Skip to main content
Back Custom print Text Only Rich Text Print / Save as PDF
Download Original PDF

  • Cease and Desist Orders

    • Article Seventy-Five

      1.The Company and the Insurance and Reinsurance Services Provider shall submit in writing to SAMA its intentions to cease its insurance activities in any one class or classes of insurance in the Kingdom accompanied the following particulars: 
             		 
       a.Reasons for such cessation 
       
       b.Evidence that they have fully discharged their obligation toward their clients and policyholders, they have set aside adequate reserves to meet their obligations, and they have transferred all policies in force to another Company or Insurance and Reinsurance Services Provider. 
       
       c.The wording of the cessation notice before publishing in two of the local newspapers that shall state their intention to cease operations in one class or classes of insurance and that policyholder’s and interested parties shall file their objections to SAMA within a period not exceeding three months from the publishing date of the notice. 
       
      2.SAMA’s written approval shall be obtained before cessation of operations. 
             		 

    • Article Seventy-Six

      1.SAMA shall request the license withdrawal of the Company or the Insurance and Reinsurance Services Provider in the following cases: 
             		 
       a.No business activities for a period of six months from the issuance date of the license. 
       
       b.None compliance with the Law and this Implementing Regulations. 
       
       c.Providing SAMA with false information in its licensing application 
       
       d.Conducting its business and affairs in a manner that threatens to make it insolvent or that it is hazardous to its policyholders, stockholders, or the public. 
       
       e.Insolvency, or its assets are not sufficient for carrying on its business. 
       
       f.The business is fraudulently conducted. 
       
       g.The paid up capital falls below the prescribed minimum limit or failure to fulfill the provisions of Article 68. 
       
       h.The business or volume of activities falls to a limit that SAMA finds unviable to operate under. 
       
       i.Refusal or delay of payments due to beneficiaries without just cause. 
       
       j.Refusal to be examined or to produce its accounts, records, or files for examination by SAMA. 
       
       k.Failure to pay a final judgment against it related to its insurance operation. 
       
      2.In case of license withdrawal, the Company’s or the Insurance and Reinsurance Services Provider’s responsibility towards its policyholders shall be transferred to another licensed entity chosen by the beneficiaries with the approval of SAMA. 
             		 
      3.SAMAshall supervise all settlements related to existing insurance policies where a Company’s business activities and status fall under this Article.