Singapore legislation
Section 54
of Deposit Insurance and Policy Owners’ Protection Schemes Act 2011
Section 54
Use of PPF Life Fund or PPF General Fund for transfer or run‑off of insurance business or for termination of insured policies
(1)
In determining under section 46 —
whether the PPF Life Fund or the PPF General Fund is to be utilised to fund —
any transfer of the whole or part of the insurance business of the failed PPF Scheme member to another insurer;
any run-off of the insurance business of the failed PPF Scheme member; or
any termination of insured policies issued by the failed PPF Scheme member; and
the amount of the PPF Life Fund or the PPF General Fund to be utilised,the Authority must (without limiting any other factor that the Authority may consider relevant) have regard to the factors in subsection (2).
(2)
For the purposes of subsection (1), the factors are —
the costs of transferring the whole or part of the insurance business of the failed PPF Scheme member, running‑off the insurance business of the failed PPF Scheme member, or terminating the insured policies issued by the failed PPF Scheme member, as the case may be; and
the impact of not transferring the whole or part of the insurance business of the failed PPF Scheme member, not running‑off the insurance business of the failed PPF Scheme member, or not terminating the insured policies issued by the failed PPF Scheme member, as the case may be.
(3)
For the purposes of subsection (1), the Authority must, prior to notifying the Agency of its determination under section 46, obtain the approval of the Minister for the amount to be paid out of the PPF Life Fund or the PPF General Fund (as the case may be) by the Agency.
(4)
Where the insurance business of a failed PPF Scheme member is transferred to another insurer, or the insurance business is run‑off by the Agency or by a person appointed by the Agency or the Authority, and a contingency upon which policy moneys are payable under an insured policy issued by the failed PPF Scheme member occurs after the transfer, or during the run‑off, of the insurance business —
the benefits that an insured policy owner, or a trustee of a trust, of an insured policy which is covered under the PPF Life Fund or the PPF General Fund is entitled to receive under the insured policy; or
in the case of an insured policy which is covered under the PPF Life Fund or the PPF General Fund and which provides third party benefits, the benefits that —
any insured policy owner;
any trustee of a trust of the insured policy;
any beneficiary of the insured policy;
any insured policy owner and any beneficiary of the insured policy; or
any trustee of a trust of the insured policy and any beneficiary of the insured policy,as the case may be, is or are entitled to receive under the insured policy,must be an amount not less than the protected liabilities in respect of the insured policy.
(5)
Where an insured policy issued by a failed PPF Scheme member is terminated by the Agency —
the benefits that a covered party is entitled to receive under an insured policy which is covered under the PPF Life Fund or the PPF General Fund; or
in the case of an insured policy which is covered under the PPF Life Fund or the PPF General Fund and which provides third party benefits, the benefits that —
any insured policy owner;
any trustee of a trust of the insured policy;
any beneficiary of the insured policy;
any insured policy owner and any beneficiary of the insured policy; or
any trustee of a trust of the insured policy and any beneficiary of the insured policy,as the case may be, is or are entitled to receive under the insured policy,must be an amount not less than the protected liabilities in respect of the insured policy.
(6)
The entitlement to benefits mentioned in subsections (4) and (5) is subject to the maximum amounts of benefits prescribed by the Authority for the class or type of insured policy.
(7)
The Authority may make regulations to prescribe the maximum amount of benefits that the persons mentioned in subsections (4) and (5) are entitled to for each class or type of insured policy.
(8)
For the purposes of subsections (4) and (5), the protected liabilities in respect of an insured policy of the insured policy owner must be computed in accordance with the Third Schedule.
(9)
The Agency is entitled to be reimbursed by the failed PPF Scheme member or the provisional liquidator of the failed PPF Scheme member (as the case may be) for the expenses incurred in —
in the event of a transfer of the whole or part of the business from the failed PPF Scheme member to another insurer, the costs and expenses of such transfer; (b)in the event of the run-off of the whole or part of the business of the failed PPF Scheme member, the costs and expenses of setting up a company to run‑off the insurance policies and outsourcing the administration of the insurance policies to a third party; and
in the event of the termination of insured policies issued by the failed PPF Scheme member, the costs and expenses of effecting such termination.