XN000022-1991-11-13 — Page 21

WEDNESDAY, NOVEMBER 13, 1991

20

INSURANCE COMPANIES (AMENDMENT) BILL 1991 INTRODUCED

* * * * * *

WAS

PROVISIONS OF INTRODUCED INTO

A COMPOSITE BILL WHICH SEEKS TO REFINE EXISTING THE INSURANCE COMPANIES ORDINANCE IN FOUR AREAS THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

MR AFFAIRS,

DAVID AND ANNUAL

MOVING THE SECOND READING OF THE INSURANCE COMPANIES (AMENDMENT) BILL 1991, THE SECRETARY FOR MONETARY NENDICK, SAID THE FOUR AREAS WERE: TO ALLOW AUTHORISATION

ΤΟ RELIEVE GENERAL FEES TO BE PRESCRIBED IN SUBSIDIARY LEGISLATION; INSURERS FROM THE REQUIREMENT TO DEPOSIT TRADE SENSITIVE DOCUMENTS WITH THE REGISTRAR OF COMPANIES; TO EXTEND THE GROUNDS UPON WHICH

ACTION; AND TO INSURANCE AUTHORITY MAY TAKE INTERVENTIONARY PREFERENTIAL TREATMENT FOR UNITED KINGDOM INSURERS.

THE REMOVE

ON AUTHORISATION AND ANNUAL FEE, THE SECRETARY NOTED THAT: "SECTION 13(1) OF THE ORDINANCE SETS OUT THE FEE TO BE PAID BY AN INSURER UPON AUTHORISATION AND ANNUALLY THEREAFTER" AND "SECTION 59(B) REGULATIONS TO AMEND PROVIDES THAT THE GOVERNOR IN COUNCIL MAY MAKE SECTION 13 (1)".

"THIS IS AN INDIRECT AND CUMBERSOME WAY OF AMENDING THE LEVEL OF FEES, MR NENDICK SAID.

"WE PROPOSE, THEREFORE, THAT THE ORDINANCE

OF

SHOULD BE AMENDED SO THAT REFERENCES TO THE LEVEL

FEE ARE REMOVED TO SUBSIDIARY LEGISLATION WHILE THE PRINCIPAL LEGISLATION STIPULATES ONLY THE REQUIREMENT FOR THE PAYMENT OF FEES.

REGARDING THE

DEPOSIT

SAID

TE

OF DOCUMENTS WITH THE REGISTRAR OF COMPANIES, THE SECRETARY

AN INSURER WAS REQUIRED UNDER THE ORDINANCE TO SUBMIT TO THE INSURANCE

ACCOUNTS, STATEMENTS AND OTHER INFORMATION PRESCRIBED IN THE THIRD SCHEDULE.

AUTHORITY

HE WAS ALSO REQUIRED TO DEPOSIT A COPY OF SUCH THE REGISTRAR OF COMPANIES FOR PUBLIC INSPECTION.

DOCUMENTS WITH

THE

KONG

AMENDED IN MR NENDICK POINTED OUT THAT THE THIRD SCHEDULE was

REQUIRE GENERAL DECEMBER LAST YEAR TO

INSURERS TO SUBMIT TO INSURANCE AUTHORITY AN ADDITIONAL ANNUAL RETURN ON THEIR HONG BUSINESS.

THE

NEW

WITH

SUCH

THE GENERAL INSURERS HAD SUBSEQUENTLY REQUESTED THAT RETURN, CONTAINING TRADE-SENSITIVE DATA, SHOULD NOT BE DEPOSITED THE REGISTRAR OF COMPANIES, ALTHOUGH THEY HAD NO OBJECTION TO INFORMATION BEING RELEASED BY THE INSURANCE AUTHORITY ON AN AGGREGATE BASIS.

"WE SEE NO OBJECTION TO THIS REQUEST AND PROPOSE THAT THE ORDINANCE BE SO AMENDED, HE SAID.

tt

EXPLAINING THE INTERVENTIONARY ACTIONS OF AUTHORITY, MR NENDICK SAID THE ORDINANCE SET OUT THE POWERS OF THE AUTHORITY AND THE VARIOUS GROUNDS ON POWERS WERE EXERCISABLE.

THE INSURANCE

INTERVENTIONARY DIFFERENT

WHICH

/"UNDER SECTION