Entire Section

  • PIN 3.2 PIN 3.2 Establishment of long-term insurance funds

    • PIN 3.2.1

      An Insurer that is required, under the provisions of PIN section 3.3, to establish or maintain a Long-Term Insurance Fund in respect of a part of its business must identify separately in its books and records the assets, liabilities, revenues and expenses attributable to that business. Those assets, liabilities, revenues and expenses must be recorded separately and accounted for as a Long-Term Insurance Fund.


      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]

    • PIN 3.2.2

      Where an Insurer that is not a Protected Cell Company carries on Long-Term Insurance Business that, under the provisions of PIN section 3.3, must be attributed to a Long-Term Insurance Fund, it must either:

      (a) establish one or more Long-Term Insurance Funds; or
      (b) notify the DFSA in writing that the Insurer is deemed to constitute a single Long-Term Insurance Fund.

      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]

    • PIN 3.2.3 PIN 3.2.3

      When an Insurer that is a Protected Cell Company carries on, through a Cell, Long-Term Insurance Business that, under the provisions of PIN section 3.3, must be attributed to a Long-Term Insurance Fund, it must either:

      (a) establish, in respect of that Cell, one or more Long-Term Insurance Funds; or
      (b) notify the DFSA in writing that the Cell is deemed to constitute a single Long-Term Insurance Fund.
      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]

      • PIN 3.2.3 Guidance

        Because of the prohibition set out in COB part 1, Insurance Business of an Insurer that is a Protected Cell Company can only be carried out through its Cells.


        Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
        [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]

    • PIN 3.2.4

      An Insurer that is subject to a regulatory requirement in another jurisdiction to arrange its affairs or any part of its affairs in a manner that is equivalent or substantially equivalent to the maintenance of a Long-Term Insurance Fund required by this section, may make a written application to the DFSA for that arrangement of its affairs or that part of its affairs to be deemed for the purposes of these Rules to constitute a Long-Term Insurance Fund. If the DFSA approves that application, it must inform the Insurer in writing, and must state in its notice to the Insurer the manner in which the arrangement will be deemed for the purpose of these Rules to constitute a Long-Term Insurance Fund.

      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
      [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]

    • PIN 3.2.5

      An Insurer, or a Cell of an Insurer, that is deemed in accordance with PIN Rule 3.2.2(b) or PIN Rule 3.2.3(b) to constitute a single Long-Term Insurance Fund, shall be treated for all purposes relating to these Rules as though the Insurer had established a Long-Term Insurance Fund to which all of the assets and liabilities of the Insurer or of the Cell are attributed.


      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]

    • PIN 3.2.6

      Notwithstanding anything to the contrary contained in the above provisions, the DFSA may, at its sole discretion, direct that an Insurer which conducts Long-Term Insurance Business establish one or more Long-Term Insurance Funds in respect of its Long-Term Insurance Business or any part of such business. An Insurer shall establish one or more Long-Term Insurance Funds where so directed by the DFSA.

      [Added] RM46/2007 (Made 5th July 2007). [VER6/07-07]
      [Amended] DFSA RM50/2007 (Made 1st October 2007). [VER7/10-07]