IM-A.1.1

This Module summarises the key aspects of requirements applicable to insurance intermediaries and insurance managers licensed in Bahrain, which are set out in full elsewhere in the different subject Modules of Volume 3 (Insurance). This Module is intended as an introductory guide to these Regulations and Directives, for potential license applicants, insurance brokers, insurance consultants, insurance managers and other interested parties. This Module only contains guidance material; in the event of discrepancy between this Module and the rules themselves, the latter will prevail.

IM-A.1.2

For the purposes of this Module, the following terms will apply:

Insurance Broker

As per Paragraph AU-1.4.10, the broking of insurance contracts means:

Insurance Consultant

As per Paragraph AU-1.4.16, the offering of insurance advice (insurance consultant) means advising on insurance to third parties, without also acting as agent or making arrangements with a view to another person buying insurance.

Insurance Manager

As per Paragraph AU-1.4.20, the provision of insurance management services means the provision of management services to, or the exercising of managerial functions on behalf of, an insurance firm. An insurance manager is appointed by an insurance firm and is licensed in Bahrain to perform, under a contract of service, any managerial functions that are performed, or authority exercised, by a person who is not a Director nor an employee of the insurance firm, acting on the express or implied authority of its Board and/or General Manager. 'Managerial functions' include, but are not limited to, the effecting of contracts of insurance and the issuing of instructions for the settlement of claims.

Insurance Intermediary

For purposes of this Module, the term insurance intermediary refers to insurance brokers and insurance consultants.

IM-A.1.3

This Module contains the Central Bank of Bahrain's (CBB) Directive (as amended from time to time) relating to insurance intermediaries and insurance managers and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). The Directive in this Module is applicable to insurance licensees (including their approved persons).

IM-A.1.4

For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.