Insurance Authority 
Abu Dhabi 
United Arab Emirates 
ESTABLISHMENT OF THE INSURANCE AUTHORITY & ORGANIZATION OF ITS OPERATIONS 

Federal Law No. 6 of 2007 
Federal Law No. 6 of 2007 

We Khalifa Bin Zayed Al-Nahayan, the President of the United
Arab Emirates, 
Having considered the constitution, 
The Federal Law No.1 of 1972 on the ministries' responsibilities 
and the ministers' authorities and the amending laws, 
The Federal Law No.6 of 1974 on Public Utility Societies and the 
amending laws, 
The Federal Law No.5 of 1975 on Trade Register, 
The Federal Law No.26 of 1981 on Marine Commercial Law and 
the amending laws, 
The Federal Law No.8 of 1984 on Commercial Companies and the 
amending laws, 
The Federal Law No.9 of 1984 on Insurance Companies & Agents 
and the amending laws, 
The Law of Civil Transactions enacted by the Federal Law No.5 of 
1985 and the amending laws, 
The Penal Code enacted by the Federal Law No.3 of 1987 and the 
amending laws, 
The Law of Civil Procedures enacted by the Federal Law No.11 of 
1992 and the amending laws, 
The Law of Punitive Procedures enacted by the Federal Law No.35 
of 1992 and the amending laws, 
The Federal Law No.21 of 1995 on Traffic 
And on basis of the Minister of Economy's presentation, the 
Cabinet's approval, and the Federal Supreme Council's sanction, 
we have issued the following law: 
Preliminary Chapter 

Article 1 
Definitions 
The following words and expressions shall bear the meanings 
indicated beside each of them unless the context provides 
otherwise: 
State: The United Arab Emirates 
Ministry: The Ministry of Economy 
Minister: The Minister of Economy 
Authority: The Insurance Authority established 
by virtue of the provisions of the law 
herein. 
Board: The Insurance Authority's Board of 
directors 
Chairman: The Chairman of the Board 
Director General: The Director General of the Insurance 
Authority 
Company: The insurance company incorporated 
in the State and the foreign insurance 
company licensed to carry out 
insurance activities in the State either 
through a branch, or through an 
insurance agent. 
Insurer: Any insurance company incorporated 
in the State or foreign company 
licensed to carry out insurance 
operations in the State according to 
the provisions of the Law herein. 
Insured: The person who has concluded an 
insurance contract with the company. 
Insurance Agent: The person approved and authorized 
by the company to carry out 
insurance operations on its behalf or 
on behalf of any branch thereof. 
Insurance Policy (Insurance Contract): 
The insurance document (policy) 
concluded by the insurer and insured 
containing the terms and conditions 
of the contract between the two 
parties, their obligations, and rights 
or the rights of beneficiary of the 
insurance or any endorsements 
therein.
Re-insurer: Any re-insurance company 
incorporated in the State or foreign 
re-insurance company licensed to 
carry out insurance operations inside 
the State or a foreign re-insurance 
company outside the State. 
Insurance Broker: The person who independently 
intermediates in insurance and reinsurance operations between the 
insurance or re-insurance seeker on 
one side and any insurance or reinsurance company on the other side 
and receives for his efforts 
commission from the insurance 
company or the re-insurance 
company with which the insurance or 
re-insurance has been accomplished. 
Loss & Damage Adjuster: The person who examines the 
damages occurred to the subject 
matter of the insurance, and assesses 
them. 
Insurance Consultant: The person, who studies the 
insurance requirements for his 
clients, gives advice in respect of the 
suitable insurance coverage, assists in 
preparing insurance requisites and 
receives for his efforts remuneration 
from his clients. 
Actuary: The person who estimates values of 
the insurance contracts, documents 
and the related accounts. 
Register: The register of the insurance 
companies or the insurance agents. 
Branch: The branch of the company that carry 
out insurance operations in its 
name.
Authorized Manager: The person appointed by the foreign 
insurance company to manage its 
branch in the State. 
Beneficiary: The person who acquired the rights 
of the insurance contract at the start 
or these rights has been legally 
transferred thereto. 
Technical provisions: The provisions which the insurer 
must deduct and maintain to meet 
the insured's accrued financial 
obligations pursuant to the 
provisions of the law herein. 
Solvency margin: The surplus in the value of the 
company's real assets over its 
liabilities that enables it to fulfill its 
obligations in full and to pay the 
required indemnities right away 
when they befall due without 
impeding the company operations or 
weakening its financial status. 
Minimum Guarantee Fund: 
The amount that equates one third of 
the required solvency margin or the 
amount determined by the Board 
whichever is the greater. 
Accounts' Auditor: The accounts' auditor licensed to 
perform in the State. 

Article 2
1. The provisions of the law herein shall apply to the insurance 
companies incorporated in the State and the foreign 
companies licensed to perform the activity in the State 
including the companies engaged in the operations of 
cooperative insurance and takaful insurance or the operations 
of reinsurance provided for in the law herein and the 
insurance professions related thereto. 
2. The provisions of the law herein shall not apply to the 
companies operating in the free zones in the State unless 
specifically provided for in the law herein. 

Article 3 
1. An insurance is a contract pursuant thereto the insurer shall 
be obliged to pay the insured or the beneficiary whose in his 
favor the insurance has been concluded a sum of money, 
regular proceeds or other monetary indemnity in case the 
insured accident or risk occurred, in return of installments or 
any other monetary sums paid by the insured thereto. 
2. The insurer shall pay the indemnity provided for in the 
insurance contract to the insured or the beneficiary, as the case 
might be, as soon as the insured accident or risk occurred and 
thereupon the insurer shall legally subrogate the insured or 
the beneficiary in respect of the rights or obligations of each 
one of them. 
3. The company shall be obligated to conclude insurance 
contracts for all the vehicles licensed to get going in the State 
when so required by the pertinent authorities. The executive 
regulation of the law herein shall determine the insurance's 
premium tariffs while magnitude of the risks should be taken 
into consideration. 

Chapter One 
Insurance Operations and Its Types 

Article 4 
In implementing the provisions of the law herein the direct 
insurance operations shall be divided into three types: 
1. Life assurance and funds accumulation operations 
2. Properties insurance 
3. Life liability insurance 
The executive regulation of the law herein shall determine others 
may be enlisted under each of the three types. 

Article 5
Insurance operations shall include the relevant activities of the 
types provided for in Article (4) of the law herein and as well shall 
include re-insurance, insurance agents, and actuaries, insurance 
brokers, loss and damage adjusters and insurance consultants' 
activities. 

Chapter Two 
Insurance Authority 

Article 6 
1. An authority to be called The Insurance Authority, 
entertaining the status of a legal person with financial and 
administrative independence shall be established, and shall have 
an independent budget subjoined to the State's budget. In such 
capacity, the Authority shall perform all operations and actions 
enabling it to achieve the objectives and duties assigned thereto 
pursuant to the provisions of the law and shall be an annexed to 
the Minister. 
2. The main premises of The Authority shall be located in Abu 
Dhabi City and by decision of the Board branches thereto may be 
established within the State as the public interests may require. 

Article 7 
The Authority aims at organizing and overseeing the insurance 
sector in a way that would ensure suitable environment to develop 
it and enhance the role of the insurance industry to secure lives, 
properties, and liabilities against risks in order to protect the 
national economy; collect, develop, and invest the national savings 
to sustain the economic development of the State; encourage fair 
and effective competition; provide the best insurance services in 
competitive premiums and coverage, and Emiratize the insurance 
markets jobs and for the cause the Authority shall carry out the 
following duties: 
1. Protecting the rights of the insured and the beneficiaries of the 
insurance operations and monitoring solvency of the 
companies to avail satisfactory insurance coverage in order to 
protect these rights. 
2. Enhancing performance and efficiency of the insurance 
companies and binding them to observe the profession's code 
and rule of conduct to enhance their capabilities to render the 
beneficiaries of the insurance the best services and attain 
constructive competition. 
3. Providing efficient and qualified human resources to carry out 
insurance operations including establishment of an institute 
for the purpose in cooperation and collaboration with 
Emirates Insurance Association (EIA) according to the 
prevailing legislations. 
4. Proposing programs and plans to develop the insurance sector 
in all aspects and enhancing insurance awareness, preparing 
studies and researches relevant to the insurance operations 
and disseminating the same. 
5. Consolidating cooperation and integration ties with the 
authorities organizing insurance sector at both the Arab world 
and International levels. 
6. Receiving applications to establish, open branches and 
representative offices for insurance and re-insurance 
companies, insurance brokers and the professions related 
thereto and issuing them the necessary licenses. 
7. Identifying the risks which shall be compulsorily insured. 
8. Determining unified tariffs of certain types of insurances and 
of those one enlisted there under in cases the public interest 
would require. 
9. Any other assignment relevant to organizing the insurance 
sector as resolved by the Board. 

