XN000022-1989-04-17 — Page 8

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MONDAY, APRIL 17, 1989

AJ

THE SOLVENCY MARGIN

BUSINESS INSURERS WAS INCREASED;

REQUIREMENTS

APPLICABLE ΤΟ GENERAL

B)

THE FREQUENCY OF ACTUARIAL VALUATIONS INSURERS WAS SHORTENED FROM TWO YEARS TO 12 MONTHS; AND

OF

LONG TERM BUSINESS

CI

THE "FIT AND PROPER PERSON" PROVISIONS TIGHTENED BY WIDENING THE

OF THE ORDINANCE WAS DEFINITION OF INSURANCE COMPANY TO INCLUDE ANY

"CONTROLLER" OF AN PERSON (PREVIOUSLY ONE-THIRD OR MORE OF THE INSURER'S VOTING POWER.

HAVING 15 PER CENT

THE NEW MINIMUM SOLVENCY MARGIN BUSINESS INSURERS IS $5 MILLION I PREVIOUSLY

SUCH AS

REQUIREMENT FOR GENERAL 32 MILLION), AND $10 ON COMPULSORY MOTOR VEHICLES THIRD PARTY

MILLION (PREVIOUSLY $4 MILLION) FOR COMPANIES CARRYING CLASSES OF INSURANCE BUSINESS RISKS AND EMPLOYEES' COMPENSATION.

ANOTHER CHANGE IN THE LAW THAT HAD TAKEN PLACE DURING THE WAS THE INSURANCE COMPANIES

YEAR { AMENDMENT) ENACTED IN JUNE 1988. THIS AMENDMENT

ORDINANCE NO.34 OF 1988, AUTHORITY MORE FLEXIBILITY IN: -

ORDINANCE GIVES THE INSURANCE

A)

MAINTAINING OR REVOKING INSURERS;

CONDITIONS FOR

AUTHORISATION

OF

B)

WITHDRAWING THE AUTHORISATION OF ANY INSURANCE BUSINESS OR ANY PART THEREOF; AND

DORMANT CLASS

OF

C)

PRESERVING SECRECY WITH REGARD TO INFORMATION RELATING AFFAIRS OF INSURERS.

MR GLEESON SAID SIGNIFICANT PROGRESS THE YEAR ON THE FIRST STAGE OF SELF-REGULATION,

то THE

HAD BEEN MADE DURING

BE OPERATED BY EXISTING LEGISLATION STATUS AND IMAGE

THIS WAS A SELF-REGULATORY SYSTEM WHICH WOULD THE INSURANCE INDUSTRY. IT WOULD COMPLEMENT THE IN REGULATING THE INSURANCE MARKET AND ENHANCE THE OF THE HONG KONG INSURANCE INDUSTRY.

THE INSURANCE INDUSTRY SELF-REGULATION WORKING FORWARD TO HIM CERTAIN PROPOSALS IN THE

GROUP HAD PUT LAW AND THE PRACTICES OF INSURANCE COMPANIES IN THAT CONNECTION.

OF INSURANCE CONTRACT

AREA

THESE INCLUDED THE ADOPTION OF A PROFESSIONAL CODE BY INSURERS, A MORE EQUITABLE INTERPRETATION

OF CONDUCT AND A MECHANISM FOR COMPLAINTS BY DISSATISFIED POLICY

OF INSURANCE CONTRACTS CONSIDERED BY AN INDEPENDENT BODY.

HOLDERS ΤΟ BE

PROPOSALS WOULD BE

HE EXPECTED THAT FINAL DETAILS OF THESE AGREED IN THE NEAR FUTURE AT WHICH TIME THEY WOULD BE MADE PUBLIC.

THE SECOND STAGE OF SELF-REGULATION CONCERNED THAT IS BROKERS AND AGENTS, AND HE HOPED THAT GOOD PROGRESS MADE ON THIS AS SOON AS FINAL

WAS REACHED

INTERMEDIARIES,

WOULD

BE

AGREEMENT

ON THE FIRST

STAGE.

T

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