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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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On 19/10/2017, you requested the version in force on 12/05/2012 incorporating all amendments published on or before 12/05/2012. The closest version currently available is that of 01/05/2011.
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General
Insurance agent to operate under written agreement
35M.
—(1)  An insurance agent shall not arrange, or hold himself out as entitled to arrange, a contract of insurance as agent for a registered insurer unless an agreement in writing between the insurance agent and the insurer authorises the insurance agent to arrange, as agent for that insurer —
(a)
that contract;
(b)
any contract of insurance; or
(c)
any class of contracts of insurance which includes that contract.
[41/2001]
(2)  A registered insurer shall not cause or permit an insurance agent to arrange, or hold himself out as entitled to arrange, a contract of insurance as agent for that insurer unless an agreement in writing between the insurer and the insurance agent authorises the insurance agent to arrange, as agent for that insurer —
(a)
that contract;
(b)
any contract of insurance; or
(c)
any class of contracts of insurance which includes that contract.
[41/2001]
(3)  Subsections (1) and (2) shall not apply in relation to any act or thing done by an employee of a registered insurer in the course of performing his duties as such an employee.
[41/2001]
(3A)  Subsection (1) shall not apply to —
(a)
a licensed financial adviser;
(b)
a person exempt from holding a financial adviser’s licence in respect of any financial advisory service under section 23(1)(a), (b), (c), (d) or (e) of the Financial Advisers Act (Cap. 110), other than a registered insurer; and
(c)
a representative of a person referred to in paragraph (a) or (b),
where they arrange, or hold themselves out as entitled to arrange, a contract of insurance in respect of life policies, other than contracts for the reinsurance of liabilities under life policies, as agent for a registered insurer.
[23/2003 wef 01/01/2004]
(3B)  Subsection (1) shall not apply to a registered insurer and any insurance agent acting for that insurer where they arrange, or hold themselves out as entitled to arrange, a contract of insurance in respect of life policies, other than contracts for the reinsurance of liabilities under life policies, as agent for another registered insurer.
[23/2003 wef 01/01/2004]
(3C)  Subsection (2) shall not apply to a registered insurer in relation to an insurance agent who is a person specified in subsection (3A) or (3B).
[23/2003 wef 01/01/2004]
(4)  Any person who contravenes subsection (1) or (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 or to imprisonment for a term not exceeding 12 months or to both and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part thereof during which the offence continues after conviction.
[41/2001]
Application of sections 35O to 35R and 35T, 35TA, 35U and 35V
35N.
—(1)  Sections 35O and 35Q shall not apply to a general reinsurance broker or life reinsurance broker in respect of contracts for the reinsurance of liabilities under insurance policies.
[41/2001]
[23/2003 wef 01/01/2004]
(2)  Section 35P shall not apply to —
(a)
a licensed financial adviser or exempt financial adviser, or its representatives, in respect of life policies, other than life policies with accident and health benefits and contracts for the reinsurance of liabilities under insurance policies; or
(b)
a general reinsurance broker or life reinsurance broker in respect of contracts for the reinsurance of liabilities under insurance policies.
[41/2001]
[23/2003 wef 01/01/2004]
(3)  Sections 35R, 35T, 35U and 35V shall not apply to a licensed financial adviser or an exempt financial adviser, or its representatives, in respect of life policies, other than contracts for the reinsurance of liabilities under insurance policies.
[23/2003 wef 01/01/2004]
(4)  Section 35TA shall not apply to a licensed financial adviser or an exempt financial adviser, or its representatives, in respect of life policies, other than life policies with accident and health benefits and contracts for the reinsurance of liabilities under insurance policies.
[23/2003 wef 01/01/2004]
Effect of payment to insurance intermediary
35O.
—(1)  Where a contract of insurance is arranged or effected by an insurance intermediary, payment to the insurance intermediary of moneys payable by the insured to the insurer under or in relation to the contract (whether in respect of a premium or otherwise) shall be a discharge, as between the insured and the insurer, of any liability of the insured under or in respect of the contract, to the extent of the amount of the payment.
[41/2001]
(2)  Payment to an insurance intermediary by or on behalf of an intending insured of moneys in respect of a contract of insurance to be arranged or effected by the insurance intermediary (whether the payment is in respect of a premium or otherwise) shall be a discharge, as between the insured and the insurer, of any liability of the insured under or in respect of the contract, to the extent of the amount of the payment.
[41/2001]
(3)  Payment by an insurer to an insurance intermediary of moneys payable to an insured (whether in respect of a claim, return of premiums or otherwise) under or in relation to a contract of insurance, shall not discharge any liability of the insurer to the insured in respect of those moneys.
[41/2001]
(4)  An agreement, insofar as it purports to alter or restrict the operation of subsection (1), (2) or (3), shall be void.
