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)