Implementing Regulation of the Insurance Companies Law (No. 5/80)

Decision No. 5/80 On the Implementing Regulation of the Insurance Companies Law ,The Minister of Commerce and Industry Having perused the Law on the Regulation of the Administrative Apparatus of the State of 1975 and its amendments; Oman Sultani Decree No. 12/1979 promulgating the Insurance Companies ,Law; Oman Ministerial Decision No. 21/1979, And based on the public interest requirements :Decided the following Issued on 09/01/1980 Mohammed Al-Zubair Minister of Commerce and Industry Chapter 1 Definitions and Conditions Article 1 The following terms mentioned in this Decision shall have the meanings stated beside each of :them, unless another meaning is expressly specified a- Insurance Company or Company: The joint stock Company established in accordance with the Commercial Companies Law of 1974 and the Insurance Companies Law promulgated by Oman Sultani Decree No. 12/1979. It shall also mean the branch or agency of foreign Insurance .Companies subject to the aforementioned Insurance Companies Law .b- Law: Insurance Companies Law, promulgated by Oman Sultani Decree No. 12/1979 .c- Insurance: Direct insurance and reinsurance .d- Authority: The Capital Market Authority e- Auditor: The Company’s Auditor who works inside the Sultanate and has its main office or a .branch managed by an Auditor responsible before the competent authorities in the Sultanate f- Contract: In the provision of Article 28/a of the Law, each insurance Contract shall be one of the compensation Contracts, including liability insurance Contracts for bodily injuries or death of third parties in which it is not possible to pre-determine the value of the liability or its maximum .limit Article 2 Qualified person” in the provision of Article 2/d of the Law shall mean a person who has a“ licence to work and reside in the Sultanate, who is approved by the Company’s head office and

:who holds A fellow degree: Or Associate degree from the Chartered Insurance Institute of London (CII), or -1 from the United States Chartered Property Casualty Underwriter (CPCU), or from a similar .institute or body approved by the Authority Or a university degree in addition to technical experience in insurance business for a period of -2 not less than five years as an insurance underwriter in one or more Insurance Companies whose .paid-up capital is not less than the equivalent of three hundred thousand Rials Or technical experience in the insurance business for a period of not less than ten years, -3 including five years at least as an insurance underwriter in one or more Insurance Companies whose paid-in capital is not less than the equivalent of three hundred thousand Omani Rials. The technical experience referred to in Clauses 2 and 3 above may be in one of the risk management Companies or agencies, or brokerage in the insurance business with the availability .of the aforementioned conditions of type of work and capital The qualification certificates, experience and paid-up capital, certified by the Authority, shall be submitted for approval when submitting the licence application to the Company to engage in .insurance business Article 3 The Insurance Company shall appoint an actuarial expert or shall Contract with one of the offices approved by the Authority in accordance with the conditions set by the Authority in this .regard Article 4 The foreign Company’s branches and agencies shall mention in every insurance policy issued in the Sultanate the name of the person responsible for managing insurance operations in the Sultanate. The document appointing the aforementioned official shall include authorising him .with the following competencies in particular .a- Keeping books and records stipulated in the Law and the decisions implementing the same b- Direct management of the branch or agency in technical aspects, in particular the signing of insurance policies, amendments thereto, receipts and documents related to the operations that .are carried out c- Representing the foreign Company and its branch or agencies in the Sultanate before the .competent Omani authorities .d- Delegating others on his behalf in all of the above Chapter 2 Records, Accounts and Data Article 5 In the application of the provisions of the Law and the decisions implementing the same, the branches and agencies of foreign Companies shall be considered as separate units in relation to the insurance business practiced in the Sultanate with regard to accounts, budgets, accounts of revenues and expenses, profits and losses, solvency limit, deposit, technical reserves and funds to be kept in the Sultanate to meet the obligations therein towards the insurance policyholders, .as well as arrangements for both co-insurance and reinsurance All current accounts and fixed-expense deposits as well as all other assets kept in the Sultanate for insurance business, which the branch or agency is authorised to practice, shall be in the

name of such branch or agency. Without prejudice to the preceding two paragraphs, the responsibility of the foreign Company for all the obligations of its branch or agency in the Sultanate shall continue to be towards the insured and the beneficiaries of insurance policies .issued by it in the Sultanate Article 6 The Insurance Company shall keep in the Sultanate the records necessary to follow up on its :activities, as follows :For the direct insurance operations: The Company shall keep the following records -1 a- Policies’ record: In which all insurance policies issued by it in the Sultanate shall be entered, indicating the serial number of each policy, the date of its issuance, the names and addresses of the policyholders and beneficiaries, the amount of insurance, the term of .insurance, and the modifications and changes that occur to the policy b- Compensation record: In which all claims submitted to the Company shall be registered, indicating the date and value of each claim, the name and address of the claimant, and the date of payment of compensation. In the event of rejection, the date and reasons of rejection shall be mentioned. Each claim shall have a serial number, and the number of the .insurance policy specific to the claim shall be indicated :For the re-insurance operations: The Company shall keep the following records -2 a- Agreements’ record: Which includes the agreed and optional operations, and all the agreements concluded by the Company shall be registered in it, with a statement of the names and addresses of the insurance authorities with which they are concluded, the date of the conclusion of each agreement, its expiry date, the changes thereto, and any other .data that the Company deems important in relation to the agreement b- Compensation record: In which all compensation reported to the Company for the shares entrusted to it shall be registered, and it shall indicate the name of the claiming authority, the agreement for which compensation is required, the Company’s retention of it, the share of reinsurers, the date of payment, and the estimated reserve amount for the accident. In the event of rejection to pay compensation, the reasons and date of the rejection shall be mentioned, and separate records shall be allocated for each of the reinsurance Local inbound operations - inbound operations from abroad - local outbound operations - .outbound operations abroad - each separately The Company’s obligation to keep such records shall remain even if the reinsurance is carried out by the foreign Company’s head office abroad. In addition to the above, all Companies operating in the Sultanate shall keep a record of the funds kept inside the Sultanate, in which the funds kept are recorded in accordance with the provisions of the Law and the decisions implementing the same, as well as the amendments that may arise in the composition of these funds. Funds belonging to a life insurance group and funds belonging to a general insurance group shall be registered separately. This record shall be marked with the Authority's seal .without fees Article 7 Each Company shall keep separate accounts for each branch of insurance that it is licensed to .practice in the Sultanate, according to the division mentioned in Article 1/1 of the Law The Authority may instruct the Company, in addition to the above, to maintain a special account for certain operations that fall under one of the aforementioned branches, and direct revenues .and expenses shall be distributed to such accounts, each according to its competence

