ES-2 ES-2 Transition Rules
ES-2.1 ES-2.1 General Requirements
ES-2.1.1
Insurance licensees who were licensed prior to the publication of Volume 3 (Insurance), do not need to resubmit an application for a license.ES-2.1.2
Insurance licensees licensed prior to 1 June 2005 will have their license category, and the scope of their authorisation, confirmed in an exchange of letters.Amended: January 2007ES-2.1.3
Insurance licensees licensed prior to 1 June 2005, must comply with all other requirements of the Rulebook, when these take effect on 1 June 2005, unless different transition arrangements have been agreed in writing with the CBB beforehand or in accordance with the transition rules incorporated throughout in this Module.Amended: January 2007ES-2.2 ES-2.2 Module AU — Authorisation
ES-2.2.1
In instances where an
insurance licensee carries on a commercial business, at the time where the Insurance Rulebook becomes effective, theinsurance licensee must notify the CBB to establish the transitional rules in relation to this prohibited activity (refer to AU-1.1.11).Amended: January 2007ES-2.3 ES-2.3 Module HC — High-Level Controls
ES-2.3.1
Insurance brokers who were licensed prior to the introduction of Volume 3 (Insurance), and who were unincorporated entities or natural persons at that time, may continue as such until 31 December 2006.ES-2.3.2
[This Paragraph was deleted in April 2011].
Deleted: April 2011
Amended: January 2007ES-2.3.3
The updated Module is effective on 1st January 2011. All
insurance licensees to which Module HC applies must be in full compliance by the financial year end 2011.Added: April 2011ES-2.4 ES-2.4 Module AA — Auditors and Actuaries
ES-2.4.1
[This Paragraph was deleted in April 2014.]
Deleted: April 2014
Amended: July 2007ES-2.4.2
[This Paragraph was deleted in April 2014.]
Deleted: April 2014
Amended: April 2008
Adopted: January 2007ES-2.4.3
The first five year-period where the requirement for the rotation of audit partner referred to in Paragraph AA-1.3.1 takes effect, ends 31 December 2010. Therefore, unless there has been a change in the partner appointed since the Rulebook was issued in May 2005, or if a company has been licensed since the Rulebook has been issued, insurance licensees will need to have a new partner responsible for the audit engagement for the year 2011.
Adopted: October 2007ES-2.5 ES-2.5 Module GR — General Requirements
Books and Records (GR-1)
ES-2.5.1
All
insurance licensees must comply with the requirements for books and records outlined in Chapter GR-1, effective 1 July 2005.Professional Indemnity Coverage (GR-10)
ES-2.5.2
Except as provided for by Paragraph ES-2.5.3, professional indemnity coverage requirements must be met by
insurance brokers andinsurance consultants by 31 December 2005.ES-2.5.3
Unincorporated
Bahraini insurance brokers licensed prior to 1 June 2005 must meet the professional indemnity coverage requirements by 31 December 2006.Appointed Representatives (GR-9)
ES-2.5.4
Requirements for the registration of appointed representatives and minimum qualifications as outlined in Chapter GR-9 are effective 1st January 2010.
Adopted: October 2009ES-2.6 ES-2.6 Module CA — Capital Adequacy
ES-2.6.1
Except as otherwise noted below, the requirements of Module CA are to be implemented, effective 31 December 2005.
Insurance Firm
ES-2.6.2
Bahraini insurance firms licensed prior to 1 April 2005 that do not meet the requirements of Paragraph CA-1.2.1, will be required to meet the requirements for minimum Tier 1 capital by 31 December 2007. In addition, the requirements to maintain a capital available in excess of the greater of the Required Solvency Margin and minimum fund must be met byinsurance firms by 31 December 2005.Insurance firms who are in run-off and whose license is restricted from entering into new contracts of insurance as per Paragraph GR-8.1.8, are grandfathered and not required to apply the requirements of Paragraph CA-1.2.1.Amended: January 2007
Amended: October 2007Insurance Broker
ES-2.6.3
In respect of licensees who were carrying out activities that fall within the definition of the regulated activity of
insurance broker prior to 1 April 2005, the requirements of Paragraph CA-1.3.1 (capital requirements) will apply from 1 January 2007.Amended: January 2007Takaful Firms
ES-2.6.4
Where a
takaful firm was licensed prior to the Rulebook coming into force, Section ES-2.6.5 applies.Amended: April 2014
Amended: October 2007
Amended: January 2007ES-2.6.5
A
takaful firm operating on a basis other than that prescribed by Paragraph CA-8.2.1 at the date the Rulebook comes into force, must in respect of alltakaful contracts written after this date, manage those contracts in accordance with Paragraph CA-8.2.1.Takaful contracts written before this date hereafter referred to as pre-existing contracts, must continue to be managed in accordance with thetakaful model or models operated by thetakaful firm prior to Paragraph CA-8.2.1 coming into force, until such time as all obligations of thetakaful fund or funds under those pre-existing contracts have been discharged in full.Amended: April 2014
Amended: October 2007
Amended: January 2007ES-2.6.6
[This Paragraph was deleted in April 2014.]
Deleted: April 2014
Amended: January 2007ES-2.6.7
[This Paragraph was deleted in April 2014.]
Deleted: April 2014
Amended: October 2007
Amended: January 2007ES-2.6.8
[This Paragraph was deleted in April 2014.]
Deleted: April 2014
Amended: January 2007ES-2.6AA1 ES-2.6AA1 Module BC – Business Conduct
ES-2.6AA1.1
All
insurance licensees must have appropriate customer complaints handling procedures and systems for effective handling of complaints made by customers by 31st March 2012.Added: April 2012ES-2.6AA2 ES-2.6AA2 Module CL – Client Money
ES-2.6A ES-2.6A Module RM — Risk Management
ES-2.6B ES-2.6B Module FC — Financial Crime
ES-2.6B.1
For the year ending 31 December 2006,
insurance licensees must submit the report required as per Paragraph FC-3.3.1 (d), no later than 30 June 2007.Adopted: January 2007ES-2.7 ES-2.7 Module BR — CBB Reporting
ES-2.7.1
The first Insurance Firm Return (IFR) for both
conventional insurance firms andtakaful firms , required under Section BR-1.1, must be submitted to the CBB for the financial year ending 31 December 2006.Amended: January 2007ES-2.7.2
The first Group Insurance Firm Return (GIFR) for
insurance firms , required under Section BR-1.3, must be submitted to the CBB for the financial year ending 31 December 2006.Amended: January 2007ES-2.7.3
The first quarterly return (IFRQ) for insurance firms, required under Section BR-1.4, must be submitted to the CBB for the quarter ending 31 March 2007.
Amended: January 2007ES-2.7.4
The first annual return (IBR) for
insurance brokers , required under Section BR-1.2A, must be submitted to the CBB for the semi-annual period ending 31 December 2012.Added: April 2012ES-2.7.5
The first semi-annual return (IBRS) for
insurance brokers , required under Section BR-1.4A, must be submitted to the CBB for the semi-annual period ending 30 June 2012.Added: April 2012ES-2.8 ES-2.8 Module PD — Public Disclosure
ES-2.8.1
For purposes of Chapter PD-2, semi-annual disclosure requirements are effective for the period ending 30 June 2008.
Amended: January 2007
