The Authority may issue guidance notes or circulars to clarify difficulties in applying or interpreting insurance business control and conduct requirements. On a fee-backed application, it may relax strict enforcement of any requirement where reasons are recorded in writing.

Regulation 21 authorises the Authority to specify norms, procedures, processes and modes of compliance for IIOs or IIIOs, as relevant, to implement the regulatory framework and incidental matters. These operational requirements apply to management control, administrative control and market conduct in the insurance business.

Every IIO must furnish information concerning regulatory requirements to the Authority or policyholders in the prescribed manner, at prescribed intervals and in prescribed forms. IIOs must follow fairness to policyholders, international best practices and transparency to strengthen trust in insurance mechanisms and promote insurance awareness and literacy.

Every IIO and IIIO must formulate a Board-approved policy safeguarding policyholders' interests. The policy must address insurance awareness, fulfilment of policyholder obligations, prevention of mis-selling and unfair practices, accurate product disclosures, service parameters, grievance redressal, complaint resolution, sale and service practices, and transparent claims settlement. Every IIO must publish and update Board-approved service parameters and turnaround times on its website, and submit the policy when directed.

IIOs and IIIOs must issue advertisements using fair, honest and transparent practices that preserve public confidence. Advertising communications must be relevant, fair, simple, truthful, accurate, capable of substantiation, and compliant with applicable advertising standards and Indian law. Each entity is responsible for the accuracy of advertisements issued on its behalf. An IIO must ensure that policies issued to policyholders conform to its advertisements.

Every IIO permitted to transact life insurance business and dealing with pension and annuity products must design those products to address policyholders' actual needs rather than operate as symbolic offerings. An IIO dealing with pension and annuity products must not pay or undertake to pay less than the minimum amount specified by the Authority.

Every IIO permitted to transact life insurance business must disclose the conditions under which a life insurance policy acquires surrender value and the formula for computing it from paid-up value. It must also maintain provisions for timely surrender-value payments in respect of linked and non-linked life insurance policies, based on paid-up values.

Life insurance IIOs must maintain separate funds for participating and non-participating policyholders and adopt a Board-approved policy governing surplus distribution. Relevant surplus-distribution provisions must be disclosed to policyholders and reflected in the IIO's books of account. The approved policy must be furnished to the Authority whenever directed.

Confidential information may be disclosed only on a written request for lawful duties and is subject to custodial protection, professional secrecy and consent safeguards. Non-public information requires a case-specific shareability assessment based on the purpose of the request, non-proprietary character, confidentiality protections and reciprocity. Disclosure must account for potential commercial harm, competitive misuse, and risks to the stability of regulated entities or the insurance industry. Multilateral Memorandum of Understanding obligations prevail where inconsistent.

Every IIO must manage outsourcing risks prudently to prevent adverse systemic effects and protect policyholder interests. Outsourced activities require effective oversight, responsive management practices, adequate due diligence and protection of policyholder data privacy. Before sharing policyholder-related data, an IIO must execute a non-disclosure agreement with the outsourcing agency or include equivalent confidentiality provisions in the service level agreement. Further outsourcing requirements may be specified by the Authority.

Every IIO must maintain a Board-approved policy governing procedures for opening and closing places of business. Prior approval of the Authority is required before opening or closing a location. On closure, the IIO must mitigate associated risks by providing alternative facilities to existing policyholders, maintaining uninterrupted access to insurance services, and ensuring continued servicing of claims.

Every IIO must maintain a Board-approved policy for payment of commissions to insurance agents, intermediaries and insurance intermediaries. The policy must protect policyholders' interests, specify services qualifying for commissions or incentives, prescribe minimum and maximum entitlements, and include cost-efficiency measures. Commission payments must be commensurate with the IIO's policy on expenses of management. The approved policy must be submitted when directed, and additional specified commission-payment requirements must be met.

Every IIO must maintain a Board-approved policy for allocating direct management expenses and apportioning indirect management expenses among insurance segments. The policy must cover applicable expenses, allocation or apportionment bases, acquisition and renewal expenses, and implementation requirements. It must be submitted to the Authority when directed. An unincorporated IIO may adopt its parent entity's Board-approved policy where it meets the required regulatory standards.

Merger, amalgamation, or transfer involving an IIO requires prior approval of the Authority. The proposed merged entity must maintain an available solvency margin not lower than the required solvency margin, while the restructuring scheme must comply with applicable laws and regulations and protect the best interests of policyholders.

Regulation 8 empowers the Authority to issue guidelines concerning the issuance and allocation of capital of IIOs. This authority operates within the regulatory framework for management control, administrative control and market conduct of insurance business in International Financial Services Centres. Capital issuance and allocation requirements may therefore be prescribed through guidelines.

Regulation 7 authorises the Authority to specify hair-cut norms for different types of instruments when computing the Available Solvency Margin. Instrument-specific hair-cut parameters fall within the Authority's regulatory discretion for solvency-margin computation in insurance business.

An IIO must inform the Authority of proposals capable of causing a change in control and of proposed portfolio changes; capital issuances or allotments require prior approval, as do portfolio changes beyond Authority-set limits. Changes must preserve seniority of claims, ranking policyholders ahead of creditors, subordinated debt holders, preference shareholders and equity shareholders. Guarantees affecting that priority are prohibited. Prior approval is required for preference-share dividends or subordinated-debt interest payments where solvency or net-loss conditions apply.

Regulation 5 requires an IIO to endeavour to prevent any entity from exercising direct or indirect control through significant ownership or interest. The requirement also covers portfolio transfers causing a change in the IIO's shareholding pattern, thereby addressing control effected through ownership-related changes.

Unincorporated IIOs are excluded from the Chapter II requirements governing changes in shareholding pattern and management control. Their Parent Entities must immediately notify the Authority of any such changes and ensure that undertakings concerning assigned capital or solvency margin and insurance or re-insurance liabilities remain valid after the change.

Regulation 3 defines benefits, commission, control, capital, expenses of management, confidential information, domestic and foreign entities, regulated entities, and subordinated debt for insurance business in an International Financial Services Centre. Control extends to direct or indirect rights to appoint directors or influence management or policy decisions. Expenses of management include operating and commission-related costs but exclude specified taxes. Confidential information is subject to foreign secrecy requests or agreements and applicable domestic law. Undefined expressions retain meanings assigned under the Act and related legislation.