Companies engaged in any of the two types of insurances provided for in Para (1) of Article (4) of the law herein shall not discriminate between a policy and another of the same type in respect of insurance premiums or profit amounts allocated to the shareholders or the like of other stipulations unless such discrimination is a result of life expectancy variations in those policies which life span has an effect therein, with exception of:

1. Re-insurance policies.
    
2. Insurance policies in amounts with certain discounts according to the premium rates' schedules communicated to the Authority.
    
3. Insurance policies with special terms covering the life of the members of one-family or group of people professionally or occupationally related or having any other social relation.

The director general may license the company upon its own request to issue policies at premiums discounted than the usual should there are justifiable reasons.

Companies engaged in either of the two types of the insurances provided for in Para (1) of Article (4) of the law herein shall examine the financial status of the related type and assess the outstanding obligations related thereto at least once every three years by an actuary.

Such assessment shall include all insurance operations concluded by the company inside and outside the State one-by-one and should the activity been conducted by a branch, the assessment shall be confined to the operations which their contracts been concluded inside the State or executable therein.

The assessment mentioned in Article (59) of the law herein shall be conducted whenever the company intended to examine its financial status in order to determine percentage of profits to be allocated to the shareholders or policyholders or whenever it intended to make such status public.

The Authority may demand such assessment be conducted at any time before the lapse of three years provided the lapse of one year at least as from date of conducting the latest assessment.

The executive regulation of the law herein shall determine statements should be incorporated in the expert's report in respect to the findings of the examination and the assessment referred to in Articles (59) & (60) of the law herein.

The company shall send the Authority a copy of the expert's report on the findings of the examination and the assessment referred to in Articles (59) & (60) of the law herein within six months as from the expiry of the period for which the examination was conducted accompanied with the following:

1. A statement of the insurance policies still in effect concluded by the company inside or outside the State on the date of conducting the examination and should such an activity been carried out by a branch of a foreign company the statement shall include only those policies concluded inside the State or those ones executable therein.
    
2. A declaration by those responsible for managing the company in witness that all statements and information required to get an exact report have been put under the disposal of the expert.

By decision of the director general following the lapse of the six months provided for in the Article herein an extension of time may be given to the company to file the said report provided such period shall not exceed three months.

Should the Authority became evident that the expert's report did not reflect the reality of the financial status of the company the Authority may order a re-examination thereof on the company's own expenses by an actuary to be elected by the Authority for the purpose.

The companies engaged in life assurance and funds accumulation operations shall not deduct whether directly or indirectly any part of the funds intended to meet their obligations accrued from the insurance policies in order to allocate as profits for the shareholders or the policyholders or to pay any amount other than their obligations according to the insurance policies they have issued. Allocation of profits shall be restricted to the surplus funds as determined by the expert in his report after conducting the examination referred to in Article (59) of the law herein.

In implementing the provisions of the Article herein the company's funds inside and outside the State shall be deemed without prejudice to the provisions of Article (34) of the law herein as one unit.

The companies engaged in life assurance and funds accumulation operations shall not issue saving bonds for a period exceeding thirty years and should the bond of a duration of twenty five years or more the surrender value after the twenty fifth year shall not be less than the full amount of the mathematical reserve and the premiums undertaken by the bearer of the saving bonds shall be of equal amounts or receding.

The saving bonds shall include therein invalidation articles to be used by the company as an argument in face of the bearer to invalidate the bond for delaying payment of the premium.

The contract, however, shall not be invalidated before lapse of three months as from the due date of the premium and should the bond being nominal such period shall not become effective only as from date of serving a notice on the bearer of the bond by a registered letter.

Also, it shall be specified in these bonds that the right therein shall pass to the beneficiaries by reason of the death of the bearer of the bond without paying any additional monies or imposing any further provisos.

By decision of the Board based on a recommendation of the director general other statements need be included in the saving bond may be specified.

In case the company engaged in life assurance and funds accumulation operations gone bankrupt or in case of liquidation the due amounts of each holder of a policy with unexpired durtion shall be estimated to equate the mathematical reserve thereto in the day of announcing the bankruptcy verdict or the liquidation decision calculated according to the technical basis of the premiums' tariff at the time of concluding the policy.