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  • Chapter Eleven: Foreign Insurance Companies and Representation Offices of Foreign Insurance Companies

    • Article (49): Branch of Foreign Insurance Company

      1)

      A foreign Insurance Company’s branch shall appoint a manager to manage the branch, who is authorized by a document attested by the relevant authorities to exercise all the powers necessary to manage such branch, including:

        

      a. 

      Issuing Insurance Policies and annexes thereof and paying the claims arising therefrom;

        

      b. 

      Representing the Company’s branch before the CBUAE, competent court and other relevant authorities; and

        

      c. 

      Receiving communications, notices and all correspondence served to the Company.

      2)

      Before the carrying out Insurance Business, a foreign Insurance Company’s branch shall submit an application to the CBUAE for licensing the branch; provided that the manager’s appointment decision and the document referred to in Clause (1) above shall be attached to the application.

      3)

      The foreign Insurance Company’s branch shall notify the CBUAE of the Authorized Manager’s name within one month from his appointment date, and shall appoint a substitute within one month from the date on which position becomes vacant.

    • Article (50): Bank Guarantee

      The foreign Insurance Company’s branch shall submit an irrevocable letter of bank guarantee in favor of the CBUAE, in an amount of not less than (AED 100,000,000) one hundred million dirhams in case it is carrying out insurance activity, and an amount of not less than (AED 250,000,000) two hundred fifty million dirhams in case it is carrying out reinsurance activity, in accordance with the instructions issued by the Board in this regard.

    • Article (51): Final Account

      The Foreign Insurance Company’s branch shall provide the CBUAE with the combined final account, and shall publish it in two local daily newspapers, one of which is issued in Arabic.

    • Article (52): Representation Offices of Foreign Insurance Companies

      1)

      Representation offices of foreign Insurance Companies may not carry out their activities related to insurance in the State before obtaining license from the CBUAE.

      2)

      the CBUAE shall issue a decision regulating the functions of such offices.

      3)

      The license shall be either accepted or rejected by virtue of a decision of the Board, and the CBUAE shall notify the relevant authorities accordingly.