Common use of Nature and Scope of Activities Clause in Contracts

Nature and Scope of Activities. This section outlines the nature and scope of activities within which Cayman Islands National Insurance Company (CINICO) is to operate during the year. CINICO’s activities involve both the provision of health insurance and the administration of health benefits on behalf of the Ministry of Health, Environment, Youth, Sports and Culture. CINICO is a licensed Class A insurance company, and as such, must abide by the relevant laws for health insurance companies in the Cayman Islands. All Class A insurance companies are regulated by the Cayman Islands Monetary Authority, which includes the submission and approval of a business plan. In the Cayman Islands National Insurance Company Ltd. business plan is a commitment that the Company will maintain capitalization at $3 million. The Cayman Islands Government guarantees this commitment. The scope of Cayman Islands National Insurance Company (CINICO) activities is as follows: • Provision of health insurance to civil servants, pensioners, other government entities, seamen and veterans and individuals qualifying as elderly, health impaired or low income residents; and • Administration on behalf of the Ministry of Health, Environment, Youth, Sports and Culture, for local and overseas health benefits of indigents since February 1, 2004. • Administration on behalf of the Ministry of Health, Environment, Youth, Sports and Culture, for overseas health benefits of seamen and veterans since July 1, 2007.