ARTICLE 20. Bimeh
Markazi Iran will supervise the operations of Insurance institutions to which
these regulations apply in the Zone, in accordance with the provisions of these
regulations
ARTICLE 21. Depending on the case,
institutions to which these regulations apply are required to:
A. Prepare and keep their accounts and
financial statements in accordance with the formats to be approved by the High
Council of Insurance at the suggestion of Bimeh Markazi Iran.
B.
Submit copies of their financial statements
examined and commented by the auditors accredited by Audit Organization of
Iran, or internationally recognized auditors, to Bimeh Markazi Iran, within 6
months from the end of the fiscal period, at latest.
C.
Prepare statement of their annual insurance
operations in accordance with the formats prepared by Bimeh Markazi Iran and to
submit it to Bimeh Markazi Iran within 3 months from the end of the relevant
period.
D.
Provide Bimeh Markazi Iran with other regular or
ad-hoc information and statistics, as Bimeh Markazi Iran may deem necessary for
supervising proper implementation of these regulations.
E.
Cooperate with and put the necessary information at
the disposal of the inspectors who are assigned, in writing, by one of the
members of the Executive Board of Bimeh Markazi Iran with prior notification to the Secretariat of the High
Council of Free Zones;
Note. Insurance institutions
offering long-term life policies, in addition to observing the above clauses,
are obliged to appoint an actuary who is acknowledged by Bimeh Markazi Iran to
examine and confirm the relevant accounts and technical reserves.
ARTICLE 22. In addition to their legal and professional duties,
the auditors of the insurance institutions to which these regulations apply are
obliged to comment on the
proper implementation of provisions of these regulations in their final
reports.
ARTICLE 23. If Bimeh Markazi Iran observes any breach in application
of the relevant regulations by the institutions to which these regulations
apply, it will give written notices to the institution and the Authority asking for rectification
of the case within a specified period.
If the
case is not rectified in due course, or if it reoccurs, pertinent to the
importance of the case, Bimeh Markazi Iran, with written notice, will give
effect to Article 10 of these regulations.
ARTICLE 24. Net asset value (the shareholders’ equity) of the insurance Institutions to
which these regulations apply shall at no time be less than the greatest figure
arising from the following clauses:
A.
Ninety (90) percent of minimum paid-up capital, in
accordance with the provisions of these regulations;
B.
Ten percent (10%) of the gross written premiums for
the last fiscal year multiplied by the Loss Retention Ratio of the same period;
C.
Fourteen point three percent (14.3%) of the annual
average of the total incurred losses for the last three fiscal periods
multiplied by the Loss Retention Ratio for the period.
Note. For the purposes of this article” Loss
Retention Ratio for the period” is defined as:
Total incurred losses after deducting the reinsurer’s shares
Total incurred losses of the relevant period.
ARTICLE 25. An insurance
institution, which fails to meet the requirements of Article 24 of these
regulations, within three months from the deadline set for the submission of
its financial statements, shall present for approval to Bimeh Markazi Iran, a
scheme showing that the institution will be able to meet the said requirements.
If not, Bimeh Markazi Iran will restrict the operation or cancel the permit of
such insurance institutions in compliance with the provisions of these
regulations. At any rate, the period (duration) for the implementation of such
a proposed scheme should not be more (longer) than one year.
ARTICLE 26. Institutions to which these regulations apply are
obliged to maintain and invest all their assets representing liabilities and
underwriting reserves, and also their capital and other reserves, only in the
Free Zones or in the other parts of the country.
Note. A part of the assets, subject of these regulations, might be kept
abroad with the approval of the Authority and consent of Bimeh Markazi Iran.