Fund solvency requirement
5.—(1)  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 captive insurer under the Act shall at all times be such that —
(a)in the case of an insurance fund for general business 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;
(b)in the case of an insurance fund for general business that relates to offshore policies, the amount of assets in the fund, less its contingent liabilities, is not less than the amount of the liabilities of the fund; and
(c)in the case of an insurance fund for life business, the amount of assets in the fund, less its contingent liabilities, is not less than the amount of the liabilities of the fund.
(2)  In this regulation and regulation 6, "GSIF amount", in relation to an insurance fund that relates to Singapore policies, means the highest of the following amounts:
(a)$400,000;
(b)20% of net premiums written of the fund in the preceding financial year; or
(c)20% of the claim liabilities of the fund as at the end of the preceding financial year.
[S 242/2013 wef 18/04/2013]