1. | The Company shall complete all forms related to the actual and required solvency margin calculations. | | |
2. | The Company shall maintain a solvency margin according to the standards specified, and implement the following measures when its solvency margin falls below the required margin (s): | | |
| a. | The Company shall restore, in a period not exceeding the next financial quarter, its solvency margin when it falls between the ranges of 75% to 100% of the required solvency margin. | |
| b. | The Company shall restore its solvency margin when it falls between 50% and 75% of the required margin. The company shall apply measures stated in paragraph (a) of this Article. If the required solvency margin is not restored to its appropriate level for two consecutive financial quarters, the company shall formulate and provide SAMA with a corrective action plan to be taken and the period necessary to restore its solvency. | |
| c. | The Company shall restore its solvency margin when it falls between 25% and 50% of the required margin. The Company shall apply measures stated in paragraph (b) of this Article. If the required solvency margin is not restored to its appropriate level for two consecutive quarters, the company will be required by SAMA to take all or any of the following measures immediately: | |
| | 1. | Increase the Company’s capital. |
| | 2. | Adjust insurance premiums |
| | 3. | Reduce costs; |
| | 4. | Stop underwriting business. |
| | 5. | Assets liquidation. |
| | 6. | Any other measures deemed appropriate by the Company and approved by SAMA. |
| d. | SAMA shall appoint an advisor to provide consultation and advice to the company or issue a cease and desist order to the Company and recommend the withdrawal of it license if the solvency margin falls below 25% and/or the Company fails to act appropriately to rectify its financial situation. | |