MINISTERIAL REGULATION NO. 32/1984

INCLUDING THE IMPLEMENTATION REGULATION OF THE FEDERAL LAW NO. 9 OF 1984 CONCERNING INSURANCE COMPANIES AND AGENTS

Amended by

Ministerial Regulation No.17/1993 dated 30/3/1993

The Minister of Economy and Commerce,

Pursuant to the perusal of Federal Law No. 1/1972 on the Jurisdiction of the Ministries and the Powers of the Ministers; and its amending laws, and

The Federal Law No. 9/1984 on Insurance Companies and Agents,

And acting upon what has been submitted by the Deputy Minister,

Hereby regulates:

CHAPTER ONE - DEFINITIONS

Article 1

In the application of this Regulation, the following expressions and words shall have the meaning expressed opposite to each:

The State: The United Arab Emirates State.

The Minister: The Minister of Economy and Commerce.

The Ministry: The Ministry of Economy and Commerce

The Competent Administration: The Administration of Internal Commerce at the Ministry of Economy and Commerce.

The Competent Office of the Ministry: The competent office of the Ministry of Economy and Commerce in the Emirate in whose jurisdiction the principal seat of the insurance company is located or the seat supervising the branches of the foreign insurance company in the State or the branch of the foreign insurance company in the State, as the case may be.

CHAPTER TWO - LICENSING INSURANCE COMPANIES

Article 2

Applications for licensing the establishment of companies practicing insurance business in the State shall be submitted to the Competent Administration at the Ministry of Economy and Commerce.

The application must principally indicate the kind of insurance business that the Company intends to practice, the company's legal form, its capital, the names of its founders, their nationalities, the share of each in the Company's capital and the address to which shall be sent the correspondence concerning the constitution of the Company; this, in addition to the name of the agent of the Company who will undertake the procedures to obtain the license, as well as his profession and address.

The following documents must be attached to the application for a license:

1- The constitutive deed of the Company, and its Statutes both signed by the founders.

2- The papers establishing the capacity of the contracting parties, their qualifications and their nationalities.

3- An attestation from the Agent, who undertakes the procedures for obtaining a license to form the Company, that none of the founders thereof has been sentenced to a penalty in a crime against honor or honesty or has been declared bankrupt.

4- A concise statement on the economic advantage of forming the Company.

Article 3

The competent Administration shall examine the application and it may, within fifteen days from the date of submitting the application and through a registered letter or by direct delivery, ask the applicant to complete whatever documents or data it deems necessary.

Article 4

The application for license shall be submitted, together with the opinion of the Ministry, within twenty one days from the date of submission of the application or from the date of completing the documents or statements requested by the competent Administration, as the case may be.

The Minister shall give his decision on the application, accepting or rejecting it, as he deems fit for the requirements of national economy. The competent Administration shall advise the applicant of the decision taken in this respect.

In case the application is rejected, the applicant may not submit a fresh application except after six months at least from the date of his notification of the rejection decision.

CHAPTER THREE - REGISTRATION OF INSURANCE COMPANIES

Article 5

An ad hoc register shall be kept with the competent Administration in which shall be recorded the names of insurance companies and their branches that are licensed to operate in the State. Any insurance company or branch thereof may not perform any insurance activities in the State unless recorded in the said register.

A specific page in the register shall be reserved for each insurance company, accepted for registration, in which shall be entered the following particulars and every change or modification thereto:

1- Registration number and date.

2- Name of the company.

3- The legal form of the company.

4- Nationality of the company.

5- Duration of the company, date starting date and of commencement of activities.

 6- Date of commencement of activities for the branches of foreign insurance companies.

7- Subscribed capital of the company and the paid-up amount thereof.

8- Branches of insurance to which the company is licensed to perform.

9- Address of the principal seat of the company.

10- Address of the center supervising the work in the State, as far as branches of foreign insurance companies are concerned.

11- Address of the company's branches in the State.

12- Address of the company's branches abroad, as far as companies formed in the State are concerned.

13- Names of the members of the Board of Directors, as concerns companies formed in the State.

14- Names of the managers responsible for the administration of the company.

15- Names of the company's auditors.

16- Name and address of the local Agent of the foreign company.

