Glossary of Defined Terms

Actuarial Function	Has the meaning given to it in INDI section 2.1.
Approved Actuary	An Approved Individual registered by the Regulatory Authority to perform the Actuarial Function.
Base Capital Requirement	Has the meaning given: (A) for Insurers, in PINS section 3.4; and (B) for all other Authorised Firms, in PIIB section 2.4.
Branch	A legal entity incorporated in a jurisdiction outside the QFC.
Captives	The collective term for Class 1 Captive Insurers, Class 2 Captive Insurers and Class 3 Captive Insurers.
Cellular Assets	The assets of the Protected Cell Company attributable to the Company's Cells.
Cellular Liabilities	Liabilities that may be settled by disposition of Non-Cellular Eligible Capital.
Class 1 Captive Insurer	Insurers who are permitted under the conditions of their authorisation to carry out Contracts of Insurance only in respect of risks related to or arising out of the business or operations of the Group, including for this purpose only contracts of reinsurance in respect of such risks insured by the cedant.
Class 2 Captive Insurer	Insurers who are permitted under the conditions of their authorisation to obtain no more than 20% of their Gross Written Premium from third party risks.
Class 3 Captive Insurer	Insurers who are permitted under the conditions of their authorisation to carry out Contracts of Insurance: (A) only in respect of risks related to or arising out of the business or operations of Persons who engage in similar, related or common: (i) businesses; (ii) activities; (iii) trade; (iv) services; or (v) operations,including for this purpose only contracts of reinsurance in respect of risks insured by the cedant; and (B) owned by such Persons or by a Body Corporate of which all such Persons are members.
Conducting	Has the meaning given to it by PINS 1.1.2.
Eligible Capital	The total Eligible Capital of an Insurer calculated in accordance with PINS section 4.2.
Financial Condition Report	The report prepared by an Insurer's Approved Actuary as required under PINS Rule 9.3.1.
Grade	The counterparty grade calculated in accordance with the table in PINS Rule A3.1.1.
Gross Outstanding Claims	In relation to an Insurer as at a date, the amount of the Insurer's provision for claims incurred but not yet paid as at that date, including claims incurred but not yet reported and provision for direct and indirect claims settlement expenses in respect of those claims.
Gross Written Premium	(1) In relation to a Contract of Insurance, the amount of premium payable by the insured in respect of that contract, excluding any excise taxes levied on premiums and receivable by the Insurer but without any deduction for commissions or other acquisition expenses; and (2) in relation to an Insurer during a period: (A) in respect of General Insurance Business, the aggregate amount of Gross Written Premium in respect of insurance and reinsurance contracts entered into by the Insurer as Insurer during that period, together with any adjustments arising in that period in respect of contracts effected in previous periods; and (B) in respect of Long Term Insurance Business, the aggregate amount of Gross Written Premium becoming due for payment in that period.
Insurance Liabilities	General Insurance Business liabilities and Long Term Insurance Business liabilities.
Insurance Risk Requirement	Has the meaning given in PINS Rule 3.8.1.
Internal Model	The model of an Insurer approved by the Regulatory Authority under PINS Rule 3.9.1 for the purposes of calculating all or part of the Insurer's Minimum Capital Requirement.
Invested Asset	Any asset, right or interest of an Insurer that is held by the Insurer for the primary purpose of generating revenues or for directly providing funds to meet the Insurer's cash outflows in the future.
Investment Linked Insurance	Contracts of Insurance where the benefits are wholly or partly to be determined by reference to the value of, or the income from, Property of any description (whether or not specified in the contracts) or by reference to fluctuations in, or in an index of, the value of Property of any description (whether or not so specified).
Investment Risk Requirement	Has the meaning given in PINS Rule 3.6.1.
Long Term Insurance Fund	A fund in respect of Long Term Insurance Business established and maintained in accordance with PINS chapter 5.
Minimum Capital Requirement	The amount of capital an Insurer must hold, calculated in accordance with PINS Rule 3.3.1.
Net Outstanding Claims	In respect of an Insurer as at a date, Gross Outstanding Claims of the Insurer as at that date, less the amount of reinsurance and other recoveries expected to be received in respect of those claims.
Net Written Premium	In respect of an Insurer during a period, Gross Written Premium of the Insurer during that period less the amount of premium on reinsurance contracts entered into by the Insurer as cedant during the same period.
Non-Cellular Assets	Assets of a Protected Cell Company which are not Cellular Assets.
Non-Cellular Base Capital Requirement	Has the meaning given to it in PINS Rule 7.2.2.
Non-Cellular Eligible Capital	The non-cellular capital of an Insurer who is a Protected Cell Company calculated in accordance with PINS Rules 7.3.1 and 7.3.2.
Non-Cellular Liabilities	Liabilities that may not be settled by disposition of Cellular Assets.
PINS	The Prudential-Insurance Rulebook.
PINS Category	The collective term for PINS Category 1, PINS Category 2, PINS Category 3 and PINS Category 4.
PINS Category 1	General Insurance Business that falls under General Insurance Categories 1 and 2.
PINS Category 2	General Insurance Business that falls under General Insurance Categories 3 and 18.
PINS Category 3	General Insurance Business that falls under General Insurance Categories 4, 5, 6, 7, 8, 9, 16 and 17.
PINS Category 4	General Insurance Business that falls under General Insurance Categories 10, 11, 12, 13, 14 and 15.
Policy Benefit	An amount payable under an insurance contract as a result of the occurrence of an event insured under the contract.
Premium Liability	The liability referred to in PINS Rule 8.6.7.
Owner's Equity	In relation to a Takaful Entity, the amount of the assets, less the liabilities, of the Takaful Entity that are not attributed to the Takaful Fund(s) of the Insurer.
Reference Date	The date at which the Financial Condition Report is signed by the Approved Actuary according to PINS Rule 9.3.1(2).
Related	In respect of one entity, the first entity, being in the position relative to that entity of: (A) a second entity that is a Subsidiary, Associate or Holding Company of the first entity; (B) a second entity that is a Subsidiary or Associate of the Holding Company of the first entity; (C) a Director or officer of the first entity or of an entity that is Related to the first entity by reason of (A) or (B) above; (D) the spouse or minor child of a natural Person referred to in (C) above; or (E) a company that is a Subsidiary of or subject to significant influence by or from a natural Person referred to in (C) or (D) above.
Relevant Requirement	Has the meaning given to it in Article 84 of the FSR.
Relevant Scheme	Has the meaning given to it in Article 94(4).
Reporting Actuary	The actuary preparing and signing off an independent actuarial report commissioned under PINS section 9.4.
Risk Based Capital Requirement	The requirement calculated in accordance with PINS Rule 3.5.1.
Risk Management Strategy	A high level, strategic document intended to describe the key elements of an Insurer's risk management policy, including the risk appetite, policies, procedures, management responsibilities and controls and prepared in accordance with PINS section 2.3.
Solvency Reference Date	A date at which an Insurer's compliance with the capital adequacy requirements in PINS chapter 3 is assessed.
Scheme Report	Has the meaning given to it in Article 97.
Takaful Business	That portion of Insurance Business conducted by a Takaful Entity that constitutes Islamic Financial Business.
Takaful Entity	Has the meaning given to it by PINS Rule 1.1.3.
Takaful Fund	A fund in respect of Takaful Business established and maintained in accordance with PINS chapter 6.

Appendix 6 — Proposed Amendments to Interpretation and Application Rulebook (INAP)