Insurance (Amendment) Bill

by inserting, immediately after “$500,000” at the end of subsection (1), the words “or such other amount as may be prescribed”; and

by inserting, immediately after “$500,000” in the third line of subsection (5), the words “or the amount prescribed”.

by inserting, immediately after subsection (1), the following subsection:“(1A) If, in the case of a direct insurer registered to carry on life business, no part of the surplus of assets over liabilities from its non-participating policies is allocated by the insurer by way of bonus to its participating policies, the insurer shall, in addition to the insurance funds under subsection (1) and subject to such conditions as the Authority may impose, establish and maintain a separate insurance fund —

for its participating policies; and

for its non-participating policies.”;

by deleting the words “subsection (1)” in the third line of subsection (2) and substituting the words “subsections (1) and (1A)”;

by deleting subsections (4) and (5) and substituting the following subsections:“(4) In the case of an insurance fund which comprises wholly or partly of participating life policies, no part of the fund shall be allocated by way of bonus to those policies except with the approval of an actuary and out of a surplus of assets over liabilities as shown on the last statutory valuation of the fund; and on the making of any such allocation that surplus shall be treated for the purposes of this section as reduced by the amount allocated.(5) Subject to subsection (5A), if on the last statutory valuation in the case of an insurance fund which comprises wholly or partly of participating life policies, there was shown a surplus (as reduced under subsection (4)) of assets over liabilities of the fund, there may, subject to the approval of an actuary and to any provision to the contrary in any instrument or contract binding the insurer, be allocated to the shareholders or withdrawn from the fund an amount not exceeding the surplus, and on the making of any such allocation that surplus shall be treated for the purposes of this section as reduced by the amount allocated.(5A) No part of the surplus shall be allocated under subsection (5) in any year in excess of the relevant percentage of the sum of —

the amount allocated in accordance with subsection (5); and

the amount allocated thereout by way of bonus to participating life policies in accordance with subsection (4) within that year.(5B) For the purposes of subsection (5A), the relevant percentage —

in relation to 1993 is 18%;

in relation to 1994 is 16%;

in relation to 1995 is 14%;

in relation to 1996 is 12%; and

in relation to 1997 and any subsequent year is 10%.(5C) If on the last statutory valuation in the case of an insurance fund established wholly in respect of non-participating life policies there was shown a surplus of assets over liabilities of the fund, there may, subject to any provision to the contrary in any instrument or contract binding the insurer, be withdrawn from the fund an amount not exceeding the surplus, and on the making of any such withdrawal that surplus shall, for the purposes of this section, be treated as reduced by the amount withdrawn.”; and

by inserting, immediately after the words “subsection (5),” in subsection (8), the word “(5C),”.

by inserting, immediately after subsection (1), the following subsections:“(1A) A direct insurer registered to carry on life business shall appoint a person as actuary of the insurer to perform such duties as may be prescribed.(1B) The appointment of the actuary by a direct insurer under subsection (1A) shall be made by the board of directors of the insurer in writing and shall be subject to the approval of the Authority.”; and

by inserting, immediately after the words “subsection (1)” in subsection (2), the words “or (1B)”.

No registered insurer shall in respect of its business in Singapore grant, whether directly or indirectly, unsecured loans —

to a director of the insurer which in the aggregate and outstanding at any one time exceed the sum of $5,000; or

to an employee of the insurer which in the aggregate and outstanding at any time exceed one year’s emolument of that employee.(2) For the purpose of this section, “director” includes the wife, husband, father, mother, son or daughter of a director.”.

The Authority may, for the purpose of performing its functions under this Act, inspect the books, accounts and other documents of any Singapore insurance agent or Singapore insurance broker and may institute an investigation into the whole or any part of the insurance business carried on in Singapore by the agent or broker and may for this purpose enter any premises at all reasonable times.(2) Section 40(3) shall apply, mutatis mutandis, in relation to any Singapore insurance agent or Singapore insurance broker to which this section applies.(3) Any person who refuses or fails when required to do so under section 40(3), as made applicable by subsection (2), to produce any document in his custody shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 and, in the case of a continuing offence, to a further fine of $1,000 for every day during which the offence continues after conviction.(4) This section shall not apply to any financial institution licensed under the Monetary Authority of Singapore Act [Cap. 186], Banking Act [Cap. 19], Finance Companies Act [Cap. 108], Securities Industry Act [Cap. 289] or Futures Trading Act [Cap. 116] and such other person as may be prescribed.”.

by deleting subsections (6), (7) and (8) and substituting the following subsections:“(6) This section shall not authorise a person to carry on business as a Singapore insurance agent for any individual, or in the course of a business as Singapore insurance broker to negotiate insurances with any individual, except under the authority of a licence issued by the Authority or in respect of any risk for which the broker has been permitted under section 32 to negotiate with any insurer.(7) Any person who desires to obtain a licence under subsection (6) shall apply to the Authority in writing and shall furnish such information as the Authority may require.”; and

by deleting paragraph (c) of subsection (10) and substituting the following paragraph:“(c)the agent or broker has failed to maintain the minimum financial solvency requirement as specified by the Authority in its licence;”.

by deleting subsections (2) and (4); and

by deleting subsection (5) and substituting the following subsection:“(5) Any person who refuses or fails when required to do so under subsection (3) to produce any document in his custody shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 and, in the case of a continuing offence, to a further fine of $1,000 for every day during which the offence continues after conviction.”.

by deleting “34(6),” in subsection (1)(a);

by inserting, immediately after the word “Act” in the second line of subsection (2), the following words:“or any regulations made thereunder or any direction issued by the Authority under section 62(2)”; and

by inserting, immediately after the word “Act” in the first line of subsection (4), the words “or any regulations made thereunder”.

by inserting, immediately before the definition of “Authority”, the following definitions:“ “accounting period”, in relation to any insurer, means the period beginning from the commencement of its business in Singapore or 1st January of any year, as the case may be, and ending on 31st December of that year for which accounts relating to the insurance business carried on by the insurer in Singapore are kept and for which an insurance fund has been established under this Act, unless otherwise allowed by the Authority;“actuary” means a Fellow of any prescribed institute;”; and

by deleting the definition of “qualified actuary”.