Article 8
The Insurance Authority shall be composed of the following: 
1. The Board 
2. The Director General 
3. The Executive Body 

Article 9 
The Authority shall have a board of directors composed under the 
chairmanship of the Minister of ten members of the experienced 
and specialized individuals designated on basis of a presentation 
by the Minister as follows: 
 Two members from the Ministry to be nominated by the 
Minister 
 One member from the Ministry of Finance & Industry to be 
nominated by the Minister of Finance & Industry 
 One member from UAE Central Bank to be nominated by the 
Governor. 
 One member from the Federation of the Chambers of 
Commerce & Industry to be nominated by the President of the 
Federation. 
 Five members to be nominated by the Minister out of the 
specialist in the sectors of finance, economy and insurance, 
provided they include among them one member from 
Emirates Insurance Association (EIA). 
The Cabinet shall issue a resolution to form the Board, determine 
remunerations of its members, and indicate duration of 
membership. The Chairman shall select a deputy therefor out of 
the Board's members. 

Article 10 
The executive regulation of the law herein shall lay down the 
terms and conditions of the Board's membership. 

Article 11 
1. Membership of any of the Board's members shall end in any 
of the following cases: 
A. Resignation or replacement by the nominating body. 
B. Should he remained absent for three consecutive cessions or 
four non-consecutive cessions during one year without an 
acceptable excuse. 
C. Should he become devoid of any of the terms and conditions 
provided for in the executive regulation of the law herein. 
2. The Cabinet on recommendation of the pertinent body and 
within a period not exceeding sixty days as from date of vacating a 
seat of the board shall appoint another in his place to complete the 
tenure of the member who his membership came to an end. 

Article 12 
The Board shall assume the duties and authorities provided for in 
the law herein and the regulations, rules, directives, and decisions 
issued pursuant thereto including: 
1. Laying down the general policy of the Authority and 
approving the necessary implementation plans and programs. 
2. Approving draft laws relevant to insurance operations and 
report them to the Cabinet. 
3. Issuing the necessary directives to implement the provisions 
of the law herein, and the regulations, and rules, issued 
pursuant thereto. 
4. Approving the draft of the annual budget of the Authority and 
refer it to the Cabinet for sanction. 
5. Approving the annual report and the final accounts of the
Authority and refer them to the Cabinet. 
6. Appointing an account auditor for the Authority and 
determining his remuneration. 
7. Acknowledging aids, donations, grants, and bequests seen in 
line with the objectives of the Authority. 
8. Settling the objections raised by the company in respect of 
amending the insurance's forms, policies and endorsements. 
9. Executing any other duties related to the Authority's affairs 
and objectives. 

Article 13
The Board shall meet once every three months at least and may be 
invited to hold an extraordinary meeting upon request of the 
Chairman or three members at least. 
The quorum for holding the meeting of the Board shall be the 
attendance of the majority of the members, provided the chairman 
or his deputy shall be among them. Resolutions shall be issued by 
absolute majority of the votes cast and in case of a tie the side of 
the chairman of the meeting shall have casting vote. Minutes of the 
Board's sessions shall be written down and approved by the 
chairman of the session. The resolutions shall be issued duly 
signed by the chairman. 
The Board may invite whoever seen fit of those experienced and 
qualified experts and consultants to render assistance to attend its 
sessions without having voting rights in decisions making. 

Article 14 
By virtue of a Federal Decree based on a recommendation by the 
chairman a director general of the Authority shall be appointed in 
the same scale of an undersecretary of a ministry. 

Article 15
The director general shall carry out the operations of the Authority
and representing the Authority in its relations with the others and 
before the judiciary and in particular he shall: 
1. Implement policies, plans and programs approved by the 
Board. 
2. Suggest the organizational structure of the authority and 
superintend the same in a way that secures good performance 
of the operations. 
3. Prepare programs and plans to develop the insurance sector 
and upgrade its services for submission to the Board. 
4. Prepare draft laws, regulations, rules, directives and decisions 
issued in conformity with the provisions of the law herein 
related to insurance operations and refer the same to the 
Board. 
5. Prepare the draft of annual budget the Authority and refer the 
same to the Board. 
6. Consider complaints lodged pertaining to the insurance 
services and take the appropriate decisions in this respect 
unless seen necessary to refer them to the Board. 
7. Issue the necessary decisions as may be authorized pursuant 
to the provisions of the law herein. 
8. Carry out any other assignments entrusted to him by the 
Board. 

Article 16 
The Director-General may delegate some of his assignments to the 
senior managerial employees of the Authority as provided for in the 
law herein, provided such delegation shall be specific and in 
writing. 

Article 17
The executive body of the Authority shall be composed of the 
employees appointed or contracted according to the regulations 
issued pursuant to the provisions of the law herein. 

Article 18
The Authority shall charge annul fees against the supervision and 
monitoring and any other fees proposed by the Board, provided a 
resolution therefor shall be issued by the Cabinet. 

Article 19
The revenues of the authority shall be comprised of the following 
resources: 
1. Any monies allotted for the Authority by the Government, 
2. The fees charged by the Authority, 
3. The surpluses of earlier years' budgets, 
4. The bequests, grants, donations, and aids accepted by the 
Board that in line with the Authority's objectives, 
5. Any other resources approved by the Board. 

Article 20
The fiscal year of the Authority shall commence on the first day 
January and end on thirty first day of December each year. 
However, the first fiscal year shall commence as from date of 
enforcing the provisions of the law herein and end by the end of 
December of the following year. 

Article 21
1. The Authority's funds shall be deemed public properties. 
2. The Authority shall entertain the exemptions and facilities as 
entertained by the Government Ministries and Directorates. 
3. Auditing of the Authority's accounts shall be taken over by one 
of those certified accounts auditors enlisted in the register of 
the operating accounts auditors. 

Article 22 
The Authority shall maintain reserves equal in amount to twice the 
total expenditures of its annual budget and the surpluses thereof 
shall be transferred to the State's public treasury. 

Article 23 
The Board shall issue on a recommendation by the director general 
the instructions pertinent to the insurance operations including: 
1. The solvency margin and the minimum guarantee fund, 
provided the same shall not be less than one third of the 
solvency margin taking the international standards into 
consideration, 
2. The basis of calculating the technical provisions, 
3. The standards of re-insurance, 
4. The basics of investing the rights of the policyholders, 
5. Determining the company's assets that meet the accrued 
insuring obligations. 
6. The accounting policies to be adopted by the company and the 
necessary forms needed to prepare reports and financial 
statements and presentation thereof. 
7. The principles of organizing accounting books and records of 
each of the companies, agents, and brokers and determine 
data to be inserted in these books and records. 
8. The records which the company shall be obliged to organize 
and maintain as well as the data and documents shall be made 
available to the Authority. 
9. The profession's rules and code of conduct. 
10. Anti-money laundering and terrorism financing in the 
insurance activities in collaboration with the pertinent bodies. 

Chapter Three 
Insurance Companies 

Section One 
The Insurer 

Article 24 
1. Insurance and re-insurance operations in the State may be 
carried out by any of the following entities which are licensed and 
registered with the Authority: 
A. A public stock company established in the State. 
B. A branch of a foreign insurance company 
C. An insurance agent 
2. A. The prior approval of the Board shall be obtained before 
incorporating any insurance company in the State or opening 
a branch of a foreign insurance company or carrying out the 
operations of an insurance agent. 
 B. The fiscal year of the company shall commence on the first 
day of January and end on the thirty first day of December 
each year and as for the first fiscal year it shall commence as 
from date of incorporation and end on the thirty first day of 
December of the following year. 
3. The capital of an insurance company shall not be less than the 
minimum limit as determined by the executive regulation of the 
law herein. 
4. Any insurance contract concluded by a company not duly 
registered according to the provisions of the law herein shall be 
deemed invalid and the affected party may claim compensation by 
reason of so invalidation. 

Article 25
1. The company shall not carry out life assurance and funds 
accumulation operations together with the operations of 
properties and life liability insurances. 
2. The existing companies engaged in the two types of 
insurance as provided for in Para (1) of the Article herein shall 
adjust their situations within five years as from date of enforcing 
the law herein. However, the said period may be extended by 
resolution of the Cabinet. 
3. The existing companies engaged in the two types of 
insurance as provided for in Para (1) of the law herein upon 
enforcing the provisions of the law herein shall abide by the 
directives issued by the Board organizing the operations of each of 
these two types of insurances. 

Article 26 
1. Properties or possessions in existence inside the State or 
liabilities resultant thereof shall not be insured with insurance 
companies outside the State and as well no mediation in insuring 
these properties, possessions or liabilities except with a company 
duly registered according to the provisions of the law herein. 
2. The insurer may re-insure inside and outside the State. 

Article 27 
Taking the provisions of the law herein into consideration, the 
company may open branches therefor in the State. 

Article 28 
Insurance policies concluded in the State shall be written in Arabic 
and a faithful translation into another language may be attached 
therewith and in case of differences over the interpretation of the 
policy the Arabic text shall prevail. 
The policy's articles releasing the company from the liability shall 
be written in bold letters, different color and endorsed by the 
insured. 

Article 29 
The company shall be maintain the number of UAE nationals 
working therewith as resolved by the Cabinet. 

Article 30 
No one shall be a member of the company's Board of Directors, a 
general manager or an authorized manager therein should he ever 
been: 
1. Convicted of a crime or a felony of dishonor, distrust or 
public moral or pronounced bankrupt and never been 
rehabilitated. 
2. Liable according to the Board's discretion for grief violations 
of any of the provisions of the law herein or of the companies' law 
in his capacity as general manager or board member of one of the 
companies including the liability of causing the company to go for 
compulsory liquidation. 

