Cap. 41 《保險業條例》Insurance Ordinance

In this Ordinance, unless the context otherwise requires—

References in this Ordinance to an insurer include an insurer incorporated, established or formed in Hong Kong, or re-domiciled to Hong Kong, and carrying on insurance business outside Hong Kong, whether or not the insurer is also carrying on insurance business in or from Hong Kong. (Amended 14 of 2025 s. 118)

In this Ordinance—

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 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.

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.

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)

For the purpose of this Ordinance—

For the purposes of the definition of special purpose business, a contract of insurance entered into between an insurer and a person as the insured under the contract is fully funded if the value of the assets held under the terms of the contract by, or on behalf of, the insurer for the benefit of the insured is not less than the amount of the insurer’s liabilities (whether actual or potential) under the contract at any time and under all reasonably foreseeable circumstances, taking into account—

A note located in the text of this Ordinance is provided for information only and has no legislative effect. (Added 18 of 2020 s. 3)

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

If—

is not (but for this subsection) a contract of insurance, the contract is, for the purposes of this Ordinance, deemed to be a contract of insurance. (Replaced 17 of 2020 s. 4)

If, in the opinion of the Authority, a non-HK insurer carries on a majority of its insurance business in or from Hong Kong, the Authority may, by a written notice served on the insurer, designate the insurer as a designated insurer.

If, in the opinion of the Authority, a non-HK insurer designated under subsection (1) no longer carries on a majority of its insurance business in or from Hong Kong, or becomes a re-domiciled insurer, the Authority may, by a written notice served on the insurer, withdraw the designation. (Amended 14 of 2025 s. 119)

A designation under subsection (1)—

If the Authority makes a designation under subsection (1) or withdraws a designation under subsection (2), the Authority must, as soon as practicable after the designation or withdrawal, publish in the Gazette a notice of the designation or withdrawal.

A non-HK insurer becomes a re-domiciled insurer if it—

If a non-HK insurer becomes a re-domiciled insurer under subsection (1), the date on which it is deregistered from its place of incorporation is taken to be the date on which it becomes a re-domiciled insurer.

Before a non-HK insurer applies under section 820B of the Companies Ordinance (Cap. 622) for registration as a re-domiciled company for the purposes of subsection (1)(a), the non-HK insurer must apply to the Authority for, and receive from it, a letter of no-objection to the registration.

If a non-HK insurer contravenes subsection (3)—

An application made under subsection (3) must—

After deciding on a non-HK insurer’s application under subsection (3), the Authority must give the insurer a written notice of the result of the application.

If the application made under subsection (3) is rejected by the Authority, the notice must include a statement of the reasons for the rejection.

This section applies to a company (other than an authorized insurer) that—

Such a company becomes a re-domiciled insurer if it becomes an authorized insurer.

The Authority must keep a register of authorized insurers, in a form it thinks fit, containing—

A person may, at all reasonable times—

A person may, at all reasonable times and on payment of a prescribed fee, obtain—

In any legal proceedings—

The Authority must, as far as practicable, make the register available to any person for inspection free of charge on the Internet.

No person shall carry on any class of insurance business in or from Hong Kong except—

Where an application for approval under subsection (1)(c) is made, the applicant shall furnish such information in respect thereof as the Authority may require. (Amended 25 of 1994 s. 3)

A person who contravenes subsection (1) commits an offence and is liable—

together with, in either case, a fine of $2,000 for each day on which the offence continues. (Amended 35 of 1996 s. 3)

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 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.

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.

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).

Any company may make application in writing to the Authority for authorization to carry on any class of insurance business.

The application must—

On application made by a company under section 7 for authorization to carry on any class or classes of insurance business specified in Part 2 or 3 of Schedule 1— (Amended 12 of 2015 s. 2; 17 of 2020 s. 7)

The Authority shall not authorize a company under this section if it appears to the 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. (Amended 12 of 2015 s. 2)

The Authority must not authorize a company under this section unless the following conditions are satisfied— (Amended 12 of 2015 s. 2; 20 of 2023 s. 7)

(Repealed 20 of 2023 s. 7)

On application made by a company under section 7 for authorization to carry on special purpose business—

The Authority must not authorize a company under this section unless the following conditions are satisfied—

For the purposes of subsection (2)(a) and (b), if the Authority considers that a person is not a fit and proper person to hold the relevant position, the Authority must notify the company in writing of the fact and the reason for that opinion.

In this section—

In this Ordinance, except as otherwise defined by section 13A(12), 64F or 80(1), controller (控權人), in relation to a special purpose insurer, means an individual who (alone or jointly with others) is responsible for the administration of the whole business of the special purpose insurer. (Added 20 of 2023 s. 9)

In relation to an applicable company incorporated outside Hong Kong (other than a designated insurer or re-domiciled insurer)— (Amended 12 of 2015 s. 19; 20 of 2023 s. 9; 14 of 2025 s. 123)

and for the purposes of this subsection child (子女) includes a step-child. (Amended 20 of 2023 s. 9)

(Repealed 20 of 2023 s. 9)

In relation to an applicable company, a capital requirement is—

The Authority may, by rules made under section 129—

The Authority may, by a written notice served on an applicable company, vary a requirement prescribed by virtue of subsection (2) that applies to the company if the Authority is satisfied, on reasonable grounds, that it is prudent to make the variation so that the requirement for the company is commensurate with the risks associated with the company.

