• PINS Chapter 11 PINS Chapter 11 Transfer of insurance business

    Editorial changes (as from 1 January 2015).

    • PINS Part 11.1 PINS Part 11.1 Transfer of insurance business — general

      Editorial changes (as from 1 January 2015).

      • PINS 11.1.1 PINS 11.1.1 Application — ch 11

        This Chapter applies to every QFC insurer (other than a QFC captive insurer).

        Note QFC insurer is defined in r 1.2.3.

        Editorial changes (as from 1 January 2015).

        • PINS 11.1.1 Guidance

          1. A transfer of insurance business, or relevant scheme, is the transfer of all the rights and obligations associated with this business from 1 insurer (the transferor) to another insurer (the transferee). When the transfer is complete, the transferee insurer is augmented by the assets and liabilities (and all future and past incidents attaching to those assets and liabilities) of the transferor insurer so that the policyholders and reinsurers continue to be subject to the same terms and conditions as those originally agreed. A transferor may transfer all its insurance business, or only some (such as a class or classes of insurance business).
          2. Transfers of insurance business can be undertaken for a variety of reasons, including restructuring (for example, exiting a line of business), assisting an QFC insurer in financial difficulty, and protecting policyholders. A relevant scheme does not refer to the ceding (reinsuring) of some or all of its policyholder liabilities to another insurer (reinsurer).
          Amended by QFCRA RM/2013-1 and Editorial changes (as from 1st January 2015).

      • PINS 11.1.2 Purpose — ch 11

        The purpose of this Chapter is to make rules under the Financial Services Regulations, article 103 modifying those regulations, Part 16 (Control of Business Transfers) in relation to the requirements for a relevant scheme.

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

      • PINS 11.1.3 Special meaning of insurer in ch 11

        (1) A reference in this Chapter to an insurer includes, but is not limited to, a QFC insurer.
        (2) In this rule:
        QFC insurer means an authorised firm with an authorisation to conduct insurance business.

        Note Insurance business is defined in r 1.2.4.
        Amended by QFCRA RM/2013-1 and Editorial changes (as from 1st January 2015).

      • PINS 11.1.4 Special meaning of insurance business in ch 11

        A reference in this Chapter to insurance business includes, but is not limited to, insurance business as defined in rule 1.2.4.

        Editorial changes (as from 1 January 2015).

    • PINS Part 11.2 PINS Part 11.2 Scheme report

      Editorial changes (as from 1 January 2015).

      • PINS 11.2.1 What scheme reports must include

        (1) The scheme report prepared in accordance with Article 97 of the FSR, must be in written form and include the following matters:
        (a) a rationale for the proposed relevant scheme;
        (b) the terms of the agreement or deed under which the proposed transfer is to be carried out;
        (c) the categories of insurance business to be transferred;
        (d) the amount of technical provisions, premiums, claims incurred and details of assets to be transferred;
        (e) particulars of any other arrangements necessary to give effect to the proposed relevant scheme.
        (2) The scheme report must also include a written actuarial report on the relevant scheme confirming that:
        (a) there will be no materially adverse consequences from the proposed transfer to the policyholders of either the transferor or transferee insurer; and
        (b) the transferor and/or transferee insurer continue to meet, if applicable, their minimum capital requirement after taking the proposed transfer into account.
        (3) The scheme report must also include a summary of the relevant scheme which contains, at a minimum, the following advice for affected policyholders:
        (a) that the insurer proposes to transfer the policyholder's policy or policies to another insurer, on or after a specified date;
        (b) the full name and contact details of the other insurer;
        (c) the effect of the transfer (this explanation may be brief and may, for example, explain that from the date of the transfer all rights and liabilities under the policies will be transferred to the other insurer, so that premiums will have to be paid to, and claims will have to be lodged with, that insurer);
        (d) any action the policyholder will need to take before or as a result of the transfer (for example, any changes in arrangements relating to paying premiums or lodging claims);
        (e) how the relevant scheme compares with possible alternatives;
        (f) if the policyholder does not need to take any action before or as a result of the transfer, notice of such to the policyholder;
        (g) details of the compensation offered to policyholders for any loss of rights or expectations;
        (h) how the policyholder can obtain further information and inspect relevant documents as may be available for public inspection.
        Amended by QFCRA RM/2015-3 (as from 1st January 2016).

    • PINS Part 11.3 PINS Part 11.3 Notification of proposed transfer

      Editorial changes (as from 1 January 2015).

      • PINS 11.3.1 Parties that must ensure notification requirements met

        (1) Whichever party to the relevant scheme is an QFC insurer must ensure that the notification requirements in PINS Rule 11.3.2 are met.
        (2) If both parties to the relevant scheme are QFC insurers, the transferor must ensure that the notification requirements in PINS Rule 11.3.2 are met.
        Amended by QFCRA RM/2015-3 (as from 1st January 2016).

      • PINS 11.3.2 Notices of intention

        (1) The QFC insurer must provide a notice of intention regarding the proposed transfer, which must include, at a minimum, details of the place or places, dates (which must not be for a period less than 30 days) and times that an affected policyholder may obtain a copy of the relevant scheme and any associated documentation.
        (2) The QFC insurer must publish the notice of intention in 2 national papers in the State approved by the Regulatory Authority (1 being in English and 1 in Arabic).
        Amended by QFCRA RM/2015-3 (as from 1st January 2016).

      • PINS 11.3.3 Provision to policyholders of scheme report summary

        The QFC insurer must provide the summary of the scheme report referred to in PINS Rule 11.2.1(3), to every policyholder resident in the State who is affected by the relevant scheme.

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