Each Company shall distribute each year to the insurance branches practiced by it, the indirect revenues and expenses that cannot be allocated to a specific branch or branches, provided that this distribution takes into account the ratio of the total income of the sections of each branch .to the income of the total branches practiced by the Company Article 8 The Company shall submit to the Authority a detailed statement of the value of its liabilities for life insurance operations and another for general insurance operations, provided that both statements include the value of the Company’s retained funds allocated to meet these liabilities, estimated at their book or market value, whichever is lower, one month at least before the Company’s general assembly, if the Company is a national Company, or on a date not later than .the end of February of each year if the Company is a branch of a foreign Company The statements referred to shall be prepared in accordance with Annexes 3, 4, 5, 6 and 7 attached to this Regulation, provided that each of them bears two signatures, one of which is the responsible Manager of the Company and the second is its Auditor in case of general .insurance, or an actuary in case of life insurance The Company shall submit to the Authority unaudited quarterly reports as soon as they are approved by its Board of Directors or within 20 days of the relevant quarter, whichever comes .first Article 9 The Company shall submit to the Authority, on the dates referred to in Article 8 hereof, the statements and accounts set forth below, in accordance with the Annexes attached to the :aforementioned Ministerial Decision no. 5/80 a- The budget (Annex no. 8) and if the Company practices any of the general insurance branches in addition to life insurance, it shall submit a separate budget for each of the general and life .insurance groups separately .(b- Account of profits and losses (Annex no. 9 .(c- Profit distribution account (Annex no. 10 .(d- Revenue and Expenses Account for the Ordinary Life Insurance Branch (Annex no. 11 .(e- Revenue and Expenses Account for the Funds Creation Branch (Annex no. 11 .(f- Revenue and Expenses Account for general insurance branches (Annex no. 12 g- A statement of the distribution of insurance premiums for ordinary life and industrial .(insurance (Annex no. 13 h- A statement of the distribution of general insurance premiums according to insurance .(branches (Annex no. 14 .(i- Statements related to inbound and outbound reinsurance operations (Annex no. 15 j- Statements of the funds and liabilities of the national Company outside the Sultanate (Annex .(no. 16 Solvency account in accordance with the provisions of the Law, the decisions implementing the same, and the instructions of the Authority with the submission of supporting documents for .each of the activities of general insurance, life insurance and health insurance, separately Article 9 bis

A foreign Insurance Company may operate in the Sultanate of Oman through an authorised -1 :agent, a branch or any other unit affiliated to it, provided that :a- All of its policies are issued in Oman whenever they cover .Risks existing in Oman and/or arising in Oman and/or relating to property in Oman - .Residents of Oman against the risks covered by life insurance policies - :b- It maintains in its office in Oman A record of all the policies issued by it in Oman, explaining its rights and obligations under - .such policies .A record of claims paid and pending in accordance with the policies issued in Oman - .Documented evidence of the assets owned in Oman - c- It provides evidence that convinces the Authority that its accounts are subject to annual .audit by an independent chartered accountant d- It submits from one of the banks or financial institutions approved in the Sultanate or from any other entity approved by the Authority, proof that the capital allocated to .insurance business in the Sultanate is not less than five million Omani Rials The foreign Company shall provide the Authority with proof that it is incorporated in -2 accordance with the provisions of the Law in force in the country in which its head office is .located The foreign Company shall pay the taxes imposed in the Sultanate on the achieved insurance -3 .profits before transferring any funds in payment of insurance premiums The foreign Company shall deposit with the Authority an amount of at least seventy-five -4 thousand Omani Rials if it practices one type of insurance, and one hundred and fifty thousand Omani Rials if it practices more than one type of insurance, provided that the Authority may, upon a written request from the Company, permit it to deposit half of the aforementioned amount in the form of securities or bank letters of guarantee accepted by the Authority in accordance with this Regulation. Such deposit may not be released for the duration of the Company’s work in Oman, nor is it released unless all its policies have expired, all claims related thereto have been paid, and all life insurance policies have been transferred to an Insurance .Company operating in Oman Article 10 The foreign Insurance Company shall submit to the Authority, in accordance with the statements and accounts stipulated in the Law and the implementing decisions, a copy of the balance sheet, revenue and expenditure account, account of profits and losses, reports on the Company’s undertakings and other statements that shall be submitted to the official control authority in accordance with the provisions of the Laws of the countries to which such Companies belong. If the law of the country of origin does not require the submission of these statements, then statements certified by those responsible for managing the foreign Company shall be submitted including all its assets and liabilities at the end of the fiscal year, with sufficient details of the revenues and expenses of this Company for the elapsed year, according to the pattern set out in .Annexes 8, 9, 11 and 12 attached to this Decision Article 10 bis Every Insurance Company shall form the following provisions and technical reserves, and

:preserve them concerning every type of insurance .a- Provision for risks that did not occur .b- Provision for outstanding claims .c- Contingency reserve The methods for calculating such provisions and technical reserves shall be issued by a decision from the Authority. Dividends may not be announced in any year until the accumulated reserve deficit is covered from the retained earnings, and the reserve may not be disposed of or used .without a prior approval from the Authority Chapter 3 Technical Reserves and Corresponding Funds Article :In the previous article of the law, the following shall be taken into consideration The "total net premiums" and "life assurance premium reffered to in items 2/a and 3/b -1 consecutively of that article, shall be calculated by adding total direct premuims underwritten to .inward premiums locally ceded less premuims cancelled and premuims ceded locally The "net premium" mentioned in section 2/c of that article shall be calculated as "total net -2 premuims" as fixed in conformity with the previous paragraph, plus reinsurance premuims .received from abroad less reinsurance premuims ceded abroad the "general reserve fund for life assurance" shall be computed by the actuary in confomity -3 .with annexures 3.4 attached to this decision repealed -4 Article 12 Every Company engaged in life insurance operations shall keep within the Sultanate funds equal to at least 100% of its total liabilities for these operations concluded by the Company and implemented in the Sultanate, calculated in accordance with Annexes 3 and 4 attached to this Decision. These funds shall be completely separate from the funds for general insurance operations, and allocated to meet the obligations referred to in the previous paragraph. The provision of the first paragraph of this Article shall apply for the first time with :regard to the percentage that shall be preserved as follows .at the end of the first fiscal year that ends after entry into effect of this Decision 25% .at the end of the second fiscal year 50% .at the end of the third fiscal year 75% .at the end of the fourth and the subsequent fiscal years 100% Provided that a letter of guarantee for the value of the difference is submitted at the end of each of the aforementioned years. The Authority may make a claim to the Company after the guarantee is valid until it verifies that the percentage is complete. The provision of this Article shall also apply to the Company's liabilities for general insurance operations calculated in .accordance with Annex (5) enclosed to this Decision Article 12 bis The Insurance Company may deduct the following from the funds referred to in Article (12) of -1 :this Regulation

