Singapore legislation
Section 50A
of Deposit Insurance and Policy Owners’ Protection Schemes Act 2011
Section 50A
Cessation of coverage under PPF Scheme
(1)
If a determination is made by the Authority for the utilisation of the PPF Life Fund under section 46(1), the insured policy owner of an insured policy which —
is covered by the PPF Life Fund; and
is issued by the PPF Scheme member in relation to which the determination was made,is not entitled to exercise any settlement option contained in a contract of insurance for the insured policy on or after the quantification date.
(2)
Where a settlement option contained in a contract of insurance for an insured policy which is covered by the PPF Life Fund has been exercised before the quantification date —
the insured policy ceases to be covered under the PPF Life Fund as at the date on which the settlement option was exercised; and
a covered party is not entitled to any compensation under this Part.
(3)
In this section, “settlement option” means an option that is exercisable by a covered party upon the surrender or maturity of an insured policy, or upon a claim being made under an insured policy —
to leave the policy moneys ascertained to be due and payable under the policy with the insurer which issued the policy to further accrue interest on or to invest the payments; or
to convert the otherwise lump sum payment of the policy moneys ascertained to be due and payable under the policy to instalment payments over a fixed period.
(4)
This section only applies in respect of a settlement option contained in a contract for an insured policy if, apart from the payment of the principal and interest or gains, or the instalment payments, as a result of exercising the option set out in subsection (3), no further policy moneys are payable under the insured policy on the happening of any contingency after the exercise of the option.