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  • ES-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 by insurance 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 2007

    • Insurance 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 2007

    • Takaful 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 2007

      • ES-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 all takaful 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 the takaful model or models operated by the takaful firm prior to Paragraph CA-8.2.1 coming into force, until such time as all obligations of the takaful fund or funds under those pre-existing contracts have been discharged in full.

        Amended: April 2014
        Amended: October 2007
        Amended: January 2007

      • ES-2.6.6

        [This Paragraph was deleted in April 2014.]

        Deleted: April 2014
        Amended: January 2007

      • ES-2.6.7

        [This Paragraph was deleted in April 2014.]

        Deleted: April 2014
        Amended: October 2007
        Amended: January 2007

      • ES-2.6.8

        [This Paragraph was deleted in April 2014.]

        Deleted: April 2014
        Amended: January 2007