Article 31 
1. The chairman and the members of the board of directors of 
the company, its general manager and the authorized manager or 
whosoever acting on his behalf or any of the company's managers 
or a senior officer shall not: 
A. Participate in managing other competing insurance company 
or a similar company thereto, 
B. Compete the company's operations or do any actions or an 
activity that conflicts with the company's interest, 
C. Carry out the operations of an insurance agent or a broker, 
E. Receive a commission for any of the insurance operations. 
2. Whosoever be in charge of the management of the company 
or any employee therewith shall not represent any of the 
s

Article 32
Efficiency and experience in insurance operations shall be 
prerequisites have to be fulfilled by any general manger or 
authorized manager and the senior officers of the company. The 
company shall provide the Authority with detailed description 
thereof implying qualifications and experience of each one as 
specified in the executive regulations of the law herein. 

Article 33
1. The company shall advise the authority of the names of the 
members of its board of directors, general manager or the 
authorized manager or any of the senior staff and whether the 
position of any one of them vacated. The company shall fill the 
vacancy within sixty days as from date of vacating the same and 
notify the Director General of the Authority as so. 
2. The company's Board of Directors shall provide the Authority 
with copies of the minutes of the Board's meetings and its 
decisions related to the elections of the company's chairman, his 
deputy, and the board's members authorized to sign on behalf of 
the company and their specimen signatures within seven days as 
from date of issuing these decisions. 
3. Should the chairman and the members of the board of 
directors lodged their resignations or the Board lost its quorum the 
board of directors shall form a provisional committee of 
experienced and specialized individuals, appoint a chairman 
thereto, a deputy therefor out of its members to take charge of the 
company's management, invite the general assembly to convene 
within a period not exceeding three months as from date of the 
formation of the committee which shall be subject to renewal for a 
similar period once only by decision of the Board - in order to elect 
the company's new board of directors. The company shall bear 
remunerations of the committee as decided by the Board. 

Article 34 
The company in implementation of the instructions issued by the 
Board shall maintain the following: 
1. Solvency margin and the minimum guarantee fund associated 
with the type of insurance engaged therein. 
2. Technical provisions as estimated at the end of each fiscal 
year. 
3. The reserves need be maintained inside the State. 

Article 35 
The company licensed to carry out life assurance and fund 
accumulation operations shall appoint or approve a registered 
actuary within a month as from date of granting the license 
thereto, provided reporting the same to the Director General 
within a month as from date of appointing or approving the 
actuary. The companies licensed prior to implementing the 
provisions of the law herein shall adjust their situation to make it 
consistence with the provisions of the Article herein within six 
months as from date of implementing the provisions of the law 
herein. 

Article 36
1. The company shall provide any data or information 
requested by the Director General on the company per se or on any 
company possessively related or associated therewith during the 
period as determined by the Director General, in addition to any 
data or information submitted by the company to any other 
monitoring body and any data or information received by the 
company from these bodies on time of occurrence. 
2. The company's Board of directors shall invite the Director 
General to attend the general assembly meetings before at least 
fifteen days as from date of its convention. The Director General 
may depute whosoever represents him out of the Authority's
employees in this respect. 
 3. The Director General may assign one or more of the 
employees of the Authority to ascertain or verify at suitable times 
any of the company's transactions, records, or documents. The 
company shall put any of the aforesaid at the disposal of the so 
assigned employee and cooperate with him to enable him to fully 
perform his duties. 
4. The Director General on basis of the verification performed 
pursuant to the provisions of Para (3) of the Article herein shall 
appoint experts, consultants, actuaries or accounts auditors to 
check the company operations, evaluate the situations and file a 
report thereon. The company shall cooperate with them in a 
manner that enables them to fully perform their duties. The 
company shall bear their remunerations as determined by the 
Director General for each one of them. 
5. The expert, consultants, actuary or the accounts auditor shall 
not disclose to any body whatsoever any information on the 
results arrived at according to Para (4) of the Article herein only 
after obtaining the written approval of the Board. 

Article 37
1. The company shall be obligated to provide the Authority with 
a detailed report on its operations signed by the chairman of its 
board of directors, the authorized manager or those authorized to 
sign on behalf of the company containing company's final annual 
accounts and all the related detailed information annexed thereto 
including the annual budget, detailed profit and loss accounts of 
the two types of insurance in which the company is engaged and 
of each branch thereform plus the accounts auditor's report within 
a period not to exceed four months as from the end of the fiscal 
year. The report shall reach the Authority within at least thirty days 
period prior to inviting the company's general assembly to 
convene. 
2. Should the accounts and data provided for in Para (1) of the 
Article herein proved to be not in agreement with the provisions of 
the law, and the regulations, rule, directives and decisions issued 
pursuant thereof the director general shall request the company's 
board of directors make them corrections in order to obtain the 
approval thereto before presenting them to the general assembly. 
The company's board of directors shall not present the same before 
obtaining such an approval. 
3. Should the company faces unfavorable financial or 
administrative situations or inflicted grief losses affecting the 
rights of the insured or the beneficiaries, the company chairman of 
the board of directors or its general manager shall forthwith 
inform the director general of the Authority as so. 

Article 38 
1. A. The company shall provide the authority with the 
insurance policies' forms and endorsements they have 
approved for its operations including the general and special 
terms and conditions and the technical basis of these policies 
and the premiums rates annexed thereto and as well shall 
provide the director general with schedules of the redemption 
values of the life assurance policies and funds accumulation 
operations and the premiums rates annexed thereto. 
B. The director general should the public interest require 
or in case of existence of a genuine imperfection may demand 
insertion of amendments into these forms within the period he 
determines for the purpose. The company may oppose the 
amendment and in case no agreement reached the matter shall 
be referred to the Board to settle it. 
2. The company shall provide the insured and the beneficiaries 
with copies of the insurance policies and the related details. 

Article 39 
The insurance and re-insurance companies registered with the 
Authority shall observe the doctrine of disclosure and transparency 
in their dealing with their patrons and in respect of all the 
documents, papers, bulletins, advertisements, propaganda and 
articles and scientific materials of their issue. The Board shall issue 
a resolution in respect of the matters must be observed in 
implementation the renderings of the Article herein. 

Article 40
The accounts auditor shall forthwith file a report to the Authority 
with copy thereof to the company's chairman of the board of 
directors in any of the following cases: 
A. Should he became evident that the financial situation of the 
company does not enable it to fulfill its obligations towards the 
insured or hinders its capacity to meet the financial requirements 
provided for in the law herein and the regulations, rules, directives 
and decisions issued pursuant thereto relevant to the financial 
situation of the company. 
B. Should he became evident that there is grief imperfection in 
the company's performance of its financial procedures including 
the process of entering the statements into its accounting records. 
C. Should he refused or have reservations in respect of any 
certificate issued by the company related to its income or its 
financial statements. 
D. Should he decided to resign or refused to be reappointment 
with the company for unusual reasons. 
2. The Director General may ask the accounts auditor to furnish 
him directly within a specific period with the information needed 
to monitor the company's operations. 
3. The general assembly of the company, in case the accounts 
auditor recommended that the financial statements filed thereto by 
the board of directors not to be approved, may resolve either to: 
A. return the financial statements to the board of directors 
and demand the budget and profit and loss account be 
corrected according to the auditor's remarks and deem them 
approved following the correction, or 
B. refer the matter to the director general to appoint an 
expertise committee of account auditors, determine their 
remunerations to be borne by the company, to settle the 
subject matter of the dispute between the company's board of 
directors and its accounts auditors. The decision of the 
committee shall be binding after presenting the same once 
more to the general assembly for approval. The budget and 
the profit and loss account shall be amended as decided by the 
committee. 

Article 41
The Authority shall conduct periodical inspection of the insurance 
and re-insurance companies to ensure safety of the financial 
situations, observance of the provisions of the law and the 
technical basis of conducting the insurance and re-insurance 
operations. Should the Director General came to know through 
such inspection or vide sufficient information that one of the 
following incidents took place he shall ensure soundness of such 
information: 
A. That the company did not fulfill its obligations or it's likely to 
fall short in doing so or unable to go on with its operations. 
B. That the company violated the provisions of the law herein, or 
the regulations, rules, directives or the decision issued 
pursuant thereto. 
C. That the company's procedures needed to re-insure the risks 
of its tolerance are inadequate or the company didn't make 
these procedures. 
D. That the company became devoid of one of the required terms 
and conditions for licensing or registration to carry out the 
activity of insurance. 
 E. That the company's total losses exceeded 50% of its paid-up 
capital. 
F. That the company ceased to carry out its operations for more 
than a year without justified or legitimate reason.
2. Should the director general became evident that the said 
information are correct he shall ask the company to take certain 
procedures to rectify its situations within the period he may 
determine and should the company failed to do as so, the director 
general shall refer the matter to the Board to take the necessary 
actions to rectify these situations; including: 
A. Preventing the company from concluding any more insurance 
contracts or transacting in certain type or types of insurance. 
B. Setting upper limit for the premiums total amounts received 
by the company against issuing insurance policies. 
C. Retaining assets in the State equal in value to the company's 
total net obligations accrued from its operations in the State or 
to a certain percentage of their value as determined by the 
Board following a recommendation by the Director General. 
D. Restricting the company's involvement in any of its 
investments activities associated with the solvency margin or 
obliging it to liquidate its investments in any of these activities 
to serve this purpose unless such action would inflect harms 
on the company as decided by the expert specialized in this 
respect. 
E. Asking the company or the main office of the foreign 
insurance company as the case might be to take the necessary 
actions to rectify the administrative situation therein including 
removing the Director General, the authorized manager or 
any of its senior officers away from office. 
F. Removing the Chairman of the company's board of directors 
or any Board member proved to be liable for the ensuing
situation of the company. 
G. Dissolving the company's board of directors, appointing a 
provisional neutral administrative committee of experienced 
individuals to take its place and as well appointing a chairman 
for the committee and a deputy thereof, determining their 
responsibilities and powers for a period not to exceed six 
months subject to renewal for a period not more than a year in 
the cases requiring as so. The company shall bear the fees of 
the committee as determined by the Authority and upon 
accomplishment of the committee's mission a new board of 
directors shall be appointed according to the provisions of the 
Law of Commercial Companies. 
H. Taking the necessary action to merge the company into 
another according to the provisions of the Law of Commercial 
Companies. 
I. Ceasing or canceling the company's license. 
J. Restructuring the company. 
K. Liquidating the company. 
Insurance Companies' Funds 

