Article 2

No: 441/186

Effective from Mar 01 2020 - Feb 29 2020
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Definitions: the following terms and phrases, wherever mentioned herein, shall have the meaning assigned thereto, unless the context otherwise requires:

1.	SAMA: Saudi Arabian Monetary Authority.
2.	The Law: the Cooperative Insurance Companies Control Law.
3.	Implementing Regulation: the Implementing Regulation of the Cooperative Insurance Companies Control Law.
4.	Kingdom: the Kingdom of Saudi Arabia.
5.	Rules: Actuarial Work Rules for Insurance.
6.	Person: A natural person or juristic entity.
7.	Insurance: Mechanism of contractually shifting burdens of pure risks by pooling them.
8.	Reinsurance: Transfer of the Insured’s risk from the Insurance Company to the Reinsurance Company and to indemnify the Insurance Company by the Reinsurance Company for any payments made to the Insured policyholder against damages or loss.
9.	Insurance Company: A company that accepts Insurance contracts directly from Insured(s).
10.	Reinsurance Company: An Insurance or Reinsurance Company that accepts Insurance contracts from another Insurance Company.
11.	Insured: A natural person or juristic entity, which has entered into an Insurance contract with an Insurance Company.
12.	Beneficiary: A natural person or juristic entity, to whom the benefit(s) under the Insurance policy is assigned as a result of a covered loss.
13.	Retention: The amount of risk kept by an Insurance company in its own books, in comparison with Insurance risks ceded to a Reinsurance company.
14.	Technical Provisions (Reserves): Insurance liabilities i.e. the value set aside to cover expected losses arising on a book of Insurance policies and its financial obligations.
15.	Company: A company conducting Insurance and/or Reinsurance activities that has been approved by SAMA to conduct such business.
16.	Actuary: Person who conducts various statistical and probability theories whereby services are priced; liabilities are assessed and provisions calculated.
17.	Actuarial Candidate: A natural person who either holds an actuarial degree or is actively studying for actuarial examinations set by an Actuarial Association.
18.	Associate Actuary: A natural person who is qualified as an Associate member of an Actuarial Association.
19.	Qualified Actuary: A natural person who is qualified as a Fellow of an Actuarial Association.
20.	Appointed Actuary: The Qualified Actuary who is appointed by the Company to undertake the responsibilities specified in these Rules and the Implementing Regulation and SAMA’s instructions.
21.	Actuarial Function: The department of a Company that consists of one or more Qualified Actuaries, Associate Actuaries and Actuarial Candidates and other natural persons to assist and support the actuarial work of the Company as required in these Rules.
22.	Actuarial Services: The rendering of advice, recommendations, findings, and opinions by Appointed Actuaries to Companies in connection with these Rules.
23.	Actuarial Services Provider: A juristic person that provides Actuarial Services in accordance with these Rules, employing Qualified Actuaries who may be permitted to act as an Appointed Actuary in accordance with these s Rules
24.	Actuarial Association: An accepted association or organization by SAMA of Qualified and Associate Actuaries and Actuarial Candidates which is a member of the International Actuarial Association, admitting its members through a program of professional examinations.
25.	Insurance Contract Assets and Liabilities: For the purposes of these Rules, the assets and liabilities in accordance with applicable financial reporting standards in the Kingdom.
26.	Peer Review: Reviewing the work of an Appointed Actuary for the purposes of these Rules to ensure it complies with these Rules and the professional standards of the Actuarial Association of which the Appointed Actuary is a member.
27.	SAMA’s Instructions: Regulations, rules, instructions and circulars issued by SAMA.
28.	Senior Management: The Managing Director, Chief Executive Officer, General Manager, their deputies, Chief Financial Officer, Managers of key departments, officers of risk management, internal audit, and compliance functions, and similar positions in the financial institution, in addition to incumbents of any other positions determined by SAMA, excluding only for the purpose of these Rules, the Head of the Actuarial Function.
29.	Technical Price: The price for an insurance policy determined by the Appointed Actuary using the actuarial basis applicable at the time of issuing/ renewing the policy.

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