Ordinance No. 026-2007 Amending the Insurance Code

Source JO No. 1144 of 30/05/2007. Page 1 Islamic Republic of Mauritania Honor – Fraternity - Justice Ordinance No. 026-2007 of April 9, 2007 repealing, replacing and amending certain provisions of Law No. 93/040 of July 20, 1993 Establishing the Insurance Code Published in the Official Journal of the Islamic Republic of Mauritania No. 1144 of May 30, 2007

Source JO No. 1144 of 30/05/2007. Page 2 The Military Council for Justice and Democracy has deliberated and adopted; The President of the Military Council for Justice and Democracy, Head of State, promulgates the ordinance as follows; Article 1: The provisions of Law No. 93-040 of July 20, 1993, establishing the Insurance Code are amended as follows: Article 23: (new) Exclusion of war risks The insurer is not liable, unless otherwise agreed, for losses and damages caused by either foreign war, civil war, riots, or popular movements. The insurer invoking the above exclusions to refuse compensation must prove that the damage was caused by one of the excluded events. Article 30: (new) The insurer must offer the insured a detailed compensation proposal broken down by head of loss within three months from receipt of the claim declaration. However, regarding compensation for bodily injuries resulting in a partial permanent disability of 10% or more, or in case of death, the offer period is extended to five months to allow both parties time to gather necessary documents for determining liability and correctly evaluating the damage amount. The offer period is extended as stated in Article 29 due to delays by the insured, and also if the insured or victim avoids a requested expert assessment. The period is increased by two months if the person claiming compensation resides abroad. If the insurer exceeds the period set in this article, the compensation must be increased by 5%. A copy of all records related to material or bodily traffic accidents must be automatically transmitted by the judicial police officer to the involved insurance companies, insured parties, and victims. The transmission period for the record is a maximum of 15 days from the date of establishment.

Source JO No. 1144 of 30/05/2007. Page 3 Article 53: (new) Special provision Victims, including drivers, cannot have force majeure or third-party fault asserted against them by the driver or keeper of a motor land vehicle. Fault committed by the driver of a motor land vehicle has the effect of limiting or excluding compensation for bodily or material damage suffered by him. This limitation or exclusion is enforceable against the driver's heirs. When circumstances of a collision between two or more vehicles do not allow establishing the incurred liabilities, each driver receives from the other driver(s) only half of the compensation for bodily or material damage suffered. When a motor land vehicle driver is not its owner, the driver's fault may be asserted against the owner for compensation of damages caused to his vehicle or the insured's goods.

Source JO No. 1144 of 30/05/2007. Page 4 However, the victim is not compensated by the accident perpetrator for damages resulting to his person when he voluntarily sought the damage suffered. Article 55: (new) In cases of collision caused by multiple vehicles, the compensation procedure falls to the insurer of the liable vehicle, both with respect to passengers and circulating third parties. Article 166: (new) Unenforceability of exceptions against third parties Limitations and exclusions of compensation, as well as forfeitures, are not enforceable against victims or their heirs, except for the following situations which are enforceable: Suspension of the contract for non-payment of all or part of the premium under Article 9, paragraph 4; Nullity of the contract for intentional false declaration by the insured at subscription, under Article 9, paragraph 1; Generally, any regular suspension of the contract or any nullity duly established under the law; Damages caused to transported goods and objects; Damages affecting buildings, things, or animals leased or entrusted to the driver in any capacity. In cases where the insurer is required to compensate third-party victims or their heirs despite guarantee limitations and exclusions, the insurer settles on behalf of the liable party. The insurer may exercise recourse against this party, even if it is the insured, for all sums paid or set aside on its behalf. Article 173: (new) Determination of liabilities In case of an accident, the liabilities of different involved parties are determined according to a graphical liability schedule to be fixed by decree taken in the Council of Ministers. Article 174: The provisions of this article are repealed. Article 216 (new): Minimum Capital. Insurance joint-stock companies must have a social capital, excluding in-kind contributions, of at least three hundred million ouguiyas. Article 227: (new) Procedure Insurance companies may, after approval by the supervising Minister of Insurances and a conforming opinion from the Advisory Insurance Commission, transfer to one or more approved companies all or part of their contract portfolio with its rights and obligations. The transfer request is brought to the attention of creditors by a notice published in a legal announcements journal, granting them at least three months to submit observations. Insured parties have a one-month period from the publication of this notice to terminate their contract. Subject to this reservation, the administrative authority approves the transfer by order if it appears consistent with the interests of creditors and insured parties. This approval makes it enforceable against them.

Source JO No. 1144 of 30/05/2007. Page 5 Article 318: (new) Constitution of the Advisory Insurance Commission An Advisory Insurance Commission is established, composed of insurance specialists whose role is to issue required opinions for the supervising Minister of Insurances, particularly in matters listed in Article 338. This Commission is composed of: • The Director of Insurance Control; • A representative of the Ministry of Justice; • A representative of the Ministry of Finance; • A representative of the Central Bank of Mauritania; • A representative of the Federation of Insurers of Mauritania; • A representative of insured parties. The President of the Bar Association or his representative. Article 319: (new) Method of designating Commission members The members of the Advisory Insurance Commission are appointed by decree taken in the Council of Ministers for the supervising sector. Article 320: (new) Term of office The term of Commission members is three years, renewable. Article 321: (new) Presidency of the Commission The Advisory Commission is chaired by a senior state official appointed by decree among the Commission members based on competence and status. Article 322: (new) Operating rules The opinions of the Advisory Insurance Commission are adopted by a majority vote of present members. In case of a tie, the president's vote is decisive. However, the Commission can validly deliberate only if at least half plus one of the designated members are present. Proxy voting is not admitted. Commission members are bound by professional secrecy for all facts or information they learn during their mission. When necessary, they may summon specialists who could enable them to render a more informed opinion. These non-members do not have deliberative voting rights. Article 323: (new) Internal Regulations The Commission's operation is governed by internal regulations it adopts, which will be approved by order of the supervising Minister of Insurances. Article 324: (new) Secretariat The secretariat of the Advisory Commission is provided by the Director of Insurance Control; he prepares the minutes of deliberations and transmits opinions to the Supervising Minister. Meeting dates are set by the President. Summons are sent to each member by the president with the established agenda.

