Capital Market Authority Decision No. 28/2016 on Licensing Requirements for Insurance Companies' Agents

Decision
No. 28/2016
On the Issuance of the Regulation of the Requirements of Licensing the Insurance Companies' Agents Based on the Insurance Companies Law, promulgated by the Oman Sultani Decree No. 12/1979; Oman Sultani Decree No. 90/2004 transferring the insurance competencies from the Ministry of Commerce and Industry to the Capital Market Authority; Implementing Regulation of the Insurance Companies Law, promulgated by the Oman Ministerial Decision No. 5/1980; Decision of the Regulation of the Requirements of Licensing Insurance Activities No. K/31/2007; Decision of the Regulation of the Requirements of Licensing Insurance Companies' Agents No. K/2/2011; Decision of the Board of Directors of the Capital Market Authority, issued in its meeting held on July 9, 2015; The approval of the Ministry of Finance in its letter No. Finance - T ,(75754)/M.T.D/11817/4/1 dated 07/10/2015; And based on the public interest requirements :The following was decided
Article 1
The provision of the enclosed Regulation shall enter into effect concerning the regulation of the .requirements of licensing insurance companies' agents
Article 2
The entities subject to the provisions of this Decision shall adjust their positions within a period not exceeding (6) six months from the date of its entry into effect, with the exception of the achievement of the required Omanisation rate within a period of (3) three renewable years, for a .period not exceeding (6) six months by a decision from the Executive President
Article 3
The said Oman Decision No. 2/2011 shall be abrogated along with all that violates or contradicts .the provisions of the enclosed Regulation
Article 4
This Decision shall be published in the Official Gazette and shall enter into effect on the day .following the date of publication thereof Issued on: 3 Rajab 1437 H Corresponding to: April 11, 2016 Abdullah bin Salem bin Abdullah Al Salmi Executive President of the Capital Market Authority
Article 1

In application of the provisions of this Regulation, the following terms and expressions shall :have the meanings stated beside them, unless the context requires otherwise .Authority: Capital Market Authority .Company: Insurance company licensed by the Authority Insurance Agent: Person licensed by the Authority to exercise insurance agency activities, and authorised by the company to exercise insurance activities on its behalf by virtue of the .agreement concluded between them .Licence: Decision issued by the Authority approving the exercise of insurance agency activities
Article 2
.Whoever wishes to exercise insurance agency activities shall be a legal person
Article 3
The company shall not appoint one person or more on its behalf to carry out insurance agency .activities without obtaining a licence for the same from the Authority
Article 4
In order to obtain the licence to carry out insurance agency activities, the concerned person shall submit an application on the form prepared by the Authority, accompanied with the following :documents and data .Suggested name, legal form and address of the insurance agent -1 .Names of the founders, provided that they are of the Omani nationality -2 .Receipt of the application study fee -3 A proof that no judgments of adjudication of bankruptcy, a penalty in a crime or -4 misdemeanour involving moral turpitude or dishonesty or penalty in one of the crimes set forth in the laws of commercial companies, trading, capital market or insurance were rendered against .any of the founders or members of senior management, unless they were rehabilitated A copy of the registration certificate in the Commercial Register, specimen of signature of the -5 authorised signatories and a copy of the certificate of affiliation to Oman Chamber of Commerce .and Industry A written undertaking on the training of all its workers in the field of the activity to be -6 .exercised A true copy approved by the company of the agreement concluded between the person and -7 .the company .Any conditions, data or documents required by the Authority -8 :A statement of the following -9 .a- That all the agent's workers are Omani nationals b- That the Manager of the insurance agent office is holder of an educational degree not lower than General Education Diploma, an experience of not less than one year in insurance .or passing a program related to insurance by a specialised entity .c- That the Manager of the insurance agent office passes the test specified by the Authority

Article 5
The Authority shall register the licence application in a special record prepared for the same, shall note the filing number and date and shall hand over a receipt to the applicant including the name of the registration applicant, the subject, number and date of registration and a statement .of the documents enclosed thereto In all events, the Authority may request any data or documents it deems necessary for the study of the application, within the period specified by it. In case of non-submittal of these statements .within the required period, the application shall be considered cancelled .The Authority shall issue the licence after payment of the prescribed licence fees
Article 6
The agreement between the company and the insurance agent shall be prepared in both Arabic and English on the company's letterhead, provided that it includes the rights and obligations of :both parties, in particular the following .Type of the activity that the insurance agent may exercise on behalf of the company -1 :The tasks to be carried out by the insurance agent, in particular the following -2 .a- Presenting the offers and services provided by the company to the insurance applicant b- Receiving the insurance applications or applications of renewal, amendment or .cancellation of insurance policies .c- Receiving insurance premiums and contributions .d- Answering the inquiries of the insurance applicant, the insured or the beneficiary e- Receiving and transmitting the correspondences exchanged between the company and .the insured and beneficiaries of the insurance policies concerning the compensation claims f- Providing assistance to the insured or beneficiary upon settlement of the claims with the .company The period of the agreement without exceeding (5) five years, while stating the date of entry -3 .into effect of the agreement, expiry date and the cases necessitating termination thereof .Locations of the branches of the insurance agent as authorised by the company -4 .Work procedures and insurance procedures of the insurance agent -5 Mechanism of notification of the company of the works carried out by the insurance agent -6 .and the period of notification of each work .Mechanism of training of the insurance agent's employees -7 .Commissions due to the insurance agent and the method of calculation thereof -8 Undertaking of the insurance agent to abide by all the legal requirements to carry out its -9 .work .Allowing the company to access and review the insurance agent's books and records -10 Commitment of the insurance agent to transfer the insurance premiums and contributions to -11 .the company's account Statement of preventive measures to avoid any legal transgressions or violations in the -12

