PART 2A | Interpretation of this Part |
52. In this Part —| “administrator” means an administrator appointed by the Authority under section 54 in respect of a foreign insurer scheme; |
| “agent”, in relation to a foreign insurer, means an agent in respect of the carrying on of insurance business in Singapore by the foreign insurer, with authority to enter into contracts of insurance on behalf of the foreign insurer; |
| “chief executive officer”, in relation to an administrator or an agent for any foreign insurer carrying on insurance business in Singapore under a foreign insurer scheme, means any person, by whatever name described, who is employed by the administrator or the agent (as the case may be) to be principally responsible for the management and conduct of its business. [35A [11/2013] |
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| Establishment of foreign insurer schemes |
| 53. The Authority may by regulations establish any foreign insurer scheme for the purpose of permitting any member of any class, society or association of foreign insurers specified in the scheme to carry on insurance business in Singapore. [35B |
| Appointment of administrator of foreign insurer scheme, and removal of chief executive officer or director of administrator in certain circumstances |
| 54.—(1) The Authority must, in respect of any foreign insurer scheme, appoint an administrator who must be resident in Singapore. [11/2013] | (2) Any person who wishes to be appointed as an administrator in respect of any foreign insurer scheme may apply to the Authority in such form and manner as the Authority may require. |
| (3) Upon receiving an application under subsection (2), the Authority may grant the application either unconditionally or subject to any conditions that the Authority thinks fit or reject the application. |
(4) An administrator appointed under subsection (1) must, in respect of the foreign insurer scheme for which the administrator is appointed —| (a) | have such responsibility for the operation of the scheme as may be prescribed; and | | (b) | carry out such tasks in relation to the carrying on of insurance business in Singapore by the foreign insurers under the scheme as may be directed by the Authority or as may be prescribed. |
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(5) Any appointment of an administrator under subsection (1) may be revoked if the administrator —| (a) | breaches any of the conditions on which the approval is granted; or | | (b) | contravenes any of the provisions of this Act or any direction given by the Authority under this Act. |
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| (6) If at any time it appears to the Authority that the chief executive officer or a director of an administrator appointed under subsection (1) has failed to perform his or her functions or is no longer a fit and proper person to be so appointed, the Authority may direct the administrator to remove the chief executive officer or director (as the case may be) from his or her office, appointment or employment. [11/2013] |
| (7) When determining, for the purposes of subsection (6), whether the chief executive officer or a director of an administrator appointed under subsection (1) has failed to perform his or her functions, the Authority must, without prejudice to any other matter it may consider relevant, have regard to such criteria as may be prescribed. [11/2013] |
(8) Before directing an administrator to remove its chief executive officer or director from his or her office, appointment or employment under subsection (6), the Authority must —| (a) | give the administrator and the chief executive officer or director (as the case may be) written notice of the Authority’s intention to do so; and | | (b) | in the notice referred to in paragraph (a), call upon the administrator and the chief executive officer or director (as the case may be) to show cause within such time as may be specified in the notice why the chief executive officer or director (as the case may be) should not be removed. [11/2013] |
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(9) If the administrator and the chief executive officer or director (as the case may be) referred to in subsection (8) —| (a) | fails to show cause within the time specified under subsection (8)(b) or within such extended period of time as the Authority may allow; or | | (b) | fails to show sufficient cause, |
| the Authority must give written notice to the administrator of the date on which the direction to remove the chief executive officer or director (as the case may be) is to take effect. |
[11/2013] |
| (10) Any administrator who fails to comply with any direction of the Authority under subsection (6) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000. [11/2013] |
| (11) No criminal or civil liability shall be incurred by an administrator, or any person acting on behalf of the administrator, in respect of anything done or omitted to be done with reasonable care and in good faith in the discharge or purported discharge of the obligations of the administrator under subsection (6). [35C [11/2013] |
