XN000022-1989-02-22 — Page 4

WEDNESDAY, FEBRUARY 22, 1989

2

"ON BALANCE WE CONSIDER THAT THE NEW REQUIREMENTS INTO EFFECT ON JANUARY 1, 1991 FOR EXISTING AUTHORISED JACOBS SAID.

SHOULD COMB INSURERS, MR

ENACTMENT

OF

THE

"NEVERTHELESS, FOR INSURERS AUTHORISED AFTER THE THIS BILL, THE NEW REQUIREMENTS WILL TAKE IMMEDIATE EFFECT.

MR JACOBS

THAT

OF OUT

UNDER SECTION 18 (1)

BUSINESS WAS ORDINANCE, AN INSURER AUTHORISED TO CARRY ON LONG TERM

BE MADE INTO THE CAUSE AN ACTUARIAL INVESTIGATION TO REQUIRED TO FINANCIAL CONDITION OF THE LONG TERM FUND ONCE EVERY TWO YEARS.

POINTED

THE INSURER CONCERNED WAS ALSO REQUIRED TO SUBMIT OF THE ACTUARY'S REPORT TO THE INSURANCE AUTHORITY.

"CLAUSE 4 SEEKS TO

INCREASE

AN ABSTRACT

THE FREQUENCY OF

WHICH MONTHS,

IS IN INVESTIGATIONS TO AT LEAST ONCE EVERY 12

NECESSARY WITH THE UNITED KINGDOM LEGISLATION AND IS REGARDED AS THE PURPOSES OF PRUDENTIAL SUPERVISION," MR JACOBS SAID.

SUCH LINE FOR

OF INTERVENTION, HR AS REGARDS GROUNDS FOR EXERCISING POWERS

AND 34(2) OF THE ORDINANCE, THE NOTED THAT UNDER SECTIONS 34(1)

AN INSURER TO INSURANCE AUTHORITY MIGHT REQUIRE

PROVIDE SPECIFIED INFORMATION AND TO PRODUCE SPECIFIED DOCUMENTS FOR INSPECTION.

A

BOTH POWERS MIGHT ONLY BE EXERCISED UPON THE SERIOUS GROUNDS SET OUT IN SECTION 26(1) WHICH INCLUDED

SUSPECTED BREACH OF THE ORDINANCE AND THE FAILURE TO MEET OBLIGATIONS UNDER THE ORDINANCE.

OF A

AND

IN AID LIGHTLY

OFTEN SIMPLE REQUEST FOR ADDITIONAL

THESE GROUNDS COULD NOT BE CALLED COULD NOT BE USED IN RESPECT INFORMATION, HE SAID.

"BY CONTRAST, THE WIDER POWER OF INSPECTION UNDER SECTION 34(2) GROUNDS UNDER SECTION MAY ALSO BE EXERCISED ON THE LESS STRINGENT

IS DESIRABLE IN THE 26(3) NAMELY, THAT THE EXERCISE OF SUCH POWER

OF EXISTING AND POTENTIAL POLICY GENERAL INTERESTS

MR

JACOBS SAID.

HOLDERS,

"THERE IS NO GOOD REASON FOR THIS DIFFERENCE OF TREATMENT.

TO

TO REMOVE THE ANOMALY AND TO ENABLE THE INSURANCE AUTHORITY

5 CLAUSE

PROPOSED THAT THE CARRY OUT HIS DUTIES MORE EFFECTIVELY, SPECIFIC GROUND IN SECTION 26(3) SHOULD ALSO APPLY TO THE POWER SECTION 34(1),

UNDER

"THIS NEW RESERVE POWER WILL BE USED JACOBS POINTED OUT.

ONLY SPARINGLY,

MR

"I BELIEVE THE INSURANCE AUTHORITY WILL IN THE

AT PRESENT, то

UPON OF CASES BE ABLE, AS

RELY CO-OPERATION OF THE INSURERS.

THE

VAST MAJORITY GOODWILL AND

||

DEBATE ON THE BILL WAS ADJOURNED.

13