—(1) A Singapore insurer, while registered in respect of any class of insurance business, shall at all times have in respect of that class of business a deposit with the Authority of a value of not less than $500,000 or such other amount as may be prescribed.
(2) A deposit under subsection (1) shall be made in assets of such nature as the Authority may specify.
(3) All income accruing in respect of a deposit shall be payable to the insurer making the deposit.
(4) A deposit made under this section in respect of any class of insurance business shall be retained by the Authority until either —
the insurer ceases to be registered in respect of that class of insurance business; or
the deposit is required in the winding up of the affairs of the insurer.
(5) If the insurer ceases to be registered in respect of any class of insurance business, the deposit or part thereof may be further retained for the purpose of and in accordance with any such provision for liabilities in respect of policies as is required by section 12(6).
(6) Where the value of the deposit made by an insurer under subsection (1) in respect of any class of insurance business is less than $500,000 or the amount prescribed at any time, the Authority may, by notice in writing, direct the insurer to add thereto within 28 days of the service of the notice such assets as the Authority may specify of a value not less than the difference.
(7) An insurer which has made a deposit under this section may, at any time, substitute for any assets comprised in the deposit such other assets as the Authority may specify so long as the value of the deposit is not thereby reduced to an amount below that which is required by this Act.