Article 42 
Every insurance company shall deposit into one of the banks 
operating in the State a deposit to stand as guarantee for fulfilling 
its obligations amounting: 
1. Dirham four million for the two types of insurances of life 
assurance and fund accumulation operations provided for in 
Para (1) of Article (4) of the law herein. 
2. Dirham two million for each branch of insurance enlisted 
under the two types of insurances of properties and life 
liabilities provided for in Para (2) & (3) of Article (4) of the law 
herein, provided the total amount shall not exceed Dirham six 
million at most regardless of the number of the branches. 
According to a resolution by the Cabinet the deposit as provided 
for in the preceding two paragraphs may be increased on basis of a 
recommendation by the Chairman. 
The deposit shall be in the form of money or the equivalent of 
shares and bonds of companies incorporated in the State or a 
mortgage of a real-estate located therein, subject to the chairman's 
consent. 
The deposit shall be deposited into one of the banks licensed in the 
State in the name of the company and to the order of the chairman 
in so capacity. As for the real-estate mortgage, an endorsement 
shall be entered into its registration with the Department assigned 
for mortgages' registration as an indication for that. The Authority
shall be provided by an official certificate as so. The cash returns of 
the deposit (if any) shall be made for the company's interest. By 
consent of the Director General the whole deposit or part thereof 
shall be replaced by any other form of deposit provided for in the 
Article herein in condition that its value shall not be less than the 
legal limit of the deposit at the time of replacement. 

Article 43 
The deposit shall not be disposed off except by a written 
permission from the chairman or whosoever authorized by him. 
The court of jurisdiction or the committee may order seizure of the 
deposit against the debts accrued from the insurance operations of 
the company. However, no order shall be given to seize the 
deposit against other debts. 
The Authority shall request the company to complete the deposit 
should it become less than the legally determined limit due to 
decrease in the values of the shares, bonds, or real-estates or 
impose seizure thereon or on part thereof according to the 
provisions of the preceding Para or for any other reason. The 
company shall complete the deposit within a thirty day period at 
most as from date of the call to complete the deposit. 

Article 44 
The bank shall not dispose off the deposit by any form or another 
except pursuant to a final judicial verdict or by a written 
permission from the chairman. The pertinent real estate 
registration bodies as well shall not lift off the endorsement 
signifying mortgaging of the real-estate kept as a deposit except by 
a written permission from the chairman or whosoever he 
authorizes. 

Article 45
The companies engaged in any of the two insurances types 
provided for in Para (1) of Article (4) shall maintain funds 
therewith in the State equivalent in their value at least to the total 
amount of the special mathematical reserve of the contracts 
concluded inside the State or of those executed therein. The 
Cabinet on basis of a presentation by the Chairman may decrease 
percentage of the reserve to be maintained by the company to no 
less than 50%. 
These funds shall be fully maintained separate from the monies of 
other insurance operations. However, in calculating the said 
reserve the deposit provided for in Para (1) of Article (42) of the 
law herein shall be taken into consideration in such a manner 
whichever the larger shall weigh up. 

Article 46
The insurance companies operating at the time of implementing 
the law herein shall be given one year grace period as from date of 
enforcing the law herein to adjust their situations according to the 
provisions of Para (1) and (2) of Article (42) of the law herein. The 
Cabinet on recommendation of the chairman may extend the 
period for another year. 

Licensing 

Article 47 
1. Incorporation of any insurance company in the State or 
opening a branch of a foreign insurance company therein shall not 
be only after obtaining a license from the Authority which shall 
have the right either to grant it or refuse as may seen fit to the 
national economy needs provided that the purpose of the 
company shall be carrying out insurance operations. The executive 
regulations of the law herein shall determine the documents need 
be submitted along with the licensing application. 
2. Should licensing be granted on basis of inaccurate 
information the license shall be cancelled by decision of the 
director general. 

Chapter Two 
Registration of Insurance Companies & Agents 

Article 48
1. Any of the companies provided for in Para (1) of Article (24) 
of the law herein shall not carry out insurance operations only 
following its inscription in the register according to the provisions 
of the law herein and the requisites determined by the executive 
regulation of the law herein. 
2. Should the registration been granted on basis of inaccurate 
information the registration shall be cancelled by decision of the 
director general. 

Article 49 
The company shall not re-insure with another company unless that 
other company is duly licensed to carry out the type of insurance 
assigned thereto for re-insurance. 

Article 50 
The Board on basis of the director general's presentation may cease 
the company to carry out certain type or types of the insurances of 
its practice for a period not exceeding a year and shall notify the 
company and the pertinent body given the cessation decision in 
any of the following cases: 
1. Should the company is in violation of the provisions of the 
law herein and the regulations, rules and directives issued 
pursuant thereto. 
2. Should the company became devoid of any of the terms 
needed for the registration according to the provisions of the 
law herein. 
3. Should the company did not carry out its operations in any of 
the insurance types listed with those ones requiring 
registration or ceased operating in such a type to carry out for 
period of one year. 
4. Should the company failed to fulfill its accrued financial 
obligations. 
5. Should the company refrained to execute a final judicial 
verdict related to an insurance contract. 

Article 51
1. Should the company within a period not more than one year 
as from date of the cessation eliminated the reason led to cease its 
operations due to any of the cases provided for in Article (50) of 
the law herein, the Board shall issue on basis of a presentation by 
the director general a decision approving the company to continue 
carrying out insurance operations. The decision shall be 
transmitted to the pertinent body and the company. 
2. Should the company failed to eliminate the reason led to 
cease its operations within a period of one year at most as from 
date of the cessation, its license for that type or types of insurances 
shall be cancelled by decision of the Board. The decision shall be 
transmitted to the pertinent body and the company. 

Article 52 
1. The procedures related to cessation of operations or 
cancellation of one or more of the insurance types and the powers 
bestowed upon the director general in this respect shall be 
determined by virtue of the decisions issued by the Board for the 
purpose. 
2. The following shall result from the decision of ceasing the 
operations or canceling the license for one or more of the insurance 
types: 
A. The company shall be prohibited from concluding insurance 
contracts of any of those insurance types subject to the 
penalties provided for in the law herein.
B. All rights and obligations accrued from the contracts 
concluded prior to the cessation of the operations or the 
cancellation of the license for that or those types of insurance 
shall be deemed proper and valid and the company shall 
remain liable therefor. 

Article 53 
The company which its registration for one or more types of 
insurances has been cancelled may file an application to the 
director general to re-register it within a period not exceeding one 
year as from date of issuing the cancellation decision attached 
therewith the documents establishing elimination of the reasons of 
that the cancellation. The Board shall issue its decision pertaining 
thereto on basis of a presentation by the director general within a 
period of two months at most as from date of referring the matter 
to the Board. 

Article 54
1. Should the company which its registration for all types of 
insurance had been cancelled did not file an application for reregistration within the period provided for in Article (53) of the 
law herein or the Board rejected the application for re-registration, 
the company shall start procedures of voluntarily liquidation 
within a month as from the expiry date of such period or from 
date of notifying the company of the Board's decision and should 
the company did not conduct these procedures the company shall 
be liquidated according to the provisions of the law herein. 
2. The registration of the company shall be deemed canceled 
should a non-compulsory liquidation decision been issued or a 
final judiciary verdict of compulsory liquidation been pronounced 
thereon or been declared bankrupt. 

Chapter Three 
Branches of Foreign Insurance Companies 

Article 55 
1. Branches of foreign insurance companies shall be obliged 
before getting registered to appoint an authorized manager for the 
branch to carry out insurance operations on their behalf and they 
shall be responsible for his actions provided attaching along with 
the appointment decision an official documents and an attested 
copy thereof in order to be deposited with the Authority
authorizing him to exercise all necessary powers to manage the 
branch including the acts of: 
A. Issuing insurance policies, making endorsements and paying 
the accrued indemnities. 
B. Representing the company before the Authority, the courts of 
jurisdictions, and all official and non-official bodies in 
connection with the branch's operations and management. 
C. Receiving of warnings and all notices and correspondences 
intended to the company. 
2. The branches of the foreign insurance companies shall be 
obliged to notify the director general of the name of the so 
authorized manager within a month as form date of his 
appointment and shall appoint a replacement thereto within a 
month as from date of vacating his position. 
3. The branches of the foreign insurance companies shall 
publish the company's consolidated final accounts in two widely 
circulated local daily newspapers issued in Arabic and in one local 
daily newspaper issued in English. 
Representative Offices of Foreign Insurance Companies 

Article 56 
1. Representative offices of the foreign insurance companies 
shall not carry on their tasks in the State before obtaining a license 
for the purpose from the Authority. 
2. The Authority shall issue a decision to organize the tasks of 
these offices. 
3. The licensing applications may be approved or rejected by 
decision of the Board and the decision shall be notified to the 
relevant bodies. 

