Every Insurance Company shall make a cash deposit in a bank operating in the State, as a security for implementing its obligations set forth in this Decree-Law, the amount of which shall be determined as follows:

By virtue of a resolution of the Board, the amount of the deposit referred to in Clauses (1) and (2) above may be increased. The deposit shall be made to the order of the Governor.

The deposit may only be disposed of for the payment of debts arising from insurance operations carried out by the Company; provided that a prior written authorization of the Governor or his representative is obtained.

If the value of the deposit diminishes below the prescribed limit if it is disposed of, the Company shall replenish the deposit amount within a period not exceeding (30) thirty days from the date of the CBUAE’s request to replenish the deposit amount.

The Company that carries out the type of insurance referred to in Clause (1) of Article (4) above must keep in the State funds whose value is at least equivalent to the full amount of the mathematical reserve of contracts concluded in the State or implemented therein. The Board may reduce the percentage of reserve the Company is required to keep.

Such funds must be completely separated from the funds of other insurance operations. When calculating the aforementioned reserve, the deposit referred to in Clause (1) of Article (38) above shall be taken into account, so that whichever value is greater shall be applicable.