24. Restriction as to receipt and payment of remuneration
Feedback & supportA registered insurance broker shall not receive from any insurer or from a person on behalf of any insurer a gift, gratuity, benefit or other reward (however described) except as remuneration for services rendered to the insurer —
registered insurance broker
“registered insurance broker” means a person who is for the time being registered under Part III;
in arranging or effecting a particular contract of insurance; or
otherwise than in connection with the insurance broker arranging or effecting contracts of insurance.
An insurer shall not pay to a registered insurance broker, and a registered insurance broker shall not receive from an insurer, in respect of the arranging or effecting of contracts of insurance by the insurance broker with the insurer, remuneration at a rate or on a basis that has been varied having regard to all or any of the following:
insurance broker
“insurance broker” means a person who is or has been carrying on insurance business in Singapore as an agent for insureds or intending insureds;
the number of contracts so arranged or effected;
the total amount of premiums paid or payable under such contracts;
the total amount of sums insured under such contracts.
Subsections (1) and (2) shall not apply to the receipt and payment of profit commissions or, in relation to life business, payments relating to business persistency.
life business
“life business” means all insurance business concerned with life policies and, in relation to an insurer, includes any type of insurance business carried on as incidental only to the insurer’s other life business;
Any person who contravenes subsection (1) or (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 12 months or to both.
This section shall not apply to general reinsurance brokers and life reinsurance brokers.