Insurance (General Provisions) Regulations

Insurance Act

(Chapter 142, Sections 11, 39, 42(4), 48(1), 52(1), 56A(3), 60(1) and (3), 61 and 64)

Rg 17

G.N. No. S 684/2003

REVISED EDITION 2004

(31st December 2004)

[1st January 2004]

Citation

1. These Regulations may be cited as the Insurance (General Provisions) Regulations.

Definitions

2. In these Regulations, unless the context otherwise requires —

“Offshore Insurance Fund” means any insurance fund established and maintained in respect of offshore policies under the Act;

“Singapore Insurance Fund” means any insurance fund established and maintained in respect of Singapore policies under the Act.

Annual fees for insurers

3.—(1) Except as provided in paragraph (4), a licensed insurer (other than a captive insurer, marine mutual insurer or Special Purpose Reinsurance Vehicle), shall pay to the Authority the following annual fees:

(a)

for carrying on life business, other than life reinsurance business —

(i)	in the case of an insurer with total assets not exceeding $2 billion, a fee of $87,000; and [S 803/2014 wef 01/01/2015]
(ii)	in the case of an insurer with total assets exceeding $2 billion, a fee of $140,000; [S 803/2014 wef 01/01/2015]

(b)

for carrying on general business, other than general reinsurance business —

(i)	in the case of an insurer with gross premiums not exceeding $100 million, a fee of $70,000; and [S 803/2014 wef 01/01/2015]
(ii)	in the case of an insurer with gross premiums exceeding $100 million, a fee of $95,000; [S 803/2014 wef 01/01/2015]

(c)

for carrying on life reinsurance business —

(i)	in the case of a reinsurer with gross premiums not exceeding $100 million, a fee of $35,000; and [S 803/2014 wef 01/01/2015]
(ii)	in the case of a reinsurer with gross premiums exceeding $100 million, a fee of $45,000; [S 803/2014 wef 01/01/2015]

(d)

for carrying on general reinsurance business —

(i)	in the case of a reinsurer with gross premiums not exceeding $100 million, a fee of $35,000; and [S 803/2014 wef 01/01/2015]
(ii)	in the case of a reinsurer with gross premiums exceeding $100 million, a fee of $45,000; and [S 803/2014 wef 01/01/2015]

(e)

for carrying on any combination of the insurance business referred to in sub-paragraphs (a) to (d), the aggregate of the respective fees.

[S 618/2008 wef 02/12/2008]

[S 237/2013 wef 18/04/2013]

(2) A captive insurer shall pay to the Authority an annual fee of $6,000.

[S 803/2014 wef 01/01/2015]

(3) A marine mutual insurer shall pay to the Authority an annual fee of $17,000.

[S 748/2007 wef 01/01/2008]

[S 803/2014 wef 01/01/2015]

(3A) A Special Purpose Reinsurance Vehicle shall pay to the Authority an annual fee of $5,000.

[S 618/2008 wef 02/12/2008]

(4) A licensed insurer (other than a captive insurer, marine mutual insurer or Special Purpose Reinsurance Vehicle) which —

(a)	has not previously carried on the relevant type of insurance business in Singapore referred to in paragraph (1); or
(b)	has carried on the relevant type of insurance business referred to in paragraph (1) for less than one accounting period,

and has not lodged the relevant statements relating to total assets or gross premiums under section 36 of the Act shall pay to the Authority the following fees:

(i)	for carrying on life business (other than life reinsurance business), a fee of $87,000; [S 803/2014 wef 01/01/2015]
(ii)	for carrying on general business (other than general reinsurance business), a fee of $70,000; [S 803/2014 wef 01/01/2015]
(iii)	for carrying on life reinsurance business, a fee of $35,000; [S 803/2014 wef 01/01/2015]
(iv)	for carrying on general reinsurance business, a fee of $35,000; and [S 803/2014 wef 01/01/2015]
(v)	for carrying on any combination of the insurance business referred to in sub-paragraphs (i) to (iv), the aggregate of the respective fees. [S 618/2008 wef 02/12/2008] [S 237/2013 wef 18/04/2013]

(5) Except as provided in paragraph (6), the fees payable under paragraphs (1) to (4) shall be paid to the Authority on or before 1st January of each year.

(6) Where an insurer has not previously carried on insurance business in Singapore, or has not previously carried on the relevant type of insurance business in Singapore, the fees payable under paragraphs (1) to (4) shall be paid to the Authority before —

(a)	the insurer commences carrying on insurance business in Singapore; or
(b)	the insurer commences carrying on the relevant type of insurance business in Singapore,

as the case may be.

