I. The licensing requirements for Insurance Brokerage are as follows:
 

1. The applicant must be a juridical person having one of the following forms:
    
   1. A company incorporated in the UAE in accordance with the Commercial Companies Law, having the objective of practicing the Insurance Brokerage activity.
       
   2. A branch of a company incorporated in a financial free zone in the UAE, or a branch of a foreign company, provided that such company is licensed to practice this activity in the said financial free zone or in the country of origin in the same insurance type and class; and should be subject to the control of a counterpart supervisory authority, with a minimum five years of practice in Insurance Brokerage, and subject to any controls or conditions set by the IA.
       
2. The paid capital may not be less than (AED 3,000,000) three million Dirhams for a company incorporated in the UAE and (AED 10,000,000) ten million Dirhams for the branch of a company incorporated in a financial free zone or the branch of a foreign company.
    
3. A Letter of Guarantee produced by a bank in favor of the IA must be submitted in accordance with the terms and conditions referred to herein.
    
4. A professional indemnity insurance policy in favor of the IA must be submitted in accordance with the terms and conditions referred to herein.
    
5. The technical and administrative staff required for practicing the activity must be appointed in accordance with the provisions of these Regulations.
    
6. A suitable headquarters, software and technical systems required to practice the activity must be provided.
    
7. An internal control system to ensure the sound application of law, regulations, instructions, resolutions and circulars issued thereunder must be provided.
    
8. A true copy of the agreement concluded between the license applicant and a bank operating in the UAE concerning the account designated for the practice of Insurance Brokerage must be submitted.
    
9. Full payment of the prescribed fees must be made.
    
10. To comply with any additional conditions or requirements determined by the IA.

II. An Insurance Broker must continuously satisfy all the license conditions.

1. Individuals to be appointed in the technical and administrative staff must satisfy the following conditions:
    
   1. Be a natural person enjoying full capacity.
       
   2. Be of good conduct and behavior, and has never been sentenced for a freedom restricting punishment in a moral turpitude crime without being rehabilitated.
       
   3. Has not stopped the payment of his commercial debts even if not associated with bankruptcy declaration, or has been judged bankrupt without being rehabilitated.
       
2. An Insurance Broker shall notify the IA of the appointment of any accredited personnel, and of any modification or alteration that may arise regarding their transfer or termination, stating the reasons thereof. An Insurance Broker shall also notify the IA once any of the accredited posts becomes vacant and an alternative is appointed until such vacant post is permanently filled within a maximum period of 60 business days from the date of vacancy.

1. An Insurance Broker must continuously have the technical staff required to practice the
   licensed activity and must at least appoint employees to assuming the following jobs:
    
   1. General Manager or Chief Executive Officer.
       
   2. Operations Manager.
       
   3. Internal Auditor, (natural or corporate person).
       
   4. At least one specialized employee for each licensed insurance type or class.
       
2. The shall hold a decision to determine the qualifications, experience, duties and restrictions for each one of the jobs listed in clause (1) of this article.
    
3. No one may combine two jobs of the jobs approved by the IA at the same time.

The application of a license to practice the activities of the Insurance Brokerage shall be submitted to the IA according to the designated form enclosing information, data and documents supporting the application for license, particularly:
 

1. The legal form of the applicant, along with a report stating the names of the partners, members of the board of directors or management board and the executive management.
    
2. An acknowledgment that the partners and the Director General or Chief Executive Officer have never been declared bankrupt, as well as providing certificates of good conduct confirming that none of them has been sentenced for a freedom restricting punishment.
    
3. A statement showing any legal or judicial obligations or liabilities related to the applicant.
    
4. A statement showing the technical systems used and the work procedures proposed for practicing the activity of Insurance Brokerage.
    
5. Types and classes of the insurance business applied for.
    
6. Training and Emiratization plan for AUE nationals.
    
7. In addition to the above, a branch of a foreign company, or a branch of a company incorporated in a financial free zone shall submit the following:
    
   1. An official certificate issued by the competent authority showing the company’s
      incorporation, registration and licensing to practice the activity of Insurance
      Brokerage in the types and classes of insurance to be practiced in the UAE.
       
   2. A copy of the financial statements for the last two years audited, approved and
      prepared in the UAE Dirhams.
       
   3. A true copy of the board of directors' or management board’s decision approving
      the opening of a branch in the UAE.
       
