Insurance Companies Ordinance


Published: 2013-04-25

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Cap 41 - Insurance Companies Ordinance 1

Chapter: 41 Insurance Companies Ordinance Gazette Number Version Date

Long title E.R. 1 of 2013 25/04/2013


To regulate the carrying on of insurance business including regulating insurance intermediaries, to provide for the
appointment of an Insurance Authority, to confer powers of authorization and intervention on the Insurance
Authority in respect of insurers and insurance intermediaries and to require insurers and insurance intermediaries
to furnish financial statements and other information to the Insurance Authority; and for matters incidental
thereto or connected therewith.

(Amended 76 of 1994 s. 2)


[30 June 1983] L.N. 203 of 1983

(Originally 6 of 1983)

(*Format changes—E.R. 1 of 2013)
_______________________________________________________________________________
Note:
* The title of the Ordinance has been updated to the current legislative styles.

Part: I Preliminary E.R. 1 of 2013 25/04/2013


(*Format changes—E.R. 1 of 2013)
____________________________________________________________________________
Note:
* The format of Part I has been updated to the current legislative styles.

Section: 1 Short title E.R. 1 of 2013 25/04/2013


This Ordinance may be cited as the Insurance Companies Ordinance.

Section: 2 Interpretation L.N. 198 of 2015 07/12/2015


(1) In this Ordinance, unless the context otherwise requires-
Advisor (顧問), in relation to an insurer, means the person appointed, pursuant to section 35(2)(a), to be the Advisor

of the insurer; (Added 51 of 1992 s. 2)
Amendment Ordinance (《修訂條例》) means the Insurance Companies (Amendment) Ordinance 2015 (12 of

2015); (Added 12 of 2015 s. 5)
annuities on human life (人壽年金) does not include superannuation allowances and annuities payable out of any

fund applicable solely to the relief and maintenance of persons engaged or who have been engaged in any
particular profession, trade or employment, or of the dependants of such persons;

appointed insurance agent (獲委任保險代理人) means an insurance agent appointed by and registered with an
insurer as an agent; (Added 76 of 1994 s. 3)

Authority (保監局) means the body corporate established under section 4AAA(1); (Added 12 of 2015 s. 5)
authorized (獲授權), in relation to an insurer, means authorized under section 8, or deemed under section 61(1) or (2)

to be so authorized, to carry on insurance business, and authorization (授權) has the corresponding meaning;
authorized insurance broker (獲授權保險經紀) means an insurance broker who is-

(a) authorized by the Insurance Authority under section 69; or
(b) a member of a body of insurance brokers which is approved by the Insurance Authority under section 70;

(Added 76 of 1994 s. 3)
body corporate (法人團體) includes a body incorporated outside Hong Kong;
chief executive (行政總裁) has the meaning assigned to it by section 9(2);
class (類別), in relation to insurance business, means a class of insurance business which under section 3 is relevant



Cap 41 - Insurance Companies Ordinance 2

for the purposes of this Ordinance;
client monies (客戶款項) means monies an insurance broker has received from or held on behalf of a policy holder

or potential policy holder and to which he is not entitled; (Added 76 of 1994 s. 3)
code of practice (實務守則) means a code of practice approved by the Insurance Authority under section 67; (Added

76 of 1994 s. 3)
company (公司) has the meaning given by section 2(1) of the Companies Ordinance (Cap 622) and includes a non-

Hong Kong company as defined by that section; (Amended 28 of 2012 ss. 912 & 920)
controller (控權人) has the meaning assigned to it by section 9, but does not include a Manager; (Amended 51 of

1992 s. 2)
director (董事) includes any person occupying the position of director by whatever name called;
financial year (財政年度), in relation to a body corporate, means the period in respect of which either of the

following profit and loss accounts of the body corporate is made up, whether that period is a year or not-
(Amended 28 of 2012 ss. 912 & 920)
(a) if the body corporate is not required to hold a general meeting to lay the profit and loss account, the profit

and loss account provided to every member, as required by the law under which the body corporate is
incorporated or (in the absence of such requirement by such law) by its constitution;

(b) in any other case, the profit and loss account laid before the body corporate in a general meeting, as
required by the law under which the body corporate is incorporated or (in the absence of such requirement
by such law) by its constitution; (Amended 28 of 2012 ss. 912 & 920)

former accountant (前任會計師) means a person who was formerly the accountant of an insurer or a former insurer;
(Added 59 of 1993 s. 2)

former actuary (前任精算師) means a person who was formerly the actuary of an insurer or a former insurer;
(Added 59 of 1993 s. 2)

former auditor (前任核數師) means a person who was formerly the auditor of an insurer or a former insurer;
(Added 59 of 1993 s. 2)

former insurer (前任保險人) means a person who was formerly an insurer; (Added 59 of 1993 s. 2)
general business (一般業務) means insurance business not being long term business;
gross premium income (毛保費收入) has the meaning assigned to it by section 10(4)(c);
holding company (控權公司) has the meaning given by section 13 of the Companies Ordinance (Cap 622) for the

purposes of that Ordinance; (Replaced 28 of 2012 ss. 912 & 920)
insurance agent (保險代理人) means a person who holds himself out to advise on or arrange contracts of insurance

in or from Hong Kong as an agent or subagent of one or more insurers; (Added 76 of 1994 s. 3)
Insurance Authority (保險業監督) means the Insurance Authority appointed under section 4;
insurance broker (保險經紀) means a person who carries on the business of negotiating or arranging contracts of

insurance in or from Hong Kong as the agent of the policy holder or potential policy holder or advising on
matters related to insurance; (Added 76 of 1994 s. 3)

insurance intermediary (保險中介人) means an insurance agent or an insurance broker; (Added 76 of 1994 s. 3)
insurer (保險人) means a person carrying on insurance business but does not include Lloyd's;
Lloyd's (勞合社) means the society of underwriters known in the United Kingdom as Lloyd's;
long term business (長期業務) means any of the classes of insurance business specified in Part 2 of the First

Schedule;
Manager (經理), in relation to an insurer, means the person appointed, pursuant to section 35(2)(b), to be the

Manager of the insurer; (Added 51 of 1992 s. 2)
policy (保單)-

(a) in relation to long term business, includes an instrument evidencing a contract to pay an annuity upon
human life;

(b) in relation to insurance business of any other class, includes any policy under which there is for the time
being an existing liability already accrued or under which a liability may accrue;

policy holder (保單持有人) means the person who for the time being is the legal holder of a policy for securing a



Cap 41 - Insurance Companies Ordinance 3

contract with an insurer, and-
(a) in relation to such long term business as consists in the granting of annuities upon human life, includes an

annuitant; and
(b) in relation to insurance business of any other kind, includes a person to whom, under a policy, a benefit is

due or a periodic payment is payable;
premiums receivable (可收取保費) has the meaning assigned to it by section 10(5);
prescribed (訂明) means prescribed by regulations made under section 59; (Amended 35 of 1996 s. 2)
prescribed person (訂明人士) means-

(a) an auditor, former auditor, actuary or former actuary-
(i) of an insurer or a former insurer; and
(ii) appointed under section 15 or paragraph 4(1A) of Part 1 of the Third Schedule; or (Amended 26 of

1994 s. 2)
(b) an accountant, former accountant, actuary or former actuary-

(i) of an insurer or a former insurer; and
(ii) appointed by the insurer or former insurer, as the case may be, in compliance with a requirement under

section 35(1); or (Added 59 of 1993 s. 2. Amended 76 of 1994 s. 3)
(c) an auditor or former auditor of an insurance broker or a former insurance broker appointed under section

72; (Added 76 of 1994 s. 3)
public (公眾) means the public of Hong Kong, and includes any class of that public; (Added 12 of 2015 s. 5)
subordinated loan stock (後償債權股額), in relation to a company, means a loan which in the event of the winding

up of the company is repayable by the company only after all of the liabilities of the company, other than those
in respect of share capital, have been paid in full;

subsidiary (附屬公司) has the meaning given by section 15 of the Companies Ordinance (Cap 622) for the purposes
of that Ordinance; (Amended 28 of 2012 ss. 912 & 920)

working day (工作日) means any day other than a public holiday or a gale warning day as defined in section 71(2) of
the Interpretation and General Clauses Ordinance (Cap 1). (Added 25 of 1994 s. 2)

(Amended 25 of 1994 s. 2)
(2) References in this Ordinance to an insurer include references to an insurer formed or established in Hong Kong

and carrying on insurance business outside Hong Kong, whether or not the insurer is also carrying on insurance
business in Hong Kong.

(2A) In this Ordinance-
(a) a reference to a function includes a power and a duty; and
(b) a reference to the performance of a function includes the exercise of a power and the discharge of a duty.

(Added 12 of 2015 s. 5)
(3) For the purposes of this Ordinance, a person shall be deemed to carry on a class of insurance business in or from

Hong Kong if-
(a) he opens or maintains an office or agency in Hong Kong for the purpose of carrying on that class of

insurance business in or from Hong Kong; or
(b) he holds himself out as carrying on that class of insurance business in or from Hong Kong.

(4) A person shall not be deemed to carry on insurance business in or from Hong Kong by reason only that any
person acts as his agent for the purpose of settling claims under contracts of goods in transit insurance entered
into wholly outside Hong Kong in respect of goods consigned to Hong Kong.

(5) A person shall not be deemed to be within the meaning of any provision of this Ordinance a person in
accordance with whose directions or instructions the directors of a company or other body corporate or any of
them are accustomed to act by reason only that the directors of the company or body act on advice given by him
in a professional capacity.

(6) An insurer which is a company is subject to the Companies Ordinance (Cap 622) and the Companies (Winding
Up and Miscellaneous Provisions) Ordinance (Cap 32), as well as to this Ordinance, except that, where there is
any conflict between this Ordinance on the one hand and the Companies Ordinance (Cap 622) or the Companies
(Winding Up and Miscellaneous Provisions) Ordinance (Cap 32) on the other, this Ordinance prevails. (Added
51 of 1992 s. 2. Amended 28 of 2012 ss. 912 & 920)

(7) For the purpose of this Ordinance-
(a) captive insurer (專屬自保保險人) means a company (relevant company) which carries on general



Cap 41 - Insurance Companies Ordinance 4

business only and such business-
(i) does not relate to any liabilities or risks in respect of which persons are required by any Ordinance to

be insured; and
(ii) is restricted to the insurance and reinsurance of risks of the companies within the same grouping of

companies to which the relevant company belongs;
(b) the following companies shall be regarded as within the same grouping of companies to which the relevant

company belongs-
(i) a company (first company) which belongs to the relevant company's group of companies;
(ii) a company (second company) in respect of which the relevant company or the first company holds, or

is entitled to control the exercise of, not less than 20% but not more than 50% of the voting power at
any general meeting of the second company;

(iii) a company (third company) where the third company is a subsidiary of the second company;
(c) group of companies (公司集團) has the meaning assigned to it under section 2 of the Companies

Ordinance (Cap 622). (Added 29 of 1997 s. 2. Amended 28 of 2012 ss. 912 & 920)
(Amended E.R. 1 of 2015)


Section: 3 Classes of insurance business E.R. 1 of 2013 25/04/2013


(1) The classes of insurance business relevant for the purposes of this Ordinance shall be those specified in the First
Schedule and the provisions of that Schedule shall have effect accordingly. (Amended 59 of 1993 s. 3)

(2) A contract (including a tontine) referred to in Part 2 or 3 of the First Schedule which is not, but for this
subsection, a contract of insurance shall, for the purposes of this Ordinance, be deemed to be a contract of
insurance, and the provisions of this Ordinance shall have effect accordingly. (Added 59 of 1993 s. 3)


Part: IA Insurance Authority L.N. 198 of 2015 07/12/2015


(Part IA added 12 of 2015 s. 8)

Part:
Division:

IA
1

Establishment and Functions, etc. L.N. 198 of 2015 07/12/2015





Section: 4AAA Establishment of Authority L.N. 198 of 2015 07/12/2015


(1) A body corporate is established with the corporate name of “Insurance Authority” in English and “保險業
監管局” in Chinese.

(2) The Authority is renamed as “Provisional Insurance Authority” in English and “臨時保險業監管局” in
Chinese during the period—
(a) beginning immediately after the establishment of the body corporate under subsection (1); and
(b) ending immediately before the date on which section 10 of the Amendment Ordinance comes into

operation.
(3) The Authority—

(a) has perpetual succession under its corporate name;
(b) is required to have a common seal; and
(c) is capable of suing and being sued in its corporate name.

(4) To avoid doubt, the renaming of the Authority under this section does not—
(a) affect any rights or obligations of the Authority; or
(b) render defective any legal proceedings by or against the Authority.

(5) On and after the expiry of the period specified in subsection (2), any legal proceedings that could have been
commenced or continued against the Authority by its corporate name of “Provisional Insurance Authority”
may be commenced or continued against the Authority by its corporate name of “Insurance Authority”.

(6) During the period specified in subsection (2), section 53A(1) applies to the Authority and a person who is or has
been a member, employee, agent, consultant or advisor of the Authority as if after section 53A(1AA)(b), the



Cap 41 - Insurance Companies Ordinance 5

following were added—
“(baa) the Authority;
(baab) a person who is or has been a member, employee, agent, consultant or advisor of the Authority;”.

(Added 12 of 2015 s. 9)

Section: 4 Insurance Authority E.R. 1 of 2013 25/04/2013


(1) The Chief Executive shall appoint a public officer to be the Insurance Authority for the purposes of this
Ordinance.

(2) The Chief Executive may give directions generally or in a particular case with respect to the exercise by the
Insurance Authority of any of his functions under this Ordinance, and the Insurance Authority shall comply with
any such direction.

(Amended 31 of 1999 s. 3)

Section: 4AA Composition of Authority L.N. 198 of 2015 07/12/2015


(1) The Authority consists of the following members who are to be appointed by the Chief Executive—
(a) a chairperson, who is a non-executive director of the Authority;
(b) a chief executive officer, who is an executive director of the Authority; and
(c) not less than 6 other executive or non-executive directors of the Authority.

(2) The number of non-executive directors must exceed the number of executive directors.
(3) Of the non-executive directors—

(a) at least 2 are to be appointed from among persons who, because of their knowledge of and experience in the
insurance industry, appear to the Chief Executive to be suitable for appointment; and

(b) the others are to be appointed from among persons who, either because of their knowledge in actuarial
science, accountancy, law or consumer affairs, or because of their professional or occupational experience,
appear to the Chief Executive to be suitable for appointment.

(4) The Authority may perform its functions despite a vacancy in its membership.
(5) If this section ceases to be complied with, the Chief Executive must as soon as practicable make the necessary

appointment to ensure that the requirements of this section are complied with.
(6) Schedule 1B contains provisions on the constitution and proceedings of, and other matters relating to, the

Authority.
(Added 12 of 2015 s. 11)


Section: 4A Functions of Insurance Authority E.R. 1 of 2013 25/04/2013


(1) The principal function of the Insurance Authority shall be to regulate and supervise the insurance industry for
the promotion of the general stability of the insurance industry and for the protection of existing and potential
policy holders.

(2) Without limiting the generality of subsection (1), the Insurance Authority shall-
(a) be responsible for supervising an insurer's and an insurance intermediary's compliance with the provisions

of this Ordinance;
(b) consider and propose reforms of the law relating to insurance business;
(c) promote and encourage proper standards of conduct and sound and prudent business practices amongst

insurers;
(d) promote and encourage proper standards of conduct of insurance intermediaries and, where necessary,

review and revise the regulatory system for the same;
(e) promote and develop self-regulation by market and professional bodies of the insurance industry;
(f) co-operate with and assist financial services supervisory authorities of Hong Kong or of any place outside

Hong Kong, whenever appropriate, to the extent permitted by this Ordinance; and
(g) exercise functions imposed or conferred on the Insurance Authority by this or any other Ordinance. (Added

16 of 2012 s. 23)
(3) The Insurance Authority may from time to time cause to be prepared and published by notice in the Gazette, for

the guidance of authorized insurers, insurance intermediaries, and the auditors and actuaries of such insurers and



Cap 41 - Insurance Companies Ordinance 6

intermediaries, guidelines not inconsistent with this Ordinance, indicating the manner in which he proposes to
exercise functions imposed or conferred upon him by this or any other Ordinance.

(Added 75 of 1995 s. 2. Amended 16 of 2012 s. 23)

Section: 4B Powers of Authority L.N. 198 of 2015 07/12/2015


Remarks:
* Provision marked with the asterisk (*) has not yet come into operation.


*[(1) The Authority may do anything that is necessary for, or incidental or conducive to, performing any of its
functions.]

(2) Without limiting subsection (1), the Authority may—
(a) hold, acquire, lease, sell, charge, dispose of or otherwise deal with all kinds of property, whether movable

or immovable;
(b) enter into, carry out, assign, accept the assignment of, vary or rescind any contract, agreement,

memorandum of understanding or other obligation;
(c) with the approval of the Financial Secretary, borrow money on security or other conditions;
(d) receive and expend monies;
(e) accept gifts;
(f) publish or otherwise make available materials on any matter relating to the performance by the Authority of

any of its functions;
(g) establish wholly-owned subsidiaries;
(h) invest, in the manner approved by the Financial Secretary, its funds that are not required for immediate use;
(i) do all things that the Authority thinks fit for its administration and management; and
(j) exercise other powers that are conferred on the Authority under this Ordinance or any other Ordinance.

(Added 12 of 2015 s. 13)

Section: 4C Industry advisory committees L.N. 198 of 2015 07/12/2015


(1) The Authority must appoint an industry advisory committee to advise it on any matters it refers to the committee
in relation to long term business.

(2) The Authority must also appoint another industry advisory committee to advise it on any matters it refers to the
committee in relation to general business.

(3) The Authority may, after consulting the Financial Secretary, establish additional industry advisory committees to
advise it on any matters regarding the performance of any of its functions (other than matters in relation to long
term business and general business).

(4) Each industry advisory committee is constituted in accordance with Schedule 1C and must conduct its business
in accordance with that Schedule.

(Added 12 of 2015 s. 13)

Section: 4D Authority may establish other committees L.N. 198 of 2015 07/12/2015


(1) The Authority may establish one or more committees to assist it in a matter with which the Authority is
concerned.

(2) The Authority may refer a matter to a committee established under this section (committee) for consideration,
inquiry or management.

(3) The Authority—
(a) may appoint a person to be a member of a committee, whether or not the person is a member of the

Authority; and
(b) may appoint a member of the committee to be the chairperson of the committee.

(4) A reference of a matter to a committee does not prevent the Authority from performing any of its functions.
(5) The Authority—

(a) may withdraw a reference under subsection (2) from a committee; and
(b) may revoke an appointment under subsection (3).



Cap 41 - Insurance Companies Ordinance 7

(6) The Authority may give directions to a committee, whether generally or in a particular case, and whether
regarding the manner in which the committee is to act or otherwise.

(7) The committee must act in accordance with those directions.
(Added 12 of 2015 s. 13)


Section: 4E Staff and consultants of Authority L.N. 198 of 2015 07/12/2015


(1) The Authority may employ persons for the remuneration and allowances, and on the terms and conditions, that
the Authority determines.

(2) The Authority may provide and maintain schemes (whether contributory or not) for the payment of retirement
benefits, gratuities or other allowances to its employees and their dependants.

(3) The Authority may engage consultants, agents and advisors to assist it in performing its functions.
(Added 12 of 2015 s. 13)


Section: 4F Delegation of Authority’s functions to its members,

committees and employees
L.N. 198 of 2015 07/12/2015



(1) Subject to subsection (2), the Authority may delegate any of its functions to—
(a) a member of the Authority;
(b) a committee established under section 4D; or
(c) an employee of the Authority, whether by reference to the name of the employee or to the office held by the

employee.
(2) A delegation must not be made—

(a) in relation to the power of the Authority to delegate under this section; or
(b) in relation to a function specified in Schedule 1D.

(3) If the Authority delegates a function, it may at the same time authorize the delegate to sub-delegate the function.
(4) The Authority may—

(a) revoke a delegation, or an authorization for a sub-delegation;
(b) attach restrictions or conditions to a delegation; or
(c) attach restrictions or conditions to an authorization for a sub-delegation, including those on the exercise of

the power to sub-delegate.
(5) A delegation does not prevent the Authority from concurrently performing the function delegated. A delegation

and sub-delegation does not prevent the Authority or a delegate, or both, from concurrently performing the
function delegated or sub-delegated.

(6) If a person or a committee purports to act under a delegation or sub-delegation, the person or the committee is
presumed, unless the contrary is proved, to be acting in accordance with the terms of the delegation or sub-
delegation.

(7) Without affecting subsection (5), if there is a delegation or sub-delegation in relation to a function of the
Authority, a reference in this Ordinance or any other Ordinance to the Authority in connection with the
performance of the function is, unless the context otherwise requires, to be construed accordingly.

(Added 12 of 2015 s. 13)

Section: 4G Delegation of certain powers of Authority to Monetary

Authority




Remarks:
Not yet in operation

(1) The Authority may, subject to the approval of the Chief Executive in Council, delegate its powers under sections

64ZZF(6) and 64ZZH(1) to the Monetary Authority in relation to a business of a regulated activity carried on by
an authorized institution.

(2) The Chief Executive in Council may, after consultation with the Authority and the Monetary Authority—
(a) impose conditions on the approval of a delegation;
(b) vary any of the conditions of the approval of a delegation; or



Cap 41 - Insurance Companies Ordinance 8

(c) withdraw the approval of a delegation.
(3) Without affecting subsection (2)(c), the Authority may, after consultation with the Monetary Authority, revoke a

delegation under subsection (1).
(4) A revocation of a delegation under subsection (3) takes effect when the Chief Executive in Council notifies the

Authority and the Monetary Authority that the approval of the delegation has been withdrawn under subsection
(2)(c).

(5) A delegation does not prevent the Authority from concurrently performing the function delegated. A delegation
does not prevent the Authority or a delegate, or both, from concurrently performing the function delegated.

(6) If the Monetary Authority purports to act under a delegation, the Monetary Authority is presumed, unless the
contrary is proved, to be acting in accordance with the terms of the delegation.

(7) If there is a delegation in relation to a power of the Authority, the delegation includes—
(a) the delegation of a power incidental to, or connected with, the delegation; and
(b) the delegation of a duty incidental to, or connected with, the delegation.

(8) Without affecting subsection (5), if the powers under sections 64ZZF(6) and 64ZZH(1) are delegated to the
Monetary Authority under subsection (1), the provisions of this Ordinance are to operate as if—
(a) in the definition of investigator in section 64F, the words “Monetary Authority” were substituted for the

word “Authority”;
(b) in section 64ZZF(7), the words “Monetary Authority” were substituted for the word “Authority”;
(c) in section 64ZZH(1)(a), (b) and (c), the words “Monetary Authority” were substituted for the word

“Authority”;
(d) in section 64ZZH(1)(d), the words “the Monetary Authority, for considering whether to recommend to the

Authority” were substituted for the words “the Authority, for considering whether”;
(e) in section 64ZZH(1), the words “one or more persons appointed under section 5A(3) of the Exchange

Fund Ordinance (Cap 66)” were substituted for the words “one or more of its employees”;
(f) in section 64ZZH(4), the words “Monetary Authority” were substituted for the word “Authority”;
(g) in section 64ZZO(1)(a) and (b), the words “Monetary Authority” were substituted for the word

“Authority”;
(h) in section 64ZZP(7), the words “Monetary Authority” were substituted for the word “Authority”;
(i) in section 121(2)(a), the words “Monetary Authority” were substituted for the word “Authority”; and
(j) section 121(5) were omitted and the following substituted—

“(5) The Monetary Authority may impose any conditions that it considers appropriate on a consent
given by it for the purposes of subsection (2)(a).”


Section: 4H Authority to furnish information L.N. 198 of 2015 07/12/2015


When required by the Financial Secretary, the Authority must furnish to the Financial Secretary—
(a) the information that the Financial Secretary specifies on the principles, practices and policies the Authority

is pursuing or adopting, or proposes to pursue or adopt, in performing any of its functions; and
(b) the reasons for pursuing or adopting, or proposing to pursue or adopt, those principles, practices and

policies.
(Added 12 of 2015 s. 13)


Section: 5 Register of insurers E.R. 1 of 2013 25/04/2013


(1) The Insurance Authority shall keep a register of authorized insurers which shall contain-
(a) the name, place of incorporation and year of first authorization (whether under this Ordinance or any

Ordinance repealed or amended by this Ordinance) of every authorized insurer;
(b) in respect of each authorized insurer, the class or classes of insurance business authorized to be carried on

by such insurer and any conditions imposed under section 8(1)(a) which impose restrictions on the class or
classes of insurance business authorized to be carried on by that insurer; (Amended 34 of 1988 s. 2; 75 of
1995 s. 3)

(c) where an authorized insurer ceases to effect contracts of insurance of any description, or any requirement is



Cap 41 - Insurance Companies Ordinance 9

imposed in respect thereof under section 27, a note to that effect;
(d) where any requirement is imposed on an authorized insurer under section 30, or a Manager, provisional

liquidator, liquidator or receiver is appointed, a note to that effect; and (Amended 51 of 1992 s. 3)
(e) where an authorized insurer ceases by virtue of a direction under section 40 to be authorized to carry on

insurance business which is part of a class of insurance business, a note to that effect. (Added 34 of 1988 s.
2)

(2) The register shall be kept at the office of the Insurance Authority or such other place as he may specify by notice
in the Gazette.

(3) Any person shall be entitled on payment of the prescribed fee-
(a) to inspect the register during ordinary office hours and take copies of any entry therein;
(b) to obtain from the Insurance Authority a copy, certified by or under the authority of the Insurance Authority

to be correct, of any entry in the register.
(4) The register required under this section may be kept by recording the matters in question-

(a) in bound books or any other legible form; or
(b) otherwise than in a legible form so long as the recording is capable of being reproduced in a legible form,

but where such register is kept otherwise than by making entries in a bound book, adequate precautions shall be
taken for guarding against falsification and facilitating its discovery.


Part:
Division:

IA
2

Accounting and Financial Arrangements L.N. 198 of 2015 07/12/2015



(Added 12 of 2015 s. 15)

Section: 5A Interpretation of Part IA, Division 2 L.N. 198 of 2015 07/12/2015


In this Division—
auditor (核數師) means an auditor appointed under section 5E;
financial year (財政年度) means the financial year of the Authority specified in section 5B.

Section: 5B Corporate plan and annual estimates L.N. 198 of 2015 07/12/2015


(1) The financial year of the Authority begins on 1 April in each year.
(2) However, the first financial year of the Authority is to—

(a) begin on the commencement date of section 15 of the Amendment Ordinance; and
(b) end on the following 31 March.

(3) The Authority must, no later than 31 December in each financial year, submit to the Financial Secretary for
approval a corporate plan for the next financial year.

(4) A corporate plan for a financial year must specify—
(a) the objectives of the Authority’s activities for that year;
(b) the nature and scope of the activities to be undertaken in order to achieve those objectives; and
(c) the estimates of the Authority’s income and expenditure for that year.

(5) The Financial Secretary must lay a copy of the estimates specified in the corporate plan as approved under
subsection (3) on the table of the Legislative Council.


Section: 5C Appropriation L.N. 198 of 2015 07/12/2015


For each financial year, the Government must pay to the Authority out of the general revenue the monies appropriated
by the Legislative Council for that purpose.

Section: 5D Accounts and annual report L.N. 198 of 2015 07/12/2015


(1) The Authority must keep proper accounts and records of its transactions.
(2) The Authority must, as soon as practicable after the end of each financial year, prepare financial statements—



Cap 41 - Insurance Companies Ordinance 10

(a) that give a true and fair view of—
(i) the state of affairs of the Authority as at the end of that year; and
(ii) the results of the operations and cash flows of the Authority in that year; and

(b) that are signed by the chairperson, and the chief executive officer, of the Authority.
(3) The Authority must, as soon as practicable after the end of each financial year—

(a) prepare a report about its activities during that year; and
(b) send a copy of the report to the Financial Secretary.

(4) The Financial Secretary must lay a copy of the report on the table of the Legislative Council.

Section: 5E Auditors L.N. 198 of 2015 07/12/2015


(1) The Authority must, with the approval of the Financial Secretary, appoint one or more auditors.
(2) An auditor—

(a) has a right of access at all reasonable times to the books, accounts, vouchers, records and documents kept
by the Authority; and

(b) is entitled to require from the officers of the Authority the information and explanations that the auditor
considers necessary for the discharge of the auditor’s duties.

(3) The Director of Audit or another public officer authorized by the Director for the purpose may, at any reasonable
time—
(a) examine any books, accounts, vouchers, records or documents kept by the Authority; and
(b) if the Director or the public officer considers it appropriate, make a copy of the whole of, or any entry in,

those books, accounts, vouchers, records or documents.

Section: 5F Financial statements to be audited L.N. 198 of 2015 07/12/2015


(1) The Authority must, as soon as practicable after the end of each financial year, provide an auditor for audit with
the financial statements prepared for the year under section 5D.

(2) The auditor must—
(a) prepare a report on those financial statements; and
(b) send the report to the Authority.

(3) The report must include a statement as to whether, in the opinion of the auditor, the financial statements give a
true and fair view of—
(a) the state of affairs of the Authority as at the end of the financial year; and
(b) the results of the operations and cash flows of the Authority in that year.

(4) The Authority must, as soon as practicable after receiving the report, provide the Financial Secretary with a copy
of the report and of the related financial statements.

(5) The Financial Secretary must lay a copy of the report and of the related financial statements on the table of the
Legislative Council.


Section: 5G Tax exemption L.N. 198 of 2015 07/12/2015


The Authority is exempt from taxation under the Inland Revenue Ordinance (Cap 112).

Part: II AUTHORIZATION 30/06/1997




Section: 6 Restriction on carrying on of insurance business 30/06/1997


(1) No person shall carry on any class of insurance business in or from Hong Kong except-
(a) a company authorized under section 8 to carry on that class of insurance business;
(b) Lloyd's;
(c) an association of underwriters approved by the Insurance Authority. (Amended 25 of 1994 s. 3)

(2) Where an application for approval under subsection (1)(c) is made, the applicant shall furnish such



Cap 41 - Insurance Companies Ordinance 11

information in respect thereof as the Insurance Authority may require. (Amended 25 of 1994 s. 3)
(3) A person who contravenes subsection (1) commits an offence and is liable-

(a) on conviction upon indictment to a fine of $2000000 and, in the case of an individual, to imprisonment
for 2 years; and

(b) on summary conviction to a fine of $200000 and, in the case of an individual, to imprisonment for 6
months,

together with, in either case, a fine of $2000 for each day on which the offence continues. (Amended 35 of 1996 s. 3)

Section: 6A Contracts of insurance entered into in contravention of

section 6(1)
30/06/1997



(1) Where a contract of insurance in relation to any class of insurance business (not being reinsurance business)
is entered into by an insurer in contravention of section 6(1), the contract shall, at the option of the policy holder, be
either-

(a) enforceable against the insurer by the policy holder, and notwithstanding that contravention; or
(b) void by reason of that contravention.

(2) A policy holder who in pursuance of subsection (1)(b) opts to void a contract of insurance before the
expiration of the contract shall be entitled to recover any consideration paid by him under the contract.

(3) Where a contract of insurance in relation to any class of insurance business (being reinsurance business) is
entered into by an insurer in contravention of section 6(1), the contract shall not be void or voidable by reason only of
that contravention.

(4) This section shall not apply to a contract of insurance entered into before the commencement of the
Insurance Companies (Amendment) Ordinance 1990 (44 of 1990).

(Added 44 of 1990 s. 2)

Section: 7 Application for authorization to carry on insurance

business
30/06/1997



(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.

Section: 8 Authorization L.N. 163 of 2013 03/03/2014


(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 is not less than-
(i) in the case of a company carrying on or intending to carry on general business only, the

aggregate of the amount of its liabilities and the relevant amount within the meaning of section
10;

(ii) in the case of a company carrying on or intending to carry on long term business only, the greater
of the following-
(A) the aggregate of the amount of its liabilities and the relevant amount within the meaning of

section 10; or



Cap 41 - Insurance Companies Ordinance 12

(B) the aggregate of the amount of its liabilities and such amount as may be prescribed by or
determined in accordance with regulations made under section 59(1)(aa); (Amended 29 of
1997 s. 3)

(iii) in the case of a company carrying on or intending to carry on both general business and long
term business, the aggregate of the amount which, if section 10(1) applied, would be the relevant
amount in the case of the company having regard only to its general business and the greater of
the following-
(A) the aggregate of-

(I) the amount of its liabilities; and
(II) if any part of the long term business carried on or intended to be carried on is of a

nature other than that specified in class G or H in Part 2 of the First Schedule,
$2000000 or its equivalent; or

(B) the aggregate of the amount of its liabilities and such amount as may be prescribed by or
determined in accordance with regulations made under section 59(1)(aa); and (Replaced 25
of 1994 s. 4. Amended 29 of 1997 s. 3)

(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), (iii) or (iv) applies to the company, $10000000 or its equivalent;

(Amended 29 of 1997 s. 3)
(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, $20000000 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, $20000000 or its equivalent; (Amended 35 of 1996 s. 4; 29 of 1997 s. 3)

(iv) if the company intends to carry on business as a captive insurer, $2000000 or its equivalent; and
(Added 29 of 1997 s. 3)

(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
(d) that the company is, and will continue to be, able to meet its obligations including obligations in

respect of business other than the class of insurance business in respect of which the application is
made; and

(e) in the case of a non-Hong Kong company as defined by section 2(1) of the Companies Ordinance (Cap
622), that it has complied with Part 16 of that Ordinance; and (Amended 28 of 2012 ss. 912 & 920)

(f) that the company will be able to comply with such of the provisions of this Ordinance as would be
applicable to it; and

(g) that in the case of a company which carries on, or proposes to carry on, some other form of business in
addition to insurance business, the carrying on of that other form of business in addition to insurance
business is not contrary to the interest of existing and potential policy holders; and

(h) that the name of the company is not likely to deceive.
(4) For the purposes of this Ordinance-

(a) in computing the amount of the liabilities of a company or an insurer, as the case may be, all
contingent and prospective liabilities shall be taken into account but not liabilities in respect of the
company's or insurer's share capital;

(b) subject to subsection (5), the value of any assets and the amount of any liabilities shall be determined
in accordance with any applicable regulations made under section 59(1)(a), and paragraph (a) shall
have effect subject to any such regulations; (Amended 29 of 1997 s. 3)

(c) if no such regulations are applicable in the case of a company or an insurer, as the case may be, regard
shall be had-
(i) in determining the value of its assets, to their market value and the cost of realizing such assets;

and



Cap 41 - Insurance Companies Ordinance 13

(ii) in determining the amount of its liabilities, to the cost of the settlement of such liabilities and,
where the amount of any such abilities is assessed or estimated, to the experience of the company
or insurer in carrying on any relevant insurance business or of other persons carrying on the same
or similar insurance business. (Replaced 25 of 1994 s. 4)

(5) Subsection (4)(b) shall not apply in the case of a company carrying on or intending to carry on business as a
captive insurer. (Added 29 of 1997 s. 3)

Section: 9 Meaning of "controller" (控權人) in section 8(2) 30/06/1997


(1) In section 8(2) "controller" (控權人), in relation to a company ("the applicant" (申請人)), means-
(a) a managing director of the applicant or of a body corporate of which it is a subsidiary;
(b) a chief executive of the applicant or of a body corporate, being an insurer, of which it is a subsidiary;
(c) a person-

(i) in accordance with whose directions or instructions the directors of the applicant or of a body
corporate of which it is a subsidiary (or any of them) are accustomed to act; or

(ii) who, alone or with any associate or through a nominee, is entitled to exercise, or control the
exercise of, 15% or more of the voting power at any general meeting of the applicant or of a
body corporate of which it is a subsidiary. (Amended 8 of 1989 s. 2)

(2) Subject to subsection (3), in this section "chief executive" (行政總裁), in relation to the applicant or a
body corporate of which it is a subsidiary, means an employee of the applicant or that body corporate, who, alone or
jointly with others, is responsible under the immediate authority of the directors for the conduct of the whole of the
insurance business of the applicant or that body corporate.

(3) In relation to an applicant incorporated outside Hong Kong-
(a) the reference in subsection (1)(a) to a managing director of the applicant includes a reference to a

person who is a managing director of the applicant in respect of so much of its insurance business as is
carried on within Hong Kong; and

(b) the reference in subsection (1)(b) to a chief executive of the applicant includes a reference to a person
employed by the applicant who, alone or jointly with others, is responsible (whether or not under the
immediate authority of the directors) for the conduct of the whole of the insurance business carried on
by the applicant within Hong Kong, not being a person who-
(i) is also responsible for the conduct of insurance business carried on by the applicant elsewhere;

and
(ii) has a subordinate who is responsible for the whole of the insurance business carried on by the

applicant within Hong Kong.
(4) In this section "associate" (相聯者), in relation to any person, means-

(a) the wife or husband or minor child of that person;
(b) any body corporate of which that person is a director;
(c) any person who is an employee or partner of that person;
(d) if that person is a body corporate-

(i) any director of that body corporate;
(ii) any subsidiary of that body corporate;
(iii) any director or employee of any such subsidiary,

and for the purposes of this subsection "child" includes a step-child.

Section: 10 Meaning of "relevant amount" (有關數額) in section 8(3) 30/06/1997


(1) Subject to subsection (1A), the relevant amount in the case of a company carrying on or intending to carry
on general business only shall be the amount applicable to that company according to the following Table- (Amended
25 of 1994 s. 5; 29 of 1997 s. 4)


TABLE


Case Amount Applicable




Cap 41 - Insurance Companies Ordinance 14

1. The relevant premium income of the company in its
last preceding financial year, or the relevant claims
outstanding of the company as at the end of its last
preceding financial year, whichever is the greater, did
not exceed $50 million or its equivalent.



$10 million or its equivalent.

2. The said income in that year, or the said claims
outstanding as at the end of that year, whichever is
the greater, exceeded $50 million but did not exceed
$200 million or its equivalent.



One-fifth of the said income in that year, or one-fifth of
the said claims outstanding at the end of that year, as
the case may be.

3. The said income in that year, or the said claims
outstanding as at the end of that year, whichever is
the greater, exceeded $200 million; or its equivalent.

The aggregate of $40 million and-
(a) one-tenth of the amount by which the said income

in that year exceeded $200 million; or
(b) one-tenth of the amount by which the said claims

outstanding as at the end of that year exceeded
$200 million,

as the case may be, or its equivalent.


In the case of a company referred to in section 8(3)(b)(iii), the amount applicable shall be not less than $20000000 or
its equivalent. (Replaced 35 of 1996 s. 5)

(1A) The relevant amount in the case of a company carrying on or intending to carry on business as a captive
insurer shall be the amount applicable to that company according to the following Table-


TABLE


Case Amount Applicable


1. The net premium income of the company in its last

preceding financial year, or the net claims
outstanding of the company as at the end of its last
preceding financial year, whichever is the greater, did
not exceed $40 million or its equivalent.



$2 million or its equivalent.

2. The said income in that year, or the said claims
outstanding as at the end of that year, whichever is
the greater, exceeded $40 million or its equivalent.



5% of the said income in that year, or 5% of the said
claims outstanding as at the end of that year, as the
case may be.


(Added 29 of 1997 s. 4)
(2) The relevant amount in the case of a company carrying on or intending to carry on long term business only,

if any part of the long term business carried on or intended to be carried on is of a nature other than that specified in
class G or H in Part 2 of the First Schedule, is $2000000 or its equivalent. (Amended 25 of 1994 s. 5)

(3) The relevant amount in the case of a company carrying on or intending to carry on both general business
and long term business is the aggregate of the following amounts- (Amended 25 of 1994 s. 5)

(a) the amount which, if subsection (1) applied, would be the relevant amount in the case of that company
having regard only to its general business; and

(b) if any part of the long term business carried on or intended to be carried on is of a nature other than
that specified in class G or H in Part 2 of the First Schedule, $2000000 or its equivalent. (Amended 59
of 1993 s. 4)

(4) For the purposes of this section-
(a) in the case of a company whose last preceding financial year was not a period of 12 months, the

premium income in that financial year shall be deemed to be the sum obtained by dividing the amount
of premiums receivable in that financial year by the number of days in that financial year and
multiplying the result by 365;

(b) the relevant premium income of a company in any financial year shall be whichever is the greater of



Cap 41 - Insurance Companies Ordinance 15

the following amounts-
(i) an amount equal to 50% of the gross premium income of the company in that financial year;
(ii) the amount obtained by deducting from its gross premium income the amount of any premiums

payable by the company in respect of reinsurance;
(ba) in the case of a company carrying on or intending to carry on business as a captive insurer, the net

premium income of such company in any financial year shall be the amount obtained by deducting
from its gross premium income the amount of any premiums payable by the company in respect of
reinsurance; (Added 29 of 1997 s. 4)

(bb) in the case of a company carrying on or intending to carry on business as a captive insurer, the net
claims outstanding of such company as at the end of a financial year shall be-
(i) where no class of the general business of the company is accounted for on a fund accounting

basis, the aggregate of the following-
(A) the amount of claims outstanding after deducting any amount recoverable from reinsurers

thereon; and
(B) the additional amount for unexpired risks;

(ii) where all classes of the general business of the company are accounted for on a fund accounting
basis, the fund; or

(iii) where part of the general business of the company is accounted for on a fund accounting basis,
the aggregate of the following-
(A) in respect of that part, the fund; and
(B) in respect of the other part of that business-

(I) the amount of claims outstanding after deducting any amount recoverable from
reinsurers thereon; and

(II) the additional amount for unexpired risks; (Added 29 of 1997 s. 4)
(c) the gross premium income of a company in any financial year shall the amount of premiums receivable

in that financial year in respect of all insurance business other than long term business;
(d) the relevant claims outstanding of a company as at the end of a financial year shall be-

(i) where no class of the general business of the company is accounted for on a fund accounting
basis, the aggregate of the following-
(A) an amount equal to 50% of the claims outstanding before deducting any amount

recoverable from reinsurers thereon, or the amount of claims outstanding after deducting
any amount recoverable from reinsurers thereon, whichever is the greater; and

(B) the additional amount for unexpired risks;
(ii) where all classes of the general business of the company are accounted for on a fund accounting

basis, the fund;
(iii) where part of the general business of the company is accounted for on a fund accounting basis,

the aggregate of the following-
(A) in respect of that part, the fund;
(B) in respect of the other part of that business-

(I) an amount equal to 50% of the claims outstanding before deducting any amount
recoverable from reinsurers thereon, or the amount of claims outstanding after
deducting any amount recoverable from reinsurers thereon, whichever is the greater;
and

(II) the additional amount for unexpired risks; (Added 35 of 1996 s. 5)
(e) "additional amount for unexpired risks" (未過期風險的額外款額), "claims outstanding" (未決申

索) and "fund" (基金) have the meanings respectively assigned to them in paragraph 1(1) of Part 1 of
the Third Schedule. (Added 35 of 1996 s. 5)

(5) In subsection (4)(a) and (c) "premiums receivable" (可收取保費), in relation to a financial year, means the
premiums paid or payable to an insurer in respect of contracts written or renewed in that financial year before
deducting commissions of agents or brokers but after deducting any discounts specified in policies or refunds of
premiums made in respect of any termination or reduction of risks.




Cap 41 - Insurance Companies Ordinance 16

Section: 11 Appeal against refusal of authorization under section 8(2) 30/06/1997


(1) Where the Insurance Authority refuses to authorize a company under section 8 on the ground (or, if more
than one, on grounds which include the ground) that any person as mentioned in subsection (2) of that section is not a
fit and proper person to hold the position held by him, the Insurance Authority shall notify the company in writing of
that fact and the name of the person whose fitness is in question.

(2) Where notice of a refusal is given to a company under subsection (1), a copy thereof shall at the same time
be sent by registered post to the person whose fitness is in question; and if the company or that person is aggrieved by
such refusal the company or that person may, within 1 month from the date of the notice, appeal in writing against
such refusal so far as it is based on section 8(2) to the Financial Secretary, who shall review the Insurance Authority's
reasons for such refusal and whose decision shall be final; but his decision shall not affect such refusal so far as it is
based on any additional ground under section 8(1)(b). (Amended 41 of 1987 s. 3)

(3) Where the Insurance Authority refuses to authorize a company under section 8(1)(b)(ii), the Insurance
Authority shall notify the company in writing of that refusal. (Added 41 of 1987 s. 3)

(4) Where notice of a refusal is given to a company under subsection (3) and the company is aggrieved by such
refusal, it may, within 1 month from the date of the notice, appeal in writing against such refusal to the Financial
Secretary, who shall review the Insurance Authority's reasons for such refusal and whose decision shall be final; but
his decision shall not affect any refusal under section 8(1)(b)(i). (Added 41 of 1987 s. 3)

Section: 12 Conditions imposed under section 8 may be revoked 30/06/1997


(1) Where any authorization is granted subject to conditions imposed under section 8(1)(a), the Insurance
Authority may revoke any such conditions by notice in writing given to the insurer concerned.

(2) Any condition referred to in subsection (1) which was in effect immediately before the commencement of
the Insurance Companies (Amendment) Ordinance 1988 (34 of 1988) shall continue to have effect until it is revoked
under that subsection.

(3) Where any condition referred to in subsection (1) is revoked under that subsection, the Insurance Authority
may direct that any matters recorded in respect of that condition in the register kept under section 5 shall be erased.

(Replaced 34 of 1988 s. 3)

Section: 13 Fee payable upon authorization and annually thereafter 30/06/1997


(1) Every authorized insurer shall pay the prescribed fees to the Insurance Authority-
(a) not later than the date on which it is authorized; and
(b) annually upon the anniversary of such date. (Replaced 50 of 1992 s. 2)

(2) Subsection (1) shall apply to an insurer deemed by virtue of section 61(1) to be authorized under section 8
to carry on insurance business as if-

(a) paragraph (a) were omitted; and
(b) in paragraph (b), for "such date" there were substituted "the date on which it was first authorized to

carry on insurance business under any Ordinance repealed or amended by this Ordinance".
(3) Where it appears to the Insurance Authority that an authorized insurer does not intend to effect any

contracts of insurance after any anniversary referred to in subsection (1), the Insurance Authority may waive the
payment of the fee payable by the insurer under that subsection in respect of that and any subsequent anniversary; but
any such waiver may be revoked at any time by the Insurance Authority by notice in writing to the insurer, with effect
from the date of such notice.

Section: 13A Approval of appointment by authorized insurer of certain

controllers
30/06/1997



(1) In this section-
"controller" (控權人) , in relation to an authorized insurer-

(a) incorporated in Hong Kong, means a person who is a managing director or chief executive of the
insurer under section 9; and

(b) incorporated outside Hong Kong, means a person who is-



Cap 41 - Insurance Companies Ordinance 17

(i) a managing director of the insurer by virtue of section 9(3)(a); or
(ii) a chief executive of the insurer by virtue of section 9(3)(b); (Amended 59 of 1993 s. 5)

"notice of objection" (反對通知書 ) means a notice in writing objecting to the proposed appointment by an
authorized insurer of a person, specified in that notice, as a controller of the insurer.
(2) Subject to section 38B(4), no authorized insurer shall appoint a person as a controller of the insurer unless-

(Amended 51 of 1992 s. 4)
(a) the insurer has served on the Insurance Authority a notice in writing stating that it proposes to appoint

that person as such a controller and containing the information specified in the Fourth Schedule; and
(b) one of the following occurs-

(i) the Insurance Authority has, before the expiration of 3 months from the date of service of that
notice, notified the insurer in writing that there is no objection to that person being appointed as
such a controller;

(ii) the period referred to in subparagraph (i) has expired without the Insurance Authority having
served on the insurer a preliminary notice referred to in subsection (5); or (Amended 35 of 1996
s. 6)

(iii) where a preliminary notice referred to in subsection (5) is served on the insurer-
(A) the Insurance Authority has, before the expiration of 2 months from the date of service of

the preliminary notice, notified the insurer in writing that there is no objection to the
appointment; or

(B) the period referred to in sub-subparagraph (A) has expired without the Insurance Authority
having served on the insurer a notice of objection. (Added 35 of 1996 s. 6)

(3) No person appointed as a controller of an insurer in contravention of subsection (2) shall act or continue to
act as such a controller.

(4) A notice served by an insurer under subsection (2)(a) shall contain a statement signed by the person
proposed to be appointed as a controller that it is served with his knowledge and consent.

(5) The Insurance Authority may serve a notice of objection on an insurer on the ground that it appears to him
that the person proposed to be appointed as a controller is not a fit and proper person to be so appointed, but before
serving such a notice the Insurance Authority shall serve on the insurer and on that person a preliminary notice in
writing stating-

(a) that the Insurance Authority is considering the service on the insurer of a notice of objection on that
ground; and

(b) that the insurer and that person may, within 1 month from the date of service of the preliminary notice,
make representations in writing to the Insurance Authority and, if the insurer or that person so
requests, oral representations to a public officer appointed for the purpose by the Insurance Authority.

(6) The Insurance Authority shall not be obliged to disclose to the insurer or to the person proposed to be
appointed as a controller any particulars of the ground on which he is considering the service on the insurer of a notice
of objection.

(7) Where representations are made in accordance with subsection (5)(b), the Insurance Authority shall take
them into consideration before serving the notice of objection concerned.

(8) If the insurer or the person concerned is aggrieved by the decision of the Insurance Authority to serve a
notice of objection on the insurer, the insurer or person concerned may, within 1 month from the date on which the
notice is served, appeal against the decision to the Financial Secretary whose decision shall be final.

(9) Any authorized insurer which fails to comply with subsection (2) commits an offence and is liable to a fine
of $200000. (Amended 35 of 1996 s. 6)

(10) Any person who fails to comply with subsection (3) commits an offence and is liable to a fine of $200000
and, in the case of an individual, to imprisonment for 2 years, together with a fine of $2000 for each day on which the
offence continues. (Amended 35 of 1996 s. 6)

(Added 44 of 1990 s. 3)

Section: 13B Approval of persons proposing to become certain

controllers of authorized insurer
30/06/1997



(1) In this section-
"controller" (控權人), in relation to an authorized insurer, means a person who, alone or with any associate within the



Cap 41 - Insurance Companies Ordinance 18

meaning of section 9(4) or through a nominee, is entitled to exercise, or control the exercise of, 15% or more of
the voting power at any general meeting of the insurer;

"notice of objection" (反對通知書) means a notice in writing objecting to the person specified in that notice
becoming a controller, or being a controller, as the case may be, of the authorized insurer specified in that notice.
(2) No person shall become a controller of an authorized insurer incorporated in Hong Kong unless-

(a) he has served on the Insurance Authority a notice in writing stating that he proposes to become a
controller of that insurer and containing the information specified in the Fifth Schedule; and

(b) one of the following occurs-
(i) the Insurance Authority has, before the expiration of 3 months from the date of service of that

notice, notified him in writing that there is no objection to his becoming a controller of the
insurer;

(ii) the period referred to in subparagraph (i) has expired without the Insurance Authority having
served on him a preliminary notice referred to in subsection (4); or (Amended 35 of 1996 s. 7)

(iii) where a preliminary notice referred to in subsection (4) is served on the person-
(A) the Insurance Authority has, before the expiration of 2 months from the date of service of

the preliminary notice, notified the person in writing that there is no objection to his
becoming a controller of the insurer; or

(B) the period referred to in sub-subparagraph (A) has expired without the Insurance Authority
having served on him a notice of objection. (Added 35 of 1996 s. 7)

(3) Where a person-
(a) becomes a controller of an insurer in contravention of subsection (2);
(b) did not know that the acts or circumstances by virtue of which he became such a controller were such

as to have that effect; and
(c) subsequently becomes aware of the fact that he has become such a controller,

he shall serve on the Insurance Authority, not later than 14 days after becoming aware of that fact, a notice in writing
stating that he has become such a controller and containing the information specified in the Sixth Schedule.

(4) The Insurance Authority may serve a notice of objection on a person on the ground that it appears to him
that the person is not a fit and proper person to become a controller, or to be a controller, as the case may be, of the
insurer concerned, but before serving such a notice the Insurance Authority shall serve on that person a preliminary
notice in writing stating-

(a) that the Insurance Authority is considering the service on him of a notice of objection on that ground;
and

(b) that he may, within 1 month from the date of service of the preliminary notice, make written
representations to the Insurance Authority and, if he so requests, oral representations to a public officer
appointed for the purpose by the Insurance Authority.

(5) The Insurance Authority shall not be obliged to disclose to a person any particulars of the ground on which
he is considering the service on him of a notice of objection.

(6) Where representations are made in accordance with subsection (4)(b), the Insurance Authority shall take
them into consideration before serving the notice of objection concerned.

(7) If a person is aggrieved by the decision of the Insurance Authority to serve a notice of objection on him, he
may, within 1 month from the date on which the notice is served, appeal against the decision to the Financial Secretary
whose decision shall be final.

(8) No transaction relating to the acquisition of voting power in an insurer shall be void or voidable by reason
only of a contravention of subsection (2).

(9) Subject to subsection (10), any person who fails to comply with subsection (2) commits an offence and is
liable to a fine of $200000 and, in the case of an individual, to imprisonment for 2 years. (Amended 35 of 1996 s. 7)

(10) Where a person is charged with an offence under subsection (9), it shall be a defence to prove that he did
not know that the acts or circumstances by virtue of which he became a controller of the insurer concerned were such
as to have that effect.

(11) Any person who fails to comply with subsection (3) commits an offence and is liable to a fine of $200000
and, in the case of an individual, to imprisonment for 2 years, together with a fine of $2000 for each day on which the
offence continues. (Amended 35 of 1996 s. 7)

(Added 44 of 1990 s. 3)




Cap 41 - Insurance Companies Ordinance 19

Section: 13C Restrictions on and sale of shares where there has been a
contravention of section 13B(2)

25 of 1998 01/07/1997



Remarks:
Adaptation amendments retroactively made - see 25 of 1998 s. 2


(1) The powers conferred by this section shall be exercisable where a person has become a controller of an
insurer in contravention of section 13B(2) in that-

(a) a notice in writing has been served under section 13B(2)(a) on the Insurance Authority by that person
in respect of that insurer but none of the events specified in section 13B(2)(b) has occurred; (Amended
35 of 1996 s. 8)

(b) no notice in writing has been served under section 13B(3) on the Insurance Authority by that person in
respect of that contravention;

(c) a notice in writing has been served under section 13B(3) on the Insurance Authority by that person in
respect of that contravention, the Insurance Authority has served a notice of objection under section
13B(4) on that person in respect of that contravention, and either-
(i) the period specified in section 13B(7) within which that person may appeal against the decision

of the Insurance Authority to so serve such notice of objection has expired without any such
appeal having been made; or

(ii) an appeal under section 13B(7) by that person against the decision of the Insurance Authority to
so serve such notice of objection is unsuccessful; or

(d) that person has been convicted of an offence under section 13B(9) in respect of that contravention.
(2) Subject to subsection (6), the Insurance Authority may by notice in writing served on the person concerned

direct that any specified shares to which this section applies shall, until further notice, be subject to one or more of the
following restrictions-

(a) any transfer of those shares or, in the case of unissued shares, any transfer of the right to be issued with
them, and any issue of such shares, shall be void;

(b) no voting rights shall be exercisable in respect of the shares;
(c) no further shares shall be issued in right of them or in pursuance of any offer made to their holder;
(d) except in a liquidation, no payment shall be made of any sums due from the insurer on the shares,

whether in respect of capital or otherwise.
(3) Where shares are subject to the restrictions under subsection (2)(a), any agreement to transfer the shares or,

in the case of unissued shares, the right to be issued with them, shall be void.
(4) Where shares are subject to the restrictions under subsection (2)(c) or (d), an agreement to transfer any right

to be issued with other shares in right of those shares, or to receive any payment on them (otherwise than in a
liquidation) shall be void.

