• PINS Chapter 1 PINS Chapter 1 General provisions

    Editorial changes (as from 1 January 2015).

    • PINS Part 1.1 PINS Part 1.1 Introductory

      Editorial changes (as from 1 January 2015).

      • PINS 1.1.1 Name of rules

        These rules are the Insurance Business Rules 2006 (or PINS).

        Amended by QFCRA RM/2011-4 (as from 1st July 2011).

      • PINS 1.1.2 Effect of definitions, notes and examples

        (1) A definition in the Glossary also applies to any instructions or document made under these rules.
        (2) A note in or to these rules is explanatory and is not part of these rules. However, examples and guidance are part of these rules.
        (3) An example is not exhaustive, and may extend, but does not limit, the meaning of these rules or the particular provision of these rules to which it relates.

        Note Under FSR, article 17 (4), guidance is indicative of the view of the Regulatory Authority at the time and in the circumstances in which it was given.
        Amended by QFCRA RM/2011-4 (as from 1st July 2011).
        Amended by QFCRA RM/2020-6 (as from 15th October 2020)

      • PINS 1.1.3 PINS 1.1.3 [Deleted]

        Deleted by QFCRA RM/2011-4 (as from 1st July 2011).

        • PINS 1.1.3 Guidance [Deleted]

          Deleted by QFCRA RM/2011-4 (as from 1st July 2011).

    • PINS Part 1.2 PINS Part 1.2 General

      Editorial changes (as from 1 January 2015).

      • Division 1.2.A Division 1.2.A Application

        Inserted by QFCRA RM/2011-4 (as from 1st July 2011).

        • PINS 1.2.1 PINS 1.2.1 Application of PINS

          These rules apply to every QFC insurer (or insurer) except where otherwise provided.

          Note 1   QFC insurer (or insurer) is defined in r 1.2.3.

          Note 2   The prudential requirements of IMEB, and not those of these rules, apply to an authorised firm with an authorisation that permits it to conduct insurance mediation or captive insurance management (or both) and no other business that is or includes a regulated activity.

          Note 4   The prudential requirements of CAPI, and not those of these rules, apply to an authorised firm with an authorisation that permits it to conduct only captive insurance business and no other business that is or includes a regulated activity.

          Note 5   However, the prudential requirements of these rules apply to a QFC insurer with an authorisation that also permits it to conduct insurance mediation, captive insurance management or captive insurance business.

          Amended by QFCRA RM/2013-1 and QFCRA RM/2014-3 (as from 1st January 2015).

          • PINS 1.2.1 Guidance [Deleted]

            Deleted by QFCRA RM/2011-4 (as from 1st July 2011).

      • Division 1.2.B Division 1.2.B Financial resources generally

        Inserted by QFCRA RM/2011-4 (as from 1st July 2011).

        • PINS 1.2.2 PINS 1.2.2 Financial resources — general requirement

          (1) A QFC insurer (other than a QFC captive insurer) must at all times have financial resources of the kinds and amounts required by, and calculated in accordance with, these rules.

          Note QFC insurer (or insurer) is defined in r 1.2.3.

          (2) An insurer must also at all times have additional financial resources that are adequate for the nature, size and complexity of its business to ensure that there is no significant risk that its liabilities cannot be met as they fall due.
          Inserted by QFCRA RM/2011-4 (as from 1st July 2011).

          • PINS 1.2.2 Guidance

            For rule 1.2.2 (2), the insurer's governing body should assess whether the minimum financial resources required by these rules are adequate for the firm's business. Additional financial resources should be maintained by the insurer if its governing body considers that the required minimum financial resources do not adequately reflect the risks of the firm's business.

            Amended by QFCRA RM/2012-5 (as from 1st July 2013).

      • Division 1.2.C Division 1.2.C Key terms and basic concepts

        Inserted by QFCRA RM/2011-4 (as from 1st July 2011).

        • PINS 1.2.3 Who is a QFC insurer (or insurer)?

          A QFC insurer (or insurer) is an authorised firm with an authorisation to conduct insurance business.

          Amended by QFCRA RM/2013-1 (as from 1st January 2015).

        • PINS 1.2.4 What is insurance business?