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| Carrying on of insurance business by foreign insurer under foreign insurer scheme |
55.—(1) Where a foreign insurer scheme is established, each member of the class, society or association of foreign insurers specified in the scheme may, in accordance with the terms of the scheme, carry on such insurance business in Singapore as may be prescribed.(2) A foreign insurer must not carry on insurance business in Singapore under a foreign insurer scheme unless —| (a) | an administrator has been appointed for the scheme under section 54; and | | (b) | the foreign insurer has, in accordance with regulations made under section 63, authorised the administrator or an agent or both (as the case may be) to accept service of notices and legal processes on the foreign insurer’s behalf. |
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| (3) A foreign insurer must not carry on insurance business in Singapore under a foreign insurer scheme if the foreign insurer is prohibited from so doing under section 57. [35D |
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| Non-application of Business Names Registration Act 2014 and Companies Act 1967 |
| 56. The Business Names Registration Act 2014 and the Companies Act 1967 do not apply to any foreign insurer in respect of the carrying on of insurance business in Singapore by the foreign insurer under any foreign insurer scheme if the foreign insurer is permitted to carry on insurance business in Singapore in accordance with the terms of the foreign insurer scheme. [35E [29/2014] |
| Prohibition against carrying on insurance business in Singapore by foreign insurer under foreign insurer scheme |
57. The Authority may by written notice prohibit any foreign insurer from carrying on all or any kind of insurance business in Singapore under any foreign insurer scheme —| (a) | if the foreign insurer breaches or contravenes any of the terms of the scheme under which the foreign insurer carries on insurance business in Singapore; or | | (b) | if the Authority considers it necessary in the public interest. [35F |
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| Appointment of agent for foreign insurer scheme, and removal of chief executive officer or director of agent in certain circumstances |
| 58.—(1) Except as may be provided for in regulations made under section 63, no person may act as an agent for any foreign insurer carrying on insurance business in Singapore under any foreign insurer scheme unless that person meets such requirements as may be prescribed. [11/2003] | (2) Any agent for any foreign insurer carrying on insurance business in Singapore under any foreign insurer scheme must carry out such tasks in relation to the carrying on of that insurance business in Singapore for the foreign insurer as may be directed by the Authority or as may be prescribed. |
| (3) If at any time it appears to the Authority that the chief executive officer or a director of an agent for any foreign insurer carrying on insurance business in Singapore under a foreign insurer scheme has failed to perform his or her functions or is no longer a fit and proper person to be so appointed, the Authority may direct the agent to remove the chief executive officer or director (as the case may be) from his or her office, appointment or employment. [11/2013] |
| (4) When determining, for the purposes of subsection (3), whether the chief executive officer or a director of an agent for any foreign insurer carrying on insurance business in Singapore under a foreign insurer scheme has failed to perform his or her functions, the Authority must, without prejudice to any other matter it may consider relevant, have regard to such criteria as may be prescribed. [11/2013] |
(5) Before directing an agent for any foreign insurer carrying on insurance business in Singapore under a foreign insurer scheme to remove its chief executive officer or director from his or her office, appointment or employment under subsection (3), the Authority must —| (a) | give the agent and the chief executive officer or director (as the case may be) written notice of the Authority’s intention to do so; and | | (b) | in the notice referred to in paragraph (a), call upon the agent and the chief executive officer or director (as the case may be) to show cause within such time as may be specified in the notice why the chief executive officer or director (as the case may be) should not be removed. [11/2013] |
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(6) If the agent and the chief executive officer or director (as the case may be) referred to in subsection (5) —| (a) | fails to show cause within the time specified under subsection (5)(b) or within such extended period of time as the Authority may allow; or | | (b) | fails to show sufficient cause, |
| the Authority must give written notice to the agent of the date on which the direction to remove the chief executive officer or director (as the case may be) is to take effect. |
[11/2013] |
