Rules Governing Bancassurance Activities

Client: a natural person or juristic entity who deals with the Bank. * The Saudi Arabian Monetary Agency was replaced By the name of Saudi Central Bank accordance with The Saudi Central Bank Law No. (M/36), dated 11/04/1442H, corresponding in 26/11/2020G . Article Two Scope of Application These Rules shall apply to all Bancassurance Activities. The Cooperative Insurance Companies Control Law, its Implementing Regulation, the Banking Control Law and SAMA’s relevant regulations, rules, and instructions, and relevant laws and regulations issued by other authorities shall govern whatever is not provided for therein and to the extent possible. Article Three Objective The objective of these Rules is to regulate Bancassurance Activities and practices in Saudi Arabia and the relationship between the Company and the Bank in this regard. Article Four Requirements for Practicing Bancassurance Activities Bancassurance Activities shall be practiced directly through the Bank. By merely establishing a tool among other tools for marketing and distribution for the Company, the contractual relationship between the Company and the Bank- in the context of conducting Bancassurance Activities - shall not include insurance agency, insurance brokerage, insurance advisory, or any insurance related profession. The Company and the Bank shall sign the Agreement before the Bank starts practicing Bancassurance Activities. The Company and the Bank shall obtain SAMA’s prior approval before signing the Agreement. The Agreement must include, at a minimum, the following: a. Term of Agreement; b. Agreement termination procedures; c. List of the electronic and non electronic marketing and distribution channels; through which the Bancassurance Activities will be practiced. d. Training plan for Authorised Employees; e. Know Your Client (KYC) procedures; f. Compliance procedures; g. Insurance classes and products to be covered under the Bancassurance activities; h. Marketing and distribution procedures; i. Collection of premiums procedures; j. Bank commission and its calculation mechanism, due date, and collection procedures; k. Client care and complaints resolution procedures; and l. Procedures of receiving and transferring the claims to the Company. Article Five Bank Obligations 1. The Bank shall be fully responsible for the Authorised Employees’ practice of Bancassurance Activities. In order to ensure that the activities are carried out in line with SAMA's instructions and principles of transparency, the Bank shall: 1.1 Ensure compliance with the terms of the Agreement and the procedures contained therein in all marketing and distribution channels of the Bank, and set the appropriate internal controls and procedures to ensure compliance with the relevant laws, regulations and rules; 1.2 Maintain adequate records demonstrating the Bank's compliance with the provision (1.1); 1.3 Prepare compliance reports regarding the Bancassurance Activities as agreed with the Company; 1.4 Ensure compliance with the limits of insurance policies permitted to be marketed and distributed in accordance with the Agreement; 1.5 Maintain the confidentiality of data, records and information of the Company and its Clients; and