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PIN A8.7.1

An Insurer must calculate an off-balance sheet liability risk component in respect of a Long-Term Insurance Fund if the Insurer has issued guarantees, including put options serving as guarantees, letters of credit or any other credit substitute in favour of another party, so that the Long-Term Insurance Fund 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]