Instructions No. (8) of 2004 Regarding the Licensing of Loss Adjusters and Surveyors and the Organization of Their Work

Instructions No. (8) of 2004
Instructions for the Licensing of Loss Adjusters and Surveyors and the Basis for Organizing Their Work and Amendments* Issued by the Board of Directors of the Insurance Authority

Pursuant to the provisions of paragraph (Y) of Article (23), paragraph (A) of Article (24), and paragraph (B) of Article (108) of the Insurance Activities Regulation Law No. (33) of 1999 and its amendments

Article (1):
These instructions shall be known as the "Instructions for the Licensing of Loss Adjusters and Surveyors and the Basis for Organizing Their Work for the Year 2004" and shall be effective from the date of their approval by the Board of Directors of the Insurance Authority and publication in the Official Gazette.

Article (2):
A- The words and phrases contained in these instructions shall have the meanings assigned to them in Article (2) of the Insurance Activities Regulation Law No. (33) of 1999 and its amendments, unless the context indicates otherwise.
B- For the purposes of these instructions, the following words and phrases shall have the meanings specified below:

---

• These instructions were published in the Official Gazette on December 30, 2004, in Issue No. (4689) on page (5835). These instructions were also amended by Instructions No. (5) of 2008, Amended Instructions for the Licensing of Loss Adjusters and Surveyors and the Basis for Organizing Their Work No. (8) of 2004, published in the Official Gazette on January 4, 2009, in Issue No. (4945) on page (6599); Instructions No. (11) of 2010, Amended Instructions for the Licensing of Loss Adjusters and Surveyors, published in the Official Gazette on May 2, 2010, in Issue No. (5028) on page (2517); and Instructions No. (1) of 2016, Amended Instructions for the Licensing of Loss Adjusters and Surveyors, published in the Official Gazette on March 16, 2016, in Issue No. (5387) on page (1530).
  After the cancellation of the Insurance Authority by the Government Institutions and Departments Restructuring Law No. (17) of 2014, all powers of the Board of Directors of the Insurance Authority were transferred to the Minister of Industry, Trade and Supply, and all powers of the Director General of the Insurance Authority were transferred to the Secretary General of the Ministry of Industry, Trade and Supply.

Law: The Insurance Activities Regulation Law in force.
Loss Adjuster: The person licensed by the Authority pursuant to the provisions of these instructions and decisions issued thereunder to practice loss adjustment activities for insurance purposes.
Surveyor: The person licensed by the Authority pursuant to the provisions of these instructions and decisions issued thereunder to practice surveying activities for insurance purposes.

C- For the purposes of these instructions, the terms "Loss Adjuster" and "Surveyor" refer to both natural and legal persons acting as loss adjusters or surveyors, as the case may require, unless otherwise specified.

Conditions and Procedures for Licensing Loss Adjusters and Surveyors

Article (3):
Subject to the provisions of Article (16) of these instructions:
A- No person shall practice the activities of a loss adjuster or surveyor in the Kingdom unless they obtain a license from the Authority in accordance with the bases and conditions specified in these instructions and decisions issued thereunder.
B- A company shall not deal with any person who does not hold a license from the Authority to practice loss adjustment or surveying activities for insurance purposes.

Article (4):
A- Loss adjustment activities for insurance purposes include the following:
1- Inspection of damages.
2- Investigation into the cause of the loss and surrounding circumstances, estimation thereof, and consideration of whether it is covered by the insurance policy.
3- Determination of the amount of compensation to be paid in accordance with the conditions and terms of the insurance policy.

B- A loss adjuster may practice the surveying activities specified in paragraph (A) of Article (5) of these instructions, provided that they do not perform loss adjustment activities regarding properties they have surveyed for insurance purposes prior to the occurrence of damage or loss. C- For the purposes of these instructions, activities performed by a person who is requested, due to their expertise and technical knowledge, to provide technical assistance to a loss adjuster are not considered loss adjustment activities requiring a license.

Article (5):
A- Surveying activities for insurance purposes include the following:
1- Inspection of properties to be insured, estimation of their value, and determination of the maximum expected financial loss in the event of the risk.
2- Submission of proposals regarding improving risk prevention measures and preserving the insured property.
B- For the purposes of these instructions, activities performed by a person who is requested, due to their expertise and technical knowledge, to provide technical assistance to a surveyor when evaluating properties to be insured are not considered surveying activities requiring a license.

