TNAG-1648-FCO40-2295-Financial-insurance-and-investment-companies-in-Hong-Kong-In-1987 — Page 77

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A BILL

To

Enclosure No. 4

Amend the Insurance Companies Ordinance.

Enacted by the Governor of Hong Kong, with the advice and consent of the Legislative Council thereof.

1. This Ordinance may be cited as the Insurance Companies (Amendment) Short title. Ordinance 1987.

2. The principal Ordinance is amended by adding after section 22 the Addition of new following-

"Foreign insurers may be authorized

to maintain an account in

relation to their Hong Kong business.

Third Schedule.

22A. (1) Where an insurer which carries on long term business is incorporated or formed outside Hong Kong, the Insurance Authority may, at the request in writing of the insurer, authorize the insurer to maintain an account of long term business carried on in Hong Kong in place of the account referred to in section 22(1) and, if such an authorization is given, the insurer shall maintain an account of long term business carried on in Hong Kong in accord- ance with that authorization.

(2) The Insurance Authority may, in giving his authorization under subsection (1)—

(a) modify or vary any of the requirements of the Third Schedule in its application to the insurer as may be appropri- ate; and

(b) specify the period within which the insurer shall, in accord- ance with the Third Schedule as modified or varied under paragraph (a), make arrangements for identifying the assets and liabilities of the insurer which are attributable to its long term business carried on in Hong Kong as on such day as may be so specified.

(3) Subject to the terms of any authorization under subsection (1) and to subsection (4), this Ordinance, with the exception of section 22(4), shall continue to apply to an insurer in respect of whom such authorization is in force.

(4) Where an authorization under subsection (1) is in force in relation to any insurer, any references in--

(a) sections 22(1)(a) and (b), (2)(b) and (3), 23 and 45(2) and (5)

to the long term business of the insurer, or to the business of the insurer where this is to be construed as a reference to its long term business, shall be construed as a reference to the long term business of the insurer carried on in Hong Kong;

(b) sections 22, 23 and 45 to the fund or funds maintained by the insurer in respect of its long term business, shall be construed as reference to the fund or funds maintained by the insurer in respect of its long term business carried on in Hong Kong.

(5) Where the Insurance Authority gives any authorization under subsection (1) he shall, as soon as practicable, publish a notice in the Gazette stating the name of the insurer and the fact that such authorization has been given.".

section 22A. (Cap. 41.)