CAPI 6.1.1 CAPI 6.1.1 Classification of contracts(1) A firm that is a QFC captive insurer must, in its own records, classify—(a) contracts of insurance carried out by it as a captive insurer; and(b) contracts of reinsurance entered into by it as cedent;according to the category in which the contracts fall.
Note Cedent and category are defined in the glossary.(2) If a contract of insurance is in more than 1 category, a firm must record separately the portions of the contract that relate to each category.(3) However, a firm need not record immaterial portions of a contract of insurance separately.
Derived from QFCRA RM/2011-1 (as from 1st July 2011)
CAPI 6.1.1 Guidance
A portion of a contract of insurance insuring a risk of a category other than the principal category of the contract will not normally be regarded as material if the interest that it insures—(a) is both related and subsidiary to the principal interest or interests insured under the contract; and(b) constitutes less than 10% of the
gross written premiumunder the contract. Derived from QFCRA RM/2011-1 (as from 1st July 2011)