Insurance (Accounts and Statements) (Amendment No. 2) Regulations 2002

No. S 467

Insurance Act

(Chapter 142)

Insurance (Accounts and Statements) (Amendment No. 2) Regulations 2002

In exercise of the powers conferred by sections 35ZN, 36 and 64 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 No. 2) Regulations 2002 and shall come into operation on 1st October 2002.

Amendment of title

2. The Insurance (Accounts and Statements) Regulations (Rg 2) (referred to in these Regulations as the principal Regulations) are amended by deleting the words “SECTION 66” in the 2nd line and substituting the words “SECTION 64”.

Deletion of regulation 2

3. Regulation 2 of the principal Regulations is deleted.

Amendment of regulation 3

4. Regulation 3 (1) of the principal Regulations is amended by deleting the words “section 38 (1)” in the 1st line and substituting the words “section 36 (1)”.

New regulations 3A and 3B

5. The principal Regulations are amended by inserting, immediately after regulation 3, the following regulations:

“Returns to be lodged by registered insurance brokers

3A. A registered insurance broker, to comply with section 36(1) of the Act, shall, within 5 months from the end of each financial year or within such longer period as the Authority may allow, lodge the following statements of accounts and other statements:

(a)

a balance-sheet as at the end of that financial year in Form 12A in the Third Schedule;

(b)

insurance broking premium accounts in Form 12B in the Third Schedule for each type of insurance broking business in respect of which it is registered;

(c)

a profit and loss account in Form 12C in the Third Schedule; and

(d)

a statement in Form 12D in the Third Schedule giving particulars as to the type and placement of all of its business handled during that financial year, and —

(i)	in the case of a direct general insurance broker, a statement in Annex 1 to Form 12D in the Third Schedule giving particulars on the 5 insurers with whom the largest volume of its business were placed; and
(ii)	in the case of a general reinsurance broker or life reinsurance broker, a statement in Annex 2 to Form 12D in the Third Schedule giving further details on the sources and placement of its business.

Documents to be lodged by persons exempt from registration under section 35ZN (1) (a ) to (e) of Act

3B. Any person exempt from registration under section 35ZN(1)(a) to (e) of the Act (referred to in this regulation as an exempt insurance broker) and who is carrying on business as a direct general insurance broker or a reinsurance broker shall lodge with the Authority —

(a)

a notice of commencement of business in Form 12G in the Fourth Schedule, not later than 14 days after the commencement of its business as a direct general insurance broker, a life reinsurance broker or a general reinsurance broker;

(b)

a notice of change of particulars in Form 12H in the Fourth Schedule setting out any change in the particulars of the exempt insurance broker provided in the notice referred to in paragraph (a), not later than 14 days after the date of the change;

(c)

a notice of intention to cease its business as a direct general insurance broker, a life reinsurance broker or a general reinsurance broker in Form 12I in the Fourth Schedule, at least 14 days before the proposed date of cessation of all of its business as an insurance broker;

(d)

an audited statement of the insurance broking premium account in Form 12J in the Fourth Schedule in respect of its business as a direct general insurance broker, a life reinsurance broker or a general reinsurance broker, within 5 months from the end of each financial year or within such longer period as the Authority may allow; and

(e)

a statement in Form 12K in the Fourth Schedule within 5 months from the end of each financial year or within such longer period as the Authority may allow, giving particulars as to the type and placement of all its business as an insurance broker handled during that financial year, and —

(i)	in the case of an exempt insurance broker carrying on business as a direct general insurance broker, a statement in Annex 1 to Form 12K in the Fourth Schedule giving particulars on the 5 insurers with whom the largest volume of its business were placed; and
(ii)	in the case of an exempt insurance broker carrying on business as a life reinsurance broker or a general reinsurance broker, a statement in Annex 2 to Form 12K in the Fourth Schedule giving further details on the sources and placement of its business.”.

Amendment of regulation 4

6. Regulation 4 (2) of the principal Regulations is amended by deleting the words “Third Schedule” in the 2nd line and substituting the words “Fifth Schedule”.

