Singapore legislation
Clause 33
Clause 33
Negotiation and placement of risk with unregistered insurer
(1)
Subject to subsection (4), no licensee shall, in the course of his business as such, negotiate any contract of insurance with an insurer, whether directly or indirectly, except with a registered insurer acting in the course of his business as such.
(2)
The reference in subsection (1) to a contract of insurance shall not apply to —
reinsurance;
business relating to risks outside Singapore; or
such other risks as may be prescribed.
(3)
For the purposes of subsection (2)(b), “risks outside Singapore” means any risk which would be classified as an offshore policy as defined in the First Schedule to the Insurance Act (Cap. 142) had the risk been underwritten by a registered insurer in Singapore.
(4)
Where in any particular case the Authority is satisfied that, by reason of the exceptional nature of the risk or other exceptional circumstances, it is not reasonably practicable to comply with subsection (1), the Authority may permit any licensee —
to negotiate the contract of insurance with such insurer as the licensee sees fit; and (b)if in the opinion of the Authority the case requires it, to effect the contract of insurance and receive the premium in Singapore on behalf of such insurer.
(5)
Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 or to imprisonment for a term not exceeding 3 years or to both.