PART III | requirements relating to and duties of Service companies |
| Requirements for Service Company |
5.—(1) Only companies registered under the Companies Act (Cap.50) meeting the following requirements shall act as agents for any member of Lloyd’s under these Regulations:| (a) | the company must, unless the Authority otherwise permits, be a subsidiary of a managing agent at Lloyd’s; | | (b) | the company must have a paid-up capital of not less than $300,000; and | | (c) | the company must be registered with the administrator under regulation 6. |
| (2) [Deleted by S 814/2004 wef 01/01/2005] |
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| Registration of Service Company |
6.—(1) Any company that wishes to act as an agent in Singapore for any member of Lloyd’s under these Regulations shall apply to be registered with the administrator.| (2) An application for registration under paragraph (1) shall be in such form and contain such particulars as the administrator may determine. |
(3) Upon receiving an application under paragraph (1), the administrator shall —| (a) | notify the Authority in writing of the application and furnish the Authority in writing with the particulars of the applicant set out in the Second Schedule and such other information as the Authority may require; and [S 814/2004 wef 01/01/2005] | | (b) | register the applicant on the date of expiry of the period of 30 days commencing on the day immediately following the day on which the particulars and information referred to in sub-paragraph (a) were furnished to the Authority pursuant to the last request made by the Authority under that sub-paragraph, unless the Authority objects to the registration before that date of expiry. [S 814/2004 wef 01/01/2005] |
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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. |
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| Officers of Service Company |
7.—(1) A Service Company shall —| (a) | appoint as its chief executive officer an individual who shall be resident in Singapore; and | | (b) | appoint in Singapore at least one underwriter who has at least 6 years (or any shorter period as the Authority may allow) experience in underwriting any specialised risk of a type set out in the First Schedule. |
| (2) No Service Company shall appoint any person as its chief executive officer or a director unless the Service Company satisfies the Authority that the person is a fit and proper person to be so appointed and has obtained the approval of the Authority. |
| (3) Where a Service Company has obtained the approval of the Authority to appoint a person as its chief executive officer or director under this regulation, the person may be re-appointed as chief executive officer or director, as the case may be, of the Service Company immediately upon the expiry of the earlier term without the approval of the Authority. |
| (4) In this regulation, “chief executive officer”, in relation to the Service Company, means any person by whatever name called, employed by the Service Company to be directly responsible for the conduct of the Service Company’s duties and functions in Singapore. [S 665/2010 wef 04/11/2010] [S 814/2004 wef 01/01/2005] |
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| Premises of Service Company |
| 8. A Service Company shall only conduct business at the registered office of the administrator or at such other premises as may be approved by the Authority. |
| 9. A Service Company shall inform the Authority of any intention by it, on behalf of any member of Lloyd’s of which it is an agent under these Regulations, to introduce into Singapore policies insuring risks of a nature which have not been previously underwritten in the Singapore general insurance market. |
| Duty to respond to notices and legal processes |
| 10. A Service Company shall be responsible for accepting and responding to notices and legal processes to members of Lloyd’s carrying on insurance business in Singapore of which the Service Company is an agent under these Regulations. |
| Establishment and maintenance of separate insurance funds |
11.—(1) A Service Company shall, on behalf of each member of Lloyd’s of which it is an agent under these Regulations, establish and maintain in Singapore, in respect of each syndicate in relation to which it acts for that member, the following insurance funds in respect of policies issued by the member in the course of carrying on insurance business in Singapore:| (a) | an insurance fund for Singapore policies; and | | (b) | an insurance fund for offshore policies. |
| (2) A Service Company shall pay all premium receipts received by it in respect of policies issued by any member of Lloyd’s in respect of which it is an agent under these Regulations into the respective insurance fund established under paragraph (1). |
| (3) The premium receipts of different members of Lloyd’s carrying on insurance business in Singapore through the same Service Company or different Service Companies may be placed or pooled in the same bank account or may be otherwise mixed together except that the assets of an insurance fund for Singapore policies must not be mixed with the assets of an insurance fund for offshore policies. |
| (4) The assets of the insurance funds established under paragraph (1) shall only be used to meet permitted trust outgoings. |
| (5) During any year, there shall remain in the respective insurance funds, assets not less in value than the amount of premiums received respectively for policies issued by the members of Lloyd’s as members of the syndicate concerned in the course of carrying on insurance business in Singapore under these Regulations in the same year, less the amount of permitted trust outgoings attributable to the respective policies paid during the year. |
| (6) After the end of each year, all or any assets of the insurance funds established under paragraph (1) may, subject to regulation 17, be transferred to such premiums trust funds outside Singapore as the Authority may permit. |
| (7) [Deleted by S 814/2004 wef 01/01/2005] |
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| Registers maintained by Service Company |
12. Every Service Company shall maintain —| (a) | a register of all Singapore policies; and | | (b) | a register of all offshore policies, |
| issued on behalf of the members of Lloyd’s carrying on insurance business in Singapore under these Regulations in respect of which it is appointed as an agent. |
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| Accounts and statement of Service Company |
13.—(1) Every Service Company shall prepare, for each syndicate for which it acts as an agent or, where it acts as an agent for more than one syndicate, those syndicates on a consolidated basis with the approval of the Authority —| (a) | for each accounting period and subject to such modifications or variations as may be agreed to by the Authority, the statements of accounts and other statements for each insurance fund established and maintained under regulation 11(1) in Forms 1, 2 and 3 in the Fifth Schedule; | | (b) | for each accounting period and subject to such modifications or variations as may be agreed to by the Authority, the statements of accounts for each insurance fund established and maintained under regulation 11(1) in Form 3 (excluding the Notes) in the Fifth Schedule; and [S 665/2010 wef 04/11/2010] | | (c) | for each quarter and subject to such modifications or variations as may be agreed to by the Authority, the statements of accounts for each insurance fund established and maintained under regulation 11(1) in Forms 1, 2 and 3 (excluding the Notes and Annexes) in the Fifth Schedule. [S 814/2004 wef 01/01/2005] |
| (2) Every Service Company shall have the accounts of each insurance fund audited for each accounting period for which statements of accounts and other statements are prepared in accordance with paragraph (1)(a), and may exclude the Annexes to such statements from the audit. |
| (2A) In any document which a Service Company is required to prepare in accordance with these Regulations in relation to a syndicate, the value or amount given for an asset or a liability relating to the business of the syndicate written by the Service Company shall be the value or amount of that asset or liability, as the case may be, as determined in accordance with regulations 13A to 13M. |
| (3) A Service Company shall prepare 3 copies of the statements of accounts required under paragraph (1)(a), at least one of which shall be signed by 2 directors of the Service Company and by or on behalf of the chief executive officer of the Service Company. [S 814/2004 wef 01/01/2005] |
| (4) The persons signing any balance-sheet under paragraph (1)(a) shall prepare a certificate in Form 4 in the Fifth Schedule. [S 814/2004 wef 01/01/2005] |
| (5) The auditor of the statements of accounts prepared under paragraph (1)(a) shall enclose, with the statements of accounts, a report stating his opinion of the statements of accounts and a supplementary report in Forms 5 and 6 in the Fifth Schedule, respectively. [S 814/2004 wef 01/01/2005] [S 665/2010 wef 04/11/2010] |
(6) Every Service Company shall, within such reasonable time as may be specified by the administrator in order for the administrator to comply with regulation 21, provide the administrator with —| (a) | the statements of accounts and other documents prepared in accordance with paragraphs (1) to (5); and | | (b) | information on any matter related to its activities as agent for any member of Lloyd’s under these Regulations, as the administrator may require. |
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