Requirements relating to and duties oF Administrator
Responsibility of administrator
14.—(1) The administrator shall, directly or with the assistance of the regulatory resources of Lloyd’s, exercise due diligence and use all reasonable effort to co-ordinate and monitor the compliance of the provisions of the Act and these Regulations by the Service Companies.
(2) If the administrator, in the course of the performance of its duties under these Regulations, is satisfied that there is any matter materially affecting the operation of these Regulations, including but not limited to any matter —
(a)
which may adversely affect the financial position of any member of Lloyd’s carrying on insurance business in Singapore under these Regulations;
(b)
which may constitute a breach of any provision of the Act or a criminal offence involving fraud or dishonesty; or
(c)
which may involve irregularities in the accounts required to be submitted to the Authority under regulation 21, including irregularities that may jeopardize the insurance funds established under regulation 11,
the administrator shall immediately report the matter to the Authority.
Chief executive officer of administrator
15.—(1) The administrator shall appoint a chief executive officer who shall be —
(a)
an individual resident in Singapore; and
(b)
approved by the Authority.
(2) In paragraph (1), “chief executive officer”, in relation to the administrator, means any person by whatever name called, employed by the administrator to be directly responsible for the conduct of the administrator’s duties and functions in Singapore.
Duty to maintain deposits
16.—(1) The administrator shall, on behalf of all members of Lloyd’s carrying on insurance business in Singapore under these Regulations, make and maintain a deposit with the Authority of a value of not less than $500,000.
(2) Not later than 31st July of each year, the administrator shall, on behalf of all members of Lloyd’s carrying on insurance business in Singapore under these Regulations, make and maintain with the Authority such additional deposit, if any, as is necessary to secure that the aggregate value of the deposit referred to in paragraph (1) shall be the greater of $500,000, or 55% of the premiums in respect of Singapore policies issued by the members of Lloyd’s in the course of carrying on insurance business in Singapore under these Regulations in the preceding year.
(3) The Authority may apply all or any part of the deposits made under paragraphs (1) and (2) towards any valid claim of a policy owner of a policy issued by a member of Lloyd’s under these Regulations which remains unpaid 30 days after the issue of a notice by the Authority under paragraph (4).
(4) Before applying any part of the deposits made under paragraph (1), the Authority shall give the administrator a notice in writing of its intention to do so and identify the claim in respect of which the deposits are to be applied.
(5) Where the Authority has applied all or any part of the deposits made under paragraphs (1) and (2) towards any valid claim of a policy owner of a policy issued by a member of Lloyd’s under these Regulations under paragraph (3), the administrator shall top up any deficiency in the deposits within 30 days of the notice of the deficiency by the Authority.
(6) The Authority shall retain any deposit required to be made under paragraphs (1) and (2) until it is satisfied that all members of Lloyd’s have ceased to carry on insurance business in Singapore under these Regulations.
(7) If the Authority is satisfied that all members of Lloyd’s have ceased to carry on insurance business in Singapore under these Regulations, the Authority shall transfer to the administrator the entire deposits less such part that the Authority determines should be kept available for purpose of meeting claims against such members in respect of policies issued by the members of Lloyd’s under these Regulations.
Letter of credit
17.—(1) Before any assets are transferred under regulation 11(6), the administrator shall establish in favour of the Authority an irrevocable letter of credit issued by a bank licensed under the Banking Act (Cap.19) in a form acceptable to the Authority, to secure payment of the net liabilities of the members of the syndicate concerned from time to time outstanding (as determined quarterly) under all Singapore policies and offshore policies issued by the members of the syndicate under these Regulations.
(2) The Authority may call on the letter of credit furnished under paragraph (1) to satisfy any valid claim of a policy owner of a policy issued by a member of Lloyd’s under these Regulations which remains unpaid 30 days after the issue of a notice by the Authority under paragraph (3).
(3) Before calling on the letter of credit furnished under paragraph (1), the Authority shall give the administrator a notice in writing of its intention to do so and identify the claim in respect of which the letter of credit is to be applied.
(4) In this regulation —
“gross outstanding claims” means claims that have been notified and quantified gross of reinsurance recoveries;
“net liabilities” means the gross outstanding claims less credit for ceded reinsurance.
Registers
18.—(1) The administrator shall maintain —
(a)
a register of members of Lloyd’s registered under regulation 4;
(b)
a register of Service Companies registered under regulation 6; and
(c)
a register containing the names and the particulars of each syndicate under which the members of Lloyd’s referred to in sub-paragraph (a) carry on insurance business in Singapore under these Regulations, the names of each member of Lloyd’s who carries on insurance business in Singapore under that syndicate and the share of each member of Lloyd’s in the undertakings of that syndicate.
(2) The register of members of Lloyd’s referred to in paragraph (1)(a) shall contain the particulars set out in the Third Schedule.
(3) The register of Service Companies referred to in paragraph (1)(b) shall contain the particulars set out in the Fourth Schedule.
Duty of administrator to assist claimants
19. The administrator shall, in the event of an unresolved dispute over a claim by a policy owner under a policy issued by any member of Lloyd’s carrying on insurance business in Singapore under these Regulations, upon the request of the policy owner assist the policy owner in making a complaint to the Lloyd’s Complaint’s Department for the purpose of resolving the dispute.
General obligations of administrator
20.—(1) The administrator shall immediately notify the Authority —
(a)
if any Service Company ceases to enter into contracts of insurance in Singapore on behalf of any member of Lloyd’s;
(b)
if the managing agent that is the holding company of the Service Company ceases to be permitted by Lloyd’s to act as a managing agent of Lloyd’s;
(c)
if any member of Lloyd’s carrying on insurance business in Singapore under these Regulations —
(i)
ceases to enter into contracts of insurance through any Service Company; or
(ii)
where the member of Lloyd’s carrying on insurance business in Singapore under these Regulations enters into contracts of insurance through a managing agent that is a holding company of any Service Company, ceases to enter into contracts of insurance through the managing agent;
(d)
if any member of Lloyd’s carrying on insurance business in Singapore under these Regulations ceases to do so for any reason; or
(e)
if any of the following is the subject of any disciplinary action by Lloyd’s, or is under an inquiry in accordance with the Lloyd’s Inquiries and Investigations Byelaw as directed by or under the authority of the Council of Lloyd’s, that may result in disciplinary action to expel or suspend the person being taken against the person:
(i)
a member of Lloyd’s carrying on insurance business in Singapore under these Regulations;
(ii)
a Service Company; or
(iii)
a managing agent at Lloyd’s in relation to which a Service Company is acting as agent in Singapore.
(2) The administrator shall give not less than 6 months’ notice in writing to the Authority if it intends to cease to act as administrator under these Regulations.
Submission of returns by administrator
21.—(1) The administrator shall prepare, and provide the Authority with, such statements of accounts and other documents in relation to the carrying on of insurance business in Singapore by the members of Lloyd’s under these Regulations as the Authority may require.
(2) Unless the Authority otherwise agrees, the administrator shall furnish not less than 3 copies of any statement or document referred to in paragraph (1), at least one of which shall be signed by the chief executive officer appointed under regulation 15.
(3) The Authority may require any statement or document referred to in paragraph (1) to be furnished at such times and intervals as the Authority may determine.
Annual fee
22. The administrator shall, on behalf of all members of Lloyd’s carrying on insurance business in Singapore under these Regulations, no later than the beginning of each year, pay to the Authority an annual fee of $50,000.