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Formal Consolidation |  Amended S 802/2004
Requirements and returns as to fund solvency and capital adequacy
8A.—(1)  A financial guarantee insurer who carries on the business of issuing only financial guarantee insurance policies shall be exempt from —
(a)regulation 4 of the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004); and
(b)regulation 8 of the Insurance (Accounts and Statements) Regulations 2004 (G.N. No. S 494/2004).
(2)  For the purposes of section 18(1)(a) of the Act, the fund solvency requirement in respect of an insurance fund established and maintained under the Act by a financial guarantee insurer who carries on the business of issuing only financial guarantee insurance policies shall at all times be such that —
(a)in the case of an insurance fund that relates to Singapore policies, the surplus of assets over liabilities of the fund, less its contingent liabilities, is not less than the highest of the following amounts (referred to in this regulation as the SIF amount):
(i)$5 million;
(ii)50% of net premiums written of the fund in the preceding accounting period; or
(iii)50% of claim liabilities of the fund as at the end of the preceding accounting period; and
(b)in the case of an insurance fund that relates to offshore policies, the surplus of assets over liabilities of the fund, less its contingent liabilities, is not less than the highest of the following amounts (referred to in this regulation as the OIF amount):
(i)$1 million;
(ii)20% of net premiums written of the fund in the preceding accounting period; or
(iii)20% of claim liabilities of the fund as at the end of the preceding accounting period.
(3)  For the purposes of section 18(1)(b) of the Act, the capital adequacy requirement of a financial guarantee insurer who carries on the business of issuing only financial guarantee insurance policies shall at all times be such that the shareholders’ equity and surplus of the insurer, less the contingent liabilities of the insurer, is not less than the sum of the SIF amount, OIF amount and $5 million.
[S 802/2004 wef 01/01/2005]
Informal Consolidation | Amended S 838/2018
Requirements and returns as to fund solvency and capital adequacy
8A.—(1)  A financial guarantee insurer who carries on the business of issuing only financial guarantee insurance policies shall be exempt from —
(a)regulation 4 of the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004); and
(b)[Deleted by S 838/2018 wef 01/01/2019]
(2)  For the purposes of section 18(1)(a) of the Act, the fund solvency requirement in respect of an insurance fund established and maintained under the Act by a financial guarantee insurer who carries on the business of issuing only financial guarantee insurance policies shall at all times be such that —
(a)in the case of an insurance fund that relates to Singapore policies, the surplus of assets over liabilities of the fund, less its contingent liabilities, is not less than the highest of the following amounts (referred to in this regulation as the SIF amount):
(i)$5 million;
(ii)50% of net premiums written of the fund in the preceding accounting period; or
(iii)50% of claim liabilities of the fund as at the end of the preceding accounting period; and
(b)in the case of an insurance fund that relates to offshore policies, the surplus of assets over liabilities of the fund, less its contingent liabilities, is not less than the highest of the following amounts (referred to in this regulation as the OIF amount):
(i)$1 million;
(ii)20% of net premiums written of the fund in the preceding accounting period; or
(iii)20% of claim liabilities of the fund as at the end of the preceding accounting period.
(3)  For the purposes of section 18(1)(b) of the Act, the capital adequacy requirement of a financial guarantee insurer who carries on the business of issuing only financial guarantee insurance policies shall at all times be such that the shareholders’ equity and surplus of the insurer, less the contingent liabilities of the insurer, is not less than the sum of the SIF amount, OIF amount and $5 million.
[S 802/2004 wef 01/01/2005]