Insurance (Accounts and Statements) (Amendment) Regulations 2005

No. S 39

Insurance Act

(Chapter 142)

Insurance (Accounts and Statements) (Amendment) Regulations 2005

In exercise of the powers conferred by sections 36, 37(1) and 64(1) of the Insurance Act, the Monetary Authority of Singapore hereby makes the following Regulations:

Citation and commencement

1. These Regulations may be cited as the Insurance (Accounts and Statements) (Amendment) Regulations 2005 and shall come into operation on 31st January 2006.

Amendment of regulation 4

2. Regulation 4(2) of the Insurance (Accounts and Statements) Regulations 2004 (G.N. No. S 494/2004) (referred to in these Regulations as the principal Regulations) is amended by inserting, immediately after the words “Form 7,” in sub-paragraph (d), the words “excluding part (a) thereof,”.

Amendment of regulation 5

3. Regulation 5 of the principal Regulations is amended —

(a)

by deleting the words “Annex 1F (b)” in paragraph (1)(a)(i) and substituting the words “Annexes 1A, 1B and 1F (b)”;

(b)

by deleting the word “; and” at the end of paragraph (1)(a)(ii) and substituting the words “(other than Annex 2C);”;

(c)

by inserting, immediately after sub-paragraph (iii) of paragraph (1)(a), the following sub-paragraph:

“(iv)

a statement in relation to the fund solvency requirement of the insurance fund, which shall be in Form 21;”;

(d)

by deleting the full-stop at the end of sub-paragraph (b) of paragraph (1) and substituting the word “; and”, and by inserting immediately thereafter the following sub-paragraph:

“(c)	for each quarter, a statement in relation to the capital adequacy requirement, which shall be in Form 23.”;

(e)

by inserting, immediately after the words “excluding the Annexes and Notes” in paragraph (2)(a)(i), the words “(other than Annexes 1A and 1B)”;

(f)

by deleting the word “; and” at the end of paragraph (2)(a)(ii) and substituting the words “(other than Annex 2C);”;

(g)

by inserting, immediately after sub-paragraph (iii) of paragraph (2)(a), the following sub-paragraph:

“(iv)

a statement in relation to the fund solvency requirement of the insurance fund, which shall be in Form 21;”;

(h)

by deleting the full-stop at the end of sub-paragraph (b) of paragraph (2) and substituting the word “; and”, and by inserting immediately thereafter the following sub-paragraph:

“(c)	for each quarter, a statement in relation to the capital adequacy requirement, which shall be in Form 23.”;

(i)

by inserting, immediately after the words “excluding the Annexes and Notes” in paragraph (3)(a)(i), the words “(other than Annexes 1A and 1B)”;

(j)

by deleting the word “; and” at the end of paragraph (3)(a)(ii) and substituting the words “(other than Annex 2C);”;

(k)

by inserting, immediately after sub-paragraph (iii) of paragraph (3)(a), the following sub-paragraph:

“(iv)

a statement in relation to the fund solvency requirement of the insurance fund, which shall be in Form 21;”.

(l)

by inserting, immediately after the words “excluding the Annexes” in paragraph (3)(b)(i), the words “(other than Annex 2C)”;

(m)

by deleting the full-stop at the end of sub-paragraph (b) of paragraph (3) and substituting the word “; and”, and by inserting immediately thereafter the following sub-paragraph:

“(c)	for each quarter, a statement in relation to the capital adequacy requirement, which shall be in Form 23.”;

(n)

by inserting, immediately after the words “excluding the Annexes and Notes” in paragraph (4)(a)(i), the words “(other than Annexes 1A and 1B)”;

(o)

by deleting the word “; and” at the end of paragraph (4)(a)(ii) and substituting the words “(other than Annex 2C);”;

(p)

by inserting, immediately after sub-paragraph (iii) of paragraph (4)(a), the following sub-paragraph:

“(iv)

a statement in relation to the fund solvency requirement of the insurance fund, which shall be in Form 21;”;

(q)

by deleting the full-stop at the end of sub-paragraph (b) of paragraph (4) and substituting the words “(other than Annex 2C); and”, and by inserting immediately thereafter the following sub-paragraph:

“(c)	for each quarter, a statement in relation to the capital adequacy requirement, which shall be in Form 23.”; and

(r)

by deleting the words “Quarterly returns” in the regulation heading and substituting the words “Quarterly and other returns”.

Amendment of regulation 11

4. Regulation 11 of the principal Regulations is amended —

(a)

by deleting paragraphs (1), (2) and (3) and substituting the following paragraphs:

“(1) Any document to be lodged by a registered insurer under paragraph (3) or regulation 4 (7), 6 (other than paragraph (1)(b)(i) thereof), 7, 12 or 14 shall be lodged by sending to the Authority —

(a)	in the case of an actuary’s report lodged under regulation 6 (1)(c), (2)(b) or (3) or 7 (1), the original of the document;
(b)	in the case of an annual report lodged under regulation 14, 3 published copies of the report; or
(c)	in any other case, the original and 2 copies of the document.

(2) The original document lodged under regulation 4 (7), 6 (1)(a) or (b)(ii), (2)(a) or (4) or 7 (2) shall bear —

(a)

in the case of any document lodged under regulation 4 (7), the signatures of —

(i)	2 directors of the insurer; and
(ii)	the principal officer of the insurer or an officer signing on behalf of the principal officer; and

(b)

in any other case, the signature of the actuary.

