24
CAP. 41]
Insurance Companies
[1988 Ed.
(6) The Insurance Authority shall, when exercising any power conferred by sections 27 to 35, state the ground on which he is exercising it or, if he is exercising it by virtue of subsection (4), that he is so exercising it; but this subsection shall not apply where the Insurance Authority has given notice under section 36 or 37 of the proposed exercise of the power.
(7) The grounds specified in subsections (1)(b) to (e), (2) and (3) are without prejudice to the ground specified in subsection (1)(a).
Restrictions on new business
27. (1) The Insurance Authority may require an insurer
(a) not to effect any contracts of insurance or contracts of insurance of a specified description;
(b) not to vary any contracts of insurance of a specified description, being contracts effected in the course of carrying on insurance business and in force when the requirement is imposed.
(2) A requirement under this section may apply to contracts of insurance whether or not the effecting of them falls within a class of insurance business which the insurer is for the time being authorized to carry on.
Requirements about investments
28. (1) The Insurance Authority may require an insurer----
(a) not to make investments of a specified class or description;
(b) to realize, before the expiration of a specified period (or such longer period as the Insurance Authority may allow), the whole or a specified proportion of investments of a specified class or description held by the insurer when the requirement is imposed.
(2) A requirement under this section may be framed so as to apply only to investments which are (or, if made, would be) assets representing a fund or funds maintained by the insurer in respect of its long term business or so as to apply only to other investments.
Maintenance of assets in Hong Kong
29. (1) The Insurance Authority may require that assets of an insurer of a value which at any time is equal to the whole or a specified proportion of the amount of its domestic liabilities shall be maintained in Hong Kong, and, in imposing any such requirement, he shall have regard to the insurer's arrangements for the reinsurance of risks against which persons are insured by the insurer in the course of carrying on business.
(2) The Insurance Authority may direct that for the purposes of any requirement under this section assets of a specified class or description shall or shall not be treated as assets maintained in Hong Kong.
(3) The Insurance Authority may direct that for the purposes of any requirement under this section the domestic liabilities of an insurer, or such liabilities of any class or description, shall be taken to be the net liabilities after deducting any part of them which is reinsured.
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Page 26
24
CAP. 41]
Insurance Companies
[1988 Ed.
(6) The Insurance Authority shall, when exercising any power conferred by sections 27 to 35, state the ground on which he is exercising it or, if he is exercising it by virtue of subsection (4), that he is so exercising it; but this subsection shall not apply where the Insurance Authority has given notice under section 36 or 37 of the proposed exercise of the power.
(7) The grounds specified in subsections (1)(b) to (e), (2) and (3) are without prejudice to the ground specified in subsection (1)(a).
Restrictions on new business
27. (1) The Insurance Authority may require an insurer
(a) not to effect any contracts of insurance or contracts of insurance of a
specified description;
(b) not to vary any contracts of insurance of a specified description, being contracts effected in the course of carrying on insurance business and in force when the requirement is imposed.
(2) A requirement under this section may apply to contracts of insurance whether or not the effecting of them falls within a class of insurance business which the insurer is for the time being authorized to carry on.
Requirements about investments
28. (1) The Insurance Authority may require an insurer----
(a) not to make investments of a specified class or description;
(b) to realize, before the expiration of a specified period (or such longer period as the Insurance Authority may allow), the whole or a specified proportion of investments of a specified class or description held by the insurer when the requirement is imposed.
(2) A requirement under this section may be framed so as to apply only to investments which are (or, if made, would be) assets representing a fund or funds maintained by the insurer in respect of its long term business or so as to apply only to other investments.
Maintenance of assets in Hong Kong
29. (1) The Insurance Authority may require that assets of an insurer of a value which at any time is equal to the whole or a specified proportion of the amount of its domestic liabilities shall be maintained in Hong Kong, and, in imposing any such requirement, he shall have regard to the insurer's arrange- ments for the reinsurance of risks against which persons are insured by the insurer in the course of carrying on business.
(2) The Insurance Authority may direct that for the purposes of any requirement under this section assets of a specified class or description shall or shall not be treated as assets maintained in Hong Kong.
(3) The Insurance Authority may direct that for the purposes of any requirement under this section the domestic liabilities of an insurer, or such liabilities of any class or description, shall be taken to be the net liabilities after deducting any part of them which is reinsured.
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