• 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)