PART III
CONDUCT OF APPROVED
INSURANCE BROKING BUSINESS
Disclosure by approved insurance broker
9.  No approved insurance broker shall invite any person in Singapore to make an offer or a proposal to enter into a contract of insurance without disclosing to the person all material information, including —
(a)its business name, business address, email address and telephone number;
(b)its approved status;
(c)that it is providing the insurance broking service from outside of Singapore and that it has no commercial or physical presence in Singapore;
(d)that it is subject to limited oversight by the Authority and is required to comply with approval requirements, and not registration requirements, under the Act;
(e)the type of insurance broking activity that it is approved to provide under these Regulations;
(f)the name of the insurer;
(g)his relationship with the insurer; and
(h)the premium charged by the insurer.
Representation by approved insurance broker
10.—(1)  No approved insurance broker shall, with intent to deceive, make a false or misleading statement as to —
(a)any amount that would be payable in respect of a proposed contract of insurance; or
(b)the effect of any provision of a contract of insurance or a proposed contract of insurance.
(2)  A reference in paragraph (1) to making a misleading statement includes a reference to omitting to disclose any matter that is material to a statement.
(3)  No approved insurance broker shall, with intent to deceive, in relation to a proposed contract of insurance —
(a)write on a form, being a form that is given or sent to an insurer, any matter that is material to the contract and is false or misleading in a material particular;
(b)omit to disclose to the insurer any matter that is material to the proposed contract;
(c)advise or induce the intending insured to write on a form, being a form that is given or sent to an insurer, any matter that is false or misleading in a material particular; or
(d)advise or induce the intending insured to omit to disclose to the insurer any matter that is material to the proposed contract.
(4)   No approved insurance broker shall, with intent to deceive, in relation to a claim under a contract of insurance —
(a)fill up, in whole or in part, a form, being a form that is given or sent to an insurer, in such a way that the form is false or misleading in a material particular;
(b)omit to disclose to the insurer any matter that is material to the claim;
(c)induce the insured to fill up, in whole or in part, a form, being a form that is given or sent to the insurer, in such a way that the form is false or misleading in a material particular; or
(d)advise or induce the insured to omit to disclose to the insurer any matter that is material to the claim.
(5)  Any approved insurance broker who contravenes paragraph (1), (3) or (4) shall, notwithstanding that a contract of insurance does not come into being, be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.
Control of written communication used by approved insurance broker
11.—(1)  An approved insurance broker shall, if required by the Authority by notice in writing, submit to the Authority any written communication which is for the time being in use by the approved insurance broker for describing the terms or conditions of, or the benefits to be or likely to be derived from, policies.
(2)  Where the whole or part of any written communication referred to in paragraph (1) is not in English, the approved insurance broker shall submit with it a translation in English.
(3)  A requirement made under paragraph (1) shall, unless it is otherwise provided, apply to all such written communication coming into use after the making of the requirement and before the Authority notifies the approved insurance broker that the requirement is withdrawn.
(4)  If it appears to the Authority, after affording the approved insurance broker an opportunity to make representations orally or in writing, that any such written communication —
(a)contravenes any provision of these Regulations; or
(b)is in any respect likely to mislead,
the Authority may, by notice in writing, direct the approved insurance broker to discontinue the use of the written communication in Singapore either immediately or from such date as may be specified in the notice.
(5)  For each occasion on which any approved insurance broker contravenes a requirement under paragraph (1) or uses any written communication in contravention of paragraph (4), the approved insurance broker shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.
(6)  This regulation shall only apply to written communication which is made to or directed at persons in Singapore.
(7)  In this regulation, “written communication” includes any brochure, leaflet, circular or advertising matter, whether in electronic, print or other form.
Obligation to furnish information to Authority
12.—(1)  An approved insurance broker shall, if notified in writing by the Authority, furnish the Authority with information about any matter related to its business carried on as an approved insurance broker.
(2)  Any approved insurance broker who contravenes paragraph (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.
Duty to maintain net asset value
13.  Every approved insurance broker shall maintain a net asset value whereby the amount of its assets shall not be less than the amount of its liabilities.
Insurance broking premium accounts
14.—(1)  Subject to paragraph (2), every approved insurance broker who receives or collects any premium in Singapore shall, for the purposes of this regulation, establish and maintain a separate account with a bank licensed under the Banking Act (Cap. 19).
