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Contents  

Long Title

Part I PRELIMINARY

Part II CONDUCT OF INSURANCE BUSINESS

General restriction on insurers

Registration and authorisation of insurers

Deposits, registers of policies and insurance funds

Miscellaneous requirements as to conduct of business

Part IIA FOREIGN INSURER SCHEMES

Part IIB INSURANCE INTERMEDIARIES

General

Conduct of Insurance Broking Business

Part III RETURNS, INSPECTIONS AND INVESTIGATIONS

Returns

Inspections and Investigations

Part IIIA ASSISTANCE TO FOREIGN REGULATORY AUTHORITIES

Part IIIAA TRANSFER OF BUSINESS AND SHARES, RESTRUCTURING OF REGISTERED INSURER AND WINDING UP

Division 1 — Voluntary scheme for transfer of business

Division 2 — Compulsory transfer of business

Division 3 — Compulsory transfer of shares

Division 4 — Power to restructure capital

Division 5 — Winding up

Division 6 — Miscellaneous

Part IIIB APPEALS

Part IIIC NOMINATION OF BENEFICIARIES

Part IV MISCELLANEOUS AND GENERAL

Administration and enforcement

Miscellaneous amendments of law

Supplementary

FIRST SCHEDULE Definition of Insurance Terms

SECOND SCHEDULE Specified Provisions

Legislative History

Comparative Table

 
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Registration and authorisation of insurers
Registration by Authority
8.
—(1)  A person who desires to carry on insurance business in Singapore as an insurer shall —
(a)
apply in writing to the Authority for registration under this section; and
(b)
furnish such information as the Authority may require.
[11/86]
(2)  Upon receiving an application under subsection (1), the Authority shall consider the application and may, subject to section 9, register the applicant with or without conditions or refuse to register the applicant.
[11/86]
(3)  The Authority may register the applicant as a direct insurer, reinsurer or captive insurer.
[32/93]
(4)  The Authority shall cause notice of any registration or change of name of a Singapore insurer to be published in the Gazette.
[32/93]
Authorisation by Authority
8A.
—(1)  A person carrying on reinsurance business outside Singapore may apply to the Authority to be authorised for the purposes of this Act in such form and manner as the Authority may prescribe.
(2)  The Authority may require the applicant to furnish it with such information or documents as the Authority considers necessary in relation to the application.
(3)  The Authority may authorise the applicant with or without conditions, or refuse to authorise the applicant on any prescribed ground or on such other ground as the Authority thinks fit.
(4)  The Authority may authorise the applicant as a general reinsurer or life reinsurer or both.
(5)  The Authority shall cause notice of any authorisation or change of name of an insurer authorised under this section to be published in the Gazette.
[23/2003 wef 01/01/2004]
Requirements before registration
9.
—(1)  The Authority shall not register any applicant under section 8 unless the applicant —
(a)
is a company or a company incorporated outside Singapore which has an established place of business in Singapore or is a society registered under the Co-operative Societies Act (Cap. 62); and
(b)
[Deleted by Act 16/2011 wef 29/04/2011 wef 01/05/2011]
(c)
satisfies such financial requirements as may be prescribed.
[16/2011 wef 01/05/2011]
[23/2003 wef 01/01/2004]
(2)  For the purposes of subsection (1)(c), the Authority may prescribe financial requirements of different forms or amounts for different classes of insurance business or for different types of insurers.
[11/86]
Conditions of registration or authorisation
10.
—(1)  The Authority may at any time add to, vary or revoke any existing conditions of registration or authorisation of an insurer or impose any conditions thereto.
[22/73; 11/86]
(2)  Any insurer which fails to comply with any of the conditions imposed by the Authority under subsection (1), section 8(2) or 8A(3) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day during which the offence continues after conviction.
[22/73; 11/86; 30/99; 41/2001]
Annual fees
11.
—(1)  Every registered insurer and authorised reinsurer shall pay to the Authority such annual fees as may be prescribed.
[11/86]
(2)  The Authority may prescribe different annual fees for different classes of insurance business or for different types of registered insurers or authorised reinsurers.
[11/86]
(3)  The Authority may exempt wholly or in part any registered insurer or authorised reinsurer from the payment of the annual fees prescribed under this section.
[11/86]
Cancellation of registration
12.
—(1)  The Authority may by order, at the request of the insurer or on any of the grounds set out in subsection (2), cancel the registration of any insurer either wholly or in respect of a class of business, as the case may be.
[11/86]
(2)  The grounds referred to in subsection (1) are —
(a)
that the insurer has not commenced business within 12 months after being registered;
(b)
that the insurer has ceased to carry on insurance business in respect of any class of business;
