CHAPTER 4

CANCELLATION OF PERMIT AND RESTRICTION OF OPERATION

 

 

ARTICLE 9. The operation permit issued by Bimeh Markazi Iran for either all classes or specific classes will be cancelled in the following instances:

A.       At the request of the permit–holder.

B.     In case, the institution does not commence its operations in the Zone within one year beginning from the date of the permit;

C.     Bankruptcy of the institution;

D.     If, at the discretion of Bimeh Markazi Iran supported by the High Council of Insurance, the institution is not financially capable to fulfil its commitments; or if the continuation of institution’s operation is to the detriment of insureds, assureds or their beneficiaries;

E.     On the ground of other prescribed instances in these regulations.

 

ARTICLE 10. In case the institution to which these regulations apply contravenes its Articles of Association or the provisions of these regulations or, as announced by the Authority, other regulations governing such institutions in the Zone, with the suggestion of Bimeh Markazi Iran and the approval of the High Council of Insurance, its operation in a class or specific classes or reinsurance will be temporarily or permanently banned.

 

ARTICLE 11.  Issuance and cancellation of the operation permit for the institutions to which these regulations apply or temporary suspension of their operation and the necessary information, protecting the interests of the insureds, assureds, and their beneficiaries, shall be announced twice with interval of one month by Bimeh Markazi Iran in Iran’s official gazette and one of the mass-circulated newspapers in Tehran and the Zone, at the expense of the institution.

 

ARTICLE 12.  In case the operation permit of an insurance institution is permanently cancelled in one or more insurance or reinsurance classes, with suggestion of Bimeh Markazi Iran and the approval of the High Council of Insurance arrangements will be made to protect the interests of the assureds, insureds and their beneficiaries. These arrangements might include the transfer of the portfolio of and all the records and documents related to its rights and liabilities to another institution authorized to operate in the Zone.