Amendment of regulation 4A

7. Regulation 4A of the principal Regulations is amended —

(a)	by deleting the words “Fourth Schedule” in paragraph (2) and substituting the words “Sixth Schedule”; and
(b)	by deleting the words “Fifth Schedule” in the 4th line of paragraph (3) and substituting the words “Seventh Schedule”.

Amendment of regulation 5

8. Regulation 5 of the principal Regulations is amended —

(a)	by deleting the words “section 16(1)” in the 3rd line and substituting the words “section 17(1)”; and
(b)	by deleting the words “Third Schedule” in the penultimate line and substituting the words “Fifth Schedule”.

Amendment of regulation 6

9. Regulation 6 of the principal Regulations is amended

(a)	by deleting the words “Third Schedule” in the penultimate and last lines of paragraph (1)(a) and substituting the words “Fifth Schedule”;
(b)	by deleting the words “sections 38 and 39” in paragraph (3) and substituting the words “sections 36 and 37”;
(c)	by deleting the words “section 41(2)” in paragraph (3) and substituting the words “section 39(3)”; and
(d)	by deleting the words “section 41(1) and (2)” in paragraph (4) and substituting the words “section 39(1) and (3)”.

Amendment of regulation 8

10. Regulation 8 (3) of the principal Regulations is amended by deleting the words “Sixth Schedule” and substituting the words “Eighth Schedule”.

New regulation 8A

11. The principal Regulations are amended by inserting, immediately after regulation 8, the following regulation :

“Lodgment and signatures in documents lodged by registered insurance brokers and exempt insurance brokers

8A.—(1) A document to be lodged by a registered insurance broker under regulation 3A shall be lodged by sending to the Authority 2 copies of each document, of which at least one copy shall be signed by —

(a)	2 of its directors; and
(b)	its chief executive officer or such other person in Singapore who is authorised by its chief executive officer and approved by the Authority for that purpose.

(2) A document to be lodged by an exempt insurance broker under regulation 3B shall be lodged by sending to the Authority one copy of each document which shall be signed by its director, secretary, principal officer or chief executive officer.

(3) The persons signing any balance-sheet referred to in regulation 3A (a) shall sign a certificate in Form 12E in the Third Schedule and the certificate shall be lodged with the Authority by the registered insurance broker.

(4) A document to be lodged by an exempt insurance broker or a registered insurance broker under regulations 3A and 3B shall be in English, and shall be printed or, with the permission of the Authority, produced by such other means as the Authority may approve.”.

Amendment of regulation 9

12. Regulation 9 of the principal Regulations is amended —

(a)	by deleting the words “Seventh Schedule” in paragraph (1) and substituting the words “Ninth Schedule”; and
(b)	by deleting the words “section 41(1) and (2)” in paragraph (2) and substituting the words “section 39(1) and (3)”.

New regulations 9A and 9B

13. The principal Regulations are amended by inserting, immediately after regulation 9, the following regulations:

“Auditor’s report for insurance brokers

9A. A registered insurance broker shall lodge with the Authority within 5 months from the end of each financial year, or within such longer period as the Authority may allow, a report prepared and signed by an auditor in Form 12F in the Third Schedule stating the auditor’s opinion on the balance-sheet, insurance broking premium accounts, profit and loss account and statements referred to in regulation 3A (a) to (d).

Financial Year

9B. The financial year for a registered insurance broker in its first year of registration shall be not less than 6 months and not more than 18 months from the date of its registration.”.

Amendment of First Schedule

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

(a)

by deleting the words “DIRECT GENERAL INSURER” in Schedule 1E of Form 1 in Part I and substituting the words “CAPTIVE INSURER”;

(b)

by inserting, immediately after Schedule 1F of Form 1 in Part I, the following Schedules:

(c)

by deleting the heading Instructions for completion of Form 1 and Schedules 1A to 1F in Part I (page 17) and substituting the following heading:

“Instructions for completion of Form 1 and Schedules 1A to 1G (B)”;

(d)

by deleting “1F” in paragraph 16 of the “Instructions for completion of Form 1 and Schedules 1A to 1G (B)” and substituting “1G (B)”;

(e)

by deleting the words “direct insurers and” in paragraph 18 of the “Instructions for completion of Form 1 and Schedules 1A to 1G (B)”; and

(e)

by inserting, immediately after paragraph 19 of the “Instructions for completion of Form 1 and Schedules 1A to 1G (B)”, the following paragraphs;

“20. Schedule 1G (A) is applicable to all direct insurers registered in respect of general business in the Singapore Insurance Fund. "Direct Business — Others" includes business from direct clients, direct marketing and other distribution channels.