Article 6

Every insurance company formed in the State or licensed to operate therein shall submit to the Ministry an application for the registration of the company in the register of insurance companies.

The application shall be submitted on the form prepared for this purpose, in duplicate signed by the company's legal representative, to the ministry's competent bureau within six months at most from the date of the license to form the company or the effective date of Law no. 9 of 1984, as the case may be.

Article 7

The application must be accompanied with supporting documents corroborating the veracity of the information mentioned therein and in particular the following documents:

1- A true copy of the Articles of Association of the company together with its Statutes duly ratified by the competent Body.

2- A true copy of the decision licensing the formation of the company and, in case of companies formed in the State, the decision declaring its constitution.

3- A certified deed proving that the capital of the company is not below the amount provided for in Article 12 of Law no. 9 of 1984.

4- A true copy of the certificate of registration of the company in the commercial register.

5- A statement showing the branches of insurance to be practiced in the State, as well as a statement of the general conditions of insurance operations in these branches..

6- A statement showing the advantages, restrictions and conditions included in the insurance policies issued by the company.

7- A statement showing the technical basis of the two branches of life insurance and savings and capitalization insurance, for which the company has applied to perform; in addition to a statement of the price structure of these operations and a certificate from an actuary in life insurance showing that the bases, advantages and restrictions of insurance operations in these branches are sound and executory.

8- Schedules of the amount and reduced cash values of the policies as far as life and savings and capitalization insurances are concerned.

9- Samples of each kind of insurance policies issued by the company.

10- A certificate from one of the banks operating in the State confirming the deposit of the funds stipulated in Article 41 of Law no. 9 of 1984, according to the branches to be practiced, accompanied with an undertaking from the bank not to dispose of these funds, in accordance with the provisions of Article 28 of this Regulation.

11- As concerns locally formed companies, a statement ratified by the Chairman of the Board showing the names of the Board members, their nationality and address together with a written declaration from each member stating that he was not condemned to a penalty in a crime against honor or integrity or to a declaration of bankruptcy.

12- An authenticated deed showing the names of all the company's managers, their nationality, address, the object and scope of their authority and a document stating that they are entitled to administer the company and sign insurance policies.

13- An official certificate stating that none of the company's managers have been condemned to a penalty for a crime against honor or integrity, as well as a written declaration from each manager that he has not previously been declared bankrupt.

In case the matter concerns the registration of a foreign insurance company, the following documents should in addition be attached to the application:

14- An official paper issued by the competent authorities in the State in which the company is registered, showing that it has been formed and registered in that State in accordance with the laws in force therein, stating also the activity that it is licensed to practice in the said State, its legal form, its subscribed capital and the paid-up part of it and the names of the representatives responsible of the management of the company's branch in the State, as well as the object and scope of their authorities.

15- A true copy of the agency contract between the company and the local agent specifying the agency territory, together with a true copy of the identity card of the Agent or an extract of his civil status registration. In case the Agent is a company, it should attach a true copy of the company's Articles, the certificate of its registration in the commercial register, and a true copy of the identity of each partner or an extract of his civil status registration.

Article 8

The insurance company has to notify the Ministry of every change or modification occurring in the statements contained in the application for registration or the deeds and documents attached thereto.

The notification shall be made through an application of inscription on the form prepared for the purpose, in duplicate signed by the legal representative of the company, to be submitted to the competent bureau of the Ministry within thirty days from the occurrence of such change or modification, to which shall be attached the supporting documents corroborating the veracity of the information stated therein, duly ratified by the competent

Should the change or modification concern the bases of the insurance operations in the two branches of insurance on life and savings and capitalization, the advantages, restrictions and conditions included in the insurance policies related to these operations, the Company must submit with the notice an actuarial certificate stating that the bases, advantages, restrictions or conditions are sound and executable.

Article 9

The competent Bureau at the Ministry shall record the application of registration or inscription in the in-coming register, after payment of the prescribed fees, according to the provisions of this Regulation, and shall inscribe on the application the number and date of depositing it. The applicant shall be delivered a receipt that includes the name of the company, the date of the application its subject and the documents accompanying it.

