Insurance Ordinance Overview

This set of flashcards covers key vocabulary and concepts from the lecture notes on the Insurance Ordinance, focusing on regulations, requirements, and operational guidelines in the insurance industry.

Iron Curtain rule

Prohibits the combination of Life and Non-Life insurance businesses within a single entity.

Securities and Exchange Commission of Pakistan (SECP)

The regulatory body that oversees licensing and registration for insurance companies in Pakistan.

Minimum capital thresholds

Required capital amounts of Rs. 150 million for Life insurers and Rs. 80 million for Non-Life insurers.

Solvency margins

The requirement for insurers to ensure their assets exceed liabilities plus a surplus for financial stability.

Operational transparency

Demands detailed record-keeping, document storage, and regular reporting to ensure accountability.

Fit-and-proper management

Criteria requiring that company management and directors possess necessary qualifications and integrity.

Actuary's certification

A mandatory requirement for Life insurance registration, ensuring business viability.

Claim documentation requirements

Mandates that claim rejections must be documented with clear reasons.

Investment restrictions

Up to 40% of an insurer's investment must be in Government securities for risk mitigation.

12 Sections of Licensing Conditions

Refers to sections of the Insurance Ordinance that outline registration and operational obligations.