| SECOND SCHEDULE |
| Regulation 2(1) |
| Total Risk Requirement |
| Total risk requirement |
1. “Total risk requirement” of an insurance fund established and maintained under the Act or, in the case of a registered insurer incorporated in Singapore, arising from assets and liabilities that do not belong to any insurance fund established and maintained under the Act (including assets and liabilities of any of the insurer’s branches located outside Singapore) means the sum of the following:
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| 2. The “total risk requirement” of a registered insurer shall be the aggregate of the total risk requirements of every insurance fund established or maintained by the insurer under the Act and, where the insurer is a registered insurer incorporated in Singapore, the total risk requirement arising from assets and liabilities that do not belong to any insurance fund established and maintained under the Act (including assets and liabilities of any of the insurer’s branches located outside Singapore). |
3. In the calculation of the total risk requirement, an insurer shall not include the following items:
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| 4. In the case of a registered insurer incorporated in Singapore, in determining the total risk requirement for assets and liabilities that do not belong to any insurance fund established and maintained under the Act, the value of such assets and liabilities (including that arising from insurance business) shall be determined in accordance with Parts IV and V of these Regulations. |
| 5. Any asset or part of an asset that causes an insurer’s C3 requirement to increase shall be excluded from the calculation of C2 requirement. |
| 6. The contribution to the total risk requirement of any asset excluded from the financial resources of the registered insurer shall be zero. |