Insurance (Approved Marine, Aviation and Transit Insurance Brokers and Approved Reinsurance Brokers) Regulations

In these Regulations, unless the context otherwise requires —

For the purpose of the definition of “net asset value” in paragraph (1) —

A designated entity may apply in writing to the Authority for approval for the purposes of these Regulations in such form and manner as the Authority may specify.

The designated entity shall furnish such information and provide such supporting documentary evidence as the Authority may require.

Upon receiving an application under paragraph (1), the Authority shall consider the application and may, subject to regulation 5 —

The Authority may approve the applicant as an approved MAT insurance broker, an approved general reinsurance broker, an approved life reinsurance broker or a combination of any of these.

The Authority shall not approve any applicant under regulation 4 unless the applicant has in force a professional indemnity insurance policy of at least $1 million in respect of each type of insurance broking business for which it is applying for approval.

In paragraph (1), “professional indemnity insurance policy” means a contract of insurance with an insurer under which a person is indemnified in respect of the liabilities arising out of or in the course of his business as an approved insurance broker.

The Authority may at any time add to, vary or revoke any existing condition of approval of an approved insurance broker or impose any new condition thereto.

Any approved insurance broker who contravenes any of the conditions imposed by the Authority under paragraph (1) or regulation 4(3) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part thereof during which the offence continues after conviction.

An approved insurance broker, if it is approved as a MAT insurance broker, general reinsurance broker or life reinsurance broker, shall pay to the Authority an annual fee of $3,000 for each type of approval.

The annual fee payable by an approved insurance broker shall be paid to the Authority on or before the date specified by written notification sent by the Authority.

Payment of the annual fee mentioned in paragraph (1) must be made —

The Authority may exempt wholly or in part any approved insurance broker from the payment of annual fees specified in paragraph (1).

The Authority may, at the request of the approved insurance broker or on any of the grounds specified under paragraph (2), withdraw the approval of any insurance broker.

The grounds referred to in paragraph (1) are —

Before withdrawing the approval of an insurance broker under this regulation otherwise than at its request, the Authority shall —

If the insurance broker referred to in paragraph (3) —

Any insurance broker who is aggrieved by a decision of the Authority under paragraph (1) to withdraw its approval otherwise than at its request may, within 30 days of the decision of the Authority, appeal to the Minister in writing in accordance with Part IIIB of the Act.

Notwithstanding the withdrawal of the approval of an insurance broker under this regulation, so long as the insurance broker remains under any liability to an insurer, insured or intending insured, the insurance broker shall take such action as it considers necessary or as may be required by the Authority to ensure that reasonable provision has been or will be made for that liability.

If the approval of an insurance broker has been withdrawn or has expired, regulations 13 and 18 shall, unless the Authority otherwise directs, continue to apply in relation to the person in respect of matters that occurred before the withdrawal or expiration as if the approval had not been withdrawn or had not expired, as the case may be.

No approved insurance broker shall, with intent to deceive, make a false or misleading statement as to —

A reference in paragraph (1) to making a misleading statement includes a reference to omitting to disclose any matter that is material to a statement.

No approved insurance broker shall, with intent to deceive, in relation to a proposed contract of insurance —

No approved insurance broker shall, with intent to deceive, in relation to a claim under a contract of insurance —

Any approved insurance broker who contravenes paragraph (1), (3) or (4) shall, notwithstanding that a contract of insurance does not come into being, be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.

An approved insurance broker shall, if required by the Authority by notice in writing, submit to the Authority any written communication which is for the time being in use by the approved insurance broker for describing the terms or conditions of, or the benefits to be or likely to be derived from, policies.

Where the whole or part of any written communication referred to in paragraph (1) is not in English, the approved insurance broker shall submit with it a translation in English.

A requirement made under paragraph (1) shall, unless it is otherwise provided, apply to all such written communication coming into use after the making of the requirement and before the Authority notifies the approved insurance broker that the requirement is withdrawn.