8. An undertaking to satisfy all license conditions required in case of approving the application for license within the period determined by the IA; otherwise the approval shall be null and void; as well as undertaking not to start practicing the activity before the IA ensures that the applicant has satisfied all license conditions and IA’s approval in this regard is issued.
    
9. Any other documents and data required by the IA.

1. The IA shall issue its decision of approving or rejecting the application for license within a maximum period of 20 working days as from the date of submitting the complete application. The IA may subject its approval to grant the license to the conditions and restrictions at the discretion of the IA, or may suspend the granting of licenses due to the requirements of the public interest for the period it deems suitable.
    
2. Once the application for license is approved, the Insurance Broker shall be registered in the IA's Insurance Brokers Register.
    
3. An Insurance Broker may add a type or class of insurance to the granted license under an application to be submitted to the IA on the form designated for this purpose after meeting all the related conditions and requirements.

1. The term of license shall be one year expiring at the end of December every year. The validity period of the first license shall be from the date of issuance through the end of December of the same year.
    
2. The license shall be renewable under an application to be submitted to the IA at least one month prior to the expiry date after ensuring that the Insurance Broker has continuously abided to the provisions of these Regulations and has paid the prescribed annual renewal fees. The IA shall issue its decision on the complete application within 10 working days as from the date of submitting the same.
    
3. The IA may suspend the Insurance Broker from practicing the activity in case of failure to submit a complete application for license renewal.

1. An Insurance Broker wishing to temporarily suspend the activity practice, or an Insurance Broker having a contingent reason preventing it from practicing the activity, must submit an application to the IA to temporarily suspend the activity practice and to continue practicing the activity until the IA's decision is issued. The IA may reject or approve the application for suspension after meeting all the requirements deemed appropriate by the IA in a manner achieving the interests of companies, clients and beneficiaries, provided that the suspension period may not exceed (3) months as from the date of approval thereon. Such period may be extended for another similar period subject to the Insurance Broker continuing to comply with the conditions and requirements deemed necessary by the IA to reinstate the license. The Insurance Broker shall maintain the letter of guarantee and professional indemnity insurance policy during such period.
    
2. The Insurance Broker may not practice their activity during the suspension period. In all cases, the Insurance Broker may request to resume the practice before the end of the suspension period whether the suspension was optional or when the preventing cause ceases to exist.
    
3. An Insurance Broker wishing to suspend the practice permanently shall submit an application to the IA, and shall continue to practice the activity until it has satisfied all requirements for the cancellation of the license as determined by the IA and the issuance of the IA's decision in this regard.
    

The cancellation decision shall be issued by the IA and immediately published in two widely circulated daily newspapers in the UAE one in Arabic language and the other in English language at the Insurance Broker's expense. The letter of guarantee shall be recovered and the professional indemnity insurance policy shall be terminated after the elapse of 3 months as from the date of publication in case the IA approved the same after the settlement of all the Insurance Broker's transactions and ensuring that there are no liabilities thereon towards the IA or towards other companies, clients or beneficiaries arising from its practice of the Insurance Brokerage activity.

The Letter of Guarantee shall be:
 

1. Issued by a bank operating in the UAE, in favor of the Chairman of the IA Board of Directors in his capacity according to the form designated by the IA.
    
2. Unconditional, unrestricted, payable on demand – by the IA – at any time and may only be canceled under a written consent of the IA.
    
3. Issued for the purpose of guaranteeing the settlement of the Insurance Broker's transactions and meeting their obligations arising from practicing Insurance Brokerage towards companies, clients or beneficiaries, or in implementation of the IA's decisions.
    
4. Its value may not be less than (AED 3,000,000) three million Dirhams for companies incorporated in the UAE and (AED 1,000,000) one million Dirhams for any branch thereof. For the branch of a foreign company or companies incorporated in any financial free zone, its value may not be less than (AED 5,000,000) five million Dirhams for the branch and (AED 3,000,000) three million Dirhams for any addition branch thereof in the UAE.
    
5. At any time, the IA shall have the right to liquidate the Letter of Guarantee submitted by the Insurance Broker in full or in part to ensure meeting its liabilities resulting from practicing its activity towards the companies, clients or beneficiaries, or in implementation of the IA's decisions.

