1. The following words and phrases shall have the meanings ascribed thereto hereunder unless the context indicates otherwise:

State: The United Arab Emirates

Law: Federal Law No. (6) of 2007 Concerning the Establishment of the Insurance Authority and Organization of its Operations and the amendments thereof.

Authority/IA: The Insurance Authority established by virtue of the provisions of the Law.

Board: The Board of Directors.

Chairman: The Chairman of the Board.

Director General: The Director General of the Insurance Authority.

Company: The insurance company incorporated in the State, and the foreign insurance company licensed to carry out insurance activities in the State, either through a branch or an Insurance Agent, including Takaful insurance companies.

Person: Any natural or legal person.

Strategic Partner: A partner whose contribution in the company provide Technical, operational or marketing support to the company for its benefit.

Control: The Insurance company shall be in controlling position in the following cases:

(a) A single person or with the Related Parties possesses 10% or more of the capital or financial instruments (such as convertible bonds to shares) or voting rights in the company.

(b) Any agreement or position leading to the empowerment to appoint and disqualify most of the Board of Directors members, managers and executive committees in the company.

Related Parties: Shall mean the following:

1- The persons who are linked with an agreement or arrangement for the purpose of controlling a company.

2- The Natural person and his minor children.

3- The legal person, in addition to any of the Board of Directors members, or companies to which he contributes at least 30% of its capital, or sister, subsidiary or associated companies, unless they prove that there is no agreement or arrangement between them for the purpose of control.

4- Relatives such as father, mother, brother, sister, children, spouse, spouse's father, spouse's mother and spouse's children, unless they prove that there is no agreement or arrangement between them for the purpose of control.

Rules of Ownership Ratios in the Capital of Insurance Companies: Controls and conditions that are necessary for the entry of persons as shareholders in insurance companies.

Electronic Systems: Electronic and smart or any other services adopted by the Insurance Authority.

2. Exception to what was provided above, the words and phrases contained in this Instructions shall have the meanings given to them pursuant to the provisions of the Law and its Executive Regulations.