(3) A registered insurer shall, for any document lodged under regulation 4 (other than paragraph (7) thereof), 6 (1)(b)(i) or 8, lodge a certificate in Form 24 signed by —

(a)	2 directors of the insurer; and
(b)	the principal officer of the insurer or an officer signing on behalf of the principal officer.”; and

(b)

by deleting the word “annual” in the regulation heading.

Amendment of regulation 14

5. Regulation 14 of the principal Regulations is amended —

(a)	by deleting the words “within the period specified in regulation 15 (a)” in paragraph (1); and
(b)	by deleting the words “a copy of” in paragraph (2).

Amendment of regulation 15

6. Regulation 15 of the principal Regulations is amended —

(a)

by deleting the word “and” at the end of paragraph (a)(ii);

(b)

by deleting sub-paragraph (iii) of paragraph (a) and substituting the following sub-paragraphs:

“(iii)	in the case of any certificate referred to in regulation 11 (3) or any report referred to in regulation 12, within 4 months from the last day of the period to which the document relates; and
(iv)	in any other case, within 3 months from the last day of the period to which the document relates; and”;

(c)

by inserting, immediately after the words “regulation 4” in paragraph (b)(i), the words “(other than paragraph (7) thereof)”;

(d)

by deleting the words “or (iii)” in paragraph (b)(ii);

(e)

by deleting the word “and” at the end of paragraph (b)(ii);

(f)

by deleting the words “regulation 5 (1)(a) or (b)(i), (2)(a) or (b)(i), (3)(a) or (b)(i)” in paragraph (b)(iii) and substituting the words “regulation 5 (1)(a), (b)(i) or (c), (2)(a), (b)(i) or (iii) or (c), (3)(a), (b)(i) or (c)”; and

(g)

by deleting the full-stop at the end of sub-paragraph (iii) of paragraph (b) and substituting the word “; and”, and by inserting immediately thereafter the following sub-paragraph:

“(iv)

in the case of any document lodged under regulation 4 (7), within 6 months from the last day of the period to which the document relates.”.

Deletion of regulation 16

7. Regulation 16 of the principal Regulations is deleted.

Amendment of First Schedule

8. The First Schedule to the principal Regulations is amended —

(a)

by deleting Forms 1 to 10 and substituting the following Forms:

“FORM 1

Notes to Form 1 (to be shown separately for each class of business)

The following shall be stated as Notes to this Form:

Note 1

The aggregate amounts of loans to and amounts due from —

(a) directors as defined in section 31 of the Insurance Act (Cap. 142); and

(b) employees of the registered insurer.

Aggregate amounts shall be shown separately for directors and employees.

Note 2

Description and amount of the following items:

(a) intangible assets (which shall be valued in accordance with Singapore Generally Accepted Accounting Principles); and

(b) contingent assets and liabilities

Note 3

Description of any change in accounting policies and methodologies in the valuation of assets and liabilities and the quantification of their effects.

Note 4

Description of any prior adjustment and correction for errors and reasons for the adjustments and corrections.

Note 5

In respect of financial guarantee business —

(a) where premiums are payable in instalments, the present value of future instalment premiums payable in a future accounting period and the discount rate used; and

(b) where the premiums are payable in full at the commencement of the policy of insurance, the full amount of the premiums payable in the accounting period in which the policy commences.

Instructions for completion of Form 1, Notes, Annexes 1A to 1N and Annexes 1 (i), 1 (ii) and 1 (iii)

1. All amounts shown in this form are to be rounded up to the nearest dollar. Negative amounts shall be preceded by “—”.

2. Notes, Annexes 1A to 1N and Annexes 1 (i), 1 (ii) and 1 (iii) shall be completed in full separately for each insurance fund established and maintained under the Act. For any Note or Annex where there are no entries, a “Nil” Note or Annex shall be submitted. A Note or an Annex which is not applicable, need not be submitted.

3. “Equity securities”, “Debt securities” and “Government debt securities” have the same respective meanings as in regulation 2 of the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004).

4. “Debt securities” includes accrued interest relating to debt securities.

5. “Investment income due or accrued” includes accrued interest relating to deposits.

6. “Inter-fund balances and intra-group balances (due from)” includes balances due from other insurance funds, shareholders fund, head office, overseas branches, and related corporations.

7. “Inter-fund balances and intra-group balances (due to)” includes balances due to other insurance funds, shareholders fund, head office, overseas branches, and related corporations.

8. “Qualifying debt securities” has the same meaning as in Table 7 of the Sixth Schedule of the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004).

9. “Other debt securities” includes any listed and unlisted bonds issued by corporations and any bill of exchange.

10. “Land and buildings” includes any property acquired through foreclosures and in settlement of debts.

11. “Loans” shall be reported net of provisions.

12. “Other secured loans” includes any loan guaranteed by a bank licensed under the Banking Act (Cap. 19).