Article (6):
A- Subject to the provisions of paragraphs (B) and (C) of Article (7) of these instructions, a loss adjuster or surveyor shall be licensed according to the insurance branches of the type of insurance for which a license is sought, as listed in the instructions issued by the Authority for this purpose, provided that they submit proof of having the required expertise in each branch of insurance for which a license is sought. B- A natural person shall not be granted a license to practice loss adjustment or surveying activities that combines life insurance activities with general insurance activities. C- No person shall be granted a license that combines loss adjustment or surveying activities, pursuant to these instructions and decisions issued thereunder, with the activities of an insurance agent, insurance broker, reinsurance broker, actuary, insurance consultant, or any of the supporting insurance service providers, pursuant to the provisions of the relevant instructions and decisions. D- For the licensing of a legal person as a loss adjuster or surveyor, it is required that their General Manager or any of their managers, and all persons performing loss adjustment or surveying activities on their behalf, be licensed in accordance with the provisions of these instructions and decisions issued thereunder.

Article (7):
A- The following conditions must be met by the license applicant:
1- Hold a university degree, a diploma, or an insurance certificate from a specialized insurance institute accredited by the Authority by a decision issued by the Director General for this purpose.
2- Meet the conditions stipulated in Article (31) of the Law.
3- Be dedicated to working as a loss adjuster or surveyor in their own office.
4- Have enrolled, during the three years preceding the date of submitting the application specified in Article (8) or Article (9) of these instructions, as applicable, in specialized courses in loss adjustment and/or surveying activities lasting no less than fifteen hours, or a specialized course in insurance activities lasting no less than fifteen days. 5- Not have had their license or registration for practicing loss adjustment, surveying, insurance agency, insurance brokerage, reinsurance brokerage, actuarial, insurance consulting, or any supporting insurance services cancelled or suspended as a disciplinary penalty, or not have met the conditions for re-licensing or re-registration from the authority that suspended or cancelled their license. 6- Pass the assessment conducted or approved by the Authority for this purpose. B- In addition to the conditions stipulated in paragraph (A) of this Article, the applicant for a loss adjuster license must have any of the following practical experiences:
1- Practiced loss adjustment activities for insurance purposes with a legal person licensed to work in loss adjustment for insurance purposes for a period of no less than five years, provided that the Ministry is notified in writing by the legal person upon their appointment for the purpose of future licensing if desired. Experience years shall be calculated subsequently for licensing purposes according to the records held by the Directorate concerned with licensing loss adjusters and surveyors in the Insurance Department of the Ministry of Industry, Trade and Supply. 2- Practiced loss adjustment activities with a local insurance company or a foreign insurance company registered and licensed outside the Kingdom for a period of no less than six years in the branches for which licensing is sought. 3- Have comprehensive knowledge in the field of loss adjustment activities indirectly from a responsible position as General Manager of an insurance company, Deputy General Manager of an insurance company, or Technical Manager of an insurance branch for a period of no less than nine years. C- In addition to the conditions stipulated in paragraph (A) of this Article, the applicant for a surveyor license must have any of the following practical experiences:
1- Practiced surveying activities for insurance purposes with a legal person licensed to work in surveying for insurance purposes for a period of no less than five years, provided that the Directorate concerned with licensing loss adjusters and surveyors in the Insurance Department of the Ministry of Industry, Trade and Supply is notified in writing by the legal person upon their appointment for the purpose of future licensing if desired. Experience years shall be calculated subsequently for licensing purposes according to the records held by the Ministry. 2- Practiced surveying activities with a local insurance company or a foreign insurance company registered and licensed outside the Kingdom for a period of no less than six years in the branches for which licensing is sought. 3- Have comprehensive knowledge in the field of surveying activities indirectly from a responsible position as General Manager of an insurance company, Deputy General Manager of an insurance company, or Technical Manager of an insurance branch for a period of no less than nine years.

Article (8):
The license application shall be submitted according to the form prepared for this purpose, including the data and attached with the following documentary evidence:
A- Name, nationality, and address of the license applicant.
B- Two personal photographs.