a- Shares of external reinsurers in the manner, under the conditions, and within the limits .”set forth in Annex (18) Paragraph (Second) Clause (1) “Policyholders’ Rights b- (The Company’s net share in the reserve of compensation under settlement) for each insured person under general insurance due from him to the Company on the same date - premiums under collection for that policy - within the limits of these entire premiums if the insured is a government body or a Company in whose capital the government contributes - or: Within the limits of these premiums for which not more than ninety days have passed .from the due date, if the insured is a private sector person The net share of the Company in the said reserve for a particular insured shall be determined as a percentage of the (total) reserve of that insured as a ratio: The Company’s total (net) share in the reserve (for all the insured) in the relevant branch of insurance - after deducting the outbound reinsurance and the outbound subscription in the insurance - to the (total) of this .reserve before deducting any outbound reinsurance or subscription The total value of the Company’s loans guaranteed by one of these policies in addition to any -2 installments that may have been due on the policy and not paid to the Company shall be considered as the money allocated to meet the rights of the holders of life insurance policies - pursuant to the provision of Article (12) above - all within the limits of 90% of the policy’s .liquidation value on the balance sheet date Except for the investment approved by the Authority outside the Sultanate within the -3 framework of implementing Article (15) of this Regulation - all the funds that shall be kept, in accordance with the provisions of Article (12) above and this Article (12 bis), shall be invested .inside the Sultanate Article 13 If the Company decides to suspend its activity in the Sultanate before its funds kept in the Sultanate reach at least 100% of its total liabilities for the policies in force at the time of suspension, and does not want to transfer its portfolio to another Company approved by the Authority, it shall complete the shortage within twelve months from the date of its notification of the decision of suspension to the Authority. Such notification shall not be delayed for 15 days from the date of the decision, and the Company shall submit to the Authority - within two months at most from the date of notification - a letter of guarantee from a bank approved by .the Authority for the period necessary to complete the aforementioned shortage Article 14 Cash and securities representing funds to be kept inside the Sultanate, in accordance with the Law and the decisions implementing the same, shall be deposited in banks or financial .institutions licensed by the competent entities in the Sultanate The Company shall submit to the Authority a certificate from the bank or financial institution proving the deposit, provided that it includes the commitment of the bank or financial institution not to allow the Company to withdraw any part of the cash deposits or the securities deposited at it for this purpose without the approval of the Authority, as well as its obligation to notify the Authority without delay for each amendment to the composition of these deposits or securities, and provided that a statement signed by it is submitted during January of each year, on the Company’s funds with it as on December 21 of the previous year, as well as all the statements that the Authority may request about these funds, with its commitment to separate .the funds allocated to the life group from those allocated to the general insurance group Article 15 Each Company shall inform the Authority, at least two months before the end of each fiscal year, of its proposals regarding the funds investment plan during the following fiscal year, and in particular with regard to the funds that shall be allocated to meet the Company’s obligations

towards insurance policyholders and beneficiaries. The Authority shall express its opinion on that plan within two months from the date of its notification thereof. If the aforementioned two .months lapse without a response from the Authority, the plan becomes effective for that year Chapter 4 Auditing and Actuarial Exam Article 16 The Company’s Auditor shall certify in his report submitted to the Authority that the balance sheet, account of profits and losses, revenue and expenditure account, statements of existing commitments, reserves, funds kept within the Sultanate, and solvency limit calculation for the operations practiced by the Company, have been properly prepared and that they correctly represent the Company’s financial condition as per the Company’s books and other statements placed at his disposal, with the exception of estimating the existing commitments for life insurance operations stipulated in Article 1/1, Clauses a, and b of the Law, so that it is signed by .the Company’s actuarial expert The Auditor's certificate shall include a statement of the means by which he verified the existence of assets, methods of valuing them, and method of estimating the existing commitments. He shall also ensure the proper distribution of revenues and expenses among the .insurance branches practiced by the Company in the Sultanate The Auditor shall notify the Company’s Board of Directors and the Authority that the Company’s financial position does not allow it to meet its obligation at his discretion as soon as he becomes aware of the same. He shall also notify the Company of any shortage, error or violation that requires objection, especially with regard to the provisions of the Insurance Companies Law and the decisions implementing the same. If the Company does not meet the shortage, correct the error, or remove the cause of the violation, as the case may be, within a month from the date of notification, the Auditor shall report the matter to the Authority. The Company shall place at the disposal of the Auditor all books, documents and statements that he deems necessary to carry .out his job The Authority may order a re-audit of the Company’s accounts either by another Auditor accepted by the Authority or by the same Auditor who signed the report submitted to it in accordance with the provisions of this Article, if it finds in this report a failure to perform what this Article imposes on the Auditor after hearing the statements of the Company’s .representatives at its own expense Article 17 The actuarial accountant of the Company shall prepare his report on the results of the exam stipulated in both Article 21 and Article 25 of the Insurance Companies Law in accordance with .Annexes 1 and 2 enclosed to this Decision and their attached forms, signed by him The Company shall submit a copy of this report and its attachments to the Authority within six months from the date on which the exam was conducted, acCompanied by an acknowledgment from those responsible for the Company’s management that it has placed at the expert’s disposal all the information and data necessary to reach a correct estimate of the Company’s .commitments Article 18 If the Company in the life insurance group incurs underwriting losses for two consecutive years or for three contiguous years, it shall assign its actuarial expert to examine the financial conditions of this group and submit a report signed by him to the Board of Directors of the Company and the Authority on the reasons for the recurrence of losses, and his proposals to avoid them, provided that this report is submitted within two months at most after the end of

the deadline prescribed for submitting the budget and final accounts for the previous year. The Company shall inform the Authority, within one month from the date of submitting that report, of the proposals it considers to be followed in light of the same, and the time limit it requires for its implementation. The Authority shall inform the Company of its opinion on these proposals .within another month, otherwise these proposals shall be considered accepted Article 19 If it is found that the actuarial expert’s report does not indicate the reality of the Company’s financial condition - with regard to life insurances - due to wrong bases of estimation that are not justified by reality, the Authority may - after hearing the statements of the Company’s representatives - order to reconduct the exam referred to in the two previous Articles at the .Company’s expense Article 20 In the event of bankruptcy or liquidation of the Company that engages in life insurance operations, the amounts due to each policy holder whose term has not expired shall be estimated to be equivalent to its accounting reserve on the day of adjudication of bankruptcy or the liquidation report, calculated on the basis of the technical rules for the tariff of premiums at .the time of conclusion of the policy Chapter 5 Deposit and Solvency Limit Article 21 Pursuant to the provision of Article (9) bis of this Regulation, the Authority may, upon a written request from a foreign Company’s branch or agency, Permit to deposit half of the value of the :deposit stipulated in that Article in one of the following forms a- Shares or bonds: In this case, it shall be required to submit a certificate from the Auditor stating that the market value of the shares or bonds is not less than their nominal value, otherwise the lower estimation will be taken into account, and that the entity that issued the bonds - if it is non-governmental - has not stopped fulfilling its obligation for the three years .preceding the submission of the application b- A bank letter of guarantee: In this case, all continuing Companies shall be allowed at the time of issuance of this decision to submit a letter of guarantee attached to the application for a licence to practice insurance business, provided that the ownership of the branch or the agency in the Sultanate is proved on the date of the end of the fiscal year during which the licence application was submitted, which is accepted in the solvency account - and at least sufficient to cover his obligations towards the holders of insurance policies issued in the Sultanate and valid on this date, calculated according to Annexes (2, 4 and 5) attached to this Decision, provided that proof of fulfillment of the aforementioned condition is not delayed beyond the legally .prescribed date for submitting the budget and final accounts to the branch or agency The value of the letter of guarantee referred to in the previous paragraph shall be forfeited for the account of the deposit if that condition is not met on the prescribed date. In this Clause, the .provisions of Article (12) of this Decision shall be taken into consideration c- Shares and bonds with a bank letter of guarantee: In this case, the conditions stated in .paragraphs a and b together shall be taken into account Article 22 The investment returns of the deposit shall be included in the account of the income and expenses of the insurance group for which the deposit was made, stipulated in Clause (2/e) of

