XN000022-1991-11-01 — Page 8

THE

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FRIDAY, NOVEMBER 1, 1991

INSURANCE COMPANIES (AMENDMENT) BILL 1991 GAZETTED

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TO

INSURANCE COMPANIES (AMENDMENT) BILL 1991, WHICH SEEKS INCORPORATE AMENDMENTS IN FOUR AREAS TO THE INSURANCE COMPANIES ORDINANCE, IS GAZETTED TODAY (FRIDAY).

THE FIRST AMENDMENT SEEKS TO SIMPLIFY THE EXISTING ARRANGEMENTS FOR THE PAYMENTS OF FEES.

AN

SECTION 13 (1) OF THE ORDINANCE SETS OUT THE FEE TO BE PAID BY INSURER WHILE SECTION 59 (B) OF THE SAME ORDINANCE GOVERNOR IN COUNCIL TO AMEND THE LEVEL OF FEES IN THE MAKING REGULATIONS.

EMPOWERS THE ORDINANCE BY

"THIS IS AN INDIRECT AND CUMBERSOME WAYS OF AMENDING THE LEVEL OF FEE, A GOVERNMENT SPOKESMAN SAID.

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"CLAUSE 2 OF THE BILL AMENDS THE ORDINANCE AND REMOVE THE REFERENCES ΤΟ THE LEVEL OF FEES TO SUBSIDIARY LEGISLATION, THE

SPOKESMAN SAID:

THE SECOND AMENDMENT RELATES TO THE REQUIREMENTS OF DOCUMENTS DEPOSITED WITH THE REGISTRAR OF COMPANIES.

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'AN INSURER IS REQUIRED UNDER SECTION 17 OF THE ORDINANCE TO SUBMIT TO THE INSURANCE AUTHORITY (1A) ACCOUNTS, STATEMENTS AND OTHER INFORMATION PRESCRIBED IN THE THIRD SCHEDULE TO THE ORDINANCE," THE SPOKESMAN SAID.

"A COPY OF THE DOCUMENT SUBMITTED TO THE IA SHALL BE DEPOSITED WITH THE REGISTRAR OF COMPANIES WHICH WOULD THEN BE AVAILABLE FOR PUBLIC INSPECTION, HE SAID.

TT

FOLLOWING AN AMENDMENT TO THE THIRD SCHEDULE TO THE ORDINANCE IN DECEMBER 1990, GENERAL INSURERS ARE NOW REQUIRED TO SUBMIT TO THE IA AN ANNUAL RETURN ON THEIR HONG KONG BUSINESS.

"THE RETURN HOWEVER CONTAINS TRADE SENSITIVE FIGURES AND SHOULD NOT BE MADE AVAILABLE TO THE PUBLIC, THE SPOKESMAN SAID.

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"CLAUSE 4 OF THE BILL THEREFORE REMOVES THE REQUIREMENT FOR AUTHORISED INSURERS TO DEPOSIT WITH THE REGISTRAR OF COMPANIES A COPY OF THE DOCUMENT CONTAINING FINANCIAL INFORMATION ON THEIR HONG GENERAL BUSINESS," THE SPOKESMAN SAID.

KONG

THE THIRD AMENDMENT WILL ENABLE THE IA TO EXERCISE THE INTERVENTIONARY POWERS ON THE GROUNDS THAT IT IS DESIRABLE TO DO SO IN THE INTEREST OF THE POLICY HOLDERS.

THE INTERVENTIONARY POWERS AVAILABLE TO THE IA ARE AT PRESENT EXERCISABLE ON DIFFERENT GROUNDS.

/"WHILE THE