Decision No. 146 of 2018 of the Board of Directors of the General Authority for Financial Supervision

Dated 13/9/2018

Regarding Conditions for Registering Trainees in Insurance Brokerage Activities at Insurance and Reinsurance Companies and Insurance Brokerage Companies

Board of Directors of the General Authority for Financial Supervision

Having reviewed Law No. 10 of 1981 issuing the Law on Supervision and Control of Insurance in Egypt and its executive regulations and amendments, and Law No. (10) of 2009 regarding the regulation of supervision over non-banking financial markets and instruments, and Presidential Decision No. (192) of 2009 issuing the Basic Statute of the General Authority for Financial Supervision, and Decision No. (23) of 2014 of the Authority's Board of Directors regarding the rules governing the practice of insurance brokerage activity within the Arab Republic of Egypt and its amendments, and the Memorandum from the Central Administration for Supervision and Control of Insurance Companies dated 10/9/2018, and the approval of the Authority's Board of Directors in its meeting held on 13/9/2018.

Decided

(Article One)

The conditions to be met by the trainee:

• a- Possessing one of the following qualifications or experiences:

  • Higher education degree.
  • Post-secondary qualification specializing in insurance.

• b- Not having been sentenced to a criminal penalty or a deprivation of liberty penalty for a crime involving breach of trust or honor, unless his reputation has been restored.

• c- Not having been dismissed from his job by a final disciplinary ruling or decision, or having his name removed from the register of professions regulated by laws and regulations due to matters involving breach of trust or honor, unless at least three years have passed since the issuance of the ruling or decision.

(Article Two)

The conditions to be observed by the trainee:

• a- Compliance with the provisions of Law No. 10 of 1981 and its executive regulations.

• b- Compliance with decisions issued by the Authority regulating the insurance and reinsurance brokerage activity.

• c- Compliance with all internal regulations of the insurance and reinsurance company or insurance brokerage company where he is training.

• d- Not practicing the activity until registered in the register prepared for this purpose by the Authority.

(Article Three)

The conditions to be observed by the insurance and reinsurance company or insurance brokerage company:

• a- Concluding a training contract that regulates the rights and obligations between the parties and in accordance with the provisions of Law No. 10 of 1981 and its executive regulations and decisions issued by the Authority to regulate the practice of insurance brokerage activity.

• b- Limiting the training period to only one year, which cannot be renewed at the same company, and the company is thereafter obligated to issue a certificate confirming his successful completion of the training period.

• c- The trainee is entitled to financial benefits and bonuses for transactions he contributes to bringing to the insurance and reinsurance company or insurance brokerage company where he is training, as determined by the contract concluded between them or the company's internal regulations.

• d- Trainees shall carry out their work under the supervision of an insurance broker registered with the Authority within the company's production unit, with a maximum of (10) trainees under his supervision.

• e- The supervisor in the company's production unit shall bear joint liability with the trainee and the company for the trainees' acts and omissions committed during the practice of their work.

• f- The company is obligated to prepare a scientific and theoretical training and qualification program for the trainee during the training period and to provide the Authority with a copy of the program.

• g- The trainee must not have previously contracted with another insurance and reinsurance company or insurance brokerage company, or been linked to a training relationship with more than one company other than the company where training is to be conducted.

• h- The trainee's name shall be written on the insurance application for transactions he brought, next to the name of the supervisor training him, without writing his name on the policy document.

• i- The trainee's name shall be written alongside the supervisor's name in the policy register maintained by the insurance or insurance brokerage company.

• j- Submitting a list of current trainees and their supervisor to the Authority within two weeks for their registration in a register specially prepared by the Authority for this purpose. As for new trainees, the company must submit a list of their names and their supervisor's names to the Authority within one week at the latest from the date of contracting with them for registration in this register.

• k- Notifying the Authority within one week in case of a change of supervisor, while adhering to the maximum number of trainees per supervisor.

(Article Four)

Registration procedures with the Authority:

The insurance and reinsurance company or insurance brokerage company is required to request registration with the Authority using the form specially prepared for this purpose, accompanied by the following documents:

• a- Documents proving that the trainee meets the conditions specified in Article One.

• b- A copy of the training contract.

• c- A certificate stating the name of the supervisor to whom he is assigned, accompanied by a declaration from the supervisor accepting joint liability for the trainee's acts and omissions during the practice of brokerage activities.

• d- A declaration from the trainee committing to comply with the rules issued by the Authority regulating insurance brokerage activities and training therein.

• e- The document proving payment of the fee for the registration request in the trainees register for insurance brokerage activities at the Authority, amounting to 500 Egyptian Pounds (five hundred Egyptian Pounds).

(Article Five)

• a- The Central Administration for Registration of Insurance Professionals at the Authority shall:

  • Maintain a special register for trainees in insurance and reinsurance brokerage activities, noting the name of the supervisor, the trainees under him, and the name of the insurance or insurance and reinsurance company where he is training.
  • Receive and review companies' requests for trainee registration and take the necessary measures to register them in the register prepared for this purpose by the Authority.

• b- The General Administration of Privileges shall issue an identification card (Trainee in Insurance Brokerage Activities at Company ....) for these trainees for a fee of 100 Egyptian Pounds per trainee, borne by the company where he is training.

(Article Six)

This Decision shall be published in the Egyptian Gazette and shall take effect from the day following its publication date.

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Chairman of the Board of Directors
Mohamed Omran

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General Authority for Financial Supervision
FINANCIAL REGULATORY AUTHORITY

Smart Village, Building no. B-136, Giza, Egypt
Postal Code: 12577
Tel.: +202 35345350 - Fax: +202 35370036
info@fra.gov.eg
www.FRA.gov.eg

Smart Village, Building no. B-136, Giza
Postal Code: 12577
Tel.: (00202) 35345350 - Fax.: (00202) 35370036