(c)
that it appears to the Authority that the insurer has failed to satisfy an obligation to which it is subject by virtue of this Act;
(d)
that there exists a ground on which the Authority would be prohibited by section 9 from registering the insurer;
(e)
that the insurer proposes to make, or has made, any composition or arrangement with its creditors or has gone into liquidation or has been wound up or otherwise dissolved;
(f)
that the insurer is carrying on its business in a manner likely to be detrimental to the interests of its policy owners;
(g)
that the insurer is unable to meet its obligations;
(h)
that the insurer has failed to effect satisfactory reinsurance arrangements;
(i)
that the insurer has contravened any of the provisions of this Act or any condition imposed or any direction given by the Authority under this Act;
(j)
that any of the officers of the insurer holding a managerial or executive position has been convicted of any offence under this Act;
(k)
that the insurer has furnished false, misleading or inaccurate information, or has concealed or failed to disclose material facts in its application for registration; or
(l)
that it is in the public interest to cancel the registration.
[11/86]
(3)  Before cancelling the registration of an insurer under this section otherwise than at the request of the insurer, the Authority shall —
(a)
give the insurer notice in writing of its intention to do so; and
(b)
in the notice referred to in paragraph (a), call upon the insurer to show cause within such time as may be specified in the notice why his or its registration should not be cancelled.
[41/2001]
(4)  If the insurer referred to in subsection (3) —
(a)
fails to show cause within the time given to him or it to do so or within such extended period of time as the Authority may allow; or
(b)
fails to show sufficient cause,
the Authority shall give notice in writing to the insurer of the date on which the cancellation of registration is to take effect.
[41/2001]
(5)  Any insurer who is aggrieved by a decision of the Authority under subsection (1) to cancel his registration as an insurer otherwise than at his request may, within 30 days of the decision of the Authority, appeal to the Minister in writing in accordance with Part IIIB.
[41/2001]
(6)  Notwithstanding the cancellation of the registration of an insurer under this section, so long as the insurer remains under any liability in respect of insurance policies belonging to the class of insurance business to which the registration relates, the insurer shall take such action as it considers necessary or as may be required by the Authority to ensure that reasonable provision has been or will be made for that liability and that adequate arrangements exist or will exist for payment of premiums and claims on those policies.
[11/86]
Withdrawal of authorisation
12A.
—(1)  The Authority may by order, at the request of the insurer or on any of the grounds set out in subsection (2), withdraw the authorisation of any insurer either wholly or in respect of a class of business, as the case may be.
(2)  The grounds referred to in subsection (1) are —
(a)
that the insurer has not commenced the business of providing reinsurance of liabilities under insurance policies to persons in Singapore within 12 months after being authorised;
(b)
that the insurer has ceased to carry on the business of providing reinsurance of liabilities under insurance policies to persons in Singapore;
(c)
that it appears to the Authority that the insurer has failed to satisfy an obligation to which it is subject by virtue of this Act;
(d)
that the insurer proposes to make, or has made, whether in Singapore or elsewhere, any composition or arrangement with its creditors or has gone into liquidation or has been wound up or otherwise dissolved;
(e)
that a receiver, receiver and manager, judicial manager, or such other person having the powers and duties of a receiver, receiver and manager or judicial manager, has been appointed, whether in Singapore or elsewhere, in relation to, or in respect of any property of, the insurer or any of its shareholders having control of the insurer;
(f)
that there is a change of a person having control of the insurer and —
(i)
the new person having control of the insurer is not a fit and proper person; or
(ii)
the Authority is not satisfied as to the financial standing of the insurer after the change;
(g)
that the insurer is carrying on its business in a manner likely to be detrimental to the interests of its policy owners, whether in Singapore or elsewhere;
(h)
that the insurer is unable to meet its obligations, whether in Singapore or elsewhere;
(i)
that the insurer has contravened any of the provisions of this Act or any condition imposed or direction given by the Authority under this Act;
(j)
that any of the officers of the insurer holding a managerial or executive position has been convicted of any offence under this Act;
(k)
that the insurer has furnished false, misleading or inaccurate information, or has concealed or failed to disclose material facts in its application for authorisation; or
