Regulatory Alerts2021-09-26
Added · Updated
Central Bank of Jordan Circular on Disclosure of Commissions and Fees by Insurance Companies and Service Providers
The Central Bank of Jordan mandates that insurance companies and insurance service providers disclose all commissions or fees associated with services to their clients, regardless of whether these costs are borne by the client or the insurer. This requirement is issued under Article 83(b) of the Insurance Activities Regulation Law No. 12 of 2021. The circular warns that legal measures will be taken against entities found in violation of this disclosure obligation.
In the Name of Allah, the Most Gracious, the Most Merciful
[Logo of the Central Bank of Jordan]
Reference No.: 3/17/1554 Date: 9/1/1443 Corresponding to: 18/8/2021
Dear Esteemed Insurance Companies, Dear Esteemed Insurance Service Providers,
In light of the Central Bank of Jordan's commitment to ensuring that all activities and practices of insurance companies and insurance service providers align with the provisions of the Insurance Activities Regulation Law No. (12) of 2021 and the regulations, instructions, and decisions issued pursuant thereto, and in accordance with the provisions of Clause (b) of Article (83) of the aforementioned Law, which states as follows:
"b- Insurance companies and insurance service providers are obligated to disclose to their clients any commissions or fees associated with the service provided, whether borne by the client or the insurance company."
I urge you to emphasize the necessity of complying with the above provisions, under penalty of taking legal measures against insurance companies and insurance service providers found in violation in this regard.
Please accept the assurances of our highest respect,
The Governor Dr. Ziad Frieze