1988 Ed.]
Insurance Companies
[CAP. 41
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(4) A requirement imposed under this section may be framed so as to come into effect immediately after the day on which it is imposed or so as to come into effect after the expiration of a specified period (or such longer period as the Insurance Authority may allow).
(5) In this section any reference to a domestic liability of an insurer is a reference to a liability of the business carried on by the insurer in Hong Kong.
(6) Subject to subsection (7), in computing the amount of any liabilities for the purposes of this section all contingent and prospective liabilities shall be taken into account but not liabilities in respect of share capital.
(7) For the purposes of this section the value of any assets and the amount of any liabilities shall be determined in accordance with any applicable valuation regulations; and subsection (6) shall have effect subject to any such regulations.
Custody of assets
30. (1) The Insurance Authority may, in the case of an insurer on which a requirement has been imposed under section 29, impose an additional requirement that the whole or a specified proportion of the assets to which the requirement under that section applies shall be held by a person approved by him for the purposes of the requirement under this section as trustee for the insurer.
(2) Section 29(4) shall apply also to a requirement under this section.
(3) Assets of an insurer held by a person as trustee for an insurer shall be taken to be held by such person in compliance with a requirement imposed under this section if, but only if, they are assets in whose case the insurer has given such person written notice that they are to be held by him in compliance with such a requirement or they are assets into which assets in whose case the insurer has given such person such written notice have, by any transaction or series of transactions, been transposed by him on the instructions of the insurer.
(4) No assets held by a person as trustee for an insurer in compliance with a requirement imposed under this section shall, so long as the requirement is in force, be released except with the consent of the Insurance Authority.
(5) If a mortgage or charge is created by an insurer at a time when there is in force a requirement imposed on the insurer by virtue of this section, being a mortgage or charge conferring a security on any assets which are held by a person as trustee for the insurer in compliance with the requirement, the mortgage or charge shall, to the extent that it confers such a security, be void against the liquidator and any creditor of the insurer.
Limitation of premium income
31. (1) The Insurance Authority may require an insurer to take all such steps as are requisite to secure that the aggregate of the premiums—
(a) to be received by the insurer in consideration of the undertaking by it during a specified period of liabilities in the course of carrying on general business or any specified part of such business; or
1988 Ed.]
Insurance Companies
[CAP. 41
25
(4) A requirement imposed under this section may be framed so as to come into effect immediately after the day on which it is imposed or so as to come into effect after the expiration of a specified period (or such longer period as the Insurance Authority may allow).
(5) In this section any reference to a domestic liability of an insurer is a reference to a liability of the business carried on by the insurer in Hong Kong.
(6) Subject to subsection (7), in computing the amount of any liabilities for the purposes of this section all contingent and prospective liabilities shall be taken into account but not liabilities in respect of share capital.
(7) For the purposes of this section the value of any assets and the amount of any liabilities shall be determined in accordance with any applicable valuation regulations; and subsection (6) shall have effect subject to any such regulations.
Custody of assets
30. (1) The Insurance Authority may, in the case of an insurer on which a requirement has been imposed under section 29, impose an additional require- ment that the whole or a specified proportion of the assets to which the requirement under that section applies shall be held by a person approved by him for the purposes of the requirement under this section as trustee for the insurer.
(2) Section 29(4) shall apply also to a requirement under this section.
(3) Assets of an insurer held by a person as trustee for an insurer shall be taken to be held by such person in compliance with a requirement imposed under this section if, but only if, they are assets in whose case the insurer has given such person written notice that they are to be held by him in compliance with such a requirement or they are assets into which assets in whose case the insurer has given such person such written notice have, by any transaction or series of transactions, been transposed by him on the instructions of the insurer.
(4) No assets held by a person as trustee for an insurer in compliance with a requirement imposed under this section shall, so long as the requirement is in force, be released except with the consent of the Insurance Authority.
(5) If a mortgage or charge is created by an insurer at a time when there is in force a requirement imposed on the insurer by virtue of this section, being a mortgage or charge conferring a security on any assets which are held by a person as trustee for the insurer in compliance with the requirement, the mortgage or charge shall, to the extent that it confers such a security, be void against the liquidator and any creditor of the insurer.
Limitation of premium income
31. (1) The Insurance Authority may require an insurer to take all such steps as are requisite to secure that the aggregate of the premiums—
(a) to be received by the insurer in consideration of the undertaking by it during a specified period of liabilities in the course of carrying on general business or any specified part of such business; or
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