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Contents

Part I Preliminary

Part II requirements relating to and duties of members of lloyd’s carrying on insurance business under scheme

Part III requirements relating to and duties of Service companies

Part IIIA VALUATION OF ASSETS

Part IIIB VALUATION OF LIABILITIES

Part IV Requirements relating to and duties oF Administrator

Part V Miscellaneous

FIRST SCHEDULE Permitted insurance business

SECOND SCHEDULE Particulars to be furnished by applicant for registration as agent for member of Lloyd’s

THIRD SCHEDULE Particulars to be contained in register of members of Lloyd’s maintained by administrator

FOURTH SCHEDULE Particulars to be contained in register of Service Companies maintained by administrator

FIFTH SCHEDULE

Legislative History

 
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On 28/07/2015, you requested the version in force on 04/11/2010 incorporating all amendments published on or before 04/11/2010.
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PART III
requirements relating to and duties of Service companies
Requirements for Service Company
5.  No person shall act as an agent in Singapore for any member of Lloyd’s under these Regulations unless it is a company registered under the Companies Act (Cap. 50) and meets the following requirements:
(a)
the company must be registered with the administrator under regulation 6; and
(b)
the company must, unless the Authority otherwise permits, be —
(i)
a subsidiary of a managing agent at Lloyd’s; or
(ii)
a subsidiary of the holding company of a managing agent at Lloyd’s.
Registration of Service Company
6.
—(1)  Any company that wishes to act as an agent in Singapore for any member of Lloyd’s under these Regulations shall apply to be registered with the administrator.
(2)  An application for registration under paragraph (1) shall be in such form and contain such particulars as the administrator may determine.
(3)  Upon receiving an application under paragraph (1), the administrator shall —
(a)
notify the Authority in writing of the application and furnish the Authority in writing with the particulars of the applicant set out in the Second Schedule and such other information as the Authority may require; and
(b)
register the applicant on the date of expiry of the period of 30 days commencing on the day immediately following the day on which the particulars and information referred to in sub-paragraph (a) were furnished to the Authority pursuant to the last request made by the Authority under that sub-paragraph, unless the Authority objects to the registration before that date of expiry.
Duties of Service Company
6A.
—(1)  No Service Company shall, without the approval of the Authority —
(a)
enter into any contract of insurance on behalf of the members of any syndicate;
(b)
cause or permit any amendment or alteration to be made to its memorandum or articles of association; or
(c)
participate in any pool business other than pools formed by the Singapore insurance industry to cover special risks.
(2)  No Service Company shall write any insurance business, unless it has reason to believe that suitable arrangements for the reinsurance of the business written in Singapore are in place at all times and that the reinsurers are of good security.
(3)    Every Service Company shall immediately inform the Authority if —
(a)
it becomes aware that any arrangement referred to in paragraph (2) has been, is being or is likely to be rendered inadequate or ineffective; or
(b)
for any accounting period, the permitted trust outgoings of any insurance fund established by it under regulation 11 exceed the premium receipts of that insurance fund.
Cancellation of registration of Service Company
6B.
—(1)  The Authority may, on any of the grounds set out in paragraph (2), in writing direct the administrator to cancel the registration of any Service Company.
(2)  The grounds referred to in paragraph (1) are —
(a)
that the Service Company has not commenced business within 12 months after being registered under regulation 6;
(b)
that the Service Company has ceased to act as an agent in Singapore for any member of Lloyd’s;
(c)
that it appears to the Authority that the Service Company has failed to satisfy an obligation to which it is subject by virtue of these Regulations;
(d)
that the Service Company 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;
(e)
that the Service Company is carrying on its business in a manner likely to be detrimental to the interest of the policy owners of insurance policies issued by any member of Lloyd’s or syndicate for which it acts as an agent;
(f)
that the Service Company has failed to ensure that suitable reinsurance arrangements have been effected as required under regulation 6A(2);
(g)
that the Service Company has contravened any of the provisions of the Act, any of the regulations made thereunder or any direction given by the Authority under the Act or the regulations made thereunder;
(h)
that any of the officers of the Service Company holding a managerial or executive position has been convicted of any offence under the Act or the regulations made thereunder;
(i)
that the Service Company has, in its application for registration under regulation 6(1), furnished false, misleading or inaccurate information, or concealed or failed to disclose material facts; or
(j)
that it is in the public interest to cancel the registration of the Service Company.
(3)  Before the Authority directs the administrator to cancel the registration of a Service Company under paragraph (1), the Authority shall —
(a)
give the administrator and the Service Company notice in writing of its intention to do so; and
