PART II
APPROVAL OF INSURANCE BROKERS
Exemption from section 35W of Act
3.  Any designated entity carrying on the business of providing MAT insurance, general reinsurance or life reinsurance, as an insurance broker, to persons in Singapore, from outside of Singapore, shall be exempt from complying with section 35W of the Act (read with section 56A of the Act) if, and only if, the designated entity —
(a)is an approved insurance broker for such business;
(b)does not carry on insurance business in Singapore, other than the collection or receipt of premiums in relation to his business as an approved insurance broker; and
(c)does not have any commercial or physical presence in Singapore for the purpose of carrying on his business as an approved insurance broker.
Approval of insurance brokers
4.—(1)  A designated entity may apply in writing to the Authority for approval for the purposes of these Regulations in such form and manner as the Authority may specify.
(2)  The designated entity shall furnish such information and provide such supporting documentary evidence as the Authority may require.
(3)  Upon receiving an application under paragraph (1), the Authority shall consider the application and may, subject to regulation 5 —
(a)approve the applicant with or without conditions; or
(b)refuse to approve the applicant.
(4)  The Authority may approve the applicant as an approved MAT insurance broker, an approved general reinsurance broker, an approved life reinsurance broker or a combination of any of these.
Approval requirements
5.—(1)  The Authority shall not approve any applicant under regulation 4 unless the applicant has in force a professional indemnity insurance policy of at least $1 million in respect of each type of insurance broking business for which it is applying for approval.
(2)  In paragraph (1), “professional indemnity insurance policy” means a contract of insurance with an insurer under which a person is indemnified in respect of the liabilities arising out of or in the course of his business as an approved insurance broker.
Conditions of approval
6.—(1)  The Authority may at any time add to, vary or revoke any existing condition of approval of an approved insurance broker or impose any new condition thereto.
(2)  Any approved insurance broker who contravenes any of the conditions imposed by the Authority under paragraph (1) or regulation 4(3) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part thereof during which the offence continues after conviction.
Annual fees for approved insurance brokers
7.—(1)  An approved insurance broker, if it is approved as a MAT insurance broker, general reinsurance broker or life reinsurance broker, shall pay to the Authority an annual fee of $3,000 for each type of approval.
(2)  The annual fee payable by an approved insurance broker shall be paid to the Authority on or before 1st January of every year.
(3)  The Authority may exempt wholly or in part any approved insurance broker from the payment of annual fees specified in paragraph (1).
Withdrawal of approval
8.—(1)  The Authority may, at the request of the approved insurance broker or on any of the grounds specified under paragraph (2), withdraw the approval of any insurance broker.
(2)  The grounds referred to in paragraph (1) are —
(a)that the insurance broker has not commenced business of providing MAT insurance, general reinsurance or life reinsurance, as an insurance broker, to persons in Singapore within 6 months after being approved;
(b)that the insurance broker has ceased to carry on the business for which it is approved;
(c)that, it appears to the Authority, the insurance broker has failed to satisfy any obligation to which it is subject by virtue of the Act or these Regulations;
(d)that there exists a ground under regulation 5 on which the Authority would be prohibited from approving the insurance broker;
(e)that the insurance broker —
(i)proposes to make, or has made, any composition or arrangement with its creditors;
(ii)has gone into liquidation; or
(iii)has been wound up or otherwise dissolved;
(f)that a receiver, receiver and manager, judicial manager, or such other person having the powers and duties of a receiver, receiver and manager or judicial manager, has been appointed, whether in Singapore or elsewhere, in relation to, or in respect of any property of, the insurance broker or any of its shareholders having control of the insurance broker;
(g)that there is a change of the person having control of the insurance broker and —
(i)the new person having control of the insurance broker is not a fit and proper person; or
(ii)the Authority is not satisfied as to the financial standing of the insurance broker after the change;
(h)that the insurance broker is carrying on its business in a manner likely to be detrimental to the interests of the policy owners for whom it is acting as an agent;
(i)that the insurance broker is unable to meet its obligations, whether in Singapore or elsewhere;
(j)that the insurance broker has contravened any provision of the Act or these Regulations, or any condition imposed or any direction given by the Authority under the Act or these Regulations;
(k)that any of the officers of the insurance broker holding a managerial or executive position has been convicted of any offence under the Act or these Regulations;
(l)that the insurance broker has furnished false, misleading or inaccurate information, or has concealed or failed to disclose material facts, in its application for approval; and
(m)that it is in the public interest to withdraw the approval.
(3)  Before withdrawing the approval of an insurance broker under this regulation otherwise than at its request, the Authority shall —
(a)give the insurance broker notice in writing of its intention to do so; and
(b)in the notice referred to in sub-paragraph (a), call upon the insurance broker to show cause within such time as may be specified in the notice as to why its approval should not be withdrawn.
(4)  If the insurance broker referred to in paragraph (3) —
(a)fails to show cause within the time specified in the notice under paragraph (3) or within such extended period of time as the Authority may allow; or
(b)fails to show sufficient cause,
the Authority shall give notice in writing to the insurance broker of the date on which the withdrawal of approval is to take effect.
(5)  Any insurance broker who is aggrieved by a decision of the Authority under paragraph (1) to withdraw its approval otherwise than at its request may, within 30 days of the decision of the Authority, appeal to the Minister in writing in accordance with Part IIIB of the Act.
(6)  Notwithstanding the withdrawal of the approval of an insurance broker under this regulation, so long as the insurance broker remains under any liability to an insurer, insured or intending insured, the insurance broker shall take such action as it considers necessary or as may be required by the Authority to ensure that reasonable provision has been or will be made for that liability.
(7)  If the approval of an insurance broker has been withdrawn or has expired, regulations 13 and 18 shall, unless the Authority otherwise directs, continue to apply in relation to the person in respect of matters that occurred before the withdrawal or expiration as if the approval had not been withdrawn or had not expired, as the case may be.