13. “Outstanding premiums and agents’ balances” refers to net premiums payable to or paid into, an insurance fund established and maintained under the Act (including net premiums due from overseas branches/related companies/head office). For direct business, “agents’ balances” shall be net of the premium refund to insured and the commissions payable to agents or brokers. It shall be determined on an agent by agent or broker by broker basis, as the case may be. Outstanding premiums due from insured shall only be offset by claims and premium refund (if any) payable to the insured on an insured by insured basis. In the case of life insurers, “agents’ balances” shall not include amounts due from agents in respect of financing schemes provided by the insurers. A reinsurer shall treat “outstanding premiums and agents’ balances” in a similar manner as a direct insurer.

14. “Financial advisers” has the same meaning as in section 2 of the Financial Advisers Act (Cap. 110).

15. “Reinsurance recoverables (on paid claims)” has the same meaning as in regulation 2 of the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004) and includes any amount that a registered insurer is entitled to recover, but has yet to recover from its overseas branches, its related corporations or head office under a reinsurance arrangement. Claims that an insurer is entitled to recover but has yet to recover from, and premiums owing to, a particular person with whom the insurer has a reinsurance arrangement shall be set off on an individual account basis.

16. “Reinsurance recoveries on unpaid claims” refers to such recoveries on claim liabilities, outstanding claims and claims in the course of payment.

17. “Minimum condition liability” has the same meaning as in regulation 2 of the Insurance (Valuation and Capital) Regulations 2004.

18. “Other liabilities”, in relation to an insurance fund established and maintained under the Act, shall be the amount representing the sum of —

(a) outstanding claims;

(b) annuities due and unpaid;

(d) amounts owing to other insurers;

(e) bank loans and overdrafts;

(f) inter-fund balances and intra-group balances (due to); and

(g) “Others” means any liability other than the items described in sub-paragraphs (a) to (f) above, for example special reserves, and in the case of a credit insurer, political risk insurer or financial guarantee insurer, contingency reserves.

19. “Financial guarantee insurer” means an insurer as defined in the Insurance (Financial Guarantee Insurance) Regulations (Rg 6).

20. “Outstanding claims” refers to claims which have been approved by the registered insurer for payment but not yet paid and includes expenses associated with the settlement of such claims but does not include such claims that are already included in policy liabilities. For life business, the amount also includes claims which have not been approved but the quantum for which is fixed.

21. “Amounts owing to insurers” refers to claims owing by the registered insurer to ceding companies and premiums owing to any person carrying on reinsurance business, including net premiums or claims payable to overseas branches, related corporations or head office of the insurer. Premiums and claims owing to and owing by the registered insurer shall be set off on an individual account basis.

22. “Direct Business — Others” includes business from direct clients, direct marketing and other distribution channels.

23. For the purposes of Annex 1C —

(a) “Last Revaluation Date” refers to the date of the last available valuation report by a qualified property valuer;

(b) “Last Reported Amount” refers to the relevant “Amount” reported as at the end of the last reporting period;

(c) “Changes From Last Reported Amount” refers to any depreciation (appreciation) on the land or building from “Last Reported Amount”, or from “Cost” if such asset purchase is made during the reporting period, whereby depreciation (appreciation) will be reported as a negative (positive) amount; and

(d) “Amount” is the sum of “Last Reported Amount” and “Changes From Last Reported Amount”, or the sum of “Changes from before Last Reported Amount” and “Cost” if such asset purchase is made during the reporting period.

24. For the purposes of Annexes 1 (i) and 1 (ii) —

(a) “related corporation” means a related corporation of the registered insurer, where the reinsurance arrangement between the related corporation and the insurer is one which is exempted from the application of section 56A of the Act under regulation 12 (b) of the Insurance (Authorised Reinsurers) Regulations (Rg 13);

(b) “registered insurer” has the same meaning as in section 1A of the Act; and

(c) “unregistered reinsurer” means an insurer who is neither registered under section 8 of the Act nor authorised under section 8A of the Act to carry on reinsurance business.

FORM 2

Instructions for completion of Form 2 and Annexes 2A to 2J

1. All amounts shown in this Form are to be rounded up to the nearest dollar. Negative amounts shall be preceded by “—”.

2. Annexes 2A to 2J shall be completed in full separately for each insurance fund established and maintained under the Act. For any Annex where there are no entries, a “Nil” Annex shall be submitted. An Annex which is not applicable, need not be submitted.

3. “Gross premiums” refers to gross premiums received or receivable including portfolio premiums, after deduction of discounts and return premiums, which have been entered in the books of the registered insurer during the period. Commissions shall not be deducted from gross premiums.

4. “Outward reinsurance premiums” refers to premiums paid or payable on reinsurance ceded during the period and includes portfolio premiums in respect of ceded business.

5. “Investment revenue” refers to the following:

(a) interest, rental, and dividend income earned;

(b) realised gains (losses) from last reported value, write-backs (write-offs);

on the investment portfolio comprising equity securities, debt securities, land and buildings, loans, cash and deposits and other invested assets.

6. For the purposes of Annex 2B —

“registered insurer” has the same meaning as in section 1A of the Act; and

“unregistered reinsurer” means an insurer who is neither registered under section 8 of the Act nor authorised under section 8A of the Act to carry on reinsurance business.

7. “Rental income” includes imputed rental on owner-occupied premises used for the registered insurer’s business. Owner-occupied premises are premises owned by the registered insurer and which are used for the registered insurer’s business.