(b)
in the notice referred to in sub-paragraph (a), call upon the administrator and the Service Company to show cause, within such time as may be specified in the notice, why the Service Company’s registration should not be cancelled.
(4)  If the administrator or the Service Company —
(a)
fails to show cause within the time given to 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 administrator of the date on which the cancellation of registration is to take effect.
(5)  Notwithstanding the cancellation of the registration of a Service Company under this regulation, so long as the member of Lloyd’s or syndicate for which the Service Company acts as an agent remains under any liability in respect of insurance policies entered into by the Service Company, the Service Company shall take such action as it considers necessary or as may be required by the Authority to ensure that —
(a)
reasonable provision has been or will be made for that liability; and
(b)
adequate arrangements exist or will exist for payment of premiums and claims on those policies.
(6)  Without prejudice to the generality of regulation 14(1), if a Service Company fails to comply with paragraph (5), the administrator shall use all reasonable efforts to procure, in respect of any liability or policies referred to in paragraph (5), the making of —
(a)
reasonable provision for such liability; and
(b)
adequate arrangements for payment of premiums and claims on those policies,
including but not limited to co-ordinating with or arranging for Lloyd’s or any other person to make such provision and arrangements in place of the Service Company.
(7)  Where a direction of cancellation under paragraph (1) becomes effective, the Service Company shall, as from the date the cancellation of registration takes effect, cease to act as an agent for any member of Lloyd’s carrying on insurance business in Singapore, otherwise than by the collection or receipt of premiums on insurance policies effected before that date.
(8)  Paragraph (7) does not prejudice —
(a)
any right or claim of any policy owner or other person against the member of Lloyd’s or syndicate for which the Service Company had acted as an agent; and
(b)
any right or claim of the member of Lloyd’s or syndicate for which the Service Company had acted as an agent against any policy owner or other person.
(9)  Notwithstanding the cancellation of the registration of a Service Company under this regulation, regulations 13 and 21 shall, unless the Authority otherwise directs, continue to apply in relation to the Service Company and the administrator, respectively, in respect of matters that occurred before the cancellation, as if the registration had not been cancelled.
Officers of Service Company
7.
—(1)  A Service Company shall —
(a)
appoint as its chief executive officer an individual who shall be resident in Singapore; and
(b)
appoint in Singapore at least one underwriter who has at least 6 years (or any shorter period as the Authority may allow) experience in underwriting any specialised risk of a type set out in the First Schedule.
(2)  No Service Company shall appoint any person as its chief executive officer or a director unless the Service Company satisfies the Authority that the person is a fit and proper person to be so appointed and has obtained the approval of the Authority.
(3)  Where a Service Company has obtained the approval of the Authority to appoint a person as its chief executive officer or director under this regulation, the person may be re-appointed as chief executive officer or director, as the case may be, of the Service Company immediately upon the expiry of the earlier term without the approval of the Authority.
(4)  In this regulation, “chief executive officer”, in relation to the Service Company, means any person by whatever name called, employed by the Service Company to be directly responsible for the conduct of the Service Company’s duties, functions and operations in Singapore or elsewhere.
Premises of Service Company
8.  A Service Company shall only conduct business at the registered office of the administrator or at such other premises as may be approved by the Authority.
New policies
9.  A Service Company shall inform the Authority of any intention by it, on behalf of any member of Lloyd’s of which it is an agent under these Regulations, to introduce into Singapore policies insuring risks of a nature which have not been previously underwritten in the Singapore general insurance market.
Duty to respond to notices and legal processes
10.  A Service Company shall be responsible for accepting and responding to notices and legal processes to members of Lloyd’s carrying on insurance business in Singapore of which the Service Company is an agent under these Regulations.
Establishment and maintenance of separate insurance funds
11.
—(1)  A Service Company shall, on behalf of each member of Lloyd’s of which it is an agent under these Regulations, establish and maintain in Singapore, in respect of each syndicate in relation to which it acts for that member, the following insurance funds in respect of policies issued by the member in the course of carrying on insurance business in Singapore:
(a)
an insurance fund for Singapore policies; and
(b)
an insurance fund for offshore policies.
(2)  A Service Company shall pay all premium receipts received by it in respect of policies issued by any member of Lloyd’s in respect of which it is an agent under these Regulations into the respective insurance fund established under paragraph (1).