(5) Subject to subsection (7), the Court of First Instance may, on the application of the Insurance Authority,
order the sale of any specified shares to which this section applies and, if they are for the time being subject to any
restrictions under subsection (2), that they shall cease to be subject to those restrictions. (Amended 25 of 1998 s. 2)

(6) Where the Insurance Authority has, by virtue of subsection (1)(b), served a notice in writing under
subsection (2) on the person concerned and-

(a) that person has, not later than 14 days after the service of that notice, served a notice in writing under
section 13B(3) on the Insurance Authority in respect of the contravention of section 13B(2) to which
that first-mentioned notice relates; and

(b) one of the following occurs-
(i) the Insurance Authority has, before the expiration of 3 months from the date on which that notice

under section 13B(3) has been served on him, notified that person in writing that there is no
objection to his having become the controller, within the meaning of section 13B, to which that
contravention relates;

(ii) no preliminary notice of objection under section 13B(4) has been served by the Insurance
Authority on that person in respect of that contravention within 3 months from the date on which
the notice under section 13B(3) has been served on the Insurance Authority;

(iii) where a preliminary notice of objection under section 13B(4) has been served on the person in
respect of that contravention-
(A) the Insurance Authority has, before the expiration of 2 months from the date of service of



Cap 41 - Insurance Companies Ordinance 20

the preliminary notice, notified that person in writing that there is no objection to his
having become the controller, within the meaning of section 13B, to which that
contravention relates; or

(B) the period referred to in sub-subparagraph (A) has expired without the Insurance Authority
having served on that person a notice of objection under section 13B(4) in respect of that
contravention; or

(iv) a notice of objection has been so served within the period referred to in subparagraph (iii)(A) but
an appeal under section 13B(7) by that person against the decision of the Insurance Authority to
so serve such notice of objection is successful, (Replaced 35 of 1996 s. 8)

the Insurance Authority shall forthwith serve a notice in writing on that person to the effect that the first-mentioned
notice is revoked.

(7) The Insurance Authority shall not, by virtue of subsection (1)(b), make an application referred to in
subsection (5) unless-

(a) the application relates to shares which are the subject of a notice in writing under subsection (2); and
(b) the person upon whom that notice has been served has not, within 14 days after the service of that

notice, served a notice in writing under section 13B(3) in respect of the contravention of section
13B(2) to which that first-mentioned notice relates:

Provided that this subsection shall be without prejudice to the Insurance Authority's power, by virtue of
subjection (1)(c), to subsequently make such an application in respect of those shares.

(8) Where an order has been made under subsection (5) the Court of First Instance may, on the application of
the Insurance Authority, make such further order relating to the sale or transfer of the shares as it thinks fit. (Amended
25 of 1998 s. 2)

(9) Where shares are sold in pursuance of an order under this section the proceeds of the sale, less the costs of
the sale, shall be paid into court for the benefit of the persons beneficially interested in them, and any such person may
apply to the Court of First Instance for an order that the whole or part of the proceeds to be paid to him. (Amended 25
of 1998 s. 2)

(10) This section applies to all the shares by virtue of which a person who has become a controller of an insurer
in contravention of section 13B(2) is, whether alone or with any associate within the meaning of section 9(4) or
through a nominee, entitled to exercise, or control the exercise of, the voting power at any general meeting of the
insurer, but does not include any such shares held by that person, or any such associate or nominee, before that person
became such a controller.

(11) A copy of a notice in writing served under subsection (2) or (6) on the person concerned shall be served on
the insurer to whose shares it relates and, if it relates to shares held by an associate within the meaning of section 9(4),
or a nominee, of that person, on that associate or nominee, as the case may be.

(Added 44 of 1990 s. 3)

Section: 13D Punishment for attempted evasion of restrictions 30/06/1997


(1) A person commits an offence and is liable to a fine at level 4 and to imprisonment for 6 months if he-
(a) exercises or purports to exercise any right to dispose of any shares which, to his knowledge, are for the

time being subject to any restrictions under section 13C(2) or of any right to be issued with any such
shares;

(b) votes in respect of any such shares (whether as holder or proxy), or appoints a proxy to vote in respect
of them;

(c) being the holder of any such shares, fails to notify of their being subject to those restrictions any
person whom he does not know to be aware of that fact but does know to be entitled (apart from the
restrictions) to vote in respect of those shares whether as holder or as proxy; or

(d) being the holder of any such shares, or being entitled to any right to be issued with other shares in right
of them, or to receive any payment on them (otherwise than in a liquidation), enters into any agreement
which is void under section 13C(3) or (4).

(2) Where shares in an insurer are issued in contravention of restrictions under section 13C(2), or payments are
made by an insurer in contravention of such restrictions, the insurer commits an offence and is liable to a fine at level
4 and, in the case of an individual who commits the like offence by virtue of section 57, to imprisonment for 6 months.

(Added 44 of 1990 s. 3. Amended 35 of 1996 s. 9)




Cap 41 - Insurance Companies Ordinance 21

Section: 14 Notification of change in particulars, and objection to
appointment of new director or controller

30/06/1997



(1) Without prejudice to subsection (2), but subject to sections 38A(2) and 38B(5), where any change takes
place in the particulars specified in respect of an authorized insurer in the application made by that insurer under
section 7 or any information furnished under that section, the insurer shall, within 1 month from the date on which the
change takes place, notify the Insurance Authority thereof in writing and shall furnish the Insurance Authority with
such information in respect thereof as the Insurance Authority may require. (Amended 51 of 1992 s. 5)

(2) Subject to subsection (2A) and sections 38A(2) and 38B(5), where any change takes place in the directors
or controllers of an authorized insurer, the insurer shall forthwith deliver written notice of that fact to the Insurance
Authority containing the information specified in the Second Schedule. (Amended 44 of 1990 s. 4; 51 of 1992 s. 5)

(2A) Without limiting the generality of subsection (3), an authorized insurer is not required to furnish to the
Insurance Authority information referred to in Form A or B of the Second Schedule in respect of any change in the
controllers of the insurer which is the result of a person becoming, or being, such a controller where-

(a) section 13A or 13B applied in relation to that person becoming, or being, such a controller;
(b) that person has become, or is, such a controller in accordance with section 13A or 13B; and
(c) there has been no change in any information furnished to the Insurance Authority under section 13A or

13B in relation to that person becoming, or being, such a controller. (Added 44 of 1990 s. 4)
(3) Subject to sections 38A(2) and 38B(5), where any person becomes or ceases to be a director or controller of

any authorized insurer, he shall forthwith deliver written notice of that fact to the insurer together with such
information relating to himself as may be necessary to enable the insurer to comply with subsection (2) as respects that
fact. (Amended 51 of 1992 s. 5)

(4) Subject to subsection (5) and section 38B(4), the Insurance Authority may, if it appears to him that any
person appointed as director or controller (other than a controller to whom section 13A or 13B applies) of an
authorized insurer is not a fit and proper person to be appointed to that position, serve a notice in writing on the insurer
stating- (Amended 44 of 1990 s. 4; 51 of 1992 s. 5)

(a) that he objects to the appointment; and
(b) that he objects thereto on the ground that it appears to him that the person so appointed is not a fit and

proper person to be appointed to the position in question.
(5) The following provisions shall apply in relation to a notice of objection referred to in subsection (4)-

(a) the Insurance Authority shall serve on the insurer and the person concerned a preliminary written
notice stating-
(i) that the Insurance Authority is considering the service on the insurer of a notice of objection

under that subsection on the ground referred to in paragraph (b) thereof;
(ii) that the insurer and that person may, within 1 month from the date of service of the preliminary

notice, make written representations to the Insurance Authority and, if the insurer or that person
so requests, oral representations to a public officer appointed for the purpose by the Insurance
Authority; (Amended 44 of 1990 s. 4)

(b) the Insurance Authority shall not be obliged to disclose to the insurer or to that person any particulars
of the ground on which he is considering the service on the insurer of the notice of objection;

(c) where representations are made under paragraph (a)(ii), the Insurance Authority shall take them into
consideration before serving the notice of objection.

(6) If the insurer or the person concerned is aggrieved by the decision of the Insurance Authority to serve a
notice of objection under this section, the insurer or person concerned may, within 1 month from the date on which the
notice is served on the insurer or person concerned as the case may be, appeal against the decision to the Financial
Secretary whose decision shall be final.

(7) (Repealed 50 of 1992 s. 3)
(8) Any person who fails to comply with subsection (1), (2) or (3) commits an offence and is liable to a fine of

$200000 and, in the case of an individual, to imprisonment for 2 years, together with a fine of $2000 for each day on
which the offence continues. (Amended 35 of 1996 s. 10)

Part: III ACCOUNTS AND STATEMENTS 30/06/1997






Cap 41 - Insurance Companies Ordinance 22

Section: 15 Appointment of auditor and actuary L.N. 163 of 2013 03/03/2014


(1) Every insurer shall appoint-
(a) as auditor of the insurer-

(i) a person who is qualified for appointment as auditor of a company under the Professional
Accountants Ordinance (Cap 50) and is not disqualified under section 393 of the Companies
Ordinance (Cap 622); or (Amended 28 of 2012 ss. 912 & 920)

(ii) in the case of an insurer incorporated outside Hong Kong, a person-
(A) who may lawfully practise as an auditor in the place of its incorporation; and
(B) without prejudice to sub-subparagraph (A), who holds such qualification as the Insurance

Authority accepts as being of a standard comparable to that of a person referred to in
subparagraph (i); and (Replaced 59 of 1993 s. 6)

(iii) (Repealed 59 of 1993 s. 6)
(b) if the insurer carries on long term business, an actuary possessing the prescribed qualifications or who

is acceptable to the Insurance Authority, as actuary to the insurer,
and whenever any such appointment comes to an end the insurer shall as soon as practicable make a fresh
appointment.

(2) A first appointment made-
(a) under subsection (1)(a) shall be made-

(i) if the insurer is carrying on insurance business at the commencement of this Ordinance, within 1
month from such commencement; or

(ii) if the insurer begins to carry on insurance business after such commencement, within 1 month
from beginning to do so; and

(b) under subsection (1)(b) shall be made-
(i) if the insurer is carrying on long term business at the commencement of this Ordinance, within 1

month from such commencement;
(ii) if the insurer begins to carry on long term business after such commencement, within 1 month

from beginning to do so.
(3) An insurer making an appointment under subsection (1) shall within 1 month from making the appointment

serve on the Insurance Authority a notice in writing stating that fact and the name and qualifications of the person
appointed.

(4) (Repealed 59 of 1993 s. 6)
(5) Any insurer which fails to comply with any of the provisions of this section commits an offence and is

liable to a fine at level 4, together with a further fine of $1000 for each day on which the offence continues.
(Amended 59 of 1993 s. 6; 35 of 1996 s. 11)

Section: 15A Notification in respect of auditors appointed under section

15
L.N. 163 of 2013 03/03/2014



(1) An insurer shall immediately give written notice to the Insurance Authority if-
(a) the insurer decides to remove or replace an auditor appointed under section 15;
(b) a person appointed under section 15 to be the auditor of the insurer ceases to be such auditor otherwise

than in consequence of a decision referred to in paragraph (a); or
(c) in relation to an insurer incorporated in Hong Kong-

(i) the insurer either-
(A) proposes to give special notice to its shareholders of a resolution removing an auditor

appointed under section 395, 396, 397 or 398 of the Companies Ordinance (Cap 622) or
deemed to be reappointed under section 403 of that Ordinance before the expiration of his
term of office; or

(B) gives notice to its shareholders of a resolution replacing an auditor so appointed or deemed
to be reappointed at the expiration of his term of office; and

(ii) the auditor so appointed or deemed to be reappointed has also been appointed under section 15 to
be the auditor of the insurer. (Amended 28 of 2012 ss. 912 & 920)

(2) An auditor appointed under section 15 and, in the case of paragraph (c), an auditor appointed under
paragraph 4(1A) of Part 1 of the Third Schedule, by an insurer shall immediately give written notice to the Insurance



Cap 41 - Insurance Companies Ordinance 23

Authority if he- (Amended 26 of 1994 s. 3)
(a) resigns;
(b) where he has been so appointed for a fixed term, decides not to seek reappointment; or
(c) decides to add a qualification or adverse statement to his report annexed to the accounts and statements

of the insurer required to be submitted under the Third Schedule. (Amended 26 of 1994 s. 3)
(3) Any insurer which fails to comply with subsection (1) commits an offence and is liable to a fine at level 4,

together with a further fine of $1000 for each day on which the offence continues. (Amended 35 of 1996 s. 12)
(4) Where a person is charged with an offence under subsection (3), it shall be a defence if the person charged

proves that he took all reasonable precautions and exercised all due diligence to avoid the commission of the offence.
(Added 59 of 1993 s. 7)


Section: 15B Notification in respect of actuaries appointed under section

15
30/06/1997



(1) An insurer which carries on long term business shall immediately give written notice to the Insurance
Authority if-

(a) the insurer decides to remove or replace an actuary appointed under section 15; or
(b) a person appointed under section 15 to be the actuary of the insurer ceases to be such actuary otherwise

than in consequence of a decision referred to in paragraph (a).
(2) An actuary appointed under section 15 by an insurer shall immediately give written notice to the Insurance

Authority-
(a) if he resigns;
(b) where he has been so appointed for a fixed term, decides not to seek reappointment; or
(c) if-

(i) he has advised the insurer that, in his view, a course of action is being, or is proposed to be,
followed by the insurer which is likely to cause him to add a qualification or adverse
amplification or adverse explanation to his certificate accompanying the information required to
be submitted under the Third Schedule in respect of the long term business of the insurer; and

(ii) after the insurer has had, in the opinion of the actuary, a reasonable time within which to act on
that advice, that course of action is still being, or is still proposed to be, followed by the insurer.

(3) Any insurer which fails to comply with subsection (1) commits an offence and is liable to a fine at level 4,
together with a fine of $1000 for each day on which the offence continues. (Amended 35 of 1996 s. 13)

(4) Where a person is charged with an offence under subsection (3), it shall be a defence if the person charged
proves that he took all reasonable precautions and exercised all due diligence to avoid the commission of the offence.

(Added 59 of 1993 s. 7)

Section: 15C Standards to be complied with by an actuary 31 of 2000 02/06/2000


An actuary appointed under section 15(1)(b) shall comply with the prescribed standards or other standards as the
Insurance Authority accepts as being comparable to the prescribed standards.

(Added 31 of 2000 s. 2)

Section: 16 Keeping and preserving of proper books of account L.N. 163 of 2013 03/03/2014


(1) Without prejudice to the Companies Ordinance (Cap 622) and the Companies (Winding Up and
Miscellaneous Provisions) Ordinance (Cap 32), every insurer shall cause to be kept proper books of account which
may be kept either in a legible form or in a non-legible form capable of being reproduced in a legible form; but where
any such books are kept otherwise than by making entries in a bound book, adequate precautions shall be taken for
guarding against falsification and facilitating its discovery. (Amended 28 of 2012 ss. 912 & 920)

(2) Proper books of account, for the purposes of this section, are books of account which (in themselves or, if
kept under subsection (1) otherwise than in a legible form, as reproduced in a legible form) sufficiently exhibit and
explain all transactions entered into by the insurer in the course of any business carried on by the insurer.

(3) If any books of account required to be kept by this section are kept by an insurer by recording the matters in
question otherwise than in a legible form, any power conferred by this Ordinance to require production of such books
or to take copies thereof or extracts therefrom shall be construed as including power to require production of, and to



Cap 41 - Insurance Companies Ordinance 24

take away, a reproduction of the recording or of the relevant part of it in a legible form.
(4) Any books of account required to be kept by this section shall be preserved by the insurer for 7 years from

the end of the financial year to which the last entry made or matter recorded therein relates.

Section: 17 Submission of financial information 30/06/1997


(1) Every insurer shall, in accordance with section 20, submit to the Insurance Authority accounts, statements
and other information as required by the Third Schedule, and the information so submitted shall be in accordance with
section 8(4). (Amended 25 of 1994 s. 6)

(2) The Insurance Authority may, at the request in writing of an insurer, modify or vary any of the requirements
of the Third Schedule in relation to that insurer in such respects and for such period as the Insurance Authority and the
insurer may agree; and during any period when any such modification or variation is in force, the reference in
subsection (1) to the Third Schedule shall, as respects that insurer, be construed as a reference to that Schedule as so
modified or varied.

(3) Where under subsection (2) the Insurance Authority modifies or varies any of the requirements of the Third
Schedule in relation to an insurer, he shall, as soon as practicable, publish a notice in the Gazette stating the name of
the insurer and the fact that that Schedule has been modified or varied under subsection (2) in relation to that insurer.

Section: 18 Periodic actuarial investigation of insurer with long term

business
30/06/1997



(1) Any insurer which carries on long term business-
(a) shall, once in every 12 months or at such shorter intervals as the Insurance Authority may require,

cause an investigation to be made into its financial condition in respect of that business including a
valuation of its liabilities in respect thereof, by the person who for the time being is its actuary under
section 15(1); and (Amended 8 of 1989 s. 4)

(b) when such an investigation has been made, or when at any other time an investigation into the
financial condition of the insurer in respect of its long term business has been made with a view to the
distribution of profits, or the results of which are made public, shall cause an abstract of the actuary's
report of the investigation to be made in the form specified in the Third Schedule and shall submit such
abstract to the Insurance Authority in accordance with section 20.

(2) Where under subsection (1) an insurer causes an abstract to be made of the report of an actuary on his
investigation into the financial condition of the insurer in respect of its long term business, the insurer shall prepare a
statement containing the information specified in the Third Schedule in respect of its long term business at the date to
which the accounts of the insurer are made up for the purposes of the investigation and shall submit such statement to
the Insurance Authority in accordance with section 20.

(3) For the purposes of any investigation to which this section applies the value of any assets and the amount of
any liabilities shall be determined in accordance with section 8(4). (Amended 25 of 1994 s. 7)

Section: 19 Statements of transactions of prescribed class or

description
L.N. 163 of 2013 03/03/2014



(1) Classes or descriptions of agreements or arrangements appearing to the Insurance Authority as likely to be
undesirable in the interests of policy holders may be prescribed for the purposes of this section, and every insurer
which enters into an agreement or arrangement of a class or description so prescribed shall, within such period as may
be prescribed, furnish the Insurance Authority with a statement containing such particulars of that agreement or
arrangement as may be prescribed. (Amended 25 of 1994 s. 8)

(2) Different classes or descriptions of agreements or arrangements may be prescribed for the purposes of this
section in relation to insurers of different classes or descriptions.

(3) The whole or any part of any statement furnished to the Insurance Authority under this section may be
deposited by him with the Registrar of Companies for registration and may be published by the Insurance Authority in
such ways as he thinks appropriate. (Amended 28 of 2012 ss. 912 & 920)




Cap 41 - Insurance Companies Ordinance 25

Section: 20 Deposit of accounts etc. with Insurance Authority 51 of 1999 23/07/1999


(1) Subject to subsection (1A), any account, balance sheet, abstract, certificate or statement of an insurer and
any report of the auditor thereof required to be submitted to the Insurance Authority under section 17 or 18 shall be in
legible form, and 2 copies shall be deposited with the Insurance Authority within 6 months after the close of the period
to which the account, balance sheet, abstract, certificate, statement or report relates: (Amended 51 of 1999 s. 2)

Provided that if in any case it is made to appear to the Insurance Authority that the circumstances are such that a
longer period than 6 months should be allowed, the Insurance Authority may extend that period by such period not
exceeding 3 months as he thinks fit.

(1A) Information required to be submitted under section 17 that is specified in Parts 8 and 9 of the Third
Schedule shall be submitted in accordance with subsection (1), except that the references in that subsection to 6
months shall be read as 4 months. (Added 51 of 1999 s. 2)

(2) One of the copies of any document deposited under subsection (1) except an auditor's report shall be a copy
signed-

(a) in any case-
(i) where there are more than 2 directors of the insurer, by at least 2 of those directors and, where

there are not more than 2 directors, by all the directors;
(ii) by a chief executive, if any, of the insurer or (if there is no chief executive) by the secretary; and

(b) in the case of an abstract or statement referred to in section 18, by the actuary who made the
investigation to which the abstract relates or by reference to which the statement was prepared.

(3) One of the copies of any auditor's report deposited under subsection (1) shall be a copy signed by the
auditor.

(4) The Insurance Authority shall consider the documents deposited under subsection (1), and if any such
document appears to him to be inaccurate or incomplete in any respect he may communicate with the insurer with a
view to the correction of any such inaccuracies and the supply of deficiencies.

(5) There shall be deposited with every balance sheet of an insurer any report on the affairs of the insurer
submitted to the shareholders or policy holders of the insurer in respect of the financial year to which the balance sheet
relates.

(6) In this section any reference to an account or balance sheet includes a reference to any statement or report
annexed thereto giving information required by virtue of section 17 to be so given and any certificate so annexed by
virtue of that section.

(7) Any insurer which fails to comply with any of the provisions of this section commits an offence and is
liable to a fine of $200000 together with a fine of $1000 for each day on which the offence continues. (Amended 35
of 1996 s. 14)

Section: 21 Documents to be deposited with Registrar of Companies L.N. 163 of 2013 03/03/2014


(1) Without prejudice to the Companies Ordinance (Cap 622), where an insurer which is a company submits to
the Insurance Authority any account, balance sheet, abstract, certificate or statement of the insurer or any report of the
auditor thereof required to be submitted under section 17 or 18, the insurer shall at the same time deposit a copy of
such document, except any such document required to be submitted by Part 8 or 9 of the Third Schedule, with the
Registrar of Companies for registration. (Amended 50 of 1992 s. 4; 26 of 1994 s. 4; 28 of 2012 ss. 912 & 920)

(2) Any insurer which fails to comply with subsection (1) commits an offence and is liable to a fine of
$200000. (Amended 35 of 1996 s. 15)

Part: IV LONG TERM BUSINESS 30/06/1997




Section: 22 Separation of assets and liabilities attributable to long
term business

30/06/1997



(1) Where an insurer carries on long term business, the insurer shall-
(a) maintain an account in respect of each of the following-

(i) that part of that business (if any) which consists of business other than business referred to in



Cap 41 - Insurance Companies Ordinance 26

subparagraphs (ii) and (iii); (Replaced 75 of 1995 s. 4)
(ii) that part of that business carried on in or from Hong Kong (if any) which is of the nature

specified in class G in Part 2 of the First Schedule; and (Amended 75 of 1995 s. 4)
(iii) that part of that business carried on in or from Hong Kong (if any) which is of the nature

specified in class H in Part 2 of the First Schedule; and (Amended 75 of 1995 s. 4)
(b) ensure that the receipts of that part of that business for which an account is maintained in pursuance of

paragraph (a) are-
(i) entered in that account; and
(ii) carried to and form a separate insurance fund with an appropriate name. (Replaced 59 of 1993 s.

8)
(1A) Where an insurer which carries on long term business is incorporated or formed outside Hong Kong, the

Insurance Authority may, at the request in writing of the insurer, authorize the insurer to maintain accounts of other
insurance business closely related to long term business or part thereof as part of the account maintained pursuant to
subsection (1)(a)(i). (Added 75 of 1995 s. 4)

(2) An insurer which carries on long term business shall maintain such books of account and other records as
are necessary for identifying-

(a) the assets representing each fund maintained by the insurer in respect of that business; and
(b) the liabilities attributable to that part of that business to which each fund referred to in paragraph (a)

relates. (Replaced 59 of 1993 s. 8)
(3) Any funds maintained by an insurer in respect of its long term business shall be so maintained that-

(a) in the case of a fund maintained in respect of that part of that business carried on in or from Hong
Kong which is of the nature specified in either class G or H in Part 2 of the First Schedule, the value of
the assets representing the fund (as determined in accordance with section 8 (4)) is in the aggregate not
less than the amount of the liabilities attributable to that part of that business (as so determined);
(Amended 25 of 1994 s. 9; 75 of 1995 s. 4)

(b) in the case of any other funds, the value of the assets representing those funds (as determined in
accordance with section 8(4))in the aggregate is not less than the greater of the following-
(i) the aggregate of-

(A) the amount of the liabilities attributable to those parts of that business to which the funds
relate (as so determined); and

(B) $2000000 or its equivalent; or
(ii) the aggregate of the amount of the liabilities attributable to those parts of that business to which

the funds relate (as so determined) and such amount as may be required to be held in such funds
in accordance with regulations made under section 59(1)(ab). (Replaced 59 of 1993 s. 8.
Amended 25 of 1994 s. 9; 29 of 1997 s. 5)

(4) (Repealed 59 of 1993 s. 8)
(5) Any insurer which fails to comply with any of the provisions of this section commits an offence and is

liable to a fine of $200000 together with a fine of $1000 for each day on which the offence continues. (Amended 35
of 1996 s. 16)

Section: 22A Foreign insurers may be authorized to maintain accounts

in relation to their Hong Kong business
30/06/1997



(1) Where an insurer which carries on long term business is incorporated or formed outside Hong Kong, the
Insurance Authority may, at the request in writing of the insurer, authorize the insurer to maintain accounts of long
term business carried on in or from Hong Kong in place of the accounts referred to in section 22(1) and, if such an
authorization is given, the insurer shall maintain accounts of long term business carried on in or from Hong Kong in
accordance with that authorization.

(2) The Insurance Authority may, in giving his authorization under subsection (1)-
(a) modify or vary any of the requirements of the Third Schedule in its application to the insurer as may be

appropriate; and
(b) specify the period within which the insurer shall, in accordance with the Third Schedule as modified or

varied under paragraph (a), make arrangements for identifying the assets and liabilities of the insurer
which are attributable to its long term business carried on in or from Hong Kong as on such day as
may be so specified. (Amended 75 of 1995 s. 5)



Cap 41 - Insurance Companies Ordinance 27

(3) Subject to the terms of any authorization under subsection (1) and to subsection (4), this Ordinance shall
continue to apply to an insurer in respect of whom such authorization is in force.

(4) Where an authorization under subsection (1) is in force in relation to any insurer, any references in-
(a) sections 22(1)(a) and (b), (2)(a) and (b) and (3), 23 and 45(2), (4A), (4B) and (5) to the long term

business of the insurer, or to the business of the insurer where this is to be construed as a reference to
its long term business, shall be construed as a reference to the long term business of the insurer carried
on in or from Hong Kong; (Amended 75 of 1995 s. 5)

(b) sections 22, 23 and 45 to a fund maintained by the insurer in respect of its long term business, shall be
construed as a reference to a fund maintained by the insurer in respect of its long term business carried
on in or from Hong Kong. (Amended 75 of 1995 s. 5)

(5) Where the Insurance Authority gives any authorization under subsection (1) he shall, as soon as practicable,
publish a notice in the Gazette stating the name of the insurer and the fact that such authorization has been given.

(Added 4 of 1987 s. 2. Amended 59 of 1993 s. 9)

Section: 23 Application of assets of insurer with long term business 30/06/1997


(1) Subject to subsections (2) and (3) and section 45(2), the assets representing a fund maintained by an insurer
in respect of its long term business shall be applicable only for the purposes of that part of that business to which the
fund relates. (Amended 59 of 1993 s. 10)

(2) Where in respect of an insurer's long term business it is shown, by an investigation to which section 18
applies or which is made in pursuance of a requirement under section 32-

(a) in the case of a fund maintained in respect of that part of that business which is of the nature specified
in either class G or H in Part 2 of the First Schedule, that the value of the assets representing the fund
exceeds the amount of the liabilities attributable to that part of that business; or

(b) in the case of any other funds, that the value of the assets representing the funds exceeds the greater of
the following-
(i) the aggregate of-

(A) the amount of the liabilities attributable to those parts of that business to which the funds
relate; and

(B) $2000000 or its equivalent; or
(ii) the aggregate of the amount of the liabilities so attributable and such amount as may be required

to be held in such funds in accordance with regulations made under section 59(1)(ab), (Amended
25 of 1994 s. 10; 29 of 1997 s. 6)

the restriction imposed by subsection (1) shall not apply to so much of those assets as represents the excess.
(Replaced 59 of 1993 s. 10)

(3) Nothing in subsection (1) shall preclude an insurer from exchanging, at fair market value, assets
representing a fund maintained by the insurer in respect of its long term business for other assets of the insurer.

(4) Any mortgage or charge shall be void to the extent to which it contravenes subsection (1).
(5) For the avoidance of doubt it is hereby declared that money from a fund maintained by an insurer in respect

of its long term business may not be used for the purposes of any other business of the insurer (including any long
term business to which that fund does not relate) notwithstanding any arrangement for its subsequent repayment out of
the receipts of that other business. (Amended 59 of 1993 s. 10)

(6) No insurer, and no body corporate of which an insurer is a subsidiary, shall declare a dividend to
shareholders at any time when the requirements of section 22(3) relating to any fund or funds maintained by the
insurer in respect of its long term business have ceased to be satisfied.

(7) Any insurer or body corporate which fails to comply with subsection (1) or (6) commits an offence and is
liable to a fine of $200000 together with a fine of $1000 for each day on which the offence continues. (Amended 35
of 1996 s. 17)

Section: 24 Sanction of Court of First Instance for transfer of long

term business
L.N. 163 of 2013 03/03/2014



(1) Where it is proposed to carry out a scheme under which the whole or part of the long term business carried
on in Hong Kong by an insurer ("the transferor company") is to be transferred to another insurer ("the transferee
company") the transferor company or transferee company may apply to the Court of First Instance, by petition, for an



Cap 41 - Insurance Companies Ordinance 28

order sanctioning the scheme.
(2) The Court of First Instance shall not determine an application under this section unless the petition is

accompanied by a report on the terms of the scheme by an independent actuary and the Court of First Instance is
satisfied that the requirements of subsection (3) have been complied with.

(3) The requirements referred to in subsection (2) are-
(a) that a notice has been published in the Gazette and, except where the Court of First Instance has

otherwise directed, in an English language newspaper and a Chinese language newspaper (being in
each case a newspaper specified in a list of newspapers approved by the Chief Secretary for
Administration for the purposes of this section) stating that the application has been made and giving
the address of the offices at which, and the period for which, copies of the documents mentioned in
paragraph (d) will be available as required by that paragraph; (Amended 34 of 1988 s. 4; 44 of 1990 s.
5; L.N. 362 of 1997)

(b) except where the Court of First Instance has otherwise directed, that a statement-
(i) setting out the terms of the scheme; and
(ii) containing a summary of the report mentioned in subsection (2) sufficient to indicate the opinion

of the actuary on the likely effects of the scheme on the long term policy holders of the insurers
concerned,

has been sent to each of those policy holders and to every member of those insurers;
(c) that a copy of the petition, of the report mentioned in subsection (2) and of any statement sent out

under paragraph (b) has been served on the Insurance Authority and that a period of not less than 21
days has elapsed since the date of service;

(d) that copies of the petition and of the report mentioned in subsection (2) have been open to inspection at
offices in Hong Kong of the insurers concerned or their representatives for a period of not less than 21
days beginning with the date of the first publication of a notice in accordance with paragraph (a).

(4) Each of the insurers concerned shall furnish a copy of the petition and of the report mentioned in subsection
(2) to any person who asks for one at any time before an order sanctioning the scheme is made on the petition.

(5) On any petition under this section-
(a) the Insurance Authority; and
(b) any person (including any employee of the transfer or company or the transferee company) who

alleges that he would be adversely affected by the carrying out of the scheme,
shall be entitled to be heard.

(6) The Court of First Instance shall not make an order sanctioning the scheme unless it is satisfied that the
transferee company is, or immediately after the making of the order will be, authorized to carry on any long term
business to be transferred under the scheme.

(7) No such transfer as is mentioned in subsection (1) shall be carried out unless the scheme relating to the
transfer has been sanctioned by the Court of First Instance in accordance with this section; and no order shall be made
under section 673 or 675 of the Companies Ordinance (Cap 622) in respect of so much of any compromise or
arrangement as involves any such transfer. (Amended 28 of 2012 ss. 912 & 920)

(8) Any insurer which fails to comply with subsection (4) commits an offence and is liable to a fine at level 4.
(Amended 35 of 1996 s. 18)

(Amended 25 of 1998 s. 2)

Section: 25 Provisions supplementary to section 24 L.N. 163 of 2013 03/03/2014


(1) Where the Court of First Instance makes an order under section 24 sanctioning a scheme the Court of First
Instance may, either by that order or by any subsequent order, make provision for all or any of the following matters-

(a) the transfer to the transferee company of the whole or any part of the undertaking and of the property
or liabilities of the transferor company;

(b) the allotting or appropriation by the transferee company of any shares, debentures, policies or other
like interests in the transferee company which under the scheme are to be allotted or appropriated by
the transferee company to or for any person;

(c) the continuation by or against the transferee company of any legal proceedings pending by or against
the transferor company;

(d) the dissolution, without winding up, of the transferor company;
(e) such incidental, consequential and supplementary matters as are necessary to secure that the scheme



Cap 41 - Insurance Companies Ordinance 29

shall be fully and effectively carried out.
(2) Where any such order provides for the transfer of property or liabilities, that property shall, by virtue of the

order, be transferred to and vest in, and those liabilities shall, by virtue of the order, be transferred to and become the
liabilities of, the transferee company, and in the case of any property, if the order so directs, freed from any mortgage
or charge which is by virtue of the scheme to cease to have effect.

(3) For the purposes of any provision requiring the delivery of an instrument of transfer as a condition for the
registration of a transfer of any property (including in particular sections 150 and 320 of the Companies Ordinance
(Cap 622)) an order which by virtue of this section operates to transfer any property shall be treated as an instrument
of transfer. (Amended 28 of 2012 ss. 912 & 920)

(4) Where a scheme is sanctioned by an order of the Court of First Instance under section 24 the transferee
company shall, within 10 days from the date on which the order is made or such longer period as the Insurance
Authority may allow, deposit 2 office copies of the order with the Insurance Authority.

(5) Any person who fails to comply with subsection (4) commits an offence and is liable to a fine at level 4.
(Amended 35 of 1996 s. 19)

(6) In this section "property" (財產) includes property, rights and powers of every description; "liabilities" (負
債) includes duties, and "shares" (股份) and "debentures" (債權證) have the same meaning as in the Companies
Ordinance (Cap 622). (Amended 28 of 2012 ss. 912 & 920)

(Amended 25 of 1998 s. 2)

Part: IVA REQUIREMENT FOR ASSETS IN HONG KONG 30/06/1997


(Part IVA added 26 of 1994 s. 5)


Section: 25A Maintenance of assets in Hong Kong-general business L.N. 163 of 2013 03/03/2014


(1) In this Part-
"additional amount for unexpired risks" (未過期風險的額外款額) has the same meaning as in paragraph 1(1) of the

Third Schedule;
"assets in Hong Kong" (在香港的資產) means-

(a) assets of the type set forth in the Eighth Schedule; and
(b) such other assets or guarantees or other arrangements in lieu of assets, as the Insurance Authority may,

in writing, approve in a particular case,
but does not include assets the titles to which are subject to any encumbrance or charge, other than a floating
charge;

"claims outstanding" (未決申索) has the same meaning as in paragraph 1(1) of the Third Schedule;
"fund" (基金) has the same meaning as in paragraph 1(1) of the Third Schedule;
"Hong Kong insurance business" (香港保險業務) has the same meaning as in paragraph 1(1) of the Third Schedule;
"liabilities" (負債) means liabilities relating to-

(a) additional amounts for unexpired risks;
(b) claims outstanding; and
(c) unearned premiums,

but, where a class of Hong Kong insurance business is accounted for on a fund accounting basis, liabilities
means, with respect to such a class, the fund;

"relevant amount" (有關數額) means the relevant amount determined in accordance with section 10 except that-
(a) the reference to gross premium income in that section shall, for the purposes of determining the

relevant amount under this section, be deemed to be the gross premium income arising from the
insurer's Hong Kong insurance business only;

(b) the references to claims outstanding, additional amount for unexpired risks and fund in that section
shall, for the purposes of determining the relevant amount under this section, be deemed to be the
claims outstanding, additional amount for unexpired risks and fund respectively arising from the
insurer's Hong Kong insurance business only; (Amended 35 of 1996 s. 20)

"unearned premiums" (未滿期保費) has the same meaning as in paragraph 1(1) of the Third Schedule.



Cap 41 - Insurance Companies Ordinance 30

(2) This Part applies to general business only but does not apply to-
(a) a person authorized to carry on in or from Hong Kong reinsurance business only; or
(b) a captive insurer. (Replaced 29 of 1997 s. 7)

(3) Subject to subsections (4), (6) and (8), an insurer shall, at all times, maintain assets in Hong Kong in respect
of its liabilities, as of the end of the last preceding financial year, arising from Hong Kong insurance business, and
such assets shall be maintained in an amount that is not less than-

(a) the aggregate of-
(i) 80% of its liabilities after deducting the amount in respect of which contracts of reinsurance have

been entered into; and
(ii) the relevant amount; or

(b) where, in respect of such liabilities, it has entered into contracts of reinsurance for which the premiums
payable exceeded one half of the gross premiums received, the aggregate of-
(i) 40% of its liabilities before deducting the amount in respect of which contracts of reinsurance

have been entered into; and
(ii) the relevant amount,

and, where paragraph (b) applies, the insurer shall maintain assets in accordance with paragraph (a) or (b), whichever
is greater.

(4) The Insurance Authority may, at the request of an insurer and provided that he is satisfied that it would not
be contrary to the interests of policy holders to do so, exempt, in writing, the insurer from the requirements of
subsection (3)(b) and he may attach such conditions to, or limitations in respect of, the exemption as he considers
appropriate including, without limiting the foregoing, a limitation on the duration of the exemption.

(5) Section 8(4)(b) and (c) applies to this section for the purpose of determining the value of assets and the
amount of liabilities.

(6) Where the Insurance Authority is satisfied that there are special or unusual circumstances that make it
impracticable for an insurer to comply with the requirements of this section, the Insurance Authority may, provided he
is satisfied with the financial status of the insurer, exempt the insurer in whole or in part from the requirements of this
section and he may attach such conditions to, or limitations in respect of, the exemption as he considers appropriate
including, without limiting the foregoing, a limitation on the duration of the exemption.

(7) For the avoidance of doubt, "special or unusual circumstances" (特殊或不尋常情況) under subsection (6)
does not include-

(a) administrative expenses or other inconvenience associated with compliance with this section; or
(b) the fact that compliance with this section does not accord with an insurer's investment policies.

(8) The requirements under subsection (3) to maintain assets in Hong Kong shall be relieved to the extent, if
any, of any assets which an insurer is, by the laws of any place outside Hong Kong, required to and does maintain in
that place and which would, upon the liquidation of the insurer, fall within the description of assets that is contained in
section 265(1)(e)(i) of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32). (Amended
28 of 2012 ss. 912 & 920)

(9) An insurer shall, within 4 months after the end of each financial year, file with the Insurance Authority a
statement in the form in Part 9 of the Third Schedule setting forth its assets and liabilities for the purposes of this
section. (Amended 51 of 1999 s. 3)

(10) An insurer that-
(a) takes any action or fails to take any action, which it knows will result in a contravention of subsection

(3); or
(b) fails to comply with conditions attached to an exemption under subsection (6), unless it establishes

that, at the time it failed to so comply, it was complying with the requirements of subsection (3),
commits an offence and is liable to-

(i) a fine of $200000 and, in the case of an individual, to imprisonment for 2 years; and (Amended 35 of
1996 s. 20)

(ii) a further fine of $1000 for each day on which the insurer continues to contravene the requirements of
subsection (3) or the conditions attached to an exemption under subsection (6), as the case may be.
(Amended 35 of 1996 s. 20)

(11) An insurer that contravenes subsection (9) commits an offence and is liable to a fine at level 4 and a
further fine of $1000 for each day on which the insurer continues to fail to file the statement after the expiry of the 4
month period referred to in that subsection. (Amended 35 of 1996 s. 20; 51 of 1999 s. 3)




Cap 41 - Insurance Companies Ordinance 31

Section: 25B Direction by Insurance Authority to re-determine
liabilities

30/06/1997



(1) Where the Insurance Authority is of the opinion that an insurer's liabilities would be significantly greater if
determined as of a day later than the end of its last preceding financial year, he may, by notice sent to the insurer,
direct the insurer to re-determine its liabilities as of a date specified in the notice, and he may specify the manner of re-
determination, and, in that case, notwithstanding that the definitions of "additional amount for unexpired risks",
"claims outstanding" and "unearned premiums" provide that they are amounts set aside by an insurer at the end of its
financial year, the insurer shall re-determine its liabilities as of the date and in the manner, if any, specified in the
notice as if such date were the end of its financial year.

(2) Where an insurer receives a notice under this section, it shall forthwith in the manner specified, if any, re-
determine its liabilities as of the specified date and, if the liabilities are greater than those determined under section
25A, it shall, not later than 3 months after the date it received the notice, commence maintaining assets in Hong Kong
in accordance with section 25A, as modified by this section, and the insurer shall continue to so maintain assets in
Hong Kong until the next determination of its liabilities under section 25A.

(3) An insurer shall, not later than the end of the 3 month period referred to in subsection (2)-
(a) notify the Insurance Authority that it has complied with the requirements of that subsection; and
(b) file a statement in the form in Part 9 of the Third Schedule setting forth its assets and liabilities as re-

determined under this section.
(4) An insurer that-

(a) fails to comply with the requirements of subsection (2) within the 3 month period referred to in that
subsection; or

(b) takes any action or fails to take any action which it knows will result in it failing to maintain assets in
Hong Kong as required by this section,

commits an offence and is liable to-
(i) a fine of $200000 and, in the case of an individual, to imprisonment for 2 years; and (Amended 35 of

1996 s. 21)
(ii) a further fine of $1000 for each day on which the insurer- (Amended 35 of 1996 s. 21)

(A) continues to fail to comply with the requirements of subsection (2) after the expiry of the 3
month period referred to in that subsection; or

(B) continues to fail to maintain assets as required by this section,
as the case may be.

(5) An insurer that fails to comply with subsection (3) commits an offence and is liable to a fine at level 4 and a
further fine of $1000 for each day on which the insurer continues to fail to notify the Insurance Authority or file the
statement after the expiry of the 3 month period referred to in that subsection. (Amended 35 of 1996 s. 21)

Section: 25C Letter of credit or other commitment from a bank 30/06/1997


(1) An insurer may, instead of maintaining assets in Hong Kong as required by this Part, substitute, in whole or
in part, a letter of credit or other commitment from a bank, as defined in the Banking Ordinance (Cap 155), in favour
of the Insurance Authority, but the terms and conditions attached to such a letter of credit or other commitment are
subject to the approval of the Insurance Authority.

(2) The Insurance Authority may, if in his opinion it would appropriately safeguard the interests of policy
holders or potential policy holders, exercise his right to payment pursuant to a letter of credit or other commitment
referred to in subsection (1).

(3) Any payment made to the Insurance Authority pursuant to a letter of credit or other commitment shall be
held in trust for the insurer as if it were a deposit made by an insurer under section 35A(1).

(4) Nothing in this section shall limit the powers of the Insurance Authority to require a deposit under section
35A(1).

Part: IVB TRANSFER OF GENERAL BUSINESS 30/06/1997


(Part IVB added 75 of 1995 s. 6)





Cap 41 - Insurance Companies Ordinance 32

Section: 25D Approval of transfer of general business L.N. 362 of 1997 01/07/1997


(1) Where it is proposed to execute and instrument by which an insurer ("the transferor") is to transfer to
another insurer ("the transferee") all its rights and obligations under such general policies, or general policies of such
descriptions, as may be specified in the instrument, the transferor may apply to the Insurance Authority for his
approval of the transfer.

(2) The Insurance Authority shall not determine an application made under subsection (1) unless-
(a) the documents and particulars specified in subsection (3) have been produced to him to his satisfaction;

and
(b) he is satisfied that the requirements of subsection (4) have been complied with.

(3) The documents and particulars referred to in subsection (2)(a) are-
(a) a copy of the proposed instrument of transfer intended to be executed by the transferor and the

transferee;
(b) a report setting out the particulars of the transfer and of all legal proceedings, begun or in

contemplation, relating to any of the policies included in the transfer;
(c) a copy of the notice referred to in subsection(4)(a) as published in the Gazette or newspapers; and
(d) without limiting the Insurance Authority's power to require any relevant information, particulars of

such information as the Insurance Authority may require from the transferee concerning its affairs
including its membership.

(4) The requirements referred to in subsection (2)(b) are-
(a) that the transferor has published a notice in the Gazette and respectively in an English language

newspaper and a Chinese language newspaper (being in each case a newspaper specified in a list of
newspapers approved by the Chief Secretary for Administration for the purposes of this section)
stating that the application has been made and giving the address of the offices at which, and the period
for which , copies of the documents mentioned in paragraph (b)(iii) will be available as required by
that paragraph; (Amended L.N. 362 of 1997)

(b) except insofar as the Insurance Authority has otherwise directed, that the transferor has fothwith-
(i) sent a copy of the notice published under paragraph (a) to every affected policy holder;
(ii) sent a copy of the said notice to every other person who claims an interest in a policy included in

the transfer and has given written notice of his claim to the transferor; and
(iii) made available for inspection by persons having an interest in the transfer copies of a report

setting out particulars of the transfer and approved by the Insurance Authority for the purpose at
one or more places in Hong Kong during office hours for a period of not less than 30 days
beginning from the date of the first publication of the notice in accordance with paragraph (a).

(5) The notice referred to in subsection (4) shall include a statement that written representations concerning the
transfer may be sent to the Insurance Authority before a day specified in the notice, which shall not be earlier than 60
days after the day of the first publication of the notice in accordance with subsection (4)(a); and the Insurance
Authority shall not determine the application until he has considered any representations made to him before the
specified day.

(6) The transferor shall furnish a copy of the report mentioned in subsection (4)(b)(iii) to any person having an
interest in the transfer who asks for one at any time before the transfer is approved or refused by the Insurance
Authority.

(7) The Insurance Authority may, by notice in writing, require the transferor or the transferee to supply him
with such information as he considers necessary to enable him to determine an application.

(8) The Insurance Authority shall not approve a transfer on application under subsection (1) unless he is
satisfied that-

(a) every policy included in the transfer evidences a contract which-
(i) was entered into before the date of the application; and
(ii) imposes on the insurer obligations the performance of which will constitute the carrying on of

insurance business in or from Hong Kong; and
(b) the transferee is, or immediately after the approval will be, a person referred to in section 6(1)(a) to (c)

carrying on in or from Hong Kong general business of the appropriate class or classes,
and unless in his opinion the transferee's financial resources and the other circumstances of the case justify the giving
of his approval.

(9) On determining an application made under subsection (1), the Insurance Authority shall-



Cap 41 - Insurance Companies Ordinance 33

(a) publish a notice of his decision in the Gazette and in such other manner as he may think fit; and
(b) send a copy of the notice to the transferor, the transferee and every person who has made

representations in accordance with the notice referred to in subsection (4),
and if he refuses the application, he shall inform the transferor and the transferee in writing of the reasons for his
refusal.

(10) In this section "general policy" (一般保單) means a policy evidencing a contract the effecting of which
constituted the carrying on of general business; and for the purposes of this section "affected policy holder" (受影響
的保單持有人) means a policy holder-

(a) whose policy is included in the transfer; or
(b) whose policy is with the transferor and the Insurance Authority has notified the transferor, after

consulting the transferor, that in his opinion the policy holder's interest will or may be materially
affected by the transfer.


Section: 25E Effect of approval under section 25D 30/06/1997


(1) Subject to subsection (2), an instrument giving effect to a transfer approved by the Insurance Authority
under section 25D shall be effectual in law-

(a) to transfer to the transferee all the transferor's rights and obligations under the policies included in the
instrument; and

(b) if the instrument so provides, to secure the continuation by or against the transferee of any legal
proceedings by or against the transferor which relate to those rights and obligations,

notwithstanding the absence of any agreements or consents which would otherwise be necessary for it to be effectual
in law for those purposes.

(2) Except insofar as the Insurance Authority may otherwise direct, a policy holder whose policy is included in
such an instrument shall not be bound by it unless he has been given written notice of its execution by the transferor or
the transferee.

Section: 25F Lloyd's underwriters 30/06/1997


(1) Sections 25D and 25E shall apply in relation to a transfer to and from members of Lloyd's if, and only if,
the following conditions are satisfied-

(a) the transfer is not one where both the transferor and the transferee are members of Lloyd's;
(b) the Committee of Lloyd's have by resolution authorized one person to act in connection with the

transfer for the members concerned as transferor or transferee; and
(c) a copy of the resolution has been given to the Insurance Authority.

(2) Where sections 25D and 25E apply in relation to a transfer to or from members of Lloyd's, they shall apply
as if-

(a) reference to an insurer in section 25D included reference to members of Lloyd's; and
(b) anything done in connection with the transfer by the person authorized in accordance with subsection

(1)(b) had been done by members for whom he acted.
[cf. 1982 c. 50 ss. 51 & 52 U.K.]


Part: V POWERS OF INTERVENTION 30/06/1997




Section: 26 Grounds on which powers are exercisable L.N. 163 of 2013 03/03/2014


Expanded Cross Reference:

27, 28, 29, 30, 31, 32, 33, 34, 35



(1) Subject to subsection (1A), any power conferred on the Insurance Authority by sections 27 to 35 shall be
exercisable in relation to any insurer on any of the following grounds - (Amended 51 of 1992 s. 6)

(a) that the Insurance Authority considers the exercise of the power to be desirable for protecting policy



Cap 41 - Insurance Companies Ordinance 34

holders or potential policy holders of the insurer against the risk that the insurer may be unable to meet
its liabilities or to fulfil the reasonable expectations of policy holders or potential policy holders;

(b) that it appears to him-
(i) that the insurer has failed to satisfy an obligation to which it is or was subject by virtue of this

Ordinance or any Ordinance repealed thereby;
(ii) that a body corporate of which it is a subsidiary has failed to satisfy an obligation to which it is or

was subject by virtue of section 23(6) or any Ordinance repealed by this Ordinance;
(c) that it appears to him that the insurer has furnished misleading or inaccurate information to the

Insurance Authority under or for the purposes of any provision of this Ordinance or any Ordinance
repealed thereby;

(d) that he is not satisfied that adequate arrangements are in force or will be made for the reinsurance of
risks against which persons are insured by the insurer in the course of carrying on business, being risks
of a class in the case of which he considers that such arrangements are required;

(e) that there exists a ground on which he would be prohibited by section 8(2) or (3)(b) from authorizing
the insurer if it were to make application in that behalf.

(f) that it appears to him that the circumstance described in section 35AA(1) or (2) exists. (Added 25 of
1994 s. 11)

(1A) The power conferred on the Insurance Authority by section 35(2) shall not be exercisable in relation to any
insurer except on the ground specified in subsection (1)(a). (Added 51 of 1992 s. 6)

(2) Any power mentioned in subsection (1) shall also be exercisable in relation to any insurer on the ground
that the Insurance Authority is not satisfied that the insurer is not to be deemed under section 42(1), for the purposes
of section 177 or 327 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32), to be unable
to pay its debts. (Amended 28 of 2012 ss. 912 & 920)

(3) Subject to subsection (3A), any power conferred on the Insurance Authority by sections 32, 33, 34 and
35(1) shall also be exercisable on the ground that he considers the exercise of that power to be desirable in the general
interests of persons who are or may become policy holders of an insurer. (Amended 8 of 1989 s. 5; 50 of 1992 s. 5; 51
of 1992 s. 6)

(3A) No power referred to in subsection (3) shall be exercisable in relation to any insurer on the ground specified
in that subsection in such a way as to require an insurer to amend either-

(a) the wording of any policy or class of policies; or
(b) the premiums payable in respect of any policy or class of policies. (Added 50 of 1992 s. 5)

(4) Any power conferred on the Insurance Authority by sections 27 to 32, 34(1) or 35(1) shall also be
exercisable, whether or not any of the grounds specified in subsections (1), (2) and (3) exists, in relation to- (Amended 8 of 1989 s. 5; 51 of 1992 s. 6)

(a) any insurer authorized to carry on any class of insurance business;
(b) any insurer in the case of which a person has, after the commencement of this Ordinance, become a

controller within the meaning of section 9(1)(c),
if that power is exercised before the expiration of the period of 5 years ("the relevant period") beginning on the latest
date on which the insurer was so authorized or the date on which that person became such a controller, as the case may
be; but no requirement imposed by virtue of this subsection shall continue in force after the expiration of the period of
10 years from the beginning of the relevant period.

(5) The Insurance Authority shall not exercise any power conferred on him by section 35 in respect of an
insurer unless, in his opinion, the exercise of the powers conferred on him by sections 27 to 34, or the exercise of
those powers alone, in respect of the insurer (and whether or not he so exercises any of those powers) would not
appropriately safeguard the interests of policy holders or potential policy holders of the insurer. (Replaced 51 of 1992 s. 6)

(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).




Cap 41 - Insurance Companies Ordinance 35

Section: 27 Restrictions on new business 30/06/1997


(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.

Section: 28 Requirements about investments 30/06/1997


(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 maintained by the insurer in respect of its long term business or so as to apply
only to other investments. (Amended 59 of 1993 s. 11)

Section: 29 Maintenance of assets in Hong Kong 30/06/1997


(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.

(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 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 section 8(4); and subsection (6) shall have effect subject to that section. (Amended 25 of 1994 s.
12)

Section: 30 Custody of assets 30/06/1997


(1) The Insurance Authority may, in the case of an insurer on which 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.



Cap 41 - Insurance Companies Ordinance 36

(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.

Section: 31 Limitation of premium income 30/06/1997


(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

(b) to be received by it in a specified period in consideration of the undertaking by the insurer during that
period of liabilities in the course of carrying on long term business or any specified part of such
business,

shall not exceed a specified amount.
(2) A requirement under this section may apply either to the aggregate premiums to be received as mentioned

in subsection (1) or to the aggregate of those premiums after deducting any premiums payable by the insurer for
reinsuring the liabilities in consideration of which the first-mentioned premiums are receivable.