8. “Realised gains (losses) from last reported value” refers to the amount realised on sale of investments, land and buildings after deducting expenses incurred, less the relevant “Amount” reported in Form 1 as at the end of the last reporting period or the purchase price, if such purchase is made during the reporting period. Losses on sale of assets shall only be netted off within the same category of assets. It includes gains or losses due to exchange rate fluctuations and foreign currency translations.

9. “Write-backs (write-offs)” refers to any bad loan written off or written back.

10. “Unrealised changes from last reported value” refers to changes in market value, changes in estimated market value, changes in net realisable value or changes in provisions, where applicable, from the relevant “Amount” reported in Form 1 as at the end of the last reporting period, or from the purchase price, if such purchase is made during the reporting period.

11. “Investment expenses” includes expenses incurred in earning interest, dividend and rents, expenses incurred in the management and sale of the investments, property maintenance costs or expenses and property tax.

12. “Other income” includes gains due to exchange rate fluctuations and foreign currency translations.

13. “Gross claims settled” refers to gross claims paid, including portfolio losses, decrease (increase) in outstanding claims during the period, medical and legal expenses incurred directly in the settlement of claims paid in the period, net of recoveries from salvages and subrogation, where applicable.

14. “Outstanding claims” refers to such claims as described in paragraph 20 of the Instructions for completion of Form 1, Annexes 1A to 1N and Annexes 1 (i), 1 (ii) and 1 (iii).

15. “Disability” includes long-term care benefits.

16. “Surrenders” includes surrenders of bonus.

17. “Reinsurance recoveries” refers to reinsurance recoveries received or receivable from reinsurance in respect of claims paid including portfolio losses, during the period.

18. “Staff salaries and expenses” includes —

(a) salaries, bonuses and allowances;

(b) directors’ expenses;

(d) medical fees;

(e) training;

(f) skills development levy; and

(g) fringe benefits.

19. “Office rent” includes imputed rental expenses on owner-occupied premises used for the registered insurer’s business.

20. “Head office/parent company expenses” refers to charges from the parent or head office or regional office for services rendered to the operations in Singapore or subsidiary and associate companies respectively.

21. “Managing agent’s fees” refers to fees paid to those agents appointed by an insurer to both underwrite and manage a portfolio of business.

22. “Distribution expenses” includes all direct costs such as commissions and bonuses, all indirect costs of benefits and services provided by the registered insurer in the distribution of its products, agency allowances and profit commissions.

23. “Other cash payments” includes all payments made to the salesperson, including sales incentives and cash incentives, but does not include basic commissions and overrides, production and other bonuses.

24. “Cost of Benefits and Services” includes all non-monetary benefits given and services provided to the salesperson, for example, loans, sales convention, insurance cover, office accommodation and equipment and general stationery.

25. In respect of general business, “Increase (decrease) in net policy liabilities” refers to the sum of increase (decrease) in premium liabilities and increase (decrease) in claim liabilities.

26. “Provision for doubtful debts/bad debts written off on receivables” refers to increase (decrease) in provision for doubtful debt on receivables (for example, reinsurance recoveries and outstanding premiums and agents balances), bad debts written off receivables and excludes loans.

27. “Taxation expenses” refers to (increase) decrease in provision for tax.

28. “Other expenses” includes depreciation on fixed assets and losses due to exchange rate fluctuations and foreign currency translations.

29. “Allocation to surplus account” refers to the allocation of part of a participating fund to the surplus account made under section 17(6) (c) of the Act.

30. “Surplus account investment income” refers to the amount relating to the investment income earned on assets representing the balance in the surplus account as described in regulation 22 (4) (a) of the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004).

31. “Recovery of amount transferred out of surplus account if it has not been transferred back into the surplus account previously” refers to the recovery set out in regulation 22 (4) (b) of the Insurance (Valuation and Capital) Regulations 2004.

32. “Related corporation” means a related corporation of the registered insurer, where the reinsurance arrangement between the related corporation and the insurer is one which is exempted from the application of section 56A of the Act under regulation 12 (b) of the Insurance (Authorised Reinsurers) Regulations (Rg 13).

FORM 3

Notes to Form 3

The following shall be stated as Notes to this Form:

Note 1

Details of mortgage reducing term policies (Rows 3 and 20).

Note 2

Breakdown for “Others” (Rows 6, 15 and 23).

Note 3

Details of annuity contracts sold under the CPF Minimum Sum Scheme (Rows 8 and 25).

Instructions for completion of Form 3 and Notes

1. All amounts shown in this Form are to be rounded up to the nearest dollar. Negative amounts shall be preceded by “—”.

2. Notes shall be completed in full separately for each insurance fund established and maintained under the Act. For any Note where there are no entries, a “Nil” Note shall be submitted. A Note which is not applicable, need not be submitted.

3. This Form shall include all direct and reinsurance business relating to life policies issued to individuals.

4. An individual policy or a rider which provides more than one type of benefit shall be classified as though it is an individual policy or rider which provides only the predominant type of benefit. The total premium for this individual policy or rider may be shown under the predominant type of benefit.

5. Any rider which provides only one type of benefit shall be classified according to type, i.e. whole life, endowment, term, accident, health or others.

6. Items in this Form shall be shown after deduction of amounts in respect of reinsurance on the coinsurance method of liabilities of the registered insurer.

7. Items for premiums (except for single premium) and, in the case of annuities, items for amounts insured shall be the amounts payable per year and includes extra premiums in respect of higher risks experienced by the insured.

