—(1) A Singapore insurer shall not issue a life policy of any description, being a Singapore policy or an offshore policy, if the premium chargeable under the policy is not in accordance with rates fixed with the approval of an actuary or, where no rates have been so fixed for policies of that description issued by the insurer, is not a premium approved for the policy by an actuary.
(2) An actuary shall not for the purposes of this section approve a premium for a policy, or a rate of premium for any description of policy, unless he is satisfied that it is suitable and in accordance with sound insurance principles.
(3) An actuary in giving his approval in respect of any description of life policy shall have regard to the maximum rate of commission proposed to be paid or allowed to any person in respect of that description of policy, and shall certify the maximum rate.
(4) Where in the case of any insurer a rate of premium is approved by an actuary for any description of life policy, the insurer shall not, except with the approval of the Authority, pay or allow in respect of any policy of that description a commission at a rate greater than the maximum rate of commission certified by the actuary.
(5) The Authority may, by notice in writing, require any Singapore insurer to obtain and furnish it within the time specified in the notice with —
a report by an actuary as to the suitability of the rates of premium for the time being chargeable by the insurer for any description of life policy; and
if the actuary considers that the rates are not suitable or not in accordance with sound insurance principles, a report as to the rates of premium which the actuary approves for that description of policy.
(6) For the purposes of subsection (1), regard shall be had to any such report referred to in subsection (5) to the exclusion of any previous approval or report.
(7) For each occasion on which an insurer issues a policy or allows a commission in contravention of this section, the insurer shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $12,500.