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  • Violations and Penalties

    • Article (11)

      1. Penalties and procedures shall be applied on the Insurance Producer according to the following:

        a) Breaching laws, Regulations, Instructions, or Decisions issued by the Authority.

        b) Failure to perform his duties in the manner legally and professionally required.

        c) Losing any one of the conditions based on which the license was granted.

        d) Failure to apply for license renewal in accordance with the provisions of Article (7) of these Instructions.

      2. In the event any of the violations listed in Paragraph (1) herein is substantiated with evidence satisfactory to the Authority, the Director General shall have the right to apply any of the following procedures and penalties:

        a) Issue warning the Insurance Producer to take the appropriate measures to rectify his position within a specific period of time.

        b) Suspend the Insurance Producer's registration for a period not exceeding six months with cooperation with the Competent Authorities. In case the violation is repeated, the period of suspension shall be doubled and the public shall be notified through a notice published by the Authority on its website, or any other means, as well as notifying all insurance companies of such decision.

        c) In case of failure to rectify positions within the specific period, the decision to cancel the license shall be taken, and all insurance companies, the Insurance Agent and the Competent Authorities shall be notified of such decision and the public shall be notified through a notice published by the Authority on its website

        d) In the event the Insurance Producer's license is cancelled pursuant to the provision of this Article, he may not submit a new application for license before the lapse of two years from the date of issue of the cancellation decision.

        e) The websites that practice the business of Insurance Producers in the State without obtaining the necessary license from the Authority shall be blocked, in coordination with the Competent Authorities in the state.