This Notice is issued pursuant to section 64(2) of the Insurance Act (Cap. 142) ['the Act']. This Notice applies to :
(a) Insurers;
(b) registered insurance brokers;
(c) exempt insurance brokers;
(d) licensed financial advisers; and
(e) exempt financial advisers
which carry on any business in relation to health insurance products and
(i) persons employed by or who act as agents for an insurer;
(ii) persons employed by or who act for registered insurance brokers or exempt insurance brokers; and
(iii) persons employed by or who act as representatives for licensed financial advisers or exempt financial advisers
who provide advice on, and/or arrange, contracts of insurance in respect of health insurance products.
2 The Authority recognises the importance of the sale of insurance products appropriate to the needs of policyowners. In light of this, the Authority has always considered the training and competency requirements of intermediaries and practitioners an important focus of attention.
3 This Notice concerns the health insurance module which is conducted by the Singapore College of Insurance (SCI) and individuals who are involved in providing advice on, and/or arranging contracts of insurance in respect of, health insurance products.
Definition
4 For the purposes of this Notice-
'agent' means a person who is or has been carrying on insurance business in Singapore as an agent for one or more insurers and includes an agent of a foreign insurer carrying on insurance business in Singapore under a foreign insurer scheme under Part IIA of the Act;
'exempt financial adviser' means a person exempt from holding a financial adviser's licence under section 23(1)(a) to (e) of the Financial Advisers Act 2001;
'exempt insurance broker' means a person exempt from registration as an insurance broker under section 35ZN of the Act;
'licensed financial adviser' means a holder of a financial adviser?s licence under the Financial Advisers Act 2001;
'health insurance product' includes any insurance product that provides any or all of the following benefits -
(a) reimbursement of medical expenses;
(b) income or monies during disability;
(c) monies to defray the cost of long-term care;
(d) monies on the occurrence of critical illness,
and may exist as -
(i) a standalone health insurance contract; or
(ii) a supplementary benefit to some other insurance contract,
but excludes any contract of reinsurance;
'insurer' means an insurer which is for the time being registered by the Authority under the Act;
'registered insurance broker' means a person who is for the time being registered under section 35X;
'representative', in relation to a licensed financial adviser or exempt financial adviser, has the same meaning as in the Financial Advisers Act 2001 (Act 42 of 2001);
Requirement to Pass the Health Insurance Module
5 With effect from 1 January 2003, any individual -
(a) who is ?
(i) employed by or who acts as an agent for an insurer;
(ii) employed by or who acts for an registered insurance broker or an exempt insurance broker; or
(iii) employed by or who acts as a representative for a licensed financial adviser or exempt financial adviser;
and
(b) who wishes to provide advice on, and/or arrange, contracts of insurance in respect of health insurance products
must pass the health insurance module before he commence such activities.
6 With effect from 1 January 2003, insurers, registered insurance brokers, exempt insurance brokers, licensed financial advisers, and exempt financial advisers shall ensure that any individual they employ or, where applicable, who acts as their agent or representative complies with the requirement in paragraph 5.
Exclusion
7 Individuals -
(a) who are, prior to 1 January 2002, -
(i) employed by or who act as agents for insurers; or
(ii) employed by or who act for registered insurance brokers or exempt insurance brokers;
and
(b) who had been providing advice on, and/or arranging, contracts of insurance in respect of health insurance products that contain only critical illness benefits
are not required to comply with the requirement in paragraph 5 if they have completed a non-examinable course on critical illness insurance conducted by SCI or an approved in-house course covering SCI's syllabus on critical illness insurance by 1 July 2002.
8 Individuals -
(a) who are ?
(i) employed by or who act as agents for insurers;
(ii) employed by or who act for registered insurance brokers or exempt insurance brokers; or
(iii) employed by or who act as representatives for licensed financial advisers or exempt financial advisers;
and
(b) who provide advice on, and/or arrange, contracts of insurance in respect of health insurance products that contain only critical illness benefits and/or hospital income benefits
are not required to comply with the requirement in paragraph 5 if they have obtained passes in any one of the following modules:
(1) Certificate in General Insurance - Basic Insurance Concepts & Principles and Personal General Insurance;
(2) Capital Markets & Financial Advisory Services Module 9: Life Insurance and Investment-Linked Policies.
Additional Requirements
9 Insurers shall not accept any business in respect of any health insurance product from any individual whom they employ or who acts as their agent and who has not complied with the requirement in paragraph 5 and does not fall within paragraph 7 or 8 of this Notice.
10 Registered Insurance brokers, exempt insurance brokers, licensed financial advisers, and exempt financial advisers shall not pass on any business in respect of any health insurance product to insurers if they are received from any individual whom they employ or, where applicable, who acts as their representatives and who has not complied with the requirement in paragraph 5 and does not fall within paragraph 7 or 8 of this Notice.
Contravention of Requirements Imposed
11 Contravention of any requirement imposed under this Notice is an offence and attracts the penalty specified in section 55(2) of the Insurance Act.