Section: 32 Actuarial investigations 30/06/1997


(1) The Insurance Authority may require an insurer which carries on long term business-
(a) to cause the person who for the time being is its actuary under section 15 to make an investigation into

its financial condition (including a valuation of its liabilities) in respect of that business, or any
specified part of that business, as at a specified date;

(b) to cause an abstract of that person's report of the investigation to be made; and
(c) to prepare a statement of its long term business or of that part thereof as at that date.

(2) For the purposes of any investigation made in pursuance of a requirement under this section the value of
any assets and the amount of any liabilities shall be determined in accordance with section 8(4). (Amended 25 of
1994 s. 13)

(3) The form and contents of any abstract or statement made in pursuance of a requirement under this section
shall be the same as for an abstract or statement made under section 18.

(4) Two copies of any abstract or statement made in pursuance of a requirement under this section shall be
deposited by the insurer with the Insurance Authority on or before such date as he may specify, and 1 of those copies
shall be a copy signed by the persons required to sign copies of abstracts or statements made under section 18 which
are deposited under section 20.

Section: 33 Acceleration of information required by accounting

provisions
30/06/1997



(1) The Insurance Authority may require any documents which under section 20 are required to be deposited
with him by an insurer within the period specified in that section to be deposited with him on or before a specified
date before the end of that period, being a date not earlier than 3 months before the end of that period and not earlier
than 1 month after the date on which the requirement is imposed.

(2) The Insurance Authority may require any statement which under section 19 is required to be furnished to
him by an insurer within a period prescribed under that section to be furnished to him on or before a specified date
before the end of that period.

Section: 34 Power to obtain information and require production of

documents
L.N. 163 of 2013 03/03/2014



(1) The Insurance Authority may require an insurer to furnish him, at specified times or intervals, with



Cap 41 - Insurance Companies Ordinance 37

information about specified matters being, if he so requires, information verified in a specified manner.
(2) The Insurance Authority may-

(a) require an insurer to produce, at such time and place as he may specify, such books or papers as he
may specify; or

(b) authorize any person, on producing (if required so to do) evidence of his authority, to require an
insurer to produce to him forthwith any books or papers which that person may specify.

(3) Where by virtue of subsection (2) the Insurance Authority or a person authorized by him has power to
require the production of any books or papers from any insurer, the Insurance Authority or that person shall have the
like power to require production of those books or papers from any person who appears to him to be in possession of
them; but where any person from whom such production is required claims a lien on books or papers produced by
him, the production shall be without prejudice to the lien.

(4) Any power conferred by or by virtue of subsections (2) and (3) to require an insurer or other person to
produce books or papers shall include power-

(a) if the books or papers are produced-
(i) to take copies of them or extracts from them; and
(ii) to require that person, or any other person who is a present or past director, controller, auditor or

actuary of, or is or was at any time employed by, the insurer in question, to provide an
explanation of any of them;

(b) if the books or papers are not produced, to require the person who was required to produce them to
state, to the best of his knowledge and belief, where they are.

(5) A statement made by a person in compliance with a requirement imposed by virtue of this section may be
used in evidence against him.

(6) (Repealed 28 of 2012 ss. 912 & 920)

Section: 35 Residual power to impose requirements, etc. L.N. 163 of 2013 03/03/2014


Expanded Cross Reference:

27, 28, 29, 30, 31, 32, 33, 34



(1) Subject to section 26(5), the Insurance Authority may require an insurer to take such action in respect of its
affairs, business or property as the Insurance Authority considers appropriate.

(2) Without prejudice to subsection (1), but subject to section 26(1A) and (5) and subsections (3) and (4), the
Insurance Authority-

(a) may give a direction that, during the period for which the direction is in force, the insurer specified in
that direction shall seek advice on the management of its affairs, business and property from an
Advisor, for which purpose the Insurance Authority shall appoint a person to be the Advisor of that
insurer; or

(b) may give a direction that, during the period for which the direction is in force, the affairs, business and
property of the insurer specified in that direction shall be managed by a Manager, for which purpose
the Insurance Authority shall appoint a person to be the Manager of that insurer.

(3) The Insurance Authority shall not give a direction under subsection (2) in respect of an insurer in relation to
which the Court of First Instance has-

(a) made an order for the winding up of the insurer by the Court of First Instance;
(b) made an order under section 45(1). (Amended 25 of 1998 s. 2)

(4) A direction given under subsection (2) in respect of an insurer which is a non-Hong Kong company as
defined by section 2(1) of the Companies Ordinance (Cap 622) shall, by virtue of this subsection, apply only to-
(Amended 28 of 2012 ss. 912 & 920)

(a) so much of the affairs and business of the insurer as are carried on, or managed, in or from Hong
Kong; and

(b) so much of the property of the insurer as is located in, or managed from, Hong Kong.
(5) A direction given under subsection (2) shall-

(a) be in writing;
(b) be served on the insurer specified in the direction;
(c) take effect immediately it is so served; and
(d) state the name and address of the Advisor or Manager, as the case may be, appointed in respect of that



Cap 41 - Insurance Companies Ordinance 38

insurer.
(6) Notice of a direction given under subsection (2)(b) shall be published by the Insurance Authority in the

Gazette and in such other ways as appear to him expedient for notifying the public.
(7) For the avoidance of doubt, it is hereby declared that the exercise of any power conferred on the Insurance

Authority by this section shall be without prejudice to the exercise of any of the powers conferred on him by sections
27 to 34.

(Replaced 51 of 1992 s. 7)

Section: 35A Requirement under section 35 to make deposit 30/06/1997


(1) Without limiting the generality of section 35(1), a requirement imposed under that section on an insurer
may include a requirement that the insurer- (Amended 51 of 1992 s. 8)

(a) shall make a deposit-
(i) of an amount of money specified in that requirement;
(ii) with a bank, or a bank belonging to a class of banks, specified in that requirement;
(iii) in the name of the Insurance Authority as trustee for the insurer; and
(iv) on a date not later than the date specified in that requirement;

(b) shall place in the custody of the Insurance Authority, on a date not later than the date specified in that
requirement, a receipt, or other document, that evidences, to the satisfaction of the Insurance
Authority, that the deposit referred to in paragraph (a) has been made;

(c) shall keep the deposit referred to in paragraph (a) free from any charge both on, and from, the day
upon which that deposit is made; and

(d) shall not-
(i) take any action; or
(ii) issue any instruction to any bank at which the deposit referred to in paragraph (a) is held from

time to time,
which would result in the release of that deposit, or any part of that deposit, to the insurer or to any
other person.

(2) Nothing in subsection (1) shall prevent an insurer from using, in such manner as it thinks fit, any interest
earned on a deposit made under that subsection by the insurer.

(3) If a charge is created or purported to be created by an insurer at a time when there is in force a requirement
under subsection (1), the charge shall, to the extent that it is a charge or purports to be a charge on the deposit referred
to in subsection (1)(a) to which the requirement relates, be void against all persons.

(4) For the purposes of this section-
"charge" (押記) includes lien, encumbrance, equitable interest and third party rights;
"deposit" (存款) includes a renewal of a deposit.

(Added 74 of 1985 s. 2)

Section: 35AA Maintenance of excess of assets over liabilities etc. 30/06/1997


(1) If an insurer fails to maintain an excess of the value of its assets over the amount of its liabilities of such
amount as may be prescribed by or determined in accordance with regulations made under section 59(1)(aa), the
Insurance Authority may require the insurer- (Amended 29 of 1997 s. 8)

(a) to submit to him a plan for the restoration of a sound financial position;
(b) where the insurer has submitted a plan under paragraph (a), to propose modifications to the plan to the

satisfaction of the Insurance Authority if the Insurance Authority considers it inadequate; and
(c) to give effect to any such plan accepted by him as adequate.

(2) If any excess of the value of its assets over the amount of its liabilities maintained by an insurer falls below
such amount as may be prescribed by or determined in accordance with regulations made under section 59(1)(aa), the
Insurance Authority may require the insurer- (Amended 29 of 1997 s. 8)

(a) to submit to him a short term financial scheme;
(b) where the insurer has submitted a scheme under paragraph (a), to propose modifications to the scheme

to the satisfaction of the Insurance Authority if the Insurance Authority considers it inadequate; and
(c) to give effect to any such scheme accepted by him as adequate.



Cap 41 - Insurance Companies Ordinance 39

(3) In determining the value of the assets and the amount of the liabilities of an insurer for the purposes of
subsections (1) and (2), the Insurance Authority may take into account any unpaid share capital, future profits and
hidden reserves of the insurer.

(Added 25 of 1994 s. 14)

Section: 35B Accounts 30/06/1997


(1) The Insurance Authority shall cause proper accounts to be kept of all transactions concerning deposits
referred to in section 35A(1) and shall cause to be prepared for every financial year a statement of such accounts,
which statement shall be signed by the Insurance Authority.

(2) The accounts and the signed statement referred to in subsection (1) shall be audited and certified by the
Director of Audit, who may make such report thereon as he may think fit.

(3) Section 16 of the Audit Ordinance (Cap 122) shall not apply to any audit carried out under subsection (2).
(Added 74 of 1985 s. 2)


Section: 36 Notice of proposed exercise of power under section 27 30/06/1997


(1) Before exercising with respect to an insurer the power conferred by section 27 the Insurance Authority shall
serve on the insurer a written notice stating-

(a) that the Insurance Authority is considering exercising that power and the ground on which he is
considering the exercise of the power; and

(b) that the insurer may, within the period of 1 month from the date of service of the notice, make written
representations to the Insurance Authority and, if the insurer so requests, oral representations to a
public officer appointed for the purpose by the Insurance Authority.

(2) This section shall not apply if the ground on which the Insurance Authority proposes to exercise the power
relates (as provided in section 26(1)(e)) to the fitness of any person to hold the position of director or controller of the
insurer.

(3) A notice under this section shall give particulars of the ground on which the Insurance Authority is
considering the exercise of the power except that no particulars need be given if the ground is that mentioned in
section 26(2).

(4) Where representations are made in accordance with the section the Insurance Authority shall take them into
consideration before exercising the power.

Section: 37 Notice of proposed exercise of powers on ground of

unfitness
30/06/1997



Expanded Cross Reference:

27, 28, 29, 30, 31, 32, 33, 34, 35



(1) Before exercising with respect to an insurer any power or powers conferred by sections 27 to 35 on the
ground (as provided in section 26(1)(e)) that any person who is a director or controller of the insurer is not a fit and
proper person to hold the position held by him, the Insurance Authority shall serve on that person a written notice
stating-

(a) that the Insurance Authority is considering exercising a power or powers conferred by those sections
and the ground on which he is considering the exercise of the power or powers; and

(b) that the person on whom the notice is served may, within the period of 1 month from the date of
service of the notice, make written representations to the Insurance Authority and, if that person so
requests, oral representations to a public officer appointed for the purpose by the Insurance Authority.

(2) Unless the Insurance Authority, after considering any representations made in accordance with subsection
(1) by the person served with a notice under that subsection, decides not to exercise the power or powers in relation to
which the notice was served, he shall before exercising the power or powers serve on the insurer a written notice-

(a) containing the matters mentioned in subsection (1)(a) and (b), taking references to the person there
mentioned as references to the insurer; and

(b) specifying the power or powers which he proposes to exercise and, if the power or one of them is that



Cap 41 - Insurance Companies Ordinance 40

conferred by section 35, specifying the manner of its proposed exercise.
(3) A notice under this section shall give particulars of the ground on which the Insurance Authority is

considering the exercise of the power or powers in question.
(4) Where representations are made in accordance with this section the Insurance Authority shall take them into

consideration before exercising the power or powers in question.
(5) A requirement imposed on an insurer in the exercise of any power or powers to which this section applies

may be framed so as to come into effect after the expiration of a specified period (or such longer period as the
Insurance Authority may allow) unless before the expiration of that period the person whose fitness is in question has
ceased to hold the position concerned.

(6) This section shall not apply, as respects any insurer, in relation to the exercise of any power conferred by
sections 27 to 35 where it is exercised by the Insurance Authority-

(a) after serving a notice of objection under section 13A on the insurer where the person whose fitness is
in question is thereafter appointed as controller (within the meaning of section 13A(1)) of the insurer,
and notwithstanding that an appeal, if any, under section 13A(8) against the decision of the Insurance
Authority to serve such a notice on the insurer has not been determined; or

(b) after serving a preliminary notice under section 13A(5) on the insurer and the person whose fitness is
in question, and-
(i) the Insurance Authority has neither-

(A) notified the insurer under section 13A(2)(b)(iii)(A) that there is no objection to that person
being appointed as a controller (within the meaning of section 13A(1)) of the insurer; or
(Amended 35 of 1996 s. 22)

(B) served a notice of objection under section 13A on the insurer in respect of that person; and
(ii) that person is appointed as such a controller before the expiration of the period specified in

section 13A(2)(b)(iii)(A); or (Amended 35 of 1996 s. 22)
(c) after serving a notice under section 14(4) on the insurer, and notwithstanding that an appeal, if any,

under section 14(6) against the decision of the Insurance Authority to serve such a notice has not been
determined. (Replaced 44 of 1990 s. 6)


Section: 38 Rescission, variation and publication of requirements 30/06/1997


Expanded Cross Reference:

27, 28, 29, 30, 31, 32, 33, 34, 35(1),



(1) The Insurance Authority may rescind a requirement imposed under sections 27 to 35(1) if it appears to him
that it is no longer necessary for the requirement to continue in force, and may from time to time vary any such
requirement. (Amended 51 of 1992 s. 9)

(2) No requirement imposed by virtue of section 26(4) shall be varied after the expiration of the relevant period
mentioned therein except in a manner which relaxes that requirement.

(3) A rescission under subsection (1) of a requirement imposed under section 27 may be limited so as to apply
only to contracts of a specified description.

(4) Notice of the imposition of a requirement under the said section 27 and of the rescission or variation of any
such requirement shall be published by the Insurance Authority in the Gazette and in such other ways as appear to him
expedient for notifying the public.

Section: 38A Effect of direction given under section 35(2)(b) 30/06/1997


(1) Subject to section 38B(3)(a), immediately upon a direction given under section 35(2)(b) coming into force-
(a) in respect of an insurer incorporated in Hong Kong, any appointment of a person as a chief executive

or director of the insurer which was in force immediately before that direction came into force;
(b) in respect of an insurer incorporated outside Hong Kong, any appointment of a person as a controller

(within the meaning of paragraph (b) of the definition of "Controller" in section 13A(1)) of the insurer
which was in force immediately before that direction came into force,

shall be deemed to be revoked and, accordingly, that person shall not act or continue to act as such chief executive,
director or controller, as the case may be, during the period for which that direction is in force.



Cap 41 - Insurance Companies Ordinance 41

(2) An insurer is not required to give any notice to the Insurance Authority pursuant to section 14(1) or (2), and
a person is not required to give any notice to an insurer pursuant to section 14(3), as a consequence of the operation of
subsection (1).

(3) During the period for which a direction given under section 35(2)(b) is in force in respect of an insurer-
(a) no meeting of the insurer may be held except with the consent, and in the presence, of the Manager of

the insurer;
(b) no resolution may be passed at a meeting of the insurer except with the consent of the Manager of the

insurer.
(4) It is hereby declared that-

(a) any resolution passed, or purporting to have been passed, in contravention of subsection (3)(b);
(b) any thing done in reliance on any such resolution,

shall be invalid by reason of that contravention.
(5) Where any member or director of an insurer requests the Manager of the insurer to give a consent referred

to in subsection (3)(a), the Manager shall not unreasonably refuse to give that consent.
(6) In this section, "meeting" (會議), in relation to an insurer, means-

(a) any general meeting of the members of the insurer; or
(b) any meeting of the directors of the insurer.

(Added 51 of 1992 s. 10)

Section: 38B Powers of Manager L.N. 163 of 2013 03/03/2014


(1) The Manager of an insurer-
(a) may do all such things as may be necessary for the management of the affairs, business and property of

the insurer; and
(b) without prejudice to the generality of paragraph (a), shall have, and may exercise, in respect of that

insurer, all the powers specified in the Seventh Schedule.
(2) The Manager of an insurer may require any person who-

(a) has ceased to be a chief executive, director or controller (within the meaning of paragraph (b) of the
definition of "controller" in section 13A(1)) of the insurer as a consequence of the operation of section
38A(1); or

(b) is a controller of the insurer,
to submit such information in relation to the affairs, business and property of the insurer as the Manager may
reasonably require for the performance of his functions or the exercise of his powers in respect of the insurer, and such
information shall be submitted within such period and in such manner as the Manager may require.

(3) The Manager of an insurer may-
(a) with the approval of the Insurance Authority-

(i) if the insurer is incorporated in Hong Kong, appoint any person (including a person referred to in
section 38A(1)(a)) to be a chief executive or director of the insurer, whether to fill a vacancy
arising from the operation of section 38A(1)(a) or otherwise;

(ii) if the insurer is incorporated outside Hong Kong, appoint any person (including a person referred
to in section 38A(1)(b)) to be a controller (within the meaning of paragraph (b) of the definition
of "controller" in section 13A(1)) of the insurer, whether to fill a vacancy arising from the
operation of section 38A(1)(b) or otherwise;

(iii) revoke any appointment made pursuant to subparagraph (i) or (ii);
(b) call any meeting of the members, directors or creditors of the insurer.

(4) Neither section 13A(2) nor section 14(4) shall apply to any appointment made pursuant to subsection
(3)(a)(i) or (ii).

(5) An insurer is not required to give any notice to the Insurance Authority pursuant to section 14(1) or (2), and
a person is not required to give any notice to an insurer pursuant to section 14(3), as a consequence of any
appointment, or the revocation of any appointment, made pursuant to subsection (3)(a).

(6) During the period for which a direction given under section 35(2)(b) is in force in respect of an insurer, any
power conferred on the insurer or its officers or members, whether by this Ordinance , the Companies Ordinance (Cap
622) or the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32), or by the memorandum or
articles of association, which could be exercised in such a way as to interfere with the exercise by the Manager of the
insurer of his powers is not exercisable except with the consent of the Manager, which consent may be given either



Cap 41 - Insurance Companies Ordinance 42

generally or in any particular case. (Amended 28 of 2012 ss. 912 & 920)
(7) In exercising his powers the Manager of an insurer shall be deemed to act as the insurer's agent and, in

relation thereto, section 9 of the Prevention of Bribery Ordinance (Cap 201) shall apply to-
(a) the Manager acting as such agent; and
(b) any person who offers an advantage, within the meaning of that Ordinance, to the Manager acting as

such agent,
as if subsections (4) and (5) of that section were omitted.

(8) A person dealing with the Manager of an insurer in good faith and for value is not concerned to inquire
whether the Manager is acting within his powers.

(Added 51 of 1992 s. 10)

Section: 38C Court of First Instance may approve certain resolutions 25 of 1998 01/07/1997


Remarks:
Adaptation amendments retroactively made - see 25 of 1998 s. 2


(1) During the period for which a direction given under section 35(2)(b) is in force in respect of an insurer, the
Court of First Instance may, on the application of the Manager or any member of the insurer, approve or refuse to
approve any resolution referred to in section 38A(3)(b) which has been properly moved at a meeting of the insurer but
which has not, for whatever reason, been passed. (Amended 25 of 1998 s. 2)

(2) On the hearing of an application under subsection (1)-
(a) the Insurance Authority; and
(b) the Manager and any member of the insurer concerned (and whether or not the Manager or any such

member is the applicant),
shall be entitled to be heard on the application and to call, examine and cross-examine any witness and, if he so thinks
fit, support or oppose the making of the application.

(3) In this section, "meeting" (會議), in relation to an insurer, means any general meeting of the members of
the insurer.

(Added 51 of 1992 s. 10)

Section: 38D Duration of direction given under section 35(2) 30/06/1997


(1) The Insurance Authority shall revoke a direction given under section 35(2) if-
(a) it appears to him that it is no longer necessary for the direction to remain in force; or
(b) it is necessary to do so to give effect to a decision of the Financial Secretary under subsection (2).

(2) If any person is aggrieved by a direction given under section 35(2), he may appeal against the direction to
the Financial Secretary whose decision shall be final.

(3) The revocation under subsection (1) of a direction given under section 35(2) shall-
(a) be in writing;
(b) be served on-

(i) the insurer specified in the direction; and
(ii) the Advisor or Manager, as the case may be, of that insurer; and

(c) take effect immediately it is so served.
(4) Notice of a revocation under this section of a direction given under section 35(2)(b) shall be published by

the Insurance Authority in the Gazette and in such other ways as appear to him expedient for notifying the public.
(5) A revocation in writing under subsection (1) of a direction given under section 35(2) includes a copy of the

revocation.
(6) For the avoidance of doubt, it is hereby declared that the revocation under subsection (1) of a direction

given under section 35(2)(b) shall not revive any appointment deemed to be revoked as a consequence of the operation
of section 38A(1).

(Added 51 of 1992 s. 10)




Cap 41 - Insurance Companies Ordinance 43

Section: 38E Advisors and Managers L.N. 163 of 2013 03/03/2014


(1) An Advisor or Manager may at any time by notice in writing to the Insurance Authority resign his office,
but any such resignation shall not take effect unless and until it is accepted by the Insurance Authority.

(2) The Insurance Authority may at any time revoke the appointment of an Advisor or Manager.
(3) Where the office of an Advisor or Manager becomes vacant pursuant to subsection (1) or (2) or due to the

death of the holder of that office, the Insurance Authority shall forthwith-
(a) appoint a person to fill the vacancy; and
(b) serve on the insurer concerned a notice in writing specifying the name and address of the person so

appointed.
(4) The appointment of an Advisor or Manager shall be deemed to be revoked immediately upon the revocation

under section 38D(1) of the direction given under section 35(2) by virtue of which he holds his office.
(5) The Insurance Authority may at any time determine the remuneration and expenses to be paid by an insurer

to an Advisor or Manager appointed in respect of the insurer.
(6) Where the Insurance Authority has made a determination under subsection (5), he shall-

(a) publish a notice in the Gazette stating-
(i) that the determination has been made; and
(ii) the name of the insurer to which the determination relates; and

(b) provide a copy of the determination to any member of that insurer who so requests.
(7) Any remuneration and expenses required by a determination under subsection (5) to be paid by an insurer to

an Advisor or Manager-
(a) is recoverable by the Advisor or Manager, as the case may be, as a civil debt;
(b) shall, in any winding up of the insurer under the Companies (Winding Up and Miscellaneous

Provisions) Ordinance (Cap 32)- (Amended 28 of 2012 ss. 912 & 920)
(i) in the case of a voluntary winding up, have the same priority as is given under section 256 of that

Ordinance to the remuneration of a liquidator;
(ii) in the case of a winding up by the Court of First Instance, have the same priority as is given

under rule 179(1) of the Companies (Winding-up) Rules (Cap 32 sub. leg. H) to any costs,
charges and expenses incurred by the Official Receiver. (Amended 25 of 1998 s. 2)

(8) If any member of an insurer is aggrieved by a determination made under subsection (5) which relates to that
insurer, he may, within 1 month after the notice under subsection (6)(a) in respect of that determination has been
published in the Gazette, appeal against that determination to the Financial Secretary and the Financial Secretary may
thereupon confirm or disallow, vary in such manner as he thinks fit or substitute his own determination for, that
determination, and subsection (7) shall apply accordingly.

(9) In subsections (5) and (7)-
"Advisor" (顧問) includes a former Advisor;
"Manager" (經理) includes a former Manager.

(Added 51 of 1992 s. 10)

Section: 39 (Repealed 28 of 2012 ss. 912 & 920) L.N. 163 of 2013 03/03/2014




Section: 40 Withdrawal of authorization 30/06/1997


(1) Where an authorized insurer ceases to carry on-
(a) any insurance business;
(b) insurance business of any class; or
(c) insurance business which is part of any class,

the Insurance Authority may direct that it shall cease to be authorized to carry on-
(i) insurance business;
(ii) insurance business of that class; or
(iii) insurance business which is that part of that class,

as the case may be. (Replaced 34 of 1988 s. 5)
(2) Where an insurer authorized to carry on insurance business of any class has not at any time carried on



Cap 41 - Insurance Companies Ordinance 44

insurance business-
(a) of that class; or
(b) which is part of that class,

in or from Hong Kong, and at least 12 months have elapsed since the date of authorization, the Insurance Authority
may direct that it shall cease to be authorized to carry on insurance business-

(i) of that class; or
(ii) which is that part of that class,

as the case may be. (Replaced 34 of 1988 s. 5)
(3) A direction under this section is without prejudice to a subsequent authorization to carry on insurance

business of a class to which the direction relates.
(4) Where an authorized insurer ceases to be authorized to carry on insurance business, the Insurance Authority

may direct that any matters recorded in respect of that insurer in the register kept under section 5 shall be erased.
(5) Where an authorized insurer ceases to be authorized to carry on insurance business of any class, the

Insurance Authority may direct that any matters recorded in respect of that insurer in relation to that class in the
register kept under section 5 shall be erased. (Added 34 of 1988 s. 5)

Section: 41 Offences under Part V 30/06/1997


(1) Any person who-
(a) makes default in complying with any requirement imposed under section 27, 28, 29, 30, 31, 32, 33, 34,

35(1) or 35AA; (Amended 51 of 1992 s. 11; 25 of 1994 s. 15)
(b) in purported compliance with a requirement imposed under section 34 furnishes information which he

knows to be false in a material particular or recklessly furnishes information which is false in a
material particular; (Amended 51 of 1992 s. 11)

(c) acts or continues to act as a chief executive, director or controller of an insurer in contravention of
section 38A(1); (Added 51 of 1992 s. 11)

(d) fails without reasonable excuse to comply with any requirement under section 38B(2); or (Added 51
of 1992 s. 11)

(e) wilfully obstructs, resists or delays-
(i) the Manager of an insurer in the lawful performance of his functions, or the lawful exercise of his

powers, in respect of the insurer; or
(ii) any other person lawfully assisting the Manager in such performance of such functions or such

exercise of such powers, (Added 51 of 1992 s. 11)
commits an offence and is liable to-

(i) a fine of $200000 and, in the case of an individual, to imprisonment for 2 years; and (Amended 35 of
1996 s. 23)

(ii) in the case of an offence under paragraph (a), a fine of $1000 for each day on which the offence
continues. (Amended 35 of 1996 s. 23)

(2) Where a person is charged with an offence under subsection (1)(a) in respect of his default in complying
with a requirement imposed under section 34(2) or (3) to produce any books or papers, it shall be a defence to prove
that they were not in his possession or control and that it was not reasonably practicable for him to comply with the
requirement.

Part: VI INSOLVENCY AND WINDING UP 30/06/1997




Section: 42 Circumstances in which insurer deemed to be insolvent L.N. 163 of 2013 03/03/2014


(1) Subject to subsection (1A), an insurer shall be deemed for the purposes of sections 177 and 327 of the
Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32) to be unable to pay its debts if at any
time the value of the assets of the insurer does not exceed the amount of its liabilities by the relevant amount within
the meaning of section 10. (Amended 8 of 1989 s. 6; 28 of 2012 ss. 912 & 920)

(1A) Subsection (1) shall, until 1 April 1991, apply to an insurer which was an authorized insurer immediately
before the commencement of the Insurance Companies (Amendment) Ordinance 1989 (8 of 1989) as if section 10(1)
had not been amended by that Ordinance. (Added 8 of 1989 s. 6)



Cap 41 - Insurance Companies Ordinance 45

(2) Nothing in this section shall be taken as affecting the manner in which, on a winding up, any assets or
liabilities are required to be dealt with by virtue of section 45.

Section: 43 Winding up of insurer under Companies (Winding Up and

Miscellaneous Provisions) Ordinance*
L.N. 163 of 2013 03/03/2014



The Court of First Instance (in this Part referred to as "the Court") may order the winding up, in accordance with
the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32), of an insurer and the provisions of
that Ordinance shall apply accordingly subject to the modification that the insurer may be ordered to be wound up on
the petition of 10 or more policy holders: (Amended 28 of 2012 ss. 912 & 920)

Provided that such a petition shall not be presented except by leave of the Court, and leave shall not be granted
until a prima facie case has been established to the satisfaction of the Court and until security for costs for such
amount as the Court may think reasonable has been given.

(Amended 25 of 1998 s. 2)
________________________________________________________________________________
Note:
* (Amended 28 of 2012 ss. 912 & 920)

Section: 44 Winding up on petition of Insurance Authority L.N. 163 of 2013 03/03/2014


(1) The Insurance Authority may present a petition for the winding up, in accordance with the Companies
(Winding Up and Miscellaneous Provisions) Ordinance (Cap 32), of an insurer, being a company which may be
wound up by the Court under that Ordinance, on the ground- (Amended 28 of 2012 ss. 912 & 920)

(a) that the company is unable to pay its debts within the meaning of sections 177 and 178 or section 327
of that Ordinance;

(b) that the company has failed to satisfy an obligation to which it is or was subject by virtue of this
Ordinance or any Ordinance repealed thereby; or

(c) that the company, being under the obligation imposed by section 16 with respect to the keeping or
preserving of proper books of account, has failed to satisfy that obligation or to produce books kept in
satisfaction of that obligation.

(2) In any proceedings on a petition to wind up an insurer presented by the Insurance Authority under
subsection (1), evidence that the company was insolvent-

(a) at the close of the period to which the accounts and balance sheet of the company last deposited under
section 20 relate; or

(b) at any date or time specified in a requirement under section 32 or 34,
shall be evidence that the company continues to be unable to pay its debts, unless the contrary is proved.

(3) If, in the case of an insurer, being a company which may be wound up by the Court under the Companies
(Winding Up and Miscellaneous Provisions) Ordinance (Cap 32), it appears to the Insurance Authority that it is
expedient in the public interest that the company should be wound up, he may, unless the company is already being
wound up by the Court, present a petition for it to be so wound up if the Court thinks it just and equitable for it to be
so wound up. (Amended 28 of 2012 ss. 912 & 920)

(4) Where a petition for the winding up of an insurer is presented by a person other than the Insurance
Authority, a copy of the petition shall be served on him and he shall be entitled to be heard on the petition and to call,
examine and cross-examine any witness and, if he so thinks fit, support or oppose the making of a winding-up order.

Section: 45 Winding up of insurer L.N. 163 of 2013 03/03/2014


(1) Unless the Court otherwise orders, an insurer shall not be wound up voluntarily; but no order shall be made
under this subsection unless notice of the application has been served on the Insurance Authority who shall be entitled
to be heard on the application and to call, examine and cross-examine any witness and, if he so thinks fit, support or
oppose the making of the order. (Amended 51 of 1992 s. 12)

(2) Section 23(1) shall not have effect in relation to the winding up of an insurer to which section 22(1) applies
but, subject to subsection (4) and to rules made by virtue of section 49(2), in any such winding up-

(a) the assets representing a fund maintained by the insurer in respect of its long term business shall be
available only for meeting the liabilities of the insurer attributable to that part of that business to which



Cap 41 - Insurance Companies Ordinance 46

the fund relates; (Amended 59 of 1993 s. 12)
(b) the other assets of the insurer shall be available only for meeting the liabilities of the insurer

attributable to its other business.
(3) Subject to subsection (4A), where the value of the assets mentioned in either paragraph of subsection (2)

exceeds the amount of the liabilities mentioned in that paragraph the restriction imposed by that subsection shall not
apply to so much of those assets as represents the excess. (Amended 59 of 1993 s. 12)

(4) In relation to the assets falling within either paragraph of subsection (2) the creditors mentioned in section
200(1) and (2) of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32) shall be only those
who are creditors in respect of liabilities falling within that paragraph; and any general meetings of creditors
summoned for the purposes of that section shall accordingly be separate general meetings of the creditors in respect of
the liabilities falling within each paragraph. (Amended 28 of 2012 ss. 912 & 920)

(4A) Where in respect of a particular fund maintained by an insurer in respect of its long term business the value
of the assets mentioned in paragraph (a) of subsection (2) exceeds the amount of the liabilities mentioned in that
paragraph, then so much of those assets as represents the excess shall be available for meeting-

(a) if in respect of any other fund maintained by the insurer in respect of its long term business the amount
of the liabilities mentioned in that paragraph exceeds the value of the assets mentioned in that
paragraph-
(i) if there is only one such other fund, the liabilities of that other fund to the extent to which they

exceed the assets of that other fund;
(ii) if there are 2 or more such other funds, the respective liabilities of those other funds pro rata to

the extent to which they exceed the respective assets of those other funds;
(b) if paragraph (a) is not applicable or part of that excess remains after the operation of that paragraph,

the liabilities of the insurer attributable to its other business. (Added 59 of 1993 s. 12)
(4B) For the avoidance of doubt, it is hereby declared that, for the purposes of the operation of subsection (4) in

relation to paragraph (a) of subsection (2), no fund maintained by an insurer in respect of its long term business shall
be aggregated with any other fund maintained by the insurer in respect of that business. (Added 59 of 1993 s. 12)

(5) Where under section 276(1) of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap
32) the Court orders any money or property to be repaid or restored to an insurer or any sum to be contributed to its
assets then, if and so far as the wrongful act which is the reason for the making of the order related to assets
representing a fund or funds maintained by the insurer in respect of its long term business, the Court shall include in
the order a direction that the money, property or contribution shall be treated for the purposes of this Ordinance as
assets of that fund or those funds and this Ordinance shall have effect accordingly. (Amended 28 of 2012 ss. 912 &
920)

Section: 46 Continuation of long term business of insurer in

liquidation
L.N. 163 of 2013 03/03/2014



(1) This section has effect in relation to the winding up of an insurer being a company carrying on long term
business.

(2) The liquidator shall, unless the Court otherwise orders, carry on the long term business of the insurer with a
view to its being transferred as a going concern to another insurer, whether an existing insurer or an insurer formed for
that purpose; and, in carrying on that business as aforesaid, the liquidator may agree to the variation of any contracts
of insurance in existence when the winding-up order is made but shall not effect any new contracts of insurance.

(3) If the liquidator is satisfied that the interests of the creditors in respect of liabilities of the insurer
attributable to its long term business require the appointment of a special manager of the insurer's long term business,
he may apply to the Court, and the Court may on such application appoint a special manager of that business to act
during such time as the Court may direct, with such powers, including any of the powers of a receiver or manager, as
may be entrusted to him by the Court.

(4) Section 216(2) and (3) of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32)
shall apply to a special manager appointed under subsection (3) as they apply to a special manager appointed under
that section. (Amended 28 of 2012 ss. 912 & 920)

(5) The Court may, if it thinks fit and subject to such conditions (if any) as it may determine, reduce the
amount of the contracts made by the insurer in the course of carrying on its long term business.

(6) The Court may, on the application of the liquidator, a special manager appointed under subsection (3) or the
Insurance Authority, appoint an independent actuary to investigate the long term business of the insurer and to report



Cap 41 - Insurance Companies Ordinance 47

to the liquidator, the special manager or the Insurance Authority, as the case may be, on the desirability or otherwise
of that business being continued and on any reduction in the contracts made in the course of carrying on that business
that may be necessary for its successful continuation.

(7) Notwithstanding section 199(1)(a) of the Companies (Winding Up and Miscellaneous Provisions)
Ordinance (Cap 32) the liquidator may without either of the sanctions referred to therein make an application in the
name of and on behalf of the insurer under section 24. (Amended 28 of 2012 ss. 912 & 920)

Section: 47 Winding up of insurers involved in transfer of business 30/06/1997


(1) Where the insurance business or any part of the insurance business of an insurer has been transferred to an
insurer under an arrangement in pursuance of which the first-mentioned insurer ("the transferor company") or the
creditors thereof has or have claims against the insurer to which the transfer was made ("the transferee company"),
then, if the transferee company is being wound up by the Court, the Court shall, subject to this section, order the
transferor company to be wound up in conjunction with the transferee company, and may by the same or any
subsequent order appoint the same person to be liquidator for the 2 companies, and make provision for such other
matters as may seem to the Court necessary, with a view to the companies being wound up as if they were one
company.

(2) The commencement of the winding up of the transferee company shall, save as otherwise ordered by the
Court, be the commencement of the winding up of the transferor company.

(3) In adjusting the rights and liabilities of the members of the several companies between themselves, the
Court shall have regard to the constitution of the companies, and to the arrangements entered into between the
companies, in the same manner as the Court has regard to the rights and liabilities of different classes of contributories
in the case of the winding up of a single company, or as near thereto as circumstances admit.

(4) Where any insurer alleged to be a transferor company is not in process of being wound up at the same time
as the transferee company, the Court shall not direct the transferor company to be wound up unless, after hearing all
objections (if any) that may be urged by or on behalf of the company against its being wound up, the Court is of
opinion that the company is subsidiary to the transferee company, and that the winding up of the company in
conjunction with the transferee company is just and equitable.

(5) An application may be made in relation to the winding up of any transferor company in conjunction with a
transferee company by any creditor of or person interested in, the transferee or transferor company.

(6) Where an insurer stands in the relation of a transferee company to one company, and in the relation of a
transferor company to some other company, or where there are several companies standing in the relation of transferor
companies to one transferee company, the Court may deal with any number of such companies together or in separate
groups, as it thinks most expedient, upon the principles laid down in this section.

Section: 48 Reduction of contracts as alternative to winding up 30/06/1997


In the case of an insurer which has been proved to be unable to pay its debts, the Court may, if it thinks fit,
reduce the amount of the contracts of the insurer on such terms and subject to such conditions as the Court thinks just,
in place of making a winding-up order.

Section: 49 Winding up rules L.N. 163 of 2013 03/03/2014


(1) Rules may be made under section 296 of the Companies (Winding Up and Miscellaneous Provisions)
Ordinance (Cap 32) for determining the amount of the liabilities of an insurer to policy holders of any class or
description for the purpose of proof in a winding up and generally for carrying into effect the provisions of this
Ordinance with respect to the winding up of insurers. (Amended 28 of 2012 ss. 912 & 920)

(2) Without prejudice to the generality of subsection (1), rules under the said section 296 may make provision
for all or any of the following matters-

(a) the identification of the assets and liabilities falling within section 45(2)(a) or (b);
(b) the apportionment between the assets falling within section 45(2) of the costs, charges and expenses of

the winding up and of any debts of the insurer having priority under section 265 of the Companies
(Winding Up and Miscellaneous Provisions) Ordinance (Cap 32); (Amended 28 of 2012 ss. 912 &
920)

(c) the determination of the amount of liabilities of any description falling within paragraph (a) or (b) of



Cap 41 - Insurance Companies Ordinance 48

section 45(2) for the purpose of establishing whether or not there is any such excess in respect of that
paragraph as is mentioned in section 45(3);

(d) the application of assets within paragraph (a) of section 45(2) for meeting the liabilities within that
paragraph;

(e) the application of assets representing any such excess as is mentioned in section 45(3).

Section: 49A Winding up of insurer subject to direction under section

35(2)(b)
L.N. 163 of 2013 03/03/2014



(1) Where before the presentation of a petition for the winding up of an insurer by the Court, and whether or
not the petition is presented by the Insurance Authority, there has in respect of the insurer been a direction given under
section 35(2)(b) which has continued in force at all times until the presentation of the petition, and a winding up order
is made thereon, then, notwithstanding the provisions of section 184(2) of the Companies (Winding Up and
Miscellaneous Provisions) Ordinance (Cap 32), the winding up of the insurer by the Court shall, for the purposes of
sections 170, 179, 182, 183, 266, 267, 269 and 274, and paragraphs (d), (e), (h), (i), (j), (k), (l) and (o) of section
271(1), of that Ordinance, be deemed to have commenced at the time the direction was so given.

(2) Where before an application has been made to the Court of First Instance for an order under section 45(1)
for a voluntary winding up of an insurer, there has in respect of the insurer been a direction given under section
35(2)(b) which has continued in force at all times until the making of the application, and such order is made thereon,
then, notwithstanding the provisions of section 230 of the Companies (Winding Up and Miscellaneous Provisions)
Ordinance (Cap 32), the voluntary winding up of the insurer shall, for the purposes of sections 170, 232, 266, 267, 269
and 274, and paragraphs (d), (e), (h), (i), (j), (k), (l) and (o) of section 271(1), of that Ordinance, be deemed to have
commenced at the time the direction was so given. (Amended 25 of 1998 s. 2)

(3) Nothing in section 182 or 232 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance
(Cap 32) shall invalidate any disposition of the property of an insurer made by it under the direction of the Manager of
the insurer acting bona fide in the course of managing the affairs, business and property of the insurer.

(Added 51 of 1992 s. 13. Amended 28 of 2012 ss. 912 & 920)

Section: 49B Notice of commencement of liquidation, etc. and of

appointment of liquidator, etc.
30/06/1997



(1) Where any proceedings are commenced outside Hong Kong for the liquidation of an insurer or for the
purpose of placing an insurer under any other form of insolvency administration, the insurer shall give to the Insurance
Authority written notice of the commencement of such proceedings, and, where a provisional liquidator or liquidator
or a person charged with such other form of insolvency administration is appointed, of such appointment, not later
than 3 working days after the event to which the notice relates.

(2) Where a receiver or manager of the property in Hong Kong or elsewhere of an insurer is appointed, the
insurer shall give to the Insurance Authority written notice of such appointment not later than 3 working days after the
appointment.

(3) Where any proceedings are commenced in Hong Kong or elsewhere to enforce a judgment given or order
made against an insurer for the payment of money, the insurer shall give to the Insurance Authority written notice of
the commencement of such proceedings not later than 3 working days after such commencement.

(4) Any insurer which fails to comply with any of the provisions of this section commits an offence and is
liable to a fine of $200000 and, in the case of an individual, to imprisonment for 2 years, together with a fine of $2000
for each day on which the failure to give the relevant notice continues after the expiry of the period prescribed under
that provision. (Amended 35 of 1996 s. 24)

(Added 25 of 1994 s. 16)

Part: VII SPECIAL PROVISIONS RELATING TO LLOYD'S 30/06/1997




Section: 50 Requirements to be complied with by Lloyd's 51 of 1999 23/07/1999


During any period when a member of Lloyd's is carrying on insurance business in Hong Kong, Lloyd's, a



Cap 41 - Insurance Companies Ordinance 49

member of Lloyd's and the members of Lloyd's taken together shall comply with the relevant requirements contained
in this Part.

(Replaced 51 of 1999 s. 4)
___________________________________________________________________
Note:
Section 4 of the Insurance Companies (Amendment) Ordinance 1999 (51 of 1999) replaced this section.

Section: 50A Requirement on solvency margin 51 of 1999 23/07/1999


(1) The members of Lloyd's taken together shall, at all times, maintain assets of a value not less than the
aggregate of the relevant amount, within the meaning of section 10(1), having regard only to the general business, and
the greater of the following-

(a) the aggregate of-
(i) the amount of their liabilities; and
(ii) if any part of the long term business carried on is of a nature other than that specified in class G

or H in Part 2 of the First Schedule, $2000000 or its equivalent; or
(b) the aggregate of the amount of their liabilities and such amount as may be prescribed by or determined

in accordance with regulations made under section 59(1)(aa).
(2) For the purposes of subsection (1), references to a company or an insurer in section 10 or in regulations

made under section 59(1)(aa) shall be read as references to the members of Lloyd's taken together.
(Added 51 of 1999 s. 4)


Section: 50B Fit and proper management 51 of 1999 23/07/1999


(1) Lloyd's shall appoint a person (not being a body corporate) as its authorized representative who shall reside
in Hong Kong and be responsible for its overall operation in Hong Kong.

(2) Without limiting the generality of subsection (1), the authorized representative shall be responsible for-
(a) accepting service of notices on behalf of Lloyd's and its members;
(b) servicing Lloyd's policy holders in Hong Kong with a view to protecting their interests; and
(c) ensuring compliance by Lloyd's and its members with the provisions of this Ordinance.

(3) Section 13A applies to all appointments of an authorized representative and a reference in that section to an
authorized insurer and a controller shall be read as a reference to Lloyd's and the authorized representative
respectively.

(4) Where a person has been appointed as the authorized representative and the Insurance Authority believes
that he is no longer a fit and proper person to be so and desires his removal, the procedures described in section
13A(5) to (8) shall apply with the necessary changes as provided in subsection (3), and in addition to those changes, a
reference to a notice of objection and the person proposed to be appointed shall be read as a reference to a notice of
removal and the person appointed respectively.

(5) After the notice of removal has been served, the authorized representative shall be removed on the date
specified in the notice and the lodging of an appeal to the Financial Secretary shall not prevent the notice from taking
effect.

(6) If the Financial Secretary, on appeal, decides that the notice of removal should not have been served, the
notice of removal shall thereupon be cancelled and the authorized representative who has been served the notice may
be reinstated by Lloyd's.

(7) Where, subsequent to the appointment of an authorized representative, there is any change in the
representative's particulars as submitted to the Insurance Authority under this section, Lloyd's shall, within one month
of such change occurring, notify in writing the Insurance Authority.

(8) Where Lloyd's contravenes subsection (7), it commits an offence and is liable, on conviction, to a fine of
$200000 together with a fine of $2000 for each day on which the offence continues.

(Added 51 of 1999 s. 4)
___________________________________________________________________
Note:
This section was added by section 4 of the Insurance Companies (Amendment) Ordinance 1999 (51 of 1999).




Cap 41 - Insurance Companies Ordinance 50

Section: 50C Reporting requirements 51 of 1999 23/07/1999


(1) Lloyd's shall submit annually to the Insurance Authority the following accounts, statements and
information-

(a) a copy of any accounts and statements (as required by the law applicable to Lloyd's in the United
Kingdom) summarizing the extent and character of the insurance business done by the members of
Lloyd's;

(b) a copy of any report published by Lloyd's on its global results;
(c) accounts and information in respect of the Hong Kong insurance business of Lloyd's as required by

Part 8 of the Third Schedule;
(d) the Statement of Assets and Liabilities as required by Part 9 of the Third Schedule; and
(e) a list showing the identities of Lloyd's syndicates who carried on insurance business in Hong Kong in

the relevant financial year and their particulars as specified by the Insurance Authority.
(2) The accounts, statements and information submitted under subsection (1) shall comply with section 8(4)

and a reference to an insurer in section 8(4) or in regulations made under section 59(1)(a) shall be deemed for this
purpose to be a reference to Lloyd's.

(3) Notwithstanding subsection (2), section 60 applies to Lloyd's and a reference to an insurer in that section
shall be deemed for this purpose to be a reference to Lloyd's.

(4) Lloyd's shall submit-
(a) one copy each of the documents referred to in subsection (1)(a) and (b) within 6 months after the close

of the financial year to which the documents relate; and
(b) one copy each of the documents referred to in subsection (1)(c), (d) and (e) within 4 months after the

close of the financial year to which the documents relate,
but the Insurance Authority may, on application, extend the period for submission of a document by not more than 3
months.

(5) Lloyd's shall submit to the Insurance Authority, on a quarterly basis, a list showing the names of all persons
in Hong Kong who have been given binding authority by Lloyd's members to underwrite insurance business on their
behalf, and the types of business carried on by each of them, and such list shall be submitted within 1 month after the
close of the quarter to which it relates.

(6) Lloyd's shall ensure that the documents required to be submitted-
(a) under subsection (1) are signed by the Chairman of Lloyd's and the authorized representative of

Lloyd's in Hong Kong; and
(b) under subsection (5) are signed by the authorized representative of Lloyd's in Hong Kong.

(7) Where, on receiving a document under subsection (1) or (5), the Insurance Authority considers such
document to be inaccurate or incomplete in any respect, he may require Lloyd's to supply additional information to
remedy such inaccuracy or deficiency and Lloyd's shall forthwith comply with such requirement.

(8) On submitting the documents required under subsection (1)(a) and (b), Lloyd's shall submit copies of
reports on its affairs submitted to its policy holders, if any, in respect of the same financial year.

(9) On submitting the documents required under subsection (1)(a) and (b), Lloyd's shall pay to the Insurance
Authority a fee equal to the fee paid annually by an authorized insurer under section 13(1).

(10) If Lloyd's fails to comply with subsection (1), (4), (5), (6), (7) or (8), it commits an offence and is liable to a
fine of $200000 together with a fine of $1000 for each day on which the offence continues.

(Added 51 of 1999 s. 4)
___________________________________________________________________
Note:
This section was added by section 4 of the Insurance Companies (Amendment) Ordinance 1999 (51 of 1999).

Section: 50D Local assets 51 of 1999 23/07/1999


Part IVA and section 59(1)(a) apply to Lloyd's and a reference to an insurer in those provisions or in subsidiary
legislation made under one of those provisions shall be deemed to be a reference to Lloyd's.

(Added 51 of 1999 s. 4)
___________________________________________________________________
Note:
This section was added by section 4 of the Insurance Companies (Amendment) Ordinance 1999 (51 of 1999).



Cap 41 - Insurance Companies Ordinance 51


Section: 50E Insurance intermediaries 51 of 1999 23/07/1999


Part X applies to Lloyd's and a reference in that Part-
(a) to an insurer shall be deemed for this purpose to be a reference to a member of Lloyd's;
(b) to an insurance agent shall be deemed for this purpose to be a reference to an insurance agent of a

member of Lloyd's; and
(c) to an appointed insurance agent shall be deemed for this purpose to be a reference to an insurance

agent appointed by a member of Lloyd's.
(Added 51 of 1999 s. 4)

___________________________________________________________________
Note:
This section was added by section 4 of the Insurance Companies (Amendment) Ordinance 1999 (51 of 1999).

Section: 50F Powers of intervention 51 of 1999 23/07/1999


(1) The provisions of Part V, except section 40, apply to one or more of the following, as the context may
require-

(a) Lloyd's;
(b) a member of Lloyd's who carries on insurance business in Hong Kong;
(c) the members of Lloyd's taken together who carry on insurance business in Hong Kong,

and a reference in those provisions to an insurer shall be deemed for this purpose to be a reference to one or more of
Lloyd's, such member and such group of members.

(2) For the purposes of subsection (1), the reference in section 33(1) to section 20 shall be read as a reference to
section 50C.

(Added 51 of 1999 s. 4)

Part: VIII EXEMPTIONS L.N. 12 of 2003 01/04/2003




Section: 51 Exempted persons L.N. 12 of 2003 01/04/2003


The following persons are exempted from the provisions of this Ordinance-
(a) any body of persons, corporate or unincorporate, carrying on insurance business in Hong Kong only-

(i) whose gross premium income does not exceed $500000 in any financial year:
Provided that if the financial year of any such body is not a period of 12 months, the gross

premium income of that body in that financial year shall, for the purposes of this paragraph, be
deemed to be the sum obtained by dividing the amount of its gross premium income (within the
meaning of section 10(4)(c)) by the number of days in that financial year and multiplying the
result by 365; and

(ii) which consists of persons who are bound together by custom, religion, kinship, nationality or
regional or local interest but who are not so bound together or associated for the purpose of the
acquisition by them of gain;

(b) a person carrying on in Hong Kong reinsurance business only, other than-
(i) a body corporate incorporated in Hong Kong;
(ii) a body corporate incorporated elsewhere which has a place of business in Hong Kong or is

represented in Hong Kong by an agent;
(iii) any other person or any partnership having a place of business in Hong Kong;

(c) any registered trade union within the meaning of the Trade Unions Ordinance (Cap 332) which carries
on insurance business limited to the provision for its members of provident benefits or strike benefits;

(d) any registered co-operative society within the meaning of the Co-operative Societies Ordinance (Cap
33);

(e) the Hong Kong Export Credit Insurance Corporation;
(f) any authorized institution within the meaning of section 2 of the Banking Ordinance (Cap 155) to the

extent only that such institution carries on insurance business of the nature specified in class G or H, or



Cap 41 - Insurance Companies Ordinance 52

classes 16 and 17, or comprised in groups 1, 7 and 11 in the First Schedule solely for the purposes of
its banking business or deposit-taking business, as the case may be; (Amended 27 of 1986 s. 137; 59
of 1993 s. 13; 49 of 1995 s. 53)

(g) the Credit Union League of Hong Kong incorporated under Part XI of the Credit Unions Ordinance
(Cap 119); (Amended 68 of 1992 s. 20)

(h) a recognized clearing house within the meaning of section 1 of Part 1 of Schedule 1 to the Securities
and Futures Ordinance (Cap 571) only to the extent that it guarantees the settlement of transactions in
securities or futures contracts as defined in that section; (Replaced 5 of 2002 s. 407)

(i) a person who is authorized under Part III of the Securities and Futures Ordinance (Cap 571) to provide
automated trading services within the meaning of Schedule 5 to that Ordinance only to the extent that
it guarantees the settlement of transactions in securities or futures contracts as defined in section 1 of
Part 1 of Schedule 1 to that Ordinance. (Added 5 of 2002 s. 407)


Section: 52 (Repealed 50 of 1992 s. 6) 30/06/1997




Section: 53 Power of Chief Executive in Council to exempt insurer 31 of 1999 01/07/1997


Remarks:
Adaptation amendments retroactively made - see 31 of 1999 s. 3


(1) The Chief Executive in Council may by order direct that, as respects any insurer specified in the order, such
provisions of this Ordinance as may be so specified shall not apply to the insurer or shall apply to the insurer with
such modifications or variations as may be so specified.

(2) An order made under this section may be subject to conditions and may be amended or revoked at any time
by the Chief Executive in Council.

(3) In this section "insurer" includes Lloyd's.
(Amended 31 of 1999 s. 3)


Part: VIIIA Secrecy, Disclosure of Information and Examinations by

Outside Authorities
E.R. 2 of 2012 02/08/2012



(Part VIIIA added 34 of 1988 s. 6)
(*Format changes—E.R. 2 of 2012)

_________________________________________________________________________________
Note:
* The format of Part VIIIA has been updated to the current legislative styles.