Article 10

The concerned Administration shall examine the application and may, within fifteen days as of the date of its submission and by means of a registered letter, ask the Company to complete whatever documents it deems necessary, complete the information required or amend the application in compliance with the provisions of Law no. 9 of 1984 and this Regulation within three months at most as of the date of the notice.

Article 11

The concerned Administration shall decide on the application within a period not exceeding thirty days from the date of its submission or from the date of expiry of the period stated in the preceding Article. In case of rejecting the application the said Administration has to notify the insurance company of this decision together with the reasons therefore by registered letter.

The Company whose application has been rejected may file a grievance against the decision with the Committee Controlling Insurance Companies within thirty days from the date of its notification of the decision.

Article 12

In case the concerned Administration accepts the application for registration, it shall register the Company and the information contained in the application in the register of Insurance Companies and deliver to the Company one of the two copies of the application for registration on which shall be inscribed that the registration took place, the number and date thereof, together with a certificate of registration of the Company stating the branches of insurance licensed to be practiced. The certificate of registration shall be valid for a period of one year as of the date of entry in the Register.

The information contained in the application shall be published in the Official Gazette and the competent authority in the concerned Emirate shall be notified with a copy thereof.

Article 13

Where the application for inscription of change or amendment to the information entered in the register is accepted, the concerned authority shall delete such information and enter the new ones and it shall be mentioned in the register's margin the date of such inscription and its supporting document.

The Company shall be given one of the two copies of the application on which it shall be mentioned that the inscription of modification or change has been completed with mention of the date thereof.

Article 14

Every insurance company registered in the Insurance Companies Register has to submit, each year, to the Ministry's competent Bureau, an application for renewal of its registration one month, at least, prior to the expiry of the validity of the registration certificate. This application shall be submitted on the form reserved for this purpose, in duplicate signed by the Company's legal representative.

The concerned Administration shall renew the registration of the Company after ascertaining that the conditions of the registration renewal are fulfilled and that the prescribed fees are paid.

Article 15

Without prejudice to the provisions of Article 6 of this Regulation, every foreign insurance company licensed to operate in the State, where it has more than one active branch, has to submit, for each branch operating in the State, an application for registration in the Insurance Companies Register, in accordance with the terms and conditions set forth in Article 6 of this Regulation. The supporting documents corroborating the veracity of information contained therein must be attached to the application, in particular the following documents:

1- A true copy of the registration certificate of the branch in the commercial register.

2- A certified deed showing the names of the branch managers, their nationality, address, the object and scope of their authorities and document attesting their authority in managing the branch and signing the insurance policies.

3- An official certificate attesting that the branch manager has not been sentenced to a penalty in a crime against honor or integrity, as well as a declaration from the manager that he has not previously been declared bankrupt.

4- A true copy of the Agency contract between the Company and the local Agent of the branch, specifying the territory covered by the agreement, together with a true copy of the document identifying the Agent or an extract of his civil status record. Where the agent is a company, he has to attach therewith a true copy of the company's Articles and of the certificate of registration in the commercial register, in addition to the identification document or an extract of his civil status record of each partner.

In case the application for registration of the branch is accepted, the concerned Administration shall register the branch in the page of the insurance companies register reserved for the concerned insurance company and shall deliver to the branch a certificate stating the name of the company, the address of its branch, the company's registration number and its date as well as the insurance branches that the company is licensed to practice.

The registration certificate shall be valid for one year as of the registration of the company in register. The company has to submit the application for renewal of the registration of the branch in accordance with the terms and conditions set forth in Article 14 of this Regulation.

The company shall inform the Ministry of all changes or modifications occurring in the information included in the application for registration of the branch or the deeds or instruments attached thereto, in accordance with the terms and conditions set forth in Article 8 of this Regulation.

Article 16

Every interested person may, after paying the prescribed fees take cognizance of the information entered in the insurance companies register and the Regulations issued by the Ministry concerning the Company and he may as well obtain photocopies or extracts of the said information and Regulations.

Article 17

Every insurance company registered in the Insurance Companies Register to add its registration number in conjunction with its name on all correspondence, certificates and deeds issued by the company.

