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PIN A4.7.1

An Insurer must calculate an off-balance sheet liability risk component if the Insurer has issued guarantees, including put options serving as guarantees, letters of credit or any other credit substitute (other than an insurance contract) in favour of another party, so that the Insurer is exposed to the risk of having to make payment on those instruments should the guaranteed party default.


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