Section 10

For the purposes of paragraph fa} of subsection (1) of section 21 of the

Order, the fund margin of solvency of an insurance fund, to be maintained by the insurer at all times during an accounting period, is prescribed as follows -

fa} in the case of an insurance fund established in respect of general business, not less than 20 per cent of net premium income of the fund in the last accounting period;

(b}

in the case of an insurance fund established in respect of life business, not less than 20 per cent of net premium income of the fund in the last accounting period.

For the purposes of paragraph {a} of sub-regulation (1), assets representing the surplus of the assets over the liabilities of any insurer may be counted towards meeting the fund margin of solvency, provided that those assets-fa}

are maintained in Brunei Darussalam, Singapore or Malaysia;

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Separate accounts shall be kept for the assets referred to in sub-regulation (2) and the Authority may direct that the whole or a specified proportion of those assets be held by an approved trustee.

Assets in the separate account may be withdrawn with the approval of the Authority if they are no longer needed to meet the fund solvency margin requirements, but only after a valuation of the assets and liabilities of the fund is carried out.

For the purposes of paragraph (b) of subsection (1) of section 21 of the Order, the margin of solvency to be maintained by an insurer at all times is prescribed as 20 per cent of assets over liabilities.

The assets representing the fund margins of solvency required in sub-regulation (1) may be taken into account in calculating the margins of solvency for the purposes of sub-regulation (5).

Minimum paid-up share capital.