PART I | Citation and commencement |
| 1. These Regulations may be cited as the Insurance (Valuation and Capital) Regulations 2004 and shall come into operation on 23rd August 2004. |
2.—(1) In these Regulations, unless the context otherwise requires —| “Accounting Standards” has the same meaning as in section 4(1) of the Companies Act (Cap. 50); |
| “aggregate limit”, in relation to a contract of reinsurance entered into between an SPRV and a ceding insurer, means the maximum amount payable to the ceding insurer under that contract; [S 845/2018 wef 01/01/2019] |
| [Deleted by S 233/2013 wef 18/04/2013] |
| “appointed day” means the date of commencement of these Regulations; |
| [Deleted by S 233/2013 wef 18/04/2013] |
| “associates” has the same meaning as in section 28(7)(c) of the Act; [S 233/2013 wef 18/04/2013] |
| “ceding insurer” means an insurer that enters into a contract of reinsurance with an SPRV; [S 845/2018 wef 01/01/2019] |
| “collective investment scheme” has the same meaning as in section 2(1) of the Securities and Futures Act (Cap. 289); |
“commodity”, in relation to a forward contract or futures contract, means —| (a) | a financial instrument; or | | (b) | gold, any class of oil or any other physical commodity; |
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| “counterparty” means any person who is under a financial obligation to the insurer; |
| “debt security” includes any debenture, bond or note; |
| “derivative” includes any warrant, convertible security, forward contract, futures contract, swap, contract for differences or option; |
| “equity security” includes any stock, share, depository receipt or unit in a collective investment scheme; |
| “financial resources” has the meaning set out in paragraph 1 of the First Schedule; |
| “forward contract” means a contract the effect of which is that one party to the contract agrees to deliver a specified commodity, or a specified quantity of a specified commodity, to another party to the contract at a specified future time and at a specified price payable at that time, and includes an option on a forward contract but does not include a futures contract; |
“fully funded”, in relation to an SPRV, means —| (a) | in the case of any contract of reinsurance entered into between the SPRV and a ceding insurer that specifies an aggregate limit, that the assets held on trust or otherwise held under the terms of that contract by or on behalf of the SPRV for the benefit of the ceding insurer are not at any time less than the potential liabilities of the SPRV under all reasonably foreseeable scenarios, taking into account the aggregate limit of that contract and the expenses that the SPRV expects to incur; and | | (b) | in the case of any contract of reinsurance entered into between the SPRV and a ceding insurer that does not specify an aggregate limit, that the assets held on trust or otherwise held under the terms of that contract by or on behalf of the SPRV for the benefit of the ceding insurer are not at any time less than the potential liabilities of the SPRV under all reasonably foreseeable scenarios, taking into account the obligations of the SPRV towards the ceding insurer under that contract and the expenses that the SPRV expects to incur; |
[S 845/2018 wef 01/01/2019] |
“futures contract” means a contract the effect of which is that —| (a) | one party to the contract agrees to deliver a specified commodity, or a specified quantity of a specified commodity, to another party to the contract at a specified future time and at a specified price payable at that time under the terms and conditions set out in the business rules and practices of the futures exchange, recognised trading system provider or overseas futures exchange at which the contract is made; or | | (b) | the parties to the contract will discharge their obligations under the contract by settling the difference between the value of a specified quantity of a specified commodity agreed at the time of the making of the contract and at a specified future time, such difference being determined in accordance with the business rules and practices of the futures exchange, recognised trading system provider or overseas futures exchange at which the contract is made, and includes an option on a futures contract; |
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“government debt security” means a debt security which —| (a) | is issued or fully guaranteed by the Government; | | (b) | is issued or fully guaranteed by a central government or central bank of a country or territory which has a sovereign rating of investment grade; or | | (c) | is issued or fully guaranteed by a central government or central bank of a country or territory which does not have a sovereign rating of investment grade, is denominated in the national currency of that country, and has a residual maturity of 12 months or less; |
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| “insurance securitisation”, in relation to an SPRV, means any debt or other financing arrangement entered into by the SPRV with an investor, where repayment of the principal or interest (or both) to the investor is contingent upon the occurrence or non-occurrence of an event, upon which the ceding insurer is exposed to financial loss under contracts of insurance or reinsurance that the ceding insurer has issued; [S 845/2018 wef 01/01/2019] |
| “investment-linked fund” means an insurance fund for investment-linked policies established and maintained under section 17(1A) of the Act; |
| “investment grade” means a credit rating set out in Table 1 of the Sixth Schedule issued by the corresponding credit rating agency in that Table or any better credit rating; |
| “MAS Notice 129” means the notice commonly known as MAS Notice 129 issued by the Authority under sections 36(3), 36(3A), 37(1)(b) and 64(2) of the Act, as amended from time to time, and includes any notice that replaces it; [S 845/2018 wef 01/01/2019] |
| “MAS Notice 130” means the notice commonly known as MAS Notice 130 issued by the Authority under sections 36(3), 36(3A) and 64(2) of the Act, as amended from time to time, and includes any notice that replaces it; [S 845/2018 wef 01/01/2019] |
