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) In this regulation, “permitted trust outgoings” means —
(a)
in relation to an insurance fund for Singapore policies, Permitted Singapore Policies Trust Outgoings, as defined in the Lloyd’s Asia (Singapore Policies) Instrument made by the Council of Lloyd’s; and
(b)
in relation to an insurance fund for offshore policies, Permitted Offshore Policies Trust Outgoings, as defined in the Lloyd’s Asia (Offshore Policies) Instrument made by the Council of Lloyd’s.