21. Schedule 1G (B) is applicable to all direct insurers registered in respect of general business in the Offshore Insurance Fund. “Direct Business — Others” includes business from direct clients, direct marketing and other distribution channels.”.

New Third and Fourth Schedules and renumbering of Third to Seventh Schedules

15. The principal Regulations are amended —

(a)

by inserting, immediately after the Second Schedule, the following Schedules:

“THIRD SCHEDULE

Regulation 3A(a)

FORM 12A

Notes to Form 12A

The following shall be stated as notes to this Form:

Note 1

Loans to and amounts due from employees of, or persons engaged by, the registered insurance broker to provide technical advice to its clients (please provide details on the date of loan and amount of loan granted to each person).

Note 2

Description in detail of the following items:

(a) other assets (Asset Row 6);

(b) reserves (Liability Row 3);

(d) others (Liability Row 7); and

(e) contingent liabilities (Liability Row 9).

(state also the amounts applicable to each of the above items)

Note 3

Any changes in accounting policies and quantification of its effects.

Instructions for completion of Form 12A

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

2. Assets do not include any amount on account of goodwill and other intangible assets.

3. “Cash and deposits” refers to cash in hand and bank deposits which are not designated or evidenced as “insurance broking premium accounts”.

4. “Insurance broking premium accounts” refers to the aggregate of the respective insurance broking premium accounts maintained in accordance with section 35ZD of the Act and any other insurance broking premium account required to be maintained by the insurance broker under any other written law.

5. “Amounts owing from insurers and insureds” refers to premiums, claims moneys, brokerage and fees earned from the provision of consultancy and risk management services due from insurers and insureds.

6. “Amounts owing to insurers and insureds” refers to premiums and claims moneys owing to insurers and insureds.

7. “Fixed assets” includes land and buildings, motor vehicles and office equipment.

FORM 12B

Notes to Form 12B

The following shall be stated as notes to this Form:

Note 1

Name of bank(s) and account number(s) of the Insurance Broking Premium Account.

Note 2

Details of deposits with banks (ie. Name of bank, account number and amount).

Note 3

Breakdown for the following items:

(a) others (Row 7); and

(b) other approved withdrawals (Row 13).

Instructions for completion of Form 12B

1. A registered insurance broker shall complete separate forms for each type of registration.

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

3. “Deposits” refers to deposits placed with any bank licensed under the Banking Act (Cap.19).

4. “Proceeds from deposits” refers to the principal sum and interest received from the maturity or withdrawal of deposits.

5. “Other approved withdrawals” refers to other moneys which have been approved for withdrawal by the Authority.

FORM 12C

Notes to Form 12C

The following shall be stated as notes to this Form:

Note 1

Breakdown for the following items:

(a) other revenue (Row 2);

(b) other expenses (Row 4); and

Instructions for completion of Form 12C

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

2. “Brokerage” refers to income, profit commissions and fees earned in relation to the insurance broking business carried out by the registered insurance broker.

3. “Other revenue” refers to income from financial advisory activities and fees earned from provision of consultancy and risk management services.

4. “Staff salaries and related expenses” includes —

(a) Salaries, bonuses and allowances;

(b) Director’s fees;

(d) Medical fees;

(e) Training; and

(f) Skills development levy.

FORM 12D

Notes to Form 12D

Note 1

“Domestic Risks” is a risk which would have been classified as a “Singapore policy” as defined in regulation 2(1) of the First Schedule to the Insurance Act (Cap. 142) had the risk been underwritten by a registered insurer.

Note 2

“Offshore Risks” refers to any risk other than a Domestic Risk.

Note 3

“Premiums” refers to premiums received or receivable during the financial year. Brokerage shall not be deducted from premiums.

Note 4

“Registered insurers in Singapore” excludes Protection and Indemnity Clubs in Singapore.

Instruction for completion of Form 12D

A registered insurance broker shall complete separate forms for each type of registration.

