On 18/05/2013,
you requested for the version in force on 18/05/2013
incorporating all amendments published on or before 18/05/2013.
The closest version currently available is that of 29/04/2011.
11. Section 41 of the Insurance Act is repealed and the following sections substituted therefor:
41.
—(1) The Authority may exercise one or more of the powers specified in subsection (2) as appears to it to be necessary where —
(a)
the Authority is satisfied that —
(i)
the affairs of any relevant person are being conducted in a manner which is likely to be detrimental to the public interest or the interest of the policy owners or prejudicial to the interest of the relevant person;
(ii)
a relevant person is or is likely to become insolvent, or that it is or is likely to become unable to meet its obligations, or that it is about to suspend payments;
(iii)
a relevant person has contravened any of the provisions of this Act; or
(iv)
a relevant person has failed to comply with any conditions attached to its registration;
(b)
a relevant person informs the Authority that it is or is likely to become insolvent, or that it is or is likely to become unable to meet its obligations, or that it has suspended or is about to suspend payments;
(c)
a relevant person becomes unable to meet its obligations, or is insolvent, or suspends payments; or
(d)
the Authority considers it in the public interest to do so.
(2) The Authority may exercise all or any of the following powers for the purposes of subsection (1):
(a)
issue such directions to require the relevant person to take any action or to do or not to do any act or thing whatsoever in relation to its business as the Authority may consider necessary, including —
(i)
recruiting such management personnel as may be necessary to enable it to conduct its business in accordance with sound insurance principles;
(ii)
removing any of its directors or any person whom the Authority considers unfit to be associated with it;
(iii)
taking action as to the disposition or recovery of its property;
(iv)
taking any available steps for the recovery by the relevant person, as the case may be, of sums appearing to the Authority to have been illegally or improperly paid;
(v)
in the case of a registered insurer, stopping the renewal or issuance of further policies of the class of business which the insurer is carrying on;
(vi)
making such arrangements with respect to reinsurance as the Authority so specifies; or
(vii)
taking action to make good any default under section 16, 17, 18, 19, 20, 35ZC or 35ZD;
(b)
subject to subsection (3), assume control of and manage such of the business of a registered insurer as the Authority may determine, or appoint one or more persons as statutory manager to do so on such terms and conditions as the Authority may specify.
(3) In the case of a registered insurer incorporated outside Singapore, any appointment of a statutory manager or any assumption of control by the Authority of any business of the registered insurer under subsection (2) shall only be in relation to —
(a)
the business and affairs of the registered insurer carried on, or managed in or from, Singapore; and
(b)
the property of the registered insurer located in Singapore, or reflected in the books of the registered insurer in Singapore, as the case may be, in relation to its operations in Singapore.
(4) Where the Authority appoints 2 or more persons as the statutory manager of a registered insurer, it shall specify, in the terms and conditions of the appointment, which of the duties, functions and powers of the statutory manager —
(a)
may be discharged or exercised by such persons jointly and severally;
(b)
shall be discharged or exercised by such persons jointly; and
(c)
shall be discharged or exercised by a specified person or such persons.
(5) Where the Authority has exercised any power under subsection (2), it may, at any time and without prejudice to its power under section 12(2)(l), do one or more of the following:
(a)
vary or revoke any requirement of any appointment made by or any action taken by the Authority in the exercise of such power, on such terms and conditions as it may specify;
(b)
further exercise any of the powers under subsection (2);
(c)
add to, vary or revoke any term or condition specified by the Authority under this section.
(6) No liability shall be incurred by a statutory manager as a result of anything done (including any statement made) or omitted to be done with reasonable care and in good faith in the course of or in connection with —
(a)
the exercise or purported exercise of any power under this Act;
(b)
the performance or purported performance of any function or duty under this Act; or
(c)
the compliance or purported compliance with this Act.
41A.
—(1) Upon assuming control of the relevant business of a registered insurer, the Authority or statutory manager, as the case may be, shall take custody or control of the relevant business.
(2) During the period when the Authority or statutory manager is in control of the relevant business of a registered insurer, the Authority or statutory manager shall manage the relevant business of the registered insurer in the name of and on behalf of the insurer and shall be deemed to be an agent of the insurer.