Section: 53A Secrecy 18 of 2015 13/11/2015


(1) Except in the exercise of any function under this Ordinance or for the carrying into effect of the provisions of
this Ordinance, every person to whom this subsection applies- (Amended 75 of 1995 s. 7)
(a) shall preserve and aid in preserving secrecy with regard to all matters relating to the affairs of any insurer

that may come to his knowledge in the exercise of any function under this Ordinance;
(b) shall not communicate any such matter to any person other than the person to whom such matter relates;

and
(c) shall not suffer or permit any person to have access to any records in his possession, custody or control or in

the possession, custody or control of any other person so appointed or employed.
(1AA) Subsection (1) shall apply to any person who is or has been-

(a) a public officer;
(b) a person employed or authorized by or assisting the Insurance Authority;
(c) an Advisor appointed under section 35(2)(a);
(d) a Manager appointed under section 35(2)(b); and
(e) a person employed by or assisting a person to whom this subsection applies by virtue of paragraph (c) or

(d),



Cap 41 - Insurance Companies Ordinance 53

and who exercises or has exercised any function under this Ordinance. (Added 75 of 1995 s. 7)
(1A) Subsection (1) shall not apply if the Manager of an insurer is required to comply with a notice to furnish returns

and information under section 51 of the Inland Revenue Ordinance (Cap 112). (Added 51 of 1992 s. 14)
(2) No person who receives information, in whatever form, submitted under section 6, 7, 13A, 13B, 14, 17, 18, 19,

20, 32, 33, 34, 50, 53D, 53E or 61(1)(a) shall be required to produce to any court any document containing such
information or to divulge or communicate to any court any matter or thing coming under his notice in the
exercise of his functions under this Ordinance, except in the course of- (Amended 44 of 1990 s. 7; 50 of 1992 s.
7; 59 of 1993 s. 14)
(a) a prosecution for any offence;
(b) the determination by the Court of First Instance of an application under section 24; or
(c) a winding up by the Court of First Instance under Part VI. (Amended 25 of 1998 s. 2)

(3) Subsection (1) shall not apply to the disclosure of information-
(a) in the form of a summary compiled from similar or related information provided by insurers if the summary

is so compiled as to prevent particulars relating to the business of any such insurer being ascertained from
it;

(b) with a view to the institution of; or otherwise for the purposes of, any criminal proceedings or investigation,
whether under this Ordinance or otherwise, in Hong Kong;

(c) in connection with any civil proceedings arising out of this Ordinance;
(d) by the Insurance Authority with a view to the institution of, or otherwise for the purposes of, any

disciplinary proceedings relating to the performance of his professional duties by a prescribed person;
(Replaced 59 of 1993 s. 14)

(da) by the Insurance Authority to a prescribed person for the purpose of enabling or assisting the Insurance
Authority to discharge his functions under this Ordinance; (Added 59 of 1993 s. 14)

(db) by a prescribed person where-
(i) the information has been disclosed to that person under paragraph (da); and
(ii) that person has the consent of the Insurance Authority to do so; (Added 59 of 1993 s. 14)

(e) to the Financial Secretary, an inspector appointed by the Financial Secretary to investigate the affairs of a
company, a person holding an authorized statutory office or any public officer authorized by the Financial
Secretary for the purposes of this paragraph where, in the opinion of the Insurance Authority- (Amended
L.N. 106 of 2002)
(i) it is desirable or expedient that the information should be so disclosed in the interests of existing or

potential policy holders or the public interest; or
(ii) such disclosure will enable or assist the recipient of the information to exercise his functions and it is

not contrary to the interests of existing or potential policy holders or the public interest that the
information should be so disclosed; (Replaced 75 of 1995 s. 7)

(f) by the Insurance Authority to an auditor or actuary of an authorized insurer, an authorized insurance broker
or a body of insurance brokers approved under section 70 if, in the opinion of the Insurance Authority, such
information is necessary for the auditor or actuary, as the case may be, to perform his duties under this
Ordinance; (Added 75 of 1995 s. 7)

(fa) by the Insurance Authority to the Anti-Money Laundering and Counter-Terrorist Financing (Financial
Institutions) Review Tribunal established under section 55 of the Anti-Money Laundering and Counter-
Terrorist Financing (Financial Institutions) Ordinance (Cap 615); (Added 15 of 2011 s. 84)

(g) subject to subsection (3A), by the Insurance Authority with the consent of the person from whom the
information was obtained or received and if the information relates to a different person, also with the
consent of the person to whom the information relates; (Added 75 of 1995 s. 7. Amended 31 of 2000 s. 3)

(h) by the Insurance Authority if it has been made available to the public by virtue of its being disclosed in any
circumstances in which, or for any purpose for which, disclosure is not precluded by this section or section
53B; or (Added 75 of 1995 s. 7. Amended 31 of 2000 s. 3)

(i) by the Insurance Authority if-
(i) the information is in the form of-

(A) such accounts, statements and information relating to the business of an insurer as have been
submitted to the Insurance Authority under section 17(1);

(B) such accounts, statements, reports and information relating to the business of Lloyd's as have
been submitted to the Insurance Authority under section 50C(1)(a), (b), (c) and (d); or

(C) such accounts, statements and other statistical and financial information relating to the long term



Cap 41 - Insurance Companies Ordinance 54

business carried on in Hong Kong by an insurer or Lloyd's (as the case may be), as have been
provided by the insurer or Lloyd's to the Insurance Authority on a voluntary basis; and

(ii) in the opinion of the Insurance Authority, it is desirable that the information should be so disclosed in
the interests of existing or potential policy holders or in the public interest. (Added 31 of 2000 s. 3)

(3A) Subsection (3)(g) shall not operate to require the Insurance Authority to disclose in or in relation to any civil
proceedings any information which he may disclose, or has disclosed, pursuant to that subsection. (Added 75 of
1995 s. 7)

(3B) For the purposes of subsection (3)(e), authorized statutory office (認可法定職位) means-
(a) the Monetary Authority appointed under section 5A of the Exchange Fund Ordinance (Cap 66) in the

exercise of his functions under the Banking Ordinance (Cap 155) or the Payment Systems and Stored Value
Facilities Ordinance (Cap 584); (Amended 18 of 2015 s. 55)

(b) the Securities and Futures Commission referred to in section 3(1) of the Securities and Futures Ordinance
(Cap 571); (Added 75 of 1995 s. 7. Amended 4 of 1998 s. 3; 5 of 2002 s. 407; 18 of 2006 s. 67)

(c) the Mandatory Provident Fund Schemes Authority established by section 6 of the Mandatory Provident
Fund Schemes Ordinance (Cap 485); or (Added 4 of 1998 s. 3. Amended 18 of 2006 s. 67)

(d) the Financial Reporting Council established by section 6(1) of the Financial Reporting Council Ordinance
(Cap 588). (Added 18 of 2006 s. 67)

(3C) The Legislative Council may, by resolution, amend subsection (3B) by adding or deleting the authorized
statutory offices defined therein. (Added 75 of 1995 s. 7)

(3D) Where information is disclosed in any of the circumstances described in subsection (3), other than subsection
(3)(a), (h) and (i), neither- (Amended 31 of 2000 s. 3)
(a) the person to whom that information is disclosed; nor
(b) any person obtaining or receiving the information, whether directly or indirectly, from the person referred to

in paragraph (a),
shall disclose the information, or any part thereof, to any other person without the consent of the Insurance

Authority. (Added 75 of 1995 s. 7)
(3E) Subject to subsections (2) and (3)(b) and (c), a person who is the Insurance Authority, and a person employed or

authorized by or assisting the Insurance Authority, shall not disclose any information under this section relating
to the affairs of any individual policy holder of an insurer. (Added 31 of 2000 s. 3)

(4) Any person who contravenes subsection (1) commits an offence and is liable-
(a) on conviction upon indictment to a fine of $200000 and, in the case of an individual, to imprisonment for 2

years; or
(b) on summary conviction to a fine at level 6 and, in the case of an individual, to imprisonment for 6 months.

(Amended 35 of 1996 s. 26)
(4A) Any person who contravenes subsection (3D) commits an offence and is liable-

(a) on conviction upon indictment to a fine of $200000 and, in the case of an individual, to imprisonment for 2
years; or

(b) on summary conviction to a fine at level 6 and, in the case of an individual, to imprisonment for 6 months.
(Added 75 of 1995 s. 7)

(5) This section shall apply to-
(a) companies which make application under section 7;
(b) associations of underwriters; and
(c) Lloyd's,

as it applies to insurers.
(6) For the purposes of this section, function(職能) includes a power and a duty.

(Amended E.R. 2 of 2012)

Section: 53B Disclosure of information E.R. 2 of 2012 02/08/2012


(1) Subject to subsection (2), and notwithstanding section 53A, the Insurance Authority may disclose information to
an authority in a place outside Hong Kong where-
(a) that authority exercises functions in that place corresponding to the functions of-

(i) the Insurance Authority; or
(ii) an authorized statutory office within the meaning of section 53A(3B); and



Cap 41 - Insurance Companies Ordinance 55

(b) in the opinion of the Insurance Authority-
(i) that authority is subject to adequate secrecy provisions in that place; and
(ii) it is desirable or expedient that the information should be so disclosed in the interests of existing or

potential policy holders or the public interest; or
(iii) such disclosure will enable or assist the recipient of the information to exercise his functions and it is

not contrary to the interests of existing or potential policy holders or the public interest that the
information should be so disclosed. (Replaced 75 of 1995 s. 8)

(1A) Without limiting the generality of subsection (1), the information so disclosed to an authority in a place outside
Hong Kong by the Insurance Authority may include information on matters relating to the affairs of an insurer-
(a) which is incorporated, or which has its principal place of business, in that place;
(b) which is incorporated in or outside Hong Kong and which is a subsidiary or associate of an insurer which is

incorporated, or which has its principal place of business, in that place; or
(c) which is incorporated in Hong Kong and which has, or is proposing to establish, in that place-

(i) an office or agency for the purpose of carrying on any class of insurance business in or from that place;
or

(ii) a subsidiary or associate which is or would be subject to supervision by that authority. (Added 75 of
1995 s. 8)

(2) The Insurance Authority shall not provide any information under this section relating to the affairs of any
individual policy holder of an insurer.

(3) This section shall apply to Lloyd's as it applies to insurers.

Section: 53C Examination by external authorities E.R. 2 of 2012 02/08/2012


(1) Any office or agency of an insurer, carrying on any class of insurance business in or from Hong Kong, shall
permit the insurance supervisory authority of a place outside Hong Kong to examine its books, accounts and
transactions in Hong Kong if-
(a) that insurer-

(i) is incorporated, or has its principal place of business, in that place; or
(ii) is incorporated in or outside Hong Kong and is a subsidiary or associate of an insurer incorporated, or

which has its principal place of business, in that place; and
(b) that insurance supervisory authority has, subject to subsection (2), the approval of the Insurance Authority

to carry out such an examination.
(2) The Insurance Authority shall not give an approval referred to in subsection (1)(b) except where in his opinion it

is desirable or expedient that the examination concerned should be carried out in the interests of existing or
potential policy holders or in the public interest.

(3) This section shall apply to Lloyd's as it applies to insurers.

Section: 53D Communication by prescribed person with Insurance

Authority
E.R. 2 of 2012 02/08/2012



(1) No duty which a prescribed person may be subject to shall be regarded as contravened by reason of his
communicating in good faith to the Insurance Authority, whether or not in response to a request made by the
Insurance Authority, any information or opinion on a matter-
(a) of which he becomes aware in his capacity as a prescribed person (including, in the case of a former

auditor, former actuary or former accountant referred to in the definition of prescribed person, a matter of
which he became aware when he was an auditor, actuary or accountant, as the case may be, referred to in
that definition); and

(b) which is relevant to any function of the Insurance Authority under this Ordinance.
(2) For the avoidance of doubt, it is hereby declared that a matter referred to in subsection (1) may be a matter

which relates to a person other than an insurer or a former insurer.
(Added 59 of 1993 s. 15)





Cap 41 - Insurance Companies Ordinance 56

Section: 53E Prescribed person to send report directly to Insurance
Authority in certain cases

E.R. 2 of 2012 02/08/2012



(1) Where a prescribed person (other than an actuary or former actuary), during the performance of his duties in that
capacity in respect of the insurer concerned (including a former insurer), becomes aware of any matter
(including, in the case of a former auditor or former accountant referred to in the definition of prescribed person,
a matter of which he became aware when he was an auditor or accountant, as the case may be, referred to in that
definition) which in his opinion adversely affects the financial condition of the insurer to a material extent, the
prescribed person shall, as soon as practicable thereafter, send to the Insurance Authority a report in writing of
the matter.

(2) Where a prescribed person (other than an auditor, former auditor, accountant or former accountant), during the
performance of his duties in that capacity in respect of the insurer concerned (including a former insurer),
becomes aware of any situation (including, in the case of a former actuary referred to in the definition of
prescribed person, a situation of which he became aware when he was an actuary referred to in that definition)
which in his opinion-
(a) creates a material risk that a fund maintained by the insurer in respect of its long term business may be

insufficient to meet the liabilities attributable to that fund; or
(b) has resulted or may result in the insurer failing to satisfy an obligation in respect of its long term business to

which it is or was subject by virtue of this Ordinance,
the prescribed person shall, as soon as practicable thereafter, send to the Insurance Authority a report in writing

of the situation.
(3) Where a prescribed person, during the performance of his duties in that capacity in respect of the insurer

concerned (including a former insurer), becomes aware of evidence (including, in the case of a former auditor,
former actuary or former accountant referred to in the definition of prescribed person, evidence of which he
became aware when he was an auditor, actuary or accountant, as the case may be, referred to in that definition)-
(a) of a failure by the insurer to comply with any conditions imposed under section 8(1)(a);
(b) that there exists a ground on which the Insurance Authority would be prohibited by section 8(3)(a), (b), (d)

or (f) from authorizing the insurer if the insurer were to make application in that behalf;
(c) of a failure by the insurer to comply with any of the provisions of section 22, 22A or 23; or
(d) of any default of the insurer in complying with any requirement under section 27, 28, 29, 30, 31, 32, 33, 34

or 35(1),
the prescribed person shall, as soon as practicable thereafter, send to the Insurance Authority a report in writing

of the failure, ground or default.
(Added 59 of 1993 s. 15)


Part: IX SUPPLEMENTARY AND TRANSITIONAL 30/06/1997




Section: 54 Insurance Advisory Committee 31 of 1999 01/07/1997


Remarks:
Adaptation amendments retroactively made - see 31 of 1999 s. 3


(1) There is hereby established an Insurance Advisory Committee (the "Advisory Committee") to advise the
Chief Executive on such matters relating to the administration of this Ordinance or the carrying on of insurance
business as the Chief Executive may refer to the Committee or as the Committee may consider to be in the interests of
the insurance industry in Hong Kong. (Amended 31 of 1999 s. 3)

(2) The Advisory Committee shall consist of the chairman referred to in subsection (3), the Insurance Authority
(who shall be an ex officio member thereof) and such other persons as the Chief Executive may appoint to be
members thereof, and each such appointed member shall hold office for such period as the Chief Executive may
determine. (Amended 31 of 1999 s. 3)

(3) The Financial Secretary or his representative shall be the chairman of the Advisory Committee and shall
preside at all meetings thereof.

(4) A member of the Advisory Committee may resign at any time by notice in writing addressed to the
chairman.



Cap 41 - Insurance Companies Ordinance 57

(5) The Advisory Committee shall meet as often as may be necessary for the consideration of any matter
referred to in subsection (1) or as the chairman may, by notice in writing to each member, direct.

(6) The procedure at a meeting of the Advisory Committee shall be such as the chairman may determine.

Section: 55 Service of notices L.N. 163 of 2013 03/03/2014


Any notice or other document to be given to or served on any person under this Ordinance may be served by
post, and without prejudice to section 8 of the Interpretation and General Clauses Ordinance (Cap 1), a letter
containing that notice or other document shall be deemed to be properly addressed if it is addressed to that person at
his last known residence or business address; and for the purposes of this section "business address" (營業地址)
means- (Amended 75 of 1995 s. 9)

(a) in relation to an insurer formed or established in Hong Kong, its registered office in Hong Kong;
(b) in relation to an insurer formed or established outside Hong Kong, the address of its authorized

representative as defined by section 774 of the Companies Ordinance (Cap 622); (Amended 28 of
2012 ss. 912 & 920)

(c) in relation to a member of Lloyd's, the address in Hong Kong of the authorized representative of
Lloyd's appointed under section 50B. (Amended 51 of 1999 s. 5)



Section: 55A (Repealed 12 of 2015 s. 73) L.N. 198 of 2015 07/12/2015




Section: 55B Notification of cessation of place of business in Hong Kong 30/06/1997


(1) If an insurer incorporated or formed outside Hong Kong shall cease to have a place of business in Hong
Kong, the insurer shall give not less than 3 months' prior written notice, or such shorter prior notice as the Insurance
Authority may allow, to the Insurance Authority of such cessation.

(2) Any insurer which fails to comply with subsection (1) commits an offence and is liable to a fine of $200000
and, in the case of an individual, to imprisonment for 2 years, together with a fine of $2000 for each day on which the
failure to give the notice continues after the expiry of the period prescribed or such shorter period as may be permitted,
as the case may be, under that subsection. (Amended 35 of 1996 s. 27)

(Added 25 of 1994 s. 17)

Section: 56 Misleading statements etc. and false information; offences 30/06/1997


(1) Any person who, by any statement, promise or representation which he knows to be false, misleading or
deceptive, or by any dishonest concealment of material facts, or by the reckless making (dishonest or otherwise) of
any statement, promise or representation which is false, misleading or deceptive, induces or attempts to induce another
person to enter into or offer to enter into any contract of insurance commits an offence and is liable to a fine at level 6
and imprisonment for 12 months.

(2) Any person who causes or permits to be included in-
(a) any notice or statement or certificate served or furnished or sent out; or
(b) any document or copy of any document deposited,

under any provision of this Ordinance a statement which he knows to be false in a material particular or recklessly
causes or permits to be so included any statement which is false in a material particular commits an offence and is
liable to a fine of $200000 and, in the case of an individual, to imprisonment for 2 years.

(Amended 35 of 1996 s. 28)

Section: 56A Restriction on use of the word "insurance" or "assurance" 30/06/1997


(1) Subject to subsection (2), any person, other than an authorized insurer, an approved association of
underwriters, Lloyd's, an appointed insurance agent or an authorized insurance broker, who, without the written
consent of the Insurance Authority given generally or in any particular case or class of cases-

(a) uses the word "insurance" or "assurance" or any of its derivatives in English, or any translation thereof



Cap 41 - Insurance Companies Ordinance 58

in any language or uses the Chinese expression "保險" or the character "保" followed immediately by
the character "險", or uses the letters "i", "n", "s", "u", "r", "a", "n", "c", "e" or "a", "s", "s", "u", "r",
"a", "n", "c", "e" in that order, in the description or name under which such person is carrying on
business in or from Hong Kong; or

(b) makes any representation in any bill head, letter paper, notice, advertisement or in any other manner
whatsoever that such person-
(i) is an authorized insurer or is carrying on insurance business in or from Hong Kong;
(ii) is an appointed insurance agent or is carrying on insurance agency business in or from Hong

Kong; or
(iii) is an authorized insurance broker or is carrying on insurance brokerage business in or from Hong

Kong,
commits an offence and is liable to a fine of $200000 and, in the case of an individual, to imprisonment for 2 years.

(2) Nothing in this section shall apply to any association of insurers, insurance agents or insurance brokers
formed for the protection or promotion of their mutual interests or to any association of their employees formed for the
protection or promotion of the mutual interests of such employees.

(3) For the avoidance of doubt, "description" (描述) referred to in subsection (1)(a) includes any statement
(whether or not in writing) which uses any of the terms to which subsection (1)(a) applies where that statement may be
construed to mean that a person (however described) is-

(a) a subsidiary;
(b) the holding company; or
(c) a subsidiary of the holding company,

of an insurer, an insurance agent or an insurance broker.
(Added 35 of 1996 s. 29)


Section: 57 Liability for offences by bodies corporate 30/06/1997


When at any time a body corporate commits an offence under this Ordinance with the consent or connivance of,
or because of neglect by, any individual, the individual commits the like offence if at that time-

(a) he is a controller of the body corporate; or
(b) he is a director, manager, secretary or similar officer of the body corporate or is purporting to act as

such officer or as agent of such body corporate; or
(c) the body corporate is managed by its members, of whom he is one.


Section: 58 Limitation of time for proceedings in respect of offences 30/06/1997


Criminal proceedings for an offence under this Ordinance may be instituted at any time before, but shall not be
instituted after, the expiration of 2 years from the discovery of the offence by the Insurance Authority or 6 years from
the commission of the offence, whichever is the earlier.

Section: 58A (Repealed 29 of 1997 s. 9) 30/06/1997




Section: 59 Regulations L.N. 106 of 2002 01/07/2002


(1) The Chief Executive in Council may by regulations- (Amended 35 of 1996 s. 30; 31 of 1999 s. 3)
(a) provide for the determination, in such different ways as may be necessary for the purposes of different

provisions, of the value of the assets and the amount of the liabilities of any insurer for the purposes of
this Ordinance; (Amended 25 of 1994 s. 18)

(aa) prescribe or provide for the determination of any amount required or permitted to be prescribed or
determined for the purposes of this Ordinance; (Added 25 of 1994 s. 18)

(ab) provide for the holding in any fund or funds maintained by an insurer in respect of its long term
business of part of any excess of the value of the assets of the insurer over the amount of its liabilities;
(Added 25 of 1994 s. 18)

(b) (Repealed 50 of 1992 s. 8)



Cap 41 - Insurance Companies Ordinance 59

(c) amend the First Schedule, Part 1 of the Third Schedule and the Seventh Schedule; (Replaced 35 of
1996 s. 30)

(ca) without prejudice to the generality of paragraph (c) and subsection (2)(a) and (aa), amend the Third
Schedule so as to impose, for the purposes of this Ordinance, duties on actuaries appointed under
section 15; (Added 59 of 1993 s. 16. Amended 35 of 1996 s. 30; 29 of 1997 s. 10)

(d) prescribe anything required or permitted to be prescribed under this Ordinance.
(e) (Repealed 35 of 1996 s. 30)

(2) The Insurance Authority may, with the approval of the Secretary for Financial Services and the Treasury,
by regulations- (Amended L.N. 106 of 2002)

(a) amend the Second Schedule, Parts 2 to 9 of the Third Schedule, the Fourth Schedule, the Fifth
Schedule, the Sixth Schedule or the Eighth Schedule;

(aa) prescribe, for the purposes of this Ordinance, standards to be complied with by an actuary appointed
under section 15(1); (Added 29 of 1997 s. 10)

(b) provide for the better carrying into effect of this Ordinance. (Added 35 of 1996 s. 30)

Section: 60 Relaxation of regulations under section 59(1)(a) 30/06/1997


(1) The Insurance Authority may, at the request in writing of an insurer and provided that he is satisfied that it
would not be contrary to the interests of policy holders or potential policy holders to do so, and that it would not
adversely affect his ability to carry out his supervisory functions under this Ordinance, relax wholly or partly any of
the regulations made under section 59(1)(a) in their application to that insurer for such period and subject to such
conditions as he considers necessary or appropriate, and during any period when any such relaxation is in force, the
reference in section 8(4) to regulations made for this purpose shall, as respects that insurer, be construed as a reference
to those regulations as so relaxed.

(2) Where under subsection (1) the Insurance Authority relaxes any of the regulations made under section
59(1)(a) in respect of an insurer, he shall, as soon as practicable, publish a notice in the Gazette stating the name of the
insurer and the fact that the regulation has been relaxed under subsection (1) in respect of that insurer.

(Added 75 of 1995 s. 10. Amended 29 of 1997 s. 11)

Section: 61 Transitional and savings 30/06/1997


(1) Any insurer who immediately before the commencement of this Ordinance was authorized to carry on any
insurance business under an Ordinance repealed or amended by this Ordinance shall be deemed to be authorized under
section 8 of this Ordinance to carry on, as from the commencement of this Ordinance, the appropriate corresponding
business (within the meaning of Part 5 of the First Schedule) if, but only if, within 3 months from the commencement
of this Ordinance (or such additional period as the Insurance Authority may allow in writing in any particular case)-

(a) the insurer furnishes to the Insurance Authority the particulars specified in the Second Schedule
relating to every director and controller of the insurer; and

(b) in the case of an insurer which is a company to which Part XI of the Companies Ordinance (Cap 32)
applies, the insurer has complied with the provisions of that Part.

(2) Subject to subsection (1), any insurer who immediately before 7 May 1982 was carrying on insurance
business ("former insurance business") and-

(a) was exempted in respect of the carrying on of its former insurance business by virtue of any provision
in an Ordinance repealed or amended by this Ordinance being a provision which provided for the
exemption of persons from the requirements of such Ordinance relating to the authorization of
insurers; or

(b) whose former insurance business or part thereof was such that none of the Ordinances repealed or
amended by this Ordinance required the carrying on of its former insurance business or that part to be
authorized thereunder,

shall be deemed to be authorized under section 8 of this Ordinance to carry on the classes of insurance business
comprised in its former insurance business or, if paragraph (b) applies to a part thereof only, that part for a period of 6
months beginning on the commencement of this Ordinance and such additional period not exceeding 6 months as the
Insurance Authority may allow in writing in respect of such insurer.

(3) Where an insurer referred to in subsection (1) or (2) is charged with an offence under section 6 alleged to
have been committed after the date on which the period referred to in that subsection (including any additional period



Cap 41 - Insurance Companies Ordinance 60

allowed thereunder) expired, it shall be a defence for the insurer to show that any insurance business alleged to have
been carried on by the insurer after that date was carried on only to the extent necessary to meet obligations under
contracts entered into before that date.

(4) The provisions of Part III and the Third Schedule relating to the submission to or the deposit with the
Insurance Authority of any accounts, statements or other documents or information shall not, as respects any insurer
which was carrying on insurance business immediately before the commencement of this Ordinance, have effect in
respect of any period before the financial year of the insurer which begins on or after such commencement; and any
provision in an Ordinance repealed by this Ordinance relating to the filing or deposit of any accounts, statements or
other documents or information shall, if such provision applied to such insurer immediately before such
commencement, continue to apply to such insurer in respect of any such period as if that provision had not been
repealed.

(5) Any deposit made by an insurer under an Ordinance repealed or amended by this Ordinance which was held
by any person under that Ordinance immediately before the commencement of this Ordinance shall, as from such
commencement, be held by the Insurance Authority as if such deposit had been made with the Insurance Authority,
and shall continue to be so held for such period not exceeding 6 months from such commencement as the Insurance
Authority may determine.

(6) Any proceedings commenced under an Ordinance repealed by this Ordinance, or by virtue of the exercise
of any function conferred by that Ordinance, and pending at the commencement of this Ordinance may be continued
and disposed of thereafter as if that Ordinance had not been repealed.

Section: 62 (Omitted as spent—E.R. 2 of 2014) E.R. 2 of 2014 10/04/2014




Section: 63 Further transitional provision 30/06/1997


Section 5(1)(b) of this Ordinance as amended by section 2(a) of the Insurance Companies (Amendment)
Ordinance 1988 (34 of 1988) shall apply to an authorized insurer whether authorized before, on or after the
commencement of that Ordinance.

(34 of 1988 s. 7 incorporated)

Section: 64 (Repealed 35 of 1996 s. 31) 30/06/1997




Part: IXA CERTAIN CONTRACTS OF INSURANCE TO BE VOID 30/06/1997


(Part IXA added 29 of 1997 s. 12)


Section: 64A Interpretation (Part IXA) 30/06/1997


(1) In this Part-
"guardian" (監護人) means a guardian appointed under or acting by virtue of the Guardianship of Minors Ordinance

(Cap 13);
"parent" (父母), in relation to a minor, means father or mother.

(2) For the purpose of this Part, a parent of a minor, or a guardian of a ward under 18 years of age, shall be
deemed to have an interest in the life of the minor or the ward, as the case may be.

Section: 64B No contract of insurance to be made without interest 30/06/1997


(1) No contract of insurance shall be entered into on the life of any person or on any other event-
(a) if the person for whose use or benefit or on whose account the contract is to be entered into has no

interest; or
(b) by way of gaming or wagering.

(2) A contract of insurance entered into in contravention of subsection (1) is void by reason of that



Cap 41 - Insurance Companies Ordinance 61

contravention.

Section: 64C No contract of insurance on lives without inserting the

persons' names, etc.
30/06/1997



(1) Subject to subsections (3) and (4), no contract of insurance shall be entered into on the life of any person or
other event without inserting in the contract the name of the person-

(a) interested in the life or event; or
(b) for whose use or benefit or on whose account the contract is entered into.

(2) A contract of insurance entered into in contravention of subsection (1) is void by reason of that
contravention.

(3) Subsections (1) and (2) shall not invalidate a contract of insurance for the benefit of unnamed persons form
time to time falling within a specified class or description if the class or description is stated in the contract with
sufficient particularity to make it possible to establish the identity of all persons who at any given time are entitled to
benefit under the contract.

(4) Subsection (3) applies to contracts of insurance effected before the commencement of the Insurance
Companies (Amendment) Ordinance 1985 (8 of 1985) as well as to contracts of insurance effected thereafter.

Section: 64D Recoverable amount 30/06/1997


Where the insured under a contract of insurance has an interest in a life or event, no greater sum shall be
recovered from the insurer under the contract than the amount of value of the interest of the insured in that life or
event.

Section: 64E Not to extend to ships, etc. 30/06/1997


It is hereby declared that the provisions of this Part shall not extend, or be construed to extend, to contracts of
insurance bona fide made by any person on ships, goods or merchandise.

Part: X INSURANCE INTERMEDIARIES 30/06/1997


(Part X added 76 of 1994 s. 4)

Section: 65 Insurance agents and insurance brokers 30/06/1997


(1) A person shall not hold himself out as-
(a) an insurance agent unless he is an appointed insurance agent; or
(b) an insurance broker unless he is an authorized insurance broker.

(2) The Insurance Authority has the power by regulation to set the maximum number of insurers for which an
appointed insurance agent may act at any one time.

(3) A person shall not be an appointed insurance agent and an authorized insurance broker at the same time
whether in relation to the same or different clients.

(4) A proprietor of, or partner in, an insurance agent shall not be a proprietor or employee of, or partner in,
another insurance agent or an insurance broker.

(5) An employee of an insurance agent who provides advice to a policy holder or potential policy holder on
insurance matters shall not be a proprietor or employee of, or partner in, another insurance agent or an insurance
broker.

(6) A proprietor or employee of, or partner in, an insurance agent may be a director of another insurance agent
or of an insurance broker only if he does not provide advice to policy holders or potential policy holders on insurance
matters for the company.

(7) A director of a company which carries on business as an insurance agent and which director provides
advice to a policy holder or potential policy holder on insurance matters, may be a director of another insurance agent
or of an insurance broker only if he does not provide advice to policy holders or potential policy holders on insurance
matters for the other company.



Cap 41 - Insurance Companies Ordinance 62

(8) A proprietor of, or partner in, an insurance broker shall not be a proprietor or employee of, or partner in, an
insurance agent.

(9) An employee of an insurance broker who provides advice to a policy holder or potential policy holder on
insurance matters shall not be a proprietor or employee of, or partner in, an insurance agent.

(10) A proprietor or employee of, or partner in, an insurance broker may be a director of an insurance agent only
if he does not provide advice to policy holders or potential policy holders on insurance matters for the insurance agent.

(11) A director of a company which carries on business as an insurance broker and which director provides
advice to a policy holder or potential policy holder on insurance matters, may be a director of an insurance agent only
if he does not provide advice to policy holders or potential policy holders on insurance matters for the insurance agent.

(12) Nothing in this section prevents a person from being the agent of more than one insurer.
(13) An insurer shall not-

(a) effect a contract of insurance through an insurance intermediary in Hong Kong; or
(b) accept any insurance business referred to it by an insurance intermediary in Hong Kong,

unless the intermediary is its appointed insurance agent or an authorized insurance broker.
(14) Where an insurer enters into a contract of insurance contrary to subsection (13), the contract shall, at the

option of the policy holder, be either-
(a) enforceable against the insurer by the policy holder, even though there is a contravention; or
(b) void by reason of the contravention.

(15) A policy holder who under subsection (14)(b) opts to void a contract of insurance before the expiration of
the contract is entitled to recover any consideration paid by him under the contract.

Section: 66 Registration of appointed insurance agents 30/06/1997


(1) An insurer is required to keep a register of appointed insurance agents and to record in the register details of
insurance agents it has appointed.

(2) An insurer is required to keep a register of appointed insurance agents in the form the Insurance Authority
specifies.

(3) An insurer is required to ensure that details of its register of appointed insurance agents are available to the
public during normal office hours either-

(a) at its registered office in Hong Kong, principal place of business in Hong Kong or the office of its
authorized representative in Hong Kong; or

(b) at a place the Insurance Authority approves.
(4) An insurer is required to give the Insurance Authority details of the registration and removal of appointed

insurance agents, within 7 days of the registration or removal of appointed insurance agents, verified in the manner the
Insurance Authority specifies.

(5) The Insurance Authority has the power to give an appointed insurance agent notice that the appointed
insurance agent has, in the opinion of the Insurance Authority, breached the code of practice.

(6) An appointed insurance agent has 14 days in which to satisfy the Insurance Authority that-
(a) he has not breached the code of practice as alleged; or
(b) the breach of the code of practice was not sufficient to warrant de-registration as an appointed

insurance agent.
(7) If the Insurance Authority is not satisfied by an appointed insurance agent that-

(a) he has not breached the code of practice; or
(b) the breach does not warrant de-registration,

the Insurance Authority has the power to direct the insurer with which the appointed insurance agent is registered to
de-register the appointed insurance agent and remove his name from the register and the person is required to cease
acting as an insurance agent.

(8) A person who is de-registered as an appointed insurance agent under subsection (7) and who considers that
the de-registration is unjust in the circumstances, has the right to appeal to the Financial Secretary.

(9) The de-registration of an appointed insurance agent under subsection (7) takes effect even though the
person appeals to the Financial Secretary.

Section: 67 Code of practice 30/06/1997


(1) The Hong Kong Federation of Insurers is required, with the approval of the Insurance Authority, to issue a



Cap 41 - Insurance Companies Ordinance 63

code of practice for the administration of insurance agents.
(2) The Hong Kong Federation of Insurers is required to amend the code of practice for the administration of

insurance agents as the Insurance Authority directs.
(3) The Hong Kong Federation of Insurers is not, without the prior written approval of the Insurance Authority,

to amend or withdraw the code of practice.
(4) An insurer is required to comply with a code of practice approved under this section in its administration of

insurance agents.
(5) The Insurance Authority has the power to require an insurer and an insurance agent to supply information

that verifies the insurer's, or the insurance agent's, compliance with the code of practice.

Section: 68 Insurance agent's relationship with insurer 30/06/1997


(1) An appointed insurance agent is the agent of the insurer in the agent's dealings with a person other than the
insurer for the issue of a contract of insurance and insurance business relating to the contract.

(2) An insurer is not able to exclude or limit its liability for the actions of its appointed insurance agent in the
dealings for the issue of a contract of insurance and insurance business relating to the contract.

(3) A provision in a contract of insurance or an agency contract that contravenes subsection (1) or (2) is void.
(4) Where, in an insurance transaction undertaken by an appointed insurance agent, a particular insurer is not

able to be identified, the insurers which have appointed the insurance agent as an appointed insurance agent to conduct
the class of business that relates to the claim by the proposed insured are jointly and severally liable for the damages
arising as a result of the actions of the appointed insurance agent.

(5) The liability of an insurer under this section arises whether the appointed insurance agent purports to act as
a principal or as an agent for an undisclosed or disclosed principal.

(6) In assessing liability for a claim under subsection (4), the court is required to be satisfied that the proposed
insured has acted in the utmost good faith and without contributing to the failure on the part of the insurance agent to
effect the proposed insurance contract.

Section: 69 Insurance brokers to be authorized 30/06/1997


(1) The Insurance Authority has the power to authorize an insurance broker who complies with this section and
pays the prescribed fee for authorization or renewal of authorization.

(2) Before the Insurance Authority authorizes an insurance broker, he is required to satisfy himself that the
person complies at least with the minimum requirements specified by the Insurance Authority for-

(a) qualifications and experience;
(b) capital and net assets;
(c) professional indemnity insurance;
(d) keeping of separate client accounts;
(e) keeping proper books and accounts,

and that the person is a fit and proper person to be an insurance broker.
(3) The Insurance Authority is required to maintain a register of authorized insurance brokers authorized by

him under subsection (1), and to keep the register open to the public during normal office hours on payment of the
prescribed fee.

(4) The Insurance Authority has the power by regulation-
(a) to prescribe the fees payable under this section; and
(b) to prescribe further requirements relating to the ability of a person or an authorized insurance broker to

competently carry out his functions as an insurance broker.
(5) The Insurance Authority has the power to require an insurance broker authorized under this section to

supply information that verifies the insurance broker's compliance with this section.
(6) The Insurance Authority has the power to impose conditions on the authorization of an insurance broker to

ensure that the insurance broker functions properly and that policy holders and potential policy holders are protected.

Section: 70 Approval of bodies of insurance brokers 30/06/1997


(1) The Insurance Authority has the power to approve a body of insurance brokers that complies with this
section and pays the prescribed fee for approval or renewal of approval.



Cap 41 - Insurance Companies Ordinance 64

(2) Before the Insurance Authority approves a body of insurance brokers, he is required to satisfy himself that
the body has adequate provision in its regulations for members to comply with the minimum requirements specified
by the Insurance Authority for-

(a) qualifications and experience;
(b) capital and net assets;
(c) professional indemnity insurance;
(d) keeping of separate client accounts;
(e) keeping proper books and accounts,

and to ensure that its constituent members are fit and proper persons to be insurance brokers.
(3) The Insurance Authority is required to be satisfied that the body of insurance brokers seeking approval-

(a) is managed or supervised by persons who are fit and proper persons to manage or supervise a body of
insurance brokers; and

(b) has an appropriate system of disciplinary procedures in place to deal with breaches of proper conduct
by members of the body.

(4) An approved body of insurance brokers is required to maintain at its registered office or principal place of
business in Hong Kong a register of its members in which it will record the information required by the Insurance
Authority for each member of the approved body and to keep the register open to the public during normal office
hours.

(5) The Insurance Authority is required to maintain a register of approved bodies of insurance brokers
approved by him under subsection (1), and to keep the register open to the public during normal office hours on
payment of the prescribed fee.

(6) The Insurance Authority has the power by regulation-
(a) to prescribe the fees payable under this section; and
(b) to prescribe further requirements relating to the ability of an applicant or an authorized insurance

broker to competently carry out his functions as an insurance broker.
(7) The Insurance Authority has the power to require a body of insurance brokers and an insurance broker who

is a member of a body of insurance brokers approved under this section to supply information that verifies the body's,
or the insurance broker's, compliance with this section.

(8) The Insurance Authority has the power to impose conditions on the approval of a body of insurance brokers
to ensure that its members function properly and that policy holders and potential policy holders are protected.

Section: 71 Insurance broker's client monies 30/06/1997


(1) An insurance broker who is authorized or a member of an approved body of insurance brokers is required to
keep client monies in a bank account separate from his own monies.

(2) An insurance broker is not allowed to use client monies for any purpose other than for the purposes of the
client.

(3) An insurance broker is entitled to retain the interest that is earned on client monies that he holds unless the
insurance broker and the client agree otherwise.

(4) A lien or claim on client monies made by or through the insurance broker is void unless the monies in the
client account are for fees then due and owing to the insurance broker.

(5) A charge or mortgage on client monies made by the insurance broker is void.

Section: 72 Appointment of auditor L.N. 163 of 2013 03/03/2014


(1) An insurance broker shall appoint as its auditor-
(a) a person who is qualified for appointment as auditor of a company under the Professional Accountants

Ordinance (Cap 50) and is not disqualified under section 393 of the Companies Ordinance (Cap 622);
or (Amended 28 of 2012 ss. 912 & 920)

(b) for an insurance broker incorporated outside Hong Kong, a person-
(i) who may lawfully practise as an auditor in the place of its incorporation; and
(ii) who holds a qualification that the Insurance Authority accepts as being of a standard comparable

to that of a person referred to in paragraph (a).
(2) An insurance broker shall appoint an auditor-

(a) if the insurance broker is carrying on business as an insurance broker at the commencement of this



Cap 41 - Insurance Companies Ordinance 65

section, within 1 month from such commencement; or
(b) if the insurance broker begins to carry on business as an insurance broker after the commencement of

this section, within 1 month from beginning to do so.
(3) An insurance broker shall within 1 month from appointing an auditor under subsection (1) serve on the

Insurance Authority a notice in writing of the appointment and the name and qualifications of the auditor appointed.
(4) If the appointment of an auditor ends, the insurance broker shall within 1 month from the ending of the

appointment-
(a) appoint a new auditor; and
(b) serve notice on the Insurance Authority of the ending and new appointment.


Section: 73 Audit, etc. 30/06/1997


(1) An authorized insurance broker, authorized by the Insurance Authority under section 69, is required to give
the Insurance Authority each year, at a time specified by the Insurance Authority, a copy of the audited profit and loss
account for the last preceding financial year, a copy of the audited income and expenditure account for the last
preceding financial year, a copy of the audited balance sheet as at the end of the last preceding financial year, an
auditor's report on the financial statements, an auditor's report as to whether the auditor is of the opinion that the
person has continued to satisfy the minimum requirements for capital and net assets, professional indemnity insurance,
keeping of separate client accounts and keeping of proper books and accounts and such further evidence as the
Insurance Authority requires to show that the authorized insurance broker has continued to comply with the
requirements under section 69.

(2) An approved body of insurance brokers is required to give the Insurance Authority each year, at a time
specified by the Insurance Authority, an auditor's report to the extent and in the manner set out by the Insurance
Authority on the continued compliance by the members of the approved body with the minimum requirements for
capital and net assets, professional indemnity insurance, keeping of separate client accounts and keeping of proper
books and accounts and such further evidence as the Insurance Authority requires to show that the approved body of
insurance brokers and its members have continued to comply with the requirements under section 70.

(3) The Insurance Authority has the power to require an authorized insurance broker which is a body corporate
or a partnership to supply particulars of its membership as the Insurance Authority requires, verified in a specified
manner.

(4) The Insurance Authority has the power to require an approved body of insurance brokers to supply-
(a) particulars contained in the register maintained under section 70(4); and
(b) any other particulars of its members that the Insurance Authority requires,

verified in a specified manner.

Section: 74 Powers of Insurance Authority to require production, etc. L.N. 163 of 2013 03/03/2014


(1) The Insurance Authority has the power in requiring information under this Part to require an insurer,
insurance agent, insurance broker or approved body of insurance brokers to produce, at the time and place as he
specifies, the books or papers he specifies and has the power to authorize a person, on producing (if required so to do)
evidence of his authority, to require an insurer, insurance agent, insurance broker or approved body of insurance
brokers to produce to him forthwith any books or papers which that person specifies.

(2) Where the Insurance Authority or a person authorized by him has power to require the production of any
books or papers from an insurer, insurance agent, insurance broker or approved body of insurance brokers, the
Insurance Authority or the authorized person shall have the same power to require production of those books or papers
from any person who appears to him to be in possession of them.

(3) A power to require an insurer, insurance agent, insurance broker or approved body of insurance brokers or
other person to produce books or papers shall include power-

(a) if the books or papers are produced-
(i) to take copies of them or extracts from them; and
(ii) to require the person, or any other person who is a present or past director, controller, auditor or

actuary of, or is or was at any time employed by, the insurer, insurance agent, insurance broker
or approved body of insurance brokers in question, to provide an explanation of any of them;

(b) if the books or papers are not produced, to require the person who was required to produce them to
state, to the best of his knowledge and belief, where they are.



Cap 41 - Insurance Companies Ordinance 66

(4) A statement made by a person in compliance with a requirement under this section may be used in evidence
against him.

(5) (Repealed 28 of 2012 ss. 912 & 920)

Section: 75 Withdrawal of authorization or approval 30/06/1997


(1) The Insurance Authority has the power to withdraw the authorization of an insurance broker or the approval
of a body of insurance brokers if he is satisfied that-

(a) the authorized insurance broker has failed to comply with a requirement under section 69;
(b) the approved body has failed to comply with a requirement under section 70; or
(c) the withdrawal is justified in the interests of-

(i) policy holders or potential policy holders; or
(ii) the public.

(2) A person aggrieved by a decision of the Insurance Authority under subsection (1) has the right, within 1
month of the decision being notified to him, to appeal to the Financial Secretary.

Section: 76 Power to petition to wind up an intermediary L.N. 163 of 2013 03/03/2014


(1) If an insurance intermediary is-
(a) a company which may be wound up by the Court of First Instance under the Companies (Winding Up

and Miscellaneous Provisions) Ordinance (Cap 32); or (Amended 28 of 2012 ss. 912 & 920)
(b) an individual,

and the Insurance Authority considers that it is in the public interest that the company should be wound up, or the
individual made bankrupt, the Insurance Authority has the power to present a petition for-

(i) the company to be wound up if the Court of First Instance thinks it just and equitable for it to be
wound up; or

(ii) the individual to be declared bankrupt.
(2) If the company is already being wound up by the Court of First Instance, the Insurance Authority is not

entitled to present a petition under subsection (1) for it to be wound up.
(Amended 25 of 1998 s. 2)


Section: 77 Offences E.R. 2 of 2014 10/04/2014


(1) A person who holds himself out to be an insurance agent of an insurer who is not an appointed insurance
agent of the insurer commits an offence and is liable-

(a) on conviction upon indictment to a fine of $1000000 and to imprisonment for 2 years; and
(b) on summary conviction to a fine at level 6 and to imprisonment for 6 months.

(2) A person who holds himself out to be an insurance broker who is not an authorized insurance broker
commits an offence and is liable-

(a) on conviction upon indictment to a fine of $1000000 and to imprisonment for 2 years; and
(b) on summary conviction to a fine at level 6 and to imprisonment for 6 months.

(3) A person who holds himself out to be an appointed insurance agent and an authorized insurance broker at
the same time commits an offence and is liable on summary conviction to a fine at level 6 and to imprisonment for 6
months.

(4) An insurance agent who is appointed as an insurance agent by an insurer when he is the appointed agent of
the maximum number of insurers set by regulations commits an offence and is liable on summary conviction to a fine
at level 6.

(5) A person who contravenes section 65(4), (5), (6), (7), (8), (9), (10) or (11) commits an offence and is liable
on summary conviction to a fine at level 6 and imprisonment for 6 months.

(6) An appointed insurance agent who fails-
(a) to supply information that is required under section 67(5) that verifies compliance with the code of

practice;
(b) to produce books or papers required under section 74,

commits an offence and is liable on summary conviction to a fine at level 6 and to an additional fine of $500 for each
day on which the magistrate is satisfied that the failure continued.



Cap 41 - Insurance Companies Ordinance 67

(7) An insurer who-
(a) effects a contract of insurance through an insurance intermediary; or
(b) accepts any insurance business referred to it by an insurance intermediary,

who is not-
(i) its appointed insurance agent; or
(ii) an authorized insurance broker,

commits an offence and is liable-
(A) on conviction upon indictment to a fine of $1000000 and to imprisonment for 2 years; and
(B) on summary conviction to a fine at level 6 and to imprisonment for 6 months.

(8) An insurer who fails-
(a) to keep a register under section 66(1);
(b) to keep the register under section 66(1) in the form specified by the Insurance Authority under section

66(2);
(c) to ensure that details of the register required to be kept under section 66(1) are available to the public

in accordance with section 66(3);
(d) to furnish the Insurance Authority with details of the registration or removal of appointed insurance

agents under section 66(4) verified in the specified manner;
(e) to supply information that is required under section 67(5) that verifies compliance with the code of

practice;
(f) to produce books or papers required under section 74,

commits an offence and is liable on summary conviction to a fine at level 6 and to an additional fine of $500 for each
day on which the magistrate is satisfied that the failure continued.

(9) An insurer who-
(a) appoints an agent knowing that the appointment causes the agent to be appointed by more than the

prescribed number of principals;
(b) appoints an agent with less than the minimum qualifications set under an approved code of practice;
(c) appoints an agent under a written agency agreement that fails to meet, in a material respect, the

minimum requirements of a model agency agreement adopted by the Hong Kong Federation of
Insurers under an approved code of practice;

(d) confirms the appointment of an insurance agent without the confirmation of the Insurance Agents
Registration Board set up by the Hong Kong Federation of Insurers; or

(e) fails, where the Insurance Agents Registration Board set up by the Hong Kong Federation of Insurers
refers a complaint to the insurer-
(i) to investigate the complaint;
(ii) to report to the Insurance Agents Registration Board the findings of the investigation and the

action taken, if any; or
(iii) to take disciplinary action as required by the Insurance Agents Registration Board,

commits an offence and is liable-
(i) on conviction on indictment to a fine of $1000000 and to imprisonment for 2 years;
(ii) on summary conviction to a fine at level 6.

(10) An insurer who fails, other than as set out in subsection (9), to comply with a code of practice approved
under section 67 commits an offence and is liable to a fine at level 6.

(11) An authorized insurance broker who fails-
(a) to supply information required by the Insurance Authority under section 70;
(b) to supply particulars required under section 73 to the Insurance Authority;
(c) to produce books or papers required under section 74,

commits an offence and is liable on summary conviction to a fine at level 6 and to an additional fine of $500 for each
day on which the magistrate is satisfied that the failure continued.

(12) An authorized insurance broker who-
(a) fails to keep client monies in separate accounts; or
(b) gives a mortgage or charge over client monies,

commits an offence and is liable-
(i) on conviction upon indictment to a fine of $1000000 and to imprisonment for 5 years; and
(ii) on summary conviction to a fine at level 6 and to imprisonment for 6 months.

(13) An approved body of insurance brokers which fails-



Cap 41 - Insurance Companies Ordinance 68

(a) to keep a register under section 70;
(b) to keep information in the register under section 70 specified by the Insurance Authority;
(c) to supply information required by the Insurance Authority under section 70;
(d) to supply particulars required under section 73 to the Insurance Authority;
(e) to produce books or papers required under section 74,

commits an offence and is liable on summary conviction to a fine at level 6 and to an additional fine of $500 for each
day on which the magistrate is satisfied that the failure continued.

(14) An insurance broker who fails to comply with section 72 commits an offence and is liable to a fine at level
3, together with a further fine of $500 for each day on which the magistrate is satisfied that the offence continued.

(Amended E.R. 2 of 2014)

Section: 78 Exemptions 30/06/1997


(1) An authorized insurer and Lloyd's are not required to be appointed as an insurance agent or authorized as an
insurance broker.

(2) The exemption given under subsection (1) extends only to an authorized insurer and to Lloyd's and does not
extend to an agent of the exempted person.

(3) A person who holds himself out in Hong Kong as an insurance broker for contracts of reinsurance only,
other than-

(a) a body corporate incorporated in Hong Kong;
(b) a body corporate incorporated elsewhere which has a place of business in Hong Kong or is represented

in Hong Kong by an agent;
(c) any other person or any partnership having a place of business in Hong Kong,

is not required to be authorized as an insurance broker.
(4) Where an insurance broker has arranged a contract of insurance that is entered into prior to the

commencement of the Insurance Companies (Amendment) (No. 3) Ordinance 1994 (76 of 1994), the insurance broker
is not required to seek authorization or approval under this Ordinance to service the requirements of the contract of
insurance.

(5) The exemption given by subsection (4) does not extend past 4 years from the date of commencement of the
Insurance Companies (Amendment) (No. 3) Ordinance 1994 (76 of 1994).

Part: XI Disciplinary Actions and Conduct Requirements for

Licensed Insurance Intermediaries and Certain Officers




Remarks:
Not yet in operation

Part:
Division:

XI
1

Preliminary



Remarks:
Not yet in operation

Section: 80 Interpretation


Remarks:
Not yet in operation

(1) In this Part—
controller (控權人) has the meaning given by section 64F;
misconduct (不當行為) means—

(a) a contravention of a provision of this Ordinance;
(b) a contravention of a term or condition of a licence granted under this Ordinance;
(c) a contravention of any other condition imposed under a provision of this Ordinance; or



Cap 41 - Insurance Companies Ordinance 69

(d) an act or omission relating to the carrying on of any regulated activity which, in the Authority’s opinion,
is or is likely to be prejudicial to the interests of policy holders or potential policy holders or the public
interest,

and guilty of misconduct (犯不當行為) is to be construed accordingly;
regulated person (受規管人士) means—

(a) a licensed insurance intermediary;
(b) a responsible officer of a licensed insurance agency;
(c) a responsible officer of a licensed insurance broker company;
(d) a person concerned in the management of the regulated activities carried on by a licensed insurance agency;

or
(e) a person concerned in the management of the regulated activities carried on by a licensed insurance broker

company.
(2) For the purposes of paragraph (d) of the definition of misconduct in subsection (1), the Authority must not form

an opinion that an act or omission is or is likely to be prejudicial to the interests of policy holders or potential
policy holders or the public interest, unless it has had regard to those provisions set out in any code of conduct
published under section 95 or any code or guideline published under section 133, that are in force at the time of
the occurrence of, and applicable in relation to, the act or omission.

(3) If—
(a) a licensed insurance agency is, or was at any time, guilty of misconduct; or
(b) a former licensed insurance agency was at any time guilty of misconduct,

as a result of a conduct occurring with the consent or connivance of, or attributable to neglect on the part of, a
person specified in subsection (4), the conduct is also to be regarded as misconduct on the part of the person, and
guilty of misconduct (犯不當行為) is to be construed accordingly.

(4) The person specified for subsection (3) is—
(a) a responsible officer or former responsible officer of the agency; or
(b) a person concerned in the management of the regulated activities carried on by the agency.

(5) If—
(a) a licensed insurance broker company is, or was at any time, guilty of misconduct; or
(b) a former licensed insurance broker company was at any time guilty of misconduct,

as a result of a conduct occurring with the consent or connivance of, or attributable to neglect on the part of, a
person specified in subsection (6), the conduct is also to be regarded as misconduct on the part of the person, and
guilty of misconduct (犯不當行為) is to be construed accordingly.

(6) The person specified for subsection (5) is—
(a) a responsible officer or former responsible officer of the company; or
(b) a person concerned in the management of the regulated activities carried on by the company.


Part:
Division:

XI
2

Powers of Authority



Remarks:
Not yet in operation

Section: 81 Disciplinary action in respect of regulated persons


Remarks:
Not yet in operation

(1) The Authority may exercise any of the powers specified in subsection (4) in respect of a person if—

(a) the person is, or was at any time, guilty of misconduct when the person is a regulated person;
(b) the person was at any time guilty of misconduct when the person was a regulated person; or
(c) the Authority is of the opinion that—

(i) at the time when the person is a regulated person, the person is not a fit and proper person; or
(ii) at a time when the person was a regulated person, the person was not a fit and proper person.



Cap 41 - Insurance Companies Ordinance 70

(2) The Authority may also exercise any of the powers specified in subsection (4)(a) in respect of a person who is a
licensed insurance intermediary if—
(a) for a person who is an individual—

(i) the person enters into a voluntary arrangement with creditors, or has a bankruptcy order made against
the individual, under the Bankruptcy Ordinance (Cap 6);

(ii) the person is convicted of an offence in Hong Kong or elsewhere, which in the opinion of the
Authority impugns the fitness and properness of the person to remain licensed; or

(iii) the person has been found by a court to be mentally incapacitated, or is detained in a mental hospital,
under the Mental Health Ordinance (Cap 136), which in the opinion of the Authority impugns the
fitness and properness of the person to remain licensed;

(b) for a person that is a partnership—
(i) any of the partners of the person enters into a voluntary arrangement with creditors, or has a

bankruptcy order made against the partner, under the Bankruptcy Ordinance (Cap 6);
(ii) any of the partners of the person is convicted of an offence in Hong Kong or elsewhere, which in the

opinion of the Authority impugns the fitness and properness of the person to remain licensed; or
(iii) any of the partners of the person has been found by a court to be mentally incapacitated, or is detained

in a mental hospital, under the Mental Health Ordinance (Cap 136), which in the opinion of the
Authority impugns the fitness and properness of the person to remain licensed;

(c) for a person that is a company—
(i) a receiver or manager of the property or business of the person is appointed;
(ii) the person enters into a scheme of arrangement with its creditors;
(iii) the person goes into liquidation;
(iv) the person is convicted of an offence in Hong Kong or elsewhere, which in the opinion of the

Authority impugns the fitness and properness of the person to remain licensed;
(v) any of the directors of the person is convicted of an offence in Hong Kong or elsewhere, which in the

opinion of the Authority impugns the fitness and properness of the person to remain licensed; or
(vi) any of the directors of the person has been found by a court to be mentally incapacitated, or is detained

in a mental hospital, under the Mental Health Ordinance (Cap 136), which in the opinion of the
Authority impugns the fitness and properness of the person to remain licensed; or

(d) for a person that is a sole proprietorship, partnership or company—any of the controllers of the person is
convicted of an offence in Hong Kong or elsewhere, which in the opinion of the Authority impugns the
fitness and properness of the person to remain licensed.

