Singapore Insurance Law & MAS Regulations Flashcards

What regulatory action can MAS take against an insurer that repeatedly violates regulations?

Answer: Impose financial penalties, restrict business activities, or revoke the insurer's licence

MAS has a range of regulatory powers including imposing financial penalties, restricting or prohibiting certain business activities, and ultimately revoking an insurer's licence for serious or repeated violations.

What is the purpose of the annual financial condition report (FCR) that Singapore insurers must produce?

Answer: An independent actuarial assessment of the insurer's financial condition, reserve adequacy, and risk profile submitted to MAS

The Financial Condition Report is an independent assessment by the appointed actuary of the insurer's overall financial condition, including reserve adequacy, risk profile, and capital position, submitted to MAS annually.

What is MAS's 'balanced scorecard framework' for insurance intermediaries designed to achieve?

Answer: Ensuring remuneration structures do not create conflicts of interest that harm customers

The balanced scorecard framework ensures that insurance intermediaries' remuneration is linked not just to sales volume but also to quality of advice, customer outcomes, and compliance — reducing conflicts of interest.

What must an insurer disclose to policyholders under MAS Notice 318 for general insurance?

Answer: Key features, exclusions, claims procedures, and cooling-off rights to enable informed decisions

MAS Notice 318 requires general insurers to disclose key product features, important exclusions, claims procedures, and where applicable, cooling-off rights to ensure policyholders can make informed decisions about their coverage.

What is the significance of MAS's Individual Accountability and Conduct (IAC) standards for insurers?

Answer: Senior managers and board members bear primary responsibility for their institution's conduct and must be individually accountable for their responsibilities

Under MAS's IAC standards, senior managers and board directors bear primary individual responsibility for ensuring their areas of the business are conducted with integrity and in compliance with regulations — promoting a top-down accountability culture.

Under the MAS regulatory framework, what is the 'fit and proper' criteria applied to?

Answer: To directors, CEOs, and key officers of licensed insurers ensuring they have competence and integrity

MAS's 'fit and proper' criteria apply to directors, Chief Executive Officers, and other key management personnel of licensed insurers, ensuring they have the appropriate competence, integrity, and financial soundness to hold their positions.