.Article (3) of the Law and Article (9) bis of this Regulation Article 22 bis :The insurance company's solvency margin required by the law shall be deemed maintained a. Where the assets of the company carrying out general insurance exceeds its liabilities by the greater of the following amounts (RO 75,000 (Seventy Five Thousands .1 One-eighth (1/8) of the revenues of general insurance of the insurance company during .2 .the last preceding financial year b. Where the assets of the company carrying out last assurance business exceeds its liabilities by .RO 25,000 under life assurance policies c. Where the company carrying out life assurance business together with any other class of .insurance business meets the solvency margin stipulated in the previous clauses Article 23 Calculating and maintaining the solvency limit of the Insurance Company shall be in accordance .with Annex (18) attached to this Regulation Article 24 If the Insurance Company does not meet the minimum requirements of the solvency limit in any of its licensed activities, then it is not permissible to distribute the profits available to the shareholders or the head office of foreign Insurance Companies by the branch except after fulfilling the requirements of the previous year, provided that the Insurance Company has a sufficient amount of surplus solvency limit in general, life and health insurance independently .after distribution Article 25 If a foreign company, at the time of its balance sheet is inableto complete the legal solvency margin for the two branches of life assurance and general insurance, then the company shall increase the deposit required by virtue of article (9) (repeated) of the regulation up to the limit of the solvency margin, either by cash or securities accepted to the authority. this increase of deposit shall be fulfilled within a maximum of three months from the date fixed for the .submission of the balance sheet where no deposit is made or insufficient to prevent repetition of insolvency at the date of ordinary subsequent balance sheet, the company will not prejudice The Authority's right to take .other measures to protect the rights of policy holders Article 26 The provisions of article 22,23,24,25 regarding solvency margin will be applied for the first time after the expiry of twelve months from the date of application of this decision, for the companies operation at the date of its issuance. For the companies formed after the issuance of the decision it will be effective from the date of publishing the license to practice insurance .business for the first time Article 27 Pursuant to the provision of Article 9 bis of this Regulation regarding the deposit related to the general insurance group, the transfer of all outstanding liabilities from the concerned foreign Company to another Company licensed to operate in and invested in the Sultanate, and the

acceptance of this transfer by the transferee Company, shall constitute the termination of the policies of the transferring Company for it alone. The Authority may accept to release that deposit, provided that all assets acceptable to it are transferred with these liabilities in the local Company’s balance sheet, or the transferee agrees not to transfer these assets to it by a letter .from it to the Authority Chapter 6 Subscription and Reinsurance Arrangements Article 28 The provisions of this Chapter shall apply to direct insurance policies and certificates, annexes and renewals issued by Companies in the Sultanate in accordance with the provisions of the .Law Article 29 Abrogated Article 29 bis Abrogated Article 30 Abrogated Article 31 Abrogated Article 32 Abrogated Article 33 The Company shall inform the Authority of data on the existing reinsurance agreement within the second month of the entry into force of this Decision, and then provide the Authority with similar data on any new agreements or amendments to existing agreements within one month of .their conclusion The notification referred to in this Article shall be on the form shown in Annex (16) attached to this Decision, taking into account the distinction between agreements in which the Company is .assigned and those in which it is reinsuring Article 34 Abrogated Article 34 bis Abrogated Chapter 7 Insurance Brokers Article 35

Pursuant to the provision of Article 20 of the Law, the Company shall be prohibited from accepting insurance operations through a broker who is not working in production in the same Company, unless the broker is licensed to practice brokerage in the insurance business and is registered in the insurance brokers register for this purpose with the Authority, provided that the broker’s name and registration number in this register is stated in every insurance policy .concluded by the Company through him Article 36 Insurance brokerage without obtaining the licence referred to in the previous Article shall be considered the practice of insurance business without a licence. In the provisions of this Chapter, the broker shall mean every person who concludes an insurance Contract or insurance coverage for the benefit of another person, assists or participates in any way in the invitation for the conclusion of this Contract, coverage or negotiation for this purpose, in return for compensation, .commission, or any other consideration of value Article 37 The broker shall submit an application for obtaining a licence to practice insurance brokerage and registration in the insurance brokers registry with the Authority, acCompanied by documents supporting the fulfillment of the conditions specified in the Decision issued by the :Authority’s Executive Director, including .Receipt proving the payment of the licence fee -1 Evidence that a bank guarantee of fifty thousand Omani Rials has been deposited for a -2 renewable period of one year, which remains valid throughout the validity period of the licence .and guarantees all rights of third parties before the brokerage arising from brokerage activities Article 38 The licence and registration in the insurance brokers’ registry shall be valid for a period of five years, renewable upon a request submitted by the broker, within two months after expiry of the aforementioned period at most. The registration shall be canceled if it is not requested to be renewed within the aforementioned period, or if a judgment is issued against the broker for an act of moral turpitude and dishonesty, breaches the provisions of the Law or the decisions implementing the same, or if the bank letter of guarantee referred to in the previous Article has .not been renewed after its expiry during the registration or renewal period Article 39 Insurance Companies may authorise banks to market their insurance products in accordance .with the rules issued by the Authority’s Executive Director Chapter 8 General and Final Provisions Article 40 The Company shall be considered having paid the taxes imposed in the Sultanate on insurance profits achieved in the provisions of Article 9 bis of this Regulation, if it pays the same to the tax authorities in the Sultanate in accordance with the provisions of the Income Tax Law and its Regulations in force for the period during which it intends to transfer insurance premiums .abroad Article 41 Pursuant to the provision of Clause (b) of Article 8 of the Law, the following cases in particular :shall be considered a deviation from the Company’s proper insurance method

