The IA issues a decision to organize the operations of agents

: 4/17/2011

Sunday, April 17, 2011

The Insurance Authority (IA) stated that the new regulations as to the organization of the operations of insurance agents in the State which were issued by H.E Eng. Sultan bin Saeed Al Mansouri, Minister of Economy and Chairman of the IA, granted the insurance agents licensed to practice the operations of insurance agency in the State a period of one calendar year to regularize their status in accordance with the regulations.

H.E. Fatima Mohammed Ishaq Al Awadi, Deputy Director General of the IA said: "the issuance of the decision comes amid the lack of regulations or special instructions regarding the insurance agents under the Federal Law number 9 of 1984 concerning the insurance companies and agents, which was revoked with the issuance of the Federal Law number 6 of 2007 concerning the establishment of the IA and organization of operations thereof".

She added in a statement released yesterday: "items of the new decision number 8 of 2011 were formed according to the considerations of the Federal Law number 6 of 2007 concerning the establishment of the IA and organization of operations thereof"

She added: "the new regulations address the issue of agents comprehensively, whether in terms of the requirements that should be fulfilled by those wishing to practice the profession of insurance agent, or the academic qualifications and practical experience that should be fulfilled by them, as well as the documents that should be submitted and the financial guarantees represented in the amount of capital, in case the agent is a company, which was set by the decision at AED500,000 and the requirement of submitting an insurance policy against professional liability". She noted that the sum insured was set at two million Dirhams provided that the deductible may not exceed AED100,000”.

 

She noted that the new regulations state it is not allowed to combine insurance of persons and fund accumulation operations on the one hand, and property and liability insurance operations on the other hand, in line with the provisions of Article 25 of the said Federal Law number 6 of 2007.

She asserted that the new regulations state it is not allowed for the insurance agent to act as an agent for more than one insurance company, or practice the profession of insurance brokerage, to prevent mixing of both activities. The conditions required to register a natural person in the insurance agents register require that such person has never been cancelled or suspended from practicing the operations of insurance agent, insurance broker, or any of the professions related to insurance due to a disciplinary penalty.

She added: “the new decision stipulated for opening a branch for an insurance agency in the State that a period not less two years from the date of registration of the company in the register passed through which the company practiced business in reality and was not subject to a disciplinary penalty”. She explained that the new update featuring the new regulations is related to the listing of profession practice and ethics within the instructions, and it is an issue that obliges the insurance agent to duly maintain regular records and books, and to list the data and information practiced in its capacity as an agent for the company, and to maintain them for not less than five years from the date of closure thereof.  

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