Regulatory Alerts2024-04-22
Added · Updated
Draft Decision on Professional Liability Insurance Contract for Insurance Agents
The Central Bank of Jordan mandates that corporate insurance agents obtain professional liability insurance covering negligence, errors, or omissions for themselves, their management, and employees. The minimum coverage amount is calculated as twice the agent's previous year's production value, rounded up to the nearest 25,000, with a floor of 50,000 Jordanian Dinars, and a single incident payout capped at 20% of the total annual limit. The deductible cannot exceed 5% of a single claim value, and the policy term must be at least one year. Agents must submit renewal copies to the Central Bank within two weeks, report cancellations or rejected claims immediately, and regularize their status by September 1, 2024.
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