| (7) Any agent, for any foreign insurer carrying on insurance business in Singapore under a foreign insurer scheme, which fails to comply with any direction of the Authority under subsection (3) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000. [11/2013] |
| (8) No criminal or civil liability shall be incurred by an agent for any foreign insurer carrying on insurance business in Singapore under a foreign insurer scheme, or any person acting on behalf of the agent, in respect of anything done or omitted to be done with reasonable care and in good faith in the discharge or purported discharge of the obligations of the agent under subsection (3). [35G [11/2013] |
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| Right of hearing and appeal |
59.—(1) Before revoking any appointment of an administrator under section 54(5) or prohibiting any foreign insurer from carrying on insurance business in Singapore under section 57, the Authority must —| (a) | give the administrator or the foreign insurer (as the case may be) written notice of its intention to do so; and | | (b) | in the notice referred to in paragraph (a), call upon the administrator or the foreign insurer to show cause within such time as may be specified in the notice why his, her or its appointment should not be revoked, or (as the case may be) why he, she or it should not be prohibited from carrying on insurance business in Singapore. |
(2) If the person to whom notice has been given under subsection (1) —| (a) | fails to show cause within the time given to the person to do so or within such extended period of time as the Authority may allow; or | | (b) | fails to show sufficient cause, |
| the Authority must give written notice to that person of the date on which the revocation of appointment or the prohibition (as the case may be) is to take effect. |
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| (3) A decision of the Authority to revoke any appointment of an administrator under section 54(5) or to prohibit any foreign insurer from carrying on insurance business in Singapore under section 57 does not take effect until the expiration of a period of 30 days after the Authority has informed the administrator of the revocation of appointment or the foreign insurer of the prohibition (as the case may be) under subsection (2). [11/2013] |
| (4) Any person who is aggrieved by a decision of the Authority to revoke any appointment of an administrator under section 54(5) or to prohibit any foreign insurer from carrying on insurance business in Singapore under section 57 may, within 30 days after the Authority has informed the person of the revocation of appointment or the prohibition (as the case may be) under subsection (2), appeal to the Minister in writing in accordance with Part 3B. [11/2013] |
| (5) If, within the period referred to in subsection (4), the person concerned gives due notice of appeal to the Minister, the revocation of appointment or the prohibition (as the case may be) by the Authority does not take effect unless the decision is confirmed by the Minister or the appeal is for any reason dismissed by the Minister. [35H [11/2013] |
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| Effect of prohibition on carrying on insurance business |
60.—(1) Where a foreign insurer is prohibited from carrying on insurance business in Singapore, the foreign insurer must cease to carry on in Singapore insurance business of the kind of which the foreign insurer is prohibited from carrying on.| (2) Subsection (1) does not prejudice the enforcement by any policy owner or person of any right or claim against the foreign insurer or by the foreign insurer of any right or claim against any policy owner or person. |
| (3) Nothing in subsection (1) prohibits a foreign insurer from collecting or receiving premiums on insurance policies effected before the date of prohibition. [35I |
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| Effect of revocation of appointment of administrator |
61.—(1) Where the appointment of the administrator of any foreign insurer scheme is revoked, all foreign insurers carrying on insurance in Singapore under that scheme must cease to carry on in Singapore insurance business under the scheme.| (2) Subsection (1) does not prejudice the enforcement by any policy owner or person of any right or claim against the foreign insurer or by the foreign insurer of any right or claim against any policy owner or person. |
| (3) Nothing in subsection (1) prohibits a foreign insurer from collecting or receiving premiums on insurance policies effected before the date the appointment of its administrator is revoked. [35J |
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| Holding out as foreign insurer or as agent of foreign insurer |
62.—(1) Any person who —| (a) | holds himself, herself or itself out as a foreign insurer permitted to carry on insurance business in Singapore under any foreign insurer scheme when the person is not a foreign insurer, or is not permitted to carry on insurance business in Singapore under the foreign insurer scheme; or | | (b) | holds himself, herself or itself out as an agent permitted to act for a foreign insurer carrying on insurance business in Singapore under any foreign insurer scheme when the person has not been appointed as the foreign insurer’s agent or is not permitted to act as such an agent, |