[41/2001]
(5)  Subsection (4) shall not render void an agreement between an insurance intermediary and an insured insofar as the agreement allows the insurance intermediary to set off, against moneys payable to the insured, moneys payable by the insured to the insurance intermediary in respect of premiums.
[41/2001]
Pre-contract disclosure by insurance intermediary
35P.
—(1)  No insurance intermediary shall invite any person to make an offer or proposal to enter into a contract of insurance without disclosing to the person all material information, including —
(a)
the name of the registered insurer;
(b)
his relationship with the registered insurer;
(c)
the premium charged by the registered insurer; and
(d)
such other information as the Authority may prescribe or specify in directions.
[23/2003 wef 01/01/2004]
[41/2001]
(2)  No insurance intermediary shall arrange any group policy for 2 or more persons where any person insured under the group policy is liable to pay the premium without disclosing to every person insured under the group policy all material information, including —
(a)
the name of the registered insurer;
(b)
his relationship with the registered insurer;
(c)
the conditions of the group policy;
(d)
the premium charged by the registered insurer; and
(e)
such other information as the Authority may prescribe or specify in directions.
[23/2003 wef 01/01/2004]
[41/2001]
(2A)  Any insurance intermediary who contravenes subsection (1) or (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 or to imprisonment for a term not exceeding 12 months or to both.
[23/2003 wef 01/01/2004]
(3)  In this section, “insurance intermediary” includes the group policy owner of any group policy.
[41/2001]
Effect of payment to group policy owner and liability of insurer under group policy
35Q.
—(1)  This section applies to any group policy where any person insured under the group policy is liable to pay a premium.
[41/2001]
(2)  Payment to the group policy owner of moneys payable by any person insured under the group policy to the insurer under or in relation to the group policy (whether in respect of a premium or otherwise) shall be a discharge, as between the person insured and the insurer, of any liability of the person insured under or in respect of the group policy, to the extent of the amount of the payment.
[41/2001]
(3)  The registered insurer of a group policy shall pay the moneys due under the policy to the person insured or any person entitled through him if the person insured has paid the premium or is regarded as having paid the premium under subsection (2), and is entitled to the benefit under the policy.
[41/2001]
Representation by insurance intermediary
35R.
—(1)  No insurance intermediary shall, with intent to deceive, make a false or misleading statement as to —
(a)
any amount that would be payable in respect of a proposed contract of insurance; or
(b)
the effect of any provision of a contract of insurance or a proposed contract of insurance.
[41/2001]
(2)  A reference in subsection (1) to making a misleading statement includes a reference to omitting to disclose any matter that is material to a statement.
[41/2001]
(3)  No insurance intermediary shall, with intent to deceive, in relation to a proposed contract of insurance —
(a)
write on a form, being a form that is given or sent to an insurer, any matter that is material to the contract and is false or misleading in a material particular;
(b)
omit to disclose to the insurer any matter that is material to the proposed contract;
(c)
advise or induce the intending insured to write on a form, being a form that is given or sent to an insurer, any matter that is false or misleading in a material particular; or
(d)
advise or induce the intending insured to omit to disclose to the insurer any matter that is material to the proposed contract.
[41/2001]
(4)  No insurance intermediary shall, with intent to deceive, in relation to a claim under a contract of insurance —
(a)
fill up, in whole or in part, a form, being a form that is given or sent to an insurer, in such a way that the form is false or misleading in a material particular;
(b)
omit to disclose to the insurer any matter that is material to the claim;
(c)
induce the insured to fill up, in whole or in part, a form, being a form that is given or sent to the insurer, in such a way that the form is false or misleading in a material particular; or
(d)
advise or induce the insured to omit to disclose to the insurer any matter that is material to the claim.
[41/2001]
(5)  Any person who contravenes subsection (1), (3) or (4) shall, notwithstanding that a contract of insurance does not come into being, 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 12 months or to both.
[41/2001]
[23/2003 wef 01/01/2004]
Insurance agent to act only for insurers entitled to carry on business in Singapore
35S.
—(1)  No person shall, without the approval of the Authority, act as an insurance agent for an insurer in respect of any insurance business which the insurer is not entitled to carry on in Singapore under this Act.
[41/2001]
(2)  Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 or to imprisonment for a term not exceeding 3 years or to both.
[41/2001]
(3)  Where the Authority has, under section 7 of the Insurance Intermediaries Act (Cap. 142A) in force before 1st October 2002*, approved any person to act as an insurance agent for an insurer in respect of any insurance business which the insurer is not entitled to carry on in Singapore, the approval shall continue in force as if granted by the Authority under subsection (1).
*   Date of commencement of section 20 of the Insurance (Amendment) Act 2001 (Act 41 of 2001).
[41/2001]
Control of written communication used by insurance intermediary
35T.
