The following words and expressions shall bear the meaning indicated beside each one of them unless the context provides otherwise:

State: The United Arab Emirates.

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

Executive Regulation: the Executive Regulation of the Federal Law.

Authority The Insurance Authority.

Board: The Insurance Authority Board of Directors.

Director General: The Director General of the Insurance Authority.

The Company: The insurance company incorporated in the state or a branch of a foreign insurance company, licensed to carry out insurance operations in the State either through a branch or an insurance agent, including Takaful Insurance Companies.

Financial Regulations: Board of Directors’ Decision No. (25) of 2014 Pertinent to Financial Regulations for Insurance Companies and Board of Directors’ Decision No. (26) of 2014 Pertinent to Financial Regulations for Takaful Insurance Companies, as the case may be.

Investments: The act of investing, laying out money or capital by a Company with the expectation of profit or the process of investing or engaging funds or capital by the Company with the aim of achieving an expected profit, provided that this is compliant with the Islamic Shari’a provisions, as the case may be.

Investment limits: The limits of Asset distribution and allocation stipulated in the Financial Regulations.

Minimum Capital Requirement: The minimum capital required to be maintained by a Company at all times as directed by the Authority.

Solvency Capital Requirement: Funds that the Company must maintain to cover current and projected operations during the next twelve months, which are measured to ensure that all quantitative risks have been taken into account.

Minimum Guarantee Fund: Funds that the Company must maintain to cover current and projected operations during the next twelve months, which is at least one third of the Solvency Capital Requirement or as determined by the Authority.

Associate companies: The Company in which the insurance company owns 20% to 50% and has a significant effect on its decisions and in accordance with International Financial Reporting Standards.