COBS 7.2 COBS 7.2 Insurance Business and Intermediation Restrictions
An Authorised Person may conduct Insurance Business or Insurance Intermediation with or for a Client only to the extent specified in this section.
An Authorised Person must ensure that it does not:(a) if it is an Insurer, Effect a Contract of Insurance or carry out a Contract of Insurance through an establishment maintained by it in the Abu Dhabi Global Market; or(b) if it is an Insurance Intermediary, act in relation to a Contract of Insurance;
where the contract is in relation to a risk situated within the U.A.E., unless the risk is situated in the Abu Dhabi Global Market, or the contract is one of re-insurance.
The classes of Contracts of Insurance are set out in Chapter 1 of Part 4 of Schedule 1 of FSMR.
An Insurer must ensure that it does not carry on, through an establishment maintained by it in the Abu Dhabi Global Market, both Long-Term Insurance Business and General Insurance Business unless the General Insurance Business is restricted to Class 1 or Class 2 or both.
An Insurer which is a Protected Cell Company must ensure that all Insurance Business is attributable to a particular Cell of that Insurer.
An Insurer must not carry on any activity other than Insurance Business unless it is an activity in direct connection with or for the purposes of such business. For the purposes of this Rule, Managing Assets is not an activity in connection with or for the purposes of Insurance Business.
The Regulator may give individual guidance on other business activities that may be determined to be in direct connection with Insurance Business.
The following activities will normally be considered in direct connection with or for the purposes of Insurance Business carried on by an Insurer:(a) investing, reinvesting or trading, as investor or rabb ul maal and for the Insurer's own account, that of its Subsidiary, its Holding Company or any Subsidiary of its Holding Company but not any other party, in Securities, loans, investment accounts, Units or Shares in Collective Investment Funds, certificates of Mudaraba, certificates of Musharaka or other forms of Investments that are intended to earn profit or return for the investor;(b) rendering other services related to Insurance Business operations including, but not limited to, actuarial, risk assessment, loss prevention, safety engineering, data processing, accounting, claims handling, loss assessment, appraisal and collection services;(c) acting as agent for another insurer in respect of Contracts of Insurance in which both Insurers participate; and(d) establishing Subsidiaries or Associates engaged or organised to engage exclusively in one or more of the businesses specified above.