(l)
that it is in the public interest to withdraw the authorisation.
(3)  Before withdrawing the authorisation of an insurer under this section otherwise than at the request of the insurer, the Authority shall —
(a)
give the insurer notice in writing of its intention to do so; and
(b)
in the notice referred to in paragraph (a), call upon the insurer to show cause within such time as may be specified in the notice why its authorisation should not be withdrawn.
(4)  If the insurer referred to in subsection (3) —
(a)
fails to show cause within the time specified in the notice under that subsection or within such extended period of time as the Authority may allow; or
(b)
fails to show sufficient cause,
the Authority shall give notice in writing to the insurer of the date on which the withdrawal of authorisation is to take effect.
(5)  Any insurer which is aggrieved by a decision of the Authority under subsection (1) to withdraw its authorisation as an insurer otherwise than at its request may, within 30 days of the decision of the Authority, appeal to the Minister in writing in accordance with Part IIIB.
(6)  Notwithstanding the withdrawal of the authorisation of an insurer under this section, so long as the insurer remains under any liability in respect of insurance policies belonging to the class of insurance business to which the authorisation relates, the insurer shall take such action as it considers necessary or as may be required by the Authority to ensure that reasonable provision has been or will be made for that liability and that adequate arrangements exist or will exist for the payment of premiums and claims on those policies.
(7)  For the purposes of this section —
(a)
a person shall be regarded as having control of an authorised reinsurer if the person alone or acting together with any associate or associates would —
(i)
acquire or hold, directly or indirectly, 50% or more of the issued share capital of the insurer; or
(ii)
control, directly or indirectly, 50% or more of the voting power in the insurer;
(b)
a reference to voting power in an authorised reinsurer is a reference to the total number of votes that might be cast in the general meeting of the insurer; and
(c)
the following persons are associates of a person:
(i)
the person’s spouse or parent or remoter lineal ancestor, son, daughter or remoter issue, brother or sister of the person;
(ii)
any partner of the person;
(iii)
any corporation of which the person is an officer;
(iv)
where the person is a corporation, any officer of the corporation;
(v)
any employee or employer of the person;
(vi)
any officer of any corporation of which the person is an officer;
(vii)
any employee of any individual of whom the person is an employee;
(viii)
any corporation whose directors are accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of the person or, where the person is a corporation, of the directors of the person;
(ix)
any corporation in accordance with the directions, instructions or wishes of which, or the directors of which, the person is accustomed or under an obligation, whether formal or informal, to act;
(x)
any corporation in which the person is in a position to control not less than 20% of the voting power in the corporation; and
(xi)
where the person is a corporation, a person who is in a position to control not less than 20% of the voting power in the corporation.
[23/2003 wef 01/01/2004]
Effects of cancellation of registration and withdrawal of authorisation
13.
—(1)  Where an order of cancellation under section 12 or an order of withdrawal under section 12A becomes effective —
(a)
the Authority shall publish a notice of the cancellation or withdrawal, as the case may be, in the Gazette; and
(b)
the insurer shall —
(i)
as from the date of cancellation, cease to carry on insurance business in Singapore of the class in respect of which its registration has been cancelled under this Act; or
(ii)
as from the date of withdrawal, cease to carry on the business of providing reinsurance of liabilities under insurance policies to persons in Singapore of the class in respect of which its authorisation has been withdrawn under this Act,
otherwise than by the collection or receipt of premiums on insurance policies belonging to that class of insurance business effected before the date of cancellation of registration or withdrawal of authorisation, as the case may be, and section 3 shall not apply to the insurer in respect of the collection or receipt of those premiums.
[23/2003 wef 01/01/2004]
(2)  Subsection (1)(b) shall not prejudice the enforcement by any policy owner or person of any right or claim against the insurer or by the insurer of any right or claim against any policy owner or person.
[22/73]
(3)  If the registration of an insurer has been cancelled or has expired, sections 36 and 37 shall, unless the Authority otherwise directs, continue to apply in relation to the insurer in respect of matters that occurred before the cancellation or expiry as if his registration had not been cancelled or had not expired, as the case may be.
[30/99]