(7) For the purposes of paragraph (1), the total assets or gross premiums of any licensed insurer shall include the total assets or gross premiums, as the case may be, of any other licensed insurer (other than a captive insurer, marine mutual insurer or Special Purpose Reinsurance Vehicle) which insurance business had been totally acquired by the first-mentioned licensed insurer before 1st January of the year for which the fees are to be paid.

[S 748/2007 wef 01/01/2008]

[S 618/2008 wef 02/12/2008]

[S 237/2013 wef 18/04/2013]

(8) Where a licensed insurer enters into an agreement to purchase the whole of the insurance business of one or more other licensed insurers (referred to in this regulation as the potential constituent insurer), but the agreement is only to take effect on or after 1st January of the next year, the licensed insurer may, before the date that the agreement is to take effect, apply to the Authority for an exemption of part of the fees to be paid by the licensed insurer and the potential constituent insurers under paragraph (1).

[S 237/2013 wef 18/04/2013]

(9) Where, upon an application under paragraph (8), the Authority agrees to exempt part of the fees to be paid by the licensed insurer and the potential constituent insurers under paragraph (1), the fees payable to the Authority by the licensed insurer and the potential constituent insurers shall be in accordance with the following formulae:

(a)

fees payable by the licensed insurer —

(b)

fees payable by the potential constituent insurer —

where A is the total assets or total premiums, as the case may be, of the licensed insurer;

B is the total assets or total premiums, as the case may be, of the potential constituent insurer;

C is the total assets or total premiums, as the case may be, of the licensed insurer and all the potential constituent insurers; and

D is the fee payable under paragraph (1) based on the combined total assets or gross premiums, as the case may be, of the licensed insurer and all the potential constituent insurers.

[S 237/2013 wef 18/04/2013]

(10) Payment of the fees under this regulation shall be made —

(a)	through such electronic funds transfer system as the Authority may, from time to time, designate where payment may be effected by directing the transfer of funds electronically from the bank account of the payer to a bank account designated by the Authority; or
(b)	in such other form or manner as the Authority may allow.

(11) In this regulation —

“gross premiums” means —

(a)

in relation to a direct general insurer or general reinsurer, the aggregate of the gross premiums for the Singapore Insurance Fund and the Offshore Insurance Fund specified in the statement of premiums, claims and underwriting results in Form 6 in the First Schedule to the Insurance (Accounts and Statements) Regulations (Rg 2) lodged by the insurer or reinsurer, as the case may be, in the year immediately preceding the year for which the fees are to be paid; or

(b)

in relation to a life reinsurer, the aggregate of the gross premiums for the Singapore Insurance Fund and the Offshore Insurance Fund specified in the statement of life reinsurance policies (group and individual) in Form 5 in the First Schedule to the Insurance (Accounts and Statements) Regulations lodged by the reinsurer in the year immediately preceding the year for which the fees are to be paid;

[Deleted by S 237/2013 wef 18/04/2013]

“Special Purpose Reinsurance Vehicle” has the meaning given by the Insurance (General Provisions and Exemptions for Special Purpose Reinsurance Vehicles) Regulations 2018 (G.N. No. S 837/2018);

[S 841/2018 wef 01/01/2019]

“total assets”, in relation to a direct life insurer, means the aggregate of the total assets for the Singapore Insurance Fund and the Offshore Insurance Fund specified in the fund balance-sheet in Form 1 in the First Schedule to the Insurance (Accounts and Statements) Regulations lodged by the insurer in the year immediately preceding the year for which the fees are to be paid.

Inspection fees

4. For the purpose of section 39(3) of the Act —

(a)	the fee for the inspection of documents lodged shall be $5 for the documents of each insurer inspected; and
(b)	the fee for making a copy of the documents lodged shall be 20 cents for each copy made of each page of the documents.

Particulars to be advertised in connection with transfer of business

5. Before an application is to be made to the High Court for confirmation of a scheme under section 49FB of the Act, the notice to be published under section 49FC(1)(b) of the Act shall give the following particulars in addition to stating the intention to apply to the High Court for confirmation of the scheme:

(a)	the names of the insurer who is transferring the business and the insurer to which the business is to be transferred (referred to in this regulation as the insurers) and the general nature and effect of the scheme;
(b)	the addresses at which, and the period during which, the insurers would keep copies of the scheme available for inspection in Singapore by members and policy owners of those insurers and, if they are not available for inspection by all members and policy owners, the members and policy owners for whose inspection they are available; and
(c)	the policy owners (if any) who would have copies of the scheme transmitted to them by the insurers and the policy owners (if any) who, under any direction of the High Court applied for or to be applied for, would not have copies so transmitted to them. [S 237/2013 wef 18/04/2013]

