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 02/09/2014, you requested the version in force on 02/09/2014 incorporating all amendments published on or before 02/09/2014. The closest version currently available is that of 01/01/2014.
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Cancellation of licence
12.
—(1)  The Authority may by order cancel the licence of any insurer, either wholly or in respect of a class of business, at the request of the insurer or on any of the grounds set out in subsection (3).
(2)  The Authority may impose such conditions as it thinks fit before cancelling the licence of an insurer at the request of the insurer under subsection (1), and the Authority may refuse to cancel the licence if the insurer does not comply with the conditions.
(3)  The grounds referred to in subsection (1) are as follows:
(a)
the insurer has not commenced business within 12 months after being licensed;
(b)
the insurer has ceased to carry on insurance business whether wholly or in respect of any class of business;
(c)
it appears to the Authority that the insurer has failed to satisfy an obligation to which the insurer is subject by virtue of this Act;
(d)
there exists a ground on which the Authority would have been prohibited under section 8(3) from licensing the insurer;
(e)
the insurer proposes to make or has made any composition or arrangement with its creditors, has gone into liquidation or has been wound up or otherwise dissolved;
(f)
a receiver, a receiver and manager, or any other person having the powers and duties of a receiver, or a receiver and manager, has been appointed, whether in Singapore or elsewhere, in relation to, or in respect of any property of, the insurer or any of the shareholders of the insurer having control of the insurer;
(g)
there is a change of a person having control of the insurer, and —
(i)
the new person having control of the insurer is not a fit and proper person; or
(ii)
the Authority is not satisfied as to the financial standing of the insurer after the change;
(h)
the insurer is carrying on its business in a manner likely to be detrimental to the interests of its policy owners;
(i)
the insurer is unable to meet its obligations;
(j)
the insurer has failed to effect satisfactory reinsurance arrangements;
(k)
the insurer has contravened or is contravening —
(i)
any condition of its licence;
(ii)
any direction given by the Authority under this Act; or
(iii)
any provision of this Act;
(l)
any of the officers of the insurer holding a managerial or executive position has been convicted of any offence under this Act committed before, on or after the date of commencement of section 13 of the Insurance (Amendment) Act 2013;
(m)
the insurer has furnished false, misleading or inaccurate information, or has concealed or failed to disclose material facts, in its application for a licence;
(n)
the insurer, if incorporated outside Singapore, has had its licence or authority to operate withdrawn by the supervisory authority which is responsible, under the laws of the foreign country where the insurer is incorporated, for supervising the insurer;
(o)
the insurer has contravened or is contravening any provision of the Deposit Insurance and Policy Owners’ Protection Schemes Act (Cap. 77B) or any Rules issued by the deposit insurance and policy owners’ protection fund agency under that Act;
(p)
it is in the public interest to cancel the licence.
(4)  Before cancelling the licence of an insurer under subsection (1) other than at the request of the insurer, the Authority shall —
(a)
give the insurer notice in writing of the Authority’s intention to do so; and
(b)
in the notice referred to in paragraph (a), call upon the insurer to show cause, within such time as may be specified in the notice, as to why the licence should not be cancelled.
(5)  If the insurer referred to in subsection (4) —
(a)
fails to show cause within the time specified under subsection (4)(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 cancellation of the licence is to take effect.
(6)  An order to cancel the licence of any insurer made under subsection (1) other than at the request of the insurer shall not take effect until the expiration of a period of 30 days after the Authority has informed the insurer of the cancellation under subsection (5).
(7)  Any insurer which is aggrieved by a decision of the Authority under subsection (1) to cancel the insurer’s licence other than at the insurer’s request may, within 30 days after the Authority has informed the insurer of the cancellation under subsection (5), appeal to the Minister in writing in accordance with Part IIIB.
(8)  If, within the period referred to in subsection (7), the insurer concerned gives due notice of appeal to the Minister, the order by the Authority to cancel the licence of the insurer shall not take effect unless the order is confirmed by the Minister or the appeal is for any reason dismissed by the Minister.
(9)  Notwithstanding the cancellation of the licence of an insurer under subsection (1), so long as the insurer remains under any liability in respect of insurance policies belonging to the class of insurance business to which the licence relates, the insurer 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.
(10)  For the purposes of this section —
(a)
a person shall be regarded as having control of an insurer if the person alone or together with any associate or associates —
(i)
holds 20% or more of the total number of issued shares in the insurer; or
(ii)
is in a position to control 20% or more of the voting power in the insurer;
(b)
a reference to voting power in an insurer is a reference to the total number of votes that might be cast in a general meeting of the insurer;
(c)
a person, A, is an associate of another person, B, if —
(i)
A is the spouse, or a parent, remoter lineal ancestor or step-parent, a son, daughter, remoter issue, step-son or step-daughter, or a brother or sister of B;
(ii)
A is a corporation whose directors are accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of B or, where B is a corporation, of the directors of B;
(iii)
B is a corporation whose directors are accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of A or, where A is a corporation, of the directors of A;
(iv)
A is a person who is accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of B;
(v)
B is a person who is accustomed or under an obligation, whether formal or informal, to act in accordance with the directions, instructions or wishes of A;
(vi)
A is a related corporation of B;
(vii)
A is a corporation in which B, alone or together with other associates of B as described in sub-paragraphs (ii) to (vi), is in a position to control not less than 20% of the voting power in A;
(viii)
B is a corporation in which A, alone or together with other associates of A as described in sub-paragraphs (ii) to (vi), is in a position to control not less than 20% of the voting power in B; or
(ix)
A is a person with whom B has an agreement or arrangement, whether oral or in writing and whether express or implied, to act together with respect to the acquisition, holding or disposal of shares or other interests in, or with respect to the exercise of their voting power in relation to, the insurer; and
(d)
a person holds a share if —
(i)
he is deemed to have an interest in that share under section 7(6) of the Companies Act (Cap. 50); or
(ii)
he otherwise has a legal or an equitable interest in that share, except for such interest as is to be disregarded under section 7(7), (8) and (9) of the Companies Act.
[Act 11 of 2013 wef 18/04/2013]