1964_INSURANCE_COMPANIES_ORDINANCE — Page 56

1988 Ed.]

Insurance Companies

[CAP. 41

55

5. (1) The information to be submitted in respect of long term business under Part 7 of this Schedule shall be accompanied by a certificate by the appointed actuary stating whether---

(a) in his opinion, proper records have been kept by the insurer adequate for the purpose of the valuation of the liabilities of the long term business;

(b) he is satisfied that, as at the date to which the valuation relates, the value of the assets identified as representing the long term business exceeded the aggregate of the amount of the liabilities under long term business contracts and the amount of any other liabilities of the insurer attributable to its long term business by not less than $2,000,000 or its equivalent; and

(c) in his opinion there is a prudent and satisfactory relationship between the nature and term of the assets and the nature and term of the liabilities.

(2) If he considers it necessary, the appointed actuary shall add to the certificate such qualification, amplification or explanation as is appropriate.

6. Except to the extent that any statutory provisions have been followed in the preparation thereof, there shall be annexed to the accounts and statements a supplementary statement or statements describing in full and sufficient detail the accounting policies used in arriving at the values of each and every asset and liability and in making any estimate, apportionment, reserve or provision.

7.

PART 2:

DIRECTORS' REPORT

There shall be attached to every balance sheet submitted under this Schedule a report by the directors with respect to the profit or loss of the insurer for the financial year and the state of the insurer's affairs as at the end thereof.

8. Every directors' report so attached shall be approved by the board of directors of the insurer and signed on behalf of the board either by the chairman of the meeting at which it was approved or by the secretary of the insurer.

9. The report shall-

(a) state the principal activities of the insurer and of its subsidiaries in the course of the financial year and any significant change in those activities in that year;

(b) state the amount, if any, which the directors recommend should be paid by way of dividend;

(c) state the amount, if any, which the directors propose to carry to reserves;

(d) if the insurer has no subsidiaries and has in the financial year made donations for charitable or other purposes to a total amount of not less than $1,000 or its equivalent, state the total amount of such donations;

(e) if the insurer has subsidiaries and the insurer and its subsidiaries have between them made donations for charitable or other purposes to a total amount of not less than $1,000 or its equivalent, state the total amount of such donations;

(f) if significant changes in the assets of the insurer or of any of its subsidiaries have occurred in the financial year, contain particulars of the changes;

(g) if, in the financial year, the company has issued any shares, state the reason for making the issue, the classes of shares issued and, as respects each class of shares, the number issued and the consideration received by the insurer for the issue;

(h) if, in the financial year, the insurer has issued or redeemed any debentures, state the reason for making the issue or redemption, the classes of debentures issued or redeemed and, as respects each class of debentures, the amount issued or redeemed and the consideration received by the insurer;

(i) state the names of the persons who, at any time during the financial year, were directors or controllers of the insurer,

(j) if, at the end of the financial year, there subsists a contract with the insurer or with the insurer's subsidiary or holding company or any subsidiary of the insurer's holding company in which a director or controller of the insurer has, or at any time in that year had, in any way, whether directly or indirectly, an interest, or there has, at any time in that year, subsisted a contract with the insurer in which a director or controller of the insurer had, at any time in that year, in any way, whether directly or indirectly, an interest (being, in either case, in the opinion of the directors, a contract of significance in relation to the insurer's business and in which the director's or controller's interest is or was material), contain-

(i) a statement of the fact of the contract's subsisting or, as the case may be, having subsisted;

(ii) the names of the parties to the contract (other than the insurer);