Division 1 — General restriction on insurers
[11/2013]
No person to carry on insurance business unless licensed or authorised by Authority
4.—(1)  Subject to the provisions of this Act, a person must not carry on any class of insurance business in Singapore as an insurer unless the person is licensed by the Authority under this Act in respect of that class of business.
[23/2003; 11/2013]
(2)  Except for a licensed insurer or a foreign insurer carrying on insurance business in Singapore under a foreign insurer scheme, a person carrying on reinsurance business outside Singapore must not carry on the business of providing the reinsurance of liabilities under insurance policies, as a principal and as an insurer, to persons in Singapore unless —
(a)the person is authorised by the Authority under section 42 to do so; or
(b)the person is providing the reinsurance of liabilities under insurance policies pursuant to an arrangement which was not solicited by the person but was initiated by —
(i)a licensed insurer;
(ii)a registered insurance broker; or
(iii)a person exempt from registration as an insurance broker under section 92(1)(a), (b), (c), (d), (e) or (f) who has notified the Authority, in such manner as may be prescribed under section 154(1), of its commencement of insurance broking business.
[11/2013]
(3)  Any person licensed by the Authority under this Act to carry on insurance business as an insurer in respect of life business may carry on general business relating to short-term accident and health policies while being so licensed, and —
(a)the person need not be licensed as an insurer in respect of general business in order to carry on general business relating to short-term accident and health policies; and
(b)the general insurance business relating to short-term accident and health policies carried on by the person is treated as part of the person’s life business.
[11/2013]
(4)  An insurer licensed to carry on both life business and general business may treat its short-term accident and health policies as part of its life business or its general business.
[11/2013]
(5)  Any person who contravenes subsection (1) or (2) shall be guilty of an offence and shall be liable on conviction —
(a)in the case of an individual, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 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 $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.
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[11/2013]
Holding out as licensed insurer or authorised reinsurer
5.—(1)  Where any person holds himself, herself or itself out, or purports to hold himself, herself or itself out, to be a licensed insurer or an authorised reinsurer in respect of life business or general business, or both, when that person is not licensed or authorised under this Act in respect of that business —
(a)that person shall be guilty of an offence; and
(b)where that person is a corporation, limited liability partnership or firm, every director, manager or officer of the corporation and every partner or officer of the firm and every partner or manager of the limited liability partnership (as the case may be) shall, unless the person proves that the offence was committed without the person’s knowledge or consent, 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 $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 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 $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.
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[11/2013]
Use of word “insurance”
6.—(1)  Subject to subsection (3) and except with the written consent of the Authority, a person, other than a licensed insurer, an authorised reinsurer or a foreign insurer carrying on insurance business in Singapore under a foreign insurer scheme, must not —
(a)use the word “insurance” or any of its derivatives in any language, or any other word indicating that that person carries on insurance business in the name, description or title under which it carries on business in Singapore; or
(b)make any representation to such effect in any bill head, letter paper, notice, advertisement or in any other manner.
[23/2003; 11/2013]
(2)  Subject to subsections (4) and (5) and except with the written consent of the Authority, a person must not —
(a)use the word “insurance” or any of its derivatives in any language, or any other word, that indicates that the person carries on business as an insurance intermediary in the name, description or title under which it carries on business in Singapore; or
(b)make any representation to such effect in any bill head, letter paper, notice, advertisement or in any other manner.
[23/2003; 11/2013]
(3)  Subsection (1) does not apply to any registered person as defined in section 9(9).
[11/2013]
(4)  Subsection (2) does not apply to —
(a)a registered insurance broker;
(b)a person exempt from registration as an insurance broker under section 92(1)(a), (b), (c), (d), (e) or (f) who has notified the Authority, in such manner as may be prescribed under section 154(1), of the person’s commencement of insurance broking business;
(c)a licensed financial adviser or an exempt financial adviser, which provides any financial advisory service in respect of life policies;
(d)an insurance agent operating under a written agreement pursuant to section 64;
(e)an insurance agent to whom section 64 does not apply;
(f)an agent of a foreign insurer carrying on insurance business in Singapore under a foreign insurer scheme; or
(g)such other person as may be prescribed.
[23/2003; 11/2013]
(5)  Any person allowed under subsection (2) to use any word referred to in that subsection in the name, description or title under which the person carries on business in Singapore must, when using that word in that name, description or title, indicate that the person carries on business as an insurance intermediary.
[11/2013]
(6)  Nothing in this section prohibits an association of insurers from using the word “insurance” or any of its derivatives in any language as part of its name or description of its activities.
(7)  Any person who contravenes subsection (1), (2) or (5) shall be guilty of an offence and shall be liable on conviction —
(a)in the case of an individual, to a fine not exceeding $12,500 or to imprisonment for a term not exceeding 12 months or to both and, in the case of a continuing offence, to a further fine not exceeding $1,250 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 $25,000 and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part of a day during which the offence continues after conviction.
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[11/2013]
Restrictions on co-branding
7.—(1)  Except with the prior written consent of the Authority, a licensed insurer, authorised reinsurer or foreign insurer carrying on insurance business in Singapore under a foreign insurer scheme must not use, together with its name, logo or trade mark in the course of the business it carries on in Singapore, the name, logo or trade mark of any person who —
(a)carries on the business of assuming risk or undertaking liability under policies, whether in Singapore or elsewhere; but
(b)is not a licensed insurer, an authorised reinsurer or a foreign insurer carrying on insurance business in Singapore under a foreign insurer scheme.
