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  • [ C ]

    • Capital available

      Is the sum of an insurance firm's Tier 1 and Tier 2 capital resources as determined by Module CA.

    • Capital sum at risk

      The benefit amounts payable should the insured event occur, less the mathematical reserves held in respect of the relevant contract. See Rule CA-2.1.11.

    • Capital sum at risk calculation

      The calculation described in Paragraph CA-2.1.11.

    • Captive insurance firm or captive insurer

      An insurance firm in Categories C1-C2 that insures or reinsure only the risks of its owners or group members.

    • Category C1

      (as defined under Paragraph CA-2.1.6)

      An insurance firm whose business is restricted to insuring only the insurance risks (other than liability risk) of its shareholder(s) or those of subsidiary or associated companies of its shareholder(s).

    • Category C2

      (as defined under Paragraph CA-2.1.6)

      An insurance firm whose business is restricted to insuring only the risks of its shareholder(s) or of subsidiary or associated companies of its shareholder(s) and whose business may include liability risks, subject to the CBB being satisfied that the activity, capital structure and management provide sufficient protection to potential third party claimants.

    • Category 1 insurer

      (as defined under Paragraph CA-2.1.6)

      An insurance firm whose license is limited to any of the following types of insurance: Fire; Damage to property; Health; and Miscellaneous financial loss.

    • Category 2 insurer

      (as defined under Paragraph CA-2.1.6)

      An insurance firm whose license includes any of the following types of insurance: marine cargo and marine hull; aviation; motor; engineering; liability; and any other general insurance class not specifically mentioned. These may only be in addition to any category 1 activities. Note short term refers to policies whose coverage periods are not more than one year.

    • Category 3 insurer

      (as defined under Paragraph CA-2.1.6)

      An insurance firm whose license includes any of the following types of insurance: life insurance of all types; personal accident whose term is over 1 year; and fund accumulation insurance.

    • Category 4 insurer

      (as defined under Paragraph CA-2.1.6)

      An insurance firm, licensed prior to April 1, 2005 and whose license includes any of the types of insurance specified in Category 3 and in Category 1 or 2, or both.

    • Chief Executive, Chief Executive Officer or CEO

      Chief executive, chief executive officer or CEO. The board shall determine that person's actual title, which may be 'CEO', 'Chief Executive Officer', 'President', 'Managing Director', or another title.

    • Claim basis calculation (of solvency margin)

      The calculation contained in Paragraph CA-2.1.14.

    • Client

      See Customer

    • Client money

      Is money of any currency that an insurance broker or appointed representative receives and holds for its client (or clients of appointed representatives) when carrying on insurance mediation. It can include premiums/contributions and premium/ contribution refunds.

      Added: April 2012

    • Client money account

      A separate bank account of the insurance broker or appointed representative to hold money as agent of the insurer that conforms to the terms of the agreement with the insurer. The terms of the agreement between the insurance broker or appointed representative and the retail bank should clearly state that the client of the insurance broker or appointed representative retains full legal ownership of the funds. The terms of the bank agreement should also clearly state that only the following monies can be withdrawn from the client money account:

      (a) Premium monies required to be paid on behalf of the client to (re)insurance firms or other insurance intermediaries for the purchase of contracts of insurance;
      (b) Monies drawn on a client's written authority in accordance with the insurance contract; and
      (c) Monies which may by mistake or accident have been paid into the account.
      Added: April 2012

    • Close link

      (as defined under Paragraph GR-6.2.1)

      An insurance licensee ("A") has close links with another undertaking ("C"), if:

      (a) C is a parent undertaking of A;
      (b) C is a subsidiary undertaking of A;
      (c) C is a parent undertaking of a subsidiary undertaking of A;
      (d) C is a subsidiary undertaking of a parent undertaking of A;
      (e) C owns or controls 20% or more of the voting rights or capital of A; or
      (f) A, any of its parent or subsidiary undertakings, or any of the subsidiary undertakings of its parent, owns or controls 20% or more of the voting rights or capital of C.

    • Conflict of interest

      A situation when a person or an entity has competing professional or personal obligations to other parties in a financial transaction (e.g. underwriting a securities transaction and simultaneously advising clients whether to buy the security or not) or in ongoing financial relationships (e.g. when a licensee has a director or one of its major borrowers on its board), or personal or financial interests that would make it difficult to fulfil his duties fairly.

      Added: October 2011

    • Contract of insurance

      Any contract of insurance which is a long-term insurance contract or a general insurance contract, including:

      a) Fidelity bonds, performance bonds, administration bonds, customs bonds or similar contracts of guarantee, where these are:
      i) Effected or carried out by a person not carrying on a banking business;
      ii) Not effected merely incidentally to some other business carried on by the person effecting them; and
      iii) Effected in return for the payment of one or more premiums;
      b) Tontines;
      c) Capital redemption contracts or pension fund management contracts, where these are effected or carried out by a person who:
      i) Does not carry on a banking business; and
      ii) Otherwise carries on the regulated activity of effecting or carrying out contracts of insurance;
      d) Contracts to pay annuities on human life; but not including a funeral plan contract. In this definition, 'annuities on human life' does not include superannuation allowances and annuities payable out of any fund applicable solely to the relief and maintenance of persons engaged or who have been engaged in any particular trade or profession, or the dependants of such persons.

    • Control

      (in relation to the acquisition, increase or reduction of control of a firm) the relationship between a person and the firm or other undertaking of which the person is a controller.

    • Controlled function

      A function of a firm that may only be exercised by a person duly authorised by the BMA to do so.

    • Controller

      A person who, in relation to a licensed firm, falls into any of the categories listed in Section GR-5.2.

    • Conventional (re)insurance

      (re)insurance that is not specifically formulated with respect to Islamic principles, which is not intended to convey an opinion as to whether or not that insurance is Shari'a compliant or not.

    • Counterparty

      In relation to an insurance firm: any one individual; any one unincorporated body of persons, any one company not being a member of a group; any group of companies excluding any companies within the group which are subsidiary undertakings of the insurance firm; or any government of a jurisdiction together with all the public bodies, local authorities or nationalised industries of that jurisdiction, in which the insurance firm has made investments or against whom it has rights whether in pursuance of a contract entered into by the insurance firm or otherwise.

    • Counterparty limit

      Where the holding of an asset implies the existence of a counterparty, the largest amount of assets held with an individual counterparty permitted to be taken into account for the purposes of the solvency requirements of the capital adequacy rules.

    • Credit risk

      (as defined under Paragraph RM-2.1.4)

      Credit risk is the risk that a counterparty will not meet its obligations in accordance with agreed terms, causing a financial loss to the insurance firm. In the case of an insurance firm, credit risk will normally relate to exposures to:

      (a) Reinsurance counterparties;
      (b) Assets (e.g. stock, loans);
      (c) Derivatives; and
      (d) Insurance debtors (premiums due from insured persons and intermediaries).

    • Customer

      Any person with or for whom a person conducts or intends to conduct insurance business or ancillary business, whether on his own behalf or as agent for or on behalf of another.