C- Type and branches of insurance in which loss adjustment or surveying activities are to be practiced.
D- A written declaration confirming the fulfillment of the conditions stipulated in items (2) and (5) of paragraph (A) of Article (7) of these instructions, and undertaking to inform the Authority if these conditions are not met during the year, according to the form prepared for this purpose. E- A copy of the passport or national ID card. F- A certified copy of academic qualifications. G- A certified copy of practical experience certificates. H- A copy of training course certificates. I- A written declaration that all data and documents submitted in accordance with the provisions of this Article are correct. J- Proof of payment of the fees and allowances prescribed in accordance with the systems and instructions issued for this purpose pursuant to the Law. K- Any other data, information, or documentary evidence requested by the Director General.

Article (9):
A- Subject to the provisions of paragraph (D) of Article (6) of these instructions, the application for a legal person to practice loss adjustment or surveying activities shall be submitted according to the form prepared for this purpose, including the following:
1- Proof of fulfillment of the conditions stipulated in Article (7) of these instructions by providing all the data and documentary evidence stipulated in Article (8) of these instructions for their General Manager or any of their managers, as applicable, and for all persons performing loss adjustment or surveying activities on their behalf, or submitting an undertaking to fulfill all these conditions before the license is granted. 2- A detailed statement including the qualifications and experiences of their administrative, financial, and technical officials. 3- A signed copy of the company contract or memorandum of association, as applicable. B- If the legal person to be licensed is a branch of a foreign legal person whose purpose is to practice loss adjustment or surveying activities, it must submit, in addition to the documents mentioned in paragraph (A) of this Article, a certified copy of the license of the foreign legal person issued by the home country.

Article (10):
A- The Director General shall notify the applicant either of the completion of the application with all data and documentary evidence submitted in accordance with the provisions of Articles (8) and (9) of these instructions, or of any deficiencies therein, within a period not exceeding ten working days from the date of submission of the application. B- In case of deficiencies, the applicant must complete these deficiencies within a period not exceeding sixty days from the date of notification; otherwise, the application shall be considered cancelled, and they shall not submit another application before three months have passed from the date of cancellation of the application.

Article (11):
A- The application for a license submitted in accordance with the provisions of Articles (8) and (9) of these instructions shall be decided upon by a decision of the Director General within a period not exceeding thirty days from the date of notifying the applicant of the completion of their application with all data and documentary evidence and passing the assessment conducted or approved by the Authority for this purpose. B- If the application specified in paragraph (A) of this Article is approved, the Director General shall notify the applicant thereof in accordance with the provisions of the Law, and the loss adjuster or surveyor shall be registered in the special register prepared for this purpose at the Authority after submitting proof of completing the establishment and registration procedures with the competent authorities in the Kingdom, as applicable, and paying the fees and allowances prescribed in accordance with the systems and instructions issued pursuant to the Law. C- If the applicant fails to pass the assessment specified in paragraph (A) of this Article, the Director General shall notify the applicant thereof in accordance with the provisions of the Law, and the applicant must, within one year from the date of submitting their application, pass the assessment and any of the assessment courses conducted for this purpose after paying the allowances prescribed in accordance with the instructions issued pursuant to the provisions of the Law; otherwise, the submitted license application shall be cancelled, and the license applicant shall not apply for a new license to practice loss adjustment or surveying activities in the Kingdom unless they submit proof of enrollment in specialized courses in loss adjustment and/or surveying activities lasting no less than fifteen hours, or a specialized course in insurance activities lasting no less than fifteen days.

Article (12):
A- The loss adjuster or surveyor is obliged to notify the Director General of any changes to any of the data and information for which they were licensed immediately upon occurrence, provided that this change is consistent with the provisions of these instructions and decisions issued thereunder. B- The legal person loss adjuster or surveyor must inform the Director General of the vacancy of the position of their General Manager or any of their managers in the Kingdom, as applicable, or of the vacancy of the position of any of the persons performing loss adjustment or surveying activities on their behalf in the Kingdom, and must fill the vacant position within thirty days from the date of vacancy and notify the Director General thereof for licensing purposes by the Authority in accordance with the provisions of these instructions and decisions issued thereunder.