CHAPTER FOUR - REGISTRATION OF INSURANCE AGENTS

Article 18

The competent Administration shall keep an ad hoc register under the name “Insurance Agents Register” in which shall be recorded the names of the insurance agents licensed to work in the State. No insurance agent may carry out his activities in the State unless his name is recorded in the mentioned register.

A special page in the Register shall be reserved for each insurance agent whose registration is accepted and in which shall be written the following information and each modification occurring thereto:

1- Registration number and date.

2- Name of the Agent.

3- The legal form of the Agent's establishment.

4- Address of the principal seat and of the branches, if any.

5- The name and surname of the manager, his nationality and the limits of his authority.

6- Name of the company for which he is its agent and the branches of insurance it is licensed to practice.

7- The Agency territorial limits.

8- Number and date of registration in the commercial register and where it took place.

In case the Agent is a company, the following information shall, in addition, be entered in the Register:

9- The kind of the company.

10- The amount of the company's capital.

Article 19

Insurance Agents shall have to submit to the Ministry's competent Bureau an application for the recording of their names in the Insurance Agents Register.

The application shall be made on the specimen reserved for the purpose, in duplicate signed both by the applicant, and to which he will attach the supporting document corroborating the veracity of the information mentioned therein and, in particular, the following:

1- A true copy of the Agent's registration certificate in the commercial register as well as a true copy of the company's Articles, should the Agent be a company.

2- A true copy of the extract of registration or the identification document of the Agent or of each partner, as the case may be.

3- An official certificate attesting that the Agent or each joint partner, in companies grouping an association of persons, as the case may be, has not been sentenced in a crime against honor or integrity, as well as a declaration from him that he has not previously been declared bankrupt.

4- A true copy of a lease contract of the Agent's work premises.

5- A true copy of the Agency contract concluded between the agent and the insurance company.

The Ministry's competent Bureau has, prior to the receipt of the application, to make sure that the applicant has paid the prescribed fees in accordance with the provisions of this Regulation.

Article 20

Subsequent to the examination of the application, the competent Administration may, within fifteen days from its submission, ask the applicant to complete any document or information it deems necessary within a period not exceeding fifteen days from the date of the notice.

The competent Administration has to take a decision on the application within a period not exceeding fifteen days from the date of its submission or from the expiry of the period stated in the preceding paragraph. In case of rejection of the application, it has to notify the applicant by means of a registered letter of the rejection decision.

Article 21

The competent Administration shall, in case of accepting the application for registration, enter the Agent's name and the information stated in the application in the Insurance Agents Register and shall deliver to the Agent a copy of the application on which it is mentioned that the registration was completed, the registration number and its date, as well as a registration certificate stating the Agent's name, his address, date and number of his registration in the register, the kinds of insurance that the Agent is licensed to carry out, the name of the insurance company he represents. The competent authority in the concerned Emirate shall be notified with a copy of the registration certificate.

The validity of the registration certificate shall be one year as of the date of entry in the Register.

Article 22

The insurance Agent shall notify the Ministry of all modifications and changes occurring in the information contained in the application of registration or the documents attached thereto. Notification shall be through an application for inscription to be submitted to the Ministry's competent Bureau, within thirty days from the occurrence of the modification or the change, on the specimen prepared for the purpose in duplicate, signed by the Agent, to which shall be attached the supporting documents corroborating the veracity of the information stated in the application, in addition to the receipt evidencing payment of the prescribed fees.

In case of acceptance of the application for inscription of the modification or change of the information recorded in the register, the competent Administration shall strike off the said information and enter the new ones and shall make reference in the margin of the register to the date of the inscription and its supporting documents.

The Agent shall receive one of the two copies of the application on which shall be mentioned the modification or change has been entered as well as the date thereof.

Article 23

Insurance Agents registered in the Insurance Agents Register have to submit to the Ministry's competent Bureau, before thirty days at least from the expiry date of the validity of the certificate of registration, of each year, an application for renewal of the registration in the register. The application shall be submitted on the specimen reserved for this purpose in duplicate both copies signed by the Agent.

The competent Administration shall renew the registration of the Agent in the register after ascertaining of the fulfillment of the renewal conditions and payment of the prescribed fees.

Article 24

Insurance Agents licensed to operate in the State, prior to the effective date of Law no. 9 of 1984 have to submit to the Ministry's competent Bureau an application for their registration in the Insurance Agents Register.