Non-applicability of extra-territoriality of Act

6.—(1) Section 56A(2) of the Act shall not apply in respect of any advertisement issued by or on behalf of a person carrying on insurance business outside Singapore if —

(a)	the advertisement is not made to or directed at persons in Singapore, whether electronically or otherwise;
(b)	the advertisement does not contain any information especially relevant to persons in Singapore;
(c)	the advertisement contains a prominent disclaimer referred to in paragraph (2); and
(d)	the advertisement is not referred to in, or directly accessible from, any source which is calculated to draw the attention of persons in Singapore to the advertisement.

(2) For the purposes of paragraph (1)(c), the disclaimer shall consist of a statement to the effect that the advertisement to which it relates —

(a)	is directed at persons outside Singapore; or
(b)	shall not be acted on by persons in Singapore.

(3) In this regulation, “advertisement” means the dissemination or conveyance of information, or invitation or solicitation by any means or in any form, including by means of —

(a)	publication in a newspaper, magazine, journal or other periodical;
(b)	display of posters or notices;
(c)	circulars, handbills, brochures, pamphlets, books or other documents;
(d)	letters addressed to individuals or bodies corporate or unincorporate;
(e)	photographs or cinematograph films; or
(f)	sound broadcasting, television, the internet or other media.

Amounts prescribed for purposes of section 61(2)(b), (3) and (4) of Act

7.—(1) For the purposes of section 61(2)(b) and (3) of the Act, the amount prescribed is $150,000.

(2) For the purposes of section 61(4) of the Act, the amount prescribed is $50,000.

[S 389/2009 wef 01/09/2009]

Free look for life policies and accident and health policies

8.—(1) No licensed insurer shall, in the course of carrying on insurance business in Singapore, issue a life policy or an accident and health policy with a duration of one year or more without a clause providing that the policy owner —

(a)	has a period of at least 14 days after the date of receipt of the policy to examine the terms and conditions of the policy; and [S 613/2015 wef 30/10/2015]
(b)	may terminate the policy within the same period provided under sub-paragraph (a) for the policy owner to examine the terms and conditions of the policy. [S 613/2015 wef 30/10/2015] [S 237/2013 wef 18/04/2013]

(2) Where a policy is terminated pursuant to a clause referred to in paragraph (1)(b) —

(a)	any sum which the policy owner has paid in connection with the policy (whether by way of premium or otherwise and whether to the insurer or his agent for the purpose of receiving that sum) shall, subject to paragraph (3), be recoverable from the insurer by the policy owner; and
(b)	any expense incurred by the insurer in underwriting the policy shall be recoverable by the insurer from the policy owner.

(3) For the purpose of paragraph (2)(a), in the case of an investment-linked policy, the insurer shall, in determining the amount that is payable to the policy owner, be entitled to make an adjustment to reflect the change in market value of the underlying assets.

Determination of liabilities in connection with winding up

9.—(1) This regulation shall apply to any licensed insurer or Singapore insurer which has ceased to be so licensed but remains under any liability in respect of Singapore policies or offshore policies.

[S 237/2013 wef 18/04/2013]

(2) For the purposes of section 49FO(16) of the Act, and proceedings under the Companies Act (Cap. 50) —

(a)	in the case of a winding up of the affairs of an insurer to which this regulation applies by the court, in determining whether the insurer is unable to pay its debts, any liability of the insurer in respect of policies; and
(b)	in the case of a winding up of the affairs of an insurer to which this regulation applies, any liability of the insurer in respect of Singapore policies or offshore policies which is required to be valued,

shall be determined in the manner as set out in Part V of the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004).

[S 136/2020 wef 31/03/2020]

Surrender values of life policies

10.—(1) Where a policy owner surrenders a life policy under section 60(1) of the Act, the surrender value of the life policy shall be at least —

(a)

in the case of a policy issued before 23rd August 2004 —

(i)	where the policy is an endowment policy, an amount equal to 80% of the liabilities of the licensed insurer in respect of that policy determined in accordance with paragraph (2); or [S 237/2013 wef 18/04/2013]
(ii)	where the policy is a whole life policy, an amount equal to 95% of the liabilities of the licensed insurer in respect of that policy determined in accordance with paragraph (2), [S 237/2013 wef 18/04/2013]

less any moneys due under the policy to the insurer; or

(b)

in the case of a policy issued on or after 23rd August 2004, the amount that the insurer is contractually liable for on the surrender of the policy,

at the date of the surrender.

