4.—(1) The assets of any insurance fund established under section 16 of the Act shall be valued in accordance with this Part.
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(2) In determining the surplus of any insurance fund established in respect of Singapore policies, only Singapore Insurance Fund Assets as defined in Part IV shall be taken into account.
(3) This Part shall not apply for the purposes of determining the margin of solvency of an insurer under section 17(1)(b) of the Act or to any insurance fund established in respect of investment-linked policies.
Land and buildings
5.—(1) The value of any land or building shall not exceed its cost less accumulated depreciation or, where there has been a revaluation, the revalued amount less subsequent accumulated depreciation.
(2) Any revaluation has to be approved by the Authority.
Government securities
6. The value of securities issued by a government or a public authority of that government shall, at the election of the insurer, be —
(a)
their amortised values; or
(b)
the aggregate cost or the aggregate of the nominal value of the securities, whichever is the lower.
Unit trusts and equity shares
7.—(1) The value of unit trusts and quoted equity shares shall be —
(a)
an amount not exceeding the aggregate of the cost of the unit trusts and shares; or
(b)
the aggregate of the market value of the unit trusts and shares,
whichever is the lower.
(2) Shares that have been suspended by any stock exchange from trading in excess of 10 consecutive trading days at the date for which the value is to be determined shall be given zero value.
(3) The value of unquoted equity shares shall be an amount not exceeding the net tangible asset value of the shares or the net realisable value of the shares, whichever is the lower.
Corporate bonds and bills of exchange
8.—(1) The value of quoted corporate bonds, including convertible bonds, shall be an amount not exceeding the aggregate book value of the bonds or the aggregate of the market value of the bonds, whichever is the lower.
(2) Bonds that have been suspended by any stock exchange from trading in excess of 10 consecutive trading days at the date for which the value is to be determined shall be given zero value.
(3) The value of unquoted corporate bonds shall be an amount not exceeding the book value or the net realisable value of the bonds, whichever is the lower.
(4) For the purpose of determining the book value of a bond, other than convertible bonds, the premium or discount on purchase of the bond in relation to its par value may be amortised over the remaining term of the bond to its maturity.
(5) The value of bills of exchange accepted or endorsed by banks licensed under the Banking Act (Cap. 19) shall not exceed its cost.
Loans
9.—(1) The value of secured loans shall be an amount not exceeding —
(a)
the principal amount outstanding; or
(b)
in the first year in which the secured loans are granted, 70% of the net realisable value of the collateral and in subsequent years, 90% of the net realisable value of the collateral,
whichever is the lower.
(2) Notwithstanding paragraph (1), the value of residential loans shall be an amount not exceeding the principal amount outstanding or the net realisable value of the collateral, whichever is the lower.
(3) Notwithstanding paragraph (1), the value of policy loans shall be an amount not exceeding the principal amount outstanding or the cash value of the policy, whichever is the lower.
(4) Notwithstanding paragraph (1), the value of loans guaranteed by a bank licensed under the Banking Act shall be an amount not exceeding the principal amount outstanding.
(5) The value of unsecured loans shall be an amount not exceeding the principal amount outstanding or the net realisable value of the loans, whichever is the lower.
Cash, deposits and negotiable certificates of deposits
10.—(1) The value of cash and deposits with financial institutions other than negotiable certificates of deposits shall be an amount not exceeding the aggregate of the nominal amount of the holdings.
(2) The value of negotiable certificates of deposits shall be an amount not exceeding the aggregate of the market value or the aggregate of the nominal amount, whichever is the lower.
Outstanding premiums and agents’ balances
11. The value of the aggregate of outstanding premiums and agents’ balances shall be an amount not greater than the principal amount outstanding after deducting any provision for doubtful debts.
Deposits withheld by cedents and other recoverables
12.—(1) The value of deposits withheld by ceding insurers shall be an amount not exceeding the aggregate of the amount outstanding after deducting any amount deemed to be uncollectible.
(2) The value of net claims recoverable from reinsurers shall be an amount not exceeding the aggregate of the amount outstanding after deducting any amount deemed to be uncollectible.
(3) The amount of any income tax recoverable shall not include any amount which is likely to be disallowed by the tax authorities.
Investment income due or accrued and other receivables
13.—(1) The value of investment income due or accrued shall not include any amount outstanding for more than one year.
(2) The value of any accounts receivable arising from the sale of investments shall be an amount not greater than the principal amount outstanding.
Motor vehicles and computer equipment
14. The value of any motor vehicle or computer equipment shall be an amount not exceeding its cost less accumulated depreciation.
Valuation of assets
15.—(1) Any assets for which no provision is made in this Part shall be valued in accordance with generally accepted accounting principles.
(2) If, in the circumstances of a particular case, it appears that the value of any asset is of a lesser value than that determined in accordance with this Part, that lesser value shall be the value of the asset.
(3) Notwithstanding the provisions of these Regulations, the Authority may assign such other value to any asset or type of assets as the Authority considers fit or require that any asset or type of assets be left out of account.
(4) Assets of any insurance fund established by an insurer under the Act shall not include —
(a)
assets comprised in the deposit made by the insurer under section 13 of the Act;
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(b)
any amounts on account of goodwill; and
(c)
the benefit of development expenditure or similar items not realisable apart from the business or part thereof.