8. Top-ups to premiums in respect of single premium policies shall be reported in “New Business” under “Single Premium Business”.

9. Increases to regular premiums in respect of regular premium policies shall be reported in “New Business” under “Regular Premium Business”.

10. Decreases to regular premiums in respect of regular premium policies should be reported in “Terminations and transfers” under “Regular Premium Business”.

11. “New business” includes —

(a) any policy issued as a conversion of a term contract; and

(b) any policy sold and cancelled subsequently during the same reporting period, regardless of whether these cancellations were made within the free-look period.

12. “Number of policies” does not apply to riders.

13. Items under “Terminations and transfers” of this Form shall be shown exclusive of bonus additions.

14. “Surrender” refers to a policy which lapses after it has acquired a surrender value. This also includes policies whose non-forfeiture loan option has expired.

15. “Forfeiture” refers to a policy which carries a surrender value and lapses before it acquires the surrender value.

16. Lapses shall be reported net of reinstatements.

17. In the case of a policy which does not have a surrender value, for example, term, accident or health, the policy is considered an expiry if it lapses.

18. Direct life insurers shall classify the reduction of any portion of sums insured of mortgage related term policies under “Expiry”.

19. “Net transfers” refers to the increase or decrease by transfers of policies to or from Singapore registers.

20. “Others” under “Terminations and transfers” includes —

(a) term policies converted to whole life policies; and

(b) any policy cancelled within the free-look period.

FORM 4

Notes to Form 4

The following shall be stated as Notes to this Form:

Note 1

Breakdown for “Others” (Rows 4, 11 and 17).

Note 2

Number of dependants covered under group policies (Column 2, Row 18).

Instructions for completion of Form 4 and Notes

1. All amounts shown in this Form are to be rounded up to the nearest dollar. Negative amounts shall be preceded by “—”.

3. This Form shall include all direct and reinsurance business of the direct life insurer relating to group policies.

4. A group policy or rider which provides more than one type of benefit shall be classified as though it is a group policy or rider which provides only the predominant type of benefit. The total premium for this group policy or rider may be shown under the predominant type of benefit.

5. Any rider which provides only one type of benefit shall be classified according to type, i.e. term, accident, health or others.

6. Items in this Form shall be shown after deduction of amounts in respect of reinsurance on the coinsurance method of liabilities of the registered insurer.

7. Items for premiums (except for single premium) and, in the case of annuities, items for amounts insured shall be the amounts payable per year.

8. “Number of lives covered” refers to the number of lives insured under the group policy.

9. Extensions of coverage to additional lives and upward revisions of amount of insurance shall be classified under “Increases under existing policies”.

10. “Expiry” includes decreases under existing contracts with respect to employees leaving or retiring.

11. “Others” under “Terminations” includes decreases under existing contracts but excludes those decreases classified as “Expiry”.

FORM 5

Instructions for completion of Form 5

1. All amounts shown in this Form are to be rounded up to the nearest dollar. Negative amounts shall be preceded by “—”.

2. Items in this Form shall be shown after deduction of amounts in respect of retrocession on the coinsurance method of liabilities of the reinsurer.

3. Items for premiums (except for single premium) and, in the case of annuities, items for amounts insured shall be the amounts payable per year. Items for premiums shall include extra premiums in respect of higher risks experienced by the insured.

4. Reinsurance shall be classified according to the type of insurance i.e. life insurance, accident and health, etc., as long as the reinsurance treaty permits. However, where the business is bundled, it shall be classified according to the primary exposure. For example, a bundled reinsurance policy with health reinsurance as the primary exposure shall be classified as health reinsurance even if it includes some elements of term insurance.

5. “New Business” refers to any business that enters the books of the reinsurer for the first time. For example, “new business” for group business refers to new groups, but not new members of an existing group.

6. “Sum Insured” shall not be applicable to any reinsurance contract that does not have a definite amount of claims payment, for example, accident claims that depend on the nature of the injury and hospitalisation claims that depend on the nature of surgery and the length of hospitalisation. “Sum Insured” shall also not apply to “Financial Reinsurance”.

7. “Sum Insured” for “Disability Income” shall be the yearly benefit payable in case of a claim.

8. “Sum Insured” for a plan with an acceleration rider shall be the sum assured of the basic policy only.

9. “Single Premium” refers to the premium for covering periods in excess of one year. Hence, single premiums paid in respect of insurance contracts of less than one year, for example, travel insurance shall be classified as “Regular Premiums”.

10. “Life (Coinsurance)” refers to reinsurance business on life and critical illness basic/rider policies reinsured based on the ceding company’s office premiums, with the payment of a reinsurance commission and with the reinsurer being liable for its share of the reserves.

11. “Portfolio Cover” includes catastrophic loss, excess of loss, stop loss and other non-proportional portfolio reinsurance covers. “Sum Insured” in this case means the maximum possible liability for the year.

12. “Financial Reinsurance” refers to any contract of insurance which have terms for —

(a) the transfer of assets to the cedant or creation of a debt to the cedant (or both); and

(b) either an obligation for the cedant to return (with or without interest) some or all of such assets or a provision for the diminution of such debt, in each case, in specific circumstances,

and such other terms as may be specified in a notice in writing by the Authority.