First: If, without real justification accepted by the Authority, it rejects, repeatedly, to settle serious claims to compensate the insured or it is involved in permissible methods in settling these claims. A permissible method in settling claims shall be if the Company commits, without a just cause, any of the following acts in a repeated manner that suggests that it is a general .method of practicing the insurance activity a- The approved misrepresentation of real facts or terms of the policy that are closely .related to the coverages in question b- The Company's failure to observe promptness, impartiality and fairness in settling claims .in which its responsibility has become reasonably clear c- Policyholders being forced to file lawsuits to recover sums due to them under their policies, by offering them sums that are significantly less, without justification, than those .they can obtain in the lawsuits they file Second: If, without a real justification accepted by the Authority, a Company, repeatedly, attracts clients or operations of another Company operating inside the Sultanate by using unfair .competition methods or speculation on the decrease in insurance prices Third: If the Company repeatedly violates the provisions of Chapter 6 of this Decision regarding .subscription and reinsurance arrangements Fourth: If, without being based on the Law and the decisions implementing the same, the shortage of funds that the Company is required to keep in the Sultanate is repeated, in a way that jeopardises - at the Authority's discretion - the safety of the Company's financial standing .and the rights of the insured in the Sultanate Fifth: If the Company acts, even once, as an insurance broker outside the Sultanate, for insurance policies that, in accordance with the provisions of the Law and the decisions implementing the same, should have been issued inside it, or facilitates the collection of direct insurance premiums outside the Sultanate, which they should have, in accordance with the .provisions of the Law and the decisions implementing the same, taken place inside it Article 42 The existing Company at the time of issuance of this Decision may be granted, upon a written request submitted to the Authority, a non-renewable period not exceeding the thirtieth day of September 1980, to translate the policies issued in the Sultanate into Arabic in implementation of the provision of Article 60 of the Law. As an exception to the above, the aforementioned period for marine and air insurance policies shall be extended for another year after this date Article 43 The Insurance Company shall be prohibited from lending to its employees, managers, or agents unless it has free funds in excess of the funds to be retained, and it has a sufficient surplus in the total solvency limit in general insurance, life insurance and health insurance separately in .accordance with the Laws and Regulations As an exception thereto, it shall be permissible to lend on life insurance policies, not exceeding .the redemption value of the policy Article 44 The Company and the insured may, after the occurrence of any dispute between them regarding .the implementation of the policy, agree to refer it to arbitration If they do not agree upon choosing the likely arbitrator, the Authority shall make the selection and notify the disputing parties of the same in writing within one month of being notified of the

disagreement. The arbitration award shall be final if both parties have previously agreed on the .same Article 45 After its suspension, the Company may not cancel any of the insurance policies except after notifying the Authority and each of the insured and the concerned beneficiaries in writing of its decision to cancel the policy. The notification shall be at their last known address with the policy .number and all its details along with the reasons for cancellation Article 46 The Insurance Companies shall pay to the Authority annually a relative fee calculated on the :total direct premiums due to the Company for the total policies in the previous year as follows :First: Insurance Contingency Fund Financing Fee .a- 0.25% of the total life insurance policies .b- 1% of the total general insurance policies :Second: Supervision and control fees .a- 3% of the total life insurance policies .b- 0.6% of the total general insurance policies The fee shall also be paid for each additional premium due and collected for those insurances. With regard to the participation share stipulated in Article 9 bis of this Regulation, the foreign Company shall pay the fee directly to the Authority on behalf of the national reInsurance Company or Companies or on its own behalf if the participation takes place within the .framework of reinsurance in participation The Company may not require this fee from insurance policyholders in excess of the two .categories referred to in this Article The fee shall be mentioned in the receipt of the insurance premium payment separately from .the premium Article 47 All Companies, national and foreign, that continue to operate in the Sultanate in accordance with the provisions of the Law, shall submit to the Authority within a period not exceeding the thirty-first of March 1980 or the end of three months from the date of entry into effect of this Decision, whichever is later, to request a licence to continue to engage in insurance business, with submitting evidence that they meet the conditions stipulated in the Law and the decisions issued in implementation thereof according to the request, and shall immediately stop practicing .the activity and take the procedures prescribed by the Law in this regard Article 48 Abrogated Article 48 bis Without prejudice to the power of the Authority - in accordance with the provisions of the Insurance Companies Law and the decisions issued in implementation thereof - in deciding on the disputes of Insurance Companies operating in the Sultanate, any disputes that arise between these Companies shall be resolved through arbitration in accordance with the provisions of Title Two of the Rule of Consideration of Lawsuits and Arbitration Claims before the competent Court

.enclosed to the Oman Sultani Decree No. 32/1984 Article 49 This Decision shall be published in the Official Gazette and shall come into force from the date of publication thereof Annexes Enclosed to Oman Ministerial Decision No. 5/80 Annex No. 1 Actuarial Report Form for Life Insurance Operations (Including Industrial Insurance) :Company Date of report -1 Interest rate used (If more than one rate is used, the rate used in each type of insurance shal -2 .(be mentioned Life table used: (In case more than one table is used, such tables shall be mentioned with the -3 types of insurance that were used in them, and in case of using unpublished tables, the values of the mathematical reserves and the interest rate used shall be metioned in accordance with the .(attached form no. 8 :Methods followed in -4 a- Estimating the liabilities (such as the method of calculating the difference between the present value of the Company's future liabilities and the present value of the insured's .(future liabilities, or any other method mentioned in detail .b- Reaching the net premiums used when estimating liabilities .c- The status of Contracts issued to persons below the normal health level .d- The status of Contracts issued to ordinary persons exposed to extraordinary risks :Methods used for estimating -5 .a- Ages at the commencement of insurance and the due date of premiums and policies b- Ages at the date of estimation and the period remaining until the due date of the policy or .until the due date of the last premium payable under the policy .c- Premiums that are paid at intervals of less than one year d- Cancelling the theoretical negative values if the method of estimating the liabilities requires .that the policies be considered among the assets :The data used in the estimation and resulting from it as follows -6 :First: Data on the Company's activity according to the following forms .Form (1) New life insurance operations during the year .Form (2) Movement of valid policies at the end of the year .Form (3) Analysis of commercial premiums during the year

:Second: Data on estimating liabilities according to the following forms .Form (4) Summary of life insurance policies and their estimation on the date of estimation .Form (5) Valid life insurances :Third: Data on the estimation results according to the following forms .Form (6) Reserves at the end of the year .Form (7) Analysis of claims during the year .Form (8) Analysis of surplus during the year Form (9) Statement of the distribution of profits resulting from the estimation .(Revenue and expenses account for the year in accordance with Annex no. (11 -7 Annex No. 2 (Actuary Report Form for Funds Creation Operations (if any :Company :Date of report -1 (Interest rate used (In case more than one rate is used, to give reasons -2 Method of reporting liabilities: (In the method of reporting liabilities, it shall be stated if the -3 method is of calculating the difference between the present value of the Company's future liabilities and the present value of the insured's future liabilities, or any other method mentioned in detail, and if several methods are followed, each method shall be stated .(separately How to reach the used premiums(Specifying each method of reaching the premiums in each of -4 .(the methods for estimating liabilities The total load allocated for expenses and grants in the future(Stated as a percentage of the -5 total commercial premiums - grants are the ones that result from the liabilities’ estimation method).(Stated as a percentage of the total commercial premiums - grants are the ones that .(result from the liabilities’ estimation method :The estimation method for -6 a- Remaining period from the date of estimation until the due date of the policy or until the due .date of the last premium payable under the policy .b- Premiums that are paid at intervals of less than one year :The data used in the estimation and resulting from it as follows -7 First: Data on the Company's activity according to the following forms .Form (1) New Funds Creation Operations .Form (2) Movement of Funds Creation Policies Valid at the End of the Year :Second: Data on the estimation results according to the following forms .Form (3) Summary of the Estimation of Funds Creation Operations