[11/2013]
(2)  Any insurer which contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction 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.
[5A
[11/2013]
Prohibition relating to solicitation of insurance business
8.—(1)  Subject to subsection (5), a person must not solicit any insurance business for any insurer other than —
(a)a licensed insurer;
(b)an authorised reinsurer;
(c)a foreign insurer carrying on insurance business in Singapore under a foreign insurer scheme; or
(d)any other insurer entitled to carry on insurance business in Singapore.
[11/2013]
(2)  Subject to subsection (5), a person who solicits any insurance business for a licensed insurer or an insurer referred to in subsection (1)(d) —
(a)may only solicit in respect of the insurance business in Singapore of that insurer; and
(b)must not solicit in respect of the insurance business of —
(i)any branch located outside Singapore of that insurer; or
(ii)where that insurer is incorporated, formed or established outside Singapore, its head office.
[11/2013]
(3)  Any person who contravenes subsection (1) or (2) shall be guilty of an offence and shall be liable on conviction —
(a)in the case of an individual, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 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 $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.
[11/2013]
(4)  A person whose business it is to publish or to arrange for the publication of advertisements shall not be guilty of an offence under subsection (3) if the person proves that —
(a)the person received the advertisement for publication in the ordinary course of the person’s business;
(b)the matters contained in the advertisement were not, wholly or in part, devised or selected by the person or by any person under the person’s direction or control; and
(c)the person did not know and had no reason for believing that the publication of the advertisement would constitute an offence.
[11/2013]
(5)  Subsections (1) and (2) do not apply to such persons or class of persons as the Authority may prescribe, subject to such terms or conditions as the Authority may prescribe.
[11/2013]
(6)  In this section, unless the context otherwise requires —
“advertisement” means the dissemination or conveyance of information, or invitation or solicitation by any means or in any form, including by means of —
(a)publication in a newspaper, magazine, journal or other periodical;
(b)display of posters or notices;
(c)circulars, handbills, brochures, pamphlets, books or other documents;
(d)letters addressed to individuals, bodies corporate or bodies unincorporate;
(e)photographs or cinematograph films; or
(f)sound broadcasting, television, the Internet or other media,
but does not include an advertisement issued outside Singapore that is made available —
(g)in a newspaper, magazine, journal or other periodical published and circulating principally outside Singapore;
(h)in a sound or television broadcast transmitted principally for reception outside Singapore; or
(i)by any other means of broadcasting or communication principally for circulation or reception outside Singapore;
“solicit”, in relation to insurance business —
(a)means, whether in Singapore or elsewhere, offering to, inviting, or issuing any advertisement containing any offer or invitation to, the public or any section of the public in Singapore to enter into a contract of insurance; and
(b)the reference to an advertisement in paragraph (a) includes an advertisement containing information which is, or might reasonably be presumed to be, intended to lead, directly or indirectly, to the entering into of a contract of insurance.
[11/2013]
(7)  For the purposes of this section, in determining whether an offer, invitation or advertisement is made or issued to the public or any section of the public in Singapore, regard must be had to such considerations as the Authority may prescribe.
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[11/2013]
Registration of representative office
9.—(1)  A person must not establish or operate a representative office unless the representative office is registered with the Authority.
[11/2013]
(2)  Any person who desires to establish and operate a representative office must —
(a)apply in writing to the Authority for registration under this section; and
(b)provide any information or document that the Authority may require.
[11/2013]
(3)  The Authority must refuse to register a representative office unless —
(a)the applicant is a company, or a company incorporated outside Singapore; and
(b)the applicant satisfies such criteria as may be determined by the Authority.
[11/2013]
(4)  The Authority may register a representative office subject to any conditions that it considers necessary, and the registered person must comply with the conditions of registration imposed by the Authority under this section.
[11/2013]
(5)  The Authority may at any time add to, vary or revoke any condition of registration, or impose a condition of registration.
[11/2013]
(6)  Every registered person must provide any information or document that the Authority may require from time to time.
[11/2013]
(7)  The Authority may cancel the registration of a representative office if the registered person contravenes —
(a)any condition of registration imposed by the Authority; or
(b)any provision of this Act.
[11/2013]
(8)  Any person who contravenes subsection (1) or (6), fails to comply with any condition of registration imposed by the Authority under subsection (4) or (5), or operates a representative office which has had its registration cancelled by the Authority under subsection (7), shall be guilty of an offence and 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.
[11/2013]
(9)  In this section, unless the context otherwise requires —
“registered person” means a person whose representative office is registered with the Authority under this section;
“representative office” means an office in Singapore established —
(a)by a person who —
(i)intends to carry on insurance business in Singapore; and
(ii)is not an authorised reinsurer, and does not carry on any insurance business or any other business in Singapore; and
(b)to carry out liaison work, market research or feasibility studies for the use of that person.
[6A
[11/2013]
Examination of persons suspected of carrying on insurance business
10.—(1)  Whenever the Authority has reason to believe that a person has contravened any of the provisions of this Act, it may call for or inspect the books, accounts and records of that person in order to ascertain whether or not that person has contravened or is contravening any of the provisions of this Act.
(2)  Any person who wilfully refuses to submit such books, accounts and records or to allow the inspection thereof shall be guilty of an offence and 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.
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[11/2013]