Chapter Four 
Special Provisions related to the Companies of Life assurance 
and Funds Accumulation Operations 

Article 57 
Companies engaged in any of the two types of insurances 
provided for in Para (1) of Article (4) of the law herein shall not 
discriminate between a policy and another of the same type in 
respect of insurance premiums or profit amounts allocated to the 
shareholders or the like of other stipulations unless such 
discrimination is a result of life expectancy variations in those 
policies which life span has an effect therein, with exception of: 
1. Re-insurance policies. 
2. Insurance policies in amounts with certain discounts 
according to the premium rates' schedules communicated to 
the Authority. 
3. Insurance policies with special terms covering the life of the 
members of one-family or group of people professionally or 
occupationally related or having any other social relation. 

Article 58 
The director general may license the company upon its own 
request to issue policies at premiums discounted than the usual 
should there are justifiable reasons. 

Article 59 
Companies engaged in either of the two types of the insurances 
provided for in Para (1) of Article (4) of the law herein shall 
examine the financial status of the related type and assess the 
outstanding obligations related thereto at least once every three 
years by an actuary. 
Such assessment shall include all insurance operations concluded 
by the company inside and outside the State one-by-one and 
should the activity been conducted by a branch, the assessment 
shall be confined to the operations which their contracts been 
concluded inside the State or executable therein. 

Article 60 
The assessment mentioned in Article (59) of the law herein shall be 
conducted whenever the company intended to examine its 
financial status in order to determine percentage of profits to be 
allocated to the shareholders or policyholders or whenever it 
intended to make such status public. 
The Authority may demand such assessment be conducted at any 
time before the lapse of three years provided the lapse of one year 
at least as from date of conducting the latest assessment. 

Article 61 
The executive regulation of the law herein shall determine 
statements should be incorporated in the expert's report in respect 
to the findings of the examination and the assessment referred to 
in Articles (59) & (60) of the law herein. 

Article 62 
The company shall send the Authority a copy of the expert's report 
on the findings of the examination and the assessment referred to 
in Articles (59) & (60) of the law herein within six months as from 
the expiry of the period for which the examination was conducted 
accompanied with the following: 
1. A statement of the insurance policies still in effect concluded 
by the company inside or outside the State on the date of 
conducting the examination and should such an activity been 
carried out by a branch of a foreign company the statement 
shall include only those policies concluded inside the State or 
those ones executable therein. 
2. A declaration by those responsible for managing the company 
in witness that all statements and information required to get 
an exact report have been put under the disposal of the expert. 
By decision of the director general following the lapse of the six 
months provided for in the Article herein an extension of time may 
be given to the company to file the said report provided such 
period shall not exceed three months. 

Article 63 
Should the Authority became evident that the expert's report did 
not reflect the reality of the financial status of the company the 
Authority may order a re-examination thereof on the company's 
own expenses by an actuary to be elected by the Authority for the 
purpose. 

Article 64
The companies engaged in life assurance and funds accumulation 
operations shall not deduct whether directly or indirectly any part 
of the funds intended to meet their obligations accrued from the 
insurance policies in order to allocate as profits for the 
shareholders or the policyholders or to pay any amount other than 
their obligations according to the insurance policies they have 
issued. Allocation of profits shall be restricted to the surplus funds 
as determined by the expert in his report after conducting the 
examination referred to in Article (59) of the law herein. 
In implementing the provisions of the Article herein the 
company's funds inside and outside the State shall be deemed 
without prejudice to the provisions of Article (34) of the law herein 
as one unit. 

Article 65 
The companies engaged in life assurance and funds accumulation 
operations shall not issue saving bonds for a period exceeding 
thirty years and should the bond of a duration of twenty five years 
or more the surrender value after the twenty fifth year shall not be 
less than the full amount of the mathematical reserve and the 
premiums undertaken by the bearer of the saving bonds shall be of 
equal amounts or receding. 

Article 66 
The saving bonds shall include therein invalidation articles to be 
used by the company as an argument in face of the bearer to 
invalidate the bond for delaying payment of the premium. 
The contract, however, shall not be invalidated before lapse of 
three months as from the due date of the premium and should the 
bond being nominal such period shall not become effective only as 
from date of serving a notice on the bearer of the bond by a 
registered letter. 
Also, it shall be specified in these bonds that the right therein shall 
pass to the beneficiaries by reason of the death of the bearer of the 
bond without paying any additional monies or imposing any 
further provisos. 
By decision of the Board based on a recommendation of the 
director general other statements need be included in the saving 
bond may be specified. 

Article 67 
In case the company engaged in life assurance and funds 
accumulation operations gone bankrupt or in case of liquidation 
the due amounts of each holder of a policy with unexpired durtion 
shall be estimated to equate the mathematical reserve thereto in 
the day of announcing the bankruptcy verdict or the liquidation 
decision calculated according to the technical basis of the 
premiums' tariff at the time of concluding the policy. 

Chapter Five 
Insurance & re-insurance Companies Operating in the Free 
Zones in the State 

Article 68 
Insurance companies licensed to operate in the free zones shall not 
carry on any activity outside these zones other than the activity of 
re-insurance. 

Chapter Six 
Insurance Agent 

Article 69 
1. The provisions relevant to the regulation of the insurance 
agent's operations and the accrued liabilities thereupon shall be 
determined pursuant to decisions or directives to be issued by the 
Board for the purpose. 
2. No body shall carry out the operations of an insurance agent 
only after providing the director general with the agreement he 
concluded with the company stated therein him being authorized 
as agent therefor. However, the agent shall not act as an agent for 
more than one company. He shall fulfill the terms and conditions 
provided for in Article (30) of the law herein. 

Chapter Seven 
Insurance Brokers, Appraisal & loss Adjusters, insurance 
Consultants & Actuaries 

Article 70 
No body shall carry out operations of an insurance broker, a reinsurance broker, an appraisal and loss adjuster, an insurance 
consultant, or an actuary only after entering his registration in the 
register prescribed for the purpose according to the terms and 
conditions as determined by the Board pursuant to the rules 
issued for the purpose provided including therein the provisions 
determining his responsibility, organizing his operations and 
requisites of his registration. However, he shall fulfill the provisos 
provided for in Article (30) of the law herein. 

Chapter Eight 
Reassignment of Insurance Policies & Cessation of Operations 

Article 71 
The company may reassign the insurance policies it concluded 
inside the State, including the rights and obligations associated 
with any type of the insurances engaged therein, to another 
company or other companies engaged in the same type of 
insurance. 

Article 72
1. The reassignment application shall be placed to the director 
general attached therewith the instruments and documents 
establishing the agreement on the reassignment. The director 
general shall give directions to publish a notice about the 
reassignment in the Gazette just once, in two widely circulated 
local daily newspapers issued in Arabic and in one local daily 
newspaper issued in English for two consecutive times, on the 
applicant own expenses provided that the notice shall include 
reference to the right of the policyholders and the beneficiaries 
thereof or whosoever interested therein to raise to the director 
general an objection to the reassignment within forty five days as 
from date of the latest notice specified therein the subject matter of 
the objection and the sustaining reasons. 
2. The director general shall issue a decision approving the 
reassignment should those concerned parties raised no objection 
within the period referred to in Para (1) of the Article herein. The 
decision shall be published in the Gazette within a month as from 
date of its issue and shall be used as an argument in face of the 
insured, the beneficiaries and the company's debtors. The funds of 
the company shall be relocated to the company which the policies 
have been reassigned, taking into accounts the provisions related 
to conveyance and reassignment of funds. The reassigned funds 
shall be exempted from registration and safekeeping fees imposed 
according to laws of conveyance and reassignment of funds. 
However, should any objection been raised during the said period, 
the reassignment application shall not be finalized only after the 
concerned parties reached an agreement or a final verdict been 
pronounced in the subject matter of the objection. 
Nonetheless, the director general may issue a decision approving 
the reassignment provided the company paying an amount 
equivalent to its obligations towards the objector including the 
expenditures may be needed to maintain any of the company's 
assets. 

Article 73
The provisions of Articles (71) & (72) of the law herein shall be 
applied should any company ceased operating in certain type or 
types of the insurances or intended to release its monies need be 
maintained inside the State for such type or these types of 
insurances following the company submission of an evidence 
establishing fulfillment of its obligations towards all policies 
concluded inside the State or towards those executable therein of 
the type or types which the company decided to cease operating 
therein or reassigned these policies to another company in the 
manner as stated in Article (71) & (72) of the law herein. 

Chapter Nine 
Merger, Acquisition, Restructuring and Liquidation Of Companies 

Article 74 
1. The special provisions on merger stated in the commercial 
companies' law shall be applied to mergers of insurance 
companies. 
2. No merger of an insurance company except into another 
insurance company operating in the same type of insurance and 
no procedures for merger shall be initiated except after filing an 
application for merger to the director general attached therewith 
the necessary reports and statements and obtaining the approval 
of the Board. 