(3) In managing the relevant business of a registered insurer, the Authority or statutory manager —
(a)
shall take into consideration the interests of the policy owners of the registered insurer; and
(b)
shall have all the duties, powers and functions of the members of the board of directors of the registered insurer (collectively and individually) under this Act, the Companies Act (Cap. 50) and the constitution of the registered insurer, including powers of delegation, in relation to the relevant business of the registered insurer; but nothing in this paragraph shall require the Authority or the statutory manager to call any meeting of the registered insurer under the Companies Act, the Co-operative Societies Act (Cap. 62) or the constitution of the registered insurer.
(4) Notwithstanding any written law or rule of law, upon the assumption of control of the relevant business of a registered insurer by the Authority or statutory manager —
(a)
where the registered insurer is established or incorporated in Singapore, any appointment of a person as a principal officer or director of the registered insurer; or
(b)
where the registered insurer is established or incorporated outside Singapore, any appointment of a person as a principal officer of the insurer in so far as the appointment relates to the relevant business of the registered insurer,
which was in force immediately before the assumption of control, shall be deemed to be revoked unless the Authority gives its approval, by notice in writing to the person and the registered insurer, for the person to remain in the appointment.
(5) Notwithstanding any written law or rule of law, during the period when the Authority or statutory manager is in control of the relevant business of a registered insurer, no person shall be appointed —
(a)
where the registered insurer is established or incorporated in Singapore, as a principal officer or director of the registered insurer; or
(b)
where the registered insurer is established or incorporated outside Singapore, as a principal officer of the registered insurer, in so far as the appointment relates to the relevant business of the registered insurer,
except with the approval of the Authority.
(6) Where the Authority has given its approval under subsection (4) or (5) for a person to remain in the appointment of, or for a person to be appointed as, a principal officer or a director of a registered insurer, the Authority may at any time, by notice in writing to the person and the registered insurer, revoke its approval and such appointment shall be deemed to be revoked on the date specified in the notice.
(7) Notwithstanding any written law or rule of law, if any person, whose appointment as a principal officer or director of a registered insurer is revoked under subsection (4) or (6), acts or purports to act after the revocation —
(a)
where the registered insurer is established or incorporated in Singapore, as a principal officer or director of the insurer; or
(b)
where the registered insurer is established or incorporated outside Singapore, as a principal officer of the registered insurer in relation to the relevant business of the insurer,
during the period when the Authority or statutory manager is in control of the relevant business of the registered insurer —
(i)
the act or purported act of the person shall be invalid and of no effect; and
(ii)
the person shall be guilty of an offence.
(8) Notwithstanding any written law or rule of law, if any person who is appointed as a principal officer or director of a registered insurer in contravention of subsection (5) acts or purports to act —
(a)
where the registered insurer is established or incorporated in Singapore, as a principal officer or director of the registered insurer; or
(b)
where the registered insurer is established or incorporated outside Singapore, as a principal officer of the registered insurer in relation to the relevant business of the registered insurer,
during the period when the Authority or statutory manager is in control of the relevant business of the registered insurer —
(i)
the act or purported act of the person shall be invalid and of no effect; and
(ii)
the person shall be guilty of an offence.
(9) During the period when the Authority or statutory manager is in control of the relevant business of a registered insurer —
(a)
if there is any conflict or inconsistency between —
(i)
a direction or decision given by the Authority or statutory manager (including a direction or decision to a person or body of persons referred to in sub-paragraph (ii)); and
(ii)
a direction or decision given by a principal officer, director, member, executive officer, employee, agent or office holder, or the board of directors, of the registered insurer,
the direction or decision referred to in sub-paragraph (i) shall, to the extent of the conflict or inconsistency, prevail over the direction or decision referred to in sub-paragraph (ii); and
(b)
no person shall exercise any voting or other right attached to any share in the registered insurer in any manner that may defeat or interfere with any duty, function or power of the Authority or statutory manager, and any such act or purported act shall be invalid and of no effect.
(10) Any person who is guilty of an offence under subsection (7) or (8) shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years or to both and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part thereof during which the offence continues after conviction.
(11) In this section, “constitution of the registered insurer” means the memorandum of association and articles of association of the registered insurer or other instrument under which the registered insurer is established or incorporated.
41B.
—(1) The Authority shall cease to be in control of the relevant business of a registered insurer when the Authority is satisfied that the reasons for its assumption of control of the relevant business have ceased to exist or that it is no longer necessary for the protection of the policy owners of the registered insurer.
