8
CAP. 41]
Insurance Companies
[1988 Ed.
Application for authorization to carry on insurance business
7. (1) Any company may make application in writing to the Insurance Authority for authorization to carry on any class of insurance business.
(2) The applicant shall furnish such information in such form as the Insurance Authority may require for the purpose of determining the application together with the particulars specified in the Second Schedule relating to every director or controller of the applicant.
Authorization
8. (1) Upon application made by a company under section 7, the Insurance Authority-
(a) subject to paragraph (b), may authorize the company in writing to carry on, subject to such conditions as he may impose, any class or classes of insurance business; or
(b)
(i) shall refuse the application if subsection (2) or (3) applies; or (ii) may refuse the application on any other ground whether or not the application has been refused on a ground under subparagraph (i). (Replaced 41 of 1987 s. 2)
(2) The Insurance Authority shall not authorize a company under this section if it appears to the Insurance Authority that any person who is a director or controller of the company is not a fit and proper person to hold the position held by him.
(3) The Insurance Authority shall not authorize a company under this section unless the following conditions are satisfied-
(a) that, at the date of the application, the value of the assets of the company exceeds the amount of its liabilities by not less than the relevant amount within the meaning of section 10; and
(b) that in the case of a company having a share capital, the aggregate of the amount paid up thereof and the amount of any subordinated loan stock of the company and the amount paid up in respect of any redeemable preference shares of the company is not less than-
(i) except if subparagraph (ii) or (iii) applies to the company, $5,000,000 or its equivalent;
(ii) if the company intends to carry on both general business and long term business, or carries on both general business and long term business outside Hong Kong, $10,000,000 or its equivalent;
(iii) if the company intends to carry on any class of insurance business (not being reinsurance business) relating to liabilities or risks in respect of which persons are required by any Ordinance to be insured, $10,000,000 or its equivalent; and
(c) that as regards each class of risks against which, in the course of
carrying on business, the company proposes to insure persons-
(i) adequate arrangements are in force, or will be made, for the reinsurance of risks of that class against which persons are, or are to be, insured by the company in the course of carrying on business; or
(ii) it is justifiable not to make arrangements for that purpose; and
8
CAP. 41]
Insurance Companies
[1988 Ed.
Application for authorization to carry on insurance business
7. (1) Any company may make application in writing to the Insurance Authority for authorization to carry on any class of insurance business.
(2) The applicant shall furnish such information in such form as the Insurance Authority may require for the purpose of determining the applica- tion together with the particulars specified in the Second Schedule relating to every director or controller of the applicant.
Authorization
8. (1) Upon application made by a company under section 7, the Insurance Authority-
(a) subject to paragraph (b), may authorize the company in writing to carry on, subject to such conditions as he may impose, any class or classes of insurance business; or
(b)
(i) shall refuse the application if subsection (2) or (3) applies; or (ii) may refuse the application on any other ground whether or not the application has been refused on a ground under subparagraph (i). (Replaced 41 of 1987 s. 2)
(2) The Insurance Authority shall not authorize a company under this section if it appears to the Insurance Authority that any person who is a director or controller of the company is not a fit and proper person to hold the position held by him.
(3) The Insurance Authority shall not authorize a company under this section unless the following conditions are satisfied-
(a) that, at the date of the application, the value of the assets of the company exceeds the amount of its liabilities by not less than the relevant amount within the meaning of section 10; and
(b) that in the case of a company having a share capital, the aggregate of the amount paid up thereof and the amount of any subordinated loan stock of the company and the amount paid up in respect of any redeemable preference shares of the company is not less than-
(i) except if subparagraph (ii) or (iii) applies to the company, $5,000,000 or its equivalent;
(ii) if the company intends to carry on both general business and long term business, or carries on both general business and long term business outside Hong Kong, $10,000,000 or its equivalent;
(iii) if the company intends to carry on any class of insurance business (not being reinsurance business) relating to liabilities or risks in respect of which persons are required by any Ordinance to be insured, $10,000,000 or its equivalent; and
(c) that as regards each class of risks against which, in the course of
carrying on business, the company proposes to insure persons-
(i) adequate arrangements are in force, or will be made, for the reinsurance of risks of that class against which persons are, or are to be, insured by the company in the course of carrying on business; or
(ii) it is justifiable not to make arrangements for that purpose; and
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