PIN 3.6.1

(1) Except as permitted in this Rule, a DIFC Incorporated Insurer must not effect any Direct Long-Term Insurance contract the terms of which include any of the following:
(a) investment components of Policy Benefits, that are wholly or partly guaranteed;
(b) options to receive Policy Benefits on expiry, maturity or surrender as annuities, where annuity rates are wholly or partly guaranteed at the inception of the contract;
(c) bonuses on participating contracts where those bonuses become vested Policy Benefits or guaranteed by the Insurer at a date prior to expiry, maturity or surrender; or
(d) other options or discretionary Policy Benefits that expose the Insurer to investment, expense or other risk that is not readily definable at the inception of the contract.
(2) An Insurer may request the permission of the DFSA to effect Direct Long-Term Insurance contracts with features of the kind referred to in (1). A request must be made in writing and must include:
(a) details of the terms of the proposed contracts;
(b) an explanation of how the Insurer intends to price such contracts, and to value them for the purposes of its capital adequacy calculations; and
(c) an explanation of how the Insurer intends to quantify, monitor and manage the risks to its capital adequacy represented by such features of contracts.
(3) The DFSA may give an Insurer permission to effect Direct Long-Term Insurance contracts having one or more features of the kind referred to in (1). Permission shall be given in writing and shall be subject to such terms or conditions as the DFSA may specify in its notice giving permission. Where any terms and conditions are imposed on the Insurer, the Insurer shall comply with such terms and conditions.
(4) The DFSA may on its own initiative at any time vary or revoke permission given under (3) above. Variation or revocation shall be communicated to the Insurer in writing.
(5) The procedures in Schedule 3 to the Regulatory Law apply to a decision of the DFSA under this Rule not to give permission or to impose conditions or restrictions or to vary or revoke permission.
(6) If the DFSA decides to exercise its power under this Rule not to give permission or to impose conditions or restrictions or to vary or revoke permission, the Insurer may refer the matter to the FMT for review.
[Added] RM46/2007 (Made 5th July 2007). [VER6/07-07]
[Amended] DFSA RM136/2014 (Made 21st August 2014). [VER14/06-14]