Subject to the provisions of the Law of Cooperative Health Insurance issued by Royal Decree No. (M/10) dated 1/5/1420H, the Saudi Central Bank shall have the power to:
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| 1. | Receive and review incorporation requests of cooperative insurance and reinsurance companies and insurance related services providers; to assure fulfilment of requests to the licensing requirements set out by the Saudi Central Bank, and issue the initial approval in order to refer the requests to the competent authority to complete incorporation procedures.
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| 2. | Issue licenses, supervise, control, and regulate the activities of insurance and reinsurance companies and insurance-related service providers, and shall exercise its powers as stated under the provisions of this Law and its Implementing Regulation, and notably to:
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| | a. | Regulate and approve rules for investment of insurance and reinsurance premiums, and design a formula for distribution of insurance and reinsurance surplus among shareholders and policyholders, provided that separate accounts are kept for shareholders, policyholders and insurance operations.
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| | b. | Determine the sums of money required to be deposited in one of the local banks in order to practice each of the different classes of insurance.
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| | c. | Approve standard forms of insurance and reinsurance policies, and determine the minimum insurance amount for third party liability coverage, subject to the provisions of laws applicable in this regard.
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| | d. | Set rules determining the method of investing the assets of insurance and reinsurance companies.
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| | e. | Set general rules determining the assets each company shall allocate inside and outside the Kingdom, the minimum and maximum assets required for each class of insurance and the conditions that shall be observed in each class, and the minimum and maximum underwriting premiums in relation to the capital and reserves of the company.
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| | f. | Set rules protecting the rights of beneficiaries, and ensure the ability of the insurance companies to fulfil the claims and obligations.
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| 3. | Obtain fees of licenses and provided services, and such fees shall be determined by the Governor.
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