• IMEB Part 1.2 IMEB Part 1.2 Key terms and basic concepts

    • IMEB 1.2.1 Who is an insurance intermediary?

      An insurance intermediary is an authorised firm (or firm) with an authorisation for insurance mediation.

      Note Authorised firm (or firm) and authorisation are defined in the glossary.

      Derived from QFCRA RM/2011-3 (as from 1st July 2011)

    • IMEB 1.2.2 What is insurance mediation?

      (1) Insurance mediation is any of the following activities:
      (a) giving advice to other persons about the merits of entering into contracts of insurance, whether as principal or agent;
      (b) acting as agent for other persons in relation to the buying or selling of contracts of insurance for them;
      (c) making arrangements with a view to other persons buying contracts of insurance, whether as principal or agent;
      (d) assisting in the administration or performance of contracts of insurance for or on behalf of policyholders.

      Note Person and contract of insurance are defined in the glossary.
      (2) Subrule (1) (a) includes making a statement, expressing an opinion, or giving a report, to another person if—
      (a) the conduct is intended to influence a person in making a decision to select a particular contract of insurance or particular cover under a contract of insurance; or
      (b) the conduct could reasonably be regarded as having that intention.
      (3) Subrule (1) (c) includes arrangements mentioned in the provision that do not result in another person buying a contract of insurance.
      (4) Subrule (1) (d) includes—
      (a) assisting policyholders to make claims under contracts of insurance; and
      (b) managing claims made by policyholders under contracts of insurance.
      (5) However, insurance mediation does not include any of the following activities:
      (a) an activity in relation to which all of the following requirements are met:
      (i) it is conducted in the course of a professional business;
      (ii) it may reasonably be regarded as a necessary part of any other services provided in the course of that professional business;
      (iii) it is not remunerated separately from the other services;
      (b) loss adjusting;
      (c) expert appraisal of insurance claims;
      (d) the giving of advice in any newspaper, journal, magazine, other periodical publication, broadcast service or similar service in any medium if the main purpose of the publication or service taken as a whole (including any advertisements or other promotional material contained in it) is not to cause or enable persons to buy, or to make a decision to select, a particular contract of insurance or particular cover under a contract of insurance;
      (e) the activity involves merely providing the means by which a party to a transaction can communicate to the other parties to the transaction;
      (f) the act of the other persons mentioned in subrule (1) (b) or (c) in entering, as principal, into a transaction in respect of a contract of insurance;
      (g) captive insurance management.

      Note Captive insurance management is defined in rule 1.2.5.
      Derived from QFCRA RM/2011-3 (as from 1st July 2011)

    • IMEB 1.2.3 Insurance mediation is regulated activity

      Insurance mediation is a regulated activity under the QFC Law and Financial Services Regulations if it is conducted by way of business as described in those regulations, article 25.

      Note Insurance mediation is defined in rule 1.2.2.

      Derived from QFCRA RM/2011-3 (as from 1st July 2011)

    • IMEB 1.2.4 Who is a captive insurance manager?

      (1) A captive insurance manager is an authorised firm (or firm) with an authorisation for captive insurance management.
      (2) A firm that is not incorporated in the QFC cannot be a captive insurance manager.

      Note Unlike some other regulated entities, captive insurance managers are not allowed to operate as a branch.
      Derived from QFCRA RM/2011-3 (as from 1st July 2011)

    • IMEB 1.2.5 What is captive insurance management?

      Captive insurance management is the administration of, and exercise of managerial functions for, a QFC captive insurer, and includes the administration of contracts of insurance for the insurer.

      Note Exercise and functions are defined in the glossary.

      Derived from QFCRA RM/2011-3 (as from 1st July 2011)

    • IMEB 1.2.6 Captive insurance management is regulated activity

      Captive insurance management is a regulated activity under the QFC Law and the Financial Services Regulations if it is conducted by way of business as described in those regulations, article 25.

      Note Captive insurance management is defined in rule 1.2.5.

      Derived from QFCRA RM/2011-3 (as from 1st July 2011)

    • IMEB 1.2.7 Who is a QFC insurer?

      A QFC insurer is a firm with an authorisation to conduct insurance business.

      Note Firm and authorisation are defined in the glossary.

      Derived from QFCRA RM/2011-3 (as from 1st July 2011)

    • IMEB 1.2.8 What is insurance business?

      Insurance business is the business of conducting either or both of the following regulated activities:

      (a) effecting contracts of insurance;
      (b) carrying out contracts of insurance.

      Note Regulated activity and the regulated activities mentioned in this definition are defined in the glossary.

      Derived from QFCRA RM/2011-3 (as from 1st July 2011)

    • IMEB 1.2.9 What is client money?

      For these rules, client money of a firm is money—

      (a) that the firm receives from or holds for a client in the course of, or in connection with, conducting insurance mediation in or from the QFC; or
      (b) that the firm treats as client money in accordance with chapter 3.

      Examples of money received in the course of, or in connection with, conducting insurance mediation

      1 premium, additional premium and return premium of all kinds
      2 claims and other amounts owing under contracts of insurance
      3 refunds and salvages
      4 fees, charges, taxes and similar fiscal levies relating to contracts of insurance
      5 discounts, commissions and brokerage

      Note Hold money is defined in rule 1.2.10 and insurance mediation is defined in rule 1.2.2. Money and client are defined in the glossary.
      Derived from QFCRA RM/2011-3 (as from 1st July 2011)

    • IMEB 1.2.10 When Does a Firm Hold Money?

      For these rules, a firm holds money if the money is held—

      (a) directly by the firm; or
      (b) in an account in the firm's name; or
      (c) by a person, or in an account in the name of a person, controlled by the firm.
      Derived from QFCRA RM/2011-3 (as from 1st July 2011)