O 10
CAP. 159]
Solicitors (Professional Indemnity) (Amendment) Rules
[1986 Ed.
[Subsidiary]
(ii) thereafter, for each successive Insurance Year an amount equal to 200% of the rate of premium for the preceding Insurance Year, until such Principal (or his Partners if any) has made disclosure of such particulars of the Gross Fee Income or other information as was required.
(d) Upon a Principal making good all failures under sub-paragraph (c) above, Authorized Insurers shall assess the premium payable in respect of the Practice. If the amount of the premium as assessed—
(i) is less than the amount of the premium paid, the difference shall be repaid to the Firm without interest; or
(ii) exceeds the amount of the premium paid, the Firm shall upon demand pay to Authorized Insurers the balance of the amount of premium together with interest on the amount of such balance at the rate of 4 per cent per annum above the best lending rate from time to time of The Hongkong and Shanghai Banking Corporation calculated from the date stipulated in or prescribed by the Society under rule 8(1) until receipt of payment by Authorized Insurers.
(2) In the case of a solicitor or solicitors commencing a Practice during any Insurance Year the premium payable in respect of such Practice for the year of commencement of practice shall be assessed by Authorized Insurers based on the average premium paid for the current Insurance Year by firms of similar composition to the Practice and be paid pro rata and such basis shall continue to be applied until such Practice shall have submitted a certified public accountant's certificate of Gross Fee Income and other information in accordance with the foregoing provisions of this clause.
(3) The minimum Basic Premium payable in respect of a Practice for an Insurance Year shall be HK$40,000. Provided that such amount shall be reduced to HK$20,000 if the Gross Fee Income of that Practice does not exceed HK$500,000 for that Insurance Year.
(4) The maximum Basic Premium payable in respect of a Practice for the First Period of Insurance shall be limited to HK$1,500,000 and for any subsequent Periods of Insurance shall be such amount as may be specified by the Council.
(5) The premiums payable for a Period of Insurance shall be due and payable to Authorized Insurers on or before the 30 September immediately preceding the Period of Insurance. Provided that in the case of practice referred to in sub-paragraph (2) the premium payable for its first Period of Insurance shall be paid forthwith on demand.
(6) (a) Notwithstanding anything to the contrary in paragraph 3 Authorized Insurers may with the authority of a resolution of the Council at any time during a Period of Insurance demand in writing from every Principal who is required to take out and maintain professional indemnity insurance at any time during the Insurance year when the demand is made such further sum as may be authorized by the Council to make up a deficit or anticipated deficit in the funds maintained by the Society for the Professional Indemnity Scheme and such Principal shall be bound to pay such further sum to Authorized Insurers within 30 days after the date of issue of such written demand.
(b) Subject to the amount of payments received from such Principals being sufficient to cover the amount of the deficit or anticipated deficit, the sum which such Principal shall be required to pay shall be that proportion of the deficit or anticipated deficit as the total amount of the premiums payable after appropriate adjustment as provided in paragraph 3(1)(b)(iv) by such Principal for the Insurance Year when the demand is made bears to the total amount of the premiums payable after adjustment by all Principals under the Professional Indemnity Scheme for such Insurance Year. Provided however that such Principal may be required to make an interim payment on account of the sum which such Principal is to pay hereunder. Such interim payment (which shall be subject to subsequent adjustment) shall be that proportion of the deficit or anticipated deficit as the premium paid by such Principal for the Insurance Year when the demand is made bears to the total amount of the premiums then paid for such Insurance Year.
(7) (a) If during any period of four Insurance Years immediately prior to any Period of Insurance an insurer on behalf of the Insured shall have paid any claims, then the premium payable for such Period of Insurance shall not be
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Page 11
O 10
CAP. 159]
Solicitors (Professional Indemnity) (Amendment) Rules
[1986 Ed.
[Subsidiary]
(ii) thereafter, for each successive Insurance Year an amount equal to
200% of the rate of premium for the preceding Insurance Year,
until such Principal (or his Partners if any) has made disclosure of such particulars of the Gross Fee Income or other information as was required. (d) Upon a Principal making good all failures under sub-paragraph (c) above, Authorized Insurers shall assess the premium payable in respect of the Practice. If the amount of the premium as assessed-
(i) is less than the amount of the premium paid, the difference shall be
repaid to the Firm without interest; or
(ii) exceeds the amount of the premium paid, the Firm shall upon demand pay to Authorized Insurers the balance of the amount of premium together with interest on the amount of such balance at the rate of 4 per cent per annum above the best lending rate from time to time of The Hongkong and Shanghai Banking Corporation calculated from the date stipulated in or prescribed by the Society under rule 8(1) until receipt of payment by Authorized Insurers.
(2) In the case of a solicitor or solicitors commencing a Practice during any Insurance Year the premium payable in respect of such Practice for the year of commencement of practice shall be assessed by Authorized Insurers based on the average premium paid for the current Insurance Year by firms of similar composition to the Practice and be paid pro rata and such basis shall continue to be applied until such Practice shall have submitted a certified public accountant's certificate of Gross Fee Income and other information in accordance with the foregoing provisions of this clause.
(3) The minimum Basic Premium payable in respect of a Practice for an Insurance Year shall be HK$40,000. Provided that such amount shall be reduced to HK$20,000 if the Gross Fee Income of that Practice does not exceed HK$500,000 for that Insurance Year.
(4) The maximum Basic Premium payable in respect of a Practice for the First Period of Insurance shall be limited to HK$1,500,000 and for any subsequent Periods of Insurance shall be such amount as may be specified by the Council. (5) The premiums payable for a Period of Insurance shall be due and payable to Authorized Insurers on or before the 30 September immediately preceding the Period of Insurance. Provided that in the case of practice referred to in sub-paragraph (2) the premium payable for its first Period of Insurance shall be paid forthwith on demand.
(6) (a) Notwithstanding anything to the contrary in paragraph 3 Authorized Insurers may with the authority of a resolution of the Council at any time during a Period of Insurance demand in writing from every Principal who is required to take out and maintain professional indemnity insurance at any time during the Insurance year when the demand is made such further sum as may be authorized by the Council to make up a deficit or anticipated deficit in the funds maintained by the Society for the Professional Indemnity Scheme and such Principal shall be bound to pay such further sum to Authorized Insurers within 30 days after the date of issue of such written demand.
(b) Subject to the amount of payments received from such Principals being sufficient to cover the amount of the deficit or anticipated deficit, the sum which such Principal shall be required to pay shall be that proportion of the deficit or anticipated deficit as the total amount of the premiums payable after appropriate adjustment as provided in paragraph 3(1)(b)(iv) by such Principal for the Insurance Year when the demand is made bears to the total amount of the premiums payable after adjustment by all Principals under the Professional Indemnity Scheme for such Insurance Year. Provided however that such Principal may be required to make an interim payment on account of the sum which such Principal is to pay hereunder. Such interim payment (which shall be subject to subsequent adjustment) shall be that proportion of the deficit or anticipated deficit as the premium paid by such Principal for the Insurance Year when the demand is made bears to the total amount of the premiums then paid for such Insurance Year.
(7) (a) If during any period of four Insurance Years immediately prior to any Period of Insurance an insurer on behalf of the Insured shall have paid any claims, then the premium payable for such Period of Insurance shall not be
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