Suggest a correction

Approval or removal of key executive person, chairperson or director of licensed insurer

Insurance Act 1966

What needs fixing?

Wrong or mistyped textWrong structure or numberingWrong title or detailsDuplicated content

Proposed text

—(1) Subject to this section, a licensed insurer must have —(a)a chief executive;(b)an appointed actuary, if the insurer is a direct insurer licensed to carry on life business;(c)a certifying actuary, if the insurer is a direct insurer licensed to carry on general business, or a reinsurer licensed to carry on life or general business; and(d)such other person holding an appointment, or persons holding appointments, in the licensed insurer as may be prescribed.(2) Subject to this section, a licensed insurer which is established or incorporated in Singapore must have a chairperson appointed from among its directors. (3) Subject to this section, a licensed insurer may appoint a person as its deputy chief executive.(4) A licensed insurer must not appoint a person as its key executive person unless —(a)the insurer has satisfied the Authority that the person is a fit and proper person to be so appointed; and(b)the insurer has obtained the approval of the Authority to so appoint the person.(5) A licensed insurer which is established or incorporated in Singapore must not appoint a person as its chairperson or director unless —(a)the insurer has satisfied the Authority that the person is a fit and proper person to be so appointed; and(b)the insurer has obtained the approval of the Authority to so appoint the person.(6) The Authority may —(a)grant its approval, with or without conditions —(i)to a licensed insurer to appoint a key executive person under subsection (4); or(ii)to a licensed insurer which is established or incorporated in Singapore to appoint a person as its chairperson or director (as the case may be) under subsection (5); and(b)at any time add to, vary or revoke any condition of approval referred to in paragraph (a) or impose any conditions thereto. (7) Without limiting section 154, the Authority may prescribe the duties of the key executive persons of a licensed insurer, and the duties of the chairperson and directors of a licensed insurer which is established or incorporated in Singapore.(8) Where a licensed insurer has obtained the approval of the Authority to appoint a person as its key executive person under subsection (4), the person may be re‑appointed in that office or appointment immediately upon the expiry of the earlier term without the approval of the Authority.(9) Where a licensed insurer which is established or incorporated in Singapore has obtained the approval of the Authority to appoint a person as its chairperson or director under subsection (5), the licensed insurer must only appoint the person to hold such office or appointment for a term not exceeding such period as may be prescribed.(10) If at any time it appears to the Authority that —(a)a key executive person of a licensed insurer, or the chairperson or a director of a licensed insurer which is established or incorporated in Singapore, has failed to perform his or her functions or is no longer a fit and proper person to be so appointed; and(b)it is necessary in the public interest or for the protection of policy owners of a licensed insurer,the Authority may direct the licensed insurer to remove the key executive person, chairperson or director (as the case may be) from his or her office, appointment or employment.(11) When determining, for the purpose of determining whether to grant its approval under subsection (4) or (5), or for the purposes of subsection (10)(a), whether a key executive person, chairperson or director has failed to perform his or her functions, the Authority must, without prejudice to any other matter it may consider relevant, have regard to such criteria as may be prescribed.(12) Before directing a licensed insurer to remove a person from his or her office, appointment or employment under subsection (10), the Authority must —(a)give the insurer and the person written notice of the Authority’s intention to do so; and(b)in the notice referred to in paragraph (a), call upon the licensed insurer and the person to show cause within such time as may be specified in the notice why that person should not be removed.(13) If the licensed insurer and the person referred to in subsection (12) —(a)fails to show cause within the time specified under subsection (12)(b) or within such extended period of time as the Authority may allow; or(b)fails to show sufficient cause,the Authority must give written notice to the insurer of the date on which the direction to remove the chairperson, director or key executive person (as the case may be) is to take effect.(14) Any person who is aggrieved by a direction of the Authority under subsection (10) may, within 30 days after receiving the direction, appeal to the Minister in writing in accordance with Part 3B.(15) Despite the lodging of an appeal under subsection (14), a direction to remove a licensed insurer’s key executive person, chairperson or director under subsection (10) continues to have effect pending the decision of the Minister.(16) Any licensed insurer which contravenes subsection (1), (2), (4), (5) or (9), or fails to comply with any condition imposed by the Authority under subsection (6), shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day or part of a day during which the offence continues after conviction.(17) Any licensed insurer which fails to comply with any direction of the Authority under subsection (10) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000.(18) Nothing in the Co-operative Societies Act 1979 or section 152 of the Companies Act 1967 prevents the Authority from exercising any power under subsection (10).(19) No criminal or civil liability shall be incurred by a licensed insurer, or any person acting on behalf of the insurer, in respect of anything done or omitted to be done with reasonable care and in good faith in the discharge or purported discharge of the obligations of the insurer under this section.(20) In this section, unless the context otherwise requires —“chairperson”, in relation to a licensed insurer, means the chairperson of the board of directors of the insurer;“key executive person” means a person holding any appointment referred to in subsection (1)(a) to (d) or (3).[31

What's the problem? (required)

Source link (optional)

Open the official source PDF to compare

Describe the problem (and edit the text or pick an issue type) to submit.

Suggestions are submitted anonymously — no account or personal information is required or sent.