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PIN 5.6.4

(1) Acquisition costs incurred in respect of insurance contracts entered into by an Insurer must be treated as payable:
(a) in the case of expenses directly related to the premiums in respect of the contract, at the same time as the premium is treated as receivable; and
(b) in the case of expenses not directly related to the premiums in respect of the contract, at the time the contract is effected.
(2) Expenses associated with the maintenance of insurance contracts, including, but not limited to, the costs of reporting to policyholders and the costs of managing investments, must be treated as payable as they are incurred.
Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
[Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]