XN000022-1988-03-31 — Page 8

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THURSDAY, MARCH 31, 1988

ON THE CIRCUMSTANCES UNDER WHICH INFORMATION COULD BE DISCLOSED, THE SPOKESMAN SAID IT WAS PROPOSED THAT INFORMATION COULD BE GENERALLY MADE PUBLIC WHEN THIS INFORMATION TOOK THE FORM OF A SUMMARY OF DATA, FOR EXAMPLE, FOR STATISTICAL PURPOSES, BUT SUBJECT TO THE PARTICULARS OF ANY INDIVIDUAL INSURER NOT BEING DISCLOSED.

OTHERWISE, HE ADDED, INFORMATION COULD ONLY BE DISCLOSED IN CERTAIN COURT PROCEEDINGS AND TO SPECIFIED OFFICIALS.

THE SPOKESMAN SAID THE OFFICIALS TO WHICH INFORMATION COULD BE DISCLOSED WOULD BE CONFINED TO THE FINANCIAL SECRETARY, SECRETARY FOR MONETARY AFFAIRS, OTHER AUTHORISED PUBLIC OFFICERS, AND CERTAIN OVERSEAS SUPERVISORY AUTHORITIES.

"WHERE INFORMATION 19 DISCLOSED ΤΟ PUBLIC OFFICIALS AND OVERSEAS BODIES, THE INSURANCE AUTHORITY MUST BE SATISFIED THAT IT 19 IN THE INTERESTS OF EXISTING OR POTENTIAL POLICY HOLDERS THAT INFORMATION SHOULD BE DISCLOSED, HE SAID.

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THE SPOKESMAN SAID THE BILL ALSO CONTAINED PROVISIONS TO AMEND SECTION 12(1) OF THE INSURANCE COMPANIES ORDINANCE.

UNDER THE PRESENT LEGISLATION, KE SAID, THE INSURANCE AUTHORITY IN AUTHORISING A COMPANY TO CARRY ON ANY CLASS OF BUSINESS COULD IMPOSE CERTAIN CONDITIONS ON THE INSURER AND SECTION 12(1) PROVIDED THAT SUCH CONDITIONS WOULD AUTOMATICALLY CEASE TO HAVE EFFECT FIVE YEARS AFTER THE AUTHORISATION.

THE INSURANCE AUTHORITY DOES AT TIMES, FOR THE BETTER PROTEC"!ION OF POLICY HOLDERS, IMPOSE CONDITIONS WHICH ARE OF A CONTINUING NATURE AND THE PROPOSED AMENDMENT WILL GIVE THE INSURANCE AUTHORITY DISCRETION AS TO WHEN THE CONDITIONS IMPOSED SHOULD BE REVOKED.

"THIS WILL ALLOW A DISTINCTION TO BE DRAWN BETWEEN CONDITIONS IMPOSED FOR AN INITIAL PERIOD AND THOSE INTENDED TO BE OF A CONTINUING NATURE, THE SPOKESMAN SAID.

THE SPOKESMAN SAID ANOTHER PROPOSED AMENDMENT WAS IN RESPECT OF SECTION 40 WHICH EMPOWERED THE INSURANCE AUTHORITY ΤΟ WITHDRAW AUTHORISATION FOR ANY CLASS OF INSURANCE BUSINESS UNDER CERTAIN CONDITIONS.

OF

"THE REFERENCE TO A CLASS

BUSINESS 19 RESTRICTIVE; FOR EXAMPLE, A PARTICULAR CLASS OF BUSINESS MIGHT INCLUDE, AS PART OF THAT CLASS, TYPES OF INSURANCE POLICIES THAT THE INSURED IS REQUIRED BY LAW TO EFFECT," HE SAID.

"THE OPPORTUNITY 19 TAKEN TO AMEND SECTION 40 ΤΟ EMPOWER THE INSURANCE AUTHORITY TO WITHDRAW AUTHORISATION FOR A PART OF A CLASS OF INSURANCE BUSINESS UNDER CERTAIN CIRCUMSTANCES, HE ADDED.

THE INSURANCE