Singapore legislation
Regulation 6A
Regulation 6A
Duties of Service Company
Subregulation 1
A Service Company must not, without the approval of the Authority, enter into any contract of insurance on behalf of the members of a syndicate.
Subregulation 1A
Despite paragraph (1), a Service Company (called in this paragraph Lead Service Company) may enter into any contract of insurance on behalf of the members of a syndicate without the approval of the Authority if —
the Authority has approved another Service Company under paragraph (1) to enter into the contract of insurance on behalf of the members of that syndicate, and that approval has not been revoked;
the members of the syndicate have authorised the other Service Company to authorise the Lead Service Company to enter into the contract of insurance on behalf of the members of that syndicate; and
the other Service Company has authorised the Lead Service Company to enter into the contract of insurance on behalf of the members of the syndicate.
Subregulation 2
No Service Company shall write any insurance business, unless it has reason to believe that suitable arrangements for the reinsurance of the business written in Singapore are in place at all times and that the reinsurers are of good security.
Subregulation 3
Every Service Company shall immediately inform the Authority if —
it becomes aware that any arrangement referred to in paragraph (2) has been, is being or is likely to be rendered inadequate or ineffective; (b)for any accounting period, the permitted trust outgoings of any insurance fund established by it under regulation 11 exceed the premium receipts of that insurance fund;
any development has occurred or is likely to occur which the Service Company has reasonable grounds to believe is likely to have a material adverse effect on the financial position of the Service Company; or
it amends or alters its memorandum and articles of association.
Subregulation 4
Every Service Company must, within one month after any amendment or alteration to its memorandum and articles of association, furnish to the Authority written particulars of the amendment or alteration, verified by a statutory declaration made by a senior officer of the Service Company.
Subregulation 5
A Service Company must, not less than 14 days before authorising a person as its coverholder, notify the Authority in writing of the particulars set out in sub-paragraph (g) of the Fourth Schedule of the person.