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MONDAY, APRIL 17, 1989
AJ
THE SOLVENCY MARGIN
BUSINESS INSURERS WAS INCREASED;
REQUIREMENTS
APPLICABLE ΤΟ GENERAL
B)
THE FREQUENCY OF ACTUARIAL VALUATIONS INSURERS WAS SHORTENED FROM TWO YEARS TO 12 MONTHS; AND
OF
LONG TERM BUSINESS
CI
THE "FIT AND PROPER PERSON" PROVISIONS TIGHTENED BY WIDENING THE
OF THE ORDINANCE WAS DEFINITION OF INSURANCE COMPANY TO INCLUDE ANY
"CONTROLLER" OF AN PERSON (PREVIOUSLY ONE-THIRD OR MORE OF THE INSURER'S VOTING POWER.
HAVING 15 PER CENT
THE NEW MINIMUM SOLVENCY MARGIN BUSINESS INSURERS IS $5 MILLION I PREVIOUSLY
SUCH AS
REQUIREMENT FOR GENERAL 32 MILLION), AND $10 ON COMPULSORY MOTOR VEHICLES THIRD PARTY
MILLION (PREVIOUSLY $4 MILLION) FOR COMPANIES CARRYING CLASSES OF INSURANCE BUSINESS RISKS AND EMPLOYEES' COMPENSATION.
ANOTHER CHANGE IN THE LAW THAT HAD TAKEN PLACE DURING THE WAS THE INSURANCE COMPANIES
YEAR { AMENDMENT) ENACTED IN JUNE 1988. THIS AMENDMENT
ORDINANCE NO.34 OF 1988, AUTHORITY MORE FLEXIBILITY IN: -
ORDINANCE GIVES THE INSURANCE
A)
MAINTAINING OR REVOKING INSURERS;
CONDITIONS FOR
AUTHORISATION
OF
B)
WITHDRAWING THE AUTHORISATION OF ANY INSURANCE BUSINESS OR ANY PART THEREOF; AND
DORMANT CLASS
OF
C)
PRESERVING SECRECY WITH REGARD TO INFORMATION RELATING AFFAIRS OF INSURERS.
MR GLEESON SAID SIGNIFICANT PROGRESS THE YEAR ON THE FIRST STAGE OF SELF-REGULATION,
то THE
HAD BEEN MADE DURING
BE OPERATED BY EXISTING LEGISLATION STATUS AND IMAGE
THIS WAS A SELF-REGULATORY SYSTEM WHICH WOULD THE INSURANCE INDUSTRY. IT WOULD COMPLEMENT THE IN REGULATING THE INSURANCE MARKET AND ENHANCE THE OF THE HONG KONG INSURANCE INDUSTRY.
THE INSURANCE INDUSTRY SELF-REGULATION WORKING FORWARD TO HIM CERTAIN PROPOSALS IN THE
GROUP HAD PUT LAW AND THE PRACTICES OF INSURANCE COMPANIES IN THAT CONNECTION.
OF INSURANCE CONTRACT
AREA
THESE INCLUDED THE ADOPTION OF A PROFESSIONAL CODE BY INSURERS, A MORE EQUITABLE INTERPRETATION
OF CONDUCT AND A MECHANISM FOR COMPLAINTS BY DISSATISFIED POLICY
OF INSURANCE CONTRACTS CONSIDERED BY AN INDEPENDENT BODY.
HOLDERS ΤΟ BE
PROPOSALS WOULD BE
HE EXPECTED THAT FINAL DETAILS OF THESE AGREED IN THE NEAR FUTURE AT WHICH TIME THEY WOULD BE MADE PUBLIC.
THE SECOND STAGE OF SELF-REGULATION CONCERNED THAT IS BROKERS AND AGENTS, AND HE HOPED THAT GOOD PROGRESS MADE ON THIS AS SOON AS FINAL
WAS REACHED
INTERMEDIARIES,
WOULD
BE
AGREEMENT
ON THE FIRST
STAGE.
T
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