MONDAY, FEBRUARY 5, 1990
PETITIONS FOR WINDING-UP OF INSURANCE COMPANIES
THE REGISTRAR GENERAL, MR NOEL GLEESON, IN HIS CAPACITY AS INSURANCE AUTHORITY, TODAY (MONDAY) PRESENTED PETITIONS TO THE HIGH COURT FOR THE WINDING-UP OF GRAND UNION LIFE ASSURANCE LIMITED LIFE") AND HANG LUNG INSURANCE LIMITED ("HANG LUNG").
("GU
THE DATE OF THE HEARING OF BOTH PETITIONS HAS BEEN FIXED TO MARCH 5, 1990.
THE COURT HAS IN THE MEANTIME APPOINTED THE OFFICIAL TO BE THE PROVISIONAL LIQUIDATOR OF BOTH COMPANIES.
RECEIVER
UNDER THE
GRAND UNION LIFE ASSURANCE LIMITED WAS INCORPORATED COMPANIES ORDINANCE IN OCTOBER 1974 AND IS AUTHORISED UNDER INSURANCE COMPANIES ORDINANCE TO CARRY ON LONG TERM BUSINESS.
THE
THIS COMPANY, WITH ABOUT 8,000 LIFE POLICIES, WAS A RELATIVELY SMALL ONE WHICH OUGHT TO HAVE POLICY RESERVES IN THE REGION OF MILLION.
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MR GLEESON SAID THE ACTION AGAINST "GU LIFE" WAS CONSIDERED DESIRABLE TO PROTECT THE INTERESTS OF THE COMPANY'S POLICY AND POTENTIAL POLICY HOLDERS.
HOLDERS
THAT
OF
THE GROUNDS FOR THE WINDING-UP OF "GU LIFE** WERE MAINLY THE INSURANCE AUTHORITY WAS NOT SATISFIED WITH THE APPROPRIATENESS THE COMPANY'S REINSURANCE ARRANGEMENTS, THAT THE COMPANY HAD FAILED то MEET THE SOLVENCY REQUIREMENTS OF THE INSURANCE ORDINANCE AND THAT IT HAD NOT KEPT PROPER BOOKS OF ACCOUNT.
COMPANIES
THAT
IN VIEW OF THIS MR GLEESON CONSIDERED IT WAS APPROPRIATE THE AFFAIRS OF "GU LIFE" BE PLACED IN THE HANDS OF NEW MANAGEMENT, WHICH, FOR THE TIME BEING, WOULD BE THE PROVISIONAL LIQUIDATOR.
NEW FROM JULY
HANG LUNG, INCORPORATED IN SEPTEMBER 1971, CEASED TO WRITE INSURANCE BUSINESS AND CEASED TO BE AUTHORISED TO DO SO AS 1981.
UNDER
NAME
IT WAS STILL OBLIGED, HOWEVER, TO MEET ITS OBLIGATIONS SOME 1,500 OUTSTANDING LIFE INSURANCE CONTRACTS. IT WAS UNDERSTOOD THIS COMPANY WAS NOT CONNECTED WITH ANY OTHER COMPANY HAVING THE HANG LUNG.
ALSO
THE
MR GLEESON SAID THE ACTION AGAINST HANG LUNG WAS CONSIDERED DESIRABLE IN THE INTERESTS OF THE POLICY HOLDERS. PARTICULARLY SINCE 'GU LIFE" WAS KNOWN то HAVE BEEN MANAGING RUN-OFF OF HANG LUNG'S INSURANCE BUSINESS.
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