          Insurance business is the business of conducting either or both of the following regulated activities:

          (a) effecting contracts of insurance;
          (b) carrying out contracts of insurance.

          Note Regulated activity and the regulated activities mentioned in this definition are defined in the glossary.

          Inserted by QFCRA RM/2011-4 (as from 1st July 2011).

        • PINS 1.2.5 Types of insurance business

          (1) General insurance business is insurance business in relation to general insurance contracts.
          (2) Long term insurance business is insurance business in relation to long term insurance contracts.
          Inserted by QFCRA RM/2011-4 (as from 1st July 2011).

        • PINS 1.2.6 Types of insurance contracts

          (1) A general insurance contract is a contract of insurance that is a General Insurance Contract under the Financial Services Regulations, Schedule 3, Part 3, paragraph 10.3.
          (2) A long term insurance contract is a contract of insurance that is a Long Term Insurance Contract under the Financial Services Regulations, Schedule 3, Part 3, paragraph 10.4.
          Editorial changes (as from 1 January 2015).

        • PINS 1.2.7 Takaful insurance concepts

          (1) A takaful entity is:
          (a) an Islamic financial institution that conducts takaful business; or
          (b) a QFC insurer operating an Islamic window.
          (2) Takaful business is the part of insurance business conducted by a takaful entity that is Islamic financial business.

          Note Insurance business is defined in r 1.2.4.
          (3) A takaful fund is a fund established and maintained by a takaful entity under rule 6.2.1 for its takaful business.
          Amended by QFCRA RM/2015-3 (as from 1st January 2016)
          Amended by QFCRA RM/2021-1 (as from 1st July 2021).

        • PINS 1.2.8 PINS categories

          (1) For these rules, general insurance business is divided into 4 PINS categories, as follows:
          (a) PINS category 1 — general insurance business that falls under general insurance category 1 or 2;
          (b) PINS category 2 — general insurance business that falls under general insurance category 3 or 18;
          (c) PINS category 3 — general insurance business that falls under general insurance category 4, 5, 6, 7, 8, 9, 16 or 17;
          (d) PINS category 4 — general insurance business that falls under general insurance category 10, 11, 12, 13, 14 or 15.
          (2) In subrule (1)—

          general insurance category means a category of general insurance set out in FSR, Schedule 3, Part 3, paragraph 10.3.
          Editorial changes (as from 1 January 2015).

    • PINS Part 1.3 PINS Part 1.3 Governing body certification

      Editorial changes (as from 1 January 2015).

      • PINS 1.3.1 Requests for views of insurer's governing body

        (1) The Regulatory Authority may, by written notice given to an insurer, request the governing body of the insurer to give the authority, within a stated reasonable period, its view about—
        (a) the insurer's compliance with any relevant rule or requirement to which the insurer is subject to under QFC law;
        (b) any prudential returns or any other statement or return being true and correct and not false or misleading; or
        (c) any other matter the Regulatory Authority specifies in the request.
        (2) The authorised firm must ensure that the request is complied with.
        (3) The power given by this rule is additional to the Regulatory Authority's other powers.

        Note See eg Financial Services Regulations, art 48 (Powers to obtain documents and information).
        Amended by QFCRA RM/2013-1 and Editorial changes (as from 1st January 2015).

    • PINS Part 1.4 PINS Part 1.4 Prudential returns

      Editorial changes (as from 1 January 2015).

      • PINS 1.4.1 Preparation of prudential returns

        (1) An insurer must prepare the annual, biannual and quarterly prudential returns that it is required to prepare by the Regulatory Authority by written notice published on an approved website.
        (2) The Regulatory Authority may, by notice given to an insurer—
        (a) require the insurer to prepare additional prudential returns; or
        (b) exempt the insurer from the requirement to prepare annual, biannual or quarterly returns or a particular annual, biannual or quarterly return.
        (3) An exemption under subrule (2) (b) may be subject to conditions, restrictions or requirements.
        (4) An insurer given an exemption under subrule (2) (b) must comply with all conditions, restrictions and requirements to which the exemption is subject.
        Amended by QFCRA RM/2012-5 (as from 1st July 2013).

