RM-B.1 RM-B.1 Scope
RM-B.1.1
Unless otherwise stated in a Rule, or exempted in writing by the CBB, the contents of this Module apply to
Bahraini insurance firms andBahraini insurance brokers on a consolidated basis, and tooverseas insurance firms andoverseas insurance brokers with respect to their operations either booked in or undertaken from Bahrain.Amended: January 2007RM-B.1.2
Because of the nature of their activities,
insurance brokers are not subject to Sections RM-4.1 (Market Risk) and RM-5.1 (Insurance Technical Risk).Amended: January 2007RM-B.1.3
The CBB will only consider granting an exemption to a Rule in this Module, where the
insurance firm concerned can demonstrate that it has equivalent systems and controls applied at the group or parent entity level, that achieve the same objective as the CBB requirement concerned. The purpose of such an exemption is to allow entity-wide or group-wide systems and requirements to be applied, where these achieve the same outcome: exemptions are therefore only likely to be given with respect tooverseas insurance licensees , and possibly Bahraini licensees that are part of an overseas group. Because of their general nature, exemptions will not be considered with regards to the requirements contained in Chapter RM-1 (Risk Management Systems and Controls).Amended: January 2007RM-B.1.4
For the purposes of Paragraph RM-B.1.1, 'consolidated basis' means including the branches and subsidiaries of the
Bahraini insurance firm orBahraini insurance broker , whether these are located inside or outside the Kingdom of Bahrain.Amended: January 2007RM-B.1.5
Unless otherwise stated in a Rule, or exempted in writing by the CBB, the contents of this Module apply to operators of insurance exchanges authorised to carry out insurance business in Bahrain.
Amended: January 2007RM-B.1.6
The contents of this Module do not apply to
insurance consultants ,insurance managers and toappointed representatives , because the nature of their activities only exposepolicyholders to limited financial risk.Amended: January 2007RM-B.1.7
While the business of
insurance managers is not subject to this Module, clients ofinsurance managers that areinsurance firms , such ascaptive insurers , are subject to the requirements of this Module. Theinsurance manager , in fulfilling its obligations to its clients, therefore needs to manage the affairs of its clients in accordance with the requirements of the Rulebook, including this Module.Amended: October 2007RM-B.1.8
An
insurance licensee's failure to establish, in the opinion of the CBB, adequate systems and controls will result in it being in breach of Condition 6 of the Licensing Conditions of Section AU-2.6 of Module AU (Authorisation). This failure may result in the CBB withdrawing or imposing restrictions on the license, or the licensee being required to inject more capital.Amended: January 2007
