Regulatory Alerts2023-09-12
Added · Updated
Central Bank of Jordan Decision on Non-Exclusive Insurance Agents and Defined Benefit Contracts
The Central Bank of Jordan prohibits non-exclusive insurance agents from licensing or conducting activities in ten specific insurance branches, including locomotive, aircraft, ship, cargo, life installments, investment-linked, permanent health insurance, and collective pension fund management. The decision imposes premium caps on non-exclusive agents, limiting annual premiums to 500 Jordanian Dinars and premiums for contracts under three months to 150 Jordanian Dinars. These provisions became effective on September 1, 2023.
In the Name of Allah, the Most Gracious, the Most Merciful
[Logo of the Central Bank of Jordan]
Number: 17 / 2 / 15868 Date: 25 / 2 / 1445 AH Corresponding to: 10 / 9 / 2023 AD
Dear Respected Insurance Agents,
Subject: Non-exclusive legal entity insurance agent's dealings with defined benefit and coverage contracts
Based on the provisions of paragraph (b) of Article (109) of the Insurance Activities Regulation Law No. (12) of 2021 and paragraphs (c) and (d) of Article (4) of the Instructions for Licensing Insurance Agents and Regulating Their Activities and Responsibilities No. (10) of 2023, I hereby decide the following:
A) A non-exclusive insurance agent-production and a non-exclusive insurance agent-issuance shall not be granted a license in the following insurance branches:
- Locomotive and railway bus insurance.
- Aircraft insurance.
- Ship insurance.
- Cargo insurance during transit.
- Aircraft liability insurance.
- Ship liability insurance.
- Life installments insurance.
- Investment-linked insurance.
- Permanent health insurance.
- Management of collective pension funds.
Central Bank of Jordan
B) A non-exclusive insurance agent-production and a non-exclusive insurance agent-issuance shall conduct their activities for insurance contracts whose premiums do not exceed the following:
- The annual premium for an insurance contract shall not exceed 500 Jordanian Dinars.
- The premium for an insurance contract with a duration of less than 3 months shall not exceed 150 Jordanian Dinars.
- The premium cap for an insurance contract with a duration ranging from 3 months to less than one year shall be calculated as a proportion of the annual cap based on the duration.
C) The provisions of this decision shall be effective as of 2023/9/1.
[Signature] Governor Dr. Adel Al-Sharkas
Copy to: Dear Respected Insurance Companies