1. It is prohibited for Insurance Companies to combine insurance of Persons and fund accumulation operations and property and liability insurance operations. 2. Insurance Companies licensed to carry on the two types of insurance referred to in item (1) of this article prior to the issuance of this decree-law shall remain operational. 3. Companies referred to in item (2) of this article shall comply with the following controls: a. Complete separation between Persons and funds accumulation insurance operations and property and liability insurance operations in terms of technical, financial, technological, administrative and legal procedures as well as relevant technical, administrative and financial systems and staff, except for the chief executive officer or general manager of the concerned company; and b. Prepare all financial reports and statements required by virtue of this decree-law and the Board of Directors’ instructions and resolutions on a consolidated basis, and on the basis of the separation between Persons and funds accumulation insurance operations and property and liability insurance operations. 4. Notwithstanding the provisions of item (2) of this article, the Board of Director may issue a resolution obligating Insurance Companies to adjust their situations pursuant to the provisions of item (1) of this article, or may issue a resolution that such Companies remain carrying on the two types of insurance while being prohibited from issuing new Insurance Policies that combine property and liability insurance operations with Persons and funds accumulation insurance operations, in accordance with the controls and requirements set by the Central Bank in this regard.
Interpretation and application must be checked against the official text and current version.