THURSDAY, MAY 6, 1993
INSURANCE COMPANIES (AMENDMENT) BILL 1993 TO BE GAZETTED TOMORROW
* * * *
THE
GOVERNMENT IS PROPOSING LEGISLATIVE AMENDMENTS AREAS
GOVERNMENT THE INSURANCE COMPANIES ORDINANCE, A IN SAID TODAY (THURSDAY).
ΤΟ THREE SPOKESMAN
THE INSURANCE COMPANIES (AMENDMENT) BILL 1993 TO BE GAZETTED TOMORROW (FRIDAY) SEEKS TO DELEGATE TO THE INSURANCE AUTHORITY CERTAIN
PRESENTLY
GOVERNOR MINOR POWERS
EXERCISED BY THE
IN COUNCIL, TO REQUIRE INSURERS TO GIVE NOTIFICATION OF CESSATION OF PLACE OF OR SIMILAR BUSINESS IN HONG KONG, OR OF COMMENCEMENT OF LIQUIDATION PROCEEDINGS, AND TO PROVIDE FOR ENHANCED LEVELS OF SOLVENCY MARGIN FOR LONG-TERM INSURERS.
POWERS EXPLAINING THE BACKGROUND TO THE PROPOSED DELEGATION OF TO THE INSURANCE AUTHORITY, THE SPOKESMAN SAID SECTION (8)(1)(C) OF AN ASSOCIATION OF THE INSURANCE COMPANIES ORDINANCE PROVIDES THAT UNDERWRITERS INTENDING TO CARRY ON ANY CLASS OF INSURANCE BUSINESS
LLOYD'S, OF OR FROM HONG KONG, WITH THE ONLY EXCEPTION APPROVED ONLY BY THE GOVERNOR IN COUNCIL.
IN
MIGHT
BE
SECTION
8 OF THE
ORDINANCE SETS OUT
CRITERIA THE
FOR
AUTHORISATION OF INSURERS TO CONDUCT INSURANCE BUSINESSES IN HONG KONG BY THE INSURANCE AUTHORITY.
"THE CRITERIA WHEREBY THE AUTHORITY MAY AUTHORISE A COMPANY
INSURANCE CARRY ON
BUSINESS WOULD APPLY TO AN ASSOCIATION
"THE SPOKESMAN SAID. UNDERWRITERS NO LESS THAN TO A COMPANY,
L
'AS
REQUIRED
TO
OF
FOR AUTHORISATION LEVEL OF RESPONSIBILITY THE UNDER THESE TWO SECTIONS IS COMPARABLE, IT IS PROPOSED THAT THE POWER TO THE INSURANCE TO APPROVE
SECTION 6 WOULD BE TRANSFERRED UNDER AUTHORITY BY CLAUSE 3 OF THE BILL, HE SAID.
"I
SECTION 19(1) OF THE ORDINANCE EMPOWERS THE GOVERNOR IN COUNCIL ΤΟ PRESCRIBE CERTAIN AGREEMENTS OR ARRANGEMENTS AS UNDESIRABLE AND REQUIRE SPECIFIC INFORMATION
INTO STICH FROM AN INSURER ENTERING "PRESCRIBED" AGREEMENTS OR ARRANGEMENTS WITHIN SUCH PERIOD AS HE MAY PRESCRIBE.
OF
THE
IN
8
OF
"AS SUCH DUTIES ALSO FALL WELL WITHIN THE COMPETENCE AUTHORITY, WE HAVE PROPOSED THAT THE GOVERNOR IN COUNCIL'S POWERS SECTION 19 BE TRANSFERRED TO THE INSURANCE AUTHORITY BY CLAUSE THE BILL, THE SPOKESMAN SAID.
ON
"
AND
OF
AN
THE
IN
THE NOTIFICATION OF CESSATION OF PLACE OF BUSINESS LIQUIDATION OR SIMILAR PROCEEDINGS, THE SPOKESMAN SAID AT PRESENT INSURER INCORPORATED OUTSIDE HONG KONG IS NOT REQUIRED TO NOTIFY INSURANCE AUTHORITY WHEN IT EITHER CLOSES ITS PLACE OF BUSINESS HONG KONG OR BECOMES SUBJECT TO LIQUIDATION OR SIMILAR PROCEEDINGS.
COMPANIES NOTIFIED
"ALTHOUGH SUCH RETURNS ARE REQUIRED UNDER THE ORDINANCE, THE PRESENT ARRANGEMENTS WHEREBY THE AUTHORITY IS OF THESE EVENTS THROUGH THE COMPANIES REGISTRY ARE INADEQUATE TO ALLOW THE AUTHORITY TO TAKE TIMELY ACTION IN RESPECT OF AILING INSURERS, SAID.
I HE
/"CLAUSE 17