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  • CL-2.3 CL-2.3 Brokerage and Premiums/Contributions Collection

    • CL-2.3.1

      In instances when Subparagraph CL-2.2.1(b) applies, the insurance broker is solely responsible for collecting premiums/contributions from clients and passing these to insurance firms. Any refund premiums/contributions due from insurance firms, the insurance broker shall pass these to clients immediately upon receipt from insurance firms.

      Amended: July 2023
      April 2012

    • CL-2.3.2

      For life/family takaful participating with profit policies, the insurance broker are prohibited from collecting premiums/contributions from clients. Premiums/contributions must be paid directly by the policyholders/participants to insurance/takaful companies.

      Amended: July 2023
      April 2012

    • CL-2.3.3

      Other than noted in Paragraph CL-1.1.6, insurance brokers must pay to insurance firms premiums/contributions received no later than (15) calendar days from the date of the receipt of such amounts.

      Amended: July 2023
      April 2012

    • CL-2.3.4

      Except as permitted under Paragraph CL-2.3.4A, insurance brokers are prohibited from deducting their brokerage commission from the premiums/contributions account(s). Insurance brokers must be paid separately their brokerage commission from the insurance firms after transferring the amounts due (premiums/contributions) to insurance firms no later than (10) calendar days from the receipt of the premiums/contributions by insurance firms.

      Amended: July 2023
      Amended: July 2015
      April 2012

    • CL-2.3.4A

      In instances where international insurance business is involved, where an insurance broker is dealing with an international insurance/reinsurance broker, the insurance broker may choose to deduct its commission from the premium/contribution account.

      Added: July 2015

    • CL-2.3.5

      For brokerage activities, insurance brokers are prohibited from collecting additional charges (other than the quoted premiums/contributions) from clients.

      Amended: July 2023
      April 2012

    • CL-2.3.6

      Insurance brokers can offer other services to the policyholder on behalf of the insurance firm, such as the issuance of policy documentation. Such other services should be dictated in a separate agreement between the insurance broker and the insurance firm; however, such charges should not result in any additional fees to the policyholder.

      April 2012