Singapore Government
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Contents

Long Title

Part I PRELIMINARY

Part II CONDUCT OF INSURANCE BUSINESS

Division 1 — General restriction on insurers

Division 2 — Licensed insurers

Deposits, registers of policies and insurance funds

Division 3 — Authorised reinsurers

Part IIA FOREIGN INSURER SCHEMES

Part IIB INSURANCE INTERMEDIARIES

Division 1 —  General provisions relating to insurance intermediaries

Division 2 —  Conduct of insurance broking business

Part III RETURNS, INSPECTIONS AND INVESTIGATIONS, WINDING UP AND TRANSFERS OF BUSINESS

Division 1 — Returns

Division 2 — Inspections and Investigations

Division 3 — Powers where licensed insurer or insurance intermediary is unable to meet obligations, etc.

Part IIIA ASSISTANCE TO FOREIGN REGULATORY AUTHORITIES

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

Division 1 — Voluntary 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

Division 1 — Administration and enforcement

Division 2 —  Miscellaneous amendments of law

Division 3 —  Supplementary

FIRST SCHEDULE Definition of Insurance Terms

SECOND SCHEDULE Specified Provisions

Legislative History

Comparative Table

 
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On 31/10/2014, you requested the version in force on 31/10/2014 incorporating all amendments published on or before 31/10/2014. The closest version currently available is that of 01/01/2014.
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Approval or removal of key executive person, chairman or director of licensed insurer
31.
—(1)  Subject to this section, a licensed insurer shall have —
(a)
a chief executive;
(b)
an appointed actuary, if the insurer is a direct insurer licensed to carry on life business;
(c)
a certifying actuary, if the insurer is a direct insurer licensed to carry on general business, or a reinsurer licensed to carry on life or general business; and
(d)
such other person holding an appointment, or persons holding appointments, in the licensed insurer as may be prescribed.
(2)  Subject to this section, a licensed insurer which is established or incorporated in Singapore shall have a chairman appointed from among its directors.
(3)  Subject to this section, a licensed insurer may appoint a person as its deputy chief executive.
(4)  No licensed insurer shall appoint a person as its key executive person unless —
(a)
the insurer has satisfied the Authority that the person is a fit and proper person to be so appointed; and
(b)
the insurer has obtained the approval of the Authority to so appoint the person.
(5)  No licensed insurer which is established or incorporated in Singapore shall appoint a person as its chairman or director unless —
(a)
the insurer has satisfied the Authority that the person is a fit and proper person to be so appointed; and
(b)
the insurer has obtained the approval of the Authority to so appoint the person.
(6)  The Authority may —
(a)
grant its approval, with or without conditions —
(i)
to a licensed insurer to appoint a key executive person under subsection (4); or
(ii)
to a licensed insurer which is established or incorporated in Singapore to appoint a person as its chairman or director, as the case may be, under subsection (5); and
(b)
at any time add to, vary or revoke any condition of approval referred to in paragraph (a) or impose any conditions thereto.
(7)  Without prejudice to the generality of section 64, the Authority may prescribe the duties of the key executive persons of a licensed insurer, and the duties of the chairman and directors of a licensed insurer which is established or incorporated in Singapore.
(8)  Where a licensed insurer has obtained the approval of the Authority to appoint a person as its key executive person under subsection (4), the person may be re-appointed in that office or appointment immediately upon the expiry of the earlier term without the approval of the Authority.
(9)  Where a licensed insurer which is established or incorporated in Singapore has obtained the approval of the Authority to appoint a person as its chairman or director under subsection (5), the licensed insurer shall only appoint the person to hold such office or appointment for a term not exceeding such period as may be prescribed.
(10)  If at any time it appears to the Authority that —
(a)
a key executive person of a licensed insurer, or the chairman or a director of a licensed insurer which is established or incorporated in Singapore, has failed to perform his functions or is no longer a fit and proper person to be so appointed; and
(b)
it is necessary in the public interest or for the protection of policy owners of a licensed insurer,
the Authority may direct the licensed insurer to remove the key executive person, chairman or director, as the case may be, from his office, appointment or employment.
(11)  When determining, for the purpose of determining whether to grant its approval under subsection (4) or (5), or for the purposes of subsection (10)(a), whether a key executive person, chairman or director has failed to perform his functions, the Authority shall, without prejudice to any other matter it may consider relevant, have regard to such criteria as may be prescribed.
(12)  Before directing a licensed insurer to remove a person from his office, appointment or employment under subsection (10), the Authority shall —
(a)
give the insurer and the person notice in writing of the Authority’s intention to do so; and
(b)
in the notice referred to in paragraph (a), call upon the licensed insurer and the person to show cause within such time as may be specified in the notice why that person should not be removed.
(13)  If the licensed insurer and the person referred to in subsection (12) —
(a)
fails to show cause within the time specified under subsection (12)(b) 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 direction to remove the chairman, director or key executive person, as the case may be, is to take effect.
(14)  Any person who is aggrieved by a direction of the Authority under subsection (10) may, within 30 days after receiving the direction, appeal to the Minister in writing in accordance with Part IIIB.
(15)  Notwithstanding the lodging of an appeal under subsection (14), a direction to remove a licensed insurer’s key executive person, chairman or director under subsection (10) shall continue to have effect pending the decision of the Minister.
(16)  Any licensed insurer which contravenes subsection (1), (2), (4), (5) or (9), or fails to comply with any condition imposed by the Authority under subsection (6), shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part thereof during which the offence continues after conviction.
(17)  Any licensed insurer which fails to comply with any direction of the Authority under subsection (10) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000.
(18)  Nothing in the Co-operative Societies Act (Cap. 62) or section 152 of the Companies Act (Cap. 50) shall prevent the Authority from exercising any power under subsection (10).
(19)  No criminal or civil liability shall be incurred by a licensed insurer, or any person acting on behalf of the insurer, in respect of anything done or omitted to be done with reasonable care and in good faith in the discharge or purported discharge of the obligations of the insurer under this section.
(20)  In this section, unless the context otherwise requires —
“chairman”, in relation to a licensed insurer, means the chairman of the board of directors of the insurer;
“key executive person” means a person holding any appointment referred to in subsection (1)(a) to (d) or (3).
[Act 11 of 2013 wef 18/04/2013]