(3) The Authority may also exercise any of the powers specified in subsection (4)(b) in respect of a person who is a
responsible officer of a licensed insurance agency or a licensed insurance broker company if—
(a) the person is convicted of an offence in Hong Kong or elsewhere; and
(b) in the opinion of the Authority, the conviction impugns the fitness and properness of the person to remain

as a responsible officer.
(4) The following powers are specified for subsections (1), (2) and (3)—

(a) for a person who is a licensed insurance intermediary—
(i) to revoke the licence of the person;
(ii) to suspend the licence of the person, for a period or until the occurrence of an event that the Authority

specifies;
(b) for a person who is a responsible officer—

(i) to revoke the approval of the person as a responsible officer;
(ii) to suspend the approval of the person as a responsible officer for a period or until the occurrence of an

event that the Authority specifies;
(c) for a person who is or was a regulated person—

(i) to prohibit the person from applying to be licensed for a period or until the occurrence of an event that
the Authority specifies;

(ii) to prohibit the person from being appointed as a responsible officer for a period or until the occurrence
of an event that the Authority specifies;

(d) for a person who is or was a regulated person—to reprimand the person publicly or privately;
(e) for a person who is or was a regulated person—to order the person to pay a pecuniary penalty not exceeding



Cap 41 - Insurance Companies Ordinance 71

the amount which is the greater of—
(i) $10000000; or
(ii) 3 times the amount of the profit gained or loss avoided by the person as a result of the misconduct, or

of the other conduct of the person which leads the Authority to form the opinion referred to in
subsection (1)(c).

(5) If the Authority has exercised its power under subsection (1), (2) or (3), it may disclose to the public details of
its decision, the reasons for which the decision was made, and any material facts relating to the case.

(6) The Authority, in forming an opinion for subsection (1)(c), may, among other matters (including those specified
in section 64ZZA), take into account the present or past conduct of the person.


Section: 82 Procedural requirements in respect of exercise of powers

under section 81




Remarks:
Not yet in operation

(1) The Authority must not exercise a power under section 81 without first giving the person in respect of whom the

power is to be exercised a reasonable opportunity of being heard.
(2) If the Authority decides to exercise a power under section 81 in respect of a person, the Authority must inform

the person of its decision to do so by notice in writing.
(3) The notice must include—

(a) a statement of the reasons for the decision;
(b) the time when the decision is to take effect;
(c) in so far as applicable, the duration and terms of the revocation, suspension or prohibition to be imposed

under the decision;
(d) in so far as applicable, the terms in which the person is to be reprimanded under the decision; and
(e) in so far as applicable, the amount of the pecuniary penalty to be imposed under the decision and the period

within which it is required to be paid.
(4) The Authority must consult the Monetary Authority before exercising a power under section 81 in respect of—

(a) an authorized institution;
(b) a person who—

(i) is, or was, a regulated person; and
(ii) is, or was, employed by an authorized institution; or

(c) a person who—
(i) is, or was, a regulated person; and
(ii) is, or was, appointed as an agent by an authorized institution,

in relation to any regulated activity carried on by the institution.
(5) In subsection (1), a reference to an opportunity of being heard is a reference to an opportunity to make written

representations or oral representations.

Section: 83 Guidelines for exercise of power to impose pecuniary

penalty under section 81




Remarks:
Not yet in operation

(1) The Authority must not exercise a power under section 81 to impose a pecuniary penalty unless—

(a) it has published, in the Gazette and in any other manner it considers appropriate, guidelines to indicate the
way in which it proposes to exercise that power; and

(b) in exercising that power, it has had regard to the guidelines so published.
(2) The guidelines are not subsidiary legislation.
(3) The Authority must consult the Monetary Authority before publishing any guideline under subsection (1).




Cap 41 - Insurance Companies Ordinance 72

Section: 84 General provisions relating to exercise of disciplinary
powers





Remarks:
Not yet in operation

(1) At any time when the Authority is contemplating exercising a power under section 81, it may, if it considers it

appropriate to do so in the interests of policy holders or potential policy holders or the public interest, by
agreement with the person concerned—
(a) exercise a power that the Authority may exercise in respect of the person under section 81; and
(b) take an additional action that the Authority considers appropriate in the circumstances of the case.

(2) If the Authority exercises a power or takes an additional action in respect of a person under subsection (1), it
must comply with section 82 as if that section applied to the power or action, unless the person agrees otherwise.

(3) In reaching a decision under this Part, the Authority may have regard to any information or material in its
possession which is relevant to the decision, regardless of how the information or material has come into its
possession.

(4) The Authority must consult the Monetary Authority before exercising a power under subsection (1) in respect of

(a) an authorized institution;
(b) a person who—

(i) is, or was, a regulated person; and
(ii) is, or was, employed by an authorized institution; or

(c) a person who—
(i) is, or was, a regulated person; and
(ii) is, or was, appointed as an agent by an authorized institution,

in relation to any regulated activity carried on by the institution.

Section: 85 Order for payment of pecuniary penalty


Remarks:
Not yet in operation

(1) A person ordered to pay a pecuniary penalty under section 81 must pay the penalty to the Authority within 30

days, or a longer period that the Authority specifies by notice under section 82(3)(e), after the order has taken
effect.

(2) The Court of First Instance may, on an application of the Authority, register an order to pay a pecuniary penalty
made under section 81 in the Court.

(3) On registration, the order is to be regarded as an order of the Court of First Instance made within the civil
jurisdiction of the Court for the payment of money.

(4) For making an application under subsection (2), the Authority must produce to the Registrar of the High Court a
notice in writing requesting that the order be registered, together with the original and a copy of the order.

(5) A pecuniary penalty paid to or recovered by the Authority under an order made under section 81 must be paid by
the Authority into the general revenue.


Part:
Division:

XI
3

Consequences of Revocation or Suspension under Division
2





Remarks:
Not yet in operation

Section: 86 Effect of suspension under section 81


Remarks:
Not yet in operation



Cap 41 - Insurance Companies Ordinance 73


(1) If a licence or approval of a person is suspended under section 81, the person must, during the suspension period


(a) continue to be regarded for the purposes of this Ordinance, but not sections 64G, 64ZE, 64ZF, 64ZN and

64ZO, to be licensed; and
(b) without limiting paragraph (a), continue to be required to comply with the provisions of this Ordinance

relating to a licensed insurance intermediary or responsible officer as would apply to the person were the
licence or approval not so suspended.

(2) Without limiting the powers that can be exercised by the Authority under section 81, the Authority may—
(a) revoke the licence of a person under this Part even though the licence is suspended under section 81; or
(b) revoke the approval of a person under this Part even though the approval is suspended under section 81.


Section: 87 Revocation or suspension of licence does not avoid or affect

agreement, etc.




Remarks:
Not yet in operation

Subject to section 64N, a revocation or suspension of the licence of a person under section 81 does not—

(a) avoid or affect an agreement, transaction or arrangement entered into or arranged by the person, regardless
of whether the agreement, transaction or arrangement was entered into or arranged before or after the
revocation or suspension; or

(b) affect a right, obligation or liability arising under the agreement, transaction or arrangement.

Section: 88 Requirement to transfer records on revocation or

suspension of licence




Remarks:
Not yet in operation

(1) If the licence of a person is revoked or suspended under section 81, the Authority may, by notice in writing,

require the person to transfer to a client a copy of the records relating to the client’s assets or affairs, held at
any time for the client as specified in the notice.

(2) A person who, without reasonable excuse, fails to comply with a requirement imposed on the person under
subsection (1) commits an offence and is liable to a fine of $200000 and to imprisonment for 2 years.


Section: 89 Permission to carry on business operations on revocation

or suspension of licence




Remarks:
Not yet in operation

(1) If the licence of a person is revoked under section 81, the Authority may, by notice in writing, permit the person,

subject to the conditions specified in the notice, to carry on business operations for closing down the business
connected with the revocation.

(2) If the licence of a person is suspended under section 81, the Authority may, by notice in writing, permit the
person, subject to the conditions specified in the notice, to carry on only essential business operations for the
protection of the interests of the policy holders concerned during the period of suspension.

(3) If the Authority has granted a permission to a person under subsection (1) or (2), the person must not, because of
its carrying on business operations in compliance with the permission, be regarded as having contravened
section 64G or 120.

(4) A permission under subsection (1) or (2), and the imposition of conditions under any of those subsections, take
effect at the time of the service of the notice or at the time specified in the notice, whichever is the later.





Cap 41 - Insurance Companies Ordinance 74

Part:
Division:

XI
4

Conduct Requirements, etc.



Remarks:
Not yet in operation

Section: 90 Conduct requirements for licensed insurance

intermediaries




Remarks:
Not yet in operation

When carrying on a regulated activity, a licensed insurance intermediary—

(a) must act honestly, fairly, in the best interests of the policy holder concerned or the potential policy holder
concerned, and with integrity;

(b) must exercise a level of care, skill and diligence that may reasonably be expected of a prudent person who
is carrying on the regulated activity;

(c) may advise only on matters for which the intermediary is competent to advise;
(d) must have regard to the particular circumstances of the policy holder or the potential policy holder that are

necessary for ensuring that the regulated activity is appropriate to the policy holder or the potential policy
holder;

(e) must make the disclosure of information to the policy holder or the potential policy holder that is necessary
for the policy holder or the potential policy holder to be sufficiently informed for the purpose of making any
material decision;

(f) must use its best endeavours to avoid a conflict between the interests of the intermediary and the interests of
the policy holder or the potential policy holder;

(g) must disclose any conflict mentioned in paragraph (f) to the policy holder or the potential policy holder;
(h) must ensure that the assets of the policy holder or the potential policy holder are promptly and properly

accounted for; and
(i) must comply with other requirements that are prescribed by rules made under sections 94 and 129.


Section: 91 Conduct requirements for licensed insurance agencies and

their responsible officers




Remarks:
Not yet in operation

(1) A licensed insurance agency—

(a) must establish and maintain proper controls and procedures for securing compliance with the conduct
requirements set out in section 90 by the agency and the licensed technical representatives (agent) appointed
by the agency;

(b) must use its best endeavours to secure observance with the controls and procedures established under
paragraph (a) by the licensed technical representatives (agent) appointed by the agency;

(c) must ensure that its responsible officer has sufficient authority within the agency for carrying out the
responsibilities set out in subsection (2); and

(d) must provide its responsible officer with sufficient resources and support for carrying out the
responsibilities set out in subsection (2).

(2) A responsible officer of a licensed insurance agency must use the officer’s best endeavours to ensure that the
agency—
(a) has established and maintains proper controls and procedures for securing compliance with the conduct

requirements set out in section 90 by the agency and the licensed technical representatives (agent) appointed
by the agency; and

(b) uses its best endeavours to secure observance with the controls and procedures established under paragraph
(a) by the licensed technical representatives (agent) appointed by the agency.



Cap 41 - Insurance Companies Ordinance 75


Section: 92 Conduct requirements for licensed insurance broker

companies and their responsible officers




Remarks:
Not yet in operation

(1) A licensed insurance broker company—

(a) must establish and maintain proper controls and procedures for securing compliance with the conduct
requirements set out in section 90 by the company and the licensed technical representatives (broker)
appointed by the company;

(b) must use its best endeavours to secure observance with the controls and procedures established under
paragraph (a) by the licensed technical representatives (broker) appointed by the company;

(c) must ensure that its responsible officer has sufficient authority within the company for carrying out the
responsibilities set out in subsection (2); and

(d) must provide its responsible officer with sufficient resources and support for carrying out the
responsibilities set out in subsection (2).

(2) A responsible officer of a licensed insurance broker company must use the officer’s best endeavours to ensure
that the company—
(a) has established and maintains proper controls and procedures for securing compliance with the conduct

requirements set out in section 90 by the company and the licensed technical representative (broker)
appointed by the company; and

(b) uses its best endeavours to secure observance with the controls and procedures established under paragraph
(a) by the licensed technical representatives (broker) appointed by the company.


Section: 93 Breach of conduct requirements


Remarks:
Not yet in operation

(1) A failure to comply with a requirement specified in section 90, 91 or 92 does not by itself render any person

liable to any judicial proceedings.
(2) To avoid doubt, this section does not affect—

(a) the extent (if any) to which a failure to comply with any other provision of this Ordinance is actionable; or
(b) any liability of a person under the common law or any other enactment, regardless of whether the

circumstances giving rise to the liability would also constitute a failure mentioned in subsection (1).

Section: 94 Rules on conduct requirements for licensed insurance

intermediaries




Remarks:
Not yet in operation

(1) The Authority may make rules requiring licensed insurance intermediaries to comply with the practices and

standards, relating to the conduct of the intermediaries in carrying on regulated activities, that are specified in
the rules.

(2) Without limiting subsection (1) and without affecting section 131, the Authority may in the rules—
(a) prohibit the use of any misleading or deceptive advertisement by a licensed insurance intermediary and

impose conditions on the use of advertisements;
(b) require a licensed insurance intermediary to provide specified information to its client on entering into a

policy or on the request of the client;
(c) require a licensed insurance intermediary to take specified steps to ascertain, in relation to its client,

specified matters relating to the identity, financial situation and financial and insurance needs of the client
that are relevant to the services to be provided by the intermediary;



Cap 41 - Insurance Companies Ordinance 76

(d) require a licensed insurance intermediary to take specified steps before providing information or advice to
its client;

(e) require a licensed insurance intermediary to take specified steps to ensure that disclosure is made to its
client of the coverage, terms and conditions, and risks in relation to the policy recommended to the client;

(f) require a licensed insurance intermediary to take specified steps to ensure that disclosure is made to its
client of any commission or advantage that the intermediary receives or is to receive in relation to the policy
recommended to the client;

(g) require a licensed insurance intermediary to take specified steps to comply with the conduct requirements
under sections 90, 91 and 92;

(h) require a licensed insurance intermediary not to effect a transaction in specified circumstances;
(i) prohibit the use by a licensed insurance intermediary of information relating to the affairs of its clients

except in specified circumstances and under specified conditions;
(j) require a licensed insurance intermediary to take specified steps in cases of conflict of interest between the

intermediary and its client;
(k) specify the circumstances and conditions under which a licensed insurance intermediary may receive any

property or services from another licensed insurance intermediary in consideration of directing business to
that other licensed insurance intermediary; and

(l) provide for any other matter in relation to the practices and standards relating to conduct in carrying on
regulated activities by a licensed insurance intermediary.


Section: 95 Codes of conduct for licensed insurance intermediaries


Remarks:
Not yet in operation

(1) The Authority may publish, in the Gazette and in any other manner it considers appropriate, codes of conduct for

giving guidance relating to the practices and standards with which licensed insurance intermediaries are
ordinarily expected to comply in carrying on regulated activities.

(2) Subsection (1) applies without limiting the powers of the Authority to make rules under section 94.
(3) A code of conduct may refer to obligations to observe—

(a) any other codes or requirements issued or imposed otherwise than by the Authority;
(b) continuing obligations, including an obligation to provide or undergo continuous training; and
(c) practices and standards concerning any of the matters described in section 94(2).

(4) The Authority may from time to time amend the whole or any part of any code of conduct published.
(5) A failure on the part of a licensed insurance intermediary to comply with a code of conduct does not by itself

render the intermediary liable to any judicial or other proceedings.
(6) However, the failure may be taken into account in considering, for a provision of this Ordinance, whether the

intermediary is a fit and proper person to remain licensed.
(7) In any proceedings under this Ordinance before a court—

(a) a code of conduct is admissible in evidence; and
(b) if a provision in the code appears to the court to be relevant to a question arising in the proceedings, the

court must, in determining the question, take into account any compliance or non-compliance of the
provision.

(8) A code of conduct published under this section—
(a) may be of general or special application and may be made so as to apply only in specified circumstances;

and
(b) may make different provisions for different circumstances and provide for different cases or classes of

cases.
(9) A code of conduct published under this section is not subsidiary legislation.

Part: XII Insurance Appeals Tribunal


Remarks:
Not yet in operation



Cap 41 - Insurance Companies Ordinance 77


Section: 96 Interpretation


Remarks:
Not yet in operation

In this Part—
affected person (當事人)—

(a) for a specified decision set out in Part 1 of Schedule 9—means—
(i) a person who is aggrieved by the decision; or
(ii) a person in respect of whom the decision is made; or

(b) for a specified decision set out in Part 2 of Schedule 9—means a person in respect of whom the decision is
made;

parties (各方), in relation to a review, means—
(a) the Authority; and
(b) the person making the application for the review;

review (覆核) means a review of a specified decision by the Tribunal under section 101;
specified decision (指明決定) means a decision specified in column 2 of Part 1 or 2 of Schedule 9 that is made

under, or referred to in, the provision of this Ordinance specified in column 3 of that Schedule opposite that
decision.


Section: 97 Establishment of Tribunal


Remarks:
Not yet in operation

(1) A tribunal is established with the name of “Insurance Appeals Tribunal” in English and “保險事務上訴審

裁處” in Chinese.
(2) The Tribunal has jurisdiction to, in accordance with this Part and Schedule 10—

(a) review specified decisions; and
(b) hear and determine a question or issue arising out of or in connection with a review.

(3) If the Chief Executive considers it appropriate to do so, the Chief Executive may establish additional tribunals
for any reviews.

(4) The provisions of this Ordinance apply, with necessary modifications, to the additional tribunals as they apply to
the Tribunal.


Section: 98 Composition of Tribunal


Remarks:
Not yet in operation

(1) Except as otherwise provided in Schedule 10, the Tribunal—

(a) consists of a chairperson and 2 other members; and
(b) is to be presided over by the chairperson who is to sit with the 2 other members.

(2) A member of the Tribunal (including the chairperson) may be paid, as a fee for his or her service, the amount
that the Financial Secretary considers appropriate.

(3) The amount payable under this section is a charge on the general revenue.

Section: 99 Schedule 10 has effect in relation to Tribunal


Remarks:
Not yet in operation



Cap 41 - Insurance Companies Ordinance 78


Schedule 10 has effect—

(a) in relation to the appointment of members of the Tribunal;
(b) in relation to the proceedings and sittings of the Tribunal; and
(c) in relation to the procedural and other matters concerning the Tribunal.


Section: 100 Applications for review of specified decisions


Remarks:
Not yet in operation

(1) An affected person may, by notice in writing to the Tribunal, apply to the Tribunal for a review of a specified

decision within the period ending 21 days after the notice informing the person of the decision has been served.
(2) An application for review—

(a) must be in writing; and
(b) must state the grounds for the application.

(3) The Tribunal must, as soon as practicable after receiving an application for review, send a copy of the
application to the Authority.

(4) On an application by an affected person, the Tribunal may by order extend the time within which the application
for review may be made under subsection (1).

(5) The Tribunal may only grant an extension—
(a) if it is satisfied that there is a good cause for granting the extension; and
(b) after the affected person and the Authority have been given a reasonable opportunity to be heard.

(6) On making the order, the time within which the application for review may be made is extended accordingly.

Section: 101 Determination of review by Tribunal


Remarks:
Not yet in operation

(1) The Tribunal may determine a review of a specified decision by—

(a) confirming, varying or setting aside the decision; or
(b) remitting the matter to the Authority with directions it considers appropriate.

(2) If a specified decision is set aside, the Tribunal may substitute for the decision another decision it considers
appropriate.

(3) If the Tribunal varies, or substitutes another decision for, a specified decision, the decision as varied or the other
decision substituting for the specified decision—
(a) must be a decision that the Authority had power to make in respect of the review in question;
(b) may be more or less onerous than the specified decision; and
(c) may be made under the same provision as that under which the specified decision has been made or any

other provision of this Ordinance.
(4) In reviewing a specified decision, the Tribunal must give the parties to the review a reasonable opportunity to be

heard.
(5) Subject to section 104(3), the standard of proof required to determine any question or issue before the Tribunal

is to be the standard of proof applicable to civil proceedings in a court of law.

Section: 102 Powers of Tribunal


Remarks:
Not yet in operation

(1) Subject to Schedule 10, the Tribunal may, for the purpose of a review, on its own initiative or on the application

of a party to the review—
(a) receive and consider any material by way of oral evidence, written statements or documents, whether or not



Cap 41 - Insurance Companies Ordinance 79

the material would be admissible in a court of law;
(b) determine the manner in which any material mentioned in paragraph (a) is received;
(c) by notice in writing signed by the chairperson of the Tribunal, require a person—

(i) to attend before it at any sitting and to give evidence; and
(ii) to produce any article, record or document in the person’s possession or control relating to the

subject matter of the review;
(d) administer oaths;
(e) examine or cause to be examined on oath or otherwise a person attending before it and require the person to

answer truthfully any question which the Tribunal considers appropriate for the purpose of the review;
(f) order a witness to provide evidence for the purpose of the review by affidavit;
(g) order a person not to publish or otherwise disclose any material the Tribunal receives;
(h) prohibit the publication or disclosure of any material the Tribunal receives at any sitting, or any part of a

sitting, that is held in private;
(i) stay any of the proceedings in the review on any grounds and on any terms and conditions that it considers

appropriate having regard to the interests of justice;
(j) determine the procedure to be followed in the review; and
(k) exercise other powers or make other orders that may be necessary for or ancillary to the conduct of the

review or the carrying out of its functions.
(2) The Tribunal may, with the consent of the parties to a review, determine the review on the basis of written

submissions only.
(3) A person commits an offence if the person, without reasonable excuse—

(a) fails to comply with an order, notice, prohibition or requirement of the Tribunal made, given or imposed
under subsection (1);

(b) disrupts any sitting of the Tribunal or otherwise misbehaves during any sitting of the Tribunal;
(c) having been required by the Tribunal under subsection (1) to attend before the Tribunal, leaves the place

where the person’s attendance is so required without the permission of the Tribunal;
(d) hinders or deters any person from attending before the Tribunal, giving evidence or producing any article,

record or document, for the purpose of a review;
(e) threatens, insults or causes any loss to be suffered by any person who has attended before the Tribunal, on

account of that attendance; or
(f) threatens, insults or causes any loss to be suffered by the chairperson, or any other member, of the Tribunal

at any time on account of the performance of the chairperson’s or member’s functions.
(4) A person who commits an offence under subsection (3) is liable—

(a) on conviction on indictment to a fine of $1000000 and to imprisonment for 2 years; or
(b) on summary conviction to a fine at level 6 and to imprisonment for 6 months.

(5) A person is not excused from complying with an order, notice, prohibition or requirement of the Tribunal made,
given or imposed under subsection (1) only on the ground that to do so might tend to incriminate the person.



Section: 103 Use of incriminating evidence given for the purpose of

review




Remarks:
Not yet in operation

(1) This section applies to any evidence, answer or information given or provided by a person in accordance with a

requirement or order of the Tribunal under section 102(1)(c), (e), (f) or (k).
(2) Despite anything in this Ordinance and subject to subsection (3), neither the evidence, answer or information

given or provided by the person nor the requirement or order of the Tribunal is admissible in evidence against
the person in criminal proceedings in a court of law.

(3) Subsection (2) does not apply to criminal proceedings in which the person is charged with an offence under
section 102(3)(a), or under Part V of the Crimes Ordinance (Cap 200), or with perjury, in respect of the
evidence, answer or information.





Cap 41 - Insurance Companies Ordinance 80

Section: 104 Contempt dealt with by Tribunal


Remarks:
Not yet in operation

(1) The Tribunal has the same powers as the Court of First Instance to punish for contempt.
(2) Without limiting subsection (1), the Tribunal has the same powers as the Court of First Instance to punish for

contempt, as if it were contempt of court, a person who, without reasonable excuse, engages in a conduct falling
within section 102(3)(a), (b), (c), (d), (e) or (f).

(3) The Tribunal must, in exercising its powers to punish for contempt, adopt the same standard of proof as the
Court of First Instance in the exercise of the same powers to punish for contempt.

(4) Despite anything in this Ordinance—
(a) no power may be exercised under this section to determine whether to punish a person for contempt in

respect of any conduct if—
(i) criminal proceedings have previously been instituted against the person under section 102(3) in respect

of the same conduct; and
(ii) those criminal proceedings remain pending or because of the previous institution of those criminal

proceedings, no criminal proceedings may again be lawfully instituted against the person under that
section in respect of the same conduct; and

(b) no criminal proceedings may be instituted against a person under section 102(3) in respect of any conduct if

(i) any power has previously been exercised under this section to determine whether to punish the person

for contempt in respect of the same conduct; and
(ii) proceedings arising from the exercise of that power remain pending or because of the previous exercise

of that power, no power may again be lawfully exercised under this section to determine whether to
punish the person for contempt in respect of the same conduct.


Section: 105 Privileged information


Remarks:
Not yet in operation

This Part and Schedule 10 do not require an authorized institution, acting as the banker or financial advisor of the
applicant for a review, to disclose information in relation to the affairs of any of its customers other than that
applicant.

Section: 106 Costs


Remarks:
Not yet in operation

(1) The Tribunal may, in relation to a review, by order award to—

(a) a person whose attendance, whether or not as a witness, has been necessary or required for the purpose of
the review; or

(b) a party to the review,
a sum that it considers appropriate in respect of the costs reasonably incurred by the person or party in relation to

the review and the application for the review.
(2) The costs awarded must be paid by, and are recoverable as a civil debt from—

(a) if they are awarded to a person under subsection (1)(a)—a party to the review that the Tribunal considers
appropriate; or

(b) if they are awarded to a party to the review under subsection (1)(b)—the other party to the review.
(3) Subject to a rule made under section 117, Order 62 of the Rules of the High Court (Cap 4 sub. leg. A) applies to

the award of costs, and to the taxation of any costs awarded, by the Tribunal under subsection (1).




Cap 41 - Insurance Companies Ordinance 81

Section: 107 Notification of Tribunal determinations


Remarks:
Not yet in operation

(1) The Tribunal must, as soon as practicable after completing a review, notify the parties to the review—

(a) its determination and the reasons for the determination; and
(b) any order made under section 106 in relation to the review and the reasons for the order.

(2) If a sitting of the Tribunal, or a part of it, is held in private, the Tribunal may by order prohibit the publication or
disclosure of—
(a) its determination, or the reasons for the determination, referred to in subsection (1)(a), or a part of the

determination or reasons; or
(b) an order, or the reasons for an order, referred to in subsection (1)(b), or a part of the order or any part of the

reasons for the order.
(3) A person commits an offence if the person, without reasonable excuse, fails to comply with an order of the

Tribunal made under subsection (2).
(4) A person who commits an offence under subsection (3) is liable—

(a) on conviction on indictment to a fine of $1000000 and to imprisonment for 2 years; or
(b) on summary conviction to a fine at level 6 and to imprisonment for 6 months.


Section: 108 Form and proof of orders of Tribunal


Remarks:
Not yet in operation

(1) An order made by the Tribunal must be recorded in writing and be signed by the chairperson of the Tribunal.
(2) A document purporting to be an order of the Tribunal so signed is, in the absence of evidence to the contrary,

presumed to be an order of the Tribunal duly made and signed—
(a) without proof of its making;
(b) without proof of signature; or
(c) without proof that the person signing the order was in fact the chairperson of the Tribunal.


Section: 109 Orders of Tribunal may be registered in Court of First

Instance




Remarks:
Not yet in operation

(1) After receiving a notice in writing given by the Tribunal in the manner prescribed by rules made under section

117, the Court of First Instance may register an order of the Tribunal in that Court.
(2) An order so registered is to be regarded for all purposes as an order of the Court of First Instance made within its

jurisdiction.

Section: 110 Application for stay of execution of specified decisions


Remarks:
Not yet in operation

(1) Subject to subsections (2) and (4), an application for review does not by itself operate as a stay of execution of

the specified decision to which the application relates.
(2) A person who applies for a review or an application referred to in section 100(4) may, at any time before the

review or the application is determined by the Tribunal, apply to the Tribunal for a stay of execution of the
specified decision to which the application relates.

(3) The Tribunal must, as soon as practicable after receiving an application under subsection (2), conduct a hearing



Cap 41 - Insurance Companies Ordinance 82

to determine the application.
(4) The Tribunal may by order grant the stay subject to a condition as to costs, payment of money into the Tribunal

or other matters that the Tribunal considers appropriate.

Section: 111 Applications for stay of execution of determinations of

Tribunal




Remarks:
Not yet in operation

(1) A party to a review may, at any time after the determination of the review by the Tribunal, apply to the Tribunal

for a stay of execution of the determination.
(2) On an application under subsection (1), the Tribunal may by order grant the stay subject to a condition as to

costs, payment of money into the Tribunal or other matters that the Tribunal considers appropriate.

Section: 112 Appeal to Court of Appeal


Remarks:
Not yet in operation

(1) Subject to subsection (2), if a party to a review is dissatisfied with the determination of the review, the party may

appeal to the Court of Appeal against the determination on—
(a) a question of law;
(b) a question of fact; or
(c) a question of mixed law and fact.

(2) No appeal may be made under subsection (1) unless leave to appeal has been granted by the Court of Appeal.
(3) The leave may be granted—

(a) in respect of a particular issue arising out of the determination; and
(b) subject to a condition that the Court of Appeal considers necessary in order to secure the just, expeditious

and economical disposal of the appeal.
(4) The leave may only be granted if the Court of Appeal is satisfied that—

(a) the appeal has a reasonable prospect of success; or
(b) there is some other reason in the interests of justice why the appeal should be heard.


Section: 113 Powers of Court of Appeal


Remarks:
Not yet in operation

(1) The Court of Appeal may, in relation to an appeal against a determination of the Tribunal—

(a) allow the appeal;
(b) dismiss the appeal;
(c) vary or set aside the determination and, if the determination is set aside, substitute for the determination

another determination that it considers appropriate; or
(d) remit the matter to the Tribunal or to the Authority with any directions it considers appropriate.

(2) If the Court of Appeal varies, or substitutes another determination for, a determination under subsection (1)(c),
the determination as varied or the other determination substituting for the determination—
(a) must be a determination that the Tribunal had power to make in respect of the review in question;
(b) may be more or less onerous than the determination varied or substituted; and
(c) may be made under the same provision as that under which the determination varied or substituted has been

made or any other provision of this Ordinance.
(3) In an appeal under this section, the Court of Appeal may make any order for payment of costs it considers

appropriate.




Cap 41 - Insurance Companies Ordinance 83

Section: 114 No stay of execution of Tribunal’s determination on appeal


Remarks:
Not yet in operation

(1) Without prejudice to section 111, the lodging of an appeal under section 112 does not by itself operate as a stay

of execution of the determination of the Tribunal appealed against.
(2) If an appeal is lodged under section 112, the Court of Appeal may, on an application made to it by a party to the

review, order a stay of execution of the determination of the Tribunal appealed against.
(3) The Court of Appeal may, when making an order under subsection (2), impose a condition that the Court of

Appeal considers appropriate, including conditions as to costs and payment of money into the Tribunal.

Section: 115 No other right of appeal


Remarks:
Not yet in operation

Subject to section 50 of the High Court Ordinance (Cap 4) and section 112, the determination of the Tribunal is final
and is not subject to appeal.

Section: 116 Time when specified decisions take effect


Remarks:
Not yet in operation

(1) Except as otherwise provided in this Ordinance, a specified decision takes effect—

(a) if, before the expiry of the period of 21 days specified in section 100, an affected person notifies the
Authority in writing that the person will not apply for a review of the decision—at the time the person so
notifies the Authority;

(b) if, within the period of 21 days specified in section 100, the person does not apply for a review of the
decision—at the time the period expires; or

(c) if the person applies for a review of the decision within the period of 21 days specified in section 100—
(i) if the decision is confirmed by the Tribunal—at the time the decision is confirmed;
(ii) if the decision is varied, or substituted by another decision, by the Tribunal—at the time the decision is

varied or substituted, subject to the terms of the variation or substitution; or
(iii) if the application is withdrawn—at the time the application is withdrawn.

(2) Despite subsection (1), the Authority may, if it considers it appropriate in the public interest to do so in relation
to a specified decision, specify in the notice in respect of the decision any time, other than that at which the
decision is apart from this section to take effect, as the time at which the decision is to take effect.


Section: 117 Power of Chief Justice to make rules


Remarks:
Not yet in operation

The Chief Justice may make rules—

(a) providing for the award of costs under section 106;
(b) providing for matters relating to the registration of an order of the Tribunal in the Court of First Instance

under section 109;
(c) regulating the procedure for the hearing of appeals under section 112;
(d) requiring the payment of the fees specified in the rules for a matter relating to applications for review;
(e) providing for matters of procedure or other matters relating to applications for review, which are not

provided for in this Part or in Schedule 10;



Cap 41 - Insurance Companies Ordinance 84

(f) providing for the issue or service of any document (however described) for the purposes of this Part or
Schedule 10; and

(g) prescribing a matter which this Part provides is, or may be, prescribed by rules made by the Chief Justice.

Part: XIII Miscellaneous L.N. 198 of 2015 07/12/2015


(Added 12 of 2015 s. 88)

Part:
Division:

XIII
1

Immunity L.N. 198 of 2015 07/12/2015





Section: 118 Immunity L.N. 198 of 2015 07/12/2015


(1) A person is not civilly liable for an act done or omitted to be done by the person in good faith in performing or
purportedly performing a function under this Ordinance.

(2) Subsection (1) does not apply to—
(a) an auditor appointed under section 5E or 72; and
(b) an auditor or actuary appointed under section 15.


Part:
Division:

XIII
2

Other Offences and Supplementary Provisions on Offences



Remarks:
Not yet in operation

Part:
Division:
Subdivision:

XIII
2
1

Other Offences



Remarks:
Not yet in operation

Section: 119 Misleading statements, etc. and false information


Remarks:
Not yet in operation

(1) A person commits an offence if the person induces or attempts to induce another person to enter into, or offer to

enter into, a contract of insurance—
(a) by a statement, promise or representation which the person knows to be false, misleading or deceptive;
(b) by a dishonest concealment of material facts; or
(c) by the reckless making (dishonest or otherwise) of a statement, promise or representation which is false,

misleading or deceptive.
(2) A person commits an offence if the person—

(a) causes or permits to be included in a document specified in subsection (3) a statement which the person
knows to be false in a material particular; or

(b) recklessly causes or permits to be included in a document specified in subsection (3) a statement which is
false in a material particular.

(3) The document specified for subsection (2) is—
(a) a notice or statement or certificate served or furnished or sent out under a provision of this Ordinance; or
(b) a document or copy of a document deposited or submitted under a provision of this Ordinance.

(4) A person who commits an offence under subsection (1) or (2) is liable—
(a) on conviction on indictment to a fine of $1000000 and to imprisonment for 2 years; or



Cap 41 - Insurance Companies Ordinance 85

(b) on summary conviction to a fine at level 6 and to imprisonment for 6 months.

Section: 120 Restriction on use of certain terms and representations

associated with insurance business




Remarks:
Not yet in operation

(1) Except as provided for in section 123, a person must not, without the written consent of the Authority given

generally or in a particular case or class of cases, use any of the following in the description or name under
which the person is carrying on business in or from Hong Kong—
(a) the word “insurance” or “assurance”, or a derivative of the word in English, or a translation of the

word or derivative in any language;
(b) the Chinese expression “保險”, or the character “保” followed immediately by the character “險”;
(c) the letters “i”, “n”, “s”, “u”, “r”, “a”, “n”, “c” and “e” in that order;
(d) the letters “a”, “s”, “s”, “u”, “r”, “a”, “n”, “c” and “e” in that order.

(2) Subsection (1) does not apply to any of the following—
(a) an authorized insurer;
(b) an approved association of underwriters;
(c) a licensed insurance intermediary;
(d) a person to whom section 78(3) applies;
(e) an association that comprises mainly licensed insurance intermediaries or their employees, and that is

formed for the protection or promotion of their mutual interests;
(f) an association of insurers or their employees that is formed for the protection or promotion of their mutual

interests.
(3) A person who is not an authorized insurer must not, without the written consent of the Authority given generally

or in a particular case or class of cases, make a representation in a bill head, letter paper, notice or advertisement,
or in any other manner, that the person—
(a) is an authorized insurer; or
(b) is carrying on insurance business in or from Hong Kong.

(4) A person who contravenes subsection (1) or (3) commits an offence and is liable to a fine of $200000 and, in the
case of an individual, also to imprisonment for 2 years.

(5) In subsection (1)—
description (描述) includes a statement that may be construed to mean that a person (however described) is a

subsidiary, the holding company, or a subsidiary of the holding company, of an authorized insurer, a licensed
insurance agency or a licensed insurance broker company.


Section: 121 Person not to disclose information obtained in the course

of inspection, investigation or disciplinary action




Remarks:
Not yet in operation

(1) This section applies to—

(a) a person on whom a requirement under section 41B, 41C, 41D or 41E has been imposed by an inspector or
investigator;

(b) a person on whom a requirement under section 64ZZF, 64ZZG, 64ZZH or 64ZZI has been imposed by an
inspector or investigator; or

(c) a person who has been given a notice under section 41Q(2) or 82(2).
(2) The person specified in subsection (1)(a) or (b) must not disclose any information obtained in the course of the

requirement being imposed, or in the course of a compliance or purported compliance with the requirement, to
any other person unless—
(a) the Authority consents to the disclosure; or



Cap 41 - Insurance Companies Ordinance 86

(b) any of the conditions specified in subsection (4) is satisfied.
(3) The person specified in subsection (1)(c) must not disclose any information obtained from the notice, or from

any communication with the Authority in relation to the subject matter of the notice, unless—
(a) the Authority consents to the disclosure; or
(b) any of the conditions specified in subsection (4) is satisfied.

(4) The conditions specified for subsections (2)(b) and (3)(b) are—
(a) the information has already been made available to the public because of being disclosed in any

circumstances in which, or for any purpose for which, disclosure is not precluded by section 53A;
(b) the disclosure is for seeking advice from, or giving advice by, a counsel or a solicitor, or any other

professional advisor acting or proposing to act in a professional capacity, in connection with a matter
arising under this Ordinance;

(c) the disclosure is in connection with any judicial or other proceedings to which the person is a party; and
(d) the disclosure is in compliance with an order of a court, or in compliance with a law or a requirement made

under a law.
(5) The Authority may impose any conditions that it considers appropriate on a consent given by it for the purposes

of subsection (2)(a) or (3)(a).
(6) A person who contravenes subsection (2) or (3) commits an offence and is liable to a fine at level 4.
(7) In this section—
inspector (查察員)—

(a) in relation to subsection (1)(a), has the meaning given by section 41A;
(b) in relation to subsection (1)(b), has the meaning given by section 64F;

investigator (調查員)—
(a) in relation to subsection (1)(a), has the meaning given by section 41A;
(b) in relation to subsection (1)(b), has the meaning given by section 64F.


Section: 122 Notification of cessation of place of business in Hong Kong


Remarks:
Not yet in operation

(1) If an authorized insurer incorporated or formed outside Hong Kong ceases to have a place of business in Hong

Kong, the insurer must give not less than 3 months’ prior written notice, or a shorter prior notice that the
Authority allows, to the Authority of the cessation.

(2) An authorized insurer which fails to comply with subsection (1) commits an offence and is liable—
(a) to a fine of $200000 and, in the case of an individual, also to imprisonment for 2 years; and
(b) in the case of a continuing offence, to a further fine of $2000 for each day during which the failure to give

the notice continues after the expiry of the period prescribed or the shorter period allowed (as the case may
be) under that subsection.


Part:
Division:
Subdivision:

XIII
2
2

Supplementary Provisions of Offences



Remarks:
Not yet in operation

Section: 123 Exceptions to sections 64G and 120


Remarks:
Not yet in operation

(1) Section 64G or 120 does not—

(a) prohibit a counsel from—



Cap 41 - Insurance Companies Ordinance 87

(i) giving regulated advice wholly incidental to his or her practice as a counsel; or
(ii) holding himself or herself out as so giving regulated advice;

(b) prohibit a solicitor from—
(i) giving regulated advice wholly incidental to his or her practice as a solicitor in a Hong Kong firm or

foreign firm within the meaning of the Legal Practitioners Ordinance (Cap 159); or
(ii) holding himself or herself out as so giving regulated advice;

(c) prohibit a certified public accountant from—
(i) giving regulated advice wholly incidental to his or her practice as a certified public accountant in a

practice unit within the meaning of the Professional Accountants Ordinance (Cap 50); or
(ii) holding himself or herself out as so giving regulated advice;

(d) prohibit a trust company registered under Part VIII of the Trustee Ordinance (Cap 29) from—
(i) giving regulated advice wholly incidental to the discharge of its duty as such a trust company; or
(ii) holding itself out as so giving regulated advice;

(e) prohibit an actuary from—
(i) giving regulated advice wholly incidental to his or her practice as an actuary; or
(ii) holding himself or herself out as so giving regulated advice;

(f) prohibit a person from giving regulated advice through—
(i) a newspaper, magazine, book or other publication that is made generally available to the public

(excluding one that is made available on subscription only);
(ii) a television broadcast or radio broadcast for reception by the public, whether on subscription or

otherwise; or
(iii) electronic communication to the public;

(g) prohibit a person from—
(i) giving regulated advice in the course of—

(A) carrying on the business of loss assessment on behalf of an authorized insurer, policy holder or
insurance claimant; or

(B) carrying on the business of settling claims on behalf of an authorized insurer; or
(ii) holding himself or herself out as so giving regulated advice; or

(h) prohibit a company from—
(i) giving regulated advice to a specified company; or
(ii) holding itself out as so giving regulated advice.

(2) Section 64G or 120 does not prohibit a person acting on behalf of an authorized insurer or a licensed insurance
intermediary from carrying on a regulated activity if carrying on that activity only involves the discharge of
clerical or administrative duties for the insurer or the intermediary.

(3) Section 64G or 120 does not prohibit an employee of any of the following authorized insurers from carrying on a
regulated activity in the course of employment—
(a) an authorized insurer which is authorized to carry on in or from Hong Kong reinsurance business only;
(b) an authorized insurer which is a captive insurer.

(4) Without limiting subsection (3), section 64G or 120 does not prohibit an employee of an authorized insurer from
carrying on a regulated activity if carrying on that activity only involves the discharge of any of the following
duties for the insurer in the course of employment—
(a) to make an assessment of the risks to be accepted by the insurer under a contract of insurance;
(b) to determine the terms and conditions of a contract of insurance to be issued by the insurer;
(c) to process any claim lodged under a contract of insurance issued by the insurer.

(5) In subsection (1)—
actuary (精算師) means a person who holds a qualification specified in the Schedule to the Insurance Companies

(Actuaries’ Qualifications) Regulations (Cap 41 sub. leg. A) or specified in a guideline published under section
133;

specified company (指明公司), in relation to a company, means—
(a) a wholly owned subsidiary of the company;
(b) another company which holds all the issued shares of the company; or
(c) a wholly owned subsidiary of that other company mentioned in paragraph (b).

(6) For the purposes of this section, a company is a wholly owned subsidiary of another company if it has only the



Cap 41 - Insurance Companies Ordinance 88

following as members—
(a) that other company;
(b) a nominee of that other company;
(c) a wholly owned subsidiary of that other company;
(d) a nominee of such a wholly owned subsidiary.

(7) The Financial Secretary may, by notice published in the Gazette, amend subsection (1).

Section: 124 Offences by bodies corporate and partners


Remarks:
Not yet in operation

(1) If an offence under this Ordinance is committed by a body corporate, and it is proved that the offence—

(a) was committed with the consent or connivance of an individual specified in subsection (3); or
(b) was attributable to any neglect or omission on the part of an individual specified in subsection (3),
the individual also commits the offence.

(2) If a person who commits an offence under this Ordinance is a partner of a partnership, and it is proved that the
offence—
(a) was committed with the consent or connivance of any other partner of the partnership; or
(b) was attributable to any neglect or omission on the part of any other partner of the partnership,
the other partner of the partnership also commits the offence.

(3) The individual specified for subsection (1) is—
(a) a controller (within the meaning of the relevant provisions) of the body corporate;
(b) a director, key person in control functions or responsible officer of the body corporate; or
(c) if the body corporate is managed by its members, one of the members of the body corporate.

(4) An offence under this Ordinance committed by a body corporate is presumed to have been committed with the
consent or connivance of, or to be attributable to neglect or omission on the part of, a controller (within the
meaning of the relevant provisions), director, key person in control functions, responsible officer or member of
the body corporate if it is proved that, at the time the offence was committed, the controller, director, key person
in control functions, responsible officer or member was concerned in the management of the body corporate.

(5) An offence under this Ordinance committed by a partner of a partnership is presumed to have been committed
with the consent or connivance of, or to be attributable to neglect or omission on the part of, any other partner in
the partnership if it is proved that, at the time the offence was committed, the other partner was concerned in the
management of the partnership.

(6) The presumption under subsection (4) or (5) is rebutted by a person charged with an offence under this
Ordinance by virtue of that subsection if—
(a) there is sufficient evidence to raise an issue that the offence was committed without the person’s consent

or connivance and was not attributable to the person’s neglect or omission; and
(b) the contrary is not proved by the prosecution beyond reasonable doubt.


Section: 125 Time limit for proceedings for offences


Remarks:
Not yet in operation

Criminal proceedings for an offence under this Ordinance must be commenced within whichever of the following
period expires first—

(a) the period of 3 years beginning on the date immediately after the date on which the offence is discovered
by, or comes to the notice of, the Authority;

(b) the period of 6 years beginning on the date immediately after the offence is committed.

Section: 126 Prosecution of offences by Authority


Remarks:



Cap 41 - Insurance Companies Ordinance 89

Not yet in operation

(1) The Authority may prosecute an offence under this Ordinance, or an offence of conspiracy to commit such an

offence, in its own name.
(2) However, if the Authority so prosecutes, the offence must be tried before a magistrate as an offence that is

triable summarily.
(3) This section does not derogate from the powers of the Secretary for Justice in respect of the prosecution of

criminal offences.

Part:
Division:

XIII
3

Services



Remarks:
Not yet in operation

Section: 127 Service of notices, etc.


Remarks:
Not yet in operation

A written notice or direction or other document (however described) permitted or required to be issued or served
(however described) to or on a person, other than the Authority or the Monetary Authority, for this Ordinance is to be
regarded as duly issued or served if—

(a) for an individual, it is—
(i) delivered to the individual by hand;
(ii) left at, or sent by post to, the last known business or residential address of the individual;
(iii) sent by fax transmission to the last known fax number of the individual; or
(iv) sent by electronic mail transmission to the last known electronic mail address of the individual;

(b) for a company, it is—
(i) delivered to any officer of the company by hand;
(ii) left at, or sent by post to, the registered office of the company within the meaning of the Companies

Ordinance (Cap 622);
(iii) sent by fax transmission to the last known fax number of the company; or
(iv) sent by electronic mail transmission to the last known electronic mail address of the company;

(c) for a non-Hong Kong company, it is—
(i) delivered by hand to, or sent by post to, the person resident in Hong Kong who is authorized to accept

service of process and notices on its behalf for the purposes of Part 16 of the Companies Ordinance
(Cap 622) at the person’s address delivered to the Registrar of Companies under that Ordinance;

(ii) sent by fax transmission to the last known fax number of the person; or
(iii) sent by electronic mail transmission to the last known electronic mail address of the person;

(d) for a partnership, it is—
(i) delivered to any partner of the partnership by hand;
(ii) left at, or sent by post to, the last known principal place of business of the partnership;
(iii) sent by fax transmission to the last known fax number of the partnership; or
(iv) sent by electronic mail transmission to the last known electronic mail address of the partnership;

(e) for Lloyd’s or a member of Lloyd’s, it is—
(i) delivered to the authorized representative of Lloyd’s appointed under section 50B by hand;
(ii) left at, or sent by post to, the address in Hong Kong of the authorized representative;
(iii) sent by fax transmission to the last known fax number of the authorized representative; or
(iv) sent by electronic mail transmission to the last known electronic mail address of the authorized

representative.




Cap 41 - Insurance Companies Ordinance 90

Part:
Division:

XIII
4

Regulations and Rules, etc. L.N. 198 of 2015 07/12/2015





Section: 128 Chief Executive in Council may make regulations


Remarks:
Not yet in operation

(1) The Chief Executive in Council may, after consulting the Authority, by regulations—

(a) provide for the payment to the Authority of, and prescribe, fees—
(i) for an application to the Authority under this Ordinance;
(ii) for anything done by the Authority or a committee established under section 4C or 4D in performing a

function under this Ordinance; and
(iii) for any other matter with regard to which provision is made by or under this Ordinance;

(b) prescribe fees (however described) that are required or permitted to be prescribed by regulations made
under this section;

(c) provide for the payment of charges or penalties for late payment of any fees; and
(d) prescribe any matter that, by this Ordinance, is required or permitted to be prescribed by regulations made

under this section.
(2) Fees prescribed by regulations made under this section is not to be limited by reference to the amount of the

administrative or other costs incurred, or likely to be incurred, by the Authority or a committee established under
section 4C or 4D in providing the services or performing the functions to which the fees relate.

(3) Regulations made under this section—
(a) may provide that the amount of any fee is to be fixed by reference to a scale set out in the regulations;
(b) may provide for the payment of different fees by or in relation to persons or cases of different classes or

descriptions;
(c) may provide that the payment of any fee is waived, either generally or in a particular case; and
(d) may provide for the payment of fees annually or at other intervals.

(4) The Authority may recover the amount of any fees payable under the regulations made under this section as a
civil debt due to it.

(5) Subsections (6) and (7) apply if—
(a) rules are made by the Authority under a provision in this Ordinance; and
(b) the provision does not specify that the rules may provide that a contravention of any specified provision of

the rules constitutes an offence.
(6) The Chief Executive in Council may make regulations to prescribe offences for contravention of the rules,

punishable by a fine, imprisonment or both.
(7) The maximum penalty that may be prescribed under subsection (6)—

(a) for an offence of which a person is convicted on indictment—a fine of $500000 and imprisonment for 2
years; and

(b) for an offence of which a person is summarily convicted—a fine at level 6 and imprisonment for 6 months.

Section: 129 Authority may make rules


Remarks:
Not yet in operation

(1) The Authority may by rules—

(a) provide for the determination, in such different ways as may be necessary for different provisions, of the
value of the assets and the amount of the liabilities of an authorized insurer for the purposes of this
Ordinance;

(b) prescribe, or provide for the determination of, any amount required or permitted to be prescribed or
determined for the purposes of this Ordinance;



Cap 41 - Insurance Companies Ordinance 91

(c) provide for the holding in any fund or funds maintained by an authorized insurer in respect of its long term
business of part of any excess of the value of the assets of the insurer over the amount of its liabilities;

(d) prescribe standards to be complied with by an actuary appointed under section 15(1);
(e) provide for applications for licence, the issue of licences and incidental matters;
(f) require licensed insurance intermediaries to carry on business in relation to a specified class of products or

line of business, and in the specified manner and circumstances;
(g) prescribe the qualifications and experience of, and training for, licensed insurance intermediaries, and

provide for the obligations to be imposed in relation to the requirements, the examinations required for
those purposes, and the circumstances under which exemptions may be granted;

(h) provide for the maintenance of registers and the correction of errors in the registers maintained by the
Authority;

(i) provide for the admissibility in evidence in judicial or other proceedings of specified records, and extracts
from specified records, kept by the Authority;

(j) require documents and information required to be lodged, filed, submitted or retained for a provision of this
Ordinance to be so lodged, filed, submitted or retained in the specified manner, whether by electronic or
other means;

(k) require documents and information lodged, filed, submitted or retained for a provision of this Ordinance to
be completed, signed, executed or authenticated in the specified form and manner;

(l) specify whether, when and the circumstances in which records compiled in a specified form or manner, or
documents or information completed, signed, executed or authenticated in a specified form or manner, are
acceptable or required for a provision of this Ordinance;

(m) require authorized insurers and licensed insurance intermediaries to make returns at specified times to the
Authority, and provide for the particulars, or the nature of particulars, to be contained in those returns, the
person by whom, and the manner and circumstances in which they are to be made, and other matters related
to those returns;

(n) require a form or a return required to be submitted under a provision of this Ordinance to be received by the
Authority by or within the specified time; and

(o) prescribe any matter that, by this Ordinance, is required or permitted to be prescribed by rules made under
this section.

(2) In addition to the power to make rules under subsection (1), the Authority may, after consulting the Financial
Secretary, make other rules that are necessary for the performance of any of its functions.

(3) Except as otherwise provided in this Ordinance, rules made by the Authority—
(a) may be of general or special application or may be made so as to apply only in specified circumstances;
(b) may make different provisions for different circumstances and provide for different cases or classes of

cases;
(c) may authorize a matter or thing to be determined, applied or regulated by a specified person;
(d) may provide for the exercise of a discretion in specified cases; and
(e) may, for the better and more effectual carrying into effect of any provision of this Ordinance or the rules,

include any savings, transitional, incidental, supplemental, evidential and consequential provisions (whether
involving the provisions of a principal legislation or a subsidiary legislation).


Section: 130 Relaxation of rules under section 129(1)(a)


Remarks:
Not yet in operation

(1) The Authority may, relax wholly or partly any of the rules made under section 129(1)(a) in their application to

an authorized insurer for the period, and subject to the conditions, that the Authority considers appropriate, at the
request in writing of that insurer, on being satisfied that—
(a) it would not be contrary to the interests of policy holders or potential policy holders to do so; and
(b) it would not adversely affect the Authority’s ability to carry out its supervisory functions under this

Ordinance.
(2) During any period when the relaxation is in force, the reference in section 8(4) to rules made for this purpose is,

as respects that insurer, to be construed as a reference to those rules as so relaxed.



Cap 41 - Insurance Companies Ordinance 92

(3) If under subsection (1) the Authority relaxes any of the rules made under section 129(1)(a) for an authorized
insurer, the Authority must, as soon as practicable, publish a notice in the Gazette stating—
(a) the name of the insurer; and
(b) the fact that the rule has been relaxed under subsection (1) for that insurer.


