21

WEDNESDAY, NOVEMBER 13, 1991

INSURANCE AND DOCUMENTS

26(3), THE "UNDER SECTION 34, AS READ WITH SECTION AUTHORITY MAY EXERCISE HIS POWER TO OBTAIN INFORMATION ON THE GROUND THAT HE CONSIDERS IT TO BE IN THE GENERAL POLICY HOLDERS TO DO SO," THE SECRETARY SAID.

HOWEVER, HE SAID OTHER POWERS OF

INTERESTS

OF

INTERVENTION UNDER SECTIONS

27 TO 33 AND 35 COULD ONLY BE EXERCISED ON MORE RESTRICTIVE GROUNDS.

FOR

ON GROUNDS

THAT THE

HAD INSURER

FURNISHED EXAMPLE,

AUTHORITY; OR THAT IT WAS MISLEADING INFORMATION TO THE INSURANCE

RISK THAT DESIRABLE FOR THE PROTECTION OF POLICY HOLDERS AGAINST THE AN INSURER MIGHT BE UNABLE TO MEET ITS LIABILITIES.

HIS EXERCISE

THAT THE POWERS

MR NENDICK SAID THESE MORE RESTRICTIVE GROUNDS MEANT

INTERVENTIONARY INSURANCE AUTHORITY COULD ONLY REACTIVELY.

SAID. "EXPERIENCE THE INSURANCE AUTHORITY TO BE THE LESS EFFECTIVE HIS SUPERVISION

"WE CONSIDER THIS TO BE UNSATISFACTORY," HE HAS PROVED THAT THE LONGER IT TAKES ABLE TO REACT TO A BECOMES.

SITUATION,

POLICY HOLDERS, WE PROPOSE "TO PROVIDE BETTER PROTECTION TO

OF POLICY THAT THE GROUNDS FOR INTERVENTION IN THE GENERAL INTERESTS

AS A

IN REGARDED

GROUND ON WHICH POWERS HOLDERS SHOULD ALSO BE SECTION 28 TO 30, 32 TO 33 AND 35 ARE EXERCISABLE.

ABOUT INVESTMENTS, MAINTENANCE ACTUARIAL INVESTIGATIONS,

ΤΟ AND POWER

"THESE RELATE TO REQUIREMENTS OF ASSETS IN HONG KONG, CUSTODY OF ASSETS, EARLY

INFORMATION SUBMISSION OF FINANCIAL REQUIREMENTS FOR PROTECTING THE POLICY HOLDERS.

IMPOSE

THE POWERS NEW

HE SAID THE ADMINISTRATION, HOWEVER, PROPOSED THAT SET OUT IN SECTIONS 27 AND 31 RELATING TO RESTRICTIONS IN WRITING

BE AFFECTED BY THE BUSINESS AND LIMITING PREMIUM INCOME SHOULD NOT NEW PROVISION.

"WE CONSIDER THAT THEY SHOULD REMAIN TO BE VERY LIMITED CIRCUMSTANCES, MR NENDICK SAID.

"

THE BILL ALSO AIMED TO REMOVE

REDUNDANT

EXERCISED ONLY IN

EXEMPTION PROVISIONS

FOR UNITED KINGDOM INSURERS.

AT PRESENT, MR NENDICK SAID, UK

INSURERS

WERE

FROM

EXEMPTED SECTION 8 AND THE IN THE THIRD

COMPLYING WITH THE AUTHORISATION REQUIREMENTS IN REQUIREMENT, TO SUBMIT FINANCIAL INFORMATION PRESCRIBED SCHEDULE.

TO THE INSURANCE

"THE ORDINANCE ONLY REQUIRES THEM TO SUBMIT AUTHORITY THE RETURNS WHICH THEY SUBMIT TO THE DEPARTMENT OF TRADE AND INDUSTRY IN THE UNITED KINGDOM," HE SAID.

AMENDMENT HOWEVER, THE SECRETARY POINTED OUT THAT FOLLOWING AN

THE INSURANCE

HAD AUTHORITY TO SECTION 8 OF THE ORDINANCE IN 1987,

то AUTHORISE AN INSURER, BEEN GIVEN DISCRETIONARY POWER TO REFUSE

COMPLIED WITH INCLUDING AN UK INSURER, EVEN THOUGH THE APPLICANT HAD THE GENERAL AUTHORISATION REQUIREMENTS UNDER SECTION 8.

/"SINCE THEN

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