1955-HKRS29-8-22_Part03 — Page 1

Addition

of new

gection

21A.

24

(9) In this section-

"life insurance business" includes annuity business; "life insurance fund" includes annuity fund; "premiums from life insurance business in the Colony"

includes-

(4) all premiums received or receivable in the Colony from both residents and non-residents; and

(b) all premiums receivable outside the Colony from residents of the Colony where such premiums are in respect of policies the proposals for which were received by the corporation in the Colony:

Provided that any such premiums returned to the insured and any corresponding premiums paid on reinsurance shall be deducted from the premiums so received or receivable,"

33. The principal Ordinance is amended by the addition after section 23 of the following new section-

"Ascertain- meat of assessable profits of insurance companies other than

life insurance

23A. (1) The assessable profits of a corporation, whether mutual or proprietury, from the business of insurance other than life insurance, shall be ascertained by taking the gross premiums from such insurance business in the Colony less any such premiums returned to the insured and any premiums paid on companies. corresponding reinsurance, and deducting therefrom a reserve for unexpired risks at the percentage adopted by that corporation in relation to its operations as a whole for such risks at the end of the period for which such profits are ascertained, and adding thereto a reserve similarly calculated fur unexpired risks out- standing at the commencement of such period, and from the amount so arrived at deducting the actual losses less the amount recoverable in respect thereof under reinsurance, the agency expenses in the Colony, and a fair proportion of the expenses of the head office of the corporation, due account being taken in each case by set-off against such expenses of any income or profits other than premiums:

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25

Provided that where the Commissioner is satisfied that, by reason of the limited extent of such business transacted in the Colony by a non-resident insurance corporation it would be unreasonable to require such corporation to furnish the particulars necessary for the application of this section, he may permit the assessable profits of the corporation to be ascertained by reference to the proportion of the total profits and income of the corporation corresponding to the proportion which its premiums from insurance business in the Colony bear to its total premiums or on any other basis which appears to him to be equitable.

(2) For the purposes of this section "premiums from insurance business in the Colony" shall include→ (u) all premiums in respect of contracts of insur- ance other than life insurance made in the Colony;

(b) all premiums on contracts of insurance other than life insurance the proposals for which were made to the corporation in the Colony; and

(e) all premiums where the contract of insurance was made in respect of property situated in the Colony or on an event which can only happen in the Colony,"

34. Section 24 of the principal Ordinance is amended-

Amend- ment of

(a) by the deletion from the first and second lines of sub. section 24.

section (0) of the words "body of persons, whether corporate or unincorporate,” and the substitution therefor of the following-

"person"';

(b) by the deletion from the fifth line of subsection (1) of the

words "it shall not be deemed to carry on a business;' and the substitution therefor of the following-

"such person shall be deemed not to carry on a business;"';