Section: 131 Rules may limit effect of Ordinance


Remarks:
Not yet in operation

(1) Except as otherwise provided in this Ordinance, rules made by the Authority may, subject to the terms and

conditions specified in them, provide for the matters referred to in subsections (2) and (3).
(2) The rules may provide that the provisions of this Ordinance specified in the rules have no effect, or only have

effect to a specified extent, in relation to a specified person or to members in a specified class of persons—
(a) who is or are, or may be, required to be licensed because of the person or the members doing anything that

is incidental to another business; or
(b) who is or are, or may be, required to be licensed because of the involvement of the person or the members

in a specified class of insurance business.
(3) If the provisions of this Ordinance specified in the rules require an application, statement, notice or other

document (however described) to be lodged or filed with or submitted to the Authority, the rules may provide
that those provisions are to be regarded as having been complied with if the application, statement, notice or
other document is lodged or filed with or submitted to any other specified person.


Section: 132 Authority must publish draft rules


Remarks:
Not yet in operation

(1) If the Authority proposes to make rules under a provision of this Ordinance, it must publish a draft of the

proposed rules, in the manner it considers appropriate, for inviting representations on the proposed rules by the
public.

(2) If the Authority makes rules after a draft has been published under subsection (1) in relation to the rules, it must
comply with subsections (3) and (4).

(3) The Authority must publish, in the manner that it considers appropriate, an account setting out in general terms

(a) the representations made on the draft; and
(b) the response of the Authority to the representations.

(4) If the Authority considers the rules made are significantly different from the draft, the Authority must publish, in
the manner it considers appropriate, details of the difference.

(5) Subsections (1) and (2) do not apply if the Authority considers, in the circumstances of the case, that—
(a) it is inappropriate or unnecessary that those subsections should apply; or
(b) the delay involved in complying with those subsections would not be—

(i) in the interests of policy holders or potential policy holders; or
(ii) in the public interest.


Section: 133 Codes or guidelines on functions of Authority, etc


Remarks:
Not yet in operation

(1) The Authority may publish, in the Gazette and in any other manner it considers appropriate, codes or guidelines

that it considers appropriate for giving guidance—
(a) in relation to a matter relating to any of the functions of the Authority under this Ordinance; or
(b) in relation to the operation of a provision of this Ordinance.



Cap 41 - Insurance Companies Ordinance 93

(2) To avoid doubt, the power of the Authority to publish codes or guidelines under this section is in addition to and
not in derogation of any other power of the Authority to publish codes or guidelines under any provision of this
or any other Ordinance.

(3) The Authority may from time to time amend the whole or any part of a code or guideline published.
(4) A failure on the part of a person to comply with the provisions set out in a code or guideline does not by itself

render the person liable to any judicial or other proceedings.
(5) However, in any proceedings under this Ordinance before a court—

(a) the code or guideline is admissible in evidence; and
(b) if a provision in the code or guideline appears to the court to be relevant to a question arising in the

proceedings, the court must, in determining the question, take into account any compliance or non-
compliance of the provision.

(6) A code or guideline published under this section—
(a) may be of general or special application or may be made so as to apply only in specified circumstances; and
(b) may make different provisions for different circumstances and provide for different cases or classes of

cases.
(7) A code or guideline published under this section is not subsidiary legislation.

Section: 134 Orders and regulations for levies


Remarks:
Not yet in operation

(1) If a contract of insurance relates to—

(a) a prescribed class of insurance business; or
(b) a prescribed type of contract of insurance,

a prescribed levy is payable to the Authority for the contract by its policy holder.
(2) For the purposes of subsection (1), the Chief Executive in Council, by order published in the Gazette—

(a) may specify any rate or amount as a prescribed levy under subsection (1);
(b) may specify any class of insurance business as a prescribed class of insurance business under subsection

(1)(a);
(c) may specify any type of contract of insurance as a prescribed type of contract of insurance under subsection

(1)(b);
(d) may specify the rate or amount of the prescribed levy payable for a contract of insurance—

(i) as a percentage of the premium payable for the contract of insurance;
(ii) as a fixed amount;
(iii) as a nil rate, nil amount or nil percentage; or
(iv) as to be calculated in any other manner specified in the order; and

(e) may specify different rates for different classes of insurance business or different types of contract of
insurance.

(3) The Authority may recover the amount of a levy payable under this section as a civil debt due to it.
(4) The Chief Executive in Council may make regulations for—

(a) the payment of levies;
(b) the payment of charges or penalties for late payment of levies; and
(c) the keeping, examination and audit of the accounts of authorized insurers and licensed insurance

intermediaries relating to the collection and payment of levies.

Section: 135 Reduction of levies


Remarks:
Not yet in operation

(1) If during a financial year of the Authority the requirements set out in subsection (2) are met, the Authority must

consult the Financial Secretary with a view to recommending to the Chief Executive in Council that the rate or
amount of a levy be reduced.



Cap 41 - Insurance Companies Ordinance 94

(2) The requirements are—
(a) that the reserves of the Authority, after deducting depreciations and all provisions, are more than twice its

estimated operating expenses for the financial year; and
(b) that the Authority has no outstanding debt.

(3) The Authority may, after consulting the Financial Secretary under subsection (1), recommend to the Chief
Executive in Council that the rate or amount of a levy be reduced.


Section: 136 Procedural requirements for publishing notices under

sections 13AE(14) and 123(7)




Remarks:
Not yet in operation

(1) If the Financial Secretary proposes to publish a notice under section 13AE(14) or 123(7), the Financial Secretary

must publish a draft of the proposed notice, in the manner the Financial Secretary considers appropriate, for
inviting representations on the proposed notice by the public.

(2) If the Financial Secretary publishes a notice after a draft has been published under subsection (1), the Financial
Secretary must comply with subsections (3) and (4).

(3) The Financial Secretary must publish, in the manner that it considers appropriate, an account setting out in
general terms—
(a) the representations made on the draft; and
(b) the response of the Financial Secretary to the representations.

(4) If the Financial Secretary considers the notice published is significantly different from the draft, the Financial
Secretary must publish, in the manner the Financial Secretary considers appropriate, details of the difference.

(5) Subsections (1) and (2) do not apply if the Financial Secretary considers, in the circumstances of the case, that—
(a) it is inappropriate or unnecessary that those subsections should apply; or
(b) the delay involved in complying with those subsections would not be—

(i) in the interests of policy holders or potential policy holders; or
(ii) in the public interest.

(6) The Financial Secretary may direct the Authority to publish on behalf of the Financial Secretary—
(a) the draft of the proposed notice under subsection (1);
(b) the account under subsection (3); or
(c) the details of the difference under subsection (4).


Section: 137 Authority may specify forms


Remarks:
Not yet in operation

(1) Subject to subsection (2), the Authority may specify—

(a) the form of any document required under this Ordinance to be in the specified form; and
(b) the form of such other documents required for the purposes of this Ordinance as the Authority thinks fit.

(2) The Authority’s power under subsection (1) is subject to any express requirement under this Ordinance for a
form, whether specified or otherwise, to comply with that requirement, but that requirement is not to restrict the
exercise of that power in respect of that form to the extent that, in the opinion of the Authority, its exercise of
that power in respect of that form does not contravene that requirement.

(3) To avoid doubt, it is declared that the Authority’s power under subsection (1) may be exercised in such a way
as to—
(a) include in the specified form of a document referred to in that subsection a statutory declaration—

(i) to be made by the person completing the form; and
(ii) as to whether the particulars contained in the form are true and correct to the best of that person’s

knowledge and belief;
(b) specify 2 or more forms of any document referred to in that subsection, whether as alternatives, or to



Cap 41 - Insurance Companies Ordinance 95

provide for particular circumstances or particular cases, as the Authority thinks fit.
(4) A form specified under this section must be—

(a) completed in accordance with the directions and instructions that are specified in the form;
(b) accompanied by the documents that are specified in the form; and
(c) if the completed form is required to be provided to the Authority or any other person, so provided in the

manner, if any, specified in the form.
(5) In this section—
document (文件) includes any application, notice, return and accounts.

Section: 138 Amendment of Schedules L.N. 198 of 2015 07/12/2015


Remarks:
* Provisions marked with the asterisk (*) have not yet come into operation.


*[(1) The Chief Executive in Council may, by notice published in the Gazette, amend Schedule 9.]
*[(2) The Authority may, with the approval of the Financial Secretary, by notice published in the Gazette, amend any

of the following—
(a) Schedule 1;
(b) Schedule 2;
(c) Schedule 3;
(d) Schedule 4;
(e) Schedule 5;
(f) Schedule 6;
(g) Schedule 7;
(h) Schedule 8]

(3) The Legislative Council may by resolution amend Schedule 1D.

Part: XIV Savings and Transitional Arrangements


Remarks:
Not yet in operation

Section: 139 Savings and transitional arrangements for Insurance

Companies (Amendment) Ordinance 2015




Remarks:
Not yet in operation

Schedule 11 provides for the savings, transitional and supplemental arrangements that relate to the Insurance
Companies (Amendment) Ordinance 2015 (12 of 2015).

Schedule: 1 CLASSES OF INSURANCE BUSINESS 30/06/1997


[sections 3, 51& 61]


PART I


PRELIMINARY

1. The classes of insurance business specified in Parts 2 and 3 of this Schedule shall constitute the classes of
insurance business that are relevant for the purposes of this Ordinance.

2. An authorization under section 8, in describing the classes or parts of classes to which it relates, may do so by
reference to the appropriate groups specified in Part 4 of this Schedule.



Cap 41 - Insurance Companies Ordinance 96


3. If an insurer authorized to carry on long term business effects and carries out a contract of insurance which
combines long term business and additional business of the nature specified in Part 3 of this Schedule in relation to
class 1 or 2, the additional business shall as respects that contract be regarded as long term business and not as general
business.

3A. There shall not be combined in the one contract long term business of the nature specified in class G or H in Part
2 of this Schedule and business of any other nature specified in this Schedule unless that contract is a contract (or
belongs to a class or description of contract) specified by the Insurance Authority by notice in the Gazette under
paragraph 3B as being a contract to which this paragraph shall not apply. (Added 59 of 1993 s. 17)

3AA. (a) Paragraph 3A shall not apply to any annuity contract on a human life under which a single premium is

paid in return for an annuity which becomes payable periodically immediately upon the date of the
execution of the contract.

(b) Subparagraph (a) shall be deemed to have come into operation on the commencement of the Insurance
Companies (Amendment) Ordinance 1993 (59 of 1993). (Added 75 of 1995 s. 11)


3B. The Insurance Authority may specify, by notice in the Gazette, any contract (including any lass or description of
contract) to which paragraph 3A shall not apply. (Added 59 of 1993 s. 17)

3C. Subject to paragraph 3D, where a contract effected and carried out on or after the date of commencement of the
Insurance Companies (Amendment) Ordinance 1993 (59 of 1993) can be both a contract of the nature specified in
class I in Part 2 of this Schedule and a contract of the nature specified in another class (or classes) of long term
business, the contract shall, for the purposes of this Ordinance, be treated as being only a contract of the nature
specified in class I, and the provisions of this Ordinance shall have effect accordingly. (Added 59 of 1993 s. 17)

3D. Immediately upon the expiration of section 19 of the Insurance Companies (Amendment) Ordinance 1993 (59 of
1993), paragraph 3C shall operate in relation to a contract effected and carried out before the date referred to in that
paragraph as it operates in relation to a contract effected and carried out on or after that date. (Added 59 of 1993 s.
17)

3E. In Parts 1 and 2 of this Schedule, "retirement scheme" (退休計劃) means any scheme, whether in writing or
oral, express or implied, under which benefits, in the form of pensions, allowances, gratuities or other payments, are
payable to or in respect of a member of the scheme on the cessation of his-

(a) employment (including any self-employment) by termination of service (including termination for
disability), death or retirement;

(b) service under a contract for services; or
(c) membership of an association or partnership,

but does not include any scheme (including any class or description of scheme) specified by the Insurance Authority
by notice in the Gazette under paragraph 3F or 3FB as not being a retirement scheme for the purposes of this
Ordinance. (Added 59 of 1993 s. 17. Amended L.N. 398 of 1994)

3F. Subject to paragraph 3FB, the Insurance Authority may, except in relation to a scheme which is an occupational
retirement scheme within the meaning of the Occupational Retirement Schemes Ordinance (Cap 426), specify, by
notice in the Gazette, any scheme (including any class or description of scheme) as not being a retirement scheme for
the purposes of this Ordinance. (Added 59 of 1993 s. 17. Amended L.N. 398 of 1994)

3FA. In long term business of the nature specified in class G or H in Part 2 of this Schedule, "party" (一方), in relation
to a contract referred to in that class of long term business-

(a) means-
(i) a company authorized, or deemed to be authorized, under section 8 to carry on that class of long

term business;
(ii) Lloyd's; or
(iii) an association of underwriters approved under section 6; and

(b) includes, on and after the day on which section 3 of the Occupational Retirement Schemes Ordinance



Cap 41 - Insurance Companies Ordinance 97

(Cap 426) comes into operation, any other person except a person who-
(i) holds on trust the contributions (or premiums) which become his property under that contract;

and
(ii) is not a person referred to in subparagraph (a). (Added L.N. 398 of 1994)


3FB. Where-

(a) an occupational retirement scheme within the meaning of the Occupational Retirement Schemes
Ordinance (Cap 426) is neither-
(i) governed by a trust; nor
(ii) the subject of or regulated by an insurance arrangement within the meaning of that Ordinance;

and
(b) the administrator, within the meaning of that Ordinance, of such scheme is not a person referred to in

paragraph 3FA(a),
then the Insurance Authority may specify, by notice in the Gazette, such scheme (including any class or description of
such scheme) as not being a retirement scheme for the purposes of this Ordinance. (Added L.N. 398 of 1994)

3G. It is hereby declared that a notice under paragraph 3B, 3F or 3FB is subsidiary legislation. (Added 59 of 1993 s.
17. Amended L.N. 398 of 1994)

4. Subject to paragraph 5, an insurer authorized to carry on a class of general business may, in effecting and
carrying out a contract of insurance against a risk ("the principal risk") within that class, include in the contract
provision whereby the insurer incidentally assumes liability against a risk ("the ancillary risk") that is not within that
class.

5. Paragraph 4 shall apply only if-

(a) the assumption of liability against the ancillary risk is included in the same contract as that providing
for the assumption of liability against the principal risk; and

(b) the ancillary risk is related to the principal risk and to the object, state, condition or person that is
insured against the principal risk; and

(c) the ancillary risk is not of the kind to which class 14 or 15 relates and is otherwise such that insurance
against it constitutes general business.


6. In classes 6 and 12 "vessels" (船隻) includes hovercraft.

7. The Insurance Companies Ordinance (Amendment of First Schedule) Regulation 1994 (L.N. 398 of 1994) shall
be deemed to have come into operation on the commencement of the Insurance Companies (Amendment) Ordinance
1993 (59 of 1993). (Added 75 of 1995 s. 11)


PART 2


CLASSES OF LONG TERM BUSINESS


Class Description Nature of Business
A Life and annuity Effecting and carrying out contracts of insurance on human life or

contracts to pay annuities on human life, but excluding (in each case)
contracts within class C below.

B Marriage and birth Effecting and carrying out contracts of insurance to provide a sum on
marriage or on the birth of a child, being contracts expressed to be in
effect for a period of more than 1 year.

C Linked long term Effecting and carrying out contracts of insurance on human life or
contracts to pay annuities on human life where the benefits are wholly
or partly to be determined by reference to the value of, or the income
from, property of any description (whether or not specified in the
contracts) or by reference to fluctuations in, or in an index of, the value
of property of any description (whether or not so specified).



Cap 41 - Insurance Companies Ordinance 98

D Permanent health Effecting and carrying out contracts of insurance providing specified
benefits against risks of persons becoming incapacitated in
consequence of sustaining injury as a result of an accident or of an
accident of a specified class or of sickness or infirmity, being contracts
that-
(a) are expressed to be in effect for a period of not less than 5 years,

or until the normal retirement age for the persons concerned, or
without limit of time, and

(b) either are not expressed to be terminable by the insurer, or are
expressed to be so terminable only in special circumstances
mentioned in the contract.


E Tontines Effecting and carrying out tontines.
F Capital redemption Effecting and carrying out capital redemption contracts.
G Retirement scheme

management
category I

Effecting and carrying out contracts-
(a) under which contributions (or premiums) are paid to, and become

the property of, one party to the contract in return for the
provision by that party of assets to be applied, whether directly or
indirectly, towards the provision of benefits under a retirement
scheme; and

(b) which provide for a guaranteed capital or return. (Added 59 of
1993 s. 17)

H Retirement scheme
management category II

Effecting and carrying out contracts-
(a) under which contributions (or premiums) are paid to, and become

the property of, one party to the contract in return for the
provision by that party of assets to be applied, whether directly or
indirectly, towards the provision of benefits under a retirement
scheme; and

(b) which do not provide for a guaranteed capital or return. (Added
59 of 1993 s. 17)

I Retirement scheme
management
category III

Effecting and carrying out contracts of insurance to provide, whether
directly or indirectly, benefits under retirement schemes but excluding-
(a) contracts within class G or H above deemed under section 3(2) to

be contracts of insurance;
(b) contracts within class 1 or 2 below. (Added 59 of 1993 s. 17.

Amended L.N. 398 of 1994)


PART 3


CLASSES OF GENERAL BUSINESS


Class Description Nature of Business
1 Accident Effecting and carrying out contracts of insurance providing fixed

pecuniary benefits or benefits in the nature of indemnity (or a
combination of both) against risks of the persons insured-
(a) sustaining injury as the result of an accident or of an accident of a

specified class, or
(b) dying as the result of an accident or of an accident of a specified

class, or
(c) becoming incapacitated in consequence of disease or of disease of a

specified class,
inclusive of contracts relating to industrial injury and occupational disease
but exclusive of contracts falling within class 2 below or class D above.

2 Sickness Effecting and carrying out contracts of insurance providing fixed
pecuniary benefits or benefits in the nature of indemnity (or a



Cap 41 - Insurance Companies Ordinance 99

combination of the two) against risks of loss to the persons insured
attributable to sickness or infirmity, but exclusive of contracts falling
within class D above.

3 Land vehicles Effecting and carrying out contracts of insurance against loss of or
damage to vehicles used on land, including motor vehicles but excluding
railway rolling stock.

4 Railway rolling stock Effecting and carrying out contracts of insurance against loss of or
damage to railway rolling stock.

5 Aircraft Effecting and carrying out contracts of insurance upon aircraft or upon the
machinery, tackle, furniture or equipment of aircraft.

6 Ships Effecting and carrying out contracts of insurance upon vessels used on the
sea or on inland water, or upon the machinery, tackle, furniture or
equipment of such vessels.

7 Goods in transit Effecting and carrying out contracts of insurance against loss of or
damage to merchandise, baggage and all other goods in transit,
irrespective of the form of transport.

8 Fire and natural forces Effecting and carrying out contracts of insurance against loss of or
damage to property (other than property to which classes 3 to 7 above
relate) due to fire, explosion, storm, natural forces other than storm,
nuclear energy or land subsidence.

9 Damage to property Effecting and carrying out contracts of insurance against loss of or
damage to property other than property to which classes 3 to 7 above
relate) due to hail or frost or to any event (such as theft) other than those
mentioned in class 8 above.

10 Motor vehicle liability Effecting and carrying out contracts of insurance against damage arising
out of or in connection with the use of motor vehicles on land, including
third-party risks and carrier's liability.

11 Aircraft liability Effecting and carrying out contracts of insurance against damage arising
out of or in connection with the use of aircraft, including third-party risks
and carrier's liability.

12 Liability for ships Effecting and carrying out contracts of insurance against damage arising
out of or in connection with the use of vessels on the sea or on inland
water, including third-party risks and carrier's liability.

13 General liability Effecting and carrying out contracts of insurance against risks of the
persons insured incurring liabilities to third parties, the risks in question
not being risks to which class 10, 11 or 12 above relates.

14 Credit Effecting and carrying out contracts of insurance against risks of loss to
the persons insured arising from the insolvency of debtors of theirs or
from the failure (otherwise than through insolvency) of debtors of theirs
to pay their debts when due.

15 Suretyship Effecting and carrying out-
(a) contracts of insurance against risks of loss to the person insured

arising from their having to perform contracts of guarantee entered
into by them;

(b) contracts for fidelity bonds, performance bonds, administration
bonds, bail bonds or customs bonds or similar contracts of
guarantee.

16 Miscellaneous financial
loss

Effecting and carrying out contracts of insurance against any of the
following risks, namely-
(a) risks of loss to the persons insured attributable to interruptions of the

carrying on of business carried on by them or to reduction of the
scope of business so carried on;

(b) risks of loss to the persons insured attributable to their incurring
unforeseen expense;

(c) risks neither falling within paragraph (a) or



Cap 41 - Insurance Companies Ordinance 100

(b) above nor being of a kind such that the carrying on of the business
of effecting and carrying out contracts of insurance against them
constitutes the carrying on of insurance business of some other class.

17 Legal expenses Effecting and carrying out contracts of insurance against risks of loss to
the persons insured attributable to their incurring legal expenses
(including costs of litigation).


PART 4


GROUPS


Number Designation Composition

1 Accident and health Classes 1 and 2.
2 Motor Class 1 (to the extent that the relevant risks are risks of the person

insured sustaining injury, or dying, as the result of travelling as a
passenger) and classes 3, 7 and 10.

3 Marine and transport Class 1 (to the said extent) and classes 4, 6, 7 and 12
4 Aviation Class 1 (to the said extent) and classes 5, 7 and 11.
5 Fire and other damage to

property
Classes 8 and 9.

6 Liability Classes 10, 11, 12 and 13.
7 Credit and suretyship Classes 14 and 15.
8 General Classes 1 to 17 inclusive.
9 Long term Classes A to I inclusive. (Replaced 59 of 1993 s. 17)
10 Long term risks Classes A to F inclusive and class I. (Added 59 of 1993 s. 17)
11 Retirement schemes Classes G and H. (Added 59 of 1993 s. 17)


PART 5


TRANSITIONAL PROVISIONS


Where immediately before the commencement of this Ordinance an insurer was authorized under an Ordinance

repealed or amended by this Ordinance to carry on any of the former classes shown in column 1 of the table below, the
appropriate corresponding business as respects that insurer shall, for the purposes of this Ordinance be corresponding
business shown in column 2 of the table.


TABLE


Former Classes Corresponding Business
Fire insurance business Group 5
Life insurance business Group 9
Marine insurance business Group 3
Motor vehicle insurance business Group 2


Schedule: 1A Regulated Activity, Material Decision and Regulated

Advice




Remarks:
Not yet in operation


[sections. 3A, 64G, 64ZA & 78]


Part 1




Cap 41 - Insurance Companies Ordinance 101

Regulated Activity


1. Any of the following is an act specified for the purposes of section 3A(a)—
(a) the act of negotiating or arranging a contract of insurance;
(b) the act of inviting or inducing, or attempting to invite or induce, a person to enter into a contract of

insurance;
(c) the act of inviting or inducing, or attempting to invite or induce, a person to make a material decision;
(d) the act of giving regulated advice.


Part 2


Material Decision


1. Any of the following is a matter specified for the purposes of section 3A(b)—
(a) the making of an application or proposal for a contract of insurance;
(b) the issuance, continuance or renewal of a contract of insurance;
(c) the cancellation, termination, surrender or assignment of a contract of insurance;
(d) the exercise of a right under a contract of insurance;
(e) the change in any term or condition of a contract of insurance;
(f) the making or settlement of an insurance claim.


Part 3


Regulated Advice


1. Any of the following is a matter specified for the purposes of section 3A(c)—
(a) the making of an application or proposal for a contract of insurance;
(b) the issuance, continuance or renewal of a contract of insurance;
(c) the cancellation, termination, surrender or assignment of a contract of insurance;
(d) the exercise of a right under a contract of insurance;
(e) the change in any term or condition of a contract of insurance;
(f) the making or settlement of an insurance claim.


Schedule: 1B Constitution and Proceedings of Authority, etc. L.N. 198 of 2015 07/12/2015


[section 4AA]

1. Deputy chairperson and vacancies in office of chairperson or deputy chairperson


(1) The Chief Executive may appoint an executive director or non-executive director of the Authority (other
than the chairperson or the Chief Executive Officer of the Authority) to be the deputy chairperson of the
Authority.

(2) If the office of chairperson of the Authority is vacant or the chairperson of the Authority is unable to act as
chairperson due to illness, absence from Hong Kong or any other reason, the deputy chairperson appointed
under subsection (1) must act as chairperson in his or her place.

(3) Whether or not a deputy chairperson has been appointed under subsection (1), the chairperson of the
Authority may—
(a) designate an executive director or non-executive director of the Authority to act as chairperson of the

Authority for any period during which both the chairperson and the deputy chairperson are unable to
act as chairperson due to illness, absence from Hong Kong or any other reason; and

(b) at any time revoke the designation.
(4) Subsection (5) applies if—

(a) no deputy chairperson has been appointed under subsection (1) or the office of deputy chairperson of
the Authority is vacant; or



Cap 41 - Insurance Companies Ordinance 102

(b) the deputy chairperson appointed under subsection (1) is unable to act as chairperson due to illness,
absence from Hong Kong or any other reason, and there is no designation under subsection (3).

(5) The Financial Secretary may designate an executive director or non-executive director of the Authority to
act as chairperson of the Authority for any period during which the chairperson of the Authority is unable to
act as chairperson due to illness, absence from Hong Kong or any other reason.

(6) A designation under subsection (5) ceases to have effect when the earliest of the following events occurs—
(a) the designation is revoked by the Financial Secretary;
(b) if the designation is made in the circumstances mentioned in subsection (4)(a)—an appointment is

made under subsection (1);
(c) if the designation is made in the circumstances mentioned in subsection (4)(b)—the deputy chairperson

appointed under subsection (1) is able to act as chairperson.
(7) A deputy chairperson, executive director or non-executive director of the Authority acting as the chairperson of

the Authority under this section, is to be regarded for all purposes to be the chairperson of the Authority.
(8) Despite subsection (7)—

(a) an executive director of the Authority does not cease to be regarded as such only because that director
is acting as chairperson of the Authority; and

(b) a non-executive director of the Authority does not cease to be regarded as such only because that
director is acting as chairperson of the Authority.


2. Vacancy in office of chief executive officer


(1) The Chief Executive—
(a) may designate an executive director of the Authority to act as chief executive officer of the Authority

for a period during which the chief executive officer of the Authority is unable to act as chief executive
officer due to illness, absence from Hong Kong or any other reason; and

(b) may at any time revoke the designation.
(2) An executive director of the Authority who acts as chief executive officer of the Authority is to be regarded

for all purposes to be the chief executive officer of the Authority.


3. Functions and office of members, etc.


(1) The chairperson, deputy chairperson and chief executive officer of the Authority have the functions
assigned to them by the Authority.

(2) The Chief Executive is to determine the terms and conditions of the office of a member of the Authority.
(3) A member of the Authority may at any time resign from office by notice in writing to the Chief Executive.
(4) Unless it is otherwise provided in the terms and conditions of the appointment under subsection (2), a notice

of resignation takes effect—
(a) on the date specified in the notice; or
(b) if no date is so specified, on the date of receipt by the Chief Executive of the notice.

(5) The Authority must pay a member of the Authority the remuneration, allowances or expenses determined
by the Chief Executive.


4. Removal of members of Authority


(1) If the Chief Executive is satisfied that a member of the Authority—
(a) has become a public officer;
(b) has become bankrupt;
(c) is incapacitated by physical or mental illness;
(d) is convicted in Hong Kong of an offence that is punishable by imprisonment for 12 months or more, or

is convicted elsewhere than in Hong Kong of an offence that, if committed in Hong Kong, would be an
offence so punishable; or

(e) is otherwise unable or unfit to perform the functions of a member of the Authority,
the Chief Executive may declare the member’s office to be vacant.
(2) The Chief Executive must give notice of the declaration in the manner that the Chief Executive thinks fit.



Cap 41 - Insurance Companies Ordinance 103

(3) Subsection (4) applies if the notice of the declaration is given otherwise than by notice published in the
Gazette.

(4) The Chief Executive must, as soon as practicable after giving notice under subsection (2), give another
notice of the declaration by notice published in the Gazette.


5. Disclosure of interests by members of Authority


(1) If—
(a) a member of the Authority has, in a matter that is considered or is to be considered at a meeting of the

Authority, an interest which is of a class or description determined by the Authority under subsection
(2); and

(b) the interest appears to raise a conflict with the proper performance of the member’s duties in relation
to the consideration of the matter,

the member must, as soon as practicable after becoming aware of the relevant facts, disclose the interest at a
meeting of the Authority.

(2) The Authority may—
(a) determine the class or description of the interest required to be disclosed;
(b) determine the details of the interest required to be disclosed and the manner in which the interest is to

be disclosed; and
(c) from time to time change any matter determined under paragraph (a) or (b).

(3) Particulars of a disclosure made under this section must be recorded by the Authority in a book kept for the
purpose and that book must be open at all reasonable hours to inspection by the public.

(4) After a member of the Authority has disclosed an interest in a matter, the member must not, unless the
Authority otherwise determines—
(a) be present during a deliberation of the Authority with respect to the matter; or
(b) take part in a decision of the Authority with respect to the matter.

(5) For making a determination by the Authority under subsection (4), a member of the Authority who has an
interest in a matter to which the disclosure relates—
(a) must not be present during the Authority’s deliberation for making the determination; and
(b) must not take part in the Authority’s making of the determination.

(6) A contravention of this section does not invalidate a decision of the Authority.


6. Meetings


(1) Meetings of the Authority—
(a) must be held as often as necessary for performing its functions; and
(b) may be convened by the chairperson, deputy chairperson, chief executive officer, or any 2 other

members, of the Authority.
(2) At a meeting of the Authority—

(a) if the chairperson of the Authority is present—he or she is to be the chairperson of the meeting;
(b) if the chairperson of the Authority is not present but the deputy chairperson of the Authority is present

—the deputy chairperson is to be the chairperson of the meeting; or
(c) if neither the chairperson nor the deputy chairperson of the Authority is present—the members of the

Authority present must choose one of their number to be the chairperson of the meeting.
(3) The quorum for a meeting of the Authority is the number that is not less than one-third of the number of the

executive directors of the Authority and not less than one-third of the number of the non-executive directors
of the Authority.

(4) Despite section 1(6) and (7) of this Schedule, for forming a quorum under subsection (3)—
(a) an executive director of the Authority who acts as chairperson of the Authority is only counted as an

executive director of the Authority; and
(b) a non-executive director of the Authority who acts as chairperson of the Authority is only counted as a

non-executive director of the Authority.
(5) A member of the Authority who participates in a meeting of the Authority by telephone, video conferencing



Cap 41 - Insurance Companies Ordinance 104

or other electronic means is to be regarded as being present at the meeting if—
(a) that member is able to hear the other members who are physically present at the meeting; and
(b) the members who are physically present at the meeting are able to hear that member.

(6) Each member of the Authority present at a meeting of the Authority has 1 vote.
(7) Every question for decision at a meeting of the Authority must be determined by a majority of the votes of

its members present.
(8) If voting is equally divided, the chairperson of the meeting has, subject to subsection (9), a casting vote.
(9) The chairperson of a meeting of the Authority must not exercise a casting vote on a question for decision at

the meeting until after the chairperson has consulted the Financial Secretary on the question.


7. Written resolution


(1) A resolution that meets the requirements set out in subsection (2) is as valid and effectual as if it had been
passed at a meeting of the Authority convened and conducted in accordance with this Ordinance.

(2) The requirements are—
(a) the resolution is in writing;
(b) the resolution is signed by all the members of the Authority who are, when the resolution is made

available for signature, present in Hong Kong and capable of signing the resolution; and
(c) the resolution is signed by not less than one-third of the executive directors of the Authority and not

less than one-third of the non-executive directors of the Authority.
(3) For subsection (2), a resolution may be—

(a) in the form of one document; or
(b) in the form of more than one document, each of which is in the same form.

(4) If the resolution is in the form of more than one document, the requirements under subsection (2)(b) and (c)
are to be regarded as having been satisfied if the documents together bear the signatures of the numbers of
members of the Authority as specified in that subsection.

(5) For this section—
(a) a document is regarded as having been signed by a member of the Authority if a telex, cable, fax or

electronic transmission of the document bears the signature of the member; and
(b) a resolution is regarded as made on the date on which the resolution is signed by the last person

signing as a member of the Authority.


8. Seal and regulation of administration, etc.


(1) The Authority must have a seal, the affixing of which must be authenticated by—
(a) the signature of the chairperson or the deputy chairperson of the Authority; or
(b) the signature of another member of the Authority authorized by it to act in that behalf.

(2) A document purporting to be a document duly executed under the seal of the Authority is to be received in
evidence without further proof and is, unless the contrary is proved, to be regarded as a document so
executed on being received in evidence.

(3) The Authority must organize and regulate its administration, procedure and business in a manner that it
considers will, subject to the requirements of this Ordinance, best ensure the performance of its functions.

(Schedule 1B added 12 of 2015 s. 90)

Schedule: 1C Constitution and Proceedings of Industry Advisory

Committees
L.N. 198 of 2015 07/12/2015



Remarks:
* Provisions marked with the asterisk (*) have not yet come into operation.


[section 4C]

1. An industry advisory committee consists of the following members—

(a) the chairperson of the Authority;



Cap 41 - Insurance Companies Ordinance 105

(b) the chief executive officer of the Authority;
(c) not more than 2 other executive directors of the Authority who must be appointed by the Authority;

and
(d) not less than 8 but not more than 12 other members who must be appointed by the Financial Secretary

after consultation with the Authority.


2. In appointing a person as a member under section 1(d) of this Schedule, the Financial Secretary must have been
satisfied that in the opinion of the Authority, the person has knowledge of, or experience in, the insurance
industry, and the conduct of regulated activities and consumer affairs.


*[3. An industry advisory committee must meet at least once every 3 months to advise the Authority.]

*[4. A meeting of an industry advisory committee may be convened by—

(a) the chairperson of the Authority;
(b) the chief executive officer of the Authority; or
(c) any 3 other members of the industry advisory committee.]


*[5. At a meeting of an industry advisory committee—
(a) if the chairperson of the Authority is present—he or she is to be the chairperson of the meeting; or
(b) if the chairperson of the Authority is not present—the members of the industry advisory committee

present must choose one of their number to be the chairperson of the meeting.]


*[6. The quorum for a meeting of an industry advisory committee is a majority of its members.]

7. If a member of an industry advisory committee appointed under section 1(c) of this Schedule ceases to be an

executive director of the Authority, he or she ceases to be a member of the industry advisory committee.

8. A member of an industry advisory committee appointed under section 1(c) or (d) of this Schedule may at any

time resign from office by notice in writing to the following persons—
(a) if the member has been appointed under section 1(c)—the Authority;
(b) if the member has been appointed under section 1(d)—the Financial Secretary.


9. The Financial Secretary may by notice in writing remove from office a member of an industry advisory
committee appointed under section 1(d) of this Schedule.

(Schedule 1C added 12 of 2015 s. 90)

Schedule: 1D Non-delegable Functions of Authority L.N. 198 of 2015 07/12/2015


Remarks:
* Provisions marked with the asterisk (*) have not yet come into operation.


[sections 4F & 138]

1. The following functions of the Authority are specified for the purposes of section 4F(2)—

*[(a) to make subsidiary legislation under this Ordinance or any other Ordinance;]
(b) to borrow money under section 4B(2)(c);
(c) to publish or otherwise make available, under section 4B(2)(f), materials on a matter relating to the

performance by the Authority of any of its functions;
(d) to establish a wholly-owned subsidiary under section 4B(2)(g);
(e) to establish a committee under section 4D(1);
(f) to refer a matter to a committee under section 4D(2);
(g) to appoint a person to be a member or chairperson of a committee under section 4D(3);
(h) to withdraw a reference from a committee, or to revoke an appointment of a member or chairperson of

a committee under section 4D(5);



Cap 41 - Insurance Companies Ordinance 106

*[(i) to delegate the powers under sections 64ZZF(6) and 64ZZH(1) to the Monetary Authority under
section 4G(1), or to revoke the delegation under section 4G(3);]

(j) to submit to the Financial Secretary corporate plans under section 5B(3);
(k) to prepare financial statements and reports under section 5D(2) and (3);
(l) to appoint auditors under section 5E(1);

*[(m) to authorize a company to carry on a class or classes of insurance business under section 8;]
*[(n) to appoint a person, other than an employee of the Authority, to investigate any matter referred to in

sections 41D(1) and 64ZZH(1);]
*[(o) to publish codes or guidelines under section 41R, 83, 95 or 133;]
*[(p) to specify the time at which a specified decision as defined by section 96 is to take effect;]
*[(q) to consult the Financial Secretary with a view to recommending to the Chief Executive in Council that

a levy be reduced, and to recommend to the Chief Executive in Council that the levy be reduced, under
section 135.]

(Schedule 1D added 12 of 2015 s. 90)

Schedule: 2 DIRECTORS AND CONTROLLERS L.N. 163 of 2013 03/03/2014


[sections 7, 14 & 61]


1. Application of Second Schedule


This Schedule sets out the information to be furnished or delivered by an insurer to the Insurance Authority
under this Ordinance in respect of every director and controller of the insurer in the following cases-

(a) under section 7, in support of an application for authorization under this Ordinance;
(b) under section 14, forthwith upon any change in any such director or controller;
(c) (Repealed 35 of 1996 s. 32)
(d) under section 61(1), within 3 months of the commencement of this Ordinance (or such additional

period as may be allowed thereunder) in the case of an insurer authorized to carry on insurance
business under an Ordinance repealed or amended by this Ordinance.


2. Particulars of director or controller except on cessation


Any particulars furnished or notice served by an insurer on the Insurance Authority pursuant to section 7, 14(2)
or 61 of this Ordinance in respect of a director or controller (not being a director or controller to whom paragraph 3 of
this Schedule applies) shall contain- (Amended 35 of 1996 s. 32)

(a) in the case of an individual, the particulars in Form A in this Schedule;
(b) in the case of a body corporate, the particulars in Form B in this Schedule; and
(c) in the case of a partnership-

(i) the particulars in Form A in this Schedule in respect of each partner who is an individual;
(ii) the particulars in Form B in this Schedule in respect of each partner which is a body corporate.


3. Particulars of person ceasing to be director or controller


A notice served by an insurer on the Insurance Authority pursuant to section 14(2) of this Ordinance in respect
of a person who-

(a) becomes a controller within the meaning of section 13A(1) or 13B(1) of this Ordinance of the insurer;
or

(b) ceases to be a director or controller of the insurer,
shall contain the relevant particulars in Form C in this Schedule. (Replaced 44 of 1990 s. 9)



FORM A [paragraph 2, 2nd Schedule]


PARTICULARS REQUIRED IN RESPECT OF INDIVIDUALS
WHO ARE DIRECTORS OR CONTROLLERS



Cap 41 - Insurance Companies Ordinance 107


Name of Insurer *....................................................................................................
The following are particulars of-

**(a)+.............................................................................................................................
**(b)++........................................................, of which +..................................................

............................................................................................... is a partner who became
** Director/Controller/Chief Executive/Managing Director on ....................................
.......................................................................................... (date).


1. Family name Other names

................................................. .....................................................
Any other name(s) by which he has been known or is known
..............................................................................................................................


2. Private address.

3. Date of birth.

Place of birth (including town or city).

4. Nationality, including a statement as to whether it was acquired by birth or naturalization.

5. Qualifications and experience, including those relating to insurance and allied matters.

6. Present occupation or employment and occupations and employment during the last 10 years, including the

name of the employer, the nature of the business, the position held and relevant dates.

7. Has he at any time been convicted of any criminal offence (other than an offence committed when he was of or

under the age of 16 years unless the same was committed within the last 10 years) by any court, including a
military tribunal, in Hong Kong or elsewhere? If so, give full particulars of the court by which he was convicted,
the offence and the penalty imposed and the date of the conviction.


8. Has he in the last 10 years, in Hong Kong or elsewhere, been censured, disciplined or publicly criticized by any

professional body to which he belongs or belonged or been dismissed from any office or employment or refused
entry to any profession or occupation? If so, give full particulars.


9. Has he at any time been adjudicated bankrupt by a court in Hong Kong or elsewhere? If so, give full particulars.

10. Has he at any time in the last 10 years failed to satisfy any debt adjudged due and payable by him as a judgment-

debtor under an order of a court in Hong Kong or elsewhere? If so, give full particulars.

11. Has he, in connection with the formation or management of any body corporate or insurer, been adjudged by a

court in Hong Kong or elsewhere civilly liable for any fraud, misfeasance or other misconduct by him towards
such a body or insurer or towards any members thereof? If so, give full particulars.


12. Has any body corporate or insurer with which he was associated as director or controller in the last 10 years, in

Hong Kong or elsewhere, been compulsorily wound up or made any compromise or arrangement with its
creditors or ceased trading in circumstances where its creditors did not receive or have not yet received full
settlement of their claims, either whilst he was associated with it or within one year after he ceased to be
associated with it? If so, give full particulars.
(Note: In relation to a body corporate which is not an insurer, "controller" (控權人) is to be construed as a

reference to a person who would, if he were a company, be a holding company of that body in
accordance with section 13 of the Companies Ordinance (Cap 622)).

13. Of what bodies corporate or insurers-
(a) is he now a director or controller?
(b) has he been a director or controller at any time during the last 10 years?



Cap 41 - Insurance Companies Ordinance 108


14. Has he any other occupation other than that disclosed at items 6 and 13 above. If so, give full details.

15. Give particulars of the circumstances (by reference to section 9(1) of the Insurance Companies Ordinance) by

virtue of which he became controller.

16. In carrying out his duties will he be acting on the directions or instructions of any other person? If so, give full

particulars.


I certify that the above information is complete and correct to the best of my knowledge and belief.

Date ................................................


Signed..............................................................
(Individual named in paragraph 1 above.)


I certify that +....................................................................................................... has supplied the above

information and that in respect of *..................................................
.................................................................................................................................... he is-

(a) ** Director/Controller/Chief Executive/Managing Director
(b) A partner in ++....................................................................................... which

is ** Director/Controller/Chief Executive/Managing Director

Date ....................................


Signed ...........................................................
(Director/Secretary ** of the Insurer.)


* Insert name of Insurer.
+ Insert name of individual to whom particulars relate.
++ Insert name of partnership.
** Delete as necessary.

(Amended 28 of 2012 ss. 912 & 920)



FORM B [paragraph 2, 2nd Schedule]


PARTICULARS REQUIRED IN RESPECT OF BODIES CORPORATE WHICH ARE

DIRECTORS OR CONTROLLERS


Name of Insurer *....................................................................................................

The following are particulars of a body corporate which became director, controller, chief executive or managing

director, or which is a partner in a partnership which became director, controller, chief executive or managing director
of the above-named Insurer on .........................(date).

1. Name and address of body corporate and address of registered office (where different).

2 Principal business activity.

3. Address of principal place of business established in Hong Kong.

4. Date and place of incorporation.

5. Registered number (if any).



Cap 41 - Insurance Companies Ordinance 109


6. Full name and residential address of every director and every controller.

(Note: In relation to a body corporate which is not an insurer, "controller" (控權人) is to be construed as a
reference to a person who would, if he were a company, be a holding company of that body in
accordance with section 13 of the Companies Ordinance (Cap 622)).


7. Name and address of main bank.

8. Accounts for the last 3 completed financial years and particulars of any reports, resolutions and other circulars

issued to shareholders during the last 4 years.

9. Name, place of incorporation and principal business activities of all subsidiary companies and of any holding

company or ultimate holding company.
(Note: Shares held by a nominee are to be treated as shares held by his principal).


+10. In the case of a non-Hong Kong company as defined by section 2(1) of the Companies Ordinance (Cap 622)-

(a) name(s) and address(es) of its authorized representative(s) as defined by section 774 of the Companies
Ordinance (Cap 622);

(b) date of the certificate of registration issued under Part XI of the Companies Ordinance (Cap 32) as in force
from time to time before the commencement date of section 2 of Schedule 9 to the Companies Ordinance
(Cap 622) or under section 777 of the Companies Ordinance (Cap 622).


+11. Particulars of circumstances (by reference to section 9(1) of the Insurance Companies Ordinance) by virtue of

which the above-named body corporate became a controller.

12. Has any body corporate or insurer with which the above-named body corporate was associated as director or

controller in the last 10 years, in Hong Kong or elsewhere, been compulsorily wound up or made any
compromise or arrangement with its creditors or ceased trading in circumstances where its creditors did not
receive or have not yet received full settlement of their claims, either whilst the above-named body corporate
was associated with it or within one year after the above-named body corporate ceased to be associated with it?
If so, give full particulars.
(Note: In relation to a body corporate which is not an insurer, "controller" (控權人) is to be construed as a

reference to a person who would, if he were a company, be a holding company of that body in
accordance with section 13 of the Companies Ordinance (Cap 622)).


I certify that the above information is complete and correct to the best of my knowledge and belief and I certify

that this notice is served with the knowledge and consent of the above-named body corporate.


Date .................................................


Signed ................................................................
(Director/Secretary + of body corporate.)


+ I certify that the above particulars have been supplied by the above-named body corporate and that in respect

of *......................................................................................
...................................-

+(a) the above-named body corporate is Director/Controller/Chief Executive/Managing Director
+(b) ++ ........................................................................... of which the above-named body corporate is a

partner is Controller
Date .................................................


Signed .......................................................
(Director/Secretary + of the Insurer.)

* Insert name of Insurer.



Cap 41 - Insurance Companies Ordinance 110

+ Delete as necessary.
++ Insert name of partnership.

(Amended 28 of 2012 ss. 912 & 920)





FORM C [paragraph 3, 2nd Schedule]


PARTICULARS REQUIRED UNDER SECTION 14(2) IN
RESPECT OF PERSON BECOMING CONTROLLER WITHIN

THE MEANING OF SECTION 13A(1) OR 13B(1),
OR CEASING TO BE DIRECTOR

OR CONTROLLER

1. Name of insurer of which person has-

+(a) become a controller within the meaning of section +13A(1)/13B(1) of this Ordinance;
+(b) ceased to be +director/controller.


2. Name of person.*

3. Date on which person-

+(a) became a controller within the meaning of section +13A(1)/13B(1) of this Ordinance;
+(b) ceased to be +director/controller.


+4. Confirmation that person has become, or, after becoming, is, a controller within the meaning of section

+13A(1)/13B(1) of this Ordinance in accordance with that section and that there has been no change in any
information furnished under that section in respect of that person.


+5. Reason for ceasing to be +director/controller.

Date ..................................................


Signed ......................................................
(Director/Secretary+ of the Insurer)

+ Delete as necessary.
* Insert name of individual, body corporate or partnership.


(Form C Replaced 44 of 1990 s. 9)


Schedule: 3 ACCOUNTS AND STATEMENTS L.N. 163 of 2013 03/03/2014


[sections 17, 18, 22 & 50]
(Amended 32 of 2000 s. 48)


PART 1: INTERPRETATION AND PRELIMINARY


1. (1) In this Schedule, unless the context otherwise requires- (Amended L.N. 391 of 1990)
"accounting class of general business" (一般業務會計類別) and "accounting class" (會計類別) mean respectively

insurance business falling under any of the headings given below, against which are shown the corresponding
classes of insurance business as defined in Part 3 of the First Schedule,-




Accounting class
Corresponding

classes of
insurance business

1. Accident and health 1, 2



Cap 41 - Insurance Companies Ordinance 111

2. Motor vehicle (including damage to other land vehicles), damage and
liability

3, 10

3. Aircraft, damage and liability 5, 11
4. Ships, damage and liability 6, 12
5. Goods in transit 7
6. Property damage 4, 8, 9
7. General liability 13
8. Pecuniary loss 14, 15, 16, 17
9. Non-proportional treaty reinsurance ---

10. Proportional treaty reinsurance --- ;

"additional amount for unexpired risks" (未過期風險的額外款額) means the amount set aside by an insurer at the

end of its financial year, in addition to any unearned premiums, which is considered necessary to meet the cost
of claims and expenses of settlement arising from risks to be borne by the insurer after the end of the financial
year under contracts of insurance entered into before the end of that year; "appointed actuary" means the person
appointed as actuary to an insurer under section 15 of this Ordinance;

"appointed actuary" (委任精算師) means the person appointed as actuary to an insurer under section 15 of this
Ordinance;

"appointed auditor" (委任核數師) means the person appointed as auditor to an insurer under section 15 of this
Ordinance;

"claim" (申索) means a claim against an insurer under a contract of insurance;
"claims equalization" (申索平衡基金) means the amount set aside by an insurer as at the end of its financial year for

the purpose of being used to prevent exceptional fluctuations in the amounts charged to revenue in subsequent
financial years in respect of claims arising due to the occurrence of events of an exceptional nature, that is to say,
events not normally occurring every year;

"claims outstanding" (未決申索) means, unless otherwise specified, the amount set aside by an insurer as at the
beginning or end of its financial year as being an amount likely to be sufficient to meet-

(a) claims in respect of incidents occurring-
(i) in the case of an amount set aside as at the beginning of the financial year, before the beginning

of that year; and
(ii) in the case of an amount set aside as at the end of the financial year, before the end of that year,

being claims which have not been treated as claims paid and including claims relating to business
accounted for over a longer period than a financial year, claims the amounts of which have not been
determined and claims arising out of incidents that have not been notified to the insurer; and

(b) expenses (such as, for example, legal, medical, surveying or engineering costs) which have been
incurred but not yet recorded as paid or which are likely to be incurred by the insurer, whether through
the employment of its own staff or otherwise, and are directly attributable to the settlement of
individual claims which relate to incidents occurring before the beginning or the end of the financial
year (as the case may be), whether or not the individual claims in question are those mentioned above;

"claims paid" (已償付申索), in relation to general business, means unless otherwise specified the amount that is paid
by an insurer in full or partial settlement of-

(a) claims, including claims relating to business accounted for over a longer period than a financial year;
and

(b) expenses (such as, for example, legal, medical, surveying or engineering costs) which are incurred by
the insurer, whether through the employment of its own staff or otherwise, and are directly attributable
to the settlement of individual claims, whether or not the individual claims in question are those
mentioned above;

"claims paid and outstanding" (已償付及未決申索) means the amount obtained by taking the sum of the claims
paid during a financial year and the claims outstanding as at the end of that year and deducting therefrom the
claims outstanding as at the beginning of the year;

"commission payable" (須付的佣金), in relation to a financial year of an insurer, means the amounts, whether or not
paid during that year, which are recorded during that year as due to intermediaries and cedants in respect of the
inception, amendment or renewal of contracts of insurance;



Cap 41 - Insurance Companies Ordinance 112

"contract of insurance" (保險合約) includes a contract of reinsurance;
"direct business" (直接業務) means contracts of insurance, other than contracts of reinsurance, entered into by an

insurer; (Added L.N. 391 of 1990)
"expenses for settling claims outstanding" (了結未決申索的開支) means the amount set aside by an insurer at the

end of its financial year as being an amount likely to be sufficient to meet that part of the insurer's expenses
which is likely to be incurred in respect of general business in the settlement of claims in respect of incidents
occurring before the end of that year other than expenses which fall to be included under claims outstanding;

"expenses of settling claims" (了結申索的開支) means that part of an insurer's expenses which has been incurred in
respect of general business in the settlement of claims;

"fund" (基金), in relation to-
(a) general business recorded as commencing in any financial year of an insurer but accounted for over a

period longer than that financial year, means, during such period, an amount not less than the
aggregate amount of the premiums receivable during that period (net of reinsurance premiums
payable) reduced by the aggregate amount of the claims paid (net of reinsurance recoveries), expenses
for settling claims, commission (net of reinsurance commission receivable) and premium taxes in
respect of that business and any management expenses attributable to the management of the fund and,
after the end of such period, means such amount as is considered necessary to discharge the remaining
obligations (net of reinsurance) in respect of that business;

(b) long term business, means the amount standing to the credit of an account maintained in respect of that
business in accordance with section 22 of this Ordinance;

"gross premiums" (毛保費), in relation to a financial year-
(a) means premiums after deduction of discounts specified in policies or refunds of premiums made in

respect of any termination or reduction of risks but before deduction of premiums for reinsurance
ceded and of commission payable by the insurer; and

(b) includes premiums receivable by the insurer under reinsurance contracts accepted by the insurer;
"Hong Kong insurance business" (香港保險業務) means-

※(a) any direct business or facultative reinsurance business, being general business, in relation to which the
risk is underwritten in Hong Kong, that is to say-
(i) the policy is issued in Hong Kong;
(ii) the proposal form, application form or any other form of a similar nature is prepared or signed in

Hong Kong;
(iii) the proposal form, application form or any other form of a similar nature is submitted or received

in Hong Kong;
(iv) the proposal form, application form or any other form of a similar nature is accepted in Hong

Kong; or
(v) the risk is accepted in Hong Kong; or (Replaced L.N. 2 of 2003)

(b) any treaty reinsurance business, being general business, in relation to which the risk is underwritten in
Hong Kong, that is to say-
(i) the treaty is signed;
(ii) the treaty is accepted; or
(iii) the treaty negotiation is concluded,

in Hong Kong, other than treaty reinsurance business in respect of which less than 25% of the total risk
(calculated in terms of the gross premiums receivable under the treaty) arises in Hong Kong within the
meaning of subparagraph (2); (Added L.N. 391 of 1990)

※"Hong Kong long term insurance business" (香港長期保險業務) means-
(a) any direct business or facultative reinsurance business, being long term business, in relation to which

the risk is underwritten in Hong Kong, that is to say-
(i) the policy is issued in Hong Kong;
(ii) the proposal form, application form or any other form of a similar nature is signed in Hong

Kong;
(iii) the proposal form, application form or any other form of a similar nature is submitted or received

in Hong Kong;
(iv) the proposal form, application form or any other form of a similar nature is accepted in Hong



Cap 41 - Insurance Companies Ordinance 113

Kong; or
(v) the risk is accepted in Hong Kong; or

(b) any treaty reinsurance business, being long term business, in relation to which the risk is underwritten
in Hong Kong, that is to say-
(i) the treaty is signed in Hong Kong;
(ii) the treaty is accepted in Hong Kong; or
(iii) the treaty negotiation is concluded in Hong Kong,

but does not include any treaty reinsurance business in respect of which less than 25% of the total risk
(calculated in terms of the gross premiums receivable under the treaty) arises in Hong Kong within the
meaning of subparagraph (3); (Added L.N. 2 of 2003)

"intermediary" (中介人) means a person who in the course of any business or profession invites other persons to
make offers or proposals or to take other step with a view to entering into contracts of insurance with an insurer,
other than a person who only publishes such invitations on behalf of, or to the order of, some other person;

"management expenses"(管理開支) means expenses incurred in the administration of an insurer or its business which
are not commission payable and, in the case of general business, are not included in claims paid, claims
outstanding, expenses for settling claims and expenses for settling claims outstanding;

"premiums" (保費) includes the consideration for the granting of an annuity;
"profit and loss account" (損益帳), in relation to an insurer not trading for profit, means an income and expenditure

account;
"provision" (準備金) means any amount written off or retained by way of providing for depreciation, amortization,

renewals or diminution in value of assets or retained by way of providing for any known liability, including
liabilities in respect of expenditure contracted for and all disputed or contingent liabilities, the amount of which
cannot be determined with substantial accuracy;

"receivable" (可收取), in relation to income during a financial year, means, unless otherwise specified, such amounts
as become due to the insurer, whether or not received by the insurer during that year, including (where including
(where appropriate) income which has accrued;

"reinsurance" (再保險) and "reinsurer"(再保險人) include retrocession and retrocessionaire, respectively;
"reinsurance premiums payable" (須付的再保險保費)-

(a) means the premiums recorded in an insurer's books during a financial year as due by it to reinsurers in
respect of reinsurance contracts commencing in that year or reinsurance contracts commencing in
earlier financial years but not accounted for in the insurer's revenue account prior to that financial year,
whether or not paid by the insurer during that financial year, after deducting discounts, refunds and
rebates of premiums as recorded in the same period, and for the purpose of determining whether a
premium is due no account shall be taken of any credit arrangements made in respect thereof; and

(b) in the case of general business, includes, unless otherwise specified, unearned premium portfolios and
outstanding claims portfolios payable by the insurer under reinsurance contracts ceded by the insurer,
after deduction of any premium portfolios or loss portfolios refunded to the insurer by reinsurers;

"reserve" (儲備金) includes any amount written off or retained other than by way of provision;
"statutory business" (法定業務) means-

(a) the business of insurance against liability described in section 6 of the Motor Vehicles Insurance
(Third Party Risks) Ordinance (Cap 272);

(b) the business of insurance against liability described in section 23D of the Merchant Shipping (Local
Vessels) Ordinance (Cap 548) and any regulation made under section 89 of the Ordinance; or
(Replaced 24 of 2005 s. 55)

(c) the business of insurance against liability described in section 40 of the Employees' Compensation
Ordinance (Cap 282); (Added L.N. 391 of 1990)

"unearned premiums" (未滿期保費) means the amount set aside by an insurer at the end of its financial year out of
premiums in respect of risks to be borne by the insurer after the end of the financial year under contracts of
insurance entered into before the end of that year.

