Liability risk

For greater certainty, the term 'liability risk' in Module CI includes professional liability, marine liability as well as public liability of the direct owner(s) of the captive insurer or those of its subsidiaries or associated companies.

Licensed principal

An insurance firm that appoints an appointed representative.

Licensee(s)

Any person licensed by the CBB under any of the Volumes of the CBB Rulebook.

Linked long-term insurance business

Contracts of life business where the benefits are wholly or partly to be determined by reference to the value of, or the income from, property of any description or by reference to fluctuations in, or in an index of, the value of property of any description.

Liquidation

The process of terminating a company's activities whereby all creditors are discharged either in full (a solvent liquidation), or in part (an insolvent liquidation) and any remaining funds are returned to the shareholders. This process normally takes place in accordance with the requirements of specific legislation in the country of incorporation. In Bahrain this includes the Bankruptcy and Preventative Settlements Act.

Liquidity risk

(as defined under Paragraph RM-3.1.3)

Liquidity risk is the risk that even where an insurance licensee has adequate capital resources, it lacks available resources to meet liabilities when they fall due. Liquidity risk can result from claims falling due earlier than anticipated, higher than expected policy surrender or changes in mortality rates.

Listed security

In relation to an investment, that there has been granted and not withdrawn a listing in respect of that investment on any stock exchange in an GCC State which is a stock exchange within the law of that GCC State, or on any stock exchange where that exchange is a full member of the World Federation of Exchanges.

Locally incorporated

Incorporated in the Kingdom of Bahrain.

Long-term insurance fund

The fund referred to in CA-3.1.

Long-term insurance business

Long term insurance means life insurance, personal accident insurance over one year, savings and fund accumulation insurance.

Loss adjuster

(as defined under Paragraph AU-1.3.3)

For the purposes of Paragraph AU-1.3.1, loss adjusters are defined as persons who hold themselves out as being able to determine the extent of a firm's liability for loss when a claim is submitted. In doing so, loss adjusters may investigate and settle losses for an insurance firm by surveying or assessing the extent of damages being claimed for under an insurance contract, investigate the causes of such damage, and the extent to which those damages are covered by the contract of insurance.