PIN A8.4 Guidance

The purpose of the default risk component is to require an Insurer to set aside capital to cover the risk that amounts receivable from counterparties will not be received. The basic calculation model for this component, as it applies to Insurers that are not Protected Cell Companies, is set out in PIN section A4.4. The provisions in this section apply the relevant provisions of PIN section A4.4 to each Long-Term Insurance Fund that an Insurer maintains.

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