The Professional Indemnity Policy shall be:
 

1. Issued by a company licensed by and registered with the IA, after the IA's approval of the conditions of such policy.
    
2. The insured shall be the Insurance Broker and the beneficiary shall be the Chairman of the IA Board of Directors in his capacity.
    
3. Issued for the purpose of guaranteeing any liability arising from damages resulting from practicing Insurance Brokerage, unintentional error, omission and unintentional negligence.
    
4. Valid throughout the license term and applicable to the annual renewal of the license. The Insurance Brokerage activity may not be practiced unless such policy is available and valid.
    
5. The insured sum under the policy may not be less than (AED 2,000,000) two million Dirhams for companies incorporated in the UAE, provided that the deductible amount may not exceed (AED 30,000) thirty thousand Dirhams for each accident. As for the branch of a foreign company or companies incorporated in any financial free zone, the insured sum under the policy may not be less than (AED 3,000,000) three million Dirhams, provided that the deductible amount may not exceed (AED 50,000) fifty thousand Dirhams for each accident.
    
6. Any amendment or alternation to the insurance policy may only be made under the written approval of the IA.

To practice its activity, the Insurance Broker shall comply with the following:
 

1. Producing of written internal bylaws within (3) months from the date of obtaining the license, and providing the IA with a copy thereof, subject to amendment of such bylaws in accordance with any amendments made to the Law, regulations, instructions, resolutions and circulars issued by the IA and notifying the IA thereof. Such internal bylaws shall include the following data:
    
   1. The documentary cycle to be followed as of the beginning of dealing with a company and client, until the full completion of the insurance transaction.
       
   2. The organizational structure of the Insurance Broker showing the actual functions, responsibilities and powers of directors and other employees working for the Insurance Broker.
       
   3. The relationship between the headquarters of the Insurance Broker and its branches; and determining the powers that the branch is authorized to practice.
       
   4. Correspondences recording system.
       
   5. Internal record-keeping system.
       
   6. Clients' complaints recording system.
       
2. Periodical review and continuous update of the internal control system in a manner to ensure the sound application of the Law, regulations, instructions, resolutions and circulars issued by the IA.
    
3. Producing an Operational Guide for risk management to include the listing and definition of the specific risks that could be encountered and how to address them once realized. The Guide shall be updated and reviewed periodically as appropriate to the nature of the Insurance Broker business and according to the applicable rules in this regard.
    
4. Development of a professional code of conduct for the Insurance Broker employees; and supervising and organizing their undertakings to ensure compliance with the Law, regulations, instructions, resolutions and circulars issued by the IA, especially those related to trust, integrity and conflict of interest.
    
5. When practicing the activity of Insurance Brokerage, the Insurance Broker and their branches shall be independent from any other party in terms of place or organizational, technical or administrational aspects.
    
6. Cooperation and coordination with the internal controller, enabling him/her to perform the assigned tasks and notifying the IA of any violation of the Law or the regulations, instructions, resolutions or rules issued thereunder, or the applicable internal bylaws.
    
7. Not to dismiss the internal controller except by a decision of the board of directors or management board of the Insurance Broker, provided that the IA and the internal controller are notified of the dismissal decision at least (30) working days before such dismissal, explaining the causes and justifications of the dismissal.

The Insurance Broker shall comply with the following obligations towards the IA:
 

1. Open an independent account with a bank operating in the UAE to be designated for the financial transactions related only to the Insurance Brokerage business. Such account shall be subject to audit by the IA.
    
2. Complete separation between the Insurance Broker's personal accounts and the accounts related to the Insurance Brokerage practice.
    
3. Refrain from obtaining any interests on the funds deposited in the account of the Insurance Brokerage business, or from holding such funds in the form of time deposits, or to obtain credit facilities or bank loans secured by such funds.
    
4. Maintain the financial solvency required to practice the activity in a manner to ensure the continued performance of its obligations according to the rules set by the IA.
    
5. Abide by the limits of insurance types and classes which the Insurance Broker is licensed to practice.
    
6. Not to manage or bear any insurance risks.
    
7. Conclude Insurance Brokerage agreements with companies; and providing the IA with true copies thereof within a maximum period of one week after the date of their signature, as well as any amendments or alternations thereon once made.
    
