Central Bank of Jordan Instructions on Professional Conduct and Fair Treatment of Insurance Clients 2025

CENTRAL BANK OF JORDAN
Central Bank of Jordan

Reference No.: 3/17/7845
Date: 1/5/1446 AH
Corresponding to: 5/10/2025 AD

Dear Insurance Companies,
Subject: Instructions on Professional Conduct and Necessary Controls for Insurance Companies to Deal with Their Clients in a Fair and Transparent Manner for the Year 2025

Greetings,

Based on the provisions of paragraph (b) of Article (109) and paragraph (y) of Article (24) of the Insurance Activities Regulation Law No. (12) of 2021, we attach to you "Instructions on Professional Conduct and Necessary Controls for Insurance Companies to Deal with Their Clients in a Fair and Transparent Manner No. (5) of 2025" issued pursuant to the decision of the Board of Directors of the Central Bank No. (76/2025) dated 2025/4/10.

Please accept our highest respect,

The Governor
Dr. Adel Al-Sharkas

Copy/ Jordan Union of Insurance Companies

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Instruction No. (5) of 2025
Instructions on Professional Conduct
and Necessary Controls for Insurance Companies to Deal with Their Clients in a Fair and Transparent Manner Issued by the Board of Directors of the Central Bank pursuant to the provisions of Paragraph (y) of Article (24) and Paragraph (b) of Article (109) of the Insurance Activities Regulation Law No. (12) of 2021

Article	Page Number
Article (1):	2
Article (2):	2
Article (3):	2
Article (4):	3
Article (5):	3
Article (6):	3
Article (7):	4
Article (8):	4
Article (9):	5
Article (10):	6
Article (11):	6
Article (12):	7
Article (13):	10
Article (14):	10
Article (15):	10
Article (16):	11
Article (17):	11
Article (18):	11
Article (19):	11
Article (20):	12
Article (21):	12
Article (22):	12
Article (23):	12

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Article (1): Title
These Instructions are named "Instructions on Professional Conduct and Necessary Controls for Insurance Companies to Deal with Their Clients in a Fair and Transparent Manner for 2025", issued pursuant to the provisions of paragraph (y) of Article (24) and paragraph (b) of Article (109) of the Insurance Activities Regulation Law No. (12) of 2021, and they are effective from the date 2025/4/10.

Article (2): Definitions a- The words and phrases contained in these Instructions have the meanings specified in Article (2) of the Insurance Activities Regulation Law No. (12) of 2021, unless the context or circumstances indicate otherwise. b- For the purposes of these Instructions, "Client" refers to any person to whom the Company is exposed or whose products or services it offers.

Article (3): Insurance Company's Obligations Towards Its Clients The insurance company is obligated to deal with its clients with transparency and fairness, whether this interaction is direct with the insurance company or through any insurance service providers it has contracted with for this purpose. This obligation begins from the pre-contract stage and continues until the termination of the contract and the execution of all obligations arising therefrom and any other insurance services related to the insurance contract. The following must be observed:
a- The client's requirements and needs when developing, marketing, and selling insurance products, and taking adequate measures to mitigate any risks related to selling insurance products or services that do not match the clients' needs. b- Providing the client with accurate, clear, and sufficient information about the insurance contract and the insurance coverage included therein. c- Providing appropriate advice and counseling to the client to enable them to understand the insurance products, services, and coverages offered. d- Collecting only the necessary data to provide the service and clarifying the justification for collecting it if possible, and using such data legally and in accordance with prevailing legislation, while taking all measures and safeguards to ensure data protection and confidentiality. e- Correspondence between the Company and its clients must be properly documented.

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Article (4): Policies
The Board of Directors of the insurance company is obligated to adopt the following policies at a minimum, to be reviewed annually or as needed, and to monitor compliance with their implementation:
1- Claims settlement policy.
2- Data protection and information confidentiality policy in accordance with prevailing legislation.
3- Customer complaint handling policy and necessary procedures for dealing with them.

Article (5): Continuity of Insurance Offer The insurance company is obligated to continue offering the insurance offer provided to the client for the specified period within it. If the period is not specified, it must commit to the offer for a period of (15) days from the date of its submission.