(2) A statutory manager shall be deemed to have assumed control of the relevant business of a registered insurer on the date of his appointment as a statutory manager.
(3) The appointment of a statutory manager in relation to the relevant business of a registered insurer may be revoked by the Authority at any time —
(a)
if the Authority is satisfied that the reasons for the appointment have ceased to exist or that it is no longer necessary for the protection of the policy owners of the registered insurer; or
(b)
on any other ground,
and upon such revocation, the statutory manager shall cease to be in control of the relevant business of the registered insurer.
(4) The Authority shall publish in the Gazette the date, and such other particulars as it thinks fit, of —
(a)
its assumption of control of the relevant business of a registered insurer;
(b)
the cessation of its control of the relevant business of a registered insurer;
(c)
the appointment of a statutory manager in relation to the relevant business of a registered insurer; and
(d)
the revocation of a statutory manager’s appointment in relation to the relevant business of a registered insurer.
41C.
—(1) During the period when the Authority or statutory manager is in control of the relevant business of a registered insurer —
(a)
the High Court may, on an application of the Authority or statutory manager, direct any person who has ceased to be or who is still a principal officer, director, member, executive officer, employee, agent, banker, auditor or office-holder of, or trustee for, the registered insurer to pay, deliver, convey, surrender or transfer to the Authority or statutory manager, within such period as the High Court may specify, any property, book, accounts, record or other documents, whether in electronic, print or other form, of the insurer which is comprised in, forms part of or relates to the relevant business of the insurer, and which is in the person’s possession or control; and
(b)
any person who has ceased to be or who is still a principal officer, director, member, executive officer, employee, agent, banker, auditor or office-holder of, or trustee for, the insurer shall give to the Authority or statutory manager such information as the Authority or statutory manager may require for the discharge of its or his duties or functions, or the exercise of its or his powers, in relation to the registered insurer, within such time and in such manner as may be specified by the Authority or statutory manager.
(2) Any person who —
(a)
without reasonable excuse, fails to comply with subsection (1)(b); or
(b)
in purported compliance with subsection (1)(b), knowingly or recklessly furnishes any information or document that is false or misleading in a material particular,
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years or to both and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part thereof during which the offence continues after conviction.
41D. The Authority may at any time fix the remuneration and expenses to be paid by a registered insurer —
(a)
to a statutory manager appointed in relation to a registered insurer, whether or not the appointment has been revoked; and
(b)
where the Authority has assumed control of the relevant business of the registered insurer, to the Authority and any person employed or authorised by the Authority under section 41A in relation to its assumption of control of the relevant business, whether or not the Authority has ceased to be in control of the relevant business.
41E.
—(1) The High Court may, on the application of the Authority, if it considers it to be in the interests of the policy owners of a registered insurer, make one or more of the following orders:
(a)
that no resolution shall be passed, and no order shall be made, for the winding up of the registered insurer;
(b)
that no proceedings shall be commenced or continued by or against the registered insurer in respect of any business of the registered insurer;
(c)
that no execution, distress or other legal process shall be commenced, levied or continued against any property of the registered insurer;
(d)
that no steps shall be taken to enforce any security over any property of the registered insurer or to repossess from the registered insurer any goods under any hire-purchase agreement, chattels leasing agreement or retention of title agreement;
(e)
that no steps shall be taken by any person, other than a person specified in the order, to sell, transfer, assign or otherwise dispose of any property of the registered insurer.
(2) Any sale, transfer, assignment or other disposition of any property of the registered insurer in contravention of any order made under subsection (1)(e) shall be void.
(3) Any order made under subsection (1) shall be valid for a period not exceeding 6 months.
41F. In sections 41 to 41E, unless the context otherwise requires —
“business” includes affairs and property;
“office-holder”, in relation to a registered insurer, means any person acting in relation to the insurer as its liquidator, provisional liquidator, receiver, receiver and manager or an equivalent person;
“property” includes property, right and power of every description;
“relevant business” means any business of a registered insurer —
(a)
which the Authority has assumed control of under section 41; or
(b)
in relation to which a statutory manager has been appointed under section 41;
“relevant person” means a registered insurer or an insurance intermediary;
“statutory manager” means a statutory manager appointed under section 41.”.