8. Conclude at least two Insurance Brokerage agreements with companies within (60) working days after the license date.
    
9. Not to depend only on one company at any time to practice the activity in the UAE.
    
10. Maintain the records, documents, accounts and financial statements that show the Insurance Broker's financial position, transactions, Insurance Brokerage agreements concluded with companies, authorizations issued by Clients, Clients' data, copies of insurance policies issued to such clients, and any other documents or data related to the practice for a period of (10) years, provided that back-up copies of all such statements and documents are maintained for the same period in order to protect the clients’ data and transactions against any causes of damage. The IA shall be allowed access to obtain and review same on demand.
     
11. The fiscal year shall commence on the first day of January and ends on the thirty-first day of December every year, provided that the balance sheet and the closing accounts are prepared in the UAE Dirham.
     
12. The Insurance Broker shall provide the IA with the following reports:
     
    1. A quarterly report signed by the Chairman of the Board of Directors, the Director General or the Chief Executive Officer on the Insurance Brokerage business and the accounts related thereto, to be submitted within a maximum period of 30 days from the end of the quarterly term.
        
    2. An annual report signed by the Board of Directors or Management Board, containing all Insurance Brokerage business carried out by the Broker during the year, and the audited final annual financial statements, enclosing the External Auditor’s Report, to be submitted within a maximum period of 90 days from the end of the fiscal year, as well as providing the Authority with copies of insurance brokerage agreements signed with insurance companies during the fiscal year.
        
    3. Any other reports or statements required by the IA.
        
13. To immediately notify the IA of any change occurring on the data or documents based on which the license was granted within (5) working days from the date of occurrence of such change; and of any deficit affecting its financial position.
     
14. Inform the IA of the content of advertising campaigns to promote its services before presenting to the public.
     
15. Not to publish or promote any incorrect data, information or transactions.
     
16. Insert their name and registration number with the IA on all its papers, correspondence and documents in both Arabic and English languages.
     
17. Not to assign any business carried out by them to another Insurance Broker(s), unless with the consent of the IA, companies, clients or beneficiaries, subject to notifying the IA of the details of such transfer in case of temporary suspension or cancelation of the license, voluntary or due to a penalty.
     
18. Comply with the laws and any decisions or instructions on combating money laundry and terrorist finance.
     
19. Comply with all regulatory rules, procedures and requirements as prescribed by the IA regarding internal controls and the undertakings of the internal auditor.
     
20. Practice the licensed activity with due diligence in accordance with the provisions of the Law and regulations and the conditions and controls based on which the license was issued; observe commercial norms; nurture Clients' interests and abide by the rules of professional conduct and integrity in practicing its activity with the clients, companies and third parties.

The Insurance Broker shall comply with the following obligations towards the Company:
 

1. Sign an Insurance Brokerage agreement with each Company they deal with. The agreement must be executed in Arabic language, signed by both parties and authenticated before the official authorities. It shall remain in force throughout the period of dealing with the respective Company, and shall include the rights and obligations of each party in conformity with the provisions of these Regulations, particularly the following:
    
   1. The term of the agreement, how and why it can be terminated;
       
   2. Types and classes of insurance subject of brokerage;
       
   3. Geographical scope;
       
   4. A provision authorizing the Insurance Broker to receive the premiums in favor of the Company in cases where the Insurance Broker is permitted to collect the premiums. However, the Insurance Broker may not use the collected premiums for any other purpose.
       
   5. The agreed commission for the Insurance Broker, the manner to calculate such, when its due date for payment and its collection procedures.
       
2. The agreement may not include the following:
   
    
   1. Authorization to the Insurance Broker to issue insurance policies or endorsements thereto, or to amend policies or endorsements except for the issuance of motor insurance certificates if both parties wish so.
       
   2. Authorization to the Insurance Broker to receive compensations payable to clients or beneficiaries to be paid to the entitled recipients.
       
   3. Preventing the Insurance Broker from practicing its activity with any other company.
       
3. Submit all customer information and data which may affect the decision to be taken by the Company regarding the insurance cover, rates and conditions, in order to enable the Company to assess the risks to be insured or to renew its insurance.
    
4. Follow up on the collection of premiums in all types and classes of insurance licensed to be practiced by the Insurance Broker.
    