Article (6): Insurance Application a- The insurance company is obligated, when preparing the insurance application form, to do the following:
1- Draft the questions and information in the insurance application form in clear and understandable language, and give the client sufficient time to review it and answer all inquiries clearly.
2- State the importance of providing information related to the subject matter, type, or branch of insurance required in the application form for the purpose of issuing the insurance contract, and warn the client of the necessity to disclose such information and other basic information correctly and fully, and state the legal consequences of non-disclosure or disclosing information that does not reflect reality. 3- It must include all data necessary for risk assessment. 4- Disclose any other services provided by the insurance company separately from insurance services and the cost of providing them. 5- Include in the application form a statement advising the client to keep documents and correspondence between them and the insurance company.

b- The insurance company is obligated, upon receiving the insurance application, to do the following:
1- Verify the completion of filling out the application submitted by the client to conclude the insurance contract and that it is signed directly by the client or their representative.

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2- Obtain the client's confirmation of the information and data provided by them and any additional data within (10) days from the date of obtaining it or becoming aware of it, in case the Company agrees to accept applications submitted on forms other than those it approves. 3- Educate the client on methods and ways to prevent the insured risk or reduce its effects if it occurs. 4- Do not reject an insurance application or a request to renew an insurance contract without justified reason. 5- Adhere to sound technical principles when pricing the insured risk and avoid exaggeration or reduction that negatively affects the Company itself or other insurance companies. 6- Do not discriminate between clients of the insurance company regarding insurance prices, terms, or coverage benefits unless justified; including reasons based on technical or actuarial grounds. 7- Provide the client with a copy of the insurance application immediately after completion of filling it out.

Article (7): Client Solvency Assessment
The insurance company is obligated to adopt internal procedures to assess the client's solvency before selling savings insurance products and investment-linked insurances, and it must include at a minimum the following:
1- Establish a mechanism to assess the client in terms of solvency and the suitable insurance product for them.
2- Establish a clear mechanism for dealing with clients whose financial solvency does not match the insurance product.
3- Effective and continuous supervision of insurance agents and sales staff to enable them to analyze client needs and acceptable risk levels.
4- Maintain records to facilitate the review process of compliance with procedures approved by the Company.

Article (8): Insurance Contract a- The insurance company is obligated, when drafting the insurance contract, to do the following:
1- Use simple and clear language and adhere to accuracy in presenting data in the contract to enable the client to understand its terms and conditions.
2- Do not include in the insurance contract any clause stating that it has the right to modify any contract terms unilaterally without the client's consent.

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3- Include in the insurance contract the sum insured, the premium value, commissions or fees related to the service, whether borne by the client or the insurance company, and any other fees and amounts, and state the deductible (exemption) amount in the contract table or in a prominent place on the first page of the contract. 4- Highlight exclusions and conditions that significantly affect the client's right to the sum insured or compensation and/or that lead to the nullity of the insurance contract in large and distinctive font, and the client must sign next to them to indicate reading and agreement with their content. 5- Fix the following information in life insurance contracts:
a. Cancellation clause. b. Disclosure of returns, whether guaranteed or not.
c. Premium allocation method.
6- Include in the contract the rights and obligations of both parties and the consequences of breaching contractual obligations, in addition to cases allowing contract cancellation and the date and time of payment of dues in case of cancellation. b- If any modification is made to the insurance contract, it is done within endorsements prepared by the insurance company after the insured's approval of this modification. c- The insurance company is obligated to provide the client with a copy of the insurance contract and its endorsements immediately upon conclusion of the contract, while keeping a signed copy by both parties or their legal representatives. d- The coverage note remains in effect before the issuance of the insurance contract until the expiration of the specified period or until the issuance of the insurance contract, whichever is earlier.

Article (9): Renewal of Insurance Contract The insurance company is obligated, when renewing the insurance contract, to do the following:
a- Send a renewal notice to the client via approved communication channels at least one month before the contract expiration date. b- Verify that insurance contract renewal notices include a warning to the client of the necessity to disclose any necessary information or any material change that may affect the insurance company's decision to continue accepting the risk or the prices or terms initially accepted, whether the change occurs after the contract starts or after its last renewal.

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Article (10): Cancellation of Insurance Contract a- The insurance company is obligated, in case of cancelling the insurance contract, to notify the client at least (30) days before the cancellation date, unless otherwise agreed. b- Subject to the provisions of the instructions on life payout policies in effect, the insurance company, in case of cancelling the insurance contract, is allowed to deduct the following from the amount the client recovers:
1- Medical examination expenses if conducted for the client for the purpose of concluding the insurance contract.
2- Any fees, stamps, or any amounts incurred by the Company up to the date of cancellation.
3- Changes in the investment unit price when calculating the amount the client recovers, for investment-linked life insurance contracts. c- The insurance company is obligated, in case the insurance contract expires for any reason, to do the following:
1- Refund any premiums or expenses due to the insured or beneficiary within a period not exceeding (30) days from the date of expiration.
2- Provide all necessary documents and information to the insured or beneficiary upon their request.

