1)

The CBUAE may conduct a periodic examination of the Companies to ensure the soundness of their financial positions and their compliance with the provisions of this Decree-Law and the technical bases of carrying out insurance and reinsurance operations. To that end, the CBUAE may verify that the Company complies with the following:

a.

Its fulfillment of its obligations and that the CBUAE shall not be held liable for its failure to do so or its inability to continue in business;

b.

The Company does not commit any violation of the provisions of this Decree-Law or the resolutions, or instructions issued in pursuance thereof;

c.

The adequacy of measures taken by the Company on the reinsurance of risks assumed by the same;

d.

Compliance with the license conditions necessary to carry out insurance business;

e.

The Company’s total losses shall not exceed (50%) fifty percent of its paid-up capital; and

f.

The Company shall not cease to conduct its business without legitimate justification.

2)

Where the Company fails to comply with any provisions of Clause (1) above, the CBUAE may impose whatever measures or sanctions it deems appropriate, and it may impose one or more of the following actions:

a.

Serving a notice describing the nature of violation, procedures for remedying it and a mechanism for regularization.

b.

Requesting the Company or the headquarters of a foreign insurance company, as the case may be, to take the necessary measures to regularize the administrative situations therein, including deposing the Company’s Director General, Authorized Manager or any Senior Employee thereof.

c.

Deposing the Company’s Chairman and any Board Member proved to be responsible for the current status of the Company.

d.

Forming a neutral committee of experts to replace the Company’s Board of Directors for a period not exceeding (6) six months, renewable for similar period(s), if necessary, and in all cases the total periods may not exceed (24) twenty four months, defining its functions and appointing its members, chairman and vice- chairman. The Company shall bear the committee’s remuneration, as determined by the CBUAE. The procedures for electing and forming a new board of directors shall be proceeded pursuant to the provisions of Federal Decree-Law No. (32) of 2021, referred to hereinabove, at least (30) thirty days before the expiry of the committee’s work.

e.

Taking the necessary actions to merge the Company into another company, subject to the approval of the company into which it will be merged.

f.

Preventing the Company from concluding new Insurance Contracts or preventing it from carrying out one or more type of insurance.

g.

Setting out a threshold limit for the total amounts of Premiums that the Company receives from the Insurance Policies it issues.

h.

Maintaining assets in the State equivalent in value to all net obligations arising from its business in the State, or a certain percentage of its value determined by the CBUAE.

i.

Restricting the Company’s carrying out of its investment activities related to the Solvency Margin ratio, or obliging it to liquidate its investments in any of such activities for such purpose, unless the same would cause harm to the Company, as determined by the specialized expert.

j.

Appointing an independent supervisory member from outside the CBUAE to attend the Company’s board meetings and participate in discussions, without having a vote, during decision-making. The Board shall determine his duties and remunerations.

k.

Suspension of the Company’s license.

l.

Revocation of the Company’s license.

m.

Restructuring of the Company.

n.

Liquidation of the Company.

o.

Imposing a fine on the Company not exceeding (AED 100,000,000) one hundred million dirhams.

3)

The provisions of Clauses (1) and (2) above shall apply to the Insurance-Related Professionals, as commensurate with the nature of their professions.

4)

The measures set out in Clause (2) above shall be imposed by virtue of a resolution of the Governor, other than the measures referred to in Paragraphs (e), (l), (m) and (n), which shall be imposed by a resolution of the Board.

1)

A grievance committee shall be established by the CBUAE to consider grievances filed against decisions, measures and administrative sanctions issued pursuant to the provisions of this Decree-Law. The Board shall issue the necessary decisions on the formation of the committee, rules of procedure, remunerations of its members, experts to be engaged and all matters related thereto.

2)

Save as regulatory and supervisory policies, resolutions, regulations, directives and instructions. The committee referred to in Clause (1) above shall decide on grievances against the CBUAE’s decisions, pursuant to the provisions of this Decree-Law and the resolutions issued in pursuance thereof.

3)

A grievance against the CBUAE’s decision shall be made within (20) twenty business days from the date of notification of the decision in accordance with the mechanism determined by the Board. The committee shall not accept grievances submitted after this time limit.

4)

Decisions falling within the competence of the Committee, pursuant to the provisions of this Article, may not be challenged before courts before a grievance against them is filed and decided.

5)

No grievance may be filed before the committee set out in Clause (1) above against decisions issued by the CBUAE, pursuant to the provisions of Clause (2) of Article (41) hereunder.

1)

The CBUAE may assign any of its employees or any other licensed or authorized Person to inspect the Company or any other company owned by such Company or is affiliated thereto, in order to ensure the soundness of its financial position and its compliance with the provisions of this Decree-Law and the resolutions, regulations, and instructions issued in pursuance thereof, as well as other laws and regulations in force in the State.

2)

The CBUAE shall coordinate with the relevant regulatory authority in case of the inspection of companies owned by the Insurance and Reinsurance Companies, Insurance-Related Professionals or associated Companies, which are subject to the regulatory authorities.

3)

The CBUAE may, in coordination with the relevant authorities in the State, inspect premises of any Person suspected to carry out any insurance and reinsurance business or the Insurance-Related Professions. To that end, the CBUAE may obligate the suspected Person to provide all information, documents and records related thereto and to seize them.

4)

The Companies and the Insurance-Related Professionals and companies owned by and affiliated to the same shall provide the inspector with whatever data, information, records, books, accounts and documents related to the subject of the inspection on the dates specified by him.

5)

The inspector may collect the necessary information and clarifications from any Person with whom the Company or the owner of the Insurance- Related Profession has a relationship with regard to the subject of the inspection.

6)

The inspector may summon any Person at the time and place specified by them to provide information, data, documents or records related to the inspection.

7)

The CBUAE may assign one of its employees or a specialized expert to guide the Company and the Insurance-Related Professions or supervise some operations within a specific period determined by the CBUAE. If the expert is from outside the CBUAE, the Company and the Insurance-Related Professions shall pay his remuneration determined as determined by the CBUAE.

8)

The Company and the Insurance-Related Profession shall bear all expenses of inspection and investigation that another person is assigned to carry out, pursuant to the provisions of Clause (1) above, if it is proved that it violates the provisions of this Decree-Law and the statutes and resolutions issued in pursuance thereof.

1)

Prevent, obstruct, or hinder any employee or any other Person assigned the CBUAE from carrying out inspection or audit under the provisions of this Decree-Law;

2)

Conceal any data, records or books requested by the CBUAE or whoever is assigned to carry out inspection or audit; and

3)

Issue any statements or give any inaccurate or misleading data, records or books.