FORM 6

Notes to Form 6

The following shall be stated as Notes to this Form:

Note 1

Items in this Form may be allocated according to a reasonable basis used by the registered insurer which is acceptable to its external auditor. The bases used shall be stated as a Note to this Form.

Note 2

Particulars on reinsurances of special risks other than reinsurances of liabilities under a marine and aviation policy.

Instructions for completion of Form 6 and Notes.

1. All amounts shown in this Form are to be rounded up to the nearest dollar. Negative amounts shall be preceded by “—”.

3. Reinsurers are not required to provide a breakdown of the miscellaneous line of business for the Singapore Insurance Fund but should report such items under “Others” in the “Miscellaneous” category.

4. For the purpose of risk classification, where separate figures for each class of business are not available, as in a combined policy covering several classes of risks, the premiums may be shown under the predominant class of risk.

5. For annual policies issued in respect of direct risks, a registered insurer shall recognise the premium income in full when the risks commence.

6. In respect of the Offshore Insurance Fund, “Casualty and Others” refers to insurance covering loss or liability arising from accident or mishap, including employer’s liability insurance, workmen’s compensation insurance, public liability insurance, motor vehicle insurance, plate glass insurance, burglary and theft insurance, fidelity guarantee, bond and credit insurance, personal accident and health insurance where written by non-life insurance companies, and other substantially similar kinds of insurance, but does not include certain types of loss which by law or custom are considered as falling exclusively within the scope of other types of insurance such as property insurance or marine insurance. Property insurance means insurance against risks of loss of, or damage to, material property, excluding certain types of loss which by law or custom are considered as falling exclusively within the scope o6f marine, aviation and transport insurance, motor vehicle insurance or miscellaneous accident insurance.

7. “Gross premiums” refers to gross premiums received or receivable including portfolio premiums, after deduction of discounts and return premiums, which have been entered into the books of the registered insurer during the period. Commissions shall not be deducted from gross premiums.

8. “Reinsurance business ceded” refers to premiums paid or payable on reinsurance ceded during the period. It includes portfolio premiums in respect of ceded business.

9. “Net premiums written” refers to the net amount of premiums after deduction of return premiums and payments in respect of reinsurance business ceded.

10. “Gross claims settled” refers to gross claims paid, including any portfolio losses, any increase or decrease, as the case may be, in outstanding claims during the period, and any medical or legal expenses incurred directly in settlement of claims paid in the period, net of recoveries from salvages and subrogation, where applicable.

11. “Outstanding claims” refers to such claims as described in paragraph 20 of the Instructions for completion of Form 1, Annexes 1A to 1N and Annexes 1 (i), 1 (ii) and 1 (iii).

12. “Recoveries from reinsurance business ceded” refers to any reinsurance recoveries received or receivable from reinsurance in respect of claims settled including portfolio losses, during the accounting period.

13. “Net claims incurred” refers to any net claims settled plus any increase or decrease, as the case may be, in claim liabilities during the period.

14. “Other distribution expenses” includes agency allowances and profit commissions.

FORM 7

Notes to Form 7

The following shall be stated as a Note to this Form:

Note 1

Items in this Form may be allocated according to a reasonable basis used by the registered insurer. The bases used shall be stated as a Note to this Form.

Instructions for completion of Form 7 and Note

1. All amounts shown in this Form are to be rounded up to the nearest dollar. Negative amounts shall be preceded by “—”.

2. Where a Note has no entries, a “Nil” Note shall be submitted.

3. Subject to paragraph 4, this Form shall apply to an insurer when writing one or more of the following policies or riders:

(a) any accident and health policy;

(b) any policy which provides accident and health benefits and other benefits, whereby if the accident and health benefits were to be sold as an accident and health policy, the gross premium of this accident and health policy would be higher than 10% of the total gross premium of the policy which provides such accident and health benefits;

(d) any rider which provides accident and health benefits and other benefits, whereby if the accident and health benefits were to be sold as an accident and health policy, the gross premium of this accident and health policy would be higher than 10% of the total gross premium of the rider which provides more than one type of benefit including accident and health benefits.

4. The policies and riders referred to in paragraph 3 do not include any policy or rider which provides accident and health benefits and other benefits, whereby the accident and health benefits accelerates the death benefits and an explicit premium cannot be allocated according to a reasonable basis.

5. Statistics relating to policies and riders as described in paragraph 3 which provide long-term accident and health benefits shall be entered under part named “Accident and Health Insurance (Long-term)”.

6. Statistics relating to policies and riders as described in paragraph 3 which provide short-term accident and health benefits shall be entered under part named “Accident and Health Insurance (Short-term)”.

7. For any direct insurer registered to carry on both life and general business, the insurer shall include in this Form, statistics on accident and health benefits relating to both businesses.

8. “Disability” includes long-term care benefits.

9. “Gross premiums” refers to gross premiums received or receivable. Commissions shall not be deducted from gross premiums. For policies and riders as described in paragraph 3 (b) and ( d), gross premiums shall be the estimated portions of total gross premiums for these policies and riders, which are attributable to accident and health benefits.

10. “Reinsurance ceded” refers to premiums paid or payable on reinsurance ceded during the period. For policies and riders as described in paragraph 3 (b) and (d), reinsurance ceded shall be the estimated portions of total reinsurance ceded for these policies and riders during the period which are attributable to accident and health benefits.

