Insurance (Accounts and Statements) (Amendment No. 3) Regulations 2002

No. S 588

Insurance Act

(Chapter 142)

Insurance (Accounts and Statements) (Amendment No. 3) Regulations 2002

In exercise of the powers conferred by section 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. 3) Regulations 2002 and shall come into operation on 21st November 2002.

Amendment of regulation 3

2. Regulation 3(2) of the Insurance (Accounts and Statements) Regulations (Rg 2) (referred to in these Regulations as the principal Regulations) is amended —

(a)

by inserting, immediately after the words “life business” in the 1st line of sub-paragraph (b), the words “, other than life reinsurance business”; and

(b)

by deleting the full-stop at the end of sub-paragraph (b) and substituting a semi-colon, and by inserting immediately thereafter the following sub-paragraph:

“(c)

in respect of life reinsurance business —

(i)	a fund balance-sheet, which shall be in Form 1, as at the end of that accounting period;
(ii)	a fund revenue account which shall be in Form 2;
(iii)	a statement, which shall be in Form 3A, giving as regards policies belonging to that class of business particulars on the issue of new policies, the termination and transfers of policies to or from the register of Singapore policies or offshore policies, as the case may be, during that accounting period and the business in force as at the end of that accounting period; and
(iv)	a statement, which shall be in Form 5, giving particulars on premiums and commissions incurred during that accounting period.”.

Amendment of regulation 4

3. Regulation 4 (2) of the principal Regulations is amended by deleting sub-paragraph (a) and substituting the following sub-paragraph:

“(a)

a summary and valuation of the policies as at the date of the investigation, which shall —

(i)	in respect of life business, other than life reinsurance business, be in Form 13; and
(ii)	in respect of life reinsurance business, be in Form 13A; and”.

Amendment of First Schedule

4. The First Schedule to the principal Regulations is amended by inserting, immediately after Form 3, following Form:

Instructions for completion of Form 3A:

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

2. Items in this return 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 premiums) 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 type i.e. life insurance, accident, 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 element of term insurance.

5. “New Business” refers to 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. “Amount Insured” shall not be applicable to reinsurance contracts that do not have a definite amount of claims payment, e.g. accident claims that depend on the nature of the injury and hospitalization claims that depend on the nature of surgery and the length of hospitalization. “Amount Insured” shall also not apply to “Financial Reinsurance”.

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

8. “Amount Insured” for plans with acceleration riders shall be the sum assured of the basic policy only.

9. “Single Premium” shall refer 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 e.g. travel insurance shall be classified as “Other Premiums”.

10. “Life (Coinsurance)” refers to reinsurance business on life and dread disease 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” shall include Catastrophic, Excess of Loss, Stop Loss and other non-proportional portfolio reinsurance covers. “Amount Insured” in this case shall be the maximum possible liability for the year.

12. “Financial Reinsurance” refers to reinsurance business as defined in the MAS Notices.

Amendment of Fifth Schedule

5. The Fifth Schedule to the principal Regulations is amended —

(a)

by deleting the words “(FORMS 13, 14 AND 15)” in the heading and substituting the words “(FORMS 13, 13A, 14 AND 15)”; and

(b)

by inserting, immediately after Form 13, the following Form:

Made this 20th day of November 2002.

KOH YONG GUAN

Managing Director,
Monetary Authority of
Singapore.

[ID 05.1Vol 30; AG/LEG/SL/142/2002/1 Vol. 2]

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