(3)  The premium receipts of different members of Lloyd’s carrying on insurance business in Singapore through the same Service Company or different Service Companies may be placed or pooled in the same bank account or may be otherwise mixed together except that the assets of an insurance fund for Singapore policies must not be mixed with the assets of an insurance fund for offshore policies.
(4)  The assets of the insurance funds established under paragraph (1) shall only be used to meet permitted trust outgoings.
(5)  During any year, there shall remain in the respective insurance funds, assets not less in value than the amount of premiums received respectively for policies issued by the members of Lloyd’s as members of the syndicate concerned in the course of carrying on insurance business in Singapore under these Regulations in the same year, less the amount of permitted trust outgoings attributable to the respective policies paid during the year.
(6)  Subject to paragraph (7), a Service Company may, at any time, transfer all or any assets of an insurance fund established under paragraph (1) to such premiums trust funds outside Singapore as the Authority may permit if, and only if —
(a)
there is a surplus of cash and deposits in the insurance fund over the claims liabilities of the syndicate concerned in respect of the insurance fund; and
(b)
immediately after such transfer, the cash and deposits in the insurance fund will not fall below the claims liabilities of the syndicate concerned in respect of the insurance fund.
(7)  For the purposes of paragraph (6) —
(a)
except as provided in sub-paragraph (b), the amount of assets that the Service Company may transfer shall not exceed the surplus of cash and deposits in the insurance fund over the claims liabilities of the syndicate concerned in respect of the insurance fund, as stated in —
(i)
the audited statement of accounts for the last accounting period lodged with the Authority in accordance with regulation 21; or
(ii)
the statement of accounts for the last quarter lodged with the Authority in accordance with regulation 21,
whichever is the lower; and
(b)
where an audited statement of accounts as at a date after the end of the period to which the statement of accounts referred to in sub-paragraph (a) relates has been lodged with the Authority, the amount of assets that the Service Company may transfer shall not exceed the surplus of cash and deposits in the insurance fund over the claims liabilities of the syndicate concerned in respect of the insurance fund as stated in the first-mentioned audited statement of accounts.
(7)  [Deleted by S 814/2004 wef 01/01/2005]
Registers maintained by Service Company
12.  Every Service Company shall maintain —
(a)
a register of all Singapore policies; and
(b)
a register of all offshore policies,
issued on behalf of the members of Lloyd’s carrying on insurance business in Singapore under these Regulations in respect of which it is appointed as an agent.
Accounts and statement of Service Company
13.
—(1)  Every Service Company shall prepare, for each syndicate for which it acts as an agent or, where it acts as an agent for more than one syndicate, those syndicates on a consolidated basis with the approval of the Authority —
(a)
for each accounting period and subject to such modifications or variations as may be agreed to by the Authority, the statements of accounts and other statements for each insurance fund established and maintained under regulation 11(1) in Forms 1, 2 and 3 in the Fifth Schedule;
(b)
for each accounting period and subject to such modifications or variations as may be agreed to by the Authority, the statements of accounts for each insurance fund established and maintained under regulation 11(1) in Forms 3 (excluding the Notes) and 4 in the Fifth Schedule; and
(c)
for each quarter and subject to such modifications or variations as may be agreed to by the Authority, the statements of accounts for each insurance fund established and maintained under regulation 11(1) in Forms 1, 2 and 3 (excluding the Notes and Annexes) in the Fifth Schedule.
(2)  Every Service Company shall have the accounts of each insurance fund audited for each accounting period for which statements of accounts and other statements are prepared in accordance with paragraph (1)(a), and may exclude the Annexes to such statements from the audit.
(2A)  In any document which a Service Company is required to prepare in accordance with these Regulations in relation to a syndicate, the value or amount given for an asset or a liability relating to the business of the syndicate written by the Service Company shall be the value or amount of that asset or liability, as the case may be, as determined in accordance with regulations 13A to 13M.
(3)  A Service Company shall, in respect of documents prepared under paragraph (1)(a), lodge a certificate in Form 5 in the Fifth Schedule, which shall be signed by 2 directors of the Service Company and by or on behalf of the chief executive officer of the Service Company.
(4)  [Deleted by S 665/2010 wef 04/11/2010]
(5)  The auditor of the statements of accounts prepared under paragraph (1)(a) shall enclose, with the statements of accounts, a report stating his opinion of the statements of accounts and a supplementary report in Forms 6 and 7 in the Fifth Schedule, respectively.
(6)  Every Service Company shall, within such reasonable time as may be specified by the administrator in order for the administrator to comply with regulation 21, provide the administrator with —
(a)
the statements of accounts and other documents prepared in accordance with paragraphs (1) to (5); and
(b)
information on any matter related to its activities as agent for any member of Lloyd’s under these Regulations, as the administrator may require.