Article 75 
1. The director general shall form an assessment committee 
participating therein one representative of each company, the 
accounts auditors thereof, as well as experts and specialist. The 
director general shall appoint one of them as chairman of the 
committee. 
2. The committee provided for in Para (1) of the Article herein 
shall assume assessment of all assets, rights and obligations of the 
companies intending merger in order to indicate the shareholders' 
net rights on the date set for the merger. The committee shall file 
its report to the director general along with the company's 
statement of accounts produced as a result of the merger within a 
period not to exceed ninety days as from date of referring the 
matter thereto. The Board on recommendation of the director 
general may extend such period for a similar period in case of 
necessity, provided the companies intending merger shall equally 
bear remunerations of the assessment committee and in case of 
difference thereat these remunerations shall be determined by 
decision of the director general. However, director general's 
decision in this respect shall be final. 
3. The director general shall file the committee's report to the 
Board along with his recommendations and should the Board 
approve the committee's report, the Board shall form an executive 
committee composed of the chairmen and Board members of the 
companies intending the merger and the companies' auditors to 
handle the excutionary procedures of merger according to the 
provisions of the commercial companies' law. 

Article 76
1. The companies, the parties of the merger, shall let the 
insured review the agreement on which the merger has been 
accomplished in order to verify its articles. The agreement shall be 
displayed at the main office of each one of these companies for 
fifteen days as from date of publishing the decision of merger in 
the Gazette. 
2. Any interested party shall have the right to raise an objection 
before the Board within thirty days as from date of publishing the 
decision of merger, provided the objector shall indicate the subject 
matter of his objection, the sustaining reasons thereto and 
specifically state the damages alleged to be inflicted due to merger. 
Should the Board failed to settle the objection for any reason 
within thirty days as from date of referring the same thereto the 
objector shall have the right to recourse to the court of jurisdiction. 
However, these objections or claims filed with the court shall not 
cease the decision of merger unless the court orders otherwise. 
3. The Board shall issue the instructions relevant to the 
procedures of merger and settlement of objections raised thereto in 
this respect and all the matters related thereto. 

Article 77 
1. A. For the purposes of restructuring the company according to 
Para (2.J.) of Article (41) of the law herein the Board on basis 
of a presentation by the director general may dissolve the 
company's board of directors and form a neutral committee to 
restructure the company composed of experienced and 
specialized individuals and appoint a chairman for the 
committee and a deputy thereto for a period not to exceed a 
year as from date of issuing a decision thereto. The fees of the 
committee as determined by the Board shall be borne by the 
company. The committee shall file a monthly report to the 
director general on the progress of the restructuring 
procedures or whenever so requested. 
B. The process of restructuring shall include for the purpose, 
managing the company and organizing the staggering 
financial affairs through negotiations with all its debtors in 
order to determine means to settle debts of the company by 
approving a restructuring plan. 
2. The committee provided for in Para (1.A.) of the Article 
herein shall publish a notice once in the Gazette and for three 
consecutive working days in two widely circulated local daily 
newspapers issued in Arabic and in a local daily newspaper issued 
in English; all at the company's own expenses. The notice shall 
include calling all the creditors to file statements of their debts 
supported with confirmatory documents within a period not 
exceeding thirty days as from date of publishing the latest notice. 
However, any statements filed by any creditor upon lapse of such 
period shall not be considered. 

Article 78 
1. Irrespective of the provisions stated in any other legislation, 
the execution of any levy whether precautionary or executionary 
on the company's funds or assets or any action or execution on 
these funds or assets shall stay as from date of issuing the decision 
of the restructuring pending occurrence of any of the following 
cases: 
A. The period provided for in Para 1.A. of Article (77) of the law 
herein lapsed in case the restructuring plan has been 
approved. 
B. The Board issued a decision according to the provisions of the 
law herein rejecting the restructuring plan. 
C. The creditors rejected the restructuring plan according to the 
provisions of the law herein. 
D. The Board issued a decision bringing the restructuring 
procedures to halt according to the provisions of the law 
herein. 
2. Computing of the time limit to deny hearing of legal 
proceedings by reason of time-lapse shall cease in connection with 
the procedures provided for in Para (1) of the Article herein. 

Article 79 
1. The committee shall prepare its report on the restructuring 
plan within a period not exceeding fifteen days as from date of 
substantiating the debts therewith and call the creditors to 
approve the plan by publishing a notice in two widely circulated 
local daily newspapers issued in Arabic and in a local daily 
newspaper issued in English, provided the same be approved by 
creditors representing no less than three quarters of the nonpreferred and non-mortgage warranted debts. 
2. A. in case the creditors approved the plan according to the 
provisions of Para (1) of the Article herein, the committee shall 
present the plan to the general manger whose in turn shall 
refer it to the Board along with his recommendations.  
B. In case the creditors rejected the plan prepared according to 
the provisions of Para (1) of the Article herein, the committee 
shall file a report thereon to the director general who shall 
refer it along with his recommendations to the Board to take 
the necessary action according to the provisions of Para (2) of 
Article (41) of the law herein. 
3. The Board may approve or disapprove the plan presented 
according to Para (1) of the Article herein; in case of approval the 
procedures of restructuring shall proceed and in case of 
disapproval the Board shall decide about the suitable procedure to 
be taken according to the provisions of Para (2) of Article (41) of 
the law herein. 
4. Following the accomplishment of the restructuring a new board 
of directors shall be elected according to the provisions of the 
commercial companies' law. 

Article 80 
1. Should the Board became evident that the situations of the 
company are staggering still despite applying the restructuring 
plan or the restructuring is ineffective, the Board may decide to 
cease the restructuring procedures and take the suitable 
procedures according to the provisions of Para (2) of Article (41) of 
the law herein. 
2. The Board on basis of a presentation by the director general 
may issue the necessary directives to repeat the restructuring and 
all the matters related thereto according to the provisions of the 
law herein. 

Chapter Ten 
Liquidation of the Company 

Article 81
1. The provisions stated in the law herein, the rules and 
decisions issued pursuant thereto shall apply in case of liquidating 
the company. The liquidation shall be conducted by one liquidator
or more to be appointed by the general assembly by the ordinary 
majority whereby the company's decisions are being issued. 
Should the liquidation been on basis of a verdict, the Court shall 
specify method of liquidation and appoint the liquidator. 
The decision of appointing the liquidator shall be determined 
therein his fees and powers coupled with commitment him to 
submit a guarantee should the matter necessitated. Should the 
liquidator's fees are not determined in the appointing decision the 
fees shall be determined by the court of jurisdiction. 
2. The decision of appointing the liquidator shall be announced by 
insertion in the trade register and publishing in two widely 
circulated local daily newspapers issued in Arabic and a local 
daily newspaper issued in English within a week period at most as 
from date of the announcement. However, such an appointment 
shall not be used as an argument in face of the others except as 
from date of the announcement. 
3. The powers of the board of directors shall end when the 
company starts the liquidation phase. However, the entities of the 
company shall remain in existence during the period of 
liquidation, provided their powers shall be confined to the 
liquidation operations that fall within the domain of the 
liquidators. 

Article 82 
1. Any interested party shall have the right to appeal against 
the decision issued by the company's general assembly appointing 
the liquidator before the court of jurisdiction within forty days as 
from date of entering the decision in the trade register. 
2. The appeal made according to Para (1) of the Article herein 
shall not cease the liquidation procedures unless the court decides 
otherwise. 

Article 83 
The liquidator shall be dismissed in the same manner of his 
appointment. Any decision or verdict to dismiss the liquidator 
shall include appointing whosoever will take his replace. The 
dismissal of the liquidator shall be announced by entrance in the 
trade register and publishing in two widely circulated local daily 
newspapers issued in Arabic and a local daily newspaper issued in 
English. Such dismissal shall not be used as an argument in face of
the others except as from date of the announcement. 

Article 84 
The following shall result from the decision of liquidation: 
1. The liquidator will add the expression "under liquidation" to the 
name of the company on all its papers and correspondences. 
2. Cessation of any signing authorization or powers issued by 
any body in the company. The liquidator shall solely be 
qualified to grant any signing authorization or powers 
required for the procedures of liquidation. 
3. Cessation of computing the time-lapse barring hearing of 
claims of any rights or claims whether exiting or due to the 
company for a period of one year as from date of issuing the 
decision of liquidation. 
4. Cessation of the legal proceeding and procedures filed by or 
against the company for a period of six months unless the 
court decides to proceed therein before the end of such a 
period; taking the provisions of Para (5) of the Article herein 
into consideration. 
5. Cessation of the proceeding of any procedural or excutionary 
processes against the company except should it be upon 
request of a mortgagee and related to the mortgaged fund per 
se, then all these processes shall cease or denied acceptance for 
a period of six months as from date of issuing the decision of 
liquidation. 

Article 85 
The liquidator may take all the necessary decisions and procedures 
he may see necessary to accomplish the procedures of liquidation 
including: 
1. Managing the company's operations to the extent required for 
the liquidation procedures. 
2. Taking inventory of all assets and chattels of the company in 
collaboration with the board of directors which shall 
undertake to deliver the company's funds, books and 
documents to the liquidator. 
3. Appointing any of the experts and individuals to assist him to 
accomplish the procedures of liquidation or appointing a 
special committee and delegate thereto any of the tasks and 
powers entrusted to him and issuing the necessary decisions 
to accomplish the procedures of liquidation. 
4. Hiring one lawyer or more to represent the company under 
liquidation in any of the legal claims or procedures related 
thereto. 