The application must be submitted within a period not exceeding six months from the effective date of Law no. 9 of 1984 fulfilling the conditions and in accordance with the terms provided for in the mentioned law and this Regulation.

Article 25

Every insurance Agent registered in the Insurance Agents Register has to mention, in conjunction with his name, his registration number in the Register on all correspondence, certificates and papers issued by him.

CHAPTER FIVE - INSURANCE COMPANIES FUNDS

Article 26

Funds that must be kept inside the State, in implementation of the provisions of Articles 41, 44 and 45 of the Law no. 9 of 1984, shall be invested in the following manner:

1- A minimum of 25% in cash deposits in banks operating in the State. In computing the amount of these deposits it shall be taken into consideration the cash deposits which were deposited in one of the banks operating in the State in implementation of the provisions of Article 41 of the law referred to so that the largest of the two amounts shall be taken into account.

2- A maximum of 10% to be deposited in a current account with a bank operating in the State.

3- A maximum of 25% in shares and bonds of joint stock companies in the State if the laws so permit.

4- A maximum of 25% in foreign stocks whether they be foreign government bonds, stocks secured by it, bonds of international organizations or shares and bonds of foreign joint stock companies approved by the Deputy Minister of Economy and Trade provided that the funds invested in it is not in excess of 40% of the total funds invested in foreign stocks.

5- The balance in bonds emitted or secured by the State government, in buildings erected in the State, in loans secured by a first rank mortgage on built properties situated in the State provided the loan amount does not exceed two thirds of the estimated amount of the real property according to expert reports and further provided that the law so permit, or in loans on life insurance policies, in case of companies carrying out life insurance, savings and capitalization provided the amount of loan does not exceed the cash value of the policy.

Article 27

By exception to clause 4 of the preceding Article, insurance companies, licensed to carry out life, savings and capitalization insurances and which have obligations resulting from policies contracted in the State in a foreign currency, may increase the value of the funds invested in implementation of the said clause up to the amount of the obligations resulting from these policies, provided that these funds do not exceed twice the limits allowed which are specified in the same clause.

Every insurance company willing to benefit from the exception referred to in the preceding paragraph has to submit to the competent Administration a statement showing the mathematical reserves of these policies and this Administration may ask additional information on these policies whenever it deems it necessary.

Article 28

As amended by Ministerial Regulation no. 17 dated 30/3/1993:

1- Every insurance company has to deposit in one or more banks operating in the State the cash moneys and stocks that constitute part of the funds that must be kept in the State in implementation of the provisions of Articles 41, 44 and 45 of Law no. 9 of 1984 and Article 26 of this Regulation.

2- The insurance company has to submit to the competent Administration an undertaking from the abovementioned bank, or banks, that it accepts, as concerns the deposit provided for in Article 41 of 1984, to comply with the following:

a- Not to dispose of the deposit, or part thereof, except by a final court judgment given by one of the State's courts, or by written authorization of the Minister of Economy and Trade, or a person authorized by him.

b- Not to allow the insurance company to withdraw the deposit, or any part thereof, or exchange it except by prior approval from the Minister of Economy and Trade, or a person authorized by him.

c- Inform the competent Administration of every occurring modification in the deposit, upon its occurrence.

d- Notify the competent Administration, within the month of January of each year, a signed statement showing the Company's funds deposited with it, as concerns the deposit as it is on the 31st December of the preceding year, together with an undertaking to submit all information about the deposit that may be asked by the competent Administration.

3- Without prejudice to the provisions of clause 5 of Article 38 of this Regulation, which provides that the company has to submit to the competent Administration a statement of the funds that the Company is required to keep in the State for the financial year ending 31/12 of the preceding year, every insurance company must submit to the competent Administration during the month of July of each year a statement of the funds kept by the Company in the State on 30/6 of the same year according to the provisions of Articles 41.44 and 45 of Law no. 9 of 1984 and Article 26 of this Regulation provided that these funds be estimated according to the details mentioned in Article 31 of this Regulation. The mentioned statement must be signed by the Chairman of the Board of the Company and by a member of the Board authorized to sign for the Company or by the branch manager, if the Company is a branch of a foreign company or an agent thereto. The mentioned statement must be ratified by an auditor of the Company and be accompanied by a certificate mentioning that the statement of the funds that must be kept in the State has been correctly stated and in conformity with the provisions of Articles 41, 44 and 45 of Law no.9 of 1984.