(2)  Where the approved insurance broker is approved under regulation 4 to carry on business as more than one type of insurance broker, it shall establish and maintain separate accounts with a bank licensed under the Banking Act (Cap. 19) in respect of the carrying on of business of each type of insurance broker for which it is approved.
(3)  An approved insurance broker shall pay into a bank account maintained by it under paragraph (1) all moneys received by it —
(a)from or on behalf of an insured or intending insured for or on account of an insurer in connection with a contract of insurance or proposed contract of insurance; or
(b)from or on behalf of an insurer for or on account of an insured or intending insured.
(4)  No approved insurance broker shall withdraw moneys from a bank account maintained by it under paragraph (1) without the prior written consent of the Authority.
(5)  Paragraph (4) shall not apply to any withdrawal of moneys from a bank account maintained by the approved insurance broker under paragraph (1) for —
(a)any payment to or for a person entitled to receive payment of the moneys, including itself in so far as it is entitled to receive payment for itself;
(b)any payment to or for an insurer in respect of amounts due to the insurer under or in relation to a contract of insurance;
(c)any investment by way of deposits placed with any bank licensed under the Banking Act; or
(d)any repayment of moneys that were paid into the account in error.
(6)  An approved insurance broker shall pay moneys received from the realisation of any investment made under paragraph (5)(c) into a bank account maintained by it under paragraph (1).
(7)  If, upon the realisation of any investment made under paragraph (5)(c), the amount of moneys received in respect of the realisation is less than the amount of moneys invested, the approved insurance broker shall pay into the account from which the moneys were withdrawn for investment an amount equal to the difference between the amount invested and the amount realised.
(8)  An approved insurance broker shall pay into, or retain in, a bank account maintained by it under this regulation, any interest or other income that is received by it under the bank account or from any deposit made under paragraph (5)(c).
(9)  An approved insurance broker shall designate any bank account maintained by it under paragraph (1), and any deposit placed with a bank under paragraph (5)(c) as an insurance broking premium account, with or without other words of description.
(10)  No person shall claim a lien on the moneys in any account established by any approved insurance broker under paragraph (1) or (2) unless the moneys in the account are for fees due and owing to the approved insurance broker.
(11)  No person shall create any charge or mortgage on the moneys in any account established by any approved insurance broker under paragraph (1) or (2).
(12)  In this regulation —
“contract of insurance” includes a contract of insurance that is subsequently cancelled;
“moneys” means any sum received by an approved insurance broker as agent for an insured or intending insured, including policy moneys, premiums and claims payments.
(13)  Any person who contravenes this regulation shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.
Negotiation and placement of risk
15.  No approved MAT insurance broker shall, in the course of its business as such, negotiate or place any contract of insurance with an insurer (directly or indirectly) except with an approved MAT insurer or registered insurer acting in the course of its business as such.
Arrangements affecting control of approved insurance brokers
16.—(1)  Every approved insurance broker shall immediately inform the Authority of any change in the control of the insurance broker.
(2)  For the purposes of this regulation, section 12A(7) of the Act shall apply as if every reference to authorised reinsurer were a reference to approved insurance broker.
Holding out as approved insurance broker
17.—(1)  No person shall hold himself out to be an approved insurance broker in respect of any type of insurance broking business unless he is approved under these Regulations in respect of that type of insurance broking business.
(2)  Any person who contravenes paragraph (1) 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 of $2,500 for every day or part thereof during which the offence continues after conviction.
Returns and audit
18.—(1)  An approved insurance broker shall prepare and lodge with the Authority, within 6 months from the end of each financial year or within such longer period as the Authority may allow, a statement —
(a)in the form set out in the Second Schedule giving particulars as to the placement of business handled during that financial year for each type of insurance broking business in respect of which it is approved; and
(b)based on the annual audited financial statements of the approved insurance broker of that financial year.
(2)  The statement to be lodged by an approved insurance broker under paragraph (1) shall be —
(a)signed by —
(i)2 of its directors; and
(ii)its chief executive officer; and
(b)accompanied by a copy of the annual audited report on which the statement is based.
(3)  Where any audited report referred to in paragraph (2)(b) is in a language other than English, the copy required by that paragraph shall be in English and shall be certified to be a true translation of the original by the translator.
(4)  In this regulation, “chief executive officer” means any person, by whatever name described, who is —
(a)in the direct employment of, or acting for, or by arrangement with an approved insurance broker; and
(b)directly responsible for the conduct of any type of business of the approved insurance broker.