Article (11): Claims Submission and Settlement a- The insurance company is obligated to do the following:
1- Use clear and simple language in the claim submission form it approves and clearly specify the information required to be included by the claimant.
2- Adopt special forms to determine all documents and papers necessary for claims settlement according to the type of insurance, providing them free of charge, and clarifying all procedures and available means for this purpose, including the possibility of appointing a loss adjuster. 3- Guide the claimant to fill out the claim form and the necessity of obtaining confirmation of the Company's review of the claim and submission of the claim.

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4- Verify that employees responsible for claims settlement have appropriate expertise and qualifications and continue their training as needed. b- The insurance company is obligated, when settling claims, to do the following:
1- Respond promptly upon receiving the claim and verify the completeness of necessary documents, papers, and information, and inform the claimant of any deficiencies to complete them.
2- Inform the claimant of the rejection or acceptance of the claim via approved communication channels, committing to clarify the reasons for rejection in writing.
3- In case of accepting the claim and agreeing on its amount; the insurance company is obligated to provide the claimant with details clarifying the compensation value, calculation basis, and expected receipt date. 4- Inform the claimant of updates regarding their claim upon request. 5- Do not have the client sign a release of the Company's liability unless the agreed compensation amount is paid. c- The insurance company bears full responsibility for the coverages included in the insurance contract and settling the obligations arising therefrom, regardless of the extent of coverage within reinsurance arrangements or the reinsurer's recognition thereof or the reinsurer's delay in paying their share. d- The insurance company must not deduct any amount from the due compensation without legal grounds. e- The insurance company must comply with implementing final judicial rulings related to the insurance contract within (7) working days from the date they become final.

Article (12): Complaint Handling
The insurance company is obligated to do the following:
a- Receive and handle complaints from clients, observing the following:
1- Verify the effectiveness of the customer complaint handling policy in enabling the Company to conduct its business with responsible professional behavior to achieve the best interest of clients at all stages of their interaction with the insurance company, and maintain internal work procedures for implementation. 2- Adopt appropriate mechanisms for receiving complaints through the headquarters, all branches, and its sales points, in addition to complaints received from the Central Bank.

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3- Do not impose any limitations or conditions that hinder the client's right to file a complaint or subject it to any commissions or fees.
4- Inform clients of their right to file a complaint through the following:
a. Providing booklets and brochures at the Company's headquarters and branches, or through the Company's website, as well as social media channels if available. b. Informing clients who cannot read or write of their right to file complaints.
c. Providing necessary means and tools to enable clients to submit complaints, including the following means:

• Regular mail.
• Email and the Company's electronic channels.
• Free phone line (if available), with calls being recorded and the client must be notified of this.
• Personal attendance.
• Complaint boxes located at the headquarters and all insurance company branches.
• Fax.
  b- Adopt a system or electronic register to record complaints received, observing the following:
  1- Record complaints in a manner that ensures assigning a reference number to each complaint, which is used in all correspondence between the insurance company and the complainant, as well as in any correspondence with the Central Bank regarding the complaint. 2- Keep the complaint in a dedicated register, providing the client with a confirmation of receipt, which must include the following information:
• The complaint reference number.
• The complainant's full name.
• The complainant's contact information.
• The subject of the complaint.
• The date of complaint receipt.
• The phone number or email address of the department responsible for following up on the complaint.
  3- Record all communications, procedures, and documents related to the complaint in the system or electronic register.

