• PINS Part 12.1 PINS Part 12.1 Application and purpose

    Editorial changes (as from 1 January 2015).

    • PINS 12.1.1 Application of Chapter 12

      This Chapter applies to:

      (a) every QFC incorporated insurer (other than a QFC captive insurer); and
      (b) every branch in respect of its QFC insurance business operations.
      Amended by QFCRA RM/2015-3 (as from 1st January 2016).

    • PINS 12.1.2 Meanings of terms relating to run-off

      In this Chapter:

      (a) an insurer in run-off means an insurer that has ceased to effect contracts of insurance in respect of the whole or a category of its insurance business (or, in the case of a branch, the whole or a category of its QFC insurance business), and a takaful fund in run-off and a long term insurance fund in run-off are construed accordingly; and
      (b) going into run-off or placing insurance business into run-off means ceasing to effect contracts of insurance, and placing a takaful fund or a long term insurance fund into run-off are construed accordingly.
      Amended by QFCRA RM/2015-3 (as from 1st January 2016).

    • PINS 12.1.3 PINS 12.1.3 Compliance with Chapter 12 by insurer directed to go into run-off

      An insurer in run-off by virtue of a decision or notice of the Regulatory Authority to the effect that the insurer is to cease to effect contracts of insurance shall comply with this Chapter except to the extent the Regulatory Authority acting under its powers in the FSR directs otherwise.

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

      • PINS 12.1.3 Guidance

        1. The purpose of this Chapter is to set out prudential provisions applying to insurers that cease to effect insurance business, either wholly or in respect of a particular category. The provisions are also applicable to Cells, takaful funds and long term insurance funds, but do not (because of the effect of PINS Rule 12.1.2) apply to non-QFC insurance business of a branch.
        2. An insurer may be in run-off because of a decision or notice of the Regulatory Authority under its powers in the FSR requiring an insurer to cease to effect certain contracts of insurance.
        Amended by QFCRA RM/2013-1 and Editorial changes (as from 1st January 2015).

    • PINS 12.1.4 PINS 12.1.4 Certain contracts to be disregarded

      For the purposes of this Chapter, in determining whether an insurer is effecting contracts of insurance, or has ceased to effect contracts of insurance, including contracts of insurance effected through a takaful fund or a long term insurance fund, contracts of insurance effected under a term of an existing contract of insurance will be ignored unless the Regulatory Authority decides otherwise in respect of any particular contract.

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

      • PINS 12.1.4 Guidance

        The effect of PINS Rule 12.1.4 is to disregard, for the purposes of determining whether the Chapter applies, contracts of insurance that are effected by the insurer as a consequence of a term of an existing contract of insurance. A contract will normally only be regarded as being effected under a term of an existing contract if the insurer does not have discretion to decline to effect the new contract or if it would be unreasonable for the insurer, having regard to the interests of the policyholder, to decline to effect it.

        Editorial changes (as from 1 January 2015).