1. In order to accept the treaty reinsurance business, the insurance company established in the State is required to obtain approval from the Director General. In order to attain the approval, the company shall satisfy the following requisites:

   A. The company’s Articles of Association should contain a condition authorizing the company to accept Reinsurance operations.

B. The minimum subscribed and paid up capital of the Company should not beless than 350,000,000 (three hundred and fifty million dirhams).

C. The company shall submit to the Authority through Electronic Means or othermeans adopted by the Authority an endorsement request (addition of practicing the activity of accepting treaty reinsurance business) and issuance of the Director General’s decision to approve the request after submitting the following documents and information:

1. A certificate supports that the company will practice this activity in the same types and classes of insurance it is licensed to practice.
2. Feasibility study.
3. A business plan relating to its policy of accepting treaty reinsurance operations that deals with the matters stipulated in terms from (1) to (7) and Sub-Article (11) of Article (13) of the Instructions herein.
4. A study on the financial position of the company and the volumes of its free reserves and whether these reserves qualify it to subscribe in the treaty reinsurance operations locally, regionally or internationally, accompanied by an actuary report indicating the company’s adequacy of the technical provisions, the financial solvency, the minimum capital, and the extent of the company compliance in implementing the financial instructions issued by the Authority.
5. The existence of a specific classification of the company pursuant to the provisions of Article (18) of these regulations.
6. A report on how the Company will protect its accepted liabilities, including the Retrocession program.
7. The company shall have the technical and legal staff specializing in reinsurance at the local, regional and international levels.

2. The branch of the foreign insurance company licensed and registered with the Authority may accept the treaty reinsurance operations both inside and outside the State within the terms and conditions contained in these regulations and in particular the terms and conditions stipulated in this chapter.