6A.—(1) No Service Company shall, without the approval of the Authority —
(a)
enter into any contract of insurance on behalf of the members of any syndicate;
(b)
cause or permit any amendment or alteration of its memorandum or articles of association;
(c)
cause or permit any reduction of its paid-up capital;
(d)
cause or permit any significant change in its ownership; or
(e)
participate in any pool business other than pools formed by the Singapore insurance industry to cover special risks.
(2) No Service Company shall write any insurance business, unless it has reason to believe that suitable arrangements for the reinsurance of the business written in Singapore are in place at all times and that the reinsurers are of good security.
(3) Every Service Company shall at all times maintain a surplus of assets over liabilities of not less than $150,000.
(4) Every Service Company shall immediately inform the Authority if —
(a)
it is or is likely to be unable to maintain a surplus of assets over liabilities of $150,000 or to meet its obligations as they fall due;
(b)
it becomes aware that any of the arrangements referred to in paragraph (2) has been, is being or is likely to be rendered inadequate or ineffective; or
(c)
for any accounting period, the permitted trust outgoings of any insurance fund established by it under regulation 11 exceed the premium receipts of that insurance fund.
[S 814/2004 wef 01/01/2005]
Informal Consolidation | Amended S 180/2015
Duties of Service Company
6A.—(1) A Service Company must not, without the approval of the Authority, enter into any contract of insurance on behalf of the members of a syndicate.
[S 180/2015 wef 01/04/2015]
(1A) Despite paragraph (1), a Service Company (called in this paragraph Lead Service Company) may enter into any contract of insurance on behalf of the members of a syndicate without the approval of the Authority if —
(a)
the Authority has approved another Service Company under paragraph (1) to enter into the contract of insurance on behalf of the members of that syndicate, and that approval has not been revoked;
(b)
the members of the syndicate have authorised the other Service Company to authorise the Lead Service Company to enter into the contract of insurance on behalf of the members of that syndicate; and
(c)
the other Service Company has authorised the Lead Service Company to enter into the contract of insurance on behalf of the members of the syndicate.
[S 180/2015 wef 01/04/2015]
(2) No Service Company shall write any insurance business, unless it has reason to believe that suitable arrangements for the reinsurance of the business written in Singapore are in place at all times and that the reinsurers are of good security.
(3) Every Service Company shall immediately inform the Authority if —
(a)
it becomes aware that any arrangement referred to in paragraph (2) has been, is being or is likely to be rendered inadequate or ineffective;
[S 180/2015 wef 01/04/2015]
(b)
for any accounting period, the permitted trust outgoings of any insurance fund established by it under regulation 11 exceed the premium receipts of that insurance fund;
[S 180/2015 wef 01/04/2015]
(c)
any development has occurred or is likely to occur which the Service Company has reasonable grounds to believe is likely to have a material adverse effect on the financial position of the Service Company; or
[S 180/2015 wef 01/04/2015]
(d)
it amends or alters its memorandum and articles of association.
[S 180/2015 wef 01/04/2015]
(4) Every Service Company must, within one month after any amendment or alteration to its memorandum and articles of association, furnish to the Authority written particulars of the amendment or alteration, verified by a statutory declaration made by a senior officer of the Service Company.
[S 180/2015 wef 01/04/2015]
(5) A Service Company must, not less than 14 days before authorising a person as its coverholder, notify the Authority in writing of the particulars set out in sub-paragraph (g) of the Fourth Schedule of the person.