effected for the Client or has obtained on behalf of the Client, including any changes to an existing Contract of Insurance.
          (3) An Insurer, Insurance Intermediary or Insurance Manager must, as soon as reasonably practicable, provide the Client with the full policy documentation where this was not included with the confirmation of cover.
          (4) In (2) and (3), a Client of an Insurance Manager is any Policyholder with whom the Insurance Manager interacts when carrying on its Insurance Management activities.
          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
          [Amended] DFSA RM97/2012 (Made 24th July 2012) [VER20/07-12]
          [Amended] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

    • COB 7.11 COB 7.11 Providing an Ongoing Service

      • Amendments to and Renewal of Insurance

        • COB 7.11.1

          (1) An Insurer or Insurance Intermediary must deal promptly with a Client's request for an amendment to the insurance cover and provide the Client with full details of any premium or charges to be paid or returned.
          (2) An Insurer or Insurance Intermediary must provide a Client with written confirmation when the amendment is made and remit any return premium or charges due to the Client without delay.
          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

        • COB 7.11.2

          An Insurer or Insurance Intermediary must give adequate advance notification to a Client of the renewal or expiration date of an existing insurance policy so as to allow the Client sufficient time to consider whether continuing cover is required.

          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

        • COB 7.11.3

          On expiry or cancellation of the insurance, at the request of the Client, an Insurer or Insurance Intermediary must promptly make available all documentation and information to which the Client is entitled.

          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • Claims

        • COB 7.11.4

          Where an Insurance Intermediary handles insurance claims it must:

          (a) on request, give the Client reasonable guidance in pursuing a claim under the relevant policy;
          (b) handle claims fairly and promptly and keep the Client informed of progress;
          (c) inform the Client in writing, with an explanation, if it is unable to deal with any part of a claim; and
          (d) forward settlement of any claim, as soon as reasonably practicable, once it has been agreed.
          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

        • COB 7.11.5

          An Insurer must:

          (a) handle claims fairly and promptly;
          (b) keep the Client informed of the progress of the claim;
          (c) not reject a claim unreasonably;
          (d) if only part of a claim is accepted:
          (i) provide a clear statement about the part of the claim that is accepted; and
          (ii) give clear reasons for rejecting that part of the claim that has not been accepted; and
          (e) settle the claim promptly.
          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

    • COB 7.12 COB 7.12 Insurance Monies

      • Application

        • COB 7.12.1

          This section applies to an Insurance Intermediary and an Insurance Manager, in respect of activities carried on in or from the DIFC.

          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

      • General

        • COB 7.12.2 COB 7.12.2

          (1) Insurance Monies are, subject to (2), any monies arising from Insurance Intermediation or the Insurance Management business which are any of the following:
          (a) premiums, additional premiums and return premiums of all kinds;
          (b) claims and other payments due under Contracts of Insurance;
          (c) refunds and salvages;
          (d) fees, charges, taxes and similar fiscal levies relating to Contracts of Insurance;
          (e) discounts, commissions and brokerage; or
          (f) monies received from or on behalf of a Client of an Insurance Manager, in relation to his Insurance Management business.
          (2) Monies are not Insurance Monies where there is a written agreement in place between the Insurance Intermediary or Insurance Manager and the insurer to whom the relevant monies are to be paid (or from whom they have been received) under which the insurer agrees that:
          (a) the Insurance Intermediary or Insurance Manager, as the case may be, holds as agent for the insurer all monies received by it in connection with Contracts of Insurance effected or to be effected by the insurer;
          (b) insurance cover is maintained for the Client once the monies are received by the Insurance Intermediary or the Insurance Manager, as the case may be; and
          (c) the insurer's obligation to make a payment to the Client is not discharged until actual receipt of the relevant monies by the Client.
          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

          • COB 7.12.2 Guidance

            If an Insurance Manager does not have in place risk transfer arrangements referred to in COB Rule 7.12.2(2), the Insurance Manager holds Insurance Monies, so far as they belong to Policyholders, at the risk of those Policyholders.

            Derived from DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

        • COB 7.12.3 [Deleted]

          [Deleted] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

        • COB 7.12.4 [Deleted]

          [Deleted] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

      • Insurance Money Segregation

        • COB 7.12.5

          (1) An Insurance Intermediary or Insurance Manager when dealing with Insurance Monies must:
          (a) maintain one or more separate Insurance Bank Accounts with an Eligible Bank;
          (b) ensure that each Insurance Bank Account contains in its title the name of the Authorised Firm, together with the designation Insurance Bank Account (or IBA);
          (c) prior to operating an Insurance Bank Account, give written notice to, and request written confirmation from, the Eligible Bank that the bank is not entitled to combine the Insurance Bank Account with any other account unless that account is itself an Insurance Bank Account held by the Authorised Firm, or to any charge, encumbrance, lien, right of set-off, compensation or retention against monies standing to the credit of the Insurance Bank Account;
          (d) pay all Insurance Monies directly and without delay into an Insurance Bank Account;
          (e) use an Insurance Bank Account only for the following purposes:
          (i) the receipt of Insurance Monies;
          (ii) the receipt of such monies as may be required to be paid into the Insurance Bank Account to ensure compliance by the Authorised Firm with any conditions or requirements prescribed by the DFSA;
          (iii) the payment to Clients or to insurers of monies due under Insurance Intermediation Business transactions;
          (iv) the payment of all monies payable by the Authorised Firm in respect of the acquisition of or otherwise in connection with Approved Assets;
          (v) the withdrawal of brokerage, management fees and other income related to Insurance Intermediation Business, either in cash or by way of transfer to an account in the name of the Intermediary which is not an Insurance Bank Account, provided that no such sum may be withdrawn from the Insurance Bank Account before the time at which that amount may be brought into account as income of the Insurance Intermediary;
          (vi) the withdrawal of monies that are required to be transferred under (2) or COB Rule 7.12.9A;
          (vii) the withdrawal of monies paid into the Insurance Bank Account in error; and
          (viii) the withdrawal of any monies credited to the Insurance Bank Account in excess of those required by any conditions and requirements prescribed by the DFSA;
          (f) ensure that any amount held in the Insurance Bank Account or other Approved Assets, together with any amount due and recoverable from insurance debtors, is equal to, or greater than the amount due to insurance creditors; and
          (g) take immediate steps to restore the required position if at any time it becomes aware of any deficiency in the required segregated amount.
          (2) If an Eligible Bank has not provided the written confirmation referred to in (1)(c) within 40 business days after the Authorised Firm made the request, the Authorised Firm must as soon as possible withdraw Insurance Monies held in the Insurance Bank Account with that Eligible Bank and deposit them in an Insurance Bank Account with another Eligible Bank.
          (3) An Insurance Intermediary or Insurance Manager is not required to comply with the requirement in (1)(c) if it has no account, other than one or more Insurance Bank Accounts, with the Eligible Bank.
          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
          [Amended] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