:Third: Data on the estimation results according to the following forms .Form (4) Technical Reserves and Pending Claims Reserve Form (5) Statement of Surplus Analysis of Funds Creation Policies Principles of distributing profits between shareholders and policyholders: (To be stated -8 whether these principles have been specified in the Company’s Articles of Association, bylaws, or .(any other Decision Revenue and expenses account. (According to Annex 12 of the Annexese enclosed to this -9 .(Decision :The estimation results shall state the following -10 Description Rials Description Rials Amounts allocated for each :of a) Policyholders with) .subscription to profits Surplus amount (Form No. (5 .b)Shareholders) c) Private reserve funds or) .otheraccounts Value ofgrants paid d) Reserve for funds) .creation operations Amount carried forward for the account of profits and losses Annex No. 3 - Statement of the Value of the Company's Liabilities and the Company's Contingency Reserve for Life Insurance Operations at the end of the Fiscal Year ending on …/…/20 Company Remarks Value Description Total Partial Rials Rials Mathematical reserve - Compensation and pendingclaims - reserve By fulfillment By death By liquidation or redemption By withdrawal Annual payments Due grants By deficit Total Reserve for outbound reinsurance - operations Other liabilities (to be stated in - (detail Total: Life insurance general - balance (Article 10 bis of the (Regulation Actuary’s signature

Life insurance contingency reserve - (Article 10 bis of the Regulation) Total liabilities and reserves Annex No. 4 Statement of the Value of the Company's Liabilities and Contingency Reserve for Funds Creation Operations at the end of the Fiscal Year ending on …/…/20 Remarks Value Description Total Partial Rials Rials Mathematical reserve by - fulfillment By withdrawal￾By liquidation or redemption Due grants Total Other liabilities (to be stated in - detail)Total liabilities and reserves Actuary’s signature Annex No. 5 Statement of the Value of the Company's Liabilities and Contingency Reserve for General Insurance Operations according to the Law at the end of the Fiscal Year Ending on …/…/20 Type of Insurance Provision for compensation under Provision for risks that did not occur settlement Total technical reserves to be formed under the Law Total (1) premiums (direct and local (inbound Total (2) local outbound reinsurance (3) Net (1- (2 (4) 45% of the net for the fiscal year 100% (5) for the following years for the longterm policies (6) Total ((4+5 Total (7) pending compensation (direct and (local inbound To be (8) redeemed of local reinsurance Net (9) pending claims ((7-8 10) Maximum 10% of the net compensation under settlement Liability .1 insurance 2. Marine,air and cargo :insurance a. Marine cargo ((merchandise b. Air cargo ((merchandise c. Land cargo

d. Vessels’ hulls e. Aviation insurance Motor .3 vehicle insurance Financial .4 loss insurance Personal .5 accident insurance Property .6 insurance Other types .7 of insurance Total Annex No. 6 Statement of the Value of the Company's Funds Allocated in accordance with the law to meet its Obligations towards Policyholders at the End of the Fiscal Year ending on …/…/20 Nominal Number Description Value Market Rate Place of Value Deposit Remarks Market Book Total Partial Total Partial Real .1 .estate Loans .2 secured by insurance .policies Loans with .3 other collaterals (to be stated in .(detail .Securities .4 a.Sultanate government .bonds b. Bonds secured by the .government c. Other bonds (in .(detail d.Shares in

national .Companies e.Shares in foreign Companies .((in detail Fixed cash .5 deposits in the Housing .Bank Fixed cash .6 deposits in .other banks Current .7 accounts with banks within 25% of these accounts at the end of the fiscal .year Grand Total :Remarks After publicly stating each of the life insurance operations (including industrial insurance), the -1 .funds creatio (if any) (Article 61/c of the Law), and the general insurances, each separately A certificate from the actuary shall be attached stating that the loans on life insurance - 2 .policies are within the limits of the redemption values of these policies The full names of the securities shall be listed according to their names mentioned in the -3 official price bulletin of the stock market (if any) or according to the name of the Company .whose shares are owned by the Insurance Company Annex No. 7 Statement of the Real Estate that are Part of the Company's Funds Allocated in accordance with the law to meet its Obligations towards Policyholders at the End of the Fiscal Year ending on …/…/20 Company Address of Real Estate p.37]Data of real estate and the 4] Company’s ownership of real estate Total RealEstate Book Value Buildings’ Depreciation n Remarks Number of Annotation Date of Annotation on Office of Annotation Value at the beginning of the Year before Depreciation Additions during the Year Rejections during the Year Value at the end of the Year before Depreciation :Remarks

After a statement on real estate allocated for life insurance operations (including industrial -1 .insurance), funds creation, and general insurances separately .Only stating the data of the real estate ownership Contract that was allocated during the year -2 Annex No. 8 Budget and Final Accounts at the End of the Fiscal Year ending on …/…/20 Company Liabilities Assets Previous Description Current Year Year Previous Description Current Year Year :Investments Rials Rials Real estate - Securities: (a￾detailed statement thereof to be (attached Government - bonds Bonds - secured by the government Other bonds - Shares in - national Companies Shares in - other Companies :Loans Secured by - life insurance policies Secured by - funds creation policies With other - collaterals Fixed cash deposits in the Housing Bank (for collateral) -For the life and funds Paid-up capital Rials or for the) foreign Company, current account of the main (headquarters Legal and general reserves (to be stated in detail) Shareholders rights Contingency - reserve Provisions for life insurance and funds creation Mathematical reserve Compensation and pending claims reserve Provisions for general insurance Provision for risks that did not occur[5 [p.37 Compensation and pending claims reserve Provisions: Provision for Rials

c r e a tio n g r o u p

F o r t h e g e n e r al insurance group Investments C a s h in h a n d

a n d a t b a n k s C u r r e n t

a c c o u n t s wit h b a n k s D e b t o r s o f in s u r a n c e a n d r ein s u r a n c e o p e r a tio n s R e c eip t s

u n d e r c olle c tio n C u r r e n t

a c c o u n t s o f t h e in s u r e d L o c al - insurance and reInsurance Companies Foreign insurance and reInsurance Companies (current account) Insurance and reInsurance Companies (reserve funds for reinsurance operations) Insurance and reInsurance Companies (debit balances for reinsurance agreements) Debtors and other debit balances Agents and producers Due revenues, investments and interests Debtors and current debit accounts Advance payments and other debit balances Other assets d e p r e cia tio n F o r r e al e s t a t e a n d c o n s t r u c tio n s F o r t r a n s p o r t a tio n m e a n s F o r o ffic e f u r nit u r e a n d e q uip m e n t F o r t a x e s F o r d o u b t f ul d e b t s F o r t h e f all o f s e c u ritie s’ prices For end- of service benefit For foreign exchange spreads For legal claims and obligations For premiums under collection and cancellations For other production development (To be stated (in detail Creditors of insurance and reinsurance operations Local insurance and reInsurance Companies Foreign insurance and reInsurance Companies (commercial account) (Reserve for reinsurance operations) Insurance and reInsurance Companies Insurance and reInsurance Companies (credit balances for reinsurance agreements) Creditors and credit balances Taxes Agents and producers Creditors and