11. “Net premiums written” refers to the net amount of premiums after deduction of return premiums and payments in respect of reinsurance business ceded. For policies and riders as described in paragraph 3 (b) and (d), net premiums written shall be the estimated portions of total net premiums written for these policies and riders, which are attributable to accident and health benefits.

12. “Gross claims settled” refers to gross claims paid in respect of accident and health benefits, including experience refund paid, any increase or decrease, as the case may be, in outstanding claims during the period, and any medical or legal expenses incurred directly in settlement of claims paid in the period.

13. Outstanding claims refers to such claims as described in paragraph 20 of the Instructions for completion of Form 1, Annexes 1A to 1N and Annexes 1 (i), (ii) and (iii).

14. “Reinsurance recoveries” refers to any reinsurance recoveries received or receivable from reinsurance in respect of claims settled during the period.

15. “Net claims incurred” refers to any net claims settled plus the increase or decrease, as the case may be, in claim liabilities during the period.

16. For policies and riders as described in paragraph 3 (b) and (d), “Management expenses”, “Commissions”, “Reinsurance commissions”, “Net commissions incurred” and “Other distribution expenses” shall be the estimated portions of such items which are attributable to accident and health benefits.

17. “Other distribution expenses” includes agency allowances and profit commissions.

FORM 8

Notes to Form 8

The following shall be stated as a Note to this Form:

Note 1

Breakdown of “Other Reserves”.

Instructions for completion of Form 8 and Note

1. This Form shall be applicable to registered insurers incorporated in Singapore only.

2. All amounts shown in this Form are to be rounded up to the nearest dollar. Negative amounts shall be preceded by “—”.

3. Where a Note has no entries, a “Nil” Note shall be submitted.

4. “Inter-fund balances and intra-group balances (due from)” includes balances due from other insurance funds, shareholders fund, head office, overseas branches, and related corporations.

5. “Inter-fund balances and intra-group balances (due to)” includes balances due to other insurance funds, shareholders fund, head office, overseas branches, and related corporations.

6. “Business in Singapore” means both assets and liabilities of the Singapore Insurance Funds and Offshore Insurance Funds. The assets and liabilities shall be valued in accordance with Parts IV and V of the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004).

7. “Overseas (Branch) Operations” means the assets and liabilities of the operations of all branches of the insurer located outside Singapore. The valuation of the assets and liabilities for such operations shall be in accordance with Parts IV and V of the Insurance (Valuation and Capital) Regulations 2004.

8. “Shareholders Fund” shall exclude all assets, liabilities or surpluses already included in “Business in Singapore” and “Overseas (Branch) Operations”. In respect of the Shareholders Fund, “equity securities” includes equity investment in any subsidiary or related corporation. The valuation of the assets and liabilities in the “Shareholders Fund” shall be in accordance with Parts IV and V of the Insurance (Valuation and Capital) Regulations 2004 excluding regulation 8 (2) thereof.

9. “Unappropriated profits (losses)” means any unappropriated profits (losses) that is not already accounted for after deducting the surpluses of the assets over the liabilities of all insurance funds (other than a participating fund) established and maintained under the Act by the insurer, the balance in the surplus account of each participating fund and the surpluses of assets over the liabilities of the operations of all branches of the insurer located outside Singapore.

FORM 9

Instructions for completion of Form 9

1. This Form shall apply only to a registered insurer incorporated in Singapore.

2. All amounts shown in this Form are to be rounded up to the nearest dollar. Negative amounts shall be preceded by “—”.

3. “Business in Singapore” means the income and outgoings of the Singapore Insurance Funds and Offshore Insurance Funds. The income and the outgoings shall be valued in accordance with Parts IV and V of the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004).

4. “Overseas (Branch) Operations” means the income and outgoings of the operations of all branches of the insurer located outside Singapore. Completion of this Form for “Overseas (Branch) Operations” shall be in accordance with Parts IV and V of the Insurance (Valuation and Capital) Regulations 2004.

5. “Other income” includes gains due to exchange rate fluctuations and foreign currency translations.

6. “Other expenses” include depreciation on fixed assets and losses due to exchange rate fluctuations and foreign currency translations.

7. “Shareholders Fund” shall exclude all assets, liabilities or surpluses already included in “Business in Singapore” and “Overseas (Branch) Operations”. In respect of the Shareholders Fund, “equity securities” includes equity investment in any subsidiary or related corporation. Completion of this Form for “Shareholders Fund” shall be in accordance with Parts IV and V of the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004) excluding regulation 8 (2) thereof.

FORM 10

Notes to Form 10

The following shall be stated as a Note to this Form:

Note 1

Breakdown of “Others”.

Instructions for completion of Form 10 and Note

1. This Form is only applicable to a registered insurer incorporated outside Singapore.

2. All amounts shown in this form are to be rounded up to the nearest thousand dollar. Negative amounts shall be preceded by “—”.

3. Where there are no entries for the Note, a “Nil” Note shall be submitted.

4. This form shall be completed in accordance with generally accepted accounting principles adopted by the head office of the registered insurer.

5. This Form is a statement of the financial position of the head office of the registered insurer, in respect of its global business operations, as at end of its financial year.

6. “Net premiums written” refers to the net amount of premiums after deduction of return premiums and payments in respect of reinsurance ceded.