| shall be guilty of an offence. |
[11/2013] (2) Any person who is guilty of an offence under subsection (1) shall be liable on conviction —| (a) | in the case of an individual, to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years or to both and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part of a day during which the offence continues after conviction; or | | (b) | in any other case, to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction. [35K [11/2013] |
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63.—(1) The Authority may make such regulations as are necessary or expedient for the purpose of carrying out the provisions of this Part and, in particular, such regulations may —| (a) | require the foreign insurers who wish to carry on insurance business in Singapore under any foreign insurer scheme to obtain such undertakings and guarantees by any person acceptable to the Authority as the Authority considers necessary to secure for the benefit of potential claimants the payment of all potential claims that may arise from the carrying on of insurance business in Singapore by the foreign insurers under the scheme; | | (b) | require the foreign insurers carrying on insurance business in Singapore under any foreign insurer scheme, or the administrator, on behalf of such foreign insurers, to make and maintain on behalf of all the foreign insurers carrying on business in Singapore under the scheme such insurance funds and deposits with the Authority as the Authority considers necessary to secure the payment of claims arising from contracts of insurance entered into by the foreign insurers under the scheme; | | (c) | require the foreign insurers to authorise the administrator or an agent or both to accept service of notices and legal processes on the foreign insurers’ behalf; | | (d) | provide for the imposition of a levy or fee in respect of the carrying on of insurance business in Singapore by the foreign insurers under any foreign insurer scheme; | | (e) | require the administrator of a foreign insurer scheme to keep, in such form as may be prescribed —| (i) | a register of foreign insurers carrying on insurance business in Singapore under that scheme; | | (ii) | a register of the agents of foreign insurers carrying on insurance business in Singapore under that scheme; and | | (iii) | such other registers relating to or connected with the activities of foreign insurers carrying on insurance business in Singapore under that scheme and their agents as the Authority may determine; |
| | (f) | require the administrator of a foreign insurer scheme to provide such accounts, reports and statements in respect of the carrying on of insurance business in Singapore by the foreign insurers under the scheme as may be prescribed; | | (g) | provide for any other duties not referred to in paragraph (b), (e) or (f) of the administrator of a foreign insurer scheme in respect of the scheme; | | (h) | require the appointment, and provide for the duties, of such officers of the administrator of any foreign insurer scheme as may be prescribed; | | (i) | provide for the duties of the agents of foreign insurers carrying on insurance business in Singapore under any foreign insurer scheme, including requiring each agent to keep, in such form as may be prescribed —| (i) | a register of foreign insurers carrying on insurance business in Singapore for whom he, she or it is an agent; and | | (ii) | such other registers relating to or connected with his, her or its activities as the Authority may determine; |
| | (j) | prohibit any person from acting as agent for any foreign insurer carrying on insurance business in Singapore under any foreign insurer scheme unless it is a company having a prescribed minimum share capital and meets such other requirements as to shareholdings as may be prescribed; | | (k) | empower the Authority to, and specify the circumstances in which the Authority may, prohibit any person from acting, or continuing to act, as agent for any foreign insurer carrying on insurance business in Singapore under any foreign insurer scheme and to specify the effects of a prohibition in respect of contracts of insurance entered into by the foreign insurer under any foreign insurer scheme before the date of prohibition; | | (l) | provide for the exemption from, or modification of, the operation of the provisions of this Act in relation to any foreign insurer carrying on insurance business in Singapore under any foreign insurer scheme or any of its agents; and | | (m) | provide for any transitional provisions necessary in the event of the revocation of any foreign insurer scheme. [23/2003; 11/2013] |
| (2) The Authority may, from time to time and in such form or manner as it considers appropriate, publish any information obtained or received by the Authority under regulations made under subsection (1). [35L [11/2013] |
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