1. The management of the insurance company shall immediately inform its board of directors and the Authority if there is a probability of a problem in reinsurance arrangements which may affect its capability to meet its obligations with the necessary clarifications and procedures to remedy the situation. The Director General shall hold a meeting with the company management to discuss the matter and ways to find a suitable solution, especially in the following cases:

1. The Company's inability to complete the coverage of its reinsurance treaties before the date of renewal;
    
2. Having the information that indicates that one of the reinsurers is unable to meet its obligations;
    
3. The reinsurer's failure to pay what he owes to the company despite of submitting claims.
    
4. The discovery of a liability that the Company has taken exceeding its capacity of retention and has not been covered by reinsurance;
    
5. Exhaustion of reinsurance covers capacity due to excess of losses and amounts as stipulated in the reinsurance treaty;
    
6. The reinsurer's classification rating becomes lower than the acceptable minimum.

2. The Director General shall direct the Company to cease dealing with a particular reinsurer in case the Authority has a confirmed information concerning the reinsurer default financial position or its failure to pay its obligations, provided that the cease time from dealing with the company is determined by a deliberation with the company management.

3. The Director General may request that no renewal shall be made with any reinsurer who has lost the conditions stipulated in these regulations and that no new business shall be ceded to it.