Transportation means Office furniture and equipment Total assets current credit accounts Entitlements and other credit balances Total assets A budget for the life insurance group, and the general insurance group shall be submitted .separately in addition to the consolidated budget Annex No. 9 Account of Profits and Losses for the Fiscal Year ending on …/…/20 Liabilities Assets Previous Description Current Year Year Previous Description Current Year Year Carried Rials Rials forward from the accounts of revenues and expenses (to be stated in detail) Provisions For depreciation (to be stated in detail)For the fall of securities’ prices and other investments For premiums under collection and cancellations - For the life group -For the general insurance group For doubtful loans and debts For currency spreads For legal claims For taxes For other obligations Due interests Expenses of previous years Returned revenues from previous years Capital losses (to be stated in detail) Other expenses Distributable Carried Rials forward from the accounts of revenues and expenses Life group Ordinary life branch[6 p.37] Industrial insurance branch General insurance group Liability insurance Marine cargo insurance (Merchandise) Air cargo insurance (Merchandise) Land cargo insurance Vessels’ hulls insurance Aviation insurance Motor vehicle insurance Financial loss insurance Personal accident insurance Property insurance Other types of insurance Net income of unallocated investments (to be stated in detail) Capital profits (to be stated in detail) Rials

surplus (net (profit Revenues of previous years and miscellaneous revenues Annex No. 10 Profit Distribution Account for the Fiscal Year ending on …/…/20 Company Debit Side Credit Side Liabilities Assets Previous Description Current Year Year Previous Description Current Year Year Account of Rials Rials carried forward profits (at the beginning of the period) Net profit or loss carried forward from the account of profits and losses Carried Rials forward to the legal reserve Carried forward to the contingency reserve Board of Directors remuneration Profits suggested for distribution Other distributions Account of carried forward profits (Profit/loss) (at the end of the (period Rials In the event of a deficit in the contingency reserve, it shall be taken into account and included (*) .in the notes and details in the financial statements Annex No. 11 Revenue and Expenses Account for the Life Insurance Branch for the Fiscal Year ending on …/ …/20 Company Debit Side Credit Side Liabilities Assets Previous Description Current Year Year Previous Description Current Year Year Compensation Rials Rials paid and under settlement By fulfillment By death Liquidation or Reserve (at the Rials beginning of the period) Total premiums[8 p.37] (including Rials

redemption Withdrawal Annual payments Annual grants Grants used in the reduction of premiums Pensions Deficit Share of reinsurers Net Currencies and production costs paid Administrative and general expenses Other expenses (To be stated in detail) Provisions Provision for end-ofservice benefit Provision for real estate depreciation Other provisions (To be stated in detail) Reserve (at the end of the period) Surplus subscription and inbound reinsurance subscription premiums and outbound reinsurance[9 p. 37] Net premiums Commissions collected from reinsurers Net investments’ revenues Other revenues Fees for issuingand amending capital gains policies (for depreciation and sale of assets) Other (To be stated in detail) Deficit Note: Industrial insurance operations - if any shall be included in the revenues account above Annex No. 12 Revenue and Expenses Account for the General Insurance Branch for the Fiscal Year ending on …/…/20 Liabilities Assets Previous Description Current Year Year Previous Description Current Year Year Paid Rials Rials compensation: Total Share of reinsurers Net Currencies and production costs Administrative and general expenses Provisions Provision for end-ofservice benefit Provision for Obligations of Rials the Company towards Policyholders at the Beginning of the Year Provision for risks that did not occur Provision for outstanding claims Premiums reserve Outbound Rials

depreciation (To be stated in detail) Other provisions (To be stated in detail) Obligations of the Company towards Policyholders at the End of the Year Provision for risks that did not occur Provision for outstanding claims Surplus reinsurance Net premiums Commissions collected from reinsurers Net investment proceeds Other revenues Fees for issuingand amending capital gains policies (for depreciation and sale of assets) Other Deficit (to be stated in detail accordingto Note If the Company also carries out such operations abroad, it shall provide these statements :under the following titles .a- Operations inside the Sultanate .b- Operations outside the Sultanate .c- Total Annex No. 13 Statement of the Distribution of Premiums for Ordinary Life and Industrial Insurance during the Fiscal Year ending on / /20 Company Funds Creation Total Collective Individual Policies Description Industrial Ordinary Direct premiums Inbound subscription premiums Local inbound reinsurance Inbound foreign reinsurance Total (a) Less Outbound subscription premiums Local outbound reinsurance Foreign outbound reinsurance Total (b) Net % Rials

p Annex No. 14 Company Statement of the Distribution of Premiums for General Insurance according to the Insurance Branches during the Fiscal Year ending on / /20 Insurance Branches Description Liability insurance Motor Marine,airand cargo insurance vehicle insurance Financial loss insurance Personal accident insurance Property insurance Marine Remarks cargo merchandise () Air cargo merchandise () Land cargo Vessels’ hulls Aviation insurance Issuances -- Inbound subscription (+) - Outbound subscription (-) Direct premiums - Local inbound reinsurance - Inbound foreign reinsurance Total inbound premiums (a) Local outbound reinsurance - Obligatory - Conventional

• Optional and mutual Total local outbound reinsurance Foreign outbound reinsurance - Conventional
• Optional Total foreign outbound reinsurance Total outbound reinsurance (b) Net premiums ((a) - (b Rials % Rials % Rials % Rials % Rials % Rials % Rials % Rials % Rials % Rials After statingthe premiums for the issuances, for marine and air insurance on goods imported into the Sultanate and another for goods (+) .exported from it abroad Annex No. 15 Statements related to Outbound Reinsurance Operations - Basic Conditions for the Outbound Reinsurance Agreements for 20 Branch Type of Agreement Retention limit (maximum

Branch Type of Agreement Retention limit (maximum limit) Maximum reinsurers’ liability Reinsurance commission: Not mutual Mutual Other deductions (To be stated in detail) Profits commission Rate of administrative expenses Commission rate: Rate of net profits oraccordingto profitability oraccordingto loss rate Period of carryingforward the loss Interest on reserves Second - Non-relative Agreements Branch Type of Agreement First Segment Original retention limits Priority Maximum reinsurers’ liability Average annual premium Minimum annual premium Number of times of returningthe insurance amount to its original Additional premium for the same Followingsegments (to be stated apart) Maximum reinsurers’ liability Average annual premium Minimum annual premium Number of times of returningthe insurance amount to its original Additional premium for the same Annex No. 16 Statement of the Funds and Obligations of Insurance and Reinsurance Company Abroad Statement of the Total External Obligations of the Company at the End of the Fiscal Year Ending on …/…/20 Net Obligation forExternal Branches and Agencies Description Insurance Branches First - Life insurance operations Second: General insurance operations Total Rials Note: The Company shall state how it calculated these obligations b) A statement of the Company’s total funds abroad (for external branches and agencies) at the) end of the fiscal year ending on / /20 Value Description Real estate -1 Securities -2 Loans -3 Deposits at banks -4 Current accounts with banks -5 Rials Total Annex No. 17 Acknowledgment for the Annual Fees referred to in Article 59 of the Insurance Companies Law promulgated by Oman Sultani Decree No. 12/1979 :Company’s name I, the undersigned, in my capacity as acknowledge that the total premiums collected for the fiscal year ending on December 31, 19 amounting to Baisa Rial ( ) enclosing a receipt of payment of Baisa Rial which is the value of annual fees due for the above-mentioned premiums. If it was found that the collected premiums included in the revised income and