| “MAS Notice 131” means the notice commonly known as MAS Notice 131 issued by the Authority under sections 36(3), 36(3A) and 64(2) of the Act, as amended from time to time, and includes any notice that replaces it; [S 845/2018 wef 01/01/2019] |
| “MAS Notice 212” means the notice commonly known as MAS Notice 212 issued by the Authority under sections 36(3), 36(3A) and 64(2) of the Act, as amended from time to time, and includes any notice that replaces it; [S 845/2018 wef 01/01/2019] |
“minimum condition liability”, in relation to a participating fund, means the sum of —| (a) | the liability (net of reinsurance) in respect of each non-participating policy of the fund determined in the manner provided in regulation 20(1); and [S 845/2018 wef 01/01/2019] | | (b) | the liability (net of reinsurance) in respect of each participating policy of the fund determined in accordance with the manner provided in regulation 20(1) for determining the liability (net of reinsurance) in respect of a non-participating policy, but does not include any provision for non-guaranteed benefits; [S 845/2018 wef 01/01/2019] |
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| “money market debt security” means any debt security with a maturity of 12 months or less, and includes any banker’s acceptance, commercial paper, certificate of deposit or government or treasury bill or note, with a maturity of 12 months or less; |
| “mortgage insurance policy” means a policy that protects against losses on mortgage loans arising from default by borrowers; [S 733/2007 wef 01/01/2008] |
| “mortgage insurer” means an insurer licensed under the Act which has liabilities in respect of mortgage insurance policies; [S 733/2007 wef 01/01/2008] [S 233/2013 wef 18/04/2013] |
| “net premiums written” means the net amount of premiums written by an insurer after deduction of return premiums and payments in respect of reinsurance business ceded; [S 733/2007 wef 01/01/2008] |
| “non-participating fund” means an insurance fund established and maintained under section 17(2) of the Act which comprises wholly of non-participating policies; |
| “ordinary share” means any share other than a preference share; |
| “participating fund” means an insurance fund established and maintained under section 17(2) of the Act which comprises wholly or partly of participating policies; |
“policy assets”, in relation to a participating fund, means the total assets of the fund as at valuation date less —| (a) | the balance in the surplus account established and maintained in accordance with regulation 22; and | | (b) | all liabilities of the fund (except liabilities in respect of the policies comprised in the participating fund); [S 845/2018 wef 01/01/2019] |
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| [Deleted by S 112/2012 wef 28/03/2012] |
| “preference share”, in relation to a licensed insurer incorporated in Singapore, has the same meaning as in section 4(1) of the Companies Act (Cap. 50); [S 233/2013 wef 18/04/2013] |
| “public authority” means any body corporate constituted under any Act or under the law of any other country or territory for the purpose of carrying out a public function; |
| “qualifying Tier 2 instrument” has the meaning set out in paragraph 2 of the First Schedule; |
| “recognised multilateral agency” means an organisation listed in Table 2 of the Sixth Schedule; |
| “reinsurance recoverables” means any amount that an insurer is entitled to recover, but has yet to recover, from its reinsurance counterparty in respect of claims that have been paid by the insurer; |
| “share”, in relation to a licensed insurer incorporated in Singapore, has the same meaning as in section 4(1) of the Companies Act (Cap. 50); [S 233/2013 wef 18/04/2013] |
“Special Purpose Reinsurance Vehicle” or “SPRV” means an insurer licensed under section 8 of the Act as a reinsurer to carry on life or general business or both classes of business and —| (a) | is created for the sole purpose of entering into contracts of reinsurance with one or more ceding insurers; and | | (b) | at all times fully funds its obligations under the contracts of reinsurance with the ceding insurer or insurers mentioned in paragraph (a) through insurance securitisation; |
[S 845/2018 wef 01/01/2019] |
“special risk” means —| (a) | any liability under a marine and aviation policy which consists of or which includes a liability arising from the insurance of a marine hull or aircraft hull; or | | (b) | any other risk which, by reason of its exceptional nature or amount, the Authority permits to be treated as a special risk; |
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| “total risk requirement” has the meaning set out in the Second Schedule; |
| [Deleted by S 112/2012 wef 28/03/2012] |
| “trade credit insurer” means an insurer licensed under the Act which has liabilities in respect of trade credit insurance policies; [S 112/2012 wef 28/03/2012] [S 233/2013 wef 18/04/2013] |
| [Deleted by S 233/2013 wef 18/04/2013] |
“trade credit insurance policy” means a policy that protects against the risks of loss of an insured arising from —| (a) | the insolvency or default (otherwise than through insolvency) of the debtor of the insured; and | | (b) | the debtor failing to pay for goods or services as a result of the insolvency or default; [S 233/2013 wef 18/04/2013] |
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| “unit”, in relation to a collective investment scheme, has the same meaning as in section 2(1) of the Securities and Futures Act (Cap. 289); |
| “valuation date” means the date on which the assets and liabilities of a licensed insurer are valued. [S 233/2013 wef 18/04/2013] |
(2) In these regulations —| (a) | any reference to a policy of a participating, non-participating or investment-linked fund shall be construed as a reference to a policy in respect of which the participating, non-participating or investment-linked fund, as the case may be, is established or maintained by an insurer under the Act; and | | (b) | any reference to a licensed insurer incorporated in Singapore includes a licensed insurer which is a society registered under the Co-operative Societies Act (Cap. 62). [S 233/2013 wef 18/04/2013] |
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