Article 29

The insurance company must mortgage the real property that constitutes part of the funds that should be kept in the State in implementation of Articles 41, 44 and 45 of Law no. 9 of 1984 and Article 26 of this Regulation. This mortgage should be in favor of the Minister, in his capacity, and an inscription should be made at the competent Land Registry Department preventing the disposal of this real property, or any other property mortgaged in guarantee of loans, except by a written authorization from the Minister or any person authorized by him.

Article 30

Should it appear to the competent Administration that the funds kept in the State is insufficient to meet the quota provided for in Articles 44 and 45 of Law no.9 of 1984, it must, after approval of the Minister, or the person authorized by him, ask the company, by a registered letter, to complete these funds. The company has to complete the shortage within thirty days as of the date of the notification letter addressed to it in this respect.

Article 31

Every insurance company has to submit to the competent Administration, within a period not exceeding 30th of April of each year, a detailed statement of its funds kept in the State on 31st of December of the preceding year, mentioning the book and market values of these funds on this date, computed as follows:

1- Real estates are assessed at the sale or market price whichever is lesser. The sale price includes the costs of additions and betterments that may occur on the real property after setting off the depletion allowance from its book value. The market value is the last value estimated by specialized experts.

The auditor report must include information about the depletion amount set off from the book value of the real property as well as a declaration that this amount is sufficient.

2- Stocks value shall be assessed at no less than their market value according to the last official price at the end of the financial year.

3- The value of loans secured by a real mortgage or loans against insurance policies shall be assessed in accordance with their respective contracts after deducting the paid loans.

Previous assessment bases must be taken into consideration when assessing the funds offered by the company as deposit guaranteeing the fulfillment of its obligations in accordance with the provisions of Article 41 of Law no. 9 of 1984.

Article 32

Every insurance company must submit to the competent Administration, whenever asked, the statement mentioned in the preceding Article, provided that the statement, supported by the documents requested by the Administration, be presented within a period not exceeding the end of the month following the date on which it is requested.

CHAPTER SIX - RECORDS AND ACCOUNTS OF INSURANCE COMPANIES

Article 33

Every insurance company shall keep a special record for the funds to be maintained in the State showing the cash deposits, stocks, real estates and the loans constituting these funds as well as the modifications which may occur on it provided that the entries in these records be continuous and progressive. The company has to allocate a record in order to enter the funds concerning life, savings and capitalization insurances and another record for entering the funds generated from the other insurance operations.

Article 34

Insurance Companies and Agents in the State have to keep a record for issued policies and another one for indemnities for each branch of insurance separately.

Article 35

The record of issued policies must include the following data:

1- Serial number.

2- Insurance policy number.

3- Insurance policy date.

4- Starting date of the insurance.

5- Duration of insurance.

6- Name and address of the insured.

7- Object of the insurance.

8- Kind of risk.

9- Amount of insurance.

10- Premiums collected.

11- Amendments occurring thereto.

12- Any other information required by the activities of the Company or of the Agent.

Shall be entered in this record all policies of direct insurance contracted by the Company or the Agent, as for reinsurance operations a special record should be allocated thereto.

Article 36

The indemnities Record shall include the following data:

1- Serial number.

2- Date of claiming indemnity.

3- Insurance policy number.

4- Name and address of the insured.

5- Date and place of occurrence of the peril and its kind.

6- The final indemnity which includes:

a- Amount of indemnity.

b- Survey fees.

c- Miscellaneous expenses.

7- Recovered amount.

8- Net indemnities.

9- Date of indemnity payment.

10- Date of rejection of the claim and the reasons therefore.

11- Any other information required by the activities of the Company or of the Agent.

Article 37

Insurance Companies and Agents shall keep separate records for the issued policies and indemnities for each type of insurance included in one of the following two branches:

First: Accident and liability insurance:

1/1 Personal accidents.

1/2 Theft.

