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PIN A6.7.3

The amount in respect of a guarantee, letter of credit or other credit substitute (other than an insurance contract) is obtained by calculating, for the nominal amount of the guarantee, letter of credit or other credit substitute, a default risk component as set out in PIN section A6.4 and an investment volatility risk component as set out in PIN section A6.5 in respect of the obligation or asset over which the guarantee, letter of credit or other credit substitute is written, as though that obligation or asset were an obligation or asset of the Insurer.


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