expenses account, submitted in accordance with Article 23 of Oman Law No. 12/1979 exceed the amount indicated above, I undertake to pay, when submitting that account the increase in the .due fee Made on …/…/19 Signature (Annex No. 18 (Regulation Article 23 Rules for Evaluating the Assets of Insurance Companies and Estimating their Liabilities :First: Definitions Solvency limit: The minimum capital solvency of an Insurance Company to measure and protect .its ability to meet its obligations towards policyholders when due Risk-based capital: Adequacy of the Insurance Company's financial resources to enhance the .protection of insurance policyholders by linking capital adequacy to the Company's risks :Second: Calculation of Solvency Limit :The solvency limit shall be calculated according to the following equation X100 Total available capital Total required capital The Insurance Company shall calculate its solvency limit separately for each activity it is licensed to practice based on its balance sheet in accordance with the insurance proceeds, and the .Company shall have a solvency limit not less than (100%) at any time :Third: Available Capital The total available capital in the Insurance Company shall consist of the sum of the basic -1 available capital with the supplementary available capital, less the assets stipulated in paragraph (4) of this Clause, provided that their sum is not less than the Company’s minimum capital .determined legally before deduction :The basic available capital shall consist of the following sources -2 .a- The paid-up capital less the net treasury shares, if any .b- Head office accounts .c- Shares issued at a premium .d- Preferred right shares .e- Public and private capital reserves .f- Legal reserve .g- Contingency reserve .h- Accumulated profits or losses

.i- Shares issued at a discount .j- Any other sources that the Authority deems necessary to include :The supplementary available capital shall consist of the following sources -3 .a- Subordinated loans or subordinated debts .b- Re-evaluation reserve for fixed operating assets .c- Fair value reserve .d- Foreign currency reserve e- Any other sources that the Authority deems necessary to include In all cases, the Insurance Company shall consider the value of the available supplementary capital source (80%) eighty percent if the sum of the values is positive, and (100%) one hundred .percent if the sum of the values is negative :The following assets shall be excluded from the solvency limit calculation -4 .a- Reputation, if any .b- Incorporation expenses and other expenses paid in advance, under account or deferred c- Loans, advances and debts owed by others without a material guarantee covering the .same .d- Value of the Company's capital shares included in its assets .e- Value of the loans that the Company guarantees to pay f- Value of doubtful debts unless there is an adequate provision for them in the financial .statements g- Shortage in the market value of the book value of an asset, except for the held-to￾maturity date, unless there is a provision for the decrease in the value of the asset in the .financial statements h- Assets that are mortgaged, under collateral, or pledged, and there are no corresponding obligations with the exception of assets deposited with the Authority to meet the technical .reserves or in case the available credit facilities are not used .i- Deferred tax expenses .j- Deferred acquisition cost of insurance business, including deferred commission k- Any investments, loans or debt balance with a Company that is a related party, except for those receivable for normal insurance business, with the exception of investments in bonds of the relevant party before the date of enforcement of this Regulation until its maturity .date, as well as deposits and balances in local banks l- Amount due from unclassified reInsurance Companies or with a lower classification than .that specified by the Authority m- Invested assets above the maximum limit allowed in accordance with the provisions of .the Investment of the Assets of Insurance and Takaful Insurance Companies Regulation .n- Fixed operating assets

.o- Any other assets that the Authority deems necessary to exclude :Fourth: Required Capital The required capital shall consist of “Minimum Adequate Capital” or “Risk Based Capital” .whichever is higher :The Insurance Company shall maintain the minimum capital adequacy, as follows Type of Licensed Activity S Minimum capital adequacy in Omani Rials .four million (4,000,000) General insurance 1 .one million (1,000,000) Life insurance 2 .two million (2,000,000) Health insurance 3 The “risk-based capital” shall bedetermined on the basis of the Insurance Company’s balance :sheet for each of the following types of risks .a- Capital adequacy risks .b- Capital adequacy credit risk .c- Capital adequacy market risk .d- Capital adequacy operational risk e- Risks of insurance obligations for capital adequacy, if the Company exercises general insurance :or health insurance activities, which are .Risks of premiums obligations due to capital adequacy -1 Risks of claims obligations due to capital adequacy -2 f- Risks of insurance obligations for capital adequacy, if the Company exercises life insurance :activities .Risks of obligations due to capital adequacy -1 Risks of insured amound due to capital adequacy -2 .g- Capital adequacy disasters risk .h- Any other risks determined by the Authority The Insurance Company shall calculate the risks stipulated in this Article in accordance with the .Annexes approved by the Authority :Fifth: Solvency Limit Report The Insurance Company shall calculate the solvency limit at the end of its fiscal year of each -1 .year, according to the form prepared by the Authority The Insurance Company shall submit a report on the solvency limit audited by the external -2 Auditor to the Authority, provided that it includes the details related to calculating the solvency limit along with the insurance proceeds, at least thirty (30) days before the annual general meeting of the Company if it is an Omani Company, or not later than the end of February of each .year if the Company is a branch of a foreign Company, or if the Authority requests it at any time Annex 19 - Deleted

(Annex 20 Regulation Article (34 bis Statement of the Insurance Amounts and the Limits of the Insured’s Liability for Major Risks, which are applied when Implementing the Article of the Implementing Regulation of the Insurance Companies Law set out above Insurance Amount Liability Limits 100% General Insurance Branch 1 Fire (material damage and consequential losses) per risk - A. O Risk 5000000 2 Seatransportation ofgoods (bulk shipments) for each individual risk - Individual Declaration 1000000 3 Vessels’ hulls (except for small boats and leisure boats, which are agreed upon) per risk - A. O Risk 2000000 100000 Vehicles 4 5 Personal accidents - per individual - per group of persons – - A. O Person - Per known Accumulation 1000000 100000 6 Cash and their transfer – in safes or other A. O Risk/Transit 1000000 7 Burglary: In any location - A. O Location 1000000 8 Breach of trust – per person - A. O Person

• Per accident - A. O Event 300000 150000 9 All risks/Jewelry/Gems/Personal Baggage - per item
• A. O Item 250000 10 Glass breaking: In any location - A. O Location 250000 11 Liability towards the third party/public - per accident - A. O Accident 1000000 12 Workers’ compensation - per accident - A. O Accident 500000 13 Engineering(except forall Contractors risks) - per project .- A. O project 1000000 14 All Contractors risks - per project .- A. O project 1000000 15 Any type of insurance that does not fall under the previous names, includinglife insurance All life insurance amounts What is agreed upon and notified to the Authority otherwise