12.4.1 Application

TRR 12.4.2 (Takaful Operator with business in run-off to notify AFSA of certain contracts) applies only to a Takaful Operator that:

• (a) is in run-off as regards its entire Takaful Business or the entire Takaful Business of a Family Takaful Fund;
• (b) has provided a notice to the AFSA in accordance with TRR 12.2.2 (Takaful Operators to give notice of decision to cease business) in respect of its entire Takaful Business or the entire Takaful Business of a Family Takaful Fund; or
• (c) has received a written notice from the AFSA withdrawing the Takaful Operator’s Licence to effect Takaful Contracts in respect of its entire Takaful Business or the entire Takaful Business of a Family Takaful Fund.

12.4.2. Takaful Operator with business in run-off to notify AFSA of certain contracts

(1) A Takaful Operator to which this Rule applies must:

(a) within 10 business days after the day its Takaful Business enters into run-off, tell the AFSA about the existence and principal features of any notifiable contract that existed at the time the business entered into run-off; and

(b) within 10 business days after the day it enters into a notifiable contract in relation to its Takaful Business in runoff, tell the AFSA about the existence and principal features of the contract.

(2) To remove any doubt, subrule (1) (b) applies whether or not the Takaful Business is conducted through a Family Takaful Fund that is in run-off.

(3) In this rule: notifiable contract means:

(a) a contract with a person related to the Takaful Operator, other than a Takaful Contracts effected by the Takaful Operator before going into run-off;

(b) a contract with any person relating to the management of all or any of the Takaful Business in run-off;

(c) a contract with any person for reinsurance of all or any of the Takaful Business in runoff; or

(d) any other contract with a person mentioned in paragraph (b) or (c) or a person related to such a person.