GR-7.1.1

Article 181 of the CBB Law governs the deposits required by insurance licensees.

GR-7.1.2

Insurance firms, except for captive insurers and insurance firms who are in run-off and whose license is restricted from entering into new contracts of insurance as per Paragraph GR-8.1.3, must maintain a cash deposit with a retail bank licensed to do business in Bahrain, for the following amounts:

GR-7.1.3 [This Paragraph was deleted in January 2007].

GR-7.1.4

Insurance brokers must maintain a cash deposit with a retail bank licensed to do business in Bahrain for the following amounts:

GR-7.1.5

The cash deposit must be in the name of the insurance firm or insurance broker and for the order of the CBB. The cash deposit and accumulated interest (or profit) thereon may not be disposed of except by written permission of the CBB.

GR-7.1.6

The deposit and any of its accumulated interest (if any) may be moved to another retail bank licensed to do business in Bahrain, providing that prior written approval has been obtained from the CBB. When seeking CBB approval, the insurance licensee must provide a valid reason for requesting the move to another retail bank.

GR-7.1.7

In the case of insurance licensees originally licensed as exempt companies, insurance licensees may opt to have the cash deposit required as per Paragraphs GR-7.1.2 and GR-7.1.4 maintained with the CBB.