PART II | Insurance agent to operate under written agreement |
3.—(1) An insurance agent shall not arrange, or hold himself out as entitled to arrange, a contract of insurance as agent for a registered insurer unless an agreement in writing between the insurance agent and the insurer authorises the insurance agent to arrange —| (a) | that contract; | | (b) | any contract of insurance; or | | (c) | a class of contracts of insurance in which that contract is included, |
| as agent for that insurer. |
(2) A registered insurer shall not cause or permit an insurance agent to arrange, or hold himself out as entitled to arrange, a contract of insurance as agent for that insurer unless an agreement in writing between the insurer and the insurance agent authorises the insurance agent to arrange —| (a) | that contract; | | (b) | any contract of insurance; or | | (c) | a class of contracts of insurance in which that contract is included, |
| as agent for that insurer. |
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| (3) Subsections (1) and (2) shall not apply in relation to any act or thing done by an employee of a registered insurer in the course of performing his duties as such an employee. |
| (4) 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. |
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| Effect of payment to insurance intermediary |
4.—(1) Where a contract of insurance is arranged or effected by an insurance intermediary, payment to the insurance intermediary of moneys payable by the insured to the insurer under or in relation to the contract, whether in respect of a premium or otherwise, is a discharge, as between the insured and the insurer, of any liability of the insured under or in respect of the contract, to the extent of the amount of the payment.| (2) Payment to an insurance intermediary by or on behalf of an intending insured of moneys in respect of a contract of insurance to be arranged or effected by the insurance intermediary, whether the payment is in respect of a premium or otherwise, is a discharge, as between the insured and the insurer, of any liability of the insured under or in respect of the contract, to the extent of the amount of the payment. |
| (3) Payment by an insurer to an insurance intermediary of moneys payable to an insured, whether in respect of a claim, return of premiums or otherwise, under or in relation to a contract of insurance, does not discharge any liability of the insurer to the insured in respect of those moneys. |
| (4) An agreement, in so far as it purports to alter or restrict the operation of subsection (1), (2) or (3), shall be void. |
| (5) Subsection (4) does not render void an agreement between an insurance intermediary and an insured in so far as the agreement allows the insurance intermediary to set off against moneys payable to the insured moneys payable by the insured to the insurance intermediary in respect of premiums. |
| (6) This section shall not apply to general reinsurance brokers and life reinsurance brokers. |
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| Disclosure by insurance intermediary and liability of insurer in relation to group policy |
5.—(1) No insurance intermediary shall invite any person to make an offer or proposal to enter into a contract of insurance without disclosing —| (a) | the name of the registered insurer; | | (b) | his relationship with the registered insurer; and | | (c) | the premium charged by the registered insurer. |
(2) No insurance intermediary shall arrange any group policy for 2 or more persons where any person insured under the group policy is liable to pay the premium without disclosing to every person insured under the group policy —| (a) | the name of the registered insurer; | | (b) | his relationship with the registered insurer; | | (c) | the conditions of the group policy; and | | (d) | the premium charged by the registered insurer. |
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| (3) A registered insurer shall be liable to the person insured under a group policy, if the person insured has paid the premium to the group policy owner, regardless that the registered insurer has not received the premium from the group policy owner. |
| (4) The registered insurer of a group policy shall pay the moneys due under the policy to the person insured or any person entitled through him. |
| (5) This section shall not apply to general reinsurance brokers and life reinsurance brokers. |
| (6) For the purposes of this section, “insurance intermediary” includes the group policy owner of any group policy. |
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| Representation by insurance intermediary |
6.—(1) No insurance intermediary shall with intent to deceive make a false or misleading statement —| (a) | as to any amount that would be payable in respect of a proposed contract of insurance; or | | (b) | as to the effect of any of the provisions of a contract of insurance or of a proposed contract of insurance. |
| (2) A reference in subsection (1) to making a misleading statement includes a reference to omitting to disclose matter that is material to a statement. |
(3) No insurance intermediary shall, with intent to deceive, in relation to a proposed contract of insurance —| (a) | write on a form, being a form that is given or sent to the insurer, matter that is material to the contract and is false or misleading in a material particular; | | (b) | omit to disclose to the insurer matter that is material to the proposed contract; | | (c) | advise or induce the intending insured to write on a form, being a form that is given or sent to the insurer, matter that is false or misleading in a material particular; or | | (d) | advise or induce the intending insured to omit to disclose to the insurer matter that is material to the proposed contract. |