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4- Keep all information regarding customer complaints entered and stored in the system or electronic register for a period of (5) years from the date of its completion at least, or according to retention periods stipulated in relevant legislation (if any), whichever is longer. c- Establish a specialized regulatory unit responsible for dealing with and handling customer complaints, commensurate with the Company's business volume, number and diversity of products and services, and number of complaints, while adhering to the following:
1- Staff it with employees and work on training and qualifying them to deal with customer complaints efficiently and effectively, verifying their adequate knowledge of all services and products provided by the insurance company, as well as familiarity with prevailing legislation related to policyholders' and beneficiaries' rights. 2- Deal with all complaints without discrimination or distinction between clients and/or insureds and beneficiaries, clearly and effectively, to achieve justice for clients and/or insureds and beneficiaries. 3- Appoint a liaison officer with the Central Bank and a substitute from among the unit's employees, specify communication means with them, and inform the Central Bank of any modification or change thereto. 4- Do not link the unit to the service of receiving and responding to customer inquiries regarding the Company's services and products. d- Follow up on and study complaints as follows:
1- Evaluate the complaint, handle it, and make the appropriate decision regarding it, and notify the client of the decision within (10) working days from the date of receiving the complaint and completing all necessary documents for consideration. This period may be extended by a similar period if the nature of the complaint requires it, and the complainant must be informed of the reasons for this extension. 2- Notify the complainant of the final result of the submitted complaint via approved communication channels, in simple and easy language that allows no ambiguity or interpretation and does not contain specialized technical terms unintelligible to the complainant. 3- Conduct a comprehensive periodic analysis of all incoming customer complaints to identify complaints that may affect the reputation and financial status of insurance, determine the frequency of such complaints, and then begin taking corrective and preventive measures to avoid their occurrence in the future. 4- The unit submits a periodic report to the Compliance Department in the insurance company and a copy to senior management, indicating customer complaints against the insurance company, showing the number of incoming complaints, the number of complaints resolved, and the value of compensation paid, and providing the Central Bank with an annual report regarding them. 5- Include a summary of aggregated complaint evaluation results in its annual report and on its website, indicating the number of incoming complaints and complaints settled according to insurance branches.

Article (13): Filing a Complaint with the Central Bank The client may file a complaint with the Central Bank after referring to the insurance company in the following cases:
a- The insurance company's response to the complaint was not convincing. b- The insurance company did not respond to the client within the maximum period specified in these Instructions. c- The insurance company refused to accept the complaint.

Article (14): Conflict of Interest
The insurance company is obligated to take adequate and appropriate measures to avoid any potential conflict between the interests of clients and its own interest, as follows:
a- Verify that the incentive and reward policies it adopts for its employees do not lead to inappropriate sales or behavior that may harm the client's interest or provide non-neutral and independent advice to them. b- Work on properly managing identified conflict of interest cases and disclosing them according to policies approved by the insurance company.

Article (15): Insurance Company's Website
The insurance company is obligated to do the following:
a- Ensure that all information related to products and services provided through its website is displayed clearly, accurately, and updated. b- Adhere to transparency in educating and informing clients about the nature of operations conducted through electronic means, stating the risks of these operations and the obligations arising therefrom, while taking into account setting clear guidelines and instructions regarding this.

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Article (16): Advertising and Promotion
Insurance companies are obligated to comply with the prevailing instructions issued by the Central Bank regarding financial consumer protection to the extent applicable to them, including controls on advertising for products and services and prizes provided by financial and banking service providers.

Article (17): Clients with Disabilities
Insurance companies are obligated to comply with the instructions issued by the Central Bank regarding financial consumer protection to the extent applicable to them, including the instructions on financial consumer protection for clients with disabilities in effect.

Article (18): Business Continuity Plan
The business continuity plan to address events that may negatively affect the insurance company's business must include at a minimum the following:
a- Adherence to transparency and fairness in dealing with clients. b- Providing an alternative and suitable mechanism to ensure business continuity, not delaying the provision of insurance services, and fulfilling the rights of insureds and beneficiaries.

General Provisions

Article (19)
For the purposes of these Instructions, the following are considered approved communication channels:
1- Written communication.
2- Email and the Company's electronic channels.
3- SMS via mobile phone.
4- The electronic account created for the client on the Sandu application.
5- Any other means approved by the Governor for this purpose.

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Article (20)
The insurance company is obligated to do the following:
a- Preserve any money or rights it holds on behalf of the client. b- Maintain sufficient records to prove its compliance with the provisions of these Instructions, including a statement of services the insurance company refused to perform or declined to accept or renew, clarifying the reasons for refusal or decline, and operations it terminated due to the client's breach of obligations. c- Publish these Instructions on the Company's website.

Article (21) a- The insurance company is obligated to align its status with the provisions of these Instructions within (90) days from the date of entry into force of these Instructions. b- Despite what is stated in paragraph (a) of this Article, the insurance company is obligated to align its status by no later than 2026/4/30 regarding the adoption of a system or electronic register to record complaints and the establishment of a specialized regulatory unit responsible for dealing with customer complaints, in implementation of the provisions of paragraphs (b and c) of Article (11) of these Instructions.

Article (22)
The Governor is authorized to issue necessary decisions to implement the provisions of these Instructions.

Article (23)
The Instructions on Professional Rules and Ethics for Insurance Companies No. (9) of 2004 and its amendments are repealed.

Board of Directors of the Central Bank