5. Receive insurance premiums from clients, excluding premiums related to insurance types and classes shown below which must be paid by the clients directly to the Company or to be deposited into the Company’s account:
    
   1. Life insurance and fund accumulation operations;
       
   2. Group health insurance;
       
   3. Marine and air cargo insurance;
       
   4. Hull insurance; and
       
   5. Petroleum insurance.
       
6. Deposit insurance premiums collected by the Insurance Broker in the cases where it is permitted to receiving such premiums in the account designated for the practice of Insurance Brokerage.
    
7. Transfer the received premiums to the Company within the period set forth in the agreement signed with the Company without deducting any amounts or interests due from such premiums; in addition to providing the Company with a detailed report thereon.
    
8. Not to use the letterhead of the Company - for which the Insurance Broker works - for their own correspondence or correspondence to their Clients.
    
9. The Insurance Broker may not, directly or indirectly, seek the cancellation of an insurance policy issued by the Company through another Insurance Broker with the aim of re-issuing the same through them. In this case, the new policy will not be counted when calculating their entitlements.
    
10. The Insurance Broker shall maintain the confidentiality of conditions, rates, information and data obtained from the Company and not to disclose such information to other companies.

The Insurance Broker shall comply with the following obligations towards the Clients:
 

1. Sign a written authorization with all its Clients to authorize it to perform the Insurance
   Brokerage business according to the form designed for this purpose and approved by the
   IA. The authorization shall particularly include the following:
    
   1. The authorities of the Insurance Broker to communicate with any company
      licensed by the IA or with any licensed company nominated by the Client.
       
   2. The responsibilities and authorities of the Insurance Broker regarding the claimprocedures for compensation which may be entitled by a Client who reports an
      insured accident.
       
2. Not to restrict the Client’s freedom to withdraw or cancel the authorization, and not to charge the Client for any financial costs as a result thereof.
    
3. Provide technical advice and consultation, and inform the Client of the best conditions and rates of the companies and keep the documents proving such and register them in duly organized records. In addition, they must negotiate in favor of the Client and represent them before the Company and not to receive any commission for such negotiation.
    
4. Observe the interests of the Client whether when comparing the conditions, rates and the scope of insurance cover, or in terms of preferring to work with a certain Company rather than others; and not to recommend or advocate any company just because it offers higher commission to the Insurance Broker.
    
5. Ensure that the Client is aware of and has understood the type of service provided and the nature of relationship between them, as well as ensuring that the policy meets all the Client’s requirements.
    
6. Notify the Client of all the details of the insurance policy in terms of insurance cover, coinsurance rate (deductible), if any, the surrender amount prior to the scheduled maturity or before the insured risk is realized, or any other conditions, exclusions or restrictions of the insurance policy.
    
7. Explain the importance of disclosure of the essential and fundamental information when submitting an application for insurance and the consequences of concealing, inaccuracy or invalidity of any data or documents provided by the Client, as well as explaining the Client’s full responsibility for such data and information.
    
8. Explain the importance of disclosing any future changes that may affect the insurance cover during the term of the insurance policy.
    
9. Explain the method of payment of insurance premiums highlighting the importance of remitting same in due dates, and the consequences that may be incurred due to failure to observe such due dates.
    
10. Send insurance policies to Clients without undue delay, enclosing a notice stating the importance of reading the policy carefully.
     
11. Explain the procedures that must be followed by the Client in case the insured risk occurs; and assist in the negotiations with the Company regarding the claims arising from the occurrence of the said risk; and notify the Client immediately of Company's decision to accept or reject the provision of the insurance cover related to such claims.
     
12. Not to assign the insurance brokerage tasks to other insurance brokers without obtaining the written approval of the Client and the insurance company thereto.
     
13. Inform the Client in writing (20) days before the expiry date of the insurance policy so that the Client can expresses their desire in writing regarding the following:
     
    1. Renewal of the insurance policy with the same Insurance Broker or not.
        
    2. Renewal of the insurance policy with the same company under the same conditions, or with the same company under different conditions, or with another company according to other proposal presented by the Insurance Broker to the Client.
        
14. Deal in accordance with the principles of good faith and transparency and professional
    rules and ethics, subject to the confidentiality of the Client's data and information