CONDUCT OF APPROVED MAT INSURANCE BUSINESS
—(1) Every approved MAT insurer shall make and maintain an insurance deposit of a value not less than $2 million or, where allowed by the Authority, its equivalent in foreign currency in the form of Singapore dollar fixed deposits or foreign currency fixed deposits with a bank licensed under the Banking Act (Cap. 19), in respect of the MAT insurance business for which it is to be approved.
(2) Deposits made by an approved MAT insurer under paragraph (1) shall be in the name of the Authority.
(3) Every approved MAT insurer shall, not later than 7 months after the end of each financial year, make and maintain with the Authority such additional deposit, if any, as is necessary to secure that the aggregate value of the deposit referred to in paragraph (1) shall be —
30% of the gross premiums written in respect of policies issued by the insurer under these Regulations in that financial year; or
30% of the gross liabilities incurred in respect of policies issued by the insurer under these Regulations as at the end of that financial year,
whichever is the highest.
(4) The Authority shall retain any deposit required to be made under paragraphs (1) and (3) until it is satisfied that the approved MAT insurer has ceased to provide MAT insurance to persons in Singapore under these Regulations.
(5) If the Authority is satisfied that the approved MAT insurer has ceased to provide MAT insurance to persons in Singapore under these Regulations, the Authority shall transfer to the insurer the deposits made under paragraphs (1) and (3) less any amount that the Authority determines should be kept available for the purpose of meeting claims against the insurer in respect of policies issued by the insurer under these Regulations.
(6) All income accruing in respect of the deposits made under paragraphs (1) and (3) shall be payable to the insurer making the deposit.
(7) An approved MAT insurer which has made any deposit under this regulation may, at any time, substitute for any asset comprised in the deposit such other assets as the Authority may specify so long as the deposits are not thereby reduced to an amount below that which is required under paragraphs (1) and (3).
(8) If the approved MAT insurer goes into liquidation or is dissolved at its place of incorporation or origin —
it shall immediately notify the Authority; and
(9) The Authority may appoint any person to perform any of its functions under paragraphs (5) and (8)(b).
(10) For the purposes of paragraphs (5) and (8)(b), the costs and expenses of appointing any person under paragraph (9) shall be paid in priority to any claim against the insurer, and all claims against the insurer in respect of policies issued by the insurer under these Regulations shall rank equally between themselves.
—(1) If, in the case of any approved MAT insurer, a bank licensed under the Banking Act (Cap. 19) makes with the Authority an agreement in a form approved by the Authority whereby —
the bank covenants to deposit with the Authority a specified sum in cash on account of the insurer’s deposits under regulation 9; and
the covenant complies with any requirement the Authority sees fit to impose as to the circumstances in which that sum is to be deposited,
then, for the purposes of these Regulations, the insurer shall be treated as having made the deposit under that regulation and the sum so covenanted for shall be recoverable notwithstanding that no consideration is furnished on the agreement.
—(1) Where the Authority is satisfied that there exists a ground on which the Authority would be empowered by regulation 7 to withdraw the approval of an insurer, the Authority may require that assets of the insurer of a value which at any time is equal to the whole or a specified proportion of the amount of its domestic liabilities shall be maintained in Singapore.
(2) The Authority may direct that, for the purposes of any requirement under this regulation, assets of a specified class or description shall or shall not be treated as assets maintained in Singapore.
(3) The Authority may direct that, for the purposes of any requirement under this regulation, the domestic liabilities of an approved MAT insurer, or such liabilities of any class or description, shall be taken to be the net liabilities after deducting any part of them which is reinsured.
(4) A requirement imposed under this regulation may be framed so as to come into effect —
immediately after the day on which it is imposed; or
after the expiration of a specified period,
or such longer period as the Authority may allow.
(5) Subject to paragraph (6), in computing the amount of any liabilities for the purposes of this regulation, all contingent and prospective liabilities shall be taken into account but not liabilities in respect of share capital.
(6) For the purposes of this regulation, the Authority may by notice in writing specify the basis on which the value of any assets and the amount of any liabilities shall be determined.
—(1) The Authority may, in the case of an approved MAT insurer on which a requirement has been imposed under regulation 11, impose an additional requirement that the whole or a specified proportion of the assets to which the requirement under that regulation applies shall be held by a person approved by the Authority for the purposes of the requirement under this regulation as trustee for the insurer.
(2) Regulation 11(4) shall apply to any requirement under this regulation.
(3) Assets of an approved MAT insurer held by a person as trustee for the insurer shall be taken to be held by him in compliance with a requirement imposed under this regulation if, and only if —
they are assets in whose case the insurer has given him written notice that they are to be held by him in compliance with such a requirement; or
they are assets into which assets in whose case the insurer has given him such written notice have, by any transaction or series of transactions, been transposed by him on the instructions of the insurer.
(4) No assets held by a person as trustee for an approved MAT insurer in compliance with a requirement imposed under this regulation shall, so long as the requirement is in force, be released except with the consent of the Authority.
(5) If a mortgage or charge is created by an approved MAT insurer at a time when there is in force a requirement imposed on the insurer by virtue of this regulation, being a mortgage or charge conferring a security on any assets which are held by a person as trustee for the insurer in compliance with the requirement, the mortgage or charge shall, to the extent that it confers such a security, be void against the liquidator and any creditor of the insurer.
—(1) An approved MAT insurer shall, if required by the Authority by notice in writing, submit to the Authority —
the forms of proposal and policy which are for the time being in use by the insurer in respect of the business approved under these Regulations; and
any brochure which are for the time being in use by the insurer for describing the terms or conditions of, or the benefits to be or likely to be derived from, policies.
(2) Where the whole or part of any such form or brochure required under paragraph (1) is not in English, the approved MAT insurer shall submit with it a translation in English.
(3) A requirement made under paragraph (1) shall, unless it is otherwise provided, apply to all such forms and brochures coming into use after the making of the requirement and before the Authority notifies the insurer that the requirement is withdrawn.
(4) If it appears to the Authority, after affording the approved MAT insurer an opportunity to make representations, orally or in writing, that any such form or brochure —
contravenes any provision of these Regulations; or
is in any respect likely to mislead,
the Authority may, by notice in writing, direct the insurer to discontinue the use of the form or brochure in Singapore either immediately or from such date as may be specified in the notice.
(5) No approved MAT insurer shall use, in the course of providing the insurance business so approved to persons in Singapore, a form of proposal which does not have prominently displayed therein a warning that if a proposer does not fully and faithfully give the facts as he knows them or ought to know them, he may receive nothing from the policy.
(6) For each occasion on which any approved MAT insurer uses a copy of a form or brochure in contravention of paragraph (4) or (5), the insurer shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $12,500.
(7) In this regulation, “brochure” includes any leaflet, circular or similar advertising matter, whether printed or not.
14. No approved MAT insurer shall invite any person in Singapore to make an offer or a proposal to enter into a contract of insurance without disclosing to the person the following:
its approved status and that it is approved in respect of MAT insurance business;
that it is providing the insurance service from outside of Singapore and that it has no commercial or physical presence in Singapore; and
that it is subject to limited oversight by the Authority and is required to comply with approval requirements, and not registration requirements, under the Act.
15. Where a notice, an advertisement or other official publication of a corporation approved under regulation 5 which is made to or directed at persons in Singapore —
contains a statement of the authorised share capital of the corporation; and
does not contain a statement of how much of that share capital has been subscribed and how much is paid up,
the corporation shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.