• 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).