Singapore legislation
Regulation 14
Regulation 14
Insurance broking premium accounts
Subregulation 1
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).
Subregulation 2
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.
Subregulation 3
An approved insurance broker shall pay into a bank account maintained by it under paragraph (1) all moneys received by it —
from or on behalf of an insured or intending insured for or on account of an insurer in connection with a contract of insurance or proposed contract of insurance; or
from or on behalf of an insurer for or on account of an insured or intending insured.
Subregulation 4
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.
Subregulation 5
Paragraph (4) shall not apply to any withdrawal of moneys from a bank account maintained by the approved insurance broker under paragraph (1) for —
any payment to or for a person entitled to receive payment of the moneys, including itself in so far as it is entitled to receive payment for itself;
any payment to or for an insurer in respect of amounts due to the insurer under or in relation to a contract of insurance;
any investment by way of deposits placed with any bank licensed under the Banking Act; or (d)any repayment of moneys that were paid into the account in error.
Subregulation 6
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).
Subregulation 7
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than the amount of moneys invested, the approved insurance broker shall pay into the account from which the moneys were withdrawn for investment an amount equal to the difference between the amount invested and the amount realised.
Subregulation 8
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).
Subregulation 9
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.
Subregulation 10
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.
Subregulation 11
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).
Subregulation 12
In this regulation —
Definition
“contract of insurance” includes a contract of insurance that is subsequently cancelled;
Definition
“moneys” means any sum received by an approved insurance broker as agent for an insured or intending insured, including policy moneys, premiums and claims payments.
Subregulation 13
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.