7. “Unappropriated profits (losses)” means any unappropriated profits (losses) that is not already accounted for after deducting the surpluses of the assets over the liabilities of all insurance funds (other than a participating fund) established and maintained under the Act by the insurer, the balance in the surplus account of each participating fund and the surpluses of assets over the liabilities of the operations of all branches of the insurer located outside Singapore.”;

(b)

by deleting Form 12 and substituting the following Form:

“FORM 12

Instructions for completion of Form 12 (b)

1. The column “Territory” shall reflect the country in which the cedant has booked the particular risk.

2. Where the gross premiums from a country amounts to more than 5% of total premiums for the Offshore Insurance Fund of a registered insurer and the country is not listed under Row 1 to 12, the insurer shall report the amount of gross premiums in respect of each line of business set out in the Form for that country under Row 13 to 48.

3. Where the gross premiums from any country amounts to less than 5% of total premiums for the Offshore Insurance Fund of the registered insurer, the insurer shall report the aggregate of the gross premiums in respect of each line of business set out in the Form for each of those countries as “Others” under Row 49.”;

(c)

by deleting Forms 14 and 15 and substituting the following Forms:

“FORM 14

Instructions for completion of Form 14

1. The policy liabilities of an insurance fund established and maintained under the Act shall be calculated in accordance with Part V of the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004).

2. Office premiums shall be shown according to the amounts per year of future payments.

3. “PAD” means any provision made for any adverse deviation from the expected experience

4. For the purposes of completing Form 14 (a) (i), “PAD” includes any non-guaranteed benefits.

5. “Negative reserves” shall be reported as an absolute amount.

6. In respect of “Present Value Statistics”, “Total” means —

Benefits+Expenses–Premiums+PAD+Negative Reserves.

FORM 15

Instructions for completion of Form 15

2. Office premiums shall be shown according to the amounts per year of future payments.

3. “PAD” means any provision made for any adverse deviation from the expected experience.

4. “Negative reserves” shall be reported as an absolute amount.

5. In respect of “Present Value Statistics”, “Total” means —

Benefits+Expenses-Premiums+PAD+Negative Reserves.”;

(d)

by deleting Form 18 and substituting the following Form:

“FORM 18

”;

(e)

by deleting Forms 21 to 24 and substituting the following Forms:

“FORM 21

Instructions for completion of Form 21

1. The values to be filled into this Form shall be calculated in accordance with the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004).

2. “PAD” means, in relation to a participating fund, any provision made for any adverse deviation from the expected experience as specified in regulation 20 (3) (b) of the Insurance (Valuation and Capital) Regulations 2004.

3. “Loans to, guarantees granted for and other unsecured amounts owed to the registered insurer” refers to any loan to, guarantee granted for or other unsecured amounts owed by, a related corporation or reflected in the books of the insurer to be due and owing from the head office of the insurer to the insurer, except where such loans, guarantees or other unsecured amounts arise from a contract of insurance.

FORM 22

Instructions for completion of Form 22

1. This Form shall apply to a registered insurer incorporated in Singapore in respect of assets and liabilities that do not belong to any insurance fund established and maintained under the Act (including assets and liabilities of all branches of the registered insurer located outside Singapore).

2. The values to be filled into this Form shall be calculated in accordance with the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004).

FORM 23

Instructions for completion of Form 23

1. The values to be filled into this Form shall be calculated in accordance with the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004).

2. “Unappropriated profits (losses)” means any unappropriated profits (losses) that is not already accounted for after deducting the surpluses of the assets over the liabilities of all insurance funds (other than a participating fund) established and maintained under the Act by the insurer, the balance in the surplus account of each participating fund and the surpluses of assets over the liabilities of the operations of all branches of the insurer located outside Singapore.

3. “Surplus from Overseas Branch Operations” means the surpluses of assets over the liabilities of the operations of all branches of the insurer located outside Singapore.

4. “Loans to, guarantees granted for and other unsecured amounts owed to the registered insurer” refers to any loan to, guarantee granted for or other unsecured amounts owed by, a related corporation or reflected in the books of the insurer to be due and owing from the head office of the insurer to the insurer, except where such loans, guarantees or other unsecured amounts arise from a contract of insurance.

FORM 24

Instruction for completion of Form 24

For the purposes of filling this Form in accordance with regulation 11 (3) —

(a) a direct general insurer shall provide certification in respect of Forms 1, 2, 6, 7 (b), 21, 22 and 23;

(b) a general reinsurer shall provide certification in respect of Forms 1, 2, 6, 21, 22 and 23;

(c) a direct life insurer shall provide certification in respect of Forms 1, 2, Form 3 in respect of all policies issued to individuals, Form 4 in respect of all policies issued to groups of individuals, Form 7, Form 18 in respect of participating Insurance Fund established and maintained under the Act, Forms 21, 22 and 23;

(d) a life reinsurer shall provide certification in respect of Forms 1, 2, 5, 21, 22 and 23; and

(e) a registered insurer incorporated in Singapore shall also provide certification in respect of Forms 8 and 9 in respect of the insurer’s global business operations.”.

Deletion of Third Schedule

9. The Third Schedule to the principal Regulations is deleted.

Made this 12th day of December 2005.

HENG SWEE KEAT

Managing Director,
Monetary Authority of Singapore.

[ID 05.1 V.31; AG/LEG/SL/142/2002/1 Vol. 9]

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