Clause 7

A Singapore insurer, while registered in respect of any class of insurance business, shall at all times have in respect of that business a deposit with the Accountant-General of a value of not less than three hundred thousand dollars.

Any such deposit shall be made in cash or in securities specified in the Second Schedule to this Act or partly in one way and partly in the other; and any cash comprised in a deposit may be invested in such manner available for the investment of funds in Court as the insurer may select.

All income accruing in respect of a deposit shall be payable to the insurer making the deposit.

A deposit made under this section in respect of any class of business shall be retained by the Accountant-General 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; and if the insurer ceases to be registered as aforesaid, the deposit or part of it 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 subsection (3) of section 6 of this Act.

If at any time a deposit under this section (other than a deposit retained after the insurer has ceased to be registered as aforesaid) comprises assets other than government securities, and the value of those assets is less than the sum of three hundred thousand dollars reduced by the value of any government securities comprised in the deposit, then the Commissioner may by notice in writing direct the insurer to add thereto within twenty-eight days of the service of the notice, cash or securities specified in the Second Schedule to this Act of a value not less than the difference.

An insurer which has made a deposit under this section may at any time substitute for any assets comprised in the deposit cash or securities specified in the Second Schedule to this Act, so long as the value of the deposit is not thereby reduced to an amount below that which is required by this Act.

In the foregoing subsections “securities” (except in the expression “government securities”) includes any form of investment, and “government securities” means securities of which the principal or interest is charged directly or by way of guarantee on the Consolidated Fund; but no deposit shall include —

Where by virtue of paragraph (c) of subsection (7) of this section any securities comprised in a deposit are declared unsuitable, the insurer shall within one calendar month of the securities being so declared, substitute therefor such other securities as are authorised by this section.