1/3 Embezzlement.

1/4 All risks car insurance.

1/5 Third parties car insurance.

1/6 Engineering.

1/7 Workmen compensation insurance.

1/8 Civil responsibility.

1/9 Loss during transportation.

1/10 Loss during conservation.

1/11 Agricultural insurance.

1/12 Various.

Second: Insurance against land, sea and air transport risks:

2/1 Goods.

2/2 Vessels' bodies.

2/3 Aviation.

Article 38

Insurance companies have to submit to the competent Administration, within a period not exceeding 30 April of each year, on the forms approved by the said Administration, the information mentioned hereunder concerning the financial year ending on the 31st of December of the previous year:

1- The yearly general balance-sheet ratified by the auditors of the company.

2- In case the company is carrying out insurance operations in the two branches of life and savings/capitalization, a separate balance-sheet for these two branches should be prepared, as well as another balance sheet for general insurances in addition to the consolidated general balance-sheet referred to in the preceding clause.

3- Profit and Loss account.

4- A statement per each branch of insurance separately showing revenues and expenses, reserves for outstanding undertakings and the reserves for unsettled losses.

5- A statement showing the funds kept by the company within the State in accordance with the provisions of Law no. 9 for 1984, estimated according to the details mentioned in Article 31 of this Regulation.

6- A detailed statement on the insurance operations carried out during the year.

All these statements and papers must be signed by the Company's Chairman of the Board of Directors and one of the Board member empowered to sign or the branch manager should the company be a branch of a foreign company or an Agent thereof.

Article 39

Every foreign insurance company operating in the State has to submit the information referred to in the preceding Article for all the Company's operations in the State and for each of its branches operating in the State.

Article 40

The actuarial report referred to in Article 57 of Law no. 9 of 1984, concerning the examination of the financial position and evaluation of its outstanding obligations of the Company carrying out life, savings and capitalization insurances, must be made on the annexed specimen no.6.

CHAPTER SEVEN - INSURANCE COMPANIES AUDITORS

Article 41

The auditor of any insurance company or insurance Agent must fulfill the following conditions:

1- His name must be recorded in the Accountants and Auditors Register in accordance with the Federal Law no. 9 of 1975 concerning the organization of the accounting and auditing profession

2- He must be holder of a Diploma of a legally accredited Accountant, or the equivalent, with an experience of five years at least, or being titular of a B.A. in accounting, delivered by one of the accredited universities with an experience of ten years at least.

3- He should not join to his work as auditor his participation in the foundation of a company or his membership in its Board of Directors.

4- He may not be an employee of the Company he is auditing its accounts or of any member of its Board of Directors or of one of its managers.

5- He is not a partner or agent to one of the founders of the Company, to a member of its Board of Directors, to any of its managers or a relative to any one of them up to the fourth degree.

Article 42

The competent Administration shall keep a register called “Register of the Insurance Companies' Auditors” in which shall be recorded the names of Auditors who are accredited to audit the accounts of the insurance companies and agents.

Applications for entry in the said register shall be submitted to the Ministry's competent Bureau and to which shall be attached the documents supporting the veracity of the information mentioned therein provided that these documents be duly ratified by the competent bodies.

Should the application be accepted, the competent Administration shall enter the name of the auditor and the application particulars in the Register of the Insurance Companies' Auditors and shall deliver to the applicant a certificate of registration in the Register showing the number and date of entry and this certificate shall be valid for one year from the date of entry in the Register.

The applicant has to submit to the competent Administration an application for renewal of his registration within one month at least prior to the date of expiry of the validity of his certificate of registration

Insurance companies and agents may not, subsequent to one year from the effective date of this Regulation, employ auditors who are not registered in the Register of the Insurance Companies' Auditors.

CHAPTER EIGHT - TRANSFER OF POLICIES, MERGER AND CESSATION OF WORK

Article 43

Applications for transfer of policies provided for in Article 66 of Law no. 9 of 1984 shall be submitted to the competent Administration, on the form prepared for the purpose, in duplicate signed by the legal representative of the Company to which shall be appended the following documents:

1- An auditor certificate ratifying the application particulars.

2- An official copy of the transfer Agreement concluded between the transferor company to the transferee company.