        • COB 7.12.6

          An Insurance Intermediary or Insurance Manager may not obtain a loan or overdraft for any purpose relating to an Insurance Bank Account unless that advance:

          (a) is on a bank account which is designated as an Insurance Bank Account, and the loan or overdraft is used for payment to Clients or to insurers of monies due under Insurance Intermediation transactions;
          (b) does not give rise to a breach of the requirements of COB Rule 7.12.5(e); and
          (c) is of a temporary nature and is repaid as soon as reasonably practicable.
          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

        • COB 7.12.7

          An Insurance Intermediary or Insurance Manager must hold Insurance Monies either in an Insurance Bank Account or in Approved Assets.

          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

        • COB 7.12.8

          An Insurance Intermediary or Insurance Manager must ensure that Approved Assets are:

          (a) registered in the name of the Insurance Intermediary or Insurance Manager and designated as being an 'Insurance Bank Account'; or
          (b) held for the Insurance Bank Account of the Insurance Intermediary or Insurance Manager at the bank at which such Insurance Bank Account is held.
          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
          [Amended] DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

        • COB 7.12.9

          An Insurance Intermediary or Insurance Manager must ensure that monies, other than interest, arising from Approved Assets or their realisation, sale or disposal are paid into an Insurance Bank Account.

          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

        • COB 7.12.9A

          (1) An Insurance Intermediary or Insurance Manager must not hold Insurance Monies for a Client in an Insurance Bank Account with an Eligible Bank outside the State, unless it has previously disclosed in writing to the Client:
          (a) that the money may be held in an Insurance Bank Account outside the State;
          (b) that in such circumstances, the legal and regulatory regime applying to the Eligible Bank may be different from that in the State;
          (c) in the event of failure of the Eligible Bank, the money may be treated in a different way to that which would apply if the money were held by a bank in the State;
          (d) if it is the case, that the particular Eligible Bank has not accepted that it has no right of set-off or counterclaim against money held in the Insurance Bank Account in respect of any sum owed on any other account of the Authorised Firm; and
          (e) that the Client may notify the Authorised Firm if he does not wish the money to be held in an Insurance Bank Account outside the State or in a particular jurisdiction.
          (2) If a Client notifies an Insurance Intermediary or Insurance Manager in writing that he does not wish the Insurance Monies to be held in an Insurance Bank Account outside the State or in a particular jurisdiction, the Insurance Intermediary or Insurance Manager must ensure that, no later than 20 days after receiving the notice, either:
          (a) the Insurance Monies are transferred into an Insurance Bank Account with an Eligible Bank in the State, or in a jurisdiction to which the Client has not objected, as the case may be; or
          (b) if no such alternative arrangement can be made, the Insurance Monies are returned to the Client.
          Derived from DFSA RM182/2016 (Made 19th June 2016) [VER27/08-16]

        • COB 7.12.10

          An Insurance Intermediary or Insurance Manager may not hold Insurance Monies in Approved Assets until it has given written notice to and received written notice from the bank referred to in COB Rule 7.12.8(b) that the bank is not entitled to any charge, encumbrance, lien, right of set-off, compensation or retention against Approved Assets held for the Insurance Intermediary's or Insurance Manager's Insurance Bank Account.

          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

        • COB 7.12.11

          An Insurance Intermediary or Insurance Manager may only use Approved Assets as security for a loan or overdraft where that loan or overdraft is for a purpose relating to an Insurance Bank Account as permitted by COB Rule 7.12.6.

          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

        • COB 7.12.12

          Where Insurance Monies are held in Approved Assets whose rating drops below the minimum stipulated within the definitions, that investment or asset will cease to be an Approved Asset and the Insurance Intermediary or Insurance Manager must dispose of the investment or asset as soon as possible and no later than within 30 days of the rating change.

          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

        • COB 7.12.13

          An Insurance Intermediary or Insurance Manager may not use derivatives in the management of Insurance Monies except for the prudent management of foreign exchange risks.

          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

        • COB 7.12.14

          An Insurance Intermediary who has a credit balance for a Client who cannot be traced should not take credit for such an amount except where:

          (a) he has taken reasonable steps to trace the Client and to inform him that he is entitled to the money;
          (b) at least six years from the date the credit was initially notified to the Client; and
          (c) COB Rule 7.12.5(f) will continue to be satisfied after the withdrawal of such money.
          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]

        • COB 7.12.15

          An Insurance Intermediary must keep records of all sums withdrawn from the Insurance Bank Account or realised Approved Assets as a result of credit taken under COB Rule 7.12.14 for at least six years from the date of withdrawal or realisation.

          Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]