Article 86 
Irrespective of any agreement otherwise, the liquidator may take 
all the necessary procedures he may see necessary to protect the 
company's rights including: 
A. Canceling any action, rescinding any agreement concluded by 
the company or retrieving any amount paid by the company 
during the three months prior to issuing the decision of 
liquidation should that constitute preferring certain body over 
the creditors of the company. The period shall be one year 
should the company happened to be in possessive relation or 
associated with that body. The preferentiality shall be deemed 
realized should the action or the procedure done without 
indemnity or with partial indemnity or involved assessment 
of a fund or right in a value other than the real or in a value 
other than the regular in the market. 
 B. Canceling any action or rescinding any agreement concluded 
by the company with any body possessively related or 
associated therewith or retrieving any amount paid by the 
company to either of them during the three months prior to 
issuing the decision of liquidation. 
C. Concluding an agreement with any of the creditors of the 
company on the method of paying or installing any amounts 
or debts accrued therefrom. 
D. Terminating the service of any of the company's employee 
and paying his dues. 
E. Terminating any contract concluded by the company with any 
body before it expires. 
2. The liquidator shall take any of the procedures referred to in 
Para (1) of the Article herein by a written notice to be served on the 
relevant person. These procedures may be appealed against before 
the court of first instance where under its jurisdiction the 
company's main office falls during thirty days as from date of 
notifying the person. 

Article 87
1. All mortgages and warrantees in connection with any of the 
funds or rights of the company made before three months as from 
date of issuing the decision of liquidation shall be deemed null and 
void. The said period shall be one year should the mortgages and 
warrantees were in favor of somebody possessively related to the 
company or associated thereto. 
2. Every decision imposing a levy on any fund or right of the 
company prior to the issue of the decision of liquidation shall be 
deemed cancelled unless the decision was issued upon request of 
mortgagee or related to mortgaged fund. 

Article 88
For the purposes of the Article (86) & (87) of the law herein an 
individual shall be deemed associated with the company in any of 
the two cases: 
1. Should the individual being an administrator in the company 
or having joint business interest with an administrator therein. 
2. Should the individual being a spouse of an administrator in 
the company or a relative up to the third degree of that 
administrator or spouse thereof or having joint business 
interest with any one of them. 

Article 89 
Taking the provisions of the legislations prevailing in the State into 
consideration, the liquidator may fulfill the company due debts 
and sell its properties whether in form of chattels or real-estate in 
public auction or by any other mean unless specified in his 
appointment letter that sales to be conducted in particular manner. 
However, the liquidator shall not sell the company's possessions in 
one lot except by permission of the general assembly. 

Article 90
1. Taking into consideration the provisions relevant to the 
insured and the beneficiaries of the insurance policies, the 
liquidator shall publish within thirty days as from date of issuing 
the decision of liquidation a notice in a clearly visible space in two 
widely circulated daily local newspapers issued in Arabic and in a 
daily local newspaper issued in English advising the creditors of 
the necessity of presenting their claims against the company 
whether being due or not within two months should they are 
residing inside the State and three months should they are residing 
outside it. 
2. The notice shall be republished in the same manner 
immediately after lapse of fourteen days as from date of 
publishing the first notice. The time-lapse period of the claims 
shall be computed as from date of publishing the first notice. 
3. Should the liquidator or the court of jurisdiction became 
convinced that there is a legitimate excuse for the creditor failure 
to present his claim during the period specified in Para (1) of the 
Article herein such period shall be extended for another three 
month at most. 
4. The period as from date of issuing the decision of liquidation 
up to date of publishing the first notice mentioned in Para (1) of 
the Article herein shall not be computed within the period 
determined to bar hearing of the creditors' claims of any rights or 
claims towards the company under liquidation. 

Article 91 
1. Taking Para (2) of the Article herein into consideration, the 
liquidator shall issue, within three months as from date of issuing 
the decision of liquidation, the notices indicated here below unless 
there are justifying reasons to go beyond this period, provided the 
whole period shall not exceed six months: 
A. Notice with an acknowledgment receipt to each of the insured 
or the beneficiary of the insurance policy indicating extent of 
his rights and obligations. 
B. Claim notice with an acknowledgment receipt to each debtor 
indicating amount of debts and obligations owed to the 
company. 
2. An objection against the notice mentioned in Para (1) of the 
Article herein may be placed to the liquidator within thirty days as 
from date of serving the notice on the intended party and should 
no objection been placed during the period, the insured or the 
beneficiary shall be deemed to have recognized the contents of the 
notice. 
3. The period determined to hear the claim filed pursuant to 
the provisions of Para (2) of the Article herein shall cease. 
4. Should the claim's notice issued by the liquidator to the 
debtor according to the provisions of Para (1.B.) of the Article 
herein became final and decisive the liquidator may make 
settlement with the debtor or use the notice against him by virtue 
of the provisions of the prevailing laws. 

Article 92
1. A. The liquidator shall issue his decisions in respect of the 
claims and objections submitted to him according to the 
provisions of Articles (91) & (92) of the law herein within a 
period not to exceed six months as from date of submission. 
B. should the liquidator didn't issue his decision within the 
period specified in Sec. (A) of the Para herein the claims and 
objections shall be deemed legally rejected. 
2. Any interested party may file an objection before the court of 
first instance where under its jurisdiction the company's main 
office falls against the decision issued by the liquidator according 
to the provisions of Para (1) of the Article herein within thirty days 
as from date of notifying the intended party of the decision or 
within thirty days as from lapse of the six months period referred 
to in Sec. (1.A) of the Article herein whichever is shorter. 

Article 93 
Irrespective of any other legislation the liquidator may file a 
petition to the competent court of first instance to impose a 
precautionary levy on any funds belonging to the company's 
debtors or take any precautionary or urgent measures against 
them according to the provisions of the prevailing legislations 
taking the following into account: 
1. The liquidator shall be exempted from attaching a guarantee 
with his petition. 
2. The liquidator has served a claim notice on the debtor when 
he filed the petition referred to herein or will serve the same 
within the eight days following the issue of the decision. Such 
notice shall stand in place of the subjective claim need be filed 
according to the provisions of the Civil Procedures Law. 

Article 94
1. No creditor, debtor, insured, or beneficiary shall be entitled 
to file a claim against the company under liquidation after issuing 
the decision of liquidation except according to the principles and 
procedures provided for in the law herein. 
2. Taking the provisions of Para (1) of the Article herein into 
consideration anybody inflicted harms due the liquidator actions 
or procedures may file according to the prevailing laws an 
objection before the court of first instance where under its 
jurisdiction the company's main office falls. The court may uphold, 
nullify, or amend these actions and procedures. 

Article 95 
Irrespective of the provisions of any other legislation the 
company's due debts and obligations shall be paid according to 
the following order: 
1. The due entitlements of the staff and employees for the last 
four months. 
2. The costs and expenditures borne by the liquidator and the 
loans he obtained. 
3. The rights of the insured and beneficiaries of the insurance 
policies. The liquidator shall be obligated to allot the 
company's assets that represent the technical provisions 
required to be maintained according to the provisions of the 
law herein to pay these obligations and any monies acquired 
by the company according to any arrangements of reinsurance shall be deemed part of the technical provisions. 
4. The rights of the other debtors by order of preferences 
according to the prevailing laws. 
5. The rights of the shareholders. 

Article 96
1. The liquidator shall submit to the general assembly every six 
months a provisional account of the liquidation course of action 
and disclose any information or details required by the partners 
about the liquidation's state of affairs. He shall accomplish his 
mission within the period specified in his appointment letter and 
should no period been specified any partner may file the matter to 
the court of jurisdiction to determine a period for the liquidation. 
2. The liquidation's period shall not be extended except by 
decision of the general assembly after considering the report of the 
liquidator indicated therein the reasons that hindered 
accomplishing the liquidation on time. Should the period of 
liquidation been determined by the court the same shall not be 
extended save by its permission. 

Article 97
1. The liquidator shall submit upon accomplishing the 
liquidation a final account to the general assembly about the 
processes of liquidation. The liquidation processes shall end upon 
approving the final account. 
2. The liquidator shall declare the liquidation accomplished in the 
trade register and publish an announcement in two widely 
circulated local daily newspapers issued in Arabic and in one local 
daily newspaper issued in English and that shall not be used as an 
argument in face of the others only as from date of such an 
announcement. The liquidator following the accomplishment of 
the liquidation shall file an application to write the company off 
the register. 

Article 98 
1. A. Serving any notice or decision issued by the liquidator 
according to the law herein to the intended person shall be 
made by handing the same to him personally or to whosoever 
legally represent him or by posting it with an 
acknowledgement receipt to his last address as maintained by 
the company under liquidation. 
B. Each notice sent pursuant to the Article herein shall be 
deemed duly handed to the consignee should that person 
refused to receive it. 
2. Should it became difficult to serve the notice according to the 
provisions of Para (1) of the Article herein the liquidator shall 
serve the notice by publishing it in two of widely circulated local 
daily newspapers issued in Arabic and in one local daily 
newspaper issued in English at least twice. The publishing fees 
shall be on the intended person own expenses and such publishing 
shall be deemed legal notice in all aspects. 