3- Copy of the reports on which the transfer Agreement is based. These reports must, in case of transfer of policies concerning life and Savings & Capitalization insurances, include a separate actuarial report on the contracting companies.

4- A statement of the assets and liabilities of each company to which shall be appended a report from the legal representative of each company ratified by an auditor showing that the particulars mentioned in the statement are complete and accurate.

The application shall be published, on the Company's expense, in the Official Gazette and in two local dailies issued in the Arabic language. The announcement shall specify the date of submitting the application to the competent Administration and shall include an invitation to the policyholders and other interested persons to submit their objections on the transfer by means of registered letters addressed to the competent Administration within a period not exceeding three months from the date of publication.

Article 44

Every insurance company, willing to cease its activities in the State concerning one or more branch of insurance carried out in conformity with Article 68 of Law no.9 of 1984, has to submit an application in this respect to the competent Administration.

The application shall be submitted, on the form prepared for the purpose, in duplicate both copies signed by the legal representative of the company to which shall be appended the following documents:

1- Evidence that it has discharged its obligations completely and finally for all policies contracted or executed within the State as concerns the branch or branches of insurance to which it decided to cease its operations or in which it transferred the policies to another company as stated in Articles 66 and 67 of Law no. 9 of 1984 and Article 43 of this Regulation.

2- Evidence that it has published, in each of the Official Gazette and two local dailies issued in the Arabic language, anannouncement appearing twice separated by a minimum period of fifteen days each to the effect that it will submit an application to the Ministry, three months subsequent to the date of the last announcement to liberate its funds for one or more branch of insurance in respect of which it decided to cease its operations.

The announcement must include an invitation to policyholders and other concerned persons to submit their objections to the competent Administration through a registered letter within a period ending the day of submitting the application referred to above.

The Ministry shall issue its approval of the Company's application should no one file an objection to this decision within the period referred to in the preceding paragraph. This decision shall be published in the Official Gazette within a month as of the date of its issuance and it shall be opposable towards the policyholders, the beneficiaries of the policies and the Company's creditors.

Should, however, an objection be filed within the mentioned period, no decision shall be taken on the application for transfer until an agreement is reached between the concerned parties or a final judgment rendered in respect of this objection. The Minister may, nonetheless, allow the liberation of the Company's funds existing in the State provided a sum equal to the commitments of the company towards the objector is retained including the expenses involved in retaining any of the company's assets.

Article 45

The following fees shall be collected upon taking the procedures mentioned opposite to each:

Warning: the following table is malformed, its content may be illegible.

The procedure and The fee in Dirham

1- Application for license to form an insurance company

10,000 (Ten Thousands).

2- Application for registration or renewal of registration of an insurance company in the Insurance Companies Register

10,000 (Ten Thousands).

3- Application for registration or renewal of registration of a branch of a foreign insurance company in the Insurance Compamies Register

5000 (Five Thousands).

4- Application to enter amendments in the data mentioned in the Insurance Companies Register

1000 (One Thousand).

5- Application to register an insurance agent in the Insurance Agents Register

1500 (One Thousand and Five Hundred).

6- Application for renewal of registration of an insurance agent in the Insurance Agents Register

1000 (One Thousand).

7- Application for entering modifications in the Insurance Agents Register

500 (Five hundred).

8- Application for registration or renewal of registration of an auditor in the Register of Insurance Companies Auditors

1000 (One Thousand).

10- Application for copies or extracts of the information entered in the registers of Insurance Companies, or Auditors of Insurance Companies or of the decisions issued by the Ministry, per each page or part thereof

200 (Dirhams).

250 (Two Hundred and Fifty).

Article 46

The competent authorities shall implement this Regulation.

Article 47

This Regulation shall be published in the Official Gazette and shall come into effect as of the date of its publication.

Issued in Abu Dhabi

On 17 Shawal 1404 H.

Corresponding to 15 July 1984

Seif Ali El Jarwan

Minister of Economy and Trade

This Ministerial Regulation has been published in the Official Gazette, issue no. 142, p. 43.

UNITED ARAB EMIRATES STATE

MINISTRY OF ECONOMY AND TRADE

DOMESTIC TRADE

Form no. (1) T