.activities of the insurance agent
.Any other data set by the Authority -13
Article 7
The Executive President of the Authority shall issue a decision concerning the licence within (30) thirty days from the date of meeting the conditions and documents. The expiry of the said .period without issuance of the licence shall be considered as rejection
Article 8
The insurance agent shall be registered in the insurance agents' record and shall be handed over .a certificate proving its registration
Article 9
The licence shall be for the same period set forth in the agreement concluded between the company and the insurance agent, and may be renewed upon a request submitted by the insurance agent, according to the form prepared by the Authority, one month at least before .expiry thereof
Article 10
The insurance agent may, one year after the date of issue of the licence, open one branch or more without exceeding (5) five branches, after the consent of the Authority, according to the .form prepared for the same
Article 11
:The insurance agent and its branches shall
.Notify the Authority upon the vacancy of the position of any of the managers thereof -1 Refer in all the papers, documents, receipts and warnings issued by it to its number of -2 .registration in the Commercial Register and the record of the insurance companies' agents .Put the licence in a prominent and clear place at its headquarters -3 Notify the Authority of any amendment made to the data stated in the insurance companies' -4 agents record or the documents enclosed thereto. Such amendments shall not be taken in .consideration unless after their approval by the Authority Keep duly organised books and registers stating the data, information and documents related -5 :to the works carried out by it, including the following .a- A copy of the agreement concluded between the insurance agent and the company .b- Correspondences related to its works c- A record of the insurance policies issued on behalf of the company for every insurance .activity, privileges and conditions related to each policy d- Copies of the collection, payment, registration and settlement documents as well as .other financial transactions related to its works
Article 12
The insurance agent shall comply with the rules and principles of the practice of profession, and :in particular the following

.Commit to integrity in all its actions and works -1 Clarify to the insurance applicant the content of insurance, the coverage limits, exceptions and -2 .procedures in a complete manner State the insurance fee to the insurance applicant in an accurate manner in accordance with -3 .the approval of the company Not receive any commission or fees from the insurance applicant, the insured or the -4 .beneficiary from the insurance policy Deal in confidentiality with all the data, information and documents obtained or acquired by -5 .it due to its work and take appropriate action to maintain the confidentiality thereof State the importance of disclosure to the insurance applicant of the main information upon -6 submittal of the insurance application and the results entailed from the concealing or inaccuracy of any documents stated in this application, and clarify to the insurance applicant the liability of .the latter for all the data and information stated in the insurance application State the procedures that the customer shall carry out in case of occurrence of the insured -7 .risk
Article 13
:The company shall
Audit the works of the insurance agent and its branches and ensure its compliance with -1 .the laws, regulations and decisions regulating its work Review the work procedures and control procedures of the insurance agent at least once -2 .per year Compensate the policyholders for the damages caused by the negligence or failure of the -3 .insurance agent Notify the Authority immediately by means of an official letter in case of cancellation of -4 .the agreement with the insurance agent
Article 14
:The insurance agent shall not
.Be an agent for more than one company -1
.Work as an insurance broker in addition to its work as insurance agent -2 Assign others to practice the insurance works, or a part thereof, assigned to it by the -3 .company Allow its managers to work at any company or to have any relation with another insurance -4 .agent .Provide incorrect information or data on any other company -5
Article 15
The company shall be prohibited to hand over any seals or documents to any person unless after verifying that such person obtained a licence from the Authority, according to the provisions of .this Regulation
Article 16

The Authority may audit the books, accounts and transactions of the insurance agents, conduct necessary investigations in the committed violations and impose the appropriate sanctions according to the provisions of the above-mentioned Insurance Companies Law. It may also appoint a third party for the auditing of the books of the insurance agent and its records and shall cooperate with such third party and provide all information and data deemed necessary, .provided that such data and information are treated confidentially
Article 17
:The licence shall be cancelled in the following cases Upon the request of the insurance agent and after obtaining the written consent of the -1 .company .If the licence of the company to which the insurance agent is related, was cancelled -2 .If the agreement concluded between the insurance agent and the company was cancelled -3
Article 18
Without prejudice to Article 17 hereof, the Authority may take one or more of the following :procedures in case of violation of the provisions of this Regulation .Warning -1 A fine of not less than (500) five hundred Omani Riyals and not exceeding (5,000) five -2 .thousand Omani Riyals .Suspension of the licence temporarily for a period not exceeding (6) six months -3 .Cancelling the licence -4 The Authority shall, in the case set forth in clause 4, warn the violator of the reasons of violation .and grant it a period for the rectification thereof
Article 19
:The Authority shall collect the following fees Amount Fee S 1 Fee for the study of the licence application Three hundred Omani Riyals (300) Five hundred Omani Riyals (500) Licence fee 2 Five hundred Omani Riyals (500) Licence renewal fee 3 Two hundred Omani Riyals (200) Branch openingfee 4 Twenty Omani Riyals (20) Dataamendment fee 5 6 Fee for the request of perusal of the papers and records Ten Omani Riyals (10) 7 Fee for the request of copies or extracts Ten Omani Riyals (10)