Chapter Eleven 
Emirate Insurance Society 

Article 99 
1. The insurance and re-insurance companies subject to the 
provisions of the law herein may establish a trade union to be 
called "Emirate Insurance Association" entertaining the status of a 
legal person and all the insurance companies operating in the State 
shall be members of the Association. 
2. The Association shall look after the interests of the holders of 
the insurance policies and the beneficiaries thereof as well as the 
interests of its members and shall implement the rules of 
professional conduct and represent the insurance companies 
before any entity or individual in connection with the insurance 
operations. 
3. The Association upon getting the Authority's approval shall 
issue a special regulation to determine pursuant thereto the 
Association's duties, responsibilities, its relation with the Authority, 
the rules and procedures of its general assembly, formation of the 
board of directors, meetings of each one of them, affiliation fees, 
annual subscription fees, rules of professional conduct, the 
disciplinary procedures of the members and other related affairs. 

Chapter Four 
Penalties 

Article 100 
A fine of no less than two hundred and fifty thousand Dirhams 
and no more than one million Dirhams shall be imposed on 
anybody who violated the provisions of Paras (1) and Sec. (2.A.) of 
Article (24), Article (25) and Article (49) and the Sec. A of Para(2) 
of Article (52) and Para (1) of Article (56), Article (68) and Para (2) 
of Article (69) and Article (70), and Para (1) of Article (72) of the 
law herein. 

Article 101
A fine of no less than fifty thousand Dirhams and no more than 
two hundred fifty Dirhams shall be imposed on anybody who 
violated the provisions of Paras (1), (2), (3), (4), (5), (6), (9) and (10) 
of Article (23), Article (34) and Paras (1) and (5) of Article (36), and 
Article (37), and Article (40) and Article (116) of the law herein. 
The same penalty shall be imposed on the liquidator who violated 
any of the obligations ordained on him according to the provisions 
of the law herein, and the regulations, rules, and directives issued 
pursuant thereto. The fine shall be doubled in case of repeating the 
violation. 

Article 102
A fine of no less than a hundred thousand Dirhams and no more 
than two hundred Dirhams shall be imposed on anybody who 
violated the provisions of Article (30), Article (35), Article (59), 
Article (64), Article (66), Article (73), and Para (2) of Article (74), 
Para (1) of Article (76), and Para (2) of Article (117), of the law 
herein. 
The same fine as well shall be imposed on anybody who refused to 
provide the Authority with the documents, information, and 
statements need be submitted according to the provisions of the 
law herein, the regulations, rules, and directives issued pursuant 
thereto or obstructed or hindered the Director General or 
whosoever he authorized to execute his duties and powers stated 
in the provisions of the law herein, the regulations, rules, and 
directives issued pursuant thereto or interfered to prohibit them to 
obtain the information needed to execute their duties or abstained 
from providing them with these information or fallen short to 
provide them therewith within the limited period. The fine shall 
be doubled in case of repeating the violation. 

Article 103 
A fine of no less than twenty five thousand Dirhams and no more 
than fifty thousand Dirhams shall be imposed on anybody who 
violated the provisions of Article (31), Article (60), Article (62), and 
Article (65) of the law herein. 

Article 104 
A fine of no less than ten thousand Dirhams and no more than 
fifty thousand Dirhams shall be imposed on anybody who 
violated the provisions of Article (28) and Article (32), the SubPara (A) of Para (1) and Para (2) of Article (38), and Para (1) of 
Article (48) and Article (110) of the law herein. 

Article 105 
A fine of no less than five thousand Dirhams and no more than 
fifty thousand Dirhams shall be imposed on anybody who 
violated the provisions of Para (7) & Para (8) of Article (23), Article 
(33), Article (39), and Article (55) of the law herein. 

Article 106
A fine of no less than five thousand Dirhams and no more than ten 
thousand Dirhams shall be imposed on anybody who violated any 
other provisions of the law herein. 

Article 107
The penalties stated in the law herein shall be doubled in case of 
recurrence and as well the court in such case may write off the 
company. 

Article 108 
The crimes stated in the law herein shall be punishable by the 
penalties indicated therein without prejudice to any other harder 
penalties provided for in any other law. 

Article 109 
The Minister of Justice in collaboration with the Minister shall 
issue a decision to assign the Authority's employees who shall have 
the capacity of law enforcement officers in the field of 
implementing the provisions of the law herein. 

Chapter Five 
General Provisions 

Article 110 
The company shall make clarifications about the complaints 
received by the authority from the policyholders, the beneficiaries 
thereof and others pertaining to the insurance operations 
conducted by the company inside the State. 

Article 111
The companies in existence upon enforcing the provisions of the 
law herein shall be obliged to adjust their situations according to 
the provisions thereof and the regulations and directives issued 
pursuant thereto within the period determined by the Board, 
provided such period shall not exceed two years as from date of 
implementing the provisions of the law herein. 

Article 112 
Should the company failed to adjust its situations according to the 
provisions of article (111) of the law herein its registration shall be 
cancelled by decision of the Board. 

Article 113
Any natural person carrying out operations of insurance agent, 
insurance broker, loss and damage adjuster, insurance consultant 
or actuary shall be obligated upon enforcing the provisions of the 
law herein to adjust his situation according to the provisions 
thereof and according to the regulations and rules pursuant 
thereto within the period determined by the Board, provided such 
period shall not exceed a year as from date of implementing the 
provisions of the law herein, otherwise his registration or license 
as might be the case shall be deemed lawfully cancelled and shall 
be prohibited from carrying out the operations of insurance subject 
to punishment according to law. 

Article 114 
1. Irrespective of what has been mentioned in any other 
legislation electronic data or printouts of the computers, 
correspondences generated by telex, fax, and e-mail shall be 
deemed suitable as proof of evidence should the legislative 
regulations relevant thereto been adhered to. 
 2. The companies may keep for the period determined by law 
microcopies (microfilm or other device of modern technology) 
instead of the original books, records, lists, documents, 
correspondences, telegrams, notices and other papers related to its 
financial operations. These microcopies copies shall have similar 
supremacy as proof of evidence according to the legislative 
regulations which a decision issued therefor. 
3. The companies which are using in organizing its financial 
operations computers or other modern technological devices shall 
be exempted from organizing the commercial books needed 
according to the Commercial Transactions Law. Statements 
extracted from these devices or from other modern technological 
devices shall be deemed same as those statements extracted from 
the commercial books, provided compliance of the insurance 
companies with the established legislative regulations in this 
respect. 

Article 115
All ministries, government directorates, public enterprises, and 
companies therein the government is having stakes which benefit 
from the insurance operations shall be required to present any 
statements or information related to the insurance operations they 
concluded as may be requested by the Director General within the 
period he determined. 

Article 116 
The insurance agent, broker, re-insurance broker, the actuary, the 
loss and damage adjusters, and the insurance consultant subject to 
the provisions of the law herein shall be obligated to present any 
statements or information as may requested by the Director 
General within the period he determined. 

Article 117 
1. The Director General shall notify the concerned bodies or the 
pertinent authorities as might be the case of the decisions related 
thereto issued by the Board or by him personally. 
2. The Director General shall publish the decisions related to 
the registration's suspension, cancellation, or restoration or the 
decisions related to companies' merger, acquisition, restructuring, 
liquidation, or termination in the Gazette, in two widely circulated 
local daily newspapers issued in Arabic and in one newspaper 
issued in English on the company's own expenses. 

Article 118 
The provisions of the Law of Commercial Companies shall not 
apply to the insurance operations only to the extent the provisions 
thereto do not contradict the provisions of the law herein, and the 
regulations, rules, directives, and decisions issued pursuant 
thereto. 

Article 119 
1. The Cabinet shall issue the following regulations needed to 
implement the provisions of the law herein: 
A. Fees charged pursuant thereto. 
B. Minimum amount of the company's capital. 
C. The Authority's human resources regulations. 
2. The Board shall issue regulations, rules and directives 
necessary to implement the provisions of the law herein. 

Article 120 
The employees whom the Minister decided to transfer from the 
Ministry shall be transferred to the Authority in the same scale, 
with all their rights and entitlements, provided their statues shall 
be adjusted according to the provisions of the regulations of the 
Authority's human resources' affairs without prejudice to the 
salaries and allowances they are receiving. 

Article 121 
The employees of the Authority shall be subjected to the laws and 
regulations of the Civil Service as applied in the Federal 
Government pending the issue of the regulations of human 
resources designated for the Authority. 

Article 122
The Federal Law No. 9 of 1984 on insurance companies and 
brokers referred to herein shall be cancelled and while no 
contradiction with the provisions of the law herein the executive 
regulation and the decisions issued thereby shall remain valid 
pending the issue of the executive regulation necessary to 
implement the provisions of the law herein. 

Article 123
Any provision in conflict or contradiction with the provisions of 
the law herein shall be canceled

. 
Article 124 
The law herein shall be published in the Gazette and be effective 
after six months as from date of publication. 
Khalifa Bin Zayed Al Nahayan 
President 
United Arab Emirates 
Issued by us at the Presidential Palace in Abu Dhabi 
On: 21st Maharam 1428 Hijri 
Corr.: 15th February 2007