Article (13):
A- The loss adjuster or surveyor must submit an application for license renewal annually, no later than forty-five days before the expiration of the license term, which falls on December 31 of each year, according to the form prepared for this purpose, attached with the following:
1- A statement including loss adjustment or surveying activities, as applicable, practiced during the year according to the form prepared for this purpose.
2- A written declaration in accordance with the provisions of paragraph (D) of Article (8) of these instructions.
3- A written declaration that all data and documents submitted in accordance with the provisions of this paragraph are correct.
4- Proof of payment of the fees and allowances prescribed in accordance with the systems and instructions issued for this purpose pursuant to the provisions of the Law.
B- The Director General shall decide on the license renewal application specified in paragraph (A) of this Article within a period not exceeding fifteen working days from the date of submission of the renewal application.

Article (14):
The loss adjuster or surveyor wishing to suspend their license may submit an application for this purpose, and they may submit an application for re-registration in the special register prepared for this purpose, provided that they submit a written application according to the form prepared for this purpose, subject to the following provisions:
A- If the suspension period does not exceed one year from the date of submitting the application, the provisions of Article (13) of these instructions shall apply.
B- If the suspension period exceeds one year from the date of submitting the application, the loss adjuster or surveyor must, in addition to what is stipulated in paragraph (A) of this Article, submit proof of enrollment in specialized courses in insurance activities or participation in conferences or seminars in insurance activities lasting no less than fifteen hours during the two years preceding the submission of the application. C- If the suspension period exceeds three years from the date of submitting the application, the loss adjuster or surveyor must submit a new license application in accordance with the provisions of these instructions and decisions issued thereunder. D- The loss adjuster or surveyor shall not practice loss adjustment or surveying activities, as applicable, during the license suspension period, under penalty of legal liability.

Article (15):
A- The loss adjuster or surveyor may add one or more branches of insurance activities to the license granted to them after submitting an application on the form prepared for this purpose to the Director General.
B- The loss adjuster or surveyor shall be granted approval to add branches according to the following conditions:
1- The conditions stipulated in paragraph (B) or paragraph (C) of Article (7) of these instructions must be met, as applicable.
2- They must pass the assessment conducted or approved by the Authority for this purpose.
3- They must pay the allowances prescribed in accordance with the instructions issued for this purpose pursuant to the provisions of the Law.
C- The provisions of Article (11) of these instructions shall apply to the application submitted to add one or more branches to the license of a loss adjuster or surveyor.

Article (16):
An insurance company may appoint an unlicensed loss adjuster or surveyor in the Kingdom to practice loss adjustment or surveying activities for claims requiring technical expertise not available in a licensed loss adjuster or surveyor in the Kingdom, provided that the Authority is informed of the name, nationality, qualifications, reasons for appointment, and work to be performed by this loss adjuster or surveyor, and any other data or information requested by the Director General.

Special Provisions for Organizing Loss Adjustment Activities

Article (17):
The loss adjuster must adhere to the following matters when practicing their activities:
A- Register their registration number with the Authority on all their papers, correspondence, and documents.
B- Practice loss adjustment activities only in the insurance branches licensed for loss adjustment.
C- Work on preparing the settlement report as quickly as possible and without delay.
D- Verify the circumstances of the loss to determine whether the insured risk is covered in the insurance policy.
E- Determine the true value of the insured property at the time of the loss and the nature and extent of the damages incurred, and in case of a claim for a specific compensation amount, inform the insured, beneficiaries, and the company whether the claimed compensation is appropriate or rejected, stating the bases relied upon in the evaluation. F- Estimate the company's liability under the insurance policy, taking into account the conditions, exclusions, and deductibles applicable to the policy or any of its annexes. G- Propose urgent measures to be adopted to prevent the worsening of damages and preserve the remaining insured property. H- Inform the parties of the possibilities of third-party liability for damages and the necessary procedures for recourse and recovery to preserve the rights and contractual and/or legal obligations of those parties, if possible. I- Verify the damaged properties and collect information about the incident to determine the nature and amount of the loss resulting from the damages caused by the incident, and request a technical report from specialists based on the nature of the risk covered by the insurance policy.