—(1)  The Authority may, by notice in writing, require any insurance intermediary to submit to it any written communication which is for the time being in use by the insurance intermediary for describing the terms or conditions of, or the benefits to be or likely to be derived from, policies.
[41/2001]
(2)  Where the whole or part of any written communication referred to in subsection (1) is not in English, there shall be submitted with it a translation in English.
[41/2001]
(3)  A requirement made under subsection (1), unless it is otherwise provided therein, shall apply to all such written communication coming into use after the making of the requirement and before the Authority notifies the insurance intermediary that the requirement is withdrawn.
[41/2001]
(4)  If it appears to the Authority that any such written communication used by an insurance intermediary contravenes any provision of this Part, or is in any respect likely to mislead, the Authority may (after affording the insurance intermediary an opportunity to make representations orally or in writing), by notice in writing, direct the insurance intermediary to discontinue the use in Singapore of the written communication immediately or from such date as may be specified in the notice.
[41/2001]
(5)  For each occasion on which any insurance intermediary fails to comply with a requirement under subsection (1) or uses any written communication in contravention of subsection (4), the insurance intermediary shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 or to imprisonment for a term not exceeding 12 months or to both.
[41/2001]
[23/2003 wef 01/01/2004]
(6)  In this section, “written communication” includes any brochure, leaflet, circular or advertising matter, whether in electronic, print or other form.
[41/2001]
Business conduct of insurance intermediaries
35TA.  Without prejudice to the generality of section 64(1) and (2), the Authority may make regulations or issue directions for or with respect to —
(a)
the standards to be maintained by an insurance intermediary in the conduct of business under this Act, including the standards in relation to the obligation to disclose information to insureds;
(b)
the qualifications, experience and training of an insurance intermediary and, where the insurance intermediary is a corporation or an association, of the officers, agents and employees of the insurance intermediary; and
(c)
the procedure for the conduct of disciplinary control of insurance intermediaries and, where the insurance intermediary is a corporation or an association, of the officers, agents and employees of the insurance intermediary.
[23/2003 wef 01/01/2004]
Obligation to furnish information to Authority
35U.  The Authority may, by notice in writing, require any insurance intermediary to furnish it with information about any matter related to his business carried on in Singapore or elsewhere if, in the opinion of the Authority, it requires that information for the discharge of its functions under this Act.
[41/2001]
Authority may prohibit person from carrying on business as insurance intermediary
35V.
—(1)  The Authority may, by order, prohibit any person from carrying on business as an insurance intermediary or from taking part, directly or indirectly, in the management of any insurance intermediary —
(a)
where the person has been convicted, whether in Singapore or elsewhere, of an offence involving fraud, dishonesty or moral turpitude or the conviction for which involved a finding that he acted fraudulently or dishonestly; or
(b)
where the Authority is satisfied that the person has —
(i)
forged policyholders’ signatures;
(ii)
misappropriated policyholders’ premiums;
(iii)
contravened any provision of this Act;
(iv)
given false, misleading or inaccurate information in its application to the insurer;
(v)
wilfully misled any policyholder when assisting him to fill up the proposal form;
(vi)
used dishonest means to meet the requirements set up by the insurer; or
(vii)
been involved in any activity prejudicial to the public interest.
[41/2001]
(2)  Before prohibiting any person from carrying on business as an insurance intermediary or from taking part, directly or indirectly, in the management of any insurance intermediary, the Authority shall —
(a)
give the person notice in writing of its intention to do so; and
(b)
in the notice referred to in paragraph (a), call upon the person to show cause within such time as may be specified in the notice why he or it should not be prohibited from carrying on business as an insurance intermediary or from taking part, directly or indirectly, in the management of any insurance intermediary, as the case may be.
[41/2001]
(3)  If the person to whom notice has been given under subsection (2) —
(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 that person of the date on which the prohibition is to take effect.
[41/2001]
(4)  Any person who is aggrieved by a decision of the Authority under subsection (1) may, within 30 days of the decision of the Authority, appeal to the Minister in writing in accordance with Part IIIB.
[41/2001]
(5)  No insurer or insurance intermediary shall employ or otherwise deal with any person who has been issued an order under subsection (1) where any activity to be undertaken by the person pursuant to such employment or dealing is prohibited by the order.
[41/2001]
(6)  Any person who —
(a)
fails to comply with an order of the Authority made under subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $75,000 or to imprisonment for a term not exceeding 2 years or to both;
(b)
contravenes subsection (5) 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.
[41/2001]
(7)  Where the Authority has, under section 31 of the Insurance Intermediaries Act (Cap. 142A) in force before 1st October 2002, by order prohibited any person from carrying on business as an insurance intermediary or from taking part, directly or indirectly, in the management of any insurance intermediary, the order shall continue in force as if made by the Authority under subsection (1).
[41/2001]