Source JO No. 1144 of 30/05/2007. Page 6 Article 325: (new) Organization of Control The supervising Ministry for the insurance sector defines and organizes the procedures for document-based and on-site control of insurance companies by Insurance Control Commissioners from the Insurance Control Directorate. It defines, in particular, the forms and statistical and accounting statements that companies must submit by a fixed date, enabling control commissioners to evaluate their respective financial solidity. Article 326: (new) Frequency of controls Control commissioners conduct at least once a year, for each insurance company, the document-based and on-site control operations defined by the Director of Insurance Control. Unannounced controls may be conducted at any time upon request of the supervising Minister for the insurance sector. Article 327: (new) Contradictory report In case of on-site control, a contradictory report including the company's observations in response to those of the control commissioners is prepared by them; it is communicated to the company. Article 328: (new) Reports and minutes. The control reports and minutes of control commissioners are transmitted to the supervising Minister for the insurance sector. They serve as evidence for establishing regulatory infractions, unless contrary opinion or a supplementary inquiry decision is made by the Minister based on company observations. Article 329: (new) Information The Insurance Control Directorate may obtain any information and communication of any documents necessary for the exercise of its mission and that of the control commissioners. Article 330: (new) Sanctions When it finds non-compliance with regulations by an insurance company or behavior jeopardizing the fulfillment of contracted obligations to insured parties, the supervising Minister for the insurance sector orders it to take corrective measures fixed on the report of the Director of Insurance Control. The Minister may in particular request the establishment of a recovery plan, for which the opinion of the advisory commission may be required if applicable. In case of non-implementation of fixed corrective measures, the Minister, after notifying company executives to submit observations within a set period, may: • issue warnings and advisories; • prohibit certain operations or investments and impose any other activity limitations; • temporarily suspend one or more executives and require their replacement; • impose pecuniary sanctions based on the severity of breaches in the form of daily penalties or fines; • proceed with the official transfer of all or part of the contract portfolio; • appoint a provisional administrator to manage the company; • impose total or partial withdrawal of authorization for the company to conduct insurance operations.

Source JO No. 1144 of 30/05/2007. Page 7 Article 331: (new) Prohibition When the Commission is called upon to deliberate on a particular company's case, members of the Commission, executives, employees, or shareholders of said company are prohibited from participating in debates and deliberations concerning it. Article 332: (new) Documents intended for the public, all documents including General Policy Conditions and information notices, must be communicated to the Insurance Control Directorate, which may prescribe modifications both in form (readability, clarity, simplicity) and substance in accordance with current regulations. Failing compliance or a request for modifications within three months of document communication, they become enforceable. Article 333: (new) Tariffs and financial balance Insurance companies communicate to the Insurance Control Directorate the tariffs they intend to use to obtain technical and financial balance for each category and sub-category of operators they practice. When proposed tariffs are likely to compromise the technical and financial balance of companies or harm insured parties' interests, or disrupt the market, the Minister in charge of the insurance sector determines the corrective measures to be applied. The supervising Minister for the insurance sector may fix by order minimum and maximum tariff bases, as well as pricing criteria to be respected or considered by all insurance companies for a determined branch. Article 334: (new) Tariff agreements Insurance companies must submit to the supervising Minister for the insurance sector any special tariff agreement for a set of determined risks. The Minister may oppose it by reasoned decision within a period not exceeding two months from communication of the tariff agreement project. Article 336: (new) Texts relating to insurance The Director of Insurance Control, under instruction from the supervising Minister for the insurance sector or on his own initiative, elaborates all proposals for modifying existing legislative or regulatory provisions relating to insurance or publishing new provisions that market development or insured parties' interests make necessary. Article 337: (new) Annual report on the insurance market The Director of Insurance Control prepares each year a report on the state and evolution of the insurance market in Mauritania. This report is intended for the supervising Minister but must be made available to members of the Advisory Insurance Commission and approved companies in the country. Article 338: (new) Obligation to obtain the Commission's opinion The supervising Minister for the insurance sector must consult the Advisory Insurance Commission before taking the following decisions: • Authorization or withdrawal of authorization for an insurance company; • Transfer of contract portfolio, either at a company's request or as a sanction; • Appointment of a provisional administrator after sidelining statutory executives; • Winding up of an insurance company; • Modification of the minimum capital required for insurance companies;

Source JO No. 1144 of 30/05/2007. Page 8 The Commission must also be consulted on all draft laws, decrees, and orders whose adoption modifies existing legislation. The Commission may take up any questions within its competence to address recommendations to the supervising Minister for the insurance sector with the aim of improving market functioning and services provided to insured parties. Article 339: (new) Obstruction offense Any person who commits an act that hinders the regular exercise of the Insurance Control mission is subject to a penalty of 6 months to 2 years imprisonment. Article 2: Articles 350, 351, 352, 353, 354, 356, 357, 358, 359, 360, 361, 362, 363 are repealed. Article 3: This ordinance shall be executed as state law and published according to the urgent procedure in the Official Journal of the Islamic Republic of Mauritania. Done at Nouakchott, on April 9, 2007 Colonel Ely Ould Mohamed Vall The Prime Minister Sidi Mohamed Ould Boubacar The Minister of Commerce, Artisanry and Tourism Ba Abderrahmane