      • PINS 1.4.2 [Deleted]

        [Deleted]

        Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

      • PINS 1.4.3 [Deleted]

        Deleted by QFCRA RMI/2008-2 (as from 1st October 2008).

      • PINS 1.4.4 [Deleted]

        Deleted by QFCRA RMI/2008-2 (as from 1st October 2008).

      • PINS 1.4.5 [Deleted]

        [Deleted]

        Deleted by QFCRA RM/2010-04 (as from 1st October 2010)

      • PINS 1.4.2 Time limit for annual prudential returns of insurers

        An insurer must give an annual prudential return to the Regulatory Authority within 3 months after the day the relevant financial year of the insurer ends.

        Example

        If a financial year of an insurer ends on 31 December in a year, the annual prudential return for the year must be given to the Regulatory Authority before 1 April of the next year.
        Amended by QFCRA RM 2019-1 (as from 28th March 2019).

      • PINS 1.4.3 Time limit for biannual prudential returns of insurers

        (1) An insurer must give a biannual prudential return to the Regulatory Authority within 1 month after the day the relevant standard biannual period ends.
        Example

        If a standard biannual period ends on 30 June in a year, the biannual prudential return for the period must be given to the Regulatory Authority before 1 August in the year.
        (2) In this rule:

        standard biannual period means the 6-month period ending on 30 June or 31 December.
        Amended by QFCRA RM 2019-1 (as from 28th March 2019).

      • PINS 1.4.4 PINS 1.4.4 Time limit for quarterly prudential returns of insurers

        (1) An insurer must give a quarterly prudential return to the Regulatory Authority within 1 month after the day the relevant standard quarter ends.
        Example

        If a standard quarter ends on 31 March in a year, the quarterly prudential return for the period must be given to the Regulatory Authority before 1 May in the year.
        (2) In this rule:

        standard quarter means the 3-month period ending on 31 March, 30 June, 30 September or 31 December.
        Amended by QFCRA RM 2019-1 (as from 28th March 2019).

        • PINS 1.4.8 Guidance [Deleted]

          Deleted by QFCRA RM02/2009 (as from 6th December 2009).

    • PINS Part 1.5 PINS Part 1.5 Restrictions on insurance business

      Editorial changes (as from 1 January 2015).

      • PINS 1.5.1 Certain kinds of insurance business not to be combined

        An insurer must not carry on, in or from the QFC, both long term insurance business and general insurance business unless the general insurance business is restricted to categories 1 (accident) and 2 (sickness).

        Amended by QFCRA RM/2015-3 (as from 1st January 2016).

      • PINS 1.5.2 Insurers not to carry on non-insurance business

        (1) An insurer must not carry on any activity other than insurance business unless the activity is directly connected with, or carried on for the purposes of, insurance business.
        (2) For this rule, managing investments is not an activity directly connected with, or carried on for the purposes of, insurance business.

        Guidance

        1. The following activities will normally be considered to be directly connected with, or carried on for the purposes of, insurance business carried on by an insurer:
        a. investing, reinvesting or trading, as investor or rabb ul maal and for the insurer's own account, that of its subsidiary, its holding company or any subsidiary of its holding company but not any other party, in shares, debt instruments, investment accounts, units in collective investment schemes, certificates of mudaraba, certificates of musharaka or other forms of investments that are intended to earn profit or return for the investor;
        b. rendering other services related to insurance business operations including actuarial, risk assessment, loss prevention, safety engineering, data processing, accounting, claims handling, loss assessment, appraisal and collection services;
        c. acting as agent for another insurer in relation to contracts of insurance in which both insurers participate;
        d. establishing subsidiaries or associates engaged or organised to engage exclusively in 1 or more of the businesses mentioned in a. to c.;
        e. insurance mediation.
        2. The Regulatory Authority may give individual guidance on other business activities that may be taken to be directly connected with, or carried on for the purposes of, insurance business carried on by an insurer.
        Amended by QFCRA RM/2015-1 (as from 1st July 2015).

      • PINS 1.5.4 PINS 1.5.4 [Deleted]

        Deleted by QFCRA RM/2015-1 (as from 1st July 2015).

        • PINS 1.5.4 Guidance [Deleted]

          Deleted by QFCRA RM/2015-1 (as from 1st July 2015).