8

MONDAY, OCTOBER 17, 1988

THE

GROUP, WORKING

WHILE

HE POINTED OUT THAT SUPPORT TO THE LAW REFORM COMMISSION'S RECOMMENDATION ON

HOWEVER RECOMMENDED OF INTERMEDIARIES,

MECHANISMS

THE

GIVING

BROAD

OF

A

THE CONTROL ADOPTION OF CODES BY INSURANCE COMPANIES AS

THE FIELD OF INSURANCE

PRACTICE PLUS ENFORCEMENT BETTER MEANS OF PROTECTING THE CONSUMERS IN CONTRACT LAW.

ARE IN GOVERNMENT

DO NOT WANT

WELL

TO

OF

AWARE

THE STIFLE ENTERPRISE

"WE OVER-REGULATION. WE INTERFERE IN THE FREE PLAY OF MARKET FORCES.

WANT NOT

A

"WE CERTAINLY DO

TO CREATE REGULATORY AGENCY WHICH WOULD ADD TO THE BURDEN UPON STRESSED.

OF DANGERS

OR UNDULY

COSTLY

LARGE AND

TAX-PAYERS," HE

MR NENDICK

PROVIDE ADEQUATE

THAT SAID PROTECTION

THE

GOVERNMENT

ALSO

THE CONSUMER FOR

HAD A AND TO

DUTY ENSURE

ΤΟ THE

INTEGRITY OF THE MARKET.

"OUR

IS

TO CREATE

AIM

THE CONDITIONS DEVELOPMENT OF THE INSURANCE MARKET IN HONG KONG.

FOR

THE

HEALTHY

"WE THUS WELCOME THE WORKING GROUP'S RECOMMENDATION AS IN THE RIGHT DIRECTION," HE SAID.

"THE APPROACH WE FAVOUR THEN

A STEP

LEVELS

IS FOR SELF-IMPOSED RULES FOR OF CONDUCT TO BE BACKED BY NECESSARY MINIMUM ACCEPTABLE

HE SAID. LEGISLATION LAYING DOWN BASIC REQUIREMENTS,

INCLUDE PROVISIONS IT IS ENVISAGED THAT THE LEGISLATION WOULD FOR THE LICENSING OF INDEPENDENT INTERMEDIARIES; MINIMUM STANDARDS OF

AND CONDUCT FOR EXPERIENCE

INDEPENDENT FINANCIAL RESOURCES,

OF SELF-REGULATING MARKET INTERMEDIARIES; AND STATUTORY RECOGNITION

MEMBERSHIP MEET THESE MINIMUM ASSOCIATIONS WHOSE REQUIREMENTS FOR

WOULD AUTOMATICALLY CONFER LICENSED STANDARDS AND WHERE MEMBERSHIP STATUS.

ROLE OF THOUGHT ΤΟ THE

HE SAID THE LEGISLATION WOULD ALSO NEED TO DEFINE THE AGENTS AND THE GOVERNMENT WOULD NEED TO GIVE CAREFUL PROPER RELATIONSHIP BETWEEN INSURER AND AGENT.

SEEK TO EXTEND THE

"IN OUR VIEW, THE LEGISLATION SHOULD NOT INSURER'S LIABILITY BEYOND THE EXISTING LAW OF AGENCY.

THE VOLUNTARY CODES OF

BODIES OF INSURERS,

"ANY EXTENSION SHOULD BE GOVERNED BY PRACTICE TO BE DEVELOPED BY THE REPRESENTATIVE MR NENDICK ADDED.

/HE SAID

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