(2) For the purposes of paragraph (1)(a), the liabilities of a licensed insurer shall be determined by the net premium valuation method using —

(a)

in the case of any policy introduced before 1st January 1994 —

(i)	the A1924-29 Ultimate Mortality Table set out in Table 1 of the Schedule for both male and female lives; and
(ii)	an interest rate of 4% per annum; and

(b)

in the case of any policy introduced on or after 1st January 1994 —

(i)	the 1992 Commissioner’s Valuation Table set out in Table 2 of the Schedule; and
(ii)	an interest rate of 4% per annum. [S 237/2013 wef 18/04/2013]

(3) In this regulation —

“adjusted value of premiums payable on or after the valuation date” means the actual value of premiums adjusted —

(a)

by assuming that the policy provides only for such premiums as are sufficient to provide for the risk incurred by the insurer in issuing it, without provision for any other outgoings such as bonuses and office expenses; and

(b)

where the premiums are payable for a whole life policy or an endowment policy (with or without other benefits), by making whichever of the following further adjustments that will produce a lower adjusted value:

(i)	to assume that the policy is issued one year after the actual date of its issue (but without thereby postponing the time when the premiums cease or any policy moneys become payable if that time is fixed by reference to the date of issue) and to calculate the premiums referred to in paragraph (a) accordingly; or
(ii)	to add to the premiums referred to in paragraph (a), such amount as would have at the date of issue of the policy resulted in a capitalised value equal to 3% of the policy moneys (taking the value of any annuity as the capitalised value the annuity would have on becoming payable);

“net premium valuation method” means a valuation method where the liability in respect of a policy shall be taken as equal to the amount (if any) by which the value, as at the date on which the assets and liabilities of a licensed insurer are valued (referred to in this regulation as valuation date), of policy moneys which would be paid out under the policy, according to the contingencies on which they are payable, exceeds the adjusted value of premiums payable on or after the valuation date (if any), according to the contingencies upon which they are respectively payable.

[S 237/2013 wef 18/04/2013]

Amount of paid-up policy to be obtained in exchange for life policy

11.—(1) Where a policy owner exchanges a life policy issued before 23rd August under section 60(3) of the Act for a paid-up policy, the paid-up policy shall be for the amount determined, as at the date of exchange, by the following formula:

where A is the surrender value in dollars of the policy exchanged, less any sums due under the policy to the insurer; and

B is the value of the liabilities of the insurer in respect of a paid-up policy for one dollar payable on the like contingencies as the policy moneys under the policy exchanged.

(2) A licensed insurer shall calculate the surrender value referred to in the formula in paragraph (1) in the manner specified under regulation 10(1) and the liabilities referred to in the formula shall be valued on the basis set out in regulation 10(2).

[S 237/2013 wef 18/04/2013]

Compoundable offences

11A. The following offences may be compounded by the Authority in accordance with section 55 of the Act:

(a)	any offence under the Act or any regulations made thereunder which is punishable with a fine only, but not any offence under section 40B(5) or 49FN(12) of the Act or a continuing offence;
(b)	any offence (other than a continuing offence) under section 3(2), 4(2), 5(3), 6(3), 6A(8), 28(6), 29(8), 29A(6), 29B(4), 30(3)(a), 35K(1), 41(7), 41A(7) or (8), 41C(2)(a), 49FO(14)(a), 49FT(2)(a) or 55(1) or (2) of the Act;
(c)	any offence referred to in paragraph (a) or (b) committed by a corporation under section 55(3) of the Act in respect of which a person is liable to be punished under that section. [S 237/2013 wef 18/04/2013]

Savings and transitional provisions

12.—(1) Notwithstanding regulations 9, 10 and 11 and the Schedule, any registered insurer which carried on insurance business immediately before 23rd August 2004 shall, for the period from 23rd August 2004 to 31st December 2004 (both dates inclusive) (referred to in this regulation as the relevant period), determine its liabilities for the purposes of section 42(4) of the Act in accordance with regulation 25 of the revoked Insurance Regulations (Rg 1, 1999 Ed.) in force immediately before 23rd August 2004.

(2) Notwithstanding paragraph (1), a registered insurer may elect to determine its liabilities for the purposes of section 42(4) of the Act in accordance with regulation 9 of these Regulations at any time before the expiry of the relevant period.

(3) Where a registered insurer elects under paragraph (2) to determine its liabilities in accordance with regulation 9 of these Regulations, the insurer shall give notice in writing to the Authority of the date from which it elects to do so no later than 14 days after that date, and paragraph (1) shall not apply to the insurer from the date the election is made.

[G.N. No. S 684/2003]

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