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(4) No insurance intermediary shall, with intent to deceive, in relation to a claim under a contract of insurance —| (a) | fill up, in whole or in part, a form, being a form that is given or sent to the insurer, in such a way that the form is false or misleading in a material particular; | | (b) | omit to disclose to the insurer matter that is material to the claim; | | (c) | induce the insured to fill up, in whole or in part, a form, being a form that is given or sent to the insurer, in such a way that the form is false or misleading in a material particular; or | | (d) | advise or induce the insured to omit to disclose to the insurer matter that is material to the claim. |
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| (5) Any person who contravenes subsection (1), (3) or (4) shall be guilty of an offence, notwithstanding that a contract of insurance does not come into being, 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. |
| (6) This section shall not apply to general reinsurance brokers and life reinsurance brokers. |
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| Insurance agent not to act for unregistered insurer |
7.—(1) No person shall, without the approval of the Authority, act as an insurance agent for an insurer who is not entitled under the Insurance Act (Cap.142) to carry on the business in question in Singapore.| (2) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 increased by a sum not exceeding $1,000 for every day or part thereof on which he is proved to have done so, or to imprisonment for a term not exceeding 2 years or to both. |
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| Licence to carry on general business with Lloyd’s underwriters |
8.—(1) No person shall —| (a) | act as an insurance agent for any individual in respect of a contract of insurance with any Lloyd’s underwriter; or | | (b) | in the course of business as a registered insurance broker, negotiate any contract of insurance with any Lloyd’s underwriter, |
| except under the authority of a licence issued by the Authority or in respect of any risk for which the registered insurance broker has been permitted under section 23(5) to negotiate with any insurer. |
| (2) Any person who desires to obtain a licence under subsection (1) shall apply to the Authority in writing and shall furnish such information as the Authority may require. |
| (3) In issuing a licence under subsection (1), the Authority may impose such conditions as it thinks fit and may at anytime add to, vary or revoke such conditions. |
| (4) Sections 19 and 20 shall apply, with the necessary modifications, in relation to the annual fees payable for and the cancellation of a licence issued under subsection (1). |
| (5) Any person who contravenes subsection (1) or who fails to comply with any of the conditions of a licence issued under subsection (1) 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 and, in the case of a continuing offence, to a further fine of $1,000 for every day or part thereof during which the offence continues after conviction. |
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| Control of brochures used by insurance intermediary |
9.—(1) The Authority may, by notice in writing, require any insurance intermediary to submit to it any brochure which is for the time being in use by the insurance intermediary for describing the terms or conditions of, or the benefits to be or likely to be derived from, policies.| (2) Where the whole or part of any such brochure is not in English, there shall be submitted with it a translation in English. |
| (3) A requirement under this section, unless it is otherwise provided therein, shall apply to all such brochures coming into use after the making of the requirement and before the Authority notifies the insurance intermediary that the requirement is withdrawn. |
| (4) If it appears to the Authority, after affording the insurance intermediary an opportunity to make representations orally or in writing that any such brochure contravenes or fails to comply with any provision of this Act, or is in any respect likely to mislead, the Authority may, by notice in writing, direct the insurance intermediary to discontinue the use of the brochure in Singapore forthwith or from a date specified in the notice. |
| (5) For each occasion on which any insurance intermediary uses a copy of a brochure in contravention of subsection (4), the insurance intermediary shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000. |
| (6) In this section, “brochure” includes any leaflet, circular or similar advertising matter, whether printed or not. |
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| General obligation to furnish information |
| 10. The Authority may, by notice in writing, require any insurance intermediary to furnish it with information about any matter related to any business carried on by the insurance intermediary in Singapore or elsewhere, if in the opinion of the Authority it requires that information for the discharge of its functions under this Act. |
| Saving for validity of policies, etc. |
| 11. Nothing in this Act shall operate to invalidate any contract of insurance or derogate from any other written law. |
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