These Rules shall be complied with in conjunction with the Cooperative Insurance Companies Control Law and its Implementing Regulation, in addition to SAMA’s related rules, regulations and instructions.

For the purpose of applying the provisions of these Rules, the following terms and phrases, wherever mentioned herein, shall have the meanings assigned thereto, unless the context otherwise requires:

SAMA: the Saudi Central Bank.

Law: Cooperative Insurance Companies Control Law.

Implementing Regulation: The Implementing Regulation of Cooperative Insurance Companies Control Law.

Rules: the Rules of Insurance Products Approval.

Insurance Product: products of general insurance, health insurance and protection and savings insurance, marketed and sold by Insurer to individuals or entities.

Insurer: the insurance company licensed to practice insurance business in accordance with the provisions of the Cooperative Insurance Companies Control Law.

Committee: Products Committee formed internally, consisting of representatives of the Top Management, performing the responsibilities indicated in these Rules.

Individual Product: Insurance Products offered to individual clients and their families.

Corporate Product: Insurance Product offered to entities.

Product ID: the identification number specified by SAMA for each Insurance Product provided by the Insurer.

The Checklist: Forms set by SAMA for Insurance Products requests, indicating documents that the Insurer shall attach when submitting a new product approval request

These Rules aim to set the necessary regulatory procedures and requirements for an Insurer to market and sell Insurance Products to clients, to determine the Insurance Product that require either SAMA’s prior approval or file & use; prior to market and sale, along with enhancing the efficiency of Insurance Product risk management.

These Rules shall apply to all Insurance Products.

1. Individual Products are subject to SAMA’s prior approval procedures before product marketing and sale.

2. The Insurer must submit an application for approval including all the required documents at least (30) working days ahead of the expected date of marketing and sale of the Individual Product.

3. SAMA will notify the Insurer within (5) working days from the application submission date whether the application is complete or not. In case of incomplete application, SAMA will notify the Insurer of any missing information/documents.

4. SAMA will notify the Insurer of any comments within (15) working days from the date of application completion.

5. The Insurer must provide the missing information/documents or address comments (if any) within (15) working days from the date of receiving SAMA notification, this period may be extended for a same period once SAMA has accepted the justifications submitted by the Insurer.

6. In case the Insurer did not provide the missing information/documents or address comments within the period stated in provision (5) above, then the application will be deemed cancel, and the Insurer will have to resubmit the application.

7. The Insurer must not market and sell the Individual Product before obtaining a written approval from SAMA and receiving the Product ID.

1. Corporate Products are subject to file & use procedures prior to product marketing and sale.

2. The Insurer shall file the Corporate Product with SAMA prior to its marketing and sale.

3. SAMA will confirm the receipt of the file, and will provide the Insurer with the Product ID within (5) working days from the date of receiving the file.

4. The Insurer has the right to market and sell the Corporate Product once the Product ID is received.

5. SAMA may –when it deemed necessarydirect the Insurer to apply for product approval for the Corporate Product and follow the procedures provided in article (5) hereof.

1. Completed Checklist designed for each type of Insurance Product, along with the required documents as per The Checklist.

2. Signed certificate from the Product Committee using the form attached in Appendix (A).

3. A document approved by the Committee clarifying the following:  The objective of the Insurance Product launch and the target clients

•  Insurance Product marketing and sale methods.

•  Retention.

•  Rationale for not reinsuring with local reinsurers.

•  Any other supporting documents related to the Insurance Product nature.

4. The Insurance Product’s policy must include the following components as a minimum:

• a- Definitions.

• b- Particulars of the Insured.

• c- Insurance coverage description and limits.

• d- Coverage period.

• e- Exclusions.

• f- General terms and conditions.

• g- Deductible.

• h- Insurance premium.

• i- Claim provisions.

• - Cancellation.

• k- Surplus distribution method.

• l- Jurisdiction.

• m- Additional coverage.

• n- Identification of the property or risk to be insured.

 5 .Reinsurance arrangements .

1. The Insurer shall form an internal Committee reporting to the Risk Management committee.

2. The Committee shall include members from the Insurer’s Top Management, in particular, departments concerned with compliance, underwriting, risk, actuarial work, reinsurance, claims, marketing, and legal affairs, or any other member the Insurer deems fit.

3. SAMA shall be notified with the names of the chairman and members of the Committee within (5) working days of its formation or if any changes occur.