J- Inform the victims of the loss in writing of all procedures to be completed and request all necessary information to determine the type and extent of the loss for the purpose of performing their duties as a loss adjuster correctly.
K- Inform the parties of the difficulties encountered in practicing their activities that prevent them from executing their mission.
L- Keep organized and systematic books and records specific to their activities.
M- Provide the Authority with a statement every three months of the claims settled according to the form prepared for this purpose.
N- Inform the Authority in writing of any matter discovered or learned during the practice of their activities that constitutes a violation of the provisions of the Law, systems, instructions, or decisions issued thereunder.

Article (18):
The settlement report prepared by the loss adjuster must include, as a minimum, the following matters:
A- The date of preparation and delivery of the settlement report.
B- Information about the insured and insurance beneficiaries.
C- The entity that requested the settlement.
D- Names of insurance agents and brokers, if any.
E- Definition of the insurance policy and its basic terms, especially those related to the damages subject of the report.
F- Statement of damages and causes of occurrence and determination of the loss resulting therefrom.
G- Declaration of the work and procedures followed in conducting the settlement and preparing the report, including assistance from persons for settlement purposes, and the loss adjuster must include the reports of these persons in their report.
H- The technical opinion regarding coverage and its extent in kind and amount for the damages, estimation of the claimed compensation loss, and the amount of compensation due in light of the true value of the insured property and the damages it suffered, and the procedures and bases followed to reach them.

Article (19):
The loss adjuster must adhere to the rules of practicing the profession of loss adjuster and its ethics, which include the following:
A- Observing integrity, uprightness, and good conduct in all their actions and activities at all times.
B- Adhering to absolute neutrality and impartiality.

C- Treating all data and information obtained during their work with utmost confidentiality, and taking appropriate measures to preserve the confidentiality of information, documents, and records they possess.
D- Not performing any loss adjustment activities related to their spouse or relatives up to the second degree, whether in their personal capacity or as managers of a legal person related to the settlement.
E- Not practicing settlement activities in claims in which they have a direct or indirect interest with the concerned parties or with the damaged properties.
F- Not receiving any compensation, money, or other financial benefits directly or indirectly, other than their fees for their work.
G- Not retaining any of the goods, products, or compensation resulting from the settlement.

Special Provisions for Organizing Surveying Activities

Article (20):
The surveyor must adhere to the following matters when practicing their activities:
A- Register their registration number with the Authority on all their papers, correspondence, and documents.
B- Perform surveying activities personally and not practice them except in the insurance branches licensed for them.
C- Submit their report to the company as quickly as possible and without delay.
D- Advise the company regarding the maximum loss limit, how to control the loss, and necessary safety and security measures to avoid a larger loss.
E- Rely on the opinion of experts or technicians when necessary.
F- Submit proposals regarding improving risk prevention measures and preserving the insured property.
G- Keep organized and systematic books and records specific to their activities.
H- Inform the Authority in writing of any matter discovered or learned during the practice of their activities that constitutes a violation of the provisions of the Law, systems, instructions, or decisions issued thereunder.

Article (21):
The survey report prepared by the surveyor must include, as a minimum, the following matters:
A- The date of preparation and delivery of the survey report.
B- Complete information about the insurance applicant.
C- The entity that requested the survey.
D- Names of insurance agents and brokers, if any.
E- Details of the properties to be insured, their specifications, value, and any information about previous losses suffered.
F- Details of the precautions taken by the insurance applicant to avoid the risk and mitigate it in case of occurrence.
G- Declaration of the work and procedures followed in conducting the survey and preparing the report, including assistance from persons for survey purposes, and the surveyor must include the reports of these persons in their report.
H- The maximum expected financial loss in the event of the risk, as applicable.

Article (22):
The surveyor must adhere to the rules of practicing the profession of surveyor, which include the following:
A- Observing integrity, uprightness, and good conduct in all their actions and activities at all times.
B- Adhering to absolute neutrality and impartiality.
C- Treating all data and information obtained during their work with utmost confidentiality, and taking appropriate measures to preserve the confidentiality of information, documents, and records they possess.
D- Not performing any surveying activities related to their spouse or relatives up to the second degree, whether in their personal capacity or as managers of a legal person related to surveying activities.
E- Not accepting to perform any work they are not qualified to perform unless they obtain assistance or advice enabling them to perform their work completely.
F- Exercising the necessary care, attention, and expected skill during the performance of their work.
G- Not using information obtained during their work for personal benefit.

