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Location: Central Bank of Bahrain Volume 3—Insurance > Part A > Business Standards > CA Capital Adequacy > CA-2 Solvency Margin Requirements > CA-2.1 Solvency Margin Requirements > Minimum Fund
  • Minimum Fund

    • CA-2.1.5

      For the purposes of this Module 'minimum fund' means for:

      (a) Category 1 InsurerG : BD 300,000;
      (b) Category 2 InsurerG : BD 500,000;
      (c) Category 3 InsurerG : BD 400,000;
      (d) Category 4 InsurerG : The relevant minimum fund for Category 1 or 2 (depending on the type of general business underwritten) PLUS the Category 3 minimum. These amounts are to be maintained separately by the insurance firmG ;.
      (e) Category C1G Insurer: BD 75,000; and
      (f) Category C2G Insurer: BD 300,000.
      Amended: January 2007

    • CA-2.1.6

      For purposes of Paragraph CA-2.1.5, the following definitions apply:

      (a) Category 1 insurerG : an insurance firmG whose license is limited to any of the following types of insurance: fire; damage to property; and miscellaneous financial loss;
      (b) Category 2 insurerG : an insurance firmG whose license includes any of the following types of insurance: marine cargo and marine hull; aviation; motor; engineering; liability; and any other general insurance class not specifically mentioned. These may only be in addition to any Category 1 activities;
      (c) Category 3 insurerG : an insurance firmG whose license includes any of the following types of insurance: life insurance of all types; personal accident whose term is over 1 year; and savings fund accumulation insurance;
      (d) Category 4 insurerG : an insurance firmG , licensed prior to 1 April 2005 and whose license includes any of the types of insurance specified in Category 3 and in Category 1 or 2, or both;
      (e) Category C1G insurer: anG insurance firmG whose business is restricted to insuring only the insurance risks (other than liability riskG ) of its shareholder(s)G or those of subsidiaryG or associatedG companies of its shareholder(s)G ; and
      (f) Category C2G insurer: an insurance firmG whose business is restricted to insuring only the risks of its shareholder(s)G or of subsidiaryG or associatedG companies of its shareholder(s)G and whose business may include liability risksG , subject to the CBB being satisfied that the activity, capital structure and management provide sufficient protection to potential third party claimants.
      Amended: January 2007

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