Clause 6

The Commissioner may by order cancel the registration of an insurer either wholly or in respect of a class of business, as the case may be, if he is satisfied that —

the insurer has not commenced business within twelve months after being registered;

the insurer has ceased to carry on insurance business in respect of any class of business;

the insurer has failed to maintain a surplus of assets over liabilities of not less than an amount as specified under paragraph (a) of subsection (4) of section 4 of this Act;

the insurer has neglected or refused to observe an order of the Commissioner to make good any deficiency, whenever its insurance fund shall have become impaired;

the insurer proposes to make, or has made, any composition or arrangement with its creditors or has gone into liquidation or has been wound up or otherwise dissolved;

the insurer is carrying on its business in a manner likely to be detrimental to the interests of its policy owners;

the insurer is unable to meet its obligations;

the insurer has failed to effect satisfactory reinsurance arrangements;

the insurer is contravening or has contravened the provisions of this Act or any of the regulations made thereunder or any condition imposed or any direction given by the Commissioner under this Act;

the insurer has been convicted of any offence under this Act or any of its officers holding a managerial or an executive position has been convicted of any offence under this Act;

the insurer has furnished false, misleading or inaccurate information, or has concealed or failed to disclose material facts in its application for registration; or

it is in the public interest to cancel the registration.(2) The Commissioner shall before cancelling any registration under the provisions of subsection (1) of this section cause to be given to the insurer concerned notice in writing of his intention to do so, specifying a date, not less than fourteen days after the date of the notice, upon which the cancellation will take effect and calling upon the insurer to show cause to the Commissioner why the registration should not be cancelled.(3) Notwithstanding the fact that the registration of an insurer has been cancelled under this section, so long as the insurer remains under any liability in respect of Singapore policies belonging to the class of insurance business to which the registration relates, the insurer shall take such action as it considers necessary or as may be required by the Commissioner to satisfy him that reasonable provision has been or will be made for that liability and that adequate arrangements exist or will exist for payment in Singapore of premiums and claims on those policies.(4) When the Commissioner has cancelled a registration under the provisions of subsection (1) of this section he shall forthwith inform the insurer of the cancellation.(5) Any insurer whose registration has been cancelled pursuant to the provisions of this section shall have a right of appeal against the order of cancellation to the Minister whose decision thereon shall be final.(6) An order of cancellation made by the Commissioner shall not take effect until the expiration of a period of fourteen days after the Commissioner has informed the insurer of the order.”.