H- Not performing surveying activities in which they have a direct or indirect interest with the concerned parties or with the properties they are surveying.

General Provisions

Article (23):
A- If the Director General has sufficient information indicating any of the following:
1- The loss adjuster or surveyor violated the provisions of the Law, systems, instructions, or decisions issued thereunder.
2- The loss adjuster or surveyor lost any of the conditions under which they were licensed, or if it becomes apparent that any of the data or documentary evidence submitted by them is incorrect.
3- The loss adjuster or surveyor did not renew their license in accordance with the provisions of Article (13) of these instructions and continues to practice their activities.
4- The loss adjuster or surveyor did not practice loss adjustment or surveying activities in all or any of the insurance branches licensed for them to practice settlement or surveying activities.
B- The Director General may take any of the following measures if it becomes apparent that any of the information in paragraph (A) of this Article is true:
1- Request the loss adjuster or surveyor to take specific measures to rectify their situation within the period specified for this purpose.
2- Suspend the license of the loss adjuster or surveyor for the period specified by the Director General, and they may request the loss adjuster or surveyor to take specific measures to rectify their situation.
3- Cancel the license of the loss adjuster or surveyor in all the branches licensed for them to practice or any of them.
C- If the loss adjuster or surveyor does not rectify their situation in accordance with the provisions of item (1) of paragraph (B) of this Article, the Director General may suspend or cancel their license.
D- If the suspension period expires and the loss adjuster or surveyor has not taken the necessary measures to rectify their situation in accordance with the provisions of item (2) of paragraph (B) of this Article, the Director General may cancel their license. E- If the Director General issues a decision to cancel the license of the loss adjuster or surveyor, the loss adjuster or surveyor shall not apply for a new license before three years have passed from the date of the license cancellation decision if the cause of cancellation is a serious error as determined by the Director General.

Article (24):
A- The Director General may assign one or more employees of the Authority or appoint an external party to audit any of the books and records of the loss adjuster or surveyor at appropriate times, and the loss adjuster or surveyor must make any of them available to them and cooperate with them to enable them to perform their work completely, and the loss adjuster or surveyor shall bear the fees determined by the Director General for this external party, unless the Director General decides otherwise. B- The loss adjuster or surveyor is obliged to provide any data or information requested by the Director General or by employees of the Authority appointed by them within the period specified for this purpose.

Article (25):
The Secretary General may approve exempting the license applicant from the condition stipulated in item (1) of paragraph (A) of Article (7) of these instructions, if the license applicant meets any of the following:
A- Practical experience exceeding the duration of any of the experiences stipulated in paragraphs (B) and (C) of Article (7) of these instructions, as applicable, by a period of no less than three years, provided that the applicant holds at least a secondary school certificate. B- Practical experience of no less than any of the experiences stipulated in paragraphs (B) and (C) of Article (7) of these instructions, as applicable, provided that their total experience is no less than fifteen years.

Article (26):
The Director General may delegate the powers stipulated in these instructions to any senior employee of the Authority, provided that the delegation is written and specific.

Article (27):
A- Every person licensed to practice loss adjustment activities in insurance at the time of the entry into force of these instructions must regularize their situation in accordance with the provisions of these instructions and decisions issued thereunder within a period not exceeding six months from the date of entry into force of these instructions, provided that they meet the following:
1- The conditions specified in items (2-6) of paragraph (A) of Article (7) of these instructions.
2- Practical experience of no less than the experience stipulated in paragraph (B) of Article (7) of these instructions.
B- Every person practicing surveying activities in insurance at the time of the entry into force of these instructions, except for company employees who perform surveying activities for the company, must submit an application for a license within a period not exceeding six months from the date of entry into force of these instructions, provided that they meet the following:
1- The conditions specified in items

---

(Note: The source text ends abruptly at Article 27, paragraph B, item 1. The translation reflects the provided text exactly as received.)