Chapter 1 Chapter 1 Long-Term Insurance
Article (69) Separate Accounts for Long-Term Insurance
Long-term insurance companies shall assign a separate technical and accounting system for each type of long-term insurance, and shall prepare and publish a separate balance sheet for each such type of insurance besides their general balance sheets.
Article (70) Profits of Long-Term Insurance
Long-term insurance companies shall not deduct, directly or indirectly, any part of their funds, set aside to cover liabilities with respect to long term insurance policies, for distribution as profits to shareholders, policyholders or for lending to staff and managers or for the payment of any liabilities other than from issued insurance policies. Distribution of profits shall be limited to the amount of the realized surplus determined by the actuary in its report.
Article (71) Prohibition of Discrimination Between Insurance Policies
Companies providing long-term insurance shall not discriminate between one policy and another of the same type with respect to insurance rates, the schedule structure of the accumulated cash value generated by the policy annually, or the amount of profits distributed to policyholders or for any other considerations unless such discrimination is based on variation in life expectancy.
As an exception, the above prohibition shall not apply to insurance policies with large cover amounts, which enjoy specific discounts according to rate schedules notified to the Central Bank.
Article (72) Examination and Assessment of Long-Term Insurance Business(a) Every long-term insurance company shall appoint an actuary to examine and assess the long-term insurance business. A copy of the actuary's report shall be sent to the Central Bank within three months after the end of the financial year. The Report shall be accompanied by a declaration by the company confirming that all particulars and information required for reaching an accurate assessment were made available to the actuary.(b) If it appears to the Central Bank that the Actuary's report does not really reflect the financial position of the long-term insurer due to inappropriate assessment procedure, the Governor may appoint another actuary to re-examine the situation at the cost of the company.
Article (73) The Actuary's Report
The Actuary's Report shall, in particular, include the following:(1) The company's liabilities regarding long-term insurance business.(2) An assessment of any difference between the assets and the liabilities of the long-term insurance.(3) A statement of any rights of long-term insurance policyholders in the profits.The Central Bank shall issue a regulation regarding other information that the above report shall include.