• CAPI Part 10.1 CAPI Part 10.1 General provisions

    • CAPI 10.1.1 Terms and concepts relating to run-offs

      (1) A firm that is a QFC captive insurer, a cell or a long term insurance fund is in run-off if the firm, cell or fund has ceased to effect contracts of insurance for the whole of its captive insurance business or for a category of contracts of insurance previously effected by it.

      Note However, a firm, cell or long term insurance fund that is in run-off continues to carry out the contracts of insurance included in the run-off by paying out any future claims arising from them and permitting premiums and losses to run to their normal expiration.
      (2) The reasons why a firm, cell or long term insurance fund may go into run-off or be placed into run-off (and thereby cease to effect contracts of insurance as described in subrule (1)) include—
      (a) a decision of the governing body of the firm to cease to conduct captive insurance business; and
      (b) a business or strategic decision to cease to effect contracts of insurance for a category of contracts of insurance; and
      (c) the winding up or liquidation of the business; and
      (d) a decision of the Regulatory Authority to withdraw the firm's authorisation; and
      (e) a direction of the Regulatory Authority; and
      (f) a court order or decision to wind up or liquidate the group to which the firm belongs.
      Derived from QFCRA RM/2011-1 (as from 1st July 2011)

    • CAPI 10.1.2 Obligation of firm in run-off under FSR

      Unless the Regulatory Authority directs otherwise, a firm must comply with this chapter if the firm is in run-off because of a decision or written notice of the authority, under the Financial Services Regulations, to the effect that the firm is to cease to effect contracts of insurance.

      Derived from QFCRA RM/2011-1 (as from 1st July 2011)

    • CAPI 10.1.3 CAPI 10.1.3 Contracts effected under existing term

      (1) In determining whether a firm is effecting contracts of insurance (or whether a firm has ceased to effect contracts of insurance), contracts of insurance that are effected under a term of an existing contract must be ignored unless the Regulatory Authority decides otherwise in respect of a particular contract.
      (2) This rule applies whether the contracts of insurance are effected through a cell or long term insurance fund.
      Derived from QFCRA RM/2011-1 (as from 1st July 2011)

      • CAPI 10.1.3 Guidance

        The effect of this rule is to disregard, for the purpose of determining whether this chapter applies, contracts of insurance that are effected by a firm because 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—

        (a) the firm does not have discretion to decline to effect the new contract; or
        (b) it would be unreasonable for the firm, having regard to the interests of the policyholder, to decline to effect the new contract.
        Derived from QFCRA RM/2011-1 (as from 1st July 2011)