PIN 3.6.1

(1) Except as permitted in this Rule, an ADGM Incorporated Insurer must not effect any Direct Long-Term Insurance contract the terms of which include of the following:
(a) investment components of Policy Benefits, that are wholly or partly guaranteed;
(b) options to receive Policy Benefits on expiry, maturity or surrender as annuities, where annuity rates are wholly or partly guaranteed at the inception of the contract;
(c) bonuses on participating contracts where those bonuses become vested Policy Benefits or guaranteed by the Insurer at a date prior to expiry, maturity or surrender; or
(d) other options or discretionary Policy Benefits that expose the Insurer to investment, expense or other risk that is not readily definable at the inception of the contract.
(2) An Insurer may request the permission of the Regulator to effect Direct Long-Term Insurance contracts with features of the kind referred to in (1). A request must be made in writing and must include:
(a) details of the terms of the proposed contracts;
(b) an explanation of how the Insurer intends to price such contracts, and to value the associated assets and liabilities for the purposes of its capital adequacy and solvency calculations; and
(c) an explanation of how the Insurer intends to quantify, monitor and manage the risks to its capital adequacy and solvency arising from such features of contracts.
(3) The Regulator may give an Insurer permission to effect Direct Long-Term Insurance contracts having one or more features of the kind referred to in (1). Permission shall be given in writing and shall be subject to such terms or conditions as the Regulator may specify in its notice giving permission. Where any terms and conditions are imposed on the Insurer, the Insurer shall comply with such terms and conditions.
(4) The Regulator may on its own initiative at any time vary or revoke permission given under (3) above. Variation or revocation shall be communicated to the Insurer in writing.
(5) If the Regulator decides to exercise its power under this Rule not to give permission or to impose conditions or restrictions or to vary or revoke permission, the Insurer may refer the matter to the Regulatory Committee for review.