PART II
FINANCIAL REQUIREMENT BEFORE LICENSING, FUND SOLVENCY REQUIREMENT AND CAPITAL ADEQUACY REQUIREMENT
[S 234/2013 wef 18/04/2013]
Paid-up capital requirement
3.  For the purposes of section 8(3)(b) of the Act, the Authority shall not license an applicant as a marine mutual insurer unless the applicant has a paid-up ordinary share capital (or its equivalent recognised by the Authority as applicable to the applicant under the laws of the country or territory in which the applicant is incorporated, formed or established) of not less than $5 million.
[S 234/2013 wef 18/04/2013]
Fund solvency requirement
4.  For the purposes of section 18(1)(a) of the Act, the fund solvency requirement in respect of an insurance fund established and maintained by a marine mutual insurer under the Act shall at all times be such that —
(a)in the case of an insurance fund that relates to Singapore policies, the surplus of assets over liabilities of the fund, less its contingent liabilities, is not less than the GSIF amount; and
(b)in the case of an insurance fund that relates to offshore policies, the amount of assets in the fund, less its contingent liabilities, is not less than the amount of liabilities of the fund.
Capital adequacy requirement
5.  For the purposes of section 18(1)(b) of the Act, the capital adequacy requirement of a marine mutual insurer shall at all times be such that the shareholders’ equity and surplus, less the contingent liabilities of the insurer, is not less than the sum of $400,000 and the GSIF amount.
Exemptions in respect of Insurance (Valuation and Capital) Regulations 2004
6.  A marine mutual insurer shall be exempt from regulations 3 and 4 of the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004).