1. The following terms and expressions shall have the meanings assigned to each of them unless the context indicates or the nature of the work requires otherwise:-

State: The United Arab Emirates.

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

Executive Regulations: The Executive Regulations of the Law.

Authority: The Insurance Authority established by virtue of the provisions of the Law.

Board: The Insurance Authority’s Board of Directors.

Director General: The Director General of the Insurance Authority.

Reinsurance: ceding part of the liability for the risk or the entire liability taken by the direct insurer under the insurance contract to the reinsurer and the consequent rights and obligations.

Reinsurer: An insurance company, or a reinsurance company, or an insurance pool or reinsurance pool, or syndicates of underwriting insurance groups that accept cession.

Cession: ceding the liability arising from the insurance contract as a whole or in part by the insurer or the reinsurer to another reinsurer pursuant to a reinsurance contract or retrocession contract.

Retrocession: The reinsurer cedes to another reinsurer the liability of the risk or that he has accepted pursuant to the reinsurance contract.

Retention: The liability retained by the insurer or the reinsurer for his own account in the insurance or reinsurance contract or from a specific risk or event.

Reinsurance ceded by the insurance company: The process of reinsurance ceded by the direct insurer to the reinsurer.

Reinsurance accepted by the insurance company: the reinsurance process accepted by the direct insurer.

Facultative Reinsurance: the reinsurance related to a particular risk or risks, wherein both parties have the freedom to accept or reject in each case separately.

Treaty Reinsurance: the reinsurance of a group of insurance contracts in a particular class or classes of insurance where the ceding company has pre-covered business within the group or classes and within the terms and conditions of the reinsurance treaty.

Facultative Obligatory Reinsurance: the reinsurance of a group of insurance contracts or risks where the reinsurer is obliged to accept in advance while the insurer reserves the freedom to cede or not.

Actuary: The person who evaluates insurance contracts and documentation and assesses the accounts related to them.

Register: The Insurance Authority’s Electronic Register or otherwise of the reinsurance companies and Takaful reinsurance companies.

Electronic Means: The electronic and smart services, or otherwise, adopted by the Authority.

2. Except for the above, the words and expressions in these Regulations shall have the meanings ascribed to them in the Law, and the Executive Regulations and The Insurance Authority’s Board of Directors’ Resolution No (4) of 2010 Concerning the Takaful Insurance Regulations, with regards to the Takaful and Takaful reinsurance business.