※(2) For the purposes of paragraph (b) of the definition of "Hong Kong insurance business", a risk is deemed to
arise in Hong Kong- (Amended L.N. 2 of 2003)

(a) in the case of insurance business of "accident and health" or "pecuniary loss", if-



Cap 41 - Insurance Companies Ordinance 114

(i) the policy holder being an individual is resident in Hong Kong; or
(ii) the policy holder is a company as defined by section 2(1) of the Companies Ordinance (Cap

622); (Amended 28 of 2012 ss. 912 & 920)
(b) in the case of insurance business of "aircraft, damage and liability", "ships, damage and liability" and

"goods in transit", if the risk is underwritten in Hong Kong as described in the definition of Hong
Kong insurance business;

(c) in all other cases of insurance business, if the risk is located in Hong Kong. (Added L.N. 391 of 1990)
※(3) For the purposes of paragraph (b) of the definition of "Hong Kong long term insurance business", a risk is

deemed to arise in Hong Kong, if-
(a) the policy holder being an individual is resident in Hong Kong; or
(b) the policy holder is a company as defined by section 2(1) of the Companies Ordinance (Cap 622).

(Added L.N. 2 of 2003. Amended 28 of 2012 ss. 912 & 920)

1A. (1) A reference in Part 1, 2, 3 or 4 of this Schedule to parent undertaking or subsidiary undertaking is construed
in accordance with Schedule 1 to the Companies Ordinance (Cap 622). (Amended 28 of 2012 ss. 912 & 920)

(2) A reference in a provision specified under subparagraph (3) for the purposes of this subparagraph-
(a) to a holding company shall be deemed to include a parent undertaking that is a company; and

(Amended 28 of 2012 ss. 912 & 920)
(b) to a subsidiary or subsidiary company shall be deemed to include a subsidiary undertaking.

(3) The provisions specified for the purposes of subparagraph (2) are-
(a) paragraph 4(1)(d) and (e)(iii) and (1AD)(f) and (g)(iii) of Part 1 of this Schedule;
(b) paragraph 9(a), (d), (e), (f), (j) and (l) of Part 2 of this Schedule;
(c) the heading, and paragraphs 10, 11 and 12, of Part 3 of this Schedule;
(d) paragraph 16(b)(ii), (d)(i), (e) and (g) of Part 4 of this Schedule. (Added 12 of 2005 s. 21)


2. All accounts and statements shall be produced in the Chinese or the English language or, if not so produced, be
accompanied by a complete Chinese or English translation. (Replaced L.N. 599 of 1995)

3. Subject to the provisions of Part 8, the information to be submitted under this Schedule shall be submitted in
respect of the total business of the insurer. (Amended L.N. 391 of 1990)

4. (1) The accounts and statements of an insurer carrying on long term business only to be submitted under Parts
3, 4 and 5 of this Schedule shall be audited by the appointed auditor who shall annex to the accounts and statements a
report stating-

(a) the greater of the following-
(i) the relevant amount (within the meaning of section 10 of this Ordinance) in the case of the

insurer; or
(ii) the amount as may be prescribed by or determined in accordance with regulations made under

section 59(1)(aa) of this Ordinance for the purpose of section 8(3)(a)(ii)(B) and (iii)(B) of this
Ordinance in the case of the insurer; (Amended 29 of 1997 s. 13)

(b) whether in the auditor's opinion the value of the assets of the insurer exceeds the amount of its
liabilities by the amount stated under sub-paragraph (a);

(c) whether in the auditor's opinion proper records have been maintained in accordance with section 16 of
this Ordinance;

(d) whether in the auditor's opinion the insurer's balance sheet, revenue account and profit and loss
account and (if it is a holding company submitting group accounts) the group accounts have been
properly prepared in accordance with the provisions of this Ordinance; and

(e) whether in the auditor's opinion a true and fair view is given-
(i) in the case of the balance sheet, of the state of the insurer's affairs as at the end of its financial

year;
(ii) in the case of the revenue account and profit and loss account (if it is not framed as a

consolidated revenue account and profit and loss account), of the insurer's profit and loss for its
financial year; and

(iii) in the case of group accounts submitted by an insurer which is a holding company, of the
insurer's interest therein. (Replaced L.N. 599 of 1995 s. 2(1)(c))



Cap 41 - Insurance Companies Ordinance 115

(1AA) Notwithstanding subparagraph (1)(e), the appointed auditor's opinion given under that subparagraph as to
whether a true and fair view is so given may, where the valuation of any asset or liability or the treatment of any
income or expenditure of the insurer is in accordance with any statutory provision which, in the case of that insurer,
applied to the preparation of the accounts and statements so submitted, be qualified in such respects as he may specify,
indicating the items affected by such valuation or treatment and the statutory provisions in question. (Added L.N. 599
of 1995 s. 2(1)(c))

(1AB) The accounts and statements of an insurer carrying on general business only, other than a captive insurer,
to be submitted under Parts 4 and 5 of this Schedule shall be audited by the appointed auditor who shall annex to the
accounts and statements a report stating- (Amended 29 of 1997 s. 13)

(a) the relevant premium income of the insurer;
(aa) the relevant claims outstanding of the insurer; (Added 35 of 1996 s. 33)
(b) the relevant amount (within the meaning of section 10 of this Ordinance) in the case of the insurer;
(c) whether in the auditor's opinion the value of the assets of the insurer exceeds its liabilities by that

relevant amount;
(d) whether in the auditor's opinion proper records have been maintained in accordance with section 16 of

this Ordinance; and
(e) whether in the auditor's opinion the insurer's balance sheet, revenue account and profit and loss

account have been properly prepared in accordance with the provisions of this Ordinance (Added L.N.
599 of 1995 s. 2(1)(c))

(1AC) The accounts and statements of an insurer carrying on both general business and long term business to be
submitted under Parts 4 and 5 of this Schedule shall be audited by the appointed auditor who shall annex to the
accounts and statements a report stating-

(a) the relevant premium income of the insurer attributable to its general business;
(aa) the relevant claims outstanding of the insurer attributable to its general business; (Added 35 of 1996 s.

33)
(b) the relevant amount (within the meaning of section 10 of this Ordinance) in the case of the insurer

having regard to its general business;
(c) the greater of the following-

(i) the relevant amount (within the meaning of section 10 of this Ordinance) in the case of the
insurer having regard to its long term business; or

(ii) the amount as may be prescribed by or determined in accordance with regulations made under
section 59(1)(aa) of this Ordinance for the purpose of section 8(3)(a)(ii)(B) and (iii)(B) of this
Ordinance in the case of the insurer having regard to its long term business; (Amended 29 of
1997 s. 13)

(d) whether in the auditor's opinion the value of the assets of the insurer exceeds its liabilities by the
aggregate of the amounts stated under sub-subparagraphs (b) and (c);

(e) whether in the auditor's opinion proper records have been maintained in accordance with section 16 of
this Ordinance;

(f) whether in the auditor's opinion the insurer's balance sheet, revenue account and profit and loss
account have been properly prepared in accordance with the provisions of this Ordinance; and

(g) whether in the auditor's opinion the balance sheet gives a true and fair view of the financial position, as
at the end of its financial year, of the business of the insurer for which an account is maintained
pursuant to section 22 or 22A of this Ordinance, but his opinion as to whether a true and fair view is so
given may, where the valuation of any asset or liability of the insurer is in accordance with any
statutory provision which, in the case of that insurer, applied to the preparation of the balance sheet so
submitted, be qualified in such respects as he may specify, indicating the items affected by such
valuation and the statutory provisions in question. (Added L.N. 599 of 1995 s. 2(1)(c))

(1AD) The accounts and statements of a captive insurer to be submitted under Parts 3, 4 and 5 of this Schedule
shall be audited by the appointed auditor who shall annex to the accounts and statements a report stating-

(a) the net premium income of the captive insurer;
(b) the net claims outstanding of the captive insurer;
(c) the relevant amount (within the meaning of section 10 of this Ordinance) in the case of the captive

insurer;
(d) whether in the auditor's opinion the value of the assets of the captive insurer exceeds its liabilities by

that relevant amount;



Cap 41 - Insurance Companies Ordinance 116

(e) whether in the auditor's opinion proper records have been maintained in accordance with section 16 of
this Ordinance;

(f) whether in the auditor's opinion the captive insurer's balance sheet, revenue account and profit and loss
account and (if it is a holding company submitting group accounts) the group accounts have been
properly prepared in accordance with the provisions of this Ordinance; and

(g) whether in the auditor's opinion a true and fair view is given-
(i) in the case of the balance sheet, of the state of the captive insurer's affairs as at the end of its

financial year;
(ii) in the case of the revenue account and profit and loss account (if it is not framed as a

consolidated revenue account and profit and loss account), of the captive insurer's profit and loss
for its financial year; and

(iii) in the case of group accounts submitted by a captive insurer which is a holding company, of the
captive insurer's interest therein. (Added 29 of 1997 s. 13)

(1AE) Notwithstanding subparagraph (1AD)(g), the appointed auditor's opinion given under that subparagraph
as to whether a true and fair view is so given may, where the valuation of any asset or liability or the treatment of any
income or expenditure of the captive insurer is in accordance with any statutory provision which, in the case of that
captive insurer, applied to the preparation of the accounts and statements so submitted, be qualified in such respects as
he may specify, indicating the items affected by such valuation or treatment and the statutory provisions in question.
(Added 29 of 1997 s. 13)

※(1A) The forms and statements to be submitted under Parts 8 and 9 of this Schedule (except the forms to be
submitted in Form HKL2 and Form HKL3 under Part 8) shall be audited by a person who is qualified for appointment
as auditor of a company under the Professional Accountants Ordinance (Cap 50) and is not disqualified under section
393 of the Companies Ordinance (Cap 622), and the auditor shall- (Amended L.N. 2 of 2003; 28 of 2012 ss. 912 &
920)

(a) with respect to the forms (except Form HKL1) under Part 8, annex a report thereto stating whether or
not in his opinion- (Amended L.N. 2 of 2003)
(i) the insurer maintains proper records in accordance with section 16 of this Ordinance for the

purposes of preparing the forms;
(ii) the forms have been properly prepared in accordance with those records; and
(iii) the information supplied in the forms presents fairly in all material respects the underwriting

results pertaining to the Hong Kong insurance business; (Amended L.N. 2 of 2003)
(aa) with respect to Form HKL1 under Part 8, annex a report to the form stating whether or not in his

opinion-
(i) the insurer maintains proper records in accordance with section 16 of this Ordinance for the

purposes of preparing the form; and
(ii) the form has been properly prepared in accordance with those records; and (Added L.N. 2 of

2003)
(b) with respect to the statement under Part 9, annex a report thereto stating whether or not in his opinion-

(i) the insurer maintains proper records in accordance with section 16 of this Ordinance for the
purposes of preparing the statement;

(ii) the statement has been properly prepared in accordance with those records;
(iii) the values of the assets and liabilities have been determined in accordance with any applicable

valuation regulations;
(iv) the relevant amount has been determined in accordance with section 25A(1) of this Ordinance;

and
(v) where the statement is submitted pursuant to-

(A) section 25A(9) of this Ordinance, the assets held by the insurer, as shown in the statement,
enable it to comply with the requirement stipulated in section 25A of this Ordinance as at
the last day of the financial year and 2 such other dates in the financial year as the auditor
preparing the report may elect, provided that the intervening period between those 2 dates
shall not be shorter than 3 months; or

(B) section 25B(3)(b) of this Ordinance, the assets held by the insurer, as shown in the
statement, enable it to comply with the requirement stipulated in section 25B of this
Ordinance as at the date specified in the notice issued under that section. (Added 26 of
1994 s. 7)



Cap 41 - Insurance Companies Ordinance 117

(2) If he considers it necessary the appointed auditor shall add to the report such qualification, amplification or
explanation as is appropriate. (Amended 26 of 1994 s. 7)

(3) Subject to the provisions of Part 8, any information required to be submitted under this Schedule may be
submitted in the form of notes if, but only if, the information submitted can readily be interpreted as a whole and the
appointed auditor's report is attached. (Amended L.N. 391 of 1990; 26 of 1994 s. 7)

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- (Amended 59 of 1993 s. 18; 4 of 1998 s. 3)

(a) stating whether 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) stating whether he is satisfied that, as at the date to which the valuation relates, the value of the assets
identified as representing the fund or funds maintained by the insurer in respect of its long term
business was not less than the greater of the following-
(i) the aggregate of-

(A) the amount of the liabilities attributable to that business; and
(B) if any part of the long term business is of a nature other than that specified in class G or H

in Part 2 of the First Schedule, $2000000 or its equivalent; or (Replaced 4 of 1998 s. 3)
(ii) the aggregate of the amount of the liabilities attributable to that business and such amount as may

be required to be held in such fund or funds in accordance with regulations made under section
59(1)(ab) of this Ordinance; (Replaced 25 of 1994 s. 19)

(c) stating whether 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; (Amended 25 of 1994 s. 19)

(d) stating whether he is satisfied that, as at the date to which the valuation relates, the value of the assets
of the insurer was not less than-
(i) in the case of an insurer carrying on long term business only, the aggregate of the amount of its

liabilities and such amount as may be prescribed by or determined in accordance with regulations
made under section 59(1)(aa) of this Ordinance;

(ii) in the case of an insurer carrying on both general business and long term business, the aggregate
of-
(A) the amount which, if section 10(1) of this Ordinance applied, would be the relevant amount

in the case of the insurer having regard only to its general business;
(B) the amount of its liabilities; and
(C) such amount as may be prescribed by or determined in accordance with regulations made

under section 59(1)(aa) of this Ordinance; (Added 25 of 1994 s. 19. Amended 29 of 1997 s.
13)

(e) confirming that he has complied with the prescribed standards or other standards as the Insurance
Authority accepts as being comparable to the prescribed standards under section 15C of this
Ordinance, which are applicable to him; and (Added 29 of 1997 s. 13. Amended 31 of 2000 s. 4)

(f) specifying such of those standards applicable to him with which he has complied. (Added 29 of 1997
s. 13)

(1A) (Repealed 4 of 1998 s. 3)
(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.


PART 2: DIRECTORS' REPORT

7. 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.




Cap 41 - Insurance Companies Ordinance 118

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 $1000 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 $1000 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);
(iii) the name of the director or controller (if not a party to the contract);
(iv) an indication of the nature and value of the contract; and
(v) an indication of the nature and value of the director's or controller's interest in the contract;

(k) state the amounts of any property transferred, payments made (whether for services or otherwise),
loans advanced to or obligations assumed during the financial year by or for a director or controller of
the insurer or his nominees or associates (within the meaning of section 9 of this Ordinance);

(l) if, at the end of the financial year, there subsist arrangements to which the insurer or the insurer's
subsidiary or holding company or a subsidiary of the insurer's holding company is a party, being
arrangements whose objects are, or one of whose objects is, to enable directors or controllers of the
insurer to acquire benefits by means of the acquisition of shares in, or debentures of, the insurer or any
other body corporate, or there have, at any time in that year, subsisted such arrangements as aforesaid
to which the insurer was a party, contain a statement explaining the effect of the arrangements and
giving the names of the persons who at any time in that year were directors or controllers of the insurer
and held, or whose nominees held, shares or debentures acquired in pursuance of the arrangements;

(m) if, at the end of the financial year, the insurer, or the insurer together with any associate (within the
meaning of section 9 of this Ordinance) or through a nominee is entitled to exercise or control the
exercise of one third or more of the voting power of any body corporate, state the name of the body
corporate, the country of its incorporation, its principal business activity, the number of shares so held
and the number issued, the amounts owing to the body corporate by the insurer and owing to the
insurer by the body corporate at the end of the financial year;

(n) state whether the insurer has, in the financial year, carried on insurance business (other than



Cap 41 - Insurance Companies Ordinance 119

reinsurance business) relating to liabilities or risks in respect of which persons are required by any
Ordinance to be insured;

(o) contain a summary of the material reinsurance arrangements effected by the insurer; and
(p) contain particulars of any other matters, including events after the date of the balance sheet, so far as

they are material for the appreciation of the state of the insurer's affairs.


PART 3: ADDITIONAL PROVISIONS RELATING TO AN INSURER
WHICH IS A HOLDING COMPANY


10. This Part shall apply to-

(a) an insurer carrying on long term business only;
(b) a captive insurer,

which is a holding company, whether or not it is itself a subsidiary of another body corporate. (Replaced 29 of 1997 s.
13)

11. The consolidated balance sheet and profit and loss account shall combine the information contained in the
separate balance sheets and profit and loss accounts of the holding company and of the subsidiaries dealt with by the
consolidated accounts, but with such adjustments as the circumstances justify.

12. Where any of the subsidiaries is an insurer, the consolidated revenue account shall combine the information in
the separate revenue accounts of the holding company and of the subsidiary, with such adjustments as the
circumstances justify.

13. Subject as aforesaid, the consolidated accounts shall, in giving the said information, comply so far as practicable
with the requirements of this Schedule as if they were the accounts of an insurer.


PART 4: GENERAL PROVISIONS RELATING TO BALANCE SHEET

14. The authorized share capital (or maximum number of shares issuable under the articles), issued share capital,
assets and liabilities shall be summarized in the balance sheet, with such particulars as are necessary to disclose the
general nature of the assets and liabilities, and there shall be specified- (Amended 28 of 2012 ss. 912 & 920)

(a) any part of the issued share capital that consists of redeemable preference shares, the earliest and latest
dates on which the insurer has power to redeem those shares, whether those shares must be redeemed
in any event or are liable to be redeemed at the option of the insurer and whether any (and, if so, what)
premium is payable on redemption;

(b) so far as the information is not given in the profit and loss account under Part 5 of this Schedule, any
share capital on which interest has been paid during the financial year, and the rate of interest;

(c) the amount of the share premium accounts (if any); and (Amended 28 of 2012 ss. 912 & 920)
(d) particulars of any redeemed debentures which the company has power to reissue.


15. There shall be stated under separate headings, so far as they are not written off-

(a) the preliminary expenses;
(b) any expenses incurred in connection with any issue of share capital or debentures;
(c) any sums paid by way of commission in respect of any shares or debentures;
(d) any sums allowed by way of discount in respect of any debentures; and
(e) the amount of the discount allowed on any issue of shares at a discount.


16. The assets and liabilities of the insurer shall be set out under the following headings and shall reflect the
identification of long term assets and liabilities as required by Part 6 of this Schedule.


Assets


(a) Land and buildings-
Land held on a lease with an unexpired period of less than 10 years shall be separately identified.

Where land and buildings have been valued in the year, the name or qualifications of the valuer, and



Cap 41 - Insurance Companies Ordinance 120

the basis of valuation must be disclosed. For assets valued previously, the year and amount of each
valuation must be shown.

(b) Fixed interest securities-
(i) issued by, or guaranteed by, any Government or public authority;
(ii) other fixed interest securities (except those in associated or subsidiary companies) distinguishing

between listed and unlisted securities.
(c) Variable interest securities-

(i) issued by, or guaranteed by, any Government or public authority;
(ii) others.

(d) Other variable interest investments-
(i) equity shares (except those in associated or subsidiary companies) distinguishing between listed

and unlisted shares;
(ii) holdings in unit trusts.

(e) Investments in associated or subsidiary companies-
(i) insurers-

(A) value of any shares held;
(B) debts (other than debts referred to in (g) below);

(ii) non-insurers-
(A) value of any shares held;
(B) debts.

The shares shall be analysed as listed and as unlisted, and the debts shall be analysed as secured, as
partly secured and as unsecured

(f) Loans secured by contracts of insurance issued by the insurer.
(g) Insurance debts (distinguishing between those due from associated or subsidiary companies and those

due from others)-
(i) premium income in respect of direct insurance but not yet paid to the insurer less commission

payable thereon;
(ii) amounts due under reinsurance contracts, distinguishing as between reinsurance contracts

accepted and reinsurance contracts ceded;
(iii) if material, recoveries due by way of salvage or from other insurers in respect of claims paid

other than recoveries under reinsurance contracts ceded.
(h) Debts not previously covered-

(i) fully secured;
(ii) partly secured;
(iii) unsecured.

(i) Deposit and current accounts with banks-
(i) fixed term deposits;
(ii) current accounts.

(j) Deposit and current accounts with deposit-taking companies registered or authorized by any
governmental agency-
(i) fixed term;
(ii) at call.

(k) Cash.
(l) Computer equipment, office machinery, furniture, motor vehicles and other equipment.
(m) Goodwill, patents, and trademarks.
(n) Other assets, to be separately specified if material.
With regard to assets where a provision is made for depreciation, amortization, renewal or diminution in
value, the amount so provided shall be recorded in respect of each asset.


Liabilities


(o) Long term business liabilities-

(i) long term business funds;
(ii) claims admitted but not paid; for each type of business specified in paragraph 25.

(p) Liabilities other than long term business-



Cap 41 - Insurance Companies Ordinance 121

(i) unearned premiums;
(ii) any additional amount for unexpired risks;
(iii) claims outstanding before and after deducting amounts recoverable from reinsurers-

(A) reported claims;
(B) claims incurred but not reported;

(iv) expenses of settling claims outstanding, if not included under (iii) above;
(v) funds;
(vi) others.

(q) Other insurance liabilities-
(i) amounts due in respect of direct insurance except amounts which must be included in (o) or (p)

above;
(ii) amounts due to insurers and intermediaries under reinsurance treaties accepted, except amounts

which must be included in (o) or (p) above;
(iii) amounts due to reinsurers and intermediaries under reinsurance contracts coded.

(r) Other liabilities-
(i) secured loans;
(ii) unsecured loans;
(iii) subordinated loan stock;
(iv) taxation;
(v) recommended dividend;
(vi) accrued cumulative preference share dividend;
(vii) other creditors.


17. The aggregate amounts respectively of reserves and provisions (other than provisions for depreciation,
amortization, renewal or diminution in value of assets) shall be stated under separate headings.

18. There shall also be shown (unless it is shown in the profit and loss account or a statement or report annexed
thereto, or the amount involved is not material)-

(a) where the amount of the reserves or of the provisions (other than provisions for depreciation,
amortization, renewal or diminution in value of assets) shows an increase as compared with the
amount at the end of the immediately preceding financial year, the source from which the amount of
the increase has been derived; and

(b) where-
(i) the amount of the reserves shows a decrease as compared with the amount at the end of the

immediately preceding financial year; or
(ii) at the end of the immediately preceding financial year the amount of the provisions (other than

provisions for depreciation, amortization, renewal or diminution in value of assets) exceeded the
aggregate of the sum since applied and amounts still retained for the purposes thereof,

the application of the amounts derived from the difference.

19. If provision is made for claims equalization or to accommodate fluctuations in taxation, or for any other purpose,
it shall be stated. If any of the sum so set aside has been used during the financial year for another purpose, the amount
thereof and the purpose for which it has been so used shall be stated.

20. Where any liability of the insurer is secured otherwise than by operation of law on any assets of the insurer, the
fact that the liability is so secured shall be stated.

21. Where any of the insurer's debentures are held by a nominee of or trustee for the insurer, the nominal amount of
the debentures and the amount at which they are stated in the books of the insurer shall be stated.

22. The following shall also be stated-

(a) where any person or class of persons has an option to subscribe for shares in the insurer-
(i) the name of that person or the class of persons involved;
(ii) the period during which it is exercisable;
(iii) the price to be paid or shares subscribed for under it;



Cap 41 - Insurance Companies Ordinance 122

(b) the amount of any arrears of fixed cumulative dividends on the insurer's shares and the period for
which the dividends or, if there is more than one class, each class of them are in arrear;

(c) particulars of any charge on the assets of the insurer to secure the liabilities of another, including the
amount secure

(d) if it is material, the general nature of any other contingent liabilities not provided for and the aggregate
amount or estimated amount of those liabilities; and

(e) if it is material, the aggregate amount or estimated amount of authorized capital expenditure so far as
not provided for.


23. Except in the case of the first balance sheet, the corresponding amounts at the end of the immediately preceding
financial year shall be shown for all items.


PART 5: GENERAL PROVISIONS RELATING TO REVENUE ACCOUNT AND
PROFIT AND LOSS ACCOUNT


Revenue Account


24. (1) There shall be shown for each accounting class of general business-

(a) all gross premiums receivable by the insurer, distinguishing between-
(i) premiums from direct underwriting; and
(ii) premiums under reinsurance contracts accepted by the insurer;

(b) all reinsurance premiums payable by the insurer, distinguishing between cessions relating to direct
underwriting and retrocessions relating to reinsurance contracts accepted by the insurer;

(c) all commissions payable by the insurer to agents, brokers or ceding companies, distinguishing between
those relating to premiums from direct underwriting and those relating to premiums under reinsurance
contracts accepted by the insurer;

(d) all commissions receivable by the insurer from reinsurers;
(e) all claims paid and outstanding, distinguishing between those relating to direct underwriting and those

relating to reinsurance contracts accepted by the insurer, and showing-
(i) the gross amounts;
(ii) the amounts recoverable from reinsurers; and
(iii) the net amounts;

(f) expenses of settling claims;
(g) management expenses;
(h) unearned premiums and unexpired risks brought forward at the beginning of the financial year and

carried forward at the end of the year.
(2) An insurer-

(a) which undertakes business in accounting class 4 only in respect of risks relating to hovercraft may
account for such business in accounting class 3 if it also undertakes business in that class;

(b) may include in accounting class 5 business covering liability for loss or damage to or of goods in
transit which would otherwise be included in accounting class 2 provided that the policy does not
cover damage to vehicles except as an ancillary risk as defined in the First Schedule.

(3) Accounting classes 3, 4 and 5 when accounted for on a fund accounting basis shall also include treaty
reinsurance business in the corresponding classes. Subject thereto, the insurer may account for all reinsurance business
in accounting classes 9 and 10, or alternatively may combine all such business with similar business falling within
accounting classes 1 to 8 inclusive. (Amended L.N. 391 of 1990)

25. The following items (a) to (i) shall be shown, for long term business, for each of the following types of business
(i) to (ix) (which correspond to the classes of long term business in Part 2 of the First Schedule)- (Amended 59 of
1993 s. 18)

(i) life and annuity business;
(ii) marriage and birth business;
(iii) linked long term business;
(iv) permanent health business;
(v) tontines;



Cap 41 - Insurance Companies Ordinance 123

(vi) capital redemption business; (Amended 59 of 1993 s. 18)
(vii) retirement scheme management category I business; (Added 59 of 1993 s. 18)
(viii) retirement scheme management category II business; (Added 59 of 1993 s. 18)
(ix) retirement scheme management category III business: (Added 59 of 1993 s. 18)

Provided that if the appointed auditor certifies that the effect of business under any of the types business (ii) to
(v) above is not material, such business may be accounted for under (i) above;

(a) gross premiums receivable from-
(i) direct underwriting business;
(ii) reinsurance contracts accepted,

distinguishing between premiums on new policies and premiums on renewal policies and single
premium policies and regular premium policies;

(b) reinsurance premiums payable, distinguishing as in (a) above;
(c) commissions payable to agents, brokers or ceding insurers in respect of-

(i) direct underwriting business;
(ii) reinsurance contracts accepted, distinguishing as in (a) above;

(d) commissions receivable from reinsurers, distinguishing as in (a) above;
(e) gross claims payable in respect of-

(i) direct underwriting business;
(ii) reinsurance contracts accepted,

distinguishing between those payable on death, on surrender, by way of lump sum on maturity or by
way of periodic payments under the contracts of insurance;

(f) claims recoverable from reinsurers, distinguishing as in (e) above;
(g) interest or other income from long term business assets;
(h) dividends to policy holders;
(i) management and other expenses.


Profit and Loss Account


26. There shall be shown-

(a) the amounts respectively of income from listed investments and income from unlisted investments;
(b) if a substantial part of the insurer's revenue for the financial year consists of rents from land and

buildings, the amount thereof (after deduction of ground-rents, rates and other out-goings);
(c) any contribution to profits other than (a) and (b) above from sources other than insurance business;
(d) the amount provided for depreciation, amortization, renewals or diminution in value of assets;
(e) the amount of any provisions made other than provisions for depreciation, amortization, renewals or

diminution in value of assets or, as the case may be, the amount withdrawn from such provisions and
not applied for the purposes thereof;

(f) if, as respects any assets in whose case an amount is provided for depreciation, amortization or
diminution in value, an amount is provided for renewal thereof, the last-mentioned amount shall be
shown separately;

(g) if the amount provided for depreciation or diminution in value of any fixed assets (other than
investments) has been determined otherwise than by reference to the amount of those assets as
determined for the purpose of making up the balance sheet, that fact shall be stated. Where land or
buildings have been revalued and as a result of the valuation there has been a change in the basis of
depreciation in the period with regard to the land or buildings, the effect of this change shall be
disclosed, if material;

(h) the amount of interest on loans made to the insurer, whether on the security of debentures or not;
(i) the amount of the charge for taxation;
(j) the amounts respectively provided for redemption of share capital and for redemption of loans;
(k) the amount set aside or proposed to be set aside to, or withdrawn from, reserves;
(l) the amount, if material, charged in respect of the hire of plant and machinery;
(m) the aggregate amount of the dividends paid and proposed;
(n) the amount of any charge arising in consequence of the occurrence of an event in a preceding financial

year and of any credit so arising shall, if not included in a heading relating to other matters, be stated
under a separate heading;



Cap 41 - Insurance Companies Ordinance 124

(o) the amount of the remuneration of the auditors shall be shown under a separate heading, and for the
purposes of this paragraph, any sums paid by the insurer in respect of the auditors' expenses shall be
deemed to be included in the expression "remuneration";

(p) (i) the aggregate amount of directors' emoluments;
(ii) if there are more than 3 directors, the aggregate amount of the emoluments of the 3 highest-paid

directors;
(iii) the aggregate amount of compensation paid to any director or past director for loss of office as

director.

27. The following shall also be stated-

(a) if depreciation or replacement of fixed assets is provided for by some method other than a depreciation
charge or provision for renewals, or is not provided for, the method by which it is provided for or the
fact that it is not provided for, as the case may be;

(b) the basis on which the charge for taxation is computed;
(c) any special circumstances which affect liability in respect of taxation for the financial year or liability

in respect of taxation for succeeding financial years;
(d) except in the case of the first accounts, the corresponding amounts for the immediately preceding

financial year for all items shown in the revenue account and the profit and loss account;
(e) any material respects in which any items shown in the revenue account or profit and loss account are

affected-
(i) by transactions of a sort not usually undertaken by the insurer or otherwise by circumstances of

an infrequent or non-recurrent nature; or
(ii) by any change in the basis of accounting; or
(iii) by any correction of fundamental errors in any of the preceding financial years.


PART 6: ADDITIONAL REQUIREMENTS IN RESPECT OF INSURERS

CARRYING ON LONG TERM BUSINESS


Identification of Long Term Assets and Liabilities

28. This Part sets out the method of identification of long term assets and liabilities required under section 22 of this
Ordinance.

29. All assets and liabilities not identified with its long term business at the end of the financial year of the insurer
beginning next after the commencement of this Ordinance shall be so identified at that date ("the base date").

30. In the case of liabilities, the amount to be identified shall be the aggregate of the following-

(a) the amount of the long term business fund or funds carried forward in the insurer's revenue account;
(b) the amounts of any accounting liabilities, reserves or provisions, other than those mentioned in (a)

above, shown in the insurer's balance sheet as attributable only to the insurer's long term business;
(c) the amounts of any accounting liabilities, reserves or provisions, other than those mentioned in (a) and

(b) above, shown or included in the insurer's balance sheet in relation to which there are records which
identify them as attributable only to the insurer's long term business.


31. In the case of assets, the assets to be identified shall be such proportion of the insurer's total assets as the amount
of the identified liabilities bears to the total liabilities of the insurer. The insurer's total assets shall be valued at a fair
market value on the base date, the amount of the identified liabilities shall be determined as in paragraph 30, and the
total liabilities of the insurer shall be taken as including the share capital and reserves but excluding provisions or
other allowances in respect of depreciation, amortization, renewal or diminution in value (whether actual or potential)
of assets:

Provided that-
(a) the value of assets to be identified shall be not less than the aggregate of $2000000 or its equivalent

and the amount of the identified liabilities; and
(b) where the value of assets so identified is less than the aggregate of the values of the assets which were

already identified as attributable to the insurer's long term business on the base date, the latter shall be



Cap 41 - Insurance Companies Ordinance 125

taken as the identified assets.

32. Assets and liabilities which were already identified as attributable to the insurer's long term business on the base
date or which are to be so identified on the base date shall be identified as attributable to its long term business on the
base date.

33. Assets acquired after the base date, to the extent that they are acquired out of receipts of the insurer in respect of
its long term business, shall be identified to that extent as attributable to the insurer's long term business.

34. Where any assets which were identified as attributable to the insurer's long term business in accordance with the
above requirements have been disposed of, the proceeds of that disposal shall be identified as assets attributable to the
insurer's long term business.

35. Any income accruing from any asset of the insurer which falls to be identified as an asset attributable to the
insurer's long term business shall also be so identified.

36. (1) Every insurer to which this Part of this Schedule applies shall, not later than 6 months after the base date,
deposit with the Insurance Authority a certificate that the insurer has in accordance with this Part-

(a) identified in accordance with the provisions of paragraphs 30 and 31 any assets and liabilities which
were not already identified on the base date as attributable to the insurer's long term business;

(b) identified as assets attributable to the insurer's long term business all those assets which are required to
be so identified in accordance with paragraph 32; and

(c) established and maintained those books of account and other records which are required to be
established and maintained by section 22 of this Ordinance,

and that certificate shall be signed by at least 2 directors of the insurer and the chief executive thereof or, in the case of
an insurer which has no chief executive, by at least 2 directors and the secretary thereof:

Provided that if in any case it is made to appear to the Insurance Authority that the circumstances are such that a
longer period than 6 months should be allowed for depositing the certificate, he may extend that period by such period
not exceeding 3 months as he thinks fit.

(2) There shall be annexed to every such certificate a report signed by the appointed auditor stating whether-
(a) the insurer has complied with subparagraph (1)(a) and (b); and
(b) in his opinion, the insurer has complied with subparagraph (1)(c).


PART 7: INFORMATION TO BE FURNISHED FOLLOWING ACTUARIAL

INVESTIGATION UNDER SECTION 18 OR 32 OF This ORDINANCE

37. The following forms and supplementary information shall be furnished in support of any actuarial valuation
required to be produced under section 18 or 32 of this Ordinance, and the information hereinafter required shall be
furnished for each type of business set out in paragraph 38(1) of this Schedule for each fund and in total.

38. (1) There shall be furnished in the Form L1 below a revenue account for the period since the last valuation or,
in the case of an insurer which has made no valuation, since the commencement of the business, for each of the
following types of business (i) to (ix) (which correspond to the classes of long term business in Part 2 of the First
Schedule)- (Amended 59 of 1993 s. 18)

(i) life and annuity business;
(ii) marriage and birth business;
(iii) linked long term business;
(iv) permanent health business;
(v) tontines;
(vi) capital redemption business; (Amended 59 of 1993 s. 18)
(vii) retirement scheme management category I business; (Added 59 of 1993 s. 18)
(viii) retirement scheme management category II business; (Added 59 of 1993 s. 18)
(ix) retirement scheme management category III business: (Added 59 of 1993 s. 18)

Provided that if the appointed actuary certifies that the effect of business under any of the types of business (ii)
to (v) above is not material, such business may be accounted for under (i) above.



Cap 41 - Insurance Companies Ordinance 126


FORM L1


REVENUE ACCOUNT OF ................................ (name of insurer)


in respect of class(es) * ................... for the period commencing .............. and ending .............



$ $
Amount of Funds on ............., Commissions Payable ........................................................... XX
the beginning of the period ............................................................ XX
(i) Direct Underwriting Business . . .
Premiums Receivable ........................................................................ XX
(ii) Reinsurance Contracts Accepted . . .
Gross

Premiums
Reinsurance
Premiums

Ceded

Net of
Reinsurance
Premiums

_____
XX

___________

Claims Payable ........................................................................ XX
(i) Direct Underwriting

Business:
Single Premiums
Regular Premiums



(ii) Reinsurance Contracts
Accepted:
Single Premiums
Regular Premiums









. . .

. . .
____________







. . .

. . .
____________

. . .
____________



. . .

. . .
____________







. . .

. . .
____________

. . .
____________





. . .

. . .
____________







. . .

. . .
____________

. . .
____________

XX
======




(i) Direct Underwriting

Business:
On Death
On Surrender
By Way of Lump Sums on

Maturity
By Way of Periodic

Payments





Gross
Amount





. . .

. . .


. . .


. . .
____________

. . .
____________



Recoverable
from

Reinsurers



. . .

. . .


. . .


. . .
____________

. . .
____________



Net
Amount





. . .

. . .


. . .


. . .
____________

. . .
____________



Interest or Income from Long Term Business Assets .................
Commissions Receivable ...................................................................
Other Receipts (accounts to be specified) ....................................

XX
XX
XX

(ii) Reinsurance Contracts
Accepted:
On Death
On Surrender
By Way of Lump Sums on

Maturity
By Way of Periodic

Payments




. . .

. . .


. . .


. . .
____________

. . .
____________





. . .

. . .


. . .


. . .
____________

. . .
____________



. . .

. . .


. . .


. . .
____________

. . .
____________

XX
=====



Dividends to Policy holders .................................................. XX
Other Payments (accounts to be specified) ........................ XX
Amount of Funds on .....................,

the end of the period ............................................................


XX
Transfer from Profit and Loss Account ............................................. XX

_______

XX
===

Transfer to Profit and Loss Account .................................... XX
______

XX
===

* The classes referred to correspond to the classes of Long Term Business set out in Part 2 of the First Schedule.



(2) The following supplementary information shall be furnished with the Form L1 above-
(a) the date up to which the valuation is made;
(b) the principles upon which the valuation and distribution of profits among the policy holders are made,

and whether these principles were determined by the instrument constituting the insurer or by its
regulations or bylaws or otherwise;

(c) the table or tables of mortality used in the valuation;
(d) the rate or rates of interest assumed in the calculations;
(e) the proportion of the annual premium income reserved as a provision for future expenses and profit (if

no such provision is made in respect thereof, a statement as to what provision is made shall be
furnished);

(f) the time during which a policy must be in force in order to entitle the policy holders to share in the
profits;

(g) the results of the valuation, showing-
(i) the total amount of profit made by the insurer;



Cap 41 - Insurance Companies Ordinance 127

(ii) the amount of profit divided among the policy holders, and the number and amount of the
policies which participated;

(iii) the amount of profit brought forward from the previous valuation, the amount thereof allotted to
policy holders and shareholders.


39. (1) There shall be furnished in the Forms L2 and L3 below a statement of the liabilities of the insurer under
each of the types of business specified in paragraph 38(1) at the date of the valuation, showing the number of policies,
the amount assured and the amount of premiums payable annually under each type of policy, both with and without
participation in profits, and the net liabilities and assets of the insurer, and the amount of any surplus or deficiency.


FORM L2


VALUATION SUMMARY OF ................................... (name of insurer)

for the period commencing ................................ and ending ..........................................


1 2 3 4 5 6 7 8
Class Type of insurance Number

of
contracts

Amount of sums
assured or annuities
per annum including
vested reversionary

bonuses

Amount of
yearly premiums

Value of sums
assured or annuities
per annum including
vested reversionary

bonuses

Value of
yearly

net
premiums

Amount
of net

liability

Bases
of

valuationOffice
premiums

Net
premium


A


(I) Life assurance other than

annuities
(a) With participation in

profits:
Whole life .............
Endowment ..........
Other types (to be

specified) ...........

$ $ $ $ $ $

Total assurances with
profit.........



(b) Without participation in
profits:
Whole life ............
Endowment .........
Other types (to be

specified) ..........



Total assurances without
profits ..



Total assurances ....... ╳╳
(II) Annuities

(a) With participation in
profits:
Life annuities in course
of
payment ........................
..
Deferred life

annuities ........



Other types (to be
specified) .......

Total annuities with
profits ...



(b) Without participation in
profits:
Life annuities in course

of payment .......
Deferred life

annuities .......
Other types (to be

specified) .....



Total annuities without
profits .....................



Total annuities ..... ╳╳
B Marriage and birth ╳╳ ╳╳ ╳╳ ╳╳
C Linked long term ╳╳ ╳╳ ╳╳ ╳╳
D Permanent health ╳╳ ╳╳ ╳╳ ╳╳
E Tontines ╳╳ ╳╳ ╳╳ ╳╳
F Capital redemption ╳╳ ╳╳ ╳╳ ╳╳
G Retirement scheme management

category I
╳╳

╳╳
╳╳
╳╳

╳╳
╳╳

╳╳
╳╳



H Retirement scheme management
category II

╳╳
╳╳

╳╳
╳╳

╳╳
╳╳

╳╳
╳╳





Cap 41 - Insurance Companies Ordinance 128

I Retirement scheme management
category III



TOTALS ╳╳




Notes
1. The classes referred to correspond to the classes of Long Term Business set out in Part 2 of the First

Schedule.
2. Within each class of insurance, the following are to be shown-

(i) direct business and reinsurances accepted;
(ii) reinsurances ceded; and
(iii) net retained business.

3. The entry under column 8 should either refer to details given as supplementary information or should state
the mortality tables/statistical tables and rates of interest employed, as appropriate.

4. With regard to business falling within class A-
(i) separate summaries similar in form to the above must be furnished in respect of policies valued by

different mortality tables, or at different rates of interest; and
(ii) contracts the nature of which or the method of valuation of which makes it impossible or inappropriate

to give the information required in columns 4, 5 and 6 of any valuation summary are to be shown
separately and the reason stated.

(Amended 59 of 1993 s. 18; 35 of 1996 s. 33)


FORM L3


Valuation Balance Sheet of , as at , 19 .


Net liability under long term insurance business

(as per Form L2) ....................
Surplus .......................................................

$




_________
$


Long term insurance business funds (as per

Balance Sheet) ...................................
Deficiency ................................................

$



________
$

___________________________________________________________________

(2) There shall be furnished with the Forms L2 and L3 above particulars of the average rate of interest yielded

by the assets whether invested or uninvested constituting the long term business fund of the insurer, calculated upon
the mean fund of each year during the period since the last investigation.


PART 8: ACCOUNTS AND INFORMATION IN RESPECT OF THE
HONG KONG INSURANCE BUSINESS AND HONG KONG LONG
TERM INSURANCE BUSINESS OF AN INSURER

(Amended L.N. 3 of 2003)

40. (1) Every insurer who is authorized to carry on general business shall submit to the Insurance Authority-

(a) if its financial year ends on 31 December, in respect of the financial year ending on 31 December
1990; and

(b) in any other case, in respect of the first financial year ending after 31 December 1990,
and thereafter in respect of every successive financial year-

(i) the accounts or information specified in subparagraph (2), relating to the Hong Kong insurance
business carried on by it, in the form described in relation to each such specified account or
information; or

(ii) where it does not carry on any Hong Kong insurance business to which any account or information
specified in subparagraph (2) relates, during any financial year referred to in this subparagraph, a
statement to that effect, in the form described in relation to such account or information.

(2) The accounts or information and the forms referred to in subparagraph (1) are-
(a) subject to sub-subparagraph (e), a revenue account of direct business, in the form provided in Form 1;
(b) subject to sub-subparagraph (e), supplementary information relating to the revenue account of the



Cap 41 - Insurance Companies Ordinance 129

direct business, in the form provided in Form 1A;
(c) subject to sub-subparagraph (f), a revenue account of the reinsurance business, in the form provided in

Form 2;
(d) subject to sub-subparagraph (f), supplementary information relating to the revenue account of the

reinsurance business, in the form provided in Form 2A;
(e) in the case of an insurer whose direct business is accounted for on a fund accounting basis, in lieu of

the account and information referred to in sub-subparagraphs (a) and (b) respectively, revenue
accounts of the direct business carried on, on a fund accounting basis, in the form provided in Form 3;

(f) in the case of an insurer whose reinsurance business is accounted for on a fund accounting basis, in
lieu of the account and information referred to in sub-subparagraphs (c) and (d) respectively, revenue
accounts of the reinsurance business carried on, on a fund accounting basis, in the form provided in
Form 4;

(g) statistics of statutory business, being direct business, in the form provided in Form 5;
(h) statistics of claims paid (Gross), in the form provided in Form 6;
(i) statistics of outstanding claims provision (Gross), in the form provided in Form 7;
(j) statistics of claims paid (Net), in the form provided in Form 8;
(k) statistics of outstanding claims provision (Net), in the form provided in Form 9.




FORM 1


HONG KONG INSURANCE BUSINESS-DIRECT BUSINESS REVENUE ACCOUNT
OF .................................. (Name of insurer)


for the period commencing on ................................. and ending on .........................


ACCOUNTING CLASSES OF GENERAL BUSINESS













Ships, damage
and

liability















General liability













Accident

and
health

$

Motor
vehicle,

damage and
liability

$

Aircraft,
damage

and
liability

$




Statutory
business

$





Others
$




Goods in
transit

$




Property
damage

$




Statutory
business

$





Others
$




Pecuniary
loss

$





Total
$

GROSS PREMIUMS
(1) Gross premiums

receivable
(2) Reinsurance premiums

payable



RETAINED PREMIUMS
(3) Premiums net of

reinsurance (1)-(2)
(4) Unearned premiums

adjustment
(5) Earned premiums (3)-(4)



UNDERWRITING
EXPENSES
(6) Commissions payable
(7) Management expenses
(8) Unexpired risks

adjustment
(9) Gross expenses

(6)+(7)+(8)
(10) Commissions receivable

from reinsurers
(11) Total net expenses (9)-

(10)



CLAIMS (incl. claims settling
expenses)

(12) Gross amounts paid
(13) Amounts recoverable

from
(a) reinsurers
(b) others

(14) Net amounts paid (12)-





Cap 41 - Insurance Companies Ordinance 130

(13)
(15) Provision for

outstanding claims
adjustment

(16) Net incurred (14)+(15)
UNDERWRITING RESULT
(17) Profit/(Loss) (5)-(11)-

(16)




We certify that the above information is true and correct.










___________
( )

Director

___________
( )

Director

_________________________
( )

*Chief Executive/Secretary




Note: Amounts must be expressed in Hong Kong dollars.

* Delete as necessary.



FORM 1A


HONG KONG INSURANCE BUSINESS-DIRECT BUSINESS REVENUE ACCOUNT
OF ........................... (Name of insurer) SUPPLEMENTARY INFORMATION


for the period commencing on ................................... and ending on ...........................


ACCOUNTING CLASSES OF GENERAL BUSINESS


Ships, damage and

liability




General liability





Accident

and
health

$

Motor
vehicle,

damage and
liability

$


Aircraft,
damage

and liability
$




Statutory
business

$





Others
$




Goods in
transit

$




Property
damage

$




Statutory
business

$





Others
$




Pecuniary
loss

$





Total
$

(4) UNEARNED PREMIUMS
ADJUSTMENT
(A) Amount of unearned

premiums c/f
(B) Amount of unearned

premiums b/f
(C) Increase/

(Decrease) (A)-
(B)



(8) UNEXPIRED RISKS
ADJUSTMENT
(A) Amount of unexpired

risks c/f
(B) Amount of unexpired

risks b/f
(C) Increase/

(Decrease) (A)-
(B)



(15) PROVISION FOR
OUTSTANDING
CLAIMS ADJUSTMENT
(A) Provision for

outstanding
claims

(a) Gross amount
(b) Amount

recoverable
from

(i) reinsurers
(ii) others

(c) Net amount (a)-
(b)

(B) Provision for IBNR
(C) Amount of provision

for outstanding
claims incl. IBNR
c/f (A)+(B)

(D) Amount of provision
for outstanding
claims incl. IBNR





Cap 41 - Insurance Companies Ordinance 131

b/f
(E) Increase/

(Decrease) (C)-
(D)






We certify that the above information is true and correct.










_______________
( )

Director





______________
( )

Director




_________________________
( )

*Chief Executive/Secretary






Note: Amounts must be expressed in Hong Kong dollars.

* Delete as necessary.




FORM 2


HONG KONG INSURANCE BUSINESS-REINSURANCE BUSINESS REVENUE ACCOUNT
OF ............................................. (Name of insurer)


for the period commencing on ............................. and ending on .............................


ACCOUNTING CLASSES OF GENERAL BUSINESS







Accident
and

health
$




Motor
vehicle,

damage and
liability

$




Aircraft,
damage

and
liability

$




Ships,
damage

and
liability

$






Goods in
transit

$






Property
damage

$






General
liability

$






Pecuniary
loss

$





^Non-pro-
portional

treaty
$





^Pro-
portional

treaty
$







Total
$

GROSS PREMIUMS
(1) Gross premiums

receivable
(2) Retrocession premiums

payable



RETAINED PREMIUMS
(3) Premiums net of

retrocession (1)-(2)
(4) Unearned premiums

adjustment
(5) Earned premiums (3)-

(4)



UNDERWRITING
EXPENSES
(6) Commissions payable to

ceding companies
(7) Management expenses
(8) Unexpired risks

adjustment
(9) Gross expenses

(6)+(7)+(8)
(10) Commissions receivable

from retrocessionaires
(11) Total net expenses (9)-

(10)



CLAIMS (incl. claims
settling
expenses)

(12) Gross amounts paid
(13) Amounts recoverable

from retrocessionaires
(14) Net amounts paid (12)-

(13)
(15) Provision for

outstanding claims
adjustment

(16) Net incurred (14)+(15)



UNDERWRITING RESULT
(17) Profit/(Loss)

(5)-(11)-(16)






Cap 41 - Insurance Companies Ordinance 132











We certify that the above information is true and correct.







___________
( )

Director





___________
( )

Director




____________________________
( )

*Chief Executive/Secretary






Notes: (a) Amounts must be expressed in Hong Kong dollars.
(b) Both treaty and facultative reinsurance business must be included.


^ In the event that it is impracticable to allocate the treaty reinsurance business to the respective first 8 accounting classes of general business, such business may be shown under 2

broad classes, namely, Non-proportional Treaty Reinsurance and Proportional Treaty Reinsurance. However, in such circumstances the insurer must supply estimates of the gross
premiums receivable (i.e. item (1) above) attributable to the treaty reinsurance business of each of the first 8 accounting classes of general business.


* Delete as necessary.




FORM 2A


HONG KONG INSURANCE BUSINESS-REINSURANCE BUSINESS REVENUE ACCOUNT
OF ........................................................ (Name of insurer)

SUPPLEMENTARY INFORMATION


for the period commencing on ........................ and ending on ...............................


ACCOUNTING CLASSES OF GENERAL BUSINESS







Accident
and

health
$




Motor
vehicle,
damage

and
liability

$





Aircraft,
damage

and
liability

$





Ships,
damage

and
liability

$






Goods
in

transit
$







Property
damage

$







General
liability

$







Pecuniary
loss

$






^Non-pro-
portional

treaty
$






^Pro-
portional

treaty
$








Total
$

(4) UNEARNED
PREMIUMS
ADJUSTMENT
(A) Amount of unearned

premiums c/f
(B) Amount of unearned

premiums b/f
(C) Increase/

(Decrease)
(A)-(B)



(8) UNEXPIRED
RISKS
ADJUSTMENT

(A) Amount of unexpired risks
c/f

(B) Amount of unexpired risks
b/f

(C) Increase
/(Decrease)
(A)-(B)



(15) PROVISION FOR
OUTSTANDING
CLAIMS
ADJUSTMENT

(A) Provision for outstanding
claims

(a) Gross amount
(b) Amount recoverable

from retrocessionaires
(c) Net amount (a)-(b)



(B) Provision for IBNR
(C) Amount of provision for

outstanding claims incl.
IBNR c/f
(A)+(B)

(D) Amount of provision for





Cap 41 - Insurance Companies Ordinance 133

outstanding claims incl.
IBNR b/f

(E) Increase/(Decrease)
(C)-(D)



We certify that the above information is true and correct.



___________
( )

Director




___________
( )

Director



__________________________
( )

*Chief Executive/Secretary









Notes: (a) Amounts must be expressed in Hong Kong dollars.
(b) Both treaty and facultative reinsurance business must be included.


^ In the event that it is impracticable to allocate the treaty reinsurance business to the respective first 8 accounting classes of general business, such business may be shown under 2
broad classes, namely, Non-proportional Treaty Reinsurance and Proportional Treaty Reinsurance.


* Delete as necessary.

(Amended 32 of 2000 s. 48)




FORM 3


HONG KONG INSURANCE BUSINESS-DIRECT BUSINESS REVENUE ACCOUNT ON THE FUND
ACCOUNTING BASIS OF .................................... (Name of insurer)


for the period commencing on .............................and ending on ..............................


