| 1. | If the Saudi Central Bank finds that any insurance or reinsurance company or insurance-related service provider has followed a policy to which it may adversely affect its ability to fulfill its obligations, has violated professional standards, or has violated the provisions of this Law or its Implementing Regulation, the Saudi Central Bank may impose one or both of the two following penalties:
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| | a. | Fine stipulated in Article (21) of this Law.
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| | b. | Cancellation of the issued license, provided that such cancellation is supported by the committee referred to in Article (20) of this Law.
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| 2. | In addition to provisions of Sub-Paragraph (a) of Paragraph (1) of this Article, the Saudi Central Bank may take against the insurance or reinsurance company or insurance-related service provider stated in paragraph (1) of this Article any of the following actions:
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| | a. | Issue a warning.
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| | b. | Require presenting an appropriate program that explains the corrective measures to be taken.
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| | c. | Compel to stop practicing all or some activities.
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| | d. | Prevent distribution of profits to meet the solvency margin requirements.
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| | e. | Suspend the person responsible for the violation from work and suspend their powers.
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| | f. | Suspend any of the persons referred to in Article (6) of this Law from work.
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| | g. | Appoint one or more consultants to provide them with consultation regarding the management of its activities at their expense.
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| | h. | Any other action specified in the Implementing Regulation.
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| 3. | The Saudi Central Bank may, instead of imposing the penalty stipulated in SubParagraph (b) of Paragraph (1) of this Article, take against the entities stated in Paragraph (1) of this Article any of the actions stipulated in Paragraph (2) of this Article.
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| 4. | The Saudi Central Bank may announce the penalties it imposes based on Paragraph (1) of this Article when they are final, and may also announce the actions taken based on Paragraph (2) of this Article as it deems necessary to protect the insureds and the stability of the insurance sector, and the Saudi Central Bank shall set the necessary rules for such announcements.
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