IMEB 2.3.2 Who is suitable to provide professional indemnity insurance?

(1) Before a firm takes out or renews a professional indemnity insurance policy with an insurer for this part, the firm must be satisfied, on reasonable grounds after conducting an appropriate assessment, that the insurer is a suitable person to provide the insurance policy to the firm.
(2) The firm must have systems and controls in place to ensure that the assessment remains correct.
(3) In assessing the suitability of the insurer, the firm must have regard to all relevant circumstances, including, for example, the following:
(a) the insurer's credit rating, capital and financial resources;
(b) the insurer's regulatory status and history;
(c) the insurer's expertise and market reputation;
(d) the regulatory and legal regimes of the jurisdiction in which the insurer is located.
Note Jurisdiction is defined in the glossary.
(4) Without limiting subrule (1), if an insurer is not a QFC insurer or a person of equivalent status in Qatar or a zone 1 country, the insurer cannot be a suitable person to provide a professional indemnity insurance policy to the firm unless all of the following requirements are met:
(a) the insurer is rated at least BBB by Standard & Poor's or the equivalent by another rating agency;
(b) the firm has given notice to the Regulatory Authority about its intention to take out or renew the insurance policy with the insurer;
(c) the firm has received written notice from the authority stating that it does not object to the firm taking out or renewing the insurance policy with the insurer.
Note QFC insurer is defined in rule 1.2.7. Writing is defined in the glossary.
(5) If the firm gives the Regulatory Authority notice under subrule (4) (b) and, within 28 business days after the day it gives the notice, the firm does not receive written notice from the authority stating that it objects to the firm taking out or renewing the professional indemnity insurance policy with the insurer, the firm is taken to have received written notice from the authority stating that it does not object to the firm taking out or renewing the insurance policy with the insurer.

Note Business day is defined in the glossary.
(6) If, at any time after the firm has taken out or renewed a professional indemnity insurance policy with an insurer, the Regulatory Authority considers that the insurer is, or is likely to become, unsuitable to provide the insurance policy, the authority may, by written notice given to the firm, require the firm to cancel the insurance policy and take out equivalent professional indemnity insurance with another insurer in accordance with this rule.
(7) If the firm is given a notice under subrule (6), the firm must comply with the notice within—
(a) the time stated in the notice; or
(b) if the Regulatory Authority allows additional time to comply with the notice — the additional time.
Derived from QFCRA RM/2011-3 (as from 1st July 2011)