FORM 12D

Instructions for completion of Annex 2 to Form 12D

A registered insurance broker shall complete separate forms for each type of registration.

PART A : SOURCE OF BUSINESS

1 The classification of territory shall be by country of domicile of reinsureds.

2 For those countries which are not listed under Row 1 to 9 and the reinsurance premiums sourced from each country amounts to —

(a) 5% or more of total premiums for Offshore Risks, please list down the countries under Row 10 to 16 and specify the amount of premiums sourced from each country; or

(b) less than 5% of total premiums for Offshore Risks, please provide the aggregate premiums sourced from all these countries under Row 17.

PART B : PLACEMENT OF BUSINESS WITH INSURERS OUTSIDE SINGAPORE (EXCLUDING FOREIGN INSURERS UNDER THE FOREIGN INSURERS SCHEME AND PROTECTION AND INDEMNITY CLUBS)

1 For those countries which are not listed under Row 1 to 15 and the reinsurance premiums placed with each country amounts to —

(a) 5% or more of total premiums for Domestic Risks or Offshore Risks, as the case may be, please list down the countries under Row 16 to 23 and specify the amount of premiums for Domestic Risks or Offshore Risks, as the case may be, placed with each country; or

(b) less than 5% of total premiums for Domestic Risks or Offshore Risks, as the case may be, please provide the aggregate premiums for Domestic Risks or Offshore Risks, as the case may be, placed with all these countries under Row 24.

FORM 12E

FOURTH SCHEDULE

Regulation 3B(a)

FORM 12G

Notes to Form 12J

The following shall be stated as notes to this Form:

Note 1

Name of bank(s) and account number(s) of the Insurance Broking Premium Account.

Note 2

Details of deposits with banks (ie. name of bank, account number and amount).

Note 3

Breakdown for the following items:

(a) Others (Row 7); and

(b) Other approved withdrawals (Row 13).

Instructions for completion of Form 12J

1. An exempt insurance broker shall complete separate forms for each type of insurance broking business handled.

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

3. “Deposits” refers to deposits placed with any bank licensed under the Banking Act (Cap. 19).

4. “Proceeds from deposits” refers to the principal sum and interest received from the maturity or withdrawal of deposits.

5. “Other approved withdrawals” refers to other moneys which have been approved for withdrawal by the Authority.

FORM 12K

Notes to Form 12K

Note 1

Note 2

“Offshore Risks” refers to any risk other than a Domestic Risk.

Note 3

“Premiums” refers to premiums received or receivable during the financial year. Brokerage shall not be deducted from premiums.

Note 4

“Registered insurers in Singapore” excludes Protection and Indemnity Clubs in Singapore.

Instruction for completion of Form 12K

An exempt insurance broker shall complete separate forms for each type of insurance broking business handled.

Instructions for completion of Annex 2 to Form 12K

An exempt insurance broker shall complete separate forms for each type of insurance broking business handled.

PART A: SOURCE OF BUSINESS

1 The classification of territory shall be by country of domicile of reinsureds.

2 For those countries which are not listed under Row 1 to 9 and the reinsurance premiums sourced from each country amounts to —

(a) 5% or more of total premiums for Offshore Risks, please list down the countries under Row 10 to 16 and specify the amount of premiums sourced from each country; or

(b) less than 5% of total premiums for Offshore Risks, please provide the aggregate premiums sourced from all these countries under Row 17.

PART B: PLACEMENT OF BUSINESS WITH INSURERS OUTSIDE SINGAPORE (EXCLUDING FOREIGN INSURERS UNDER THE FOREIGN INSURERS SCHEME AND PROTECTION AND INDEMNITY CLUBS)

1 For those countries which are not listed under Row 1 to 15 and the reinsurance premiums placed with each country amounts to —

(b)

by renumbering the existing Third, Fourth, Fifth, Sixth and Seventh Schedules as Fifth, Sixth, Seventh, Eighth and Ninth Schedules, respectively.

Made this 11th day of September 2002.

KOH YONG GUAN

Managing Director,
Monetary Authority of Singapore.

[ID 05.1 V.29; AG/LEG/SL/142/2002/1 Vol. 1]

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