If it appears to the Authority, after affording the approved insurance broker an opportunity to make representations orally or in writing, that any such written communication —

For each occasion on which any approved insurance broker contravenes a requirement under paragraph (1) or uses any written communication in contravention of paragraph (4), the approved insurance broker shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.

This regulation shall only apply to written communication which is made to or directed at persons in Singapore.

In this regulation, “written communication” includes any brochure, leaflet, circular or advertising matter, whether in electronic, print or other form.

An approved insurance broker shall, if notified in writing by the Authority, furnish the Authority with information about any matter related to its business carried on as an approved insurance broker.

Any approved insurance broker who contravenes paragraph (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.

Subject to paragraph (2), every approved insurance broker who receives or collects any premium in Singapore shall, for the purposes of this regulation, establish and maintain a separate account with a bank licensed under the Banking Act (Cap. 19).

Where the approved insurance broker is approved under regulation 4 to carry on business as more than one type of insurance broker, it shall establish and maintain separate accounts with a bank licensed under the Banking Act (Cap. 19) in respect of the carrying on of business of each type of insurance broker for which it is approved.

An approved insurance broker shall pay into a bank account maintained by it under paragraph (1) all moneys received by it —

No approved insurance broker shall withdraw moneys from a bank account maintained by it under paragraph (1) without the prior written consent of the Authority.

Paragraph (4) shall not apply to any withdrawal of moneys from a bank account maintained by the approved insurance broker under paragraph (1) for —

An approved insurance broker shall pay moneys received from the realisation of any investment made under paragraph (5)(c) into a bank account maintained by it under paragraph (1).

If, upon the realisation of any investment made under paragraph (5)(c), the amount of moneys received in respect of the realisation is less than the amount of moneys invested, the approved insurance broker shall pay into the account from which the moneys were withdrawn for investment an amount equal to the difference between the amount invested and the amount realised.

An approved insurance broker shall pay into, or retain in, a bank account maintained by it under this regulation, any interest or other income that is received by it under the bank account or from any deposit made under paragraph (5)(c).

An approved insurance broker shall designate any bank account maintained by it under paragraph (1), and any deposit placed with a bank under paragraph (5)(c) as an insurance broking premium account, with or without other words of description.

No person shall claim a lien on the moneys in any account established by any approved insurance broker under paragraph (1) or (2) unless the moneys in the account are for fees due and owing to the approved insurance broker.

No person shall create any charge or mortgage on the moneys in any account established by any approved insurance broker under paragraph (1) or (2).

In this regulation —

Any person who contravenes this regulation shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.

Every approved insurance broker shall immediately inform the Authority of any change in the control of the insurance broker.

For the purposes of this regulation, section 12A(7) of the Act shall apply as if every reference to authorised reinsurer were a reference to approved insurance broker.

No person shall hold himself out to be an approved insurance broker in respect of any type of insurance broking business unless he is approved under these Regulations in respect of that type of insurance broking business.

Any person who contravenes paragraph (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 and, in the case of a continuing offence, to a further fine of $2,500 for every day or part thereof during which the offence continues after conviction.

An approved insurance broker shall prepare and lodge with the Authority, within 6 months from the end of each financial year or within such longer period as the Authority may allow, a statement —

The statement to be lodged by an approved insurance broker under paragraph (1) shall be —

Where any audited report referred to in paragraph (2)(b) is in a language other than English, the copy required by that paragraph shall be in English and shall be certified to be a true translation of the original by the translator.

In this regulation, “chief executive officer” means any person, by whatever name described, who is —

Where the Authority is satisfied that the affairs of any approved insurance broker are being conducted in a manner likely to be detrimental to the public interest or the interests of the policy owners or prejudicial to the interests of the approved insurance broker, the Authority may issue such directions to the approved insurance broker as it may consider necessary and, in particular, may require the approved insurance broker, as the case may be —

The Authority may, upon representation being made to it, or on its own motion, modify or cancel any direction issued under paragraph (1) and, in so doing, may impose such conditions as it may think fit.

Any approved insurance broker who contravenes any direction made under paragraph (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part thereof during which the offence continues after conviction.