ACCOUNTING CLASS OF GENERAL BUSINESS: ______________








19_____
Year of Account

(Two year preceding the period)

19_____
Year of Account

(One Year preceding the period)

19_____
Year of Account

(The period)






All prior
Years of Account

Developments
in current year

$




Developments
in current

year
$





Cumulative
developments

$




Developments
in current

year
$





Cumulative
developments

$





Developments
in current year

$


Total

Develop-
ments

in current year
$

GROSS PREMIUMS
(1) Gross premiums receivable
(2) Reinsurance premiums payable



RETAINED PREMIUMS
(3) Premiums net of reinsurance (1)-(2)



UNDERWRITING EXPENSES
(4) Commissions payable
(5) Management expenses
(6) Gross expenses (4)+(5)
(7) Commissions receivable from

reinsurers
(8) Total net expenses (6)-(7)



CLAIMS (incl. claims settling expenses)
(9) Gross amounts paid

(10) Amounts recoverable from
(a) reinsurers
(b) others

(11) Net amounts paid (9)-(10)
(12) Insurance fund b/f
(13) Insurance fund c/f



UNDERWRITING RESULT
(14) Profit/(Loss) (3)-(8)-(11) +(12)-(13)











We certify that the above information is true and correct.











Cap 41 - Insurance Companies Ordinance 134

_______________
( )

Director


_______________

( )
Director


___________________________
( )
*Chief Executive/Secretary





Notes: (a) Amounts must be expressed in Hong Kong dollars.

(b) If the insurer's direct business is accounted for on a fund accounting basis, this form is to be completed in lieu of Forms 1 and 1A.
(c) A separate from must be submitted in respect of each of the 8 accounting classes of general business specified in Forms 1 and 1A.


* Delete as necessary.

(Amended 32 of 2000 s. 48)




FORM 4


HONG KONG INSURANCE BUSINESS-REINSURANCE BUSINESS
REVENUE ACCOUNT ON THE FUND ACCOUNTING

BASIS OF ........................ (Name of insurer)


for the period commencing on .................................... and ending on .............................


ACCOUNTING CLASS OF GENERAL BUSINESS: __________________






19_____
Year of Account

(Two year preceding the
period)

19_____
Year of Account

(One Year preceding the period)

19_____
Year of Account

(The period)







All prior Years
of Account

Developments
in

current year
$


Develop
-ments

in current
year

$





Cumulative
developments

$


Develop
-ments

in current
year

$





Cumulative
developments

$





Developments
in current year

$

Total Develop
-ments

in current
year

$

GROSS PREMIUMS
(1) Gross premiums receivable
(2) Retrocession premiums payable



RETAINED PREMIUMS
(3) Premiums net of Retrocession (1)-(2)



UNDERWRITING EXPENSES
(4) Commissions payable to ceding companies
(5) Management expenses
(6) Gross expenses (4)+(5)
(7) Commissions receivable from

retrocessionaires
(8) Total net expenses (6)-(7)



CLAIMS (incl. claims settling expenses)
(9) Gross amounts paid

(10) Amounts recoverable from retrocessionaires
(11) Net amounts paid (9)-(10)
(12) Insurance fund b/f
(13) Insurance fund c/f
UNDERWRITING RESULT
(14) Profit/(Loss) (3)-(8)-(11) +(12)-(13)









We certify that the above information is true and correct.








_______________
( )

Director






______________
( )

Director





______________________
( )
*Chief Executive/Secretary



Notes: (a) Amounts must be expressed in Hong Kong dollars.

(b) If the insurer's reinsurance business is accounted for on a fund accounting basis, this form is to be completed in lieu of Forms 2 and 2A.
(c) Both treaty and facultative reinsurance business must be included.
(d) A separate form must be submitted in respect of each of the first 8 accounting classes of general business specified in Forms 2 and 2A.
(e) In the event that it is impracticable to allocate the treaty reinsurance business to the respective first 8 accounting classes of general business, such



Cap 41 - Insurance Companies Ordinance 135

business may be shown under 2 broad classes, namely, Non-proportional Treaty Reinsurance and Proportional Treaty Reinsurance. However, in such
circumstances the insurer must supply estimates of the gross premiums receivable (i.e. item (1) above) attributable to the treaty reinsurance business
of each of the first 8 accounting classes of general business.


* Delete as necessary.




FORM 5


HONG KONG INSURANCE BUSINESS-STATISTICS OF STATUTORY BUSINESS


(BEING DIRECT BUSINESS) OF ................................................ (Name of insurer)


for the period commencing on .................................. and ending on ............................

A. Motor Vehicle Insurance Business under section 6 of the Motor Vehicles Insurance (Third Party Risks) Ordinance (Cap 272)



No. of vehicles covered at end of period




No. of outstanding

claims at end of period
(All types) THIRD PARTY RISKS COMPREHENSIVE TOTAL


Private

Cars


Public Hire

Vehicles

Other Commercial
Vehicles


Motor
Cycles


Private
Cars

Public Hire
Vehicles

Other Commerical
Vehicles


Motor
Cycles












B. Employees' Compensation Insurance Business under section 40 of the Employees' Compensation Ordinance (Cap 282)


No. of policies in force at end of period No. of outstanding claims at end of a period







C. Local Vessels Insurance Business under section 23D of the Merchant Shipping (Local Vessels) Ordinance (Cap 548) and any regulation made under

section 89 of the Ordinance



No. of policies in force at end of period




No. of local vessels covered by such policies


No. of outstanding claims at end of

period
THIRD PARTY

RISKS


COMPREHENSIVE


TOTAL













We certify that the above information is true and correct.


___________ ___________ ___________________
( ) ( ) ( )
Director Director *Chief Executive/Secretary



Note: This form is to be completed by an insurer authorized to carry on statutory business (being direct business) in Hong Kong.

* Delete as necessary.

(Amended 24 of 2005 s. 55)


[section 6(a)]


FORM 6




Cap 41 - Insurance Companies Ordinance 136

HONG KONG INSURANCE BUSINESS-CLAIMS PAID STATISTICS (GROSS)


OF ....................................... (Name of insurer)


for the period commencing on .................................. and ending on ................................


in respect of Accounting Class of General


Business: ....................................... (All in $'000)


Accident/
Underwriting Year*

Claims Paid in each year of development
(Year) (Year) (Year) (Year) (Year) (Year) (Year) (Year) (Year) (Year) (Year) (Year)

Prior years
(Year)
(Year) -
(Year) - -
(Year) - - -
(Year) - - - -
(Year) - - - - -
(Year) - - - - - -
(Year) - - - - - - -
(Year) - - - - - - - -
(Year) - - - - - - - - -
(Year) - - - - - - - - - -
(Year) - - - - - - - - - - -

TOTAL


We certify that the above information is true and correct.


___________________ ___________________ ___________________
( ) ( ) ( )

Director Director *Chief Executive/Secretary


Notes: (a) Amounts must be expressed in Hong Kong dollars.
(b) A separate form must be submitted in respect of each of the classes of direct business set out in Form 1

(with a separate form for employees' compensation insurance business) and each of the classes of
reinsurance business set out in Form 2.

(c) This form must be completed on a gross basis (i.e. before deduction of any reinsurance).
(d) In compiling claims statistics-

(i) direct insurers must use accident year basis for direct and facultative business and the
underwriting year basis for treaty business;

(ii) insurers transacting only reinsurance business must use the underwriting year basis for both
facultative and treaty business.

* Delete as necessary.
(Replaced 51 of 1999 s. 6(a))


FORM 7


HONG KONG INSURANCE BUSINESS-OUTSTANDING CLAIMS PROVISION


STATISTICS (GROSS) OF ....................................... (Name of insurer)


AS AT .......................................


Accounting Class of General Business: ....................................... (All in $'000)


Accident/ Outstanding Claims Provision at the end of each year of development



Cap 41 - Insurance Companies Ordinance 137

Underwriting Year* (Year) (Year) (Year) (Year) (Year) (Year) (Year) (Year) (Year) (Year) (Year) (Year)
Prior years

(Year)
(Year) -
(Year) - -
(Year) - - -
(Year) - - - -
(Year) - - - - -
(Year) - - - - - -
(Year) - - - - - - -
(Year) - - - - - - - -
(Year) - - - - - - - - -
(Year) - - - - - - - - - -
(Year) - - - - - - - - - - -

TOTAL


We certify that the above information is true and correct.


___________________ ___________________ ___________________
( ) ( ) ( )

Director Director *Chief Executive/Secretary


Notes: (a) Amounts must be expressed in Hong Kong dollars.
(b) A separate form must be submitted in respect of each of the classes of direct business set out in Form 1

(with a separate form for employees' compensation insurance business) and each of the classes of
reinsurance business set out in Form 2.

(c) This form must be completed on a gross basis (i.e. before deduction of any reinsurance).
(d) In compiling claims statistics-

(i) direct insurers must use accident year basis for direct and facultative business and the
underwriting year basis for treaty business;

(ii) insurers transacting only reinsurance business must use the underwriting year basis for both
facultative and treaty business.

(e) References to outstanding claims provision shall include outstanding claims and claims incurred but
not reported.

* Delete as necessary.
(Replaced 51 of 1999 s. 6(a))


FORM 8


HONG KONG INSURANCE BUSINESS-CLAIMS PAID STATISTICS (NET)


OF ....................................... (Name of insurer)


for the period commencing on .................................. and ending on ...............................


in respect of Accounting Class of General


Business: ....................................... (All in $'000)


Accident/

Underwriting Year*
Claims Paid in each year of development

(Year) (Year) (Year) (Year) (Year) (Year) (Year) (Year) (Year) (Year) (Year) (Year)
Prior years

(Year)
(Year) -
(Year) - -
(Year) - - -
(Year) - - - -
(Year) - - - - -



Cap 41 - Insurance Companies Ordinance 138

(Year) - - - - - -
(Year) - - - - - - -
(Year) - - - - - - - -
(Year) - - - - - - - - -
(Year) - - - - - - - - - -
(Year) - - - - - - - - - - -

TOTAL


We certify that the above information is true and correct.


___________________ ___________________ ___________________
( ) ( ) ( )

Director Director *Chief Executive/Secretary


Notes: (a) Amounts must be expressed in Hong Kong dollars.
(b) A separate form must be submitted in respect of each of the classes of direct business set out in Form 1

(with a separate form for employees' compensation insurance business) and each of the classes of
reinsurance business set out in Form 2.

(c) This form must be completed on a net basis (i.e. net of reinsurances).
(d) In compiling claims statistics-

(i) direct insurers must use accident year basis for direct and facultative business and the
underwriting year basis for treaty business;

(ii) insurers transacting only reinsurance business must use the underwriting year basis for both
facultative and treaty business.

* Delete as necessary.
(Replaced 51 of 1999 s. 6(a))


FORM 9


HONG KONG INSURANCE BUSINESS-OUTSTANDING CLAIMS PROVISION


STATISTICS (NET) OF ....................................... (Name of insurer)


AS AT .......................................


Accounting Class of General Business: ....................................... (All in $'000)


Accident/

Underwriting Year*
Outstanding Claims Provision at the end of each year of development

(Year) (Year) (Year) (Year) (Year) (Year) (Year) (Year) (Year) (Year) (Year) (Year)
Prior years

(Year)
(Year) -
(Year) - -
(Year) - - -
(Year) - - - -
(Year) - - - - -
(Year) - - - - - -
(Year) - - - - - - -
(Year) - - - - - - - -
(Year) - - - - - - - - -
(Year) - - - - - - - - - -
(Year) - - - - - - - - - - -

TOTAL


We certify that the above information is true and correct.


___________________ ___________________ ___________________
( ) ( ) ( )



Cap 41 - Insurance Companies Ordinance 139

Director Director *Chief Executive/Secretary


Notes: (a) Amounts must be expressed in Hong Kong dollars.
(b) A separate form must be submitted in respect of each of the classes of direct business set out in Form 1

(with a separate form for employees' compensation insurance business) and each of the classes of
reinsurance business set out in Form 2.

(c) This form must be completed on a net basis (i.e. net of reinsurances).
(d) In compiling claims statistics-

(i) direct insurers must use accident year basis for direct and facultative business and the
underwriting year basis for treaty business;

(ii) insurers transacting only reinsurance business must use the underwriting year basis for both
facultative and treaty business.

(e) References to outstanding claims provision shall include outstanding claims and claims incurred but
not reported.

* Delete as necessary.
(Replaced 51 of 1999 s. 6(a))


41. (1) Subject to subparagraphs (5) and (6), an insurer who is authorized to carry on long term business shall, in
relation to the Hong Kong long term insurance business carried on by it, submit to the Insurance Authority-

(a) if its financial year ends on 31 December, in respect of the financial year ending on 31 December
2003; or

(b) in any other case, in respect of the first financial year ending after 31 December 2003,
and in respect of every successive financial year-

(c) the revenue account, together with the supplementary information, specified in subparagraph (2);
(d) the valuation summary specified in subparagraph (3); and
(e) the valuation balance sheet, together with the supplementary information, specified in subparagraph

(4).
(2) The revenue account referred to in subparagraph (1)(c) is, in respect of each class of business specified in

Part 2 of the First Schedule, a revenue account, in Form HKL1, and the supplementary information referred to in that
subparagraph is-

(a) the date up to which the valuation referred to in section 18(1)(a) or 32(1)(a) of this Ordinance ("the
valuation") is made;

(b) the principles on which the valuation and distribution of profits among the policy holders are made,
and whether those principles were determined by the instrument constituting the insurer or by the
insurer's regulations or bylaws or otherwise;

(c) the table or tables of mortality used in the valuation;
(d) the rate or rates of interest assumed in the calculations;
(e) the proportion of the annual premium income reserved as a provision for future expenses and profit or,

if no such provision is made, a statement as to what provision is made;
(f) the period during which a policy must be in force in order to entitle the policy holders to share in the

profits; and
(g) the results of the valuation, in respect of the Hong Kong long term insurance business carried on by the

insurer, showing-
(i) the total amount of profit made by the insurer;
(ii) the amount of profit divided among the policy holders, and the number and amount of the

policies which participated; and
(iii) the amount of profit brought forward from the previous valuation, the amount of profit allotted to

policy holders and shareholders.
(3) The valuation summary referred to in subparagraph (1)(d) is a valuation summary, as at the date up to

which the valuation is made, in Form HKL2.
(4) The valuation balance sheet referred to in subparagraph (1)(e) is a valuation balance sheet, as at the date up

to which the valuation is made, in Form HKL3, and the supplementary information referred to in that subparagraph is
particulars of the average rate of interest yielded by the assets (whether invested or uninvested) constituting the long
term business fund of the insurer, or that part of the fund, which is attributable to the Hong Kong long term insurance
business carried on by it ("Hong Kong fund"), calculated on the mean Hong Kong fund of the financial year.



Cap 41 - Insurance Companies Ordinance 140

(5) If, during a financial year, an insurer authorized to carry on long term business does not carry on Hong
Kong long term insurance business in respect of which information would have had to be submitted under
subparagraph (1) had the insurer carried on such business, the insurer shall submit a statement to that effect.

(6) A statement required to be submitted under subparagraph (5) shall be contained-
(a) in Form HKL1;
(b) in Form HKL2; and
(c) in Form HKL3.




FORM HKL1


HONG KONG LONG TERM INSURANCE BUSINESS - REVENUE ACCOUNT
OF ................................................. (Name of insurer) in respect of class(es) *

..................... for the period commencing on ............... and ending on ...............


HK$

HK$

Amount of Fund(s)# as at the Beginning of the Period .................... XX Gross Claims Payable:

Gross Premiums Receivable:


Direct

Reinsurance
Accepted

Recoverable
from Reinsurers



Reinsurance Reinsurance On Death . . . . . . (. . .)
Direct Accepted Ceded On Surrender . . . . . . (. . .)

Regular Premiums . . . . . . (. . .) On Maturity . . . . . . (. . .)
Single Premiums . . . . . . (. . .) On Other Events . . . . . . (. . .)
Transferred Premiums . . .

______
. . .

. . .
__________

. . .

(. . .)
_________

(. . .)


_____
. . .

_________
. . .

_________
(. . .)





Net Premiums Receivable .....................................................................................

Interest or Income from Long Term Business Assets

Attributable to Hong Kong Long Term Insurance Business .............
Commissions Receivable ......................................................................................
Other Receipts (accounts to be specified) ........................................................

Transfer from Other Long Term Insurance Class(es)* ...................................
Transfer from Profit and Loss Account .............................................................

XX



XX
XX
XX


XX
XX

________

__

XX
====

Net Claims Payable ...................................................................

Dividends to Policy Holders ...................................................
Commissions Payable ..................................................................
Other Payments (accounts to be specified) ............................

Transfer to Other Long Term Insurance Class(es)* .............
Transfer to Profit and Loss Account .......................................
Amount of Fund(s)# as at the End of the Period .................

XX


XX
XX
XX


XX
XX
XX

________

_

XX
====



We certify that the above information is true and correct.



______________________ _____________________ ______________________
( ) ( ) ( )

Director Director § Chief Executive/Secretary

* The classes referred to correspond to the classes of Long Term Business set out in Part 2 of the First Schedule to

the Insurance Companies Ordinance (Cap 41).
# "Fund" means the long term business fund, or that part of the fund, which is attributable to the Hong Kong long

term insurance business carried on by the insurer.
§ Delete as necessary.



FORM HKL2


HONG KONG LONG TERM INSURANCE BUSINESS - VALUATION SUMMARY
OF ............................................................ (Name of insurer) for the period

commencing on ............................ and ending on ............................


1 2 3 4 5 6 7 8



Cap 41 - Insurance Companies Ordinance 141




Class




Type of business


Number

of
contracts

Amount of sums
assured or annuities
per annum including
vested reversionary

bonuses

Amount of
yearly premiums

Value of sums
assured or annuities
per annum including
vested reversionary

bonuses


Value of
yearly

net
premiums


Amount
of net

liability


Bases

of
valuation


Office

premiums


Net

premiums


A

(I) Life assurance other than

annuities
(a) With participation in

profits:
Whole life ..................
Endowment ...............
Term ............................
Other types (to be

specified) .................

HK$ HK$ HK$ HK$ HK$ HK$

Total assurances with
profits .............



(b) Without participation in
profits:
Whole life ..................
Endowment ...............
Term ............................
Other types (to be

specified) .................



Total assurances without
profits .......



Total assurances ............... ╳╳
(II) Annuities

(a) With participation in
profits ..................

(b) Without participation in
profits ......................



Total annuities ................. ╳╳
Total of Class A ╳╳

B Marriage and birth ╳╳ ╳╳ ╳╳ ╳╳
C Linked long term:

Whole life ...............................
Endowment .............................
Annuity ...................................
Others .......................................



Total of Class C ╳╳
D Permanent health ╳╳ ╳╳ ╳╳ ╳╳
E Tontines ╳╳ ╳╳ ╳╳ ╳╳
F Capital redemption ╳╳ ╳╳ ╳╳ ╳╳
G Retirement scheme management

category I:
(i) MPF subfunds
(ii) other subfunds


╳╳
╳╳
╳╳


╳╳
╳╳
╳╳


╳╳
╳╳
╳╳


╳╳
╳╳
╳╳



Total of Class G* ╳╳ ╳╳ ╳╳ ╳╳ ╳╳
H Retirement scheme management

category II:
(i) MPF subfunds
(ii) other subfunds


╳╳
╳╳
╳╳


╳╳
╳╳
╳╳


╳╳
╳╳
╳╳


╳╳
╳╳
╳╳



Total of Class H* ╳╳ ╳╳ ╳╳ ╳╳ ╳╳
Total of Classes G & H* ╳╳ ╳╳ ╳╳ ╳╳ ╳╳

I Retirement scheme management
category III



Other reserves (to be specified) ╳╳ ╳╳ ╳╳ ╳╳
TOTALS ╳╳



We certify that the above information is true and correct.



______________________ _____________________ ______________________
( ) ( ) ( )

Director Director # Chief Executive/Secretary

Notes:
1. The classes referred to correspond to the classes of Long Term Business set out in Part 2 of the First Schedule to

the Insurance Companies Ordinance (Cap 41).
2. Within each class of long term insurance business, the following are to be shown-

(i) direct business and reinsurances accepted;
(ii) reinsurances ceded; and
(iii) net retained business.



Cap 41 - Insurance Companies Ordinance 142

3. The entry under column 8 should either refer to details given as supplementary information or should state the
mortality tables/statistical tables and rates of interest employed, as appropriate.

4. With regard to business within class A-
(i) separate summaries similar in form to the above must be furnished in respect of policies valued by different

mortality tables, or at different rates of interest; and
(ii) contracts the nature of which or the method of valuation of which makes it impossible or inappropriate to

give the information required in columns 4, 5 and 6 of any valuation summary are to be shown separately
and the reason stated.


* Eliminate duplicate in total line.
# Delete as necessary.



FORM HKL3


HONG KONG LONG TERM INSURANCE BUSINESS - VALUATION BALANCE
SHEET OF ............................................ (Name of insurer) as at ............................





Net liability under Hong Kong Long Term

Insurance Business
Surplus .....................................................


HK$



________
$
========




Fund(s)* (as per Balance Sheet) ...........

Deficiency .................................................


HK$




________
$
========


We certify that the above information is true and correct.




______________________ _____________________ ______________________
( ) ( ) ( )

Director Director # Chief Executive/Secretary

* "Fund" means the long term business fund, or that part of the fund, which is attributable to the Hong Kong long

term insurance business carried on by the insurer.
# Delete as necessary.

(Added L.N. 3 of 2003)
(Part 8 added L.N. 391 of 1990)



PART 9 [sections 20(1A), 25A, 25B & 50C]

(Amended 51 of 1999 s. 6(b))


STATEMENT OF ASSETS AND LIABILITIES PURSUANT TO
#SECTION 25A AS AT ....................................................... (financial year end date)

#SECTION 25B AS AT ...................... (date specified in notice issued under section 25B)


Name of Insurer ........................................................................................................

A. Assets maintained in Hong Kong

Items $
Land and building * 01



Cap 41 - Insurance Companies Ordinance 143


Fixed
interest
securities *

Issued by, or guaranteed by, any government or public authority 02
Other fixed interest

securities except those in
associated or subsidiary
companies

listed


03

unlisted


04

Variable
interest
securities *

Issued by, or guaranteed by, any government or public authority 05
Others 06

Other
variable
interest
invest-
ments *

Equity shares except those
in associated or subsidiary
companies

listed


07

unlisted


08

Holdings in unit trusts 09




Invest-
ment in
associated or
subsidiary
com-
panies *





Insurers

Value of any shares held listed 10
unlisted 11
Debts (other than debts which must

be included in line 20 or 21 to 28)

secured 12
partly

secured 13


unsecured 14





Non-insurers

Value of any shares held listed 15
unlisted 16
Debts (other than debts which must

be included in line 20 or 21 to 28)

secured 17
partly

secured 18


unsecured 19
Loans secured by contracts of insurance issued by the insurer 20















Insurance
debts









Due from associated or
subsidiary companies

Premium income in respect of direct insurance but
not yet paid to the insurer less commission
payable thereon

21

Amounts due from ceding insurers and
intermediaries under reinsurance contracts
accepted

22

Amounts due from reinsurers and intermediaries
under reinsurance contracts ceded (excluding
recoveries in respect of outstanding claims)

23

Recoveries due by way of salvage or from other
insurers in respect of claims paid other than
recoveries under reinsurance contracts ceded

24







Due from others


Premium income in respect of direct insurance but
not yet paid to the insurer less commission
payable thereon

25

Amounts due from ceding insurers and
intermediaries under reinsurance contracts
accepted

26

Amounts due from reinsurers and intermediaries
under reinsurance contracts ceded (excluding
recoveries in respect of outstanding claims)

27

Recoveries due by way of salvage or from other
insurers in respect of claims paid other than
recoveries under reinsurance contracts ceded

28

Debts not Fully secured 29



Cap 41 - Insurance Companies Ordinance 144

previously
covered *

Partly secured 30
Unsecured 31
Deposits and

current
account *

With banks Fixed term deposits 32
Current accounts 33
With restricted licence banks

and deposit-taking
companies

Fixed term 34

At call 35

Cash 36
Computer equipment, office machinery, furniture, motor vehicles and other equipment 37
Other assets, to be separately specified if material 38
Total 39
Letter of credit or other commitment from banks licensed in Hong Kong 40

B. Liabilities and relevant amount pertaining to Hong Kong insurance business

Items $



↑ Gross
insurance
liabilities (before
deduction of
amount reinsured)

Unearned premiums 41
Additional amount for unexpired risks 42


Claims outstanding
Reported claims 43

Claims incurred but not
reported 44



Fund 45
Total liabilities (line 41 + 42 + 43 + 44 + 45) 46
Deduct: Relief permitted under section 25A(8) 47
Total liabilities after deduction of line 47 48
40% of line 48 49




Net insurance
liabilities (after
deduction of
amount reinsured)

Unearned premiums 50
Additional amount for unexpired risks 51


Claims outstanding
Reported claims 52

Claims incurred but not
reported 53



Fund 54
Total liabilities (line 50 + 51 + 52 + 53 + 54) 55
Deduct: Relief permitted under section 25A(8) 56
Total liabilities after deduction of line 56 57
80% of line 57 58
The greater of line 49 or line 58 59
Relevant amount 60
Total liabilities (line 59 + 60) 61


We certify that the above information is true and correct.



______________________ _____________________ ______________________
( ) ( ) ( )

Director Director Chief Executive/Secretary #

Note: Amounts must be expressed in Hong Kong dollars.
* Supply particulars of assets in a separate sheet.
# Delete as necessary.
↑ Enter N/A in line 41 to line 49 if section 25A(3)(b) is not applicable.

(Part 9 added 26 of 1994 s. 7)



Cap 41 - Insurance Companies Ordinance 145

___________________________________________________________________
Notes:
Section 6 of the Insurance Companies (Amendment) Ordinance 1999 (51 of 1999) replaced Forms 6, 7, 8 and 9.

※ The application provision contained in section 2 of the Insurance Companies Ordinance (Amendment of

Part 1 of Third Schedule) Regulation 2003 (L.N. 2 of 2003) reads as follows:


"2. Application


This Regulation applies to an insurer within the meaning of the Insurance Companies
Ordinance (Cap 41) in respect of its financial year ending on or after 31 December 2003 and every
successive financial year.".


Schedule: 4 PROPOSED APPOINTMENT OF CONTROLLER

WITHIN THE MEANING OF SECTION 13A(1) OR
AUTHORIZED REPRESENTATIVE UNDER SECTION
50B

L.N. 163 of 2013 03/03/2014



[sections 13A(2)(a) & 50B]

1. Application of Fourth Schedule


This Schedule sets out-

(a) the information to be furnished by an insurer to the Insurance Authority under section 13A(2)(a) of this
Ordinance in respect of the proposed appointment of a person as a controller (within the meaning of
section 13A(1) of this Ordinance) of the insurer; and

(b) the information to be furnished by Lloyd's to the Insurance Authority under section 50B(3) of this
Ordinance in respect of the proposed appointment of a person as an authorized representative of
Lloyd's.

(Replaced 51 of 1999 s. 7)


2. Particulars of proposed controller or
proposed authorized representative


(a) Any particulars furnished by an insurer to the Insurance Authority pursuant to section 13A(2)(a) of this

Ordinance in respect of a person proposed to be appointed as a controller (within the meaning of
section 13A(1) of this Ordinance) shall contain-
(i) in the case of an individual, the particulars specified in Form A in this Schedule;
(ii) in the case of a body corporate, the particulars specified in Form B in this Schedule; and
(iii) in the case of a partnership-

(A) the particulars specified in Form A in this Schedule in respect of each partner who is an
individual;

(B) the particulars specified in Form B in this Schedule in respect of each partner which is a
body corporate.

(b) Any particulars furnished by Lloyd's to the Insurance Authority pursuant to section 50B(3) of this
Ordinance in respect of a person proposed to be appointed as an authorized representative of Lloyd's
shall contain the particulars specified in Form A in this Schedule.

(Replaced 51 of 1999 s. 7)



FORM A [paragraph 2, 4th Schedule]


PARTICULARS REQUIRED IN RESPECT OF INDIVIDUALS WHO ARE
PROPOSED TO BE APPOINTED AS CONTROLLERS WITHIN THE

MEANING OF SECTION 13A(1) OR AUTHORIZED
REPRESENTATIVE UNDER SECTION 50B



Cap 41 - Insurance Companies Ordinance 146


Name of Proposer* ................................................................................................

The following are particulars of-

#(a)+ ..............................................................................................................
#(b)++ ......................................................., of

which+ .................................................................................................... is a partner.


1. Family name Other names
....................................................... .............................................................
Any other name(s) by which he has been known or is known
........................................................................................................................


2. Private address.

3. Date of birth.

Place of birth (including town or city).

4. Nationality, including a statement as to whether it was acquired by birth or naturalization.

5. Qualifications and experience, including those relating to insurance and allied matters.


6. Present occupation or employment and occupations and employment during the last 10 years, including the

name of the employer, the nature of the business, the position held and relevant dates.

7. Has he at any time been convicted of any criminal offence (other than an offence committed when he was of or

under the age of 16 years unless the same was committed within the last 10 years) by any court, including a
military tribunal, in Hong Kong or elsewhere? If so, give full particulars of the court by which he was convicted,
the offence and the penalty imposed and the date of the conviction.


8. Has he in the last 10 years, in Hong Kong or elsewhere, been censured, disciplined or publicly criticized by any

professional body to which he belongs or belonged or been dismissed from any office or employment or refused
entry to any profession or occupation? If so, give full particulars.


9. Has he at any time been adjudicated bankrupt by a court in Hong Kong or elsewhere? If so, give full particulars.

10. Has he at any time in the last 10 years failed to satisfy any debt adjudged due and payable by him as a judgment-

debtor under an order of a court in Hong Kong or elsewhere? If so, give full particulars.

11. Has he, in connection with the formation or management of any body corporate or insurer, been adjudged by a

court in Hong Kong or elsewhere civilly liable for any fraud, misfeasance or other misconduct by him towards
such a body or insurer or towards any members thereof? If so, give full particulars.


12. Has any body corporate or insurer with which he was associated as director or controller (within the meaning of

section 9 of this Ordinance) in the last 10 years, in Hong Kong or elsewhere, been compulsorily wound up or
made any compromise or arrangement with its creditors or ceased trading in circumstances where its creditors
did not receive or have not yet received full settlement of their claims, either whilst he was associated with it or
within one year after he ceased to be associated with it? If so, give full particulars.
(Note: In relation to a body corporate which is not an insurer, "controller" (控權人) is to be construed as a

reference to a person who would, if he were a company, be a holding company of that body in
accordance with section 13 of the Companies Ordinance (Cap 622)).


13. Of what bodies corporate or insurers-

(a) is he now a director or controller (within the meaning of section 9 of this Ordinance)?
(b) has he been a director or controller (within the meaning of section 9 of this Ordinance)?



Cap 41 - Insurance Companies Ordinance 147


14. Has he any other occupation other than that disclosed at items 6 and 13 above? If so, give full details.

15. In carrying out his duties, will he be acting on the directions or instructions of any other person? If so, give full

particulars.
I certify that the above information is complete and correct to the best of my knowledge and belief.


Date ......................................



Signed ...............................................................
(individual named in paragraph 1 above.)


I certify that+ .................................................................................................. has supplied the above information

and that in respect of* .................................................... he is-
#(a) proposed to be appointed as a controller within the meaning of section 13A(1) of this Ordinance;
#(b) a partner in ++ ....................................................................................... which is proposed to be

appointed as a controller within the meaning of section 13A(1) of this Ordinance;
#(c) proposed to be appointed as an authorized representative of Lloyd's under section 50B of this

Ordinance.


Date ..............................................


Signed .........................................................
(Director/Secretary# of the Insurer)/

(Chairman of Lloyd's)#
* Insert name of Insurer or Lloyd's.
+ Insert name of individual to whom particulars relate.
++ Insert name of partnership.
# Delete as necessary.

(Replaced 51 of 1999 s. 7. Amended 32 of 2000 s. 48; 28 of 2012 ss. 912 & 920)



FORM B [paragraph 2, 4th Schedule]


PARTICULARS REQUIRED IN RESPECT OF BODIES CORPORATE
WHICH ARE PROPOSED TO BE APPOINTED AS CONTROLLERS

WITHIN THE MEANING OF SECTION 13A(1)


Name of Insurer* ....................................................................................................
The following are particulars of a body corporate which is proposed to be appointed as a controller within the

meaning of section 13A(1) of this Ordinance, or which is a partner in a partnership which is proposed to be appointed
as such a controller, of the above-named Insurer.

1. Name and address of body corporate and address of registered office (where different).
2. Principal business activity.
3. Address of principal place of business established in Hong Kong.
4. Date and place of incorporation.
5. Registered number (if any).
6. Full name and residential address of every director and every controller within the meaning of section 9 of

this Ordinance.
(Note: In relation to a body corporate which is not an insurer, "controller" (控權人) is to be construed as a

reference to a person who would, if he were a company, be a holding company of that body in
accordance with section 13 of the Companies Ordinance (Cap 622)).

7. Name and address of main bank.
8. Accounts for the last 3 completed financial years and particulars of any reports, resolutions and other



Cap 41 - Insurance Companies Ordinance 148

circulars issued to shareholders during the last 4 years.
9. Name, place of incorporation and principal activities of all subsidiary companies and of any holding

company or ultimate holding company.
(Note: Shares held by a nominee are to be treated as shares held by his principal).

+10. In the case of a non-Hong Kong company as defined by section 2(1) of the Companies Ordinance (Cap
622)-

(a) name(s) and address(es) of its authorized representative(s) as defined by section 774 of the
Companies Ordinance (Cap 622);

(b) date of the certificate of registration issued under Part XI of the Companies Ordinance (Cap 32)
as in force from time to time before the commencement date of section 2 of Schedule 9 to the
Companies Ordinance (Cap 622) or under section 777 of the Companies Ordinance (Cap 622).

11. Has any body corporate or insurer with which the above-named body corporate was associated as director or
controller (within the meaning of section 9 of this Ordinance) in the last 10 years, in Hong Kong or
elsewhere, been compulsorily wound up or made any compromise or arrangement with its creditors or
ceased trading in circumstances where its creditors did not receive or have not yet received full settlement of
their claims, either whilst the above-named body corporate was associated with it or within one year after
the above-named body corporate ceased to be associated with it? If so, give full particulars.
(Note: In relation to a body corporate which is not an insurer, "controller" (控權人) is to be construed as a

reference to a person who would, if he were a company, be a holding company of that body in
accordance with section 13 of the Companies Ordinance (Cap 622)).

I certify that the above information is complete and correct to the best of my knowledge and belief and I certify
that this notice is served with the knowledge and consent of the above-named body corporate.
Date ...................................................

Signed .........................................
(Director/Secretary +

of body corporate.)


+I certify that the above particulars have been supplied by the above-named body corporate and that in respect
of* .....................................................................................
.......................................................................................................................................

+(a) the above-named body corporate is proposed to be appointed as a controller within the meaning of
section 13A(1) of this Ordinance.

+(b) #............................................................................................ of which the above-named body corporate
is a partner is proposed to be appointed as a controller within the meaning of section 13A(1) of this
Ordinance.

Date ...................................................
Signed ..............................................
(Director/Secretary + of the insurer.)


* Insert name of Insurer.
+ Delete as necessary.
# Insert name of partnership.

(Amended 32 of 2000 s. 48; 28 of 2012 ss. 912 & 920)
(Fourth Schedule added 44 of 1990 s. 10)


Schedule: 5 PERSON PROPOSING TO BECOME CONTROLLER

WITHIN THE MEANING OF SECTION 13B(1)
L.N. 163 of 2013 03/03/2014



[section 13B(2)(a)]


1. Application of Fifth Schedule


This Schedule sets out the information to be furnished to the Insurance Authority by a person proposing to
become a controller (within the meaning of section 13B(1) of this Ordinance) of an insurer.



Cap 41 - Insurance Companies Ordinance 149


2. Particulars of proposed controller


Any particulars furnished by a person to the Insurance Authority pursuant to section 13B(2)(a) of this Ordinance
shall contain-

(a) in the case of an individual, the particulars in Form A in this Schedule;
(b) in the case of a body corporate, the particulars in Form B in this Schedule; and
(c) in the case of a partnership-

(i) the particulars in Form A in this Schedule in respect of each partner who is an individual;
(ii) the particulars in Form B in this Schedule in respect of each partner which is a body corporate.


FORM A [paragraph 2, 5th Schedule]


PARTICULARS REQUIRED IN RESPECT OF INDIVIDUALS

WHO ARE PROPOSING TO BECOME CONTROLLERS
WITHIN THE MEANING OF SECTION 13B(1)


Name of Insurer* ............................................................................................................
The following are particulars of-

#(a) + ............................................................................................................
#(b) ++....................................................., of which + ..................................

............................................................................... is a partner.
1. Family name Other names

........................................................ ...................................................
Any other name(s) by which he has been known or is known
...........................................................................................................................

2. Private address.
3. Date of birth.

Place of birth (including town or city).
4. Nationality, including a statement as to whether it was acquired by birth or naturalization.
5. Qualifications and experience, including those relating to insurance and allied matters.
6. Present occupation or employment and occupations and employment during the last 10 years, including the

name of the employer, the nature of the business, the position held and relevant dates.
7. Has he at any time been convicted of any criminal offence (other than an offence committed when he was of or

under the age of 16 years unless the same was committed within the last 10 years) by any court, including a
military tribunal, in Hong Kong or elsewhere? If so, give full particulars of the court by which he was convicted,
the offence and the penalty imposed and the date of the conviction.

8. Has he in the last 10 years, in Hong Kong or elsewhere, been censured, disciplined or publicly criticized by any
professional body to which he belongs or belonged or been dismissed from any office or employment or refused
entry to any profession or occupation? If so, give full particulars.

9. Has he at any time been adjudicated bankrupt by a court in Hong Kong or elsewhere? If so, give full particulars.
10. Has he at any time in the last 10 years failed to satisfy any debt adjudged due and payable by him as a judgment-

debtor under an order of a court in Hong Kong or elsewhere? If so, give full particulars.
11. Has he, in connection with the formation or management of any body corporate or insurer, been adjudged by a

court in Hong Kong or elsewhere civilly liable for any fraud, misfeasance or other misconduct by him towards
such a body or insurer or towards any members thereof? If so, give full particulars.

12. Has any body corporate or insurer with which he was associated as director or controller (within the meaning of
section 9 of this Ordinance) in the last 10 years, in Hong Kong or elsewhere, been compulsorily wound up or
made any compromise or arrangement with its creditors or ceased trading in circumstances where its creditors
did not receive or have not yet received full settlement of their claims, either whilst he was associated with it or
within one year after he ceased to be associated with it? If so, give full particulars.
(Note: In relation to a body corporate which is not an insurer "controller" (控權人) is to be construed as a

reference to a person who would, if he were a company, be a holding company of that body in
accordance with section 13 of the Companies Ordinance (Cap 622)).



Cap 41 - Insurance Companies Ordinance 150

13. Of what bodies corporate or insurers-
(a) is he now a director or controller (within the meaning of section 9 of this Ordinance)?
(b) has he been a director or controller (within the meaning of section 9 of this Ordinance)?

14. Has he any other occupation other than that disclosed at items 6 and 13 above. If so, give full details.
15. In carrying out his duties will he be acting on the directions or instructions of any other person? If so, give full

particulars.


I certify that-
(a) the above information is complete and correct to the best of my knowledge and belief; and
(b) in respect of* .................................. I am-

#(i) proposing to become a controller within the meaning of section 13B(1) of this Ordinance;
#(ii) a partner in ++.................................................which is proposing to become a controller within

the meaning of section 13B(1) of this Ordinance.


Date ...........................................
Signed .....................................................

(individual named in
paragraph 1 above.)


* Insert name of Insurer.
+ Insert name of individual to whom particulars relate.
++ Insert name of partnership.
# Delete as necessary.

(Amended 28 of 2012 ss. 912 & 920)



FORM B [paragraph 2,

5th Schedule]


PARTICULARS REQUIRED IN RESPECT OF BODIES CORPORATE
WHICH ARE PROPOSING TO BECOME CONTROLLERS

WITHIN THE MEANING OF SECTION 13b(1)


Name of Insurer* ....................................................................................................

The following are particulars of a body corporate which is proposing to become a controller within the meaning

of section 13B(1) of this Ordinance, or which is a partner in a partnership which is proposing to be become such a
controller, of the above-named Insurer.


1. Name and address of body corporate and address of registered office (where different).
2. Principal business activity.
3. Address of principal place of business established in Hong Kong.
4. Date and place of incorporation.
5. Registered number (if any).
6. Full name and residential address of every director and every controller within the meaning of section 9 of

this Ordinance.
(Note: In relation to a body corporate which is not an insurer, "controller" (控權人) is to be construed as a

reference to a person who would, if he were a company, be a holding company of that body in
accordance with section 13 of the Companies Ordinance (Cap 622)).

7. Name and address of main bank.
8. Accounts for the last 3 completed financial years and particulars of any reports, resolutions and other

circulars issued to shareholders during the last 4 years.
9. Name, place of incorporation and principal activities of all subsidiary companies and of any holding

company or ultimate holding company.



Cap 41 - Insurance Companies Ordinance 151

(Note: Shares held by a nominee are to be treated as shares held by his principal).
+10. In the case of a non-Hong Kong company as defined by section 2(1) of the Companies Ordinance (Cap

622)-
(a) name(s) and address(es) of its authorized representative(s) as defined by section 774 of the

Companies Ordinance (Cap 622);
(b) date of the certificate of registration issued under Part XI of the Companies Ordinance (Cap 32)

as in force from time to time before the commencement date of section 2 of Schedule 9 to the
Companies Ordinance (Cap 622) or under section 777 of the Companies Ordinance (Cap 622).

11. Has any body corporate or insurer with which the above-named body corporate was associated as director or
controller (within the meaning of section 9 of this Ordinance) in the last 10 years, in Hong Kong or
elsewhere, been compulsorily wound up or made any compromise arrangement with its creditors or ceased
trading in circumstances where its creditors did not receive or have not yet received full settlement of their
claims, either whilst the above-named body corporate was associated with it or within one year after the
above-named body corporate ceased to be associated with it? If so, give full particulars.
(Note: In relation to a body corporate which is not an insurer, "controller" (控權人) is to be construed as a

reference to a person who would, if he were a company, be a holding company of that body in
accordance with section 13 of the Companies Ordinance (Cap 622)).

I certify that-
(a) the above information is complete and correct to the best of my knowledge and belief;
(b) in respect of * .................................................................................-

+(i) the above-named body corporate is proposing to become a controller within the meaning of
section 13B(1) of this Ordinance;

+(ii) ++...................................................................................... of which the above-named body
corporate is a partner is proposing to become a controller within the meaning of section
13B(1) of this Ordinance; and

(c) this notice is served with the knowledge and consent of the above-named body corporate.


Date ..........................................
Signed .................................................

(Director/Secretary+
of body corporate.)


* Insert name of Insurer.
+ Delete as necessary.
++ Insert name of partnership.


(Amended 28 of 2012 ss. 912 & 920)
(Fifth Schedule added 44 of 1990 s. 10)


Schedule: 6 PERSON WHO HAS BECOME CONTROLLER OF

INSURER IN CONTRAVENTION OF SECTION 13B(2)
L.N. 163 of 2013 03/03/2014



[section 13B(3)]


1. Application of Sixth Schedule


This Schedule sets out the information to be furnished to the Insurance Authority by a controller (within the
meaning of section 13B(1) of this Ordinance) of an insurer to whom section 13B(3) of this Ordinance applies.

2. Particulars of controller


Any particulars furnished by a controller within the meaning of section 13B(1) of this Ordinance of an insurer
pursuant to section 13B(3) of this Ordinance shall contain-

(a) in the case of an individual, the particulars in Form A in this Schedule;
(b) in the case of a body corporate, the particulars in Form B in this Schedule; and



Cap 41 - Insurance Companies Ordinance 152

(c) in the case of a partnership-
(i) the particulars in Form A in this Schedule in respect of each partner who is an individual;
(ii) the particulars in Form B in this Schedule in respect of each partner which is a body corporate.


FORM A [paragraph 2,

6th Schedule]


PARTICULARS REQUIRED IN RESPECT OF INDIVIDUALS WHO
HAVE BECOME CONTROLLERS IN CONTRAVENTION

OF SECTION 13B(2)


Name of Insurer* ............................................................................................................
The following are particulars of-

#(a) + ..............................................................................................................
#(b) ++ ..........................................................................., of which + ..............

.................................................................................................is a partner, which became a controller
within the meaning of section 13B(1) of this Ordinance
on ............................................................................. (date).

1. Family name Other names
.................................................. ....................................................
Any other name(s) by which he has been known or is known
...............................................................................................................................

2. Private address.
3. Date of birth.

Place of birth (including town or city).
4. Nationality, including a statement as to whether it was acquired by birth or naturalization.
5. Qualifications and experience, including those relating to insurance and allied matters.
6. Present occupation or employment and occupations and employment during the last 10 years, including the

name of the employer, the nature of the business, the position held and relevant dates.
7. Have you at any time been convicted of any criminal offence (other than an offence committed when you were

of or under the age of 16 years unless the same was committed within the last 10 years) by any court, including a
military tribunal, in Hong Kong or elsewhere? If so, give full particulars of the court by which you were
convicted, the offence and the penalty imposed and the date of the conviction.

8. Have you in the last 10 years, in Hong Kong or elsewhere, been censured, disciplined or publicly criticized by
any professional body to which you belong or belonged or been dismissed from any office or employment or
refused entry to any profession or occupation? If so, give full particulars.

9. Have you at any time been adjudicated bankrupt by a court in Hong Kong or elsewhere? If so, give full
particulars.

10. Have you at any time in the last 10 years failed to satisfy any debt adjudged due and payable by you as a
judgment-debtor under an order of a court in Hong Kong or elsewhere? If so, give full particulars.

11. Have you, in connection with the formation or management of any body corporate or insurer, been adjudged by
a court in Hong Kong or elsewhere civilly liable for any fraud, misfeasance or other misconduct by you towards
such a body or insurer or towards any members thereof? If so, give full particulars.

12. Has any body corporate or insurer with which you were associated as director or controller (within the meaning
of section 9 of this Ordinance) in the last 10 years, in Hong Kong or elsewhere, been compulsorily wound up or
made any compromise or arrangement with its creditors or ceased trading in circumstances where its creditors
did not receive or have not yet received full settlement of their claims, either whilst you were associated with it
or within one year after you ceased to be associated with it? If so, give full particulars.
(Note: In relation to a body corporate which is not an insurer, "controller" (控權人) is to be construed as a

reference to a person who would, if he were a company, be a holding company of that body in
accordance with section 13 of the Companies Ordinance (Cap 622)).

13. Of what bodies corporate or insurers-
(a) are you now a director or controller within the meaning of section 9 of this Ordinance?
(b) have you been a director or controller within the meaning of section 9 of this Ordinance?

14. Have you any other occupation other than that disclosed at items 6 and 13 above. If so, give full details.



Cap 41 - Insurance Companies Ordinance 153

15. Give particulars of the circumstances (by reference to section 13B(1) of this Ordinance) by virtue of which you
became a controller within the meaning of section 13B(1) of this Ordinance.

16. In carrying out your duties will you be acting on the directions or instructions of any other person? If so, give
full particulars.
I certify that the above information is complete and correct to the best of my knowledge and belief.


Date ...................................................


Signed ........................................................
(individual named in
paragraph 1 above.)


* Insert name of Insurer.
+ Insert name of individual to whom particulars relate.
++ Insert name of partnership.
# Delete as necessary.

(Amended 28 of 2012 ss. 912 & 920)
____________


FORM B [paragraph 2,

6th Schedule]


PARTICULARS REQUIRED IN RESPECT OF BODIES CORPORATE
WHICH HAVE BECOME CONTROLLERS IN CONTRAVENTION

OF SECTION 13B(2)


Name of Insurer* ....................................................................................................
The following are particulars of a body corporate which became a controller within the meaning of section

13B(1) of this Ordinance, or which is a partner in + ..................................... which became such a controller, of the
above-named Insurer on ................................... (date).

1. Name and address of body corporate and address of registered office (where different).
2. Principal business activity.
3. Address of principal place of business established in Hong Kong.
4. Date and place of incorporation.
5. Registered number (if any).
6 Full name and residential address of every director and every controller within the meaning of section 9 of

this Ordinance.
(Note: In relation to a body corporate which is not an insurer, "controller" (控權人) is to be construed as

a reference to a person who would, if he were a company, be a holding company of that body in
accordance with section 13 of the Companies Ordinance (Cap 622)).

7. Name and address of main bank.
8. Accounts for the last 3 completed financial years and particulars of any reports, resolutions and other

circulars issued to shareholders during the last 4 years.
9. Name, place of incorporation and principal activities of all subsidiary companies and of any holding

company or ultimate holding company.
(Note: Shares held by a nominee are to be treated as shares held by his principal).

++10. In the case of a non-Hong Kong company as defined by section 2(1) of the Companies Ordinance (Cap
622)-

(a) name(s) and address(es) of its authorized representative(s) as defined by section 774 of the
Companies Ordinance (Cap 622);

(b) date of the certificate of registration issued under Part XI of the Companies Ordinance (Cap 32)
as in force from time to time before the commencement date of section 2 of Schedule 9 to the
Companies Ordinance (Cap 622) or under section 777 of the Companies Ordinance (Cap 622).

++11. Particulars of circumstances (by reference to section 13B(1) of the Insurance Companies Ordinance) by
virtue of which the above-named body corporate became a controller within the meaning of section 13B(1)



Cap 41 - Insurance Companies Ordinance 154

of this Ordinance.
12. Has any body corporate or insurer with which the above-named body corporate was associated as director or

controller (within the meaning of section 9 of this Ordinance) in the last 10 years, in Hong Kong or
elsewhere, been compulsorily wound up or made any compromise or arrangement with its creditors or
ceased trading in circumstances where its creditors did not receive or have not yet received full settlement of
their claims either whilst the above-named body corporate was associated with it or within one year after the
above-named body corporate ceased to be associated with it? If so, give full particulars.
(Note: In relation to a body corporate which is not an insurer, "controller" (控權人) is to be construed as

a reference to a person who would, if he were a company, be a holding company that body in
accordance with section 13 of the Companies Ordinance (Cap 622)).


I certify that the above information is complete and correct to the best of my knowledge and belief and I

certify that this notice is served with the knowledge and consent of the above-named body corporate.


Date ..........................................
Signed ..........................................................

(Director/Secretary ++
of body corporate.)


* Insert name of Insurer.
+ Insert name of partnership.
++ Delete as necessary.

(Amended 28 of 2012 ss. 912 & 920)
(Sixth Schedule added 44 of 1990 s. 10)


Schedule: 7 POWERS OF MANAGER OF INSURER 30/06/1997


[sections 38B(1)(b)
& 59(1)(c)]

(Amended 29 of 1997 s. 14)


1. Power to take possession of, collect and get in the property of the insurer and, for that purpose, to take such
proceedings as may seem to him expedient.

2. Power to sell or otherwise dispose of the property of the insurer by public auction or private contract.

3. Power to raise or borrow money and grant security therefor over the property of the insurer.

4. Power to appoint a solicitor or accountant or other professionally qualified person to assist him in the
performance of his functions.

5. Power to bring or defend any action or other legal proceedings in the name and on behalf of the insurer.

6. Power to refer to arbitration any question affecting the insurer.

7. Power to effect and maintain insurances in respect of the business and property of the insurer.

8. Power to use the insurer's seal.

9. Power to do all acts and to execute in the name and on behalf of the insurer any deed, receipt or other document.

10. Power to draw, accept, make and endorse any bill of exchange or promissory note in the name and on behalf of
the insurer.

11. Power to appoint any agent to do any business which he is unable to do himself or which can more conveniently



Cap 41 - Insurance Companies Ordinance 155

be done by an agent and power to employ and dismiss employees.

12. Power to do all such things (including the carrying out of works) as may be necessary for the realisation of the
property of the insurer.

13. Power to make any payment which is necessary or incidental to the performance of his functions.

14. Power to carry on the business of the insurer.

15. Power to grant or accept a surrender of a lease or tenancy of any of the property of the insurer, and to take a
lease or tenancy of any property required or convenient for the business of the insurer.

16. Power to make any arrangement or compromise on behalf of the insurer.

17. Power to call up any uncalled capital of the insurer.

18. Power to rank and claim in the bankruptcy, insolvency, sequestration or liquidation of any person indebted to the
insurer and to receive dividends, and to accede to trust deeds for the creditors of any such person.

19. Power to present or defend a petition for the winding up of the insurer.

20. Power to make or oppose an application referred to in section 45(1).

21. Power to change the situation of the insurer's registered office.

22. Power to do all other things incidental to the exercise of the powers specified in this Schedule.

(Seventh Schedule added 51 of 1992 s. 17)

Schedule: 8 ASSETS WHICH QUALIFY AS ASSETS IN HONG

KONG
L.N. 12 of 2003 01/04/2003



[section 25A]


1. The following qualify as assets in Hong Kong-
(a) real property, including a leasehold interest therein, located in Hong Kong;
(b) computer equipment, office machinery, furniture, motor vehicles and other equipment located in Hong

Kong;
(c) money, in any currency or monetary unit, deposited and kept in Hong Kong at an authorized

institution, as defined in the Banking Ordinance (Cap 155); (Amended 51 of 1999 s. 8)
(d) bonds or other securities issued in Hong Kong provided that they are transferable and registrable at a

register in Hong Kong and, in the case of bonds or other securities which are evidenced by certificates,
the certificates for them are for the time being kept in Hong Kong;

(e) bonds or other securities issued outside Hong Kong, the certificates for which are for the time being
kept in Hong Kong and which are transferable by delivery, with or without endorsement;

(f) negotiable bills of exchange, within the meaning of the Bills of Exchange Ordinance (Cap 19), or
other negotiable instruments which are for the time being kept in Hong Kong;

(g) shares in respect of a company, wherever incorporated and whether or not it comes within the
definition of "company" (公司) in section 2(1) of this Ordinance, which shares are-
(i) transferable and registrable only at a register in Hong Kong; or
(ii) in the ordinary course of business, transferred and registered at a register in Hong Kong and the

certificates for which (if any) are for the time being kept in Hong Kong.
(h) debts that may be enforced only by legal proceedings in a Hong Kong court, other than amounts

recoverable in respect of claims outstanding under reinsurance contracts ceded;
(i) an interest in a unit trust which is realizable in Hong Kong and in respect of which the governing law

of the trust is expressly stated to be that of Hong Kong to the exclusion of all others. (Amended 5 of



Cap 41 - Insurance Companies Ordinance 156

2002 s. 407)
2. For the purpose of paragraph 1(i), "unit trust" (單位信託) means any arrangement made for the purpose, or
having the effect, of providing facilities for the participation by persons, as beneficiaries under a trust, in profits or
income arising from the acquisition, holding, management or disposal of securities or any other property whatsoever.
(Added 5 of 2002 s. 407)

(Eighth Schedule Added 26 of 1994 s. 8)

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