Where the 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 Authority shall notify the company in writing of that fact and the name of the person whose fitness is in question. (Amended 12 of 2015 s. 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. (Amended 41 of 1987 s. 3; 12 of 2015 s. 21)

Where the Authority refuses to authorize a company under section 8(1)(b)(ii) or 8A(1)(b)(ii), the Authority must notify the company in writing of that refusal. (Added 41 of 1987 s. 3. Amended 12 of 2015 s. 2; 17 of 2020 s. 9)

(Repealed 12 of 2015 s. 21)

Where any authorization is granted subject to conditions imposed under section 8(1)(a) or 8A(1)(a), the Authority may, by serving a notice in writing on the authorized insurer concerned, amend or revoke a condition or impose a new condition that is reasonable in the circumstances. (Amended 12 of 2015 s. 22; 17 of 2020 s. 10)

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.

If a condition referred to in subsection (1) is amended or revoked or a new condition is imposed, the Authority may direct that the register kept under section 5H be amended accordingly. (Replaced 12 of 2015 s. 22)

Every authorized insurer shall pay the prescribed fees to the Authority— (Amended 12 of 2015 s. 2)

Subsection (1) shall apply to an insurer deemed under section 61(1) of the pre-amended Ordinance having continuing effect by the operation of section 2(7) of Schedule 11 to be authorized under section 8 to carry on insurance business as if— (Amended 12 of 2015 s. 23)

Where it appears to the Authority that an authorized insurer does not intend to effect any contracts of insurance after any anniversary referred to in subsection (1), the 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 Authority by notice in writing to the insurer, with effect from the date of such notice. (Amended 12 of 2015 s. 2)

An authorized insurer must ensure that the capital requirements for the insurer are at all times complied with.

The Authority may, by rules made under section 129(1), prescribe requirements for an authorized insurer to report to the Authority any information relevant to the compliance with the capital requirements for the insurer (including requirements as to how and when such a report must be made).

An authorized insurer must comply with a requirement prescribed by virtue of subsection (2) that applies to the insurer.

An authorized insurer that contravenes subsection (3) commits an offence and is liable on conviction on indictment—

An authorized insurer must not appoint an individual as a controller of the insurer unless the Authority has approved the appointment under subsection (2).

The Authority may approve the appointment of the individual as a controller of the authorized insurer—

An application made under subsection (2)(a) must—

The Authority must not approve the appointment of an individual as a controller of the authorized insurer unless it is satisfied that the individual is a fit and proper person to be so appointed.

After deciding on the application, the Authority must give the authorized insurer and the individual a notice in writing of the result of the application. (Amended 20 of 2023 s. 12)

If the application is rejected, the notice must include a statement of the reasons for the rejection.

If an individual is a managing director or chief executive of a non-HK insurer immediately before the insurer is designated as a designated insurer under section 3B(1)—

If the Authority withdraws the designation of a designated insurer under section 3B(2), and an individual is a controller of the designated insurer immediately before the withdrawal takes effect—

If an individual is a managing director or chief executive of a non-HK insurer immediately before the date on which the non-HK insurer becomes a re-domiciled insurer under section 3BA(1)—

Subject to subsection (9), the Authority may, by serving a notice in writing on an authorized insurer and an individual, revoke the approval of the appointment of the individual as a controller of the insurer (given under subsection (2) or taken to be given by virtue of subsection (6A), (6B) or (6C)) if it appears to the Authority that the individual is not, or is no longer, a fit and proper person to be so appointed. (Amended 20 of 2023 s. 12; 14 of 2025 s. 124)

The authorized insurer must, by the date specified in the notice under subsection (7), terminate the appointment of the individual as a controller of the insurer.

Before serving the notice under subsection (7), the Authority must serve on the authorized insurer and the individual a preliminary written notice stating—

If representations are made under subsection (9), the Authority must take them into consideration before serving a notice under subsection (7).

An authorized insurer which contravenes subsection (1) or (8) commits an offence and is liable—

In this section—

An individual appointed as a controller of an authorized insurer in contravention of section 13A(1) must not act or continue to act as such a controller.

An individual appointed as a controller of an authorized insurer must not continue to act as such a controller after the date specified in the notice served on the individual under section 13A(7).

An individual who contravenes subsection (1) or (2) commits an offence and is liable—

An HK insurer or designated insurer must not appoint a person as a director of the insurer unless the Authority has approved the appointment under subsection (2).

The Authority may approve the appointment of the person as a director of the HK insurer or designated insurer— (Amended 20 of 2023 s. 13)

An application made under subsection (2)(a) must—

The Authority must not approve the appointment of a person as a director of the HK insurer or designated insurer unless it is satisfied that the person is a fit and proper person to be so appointed.

After deciding on the application, the Authority must give the HK insurer or designated insurer and the person a notice in writing of the result of the application.

If the application is rejected, the notice must include a statement of the reasons for the rejection.

If a person is a director of a non-HK insurer immediately before the insurer is designated as a designated insurer under section 3B(1)—

If a person is a director of a non-HK insurer immediately before the date on which the non-HK insurer becomes a re-domiciled insurer under section 3BA(1)—

Subject to subsection (9), the Authority may, by serving a notice in writing on an HK insurer or designated insurer and a person, revoke the approval of the appointment of the person as a director of the insurer (given under subsection (2) or taken to be given by virtue of subsection (6A) or (6B)) if it appears to the Authority that the person is not, or is no longer, a fit and proper person to be so appointed. (Amended 14 of 2025 s. 125)

The HK insurer or designated insurer must, by the date specified in the notice under subsection (7), terminate the appointment of the person as a director of the insurer.

Before serving the notice under subsection (7), the Authority must serve on the HK insurer or designated insurer and the person a preliminary written notice stating— (Amended 20 of 2023 s. 13)

If representations are made under subsection (9), the Authority must take them into consideration before serving a notice under subsection (7).

An HK insurer or designated insurer which contravenes subsection (1) or (8) commits an offence and is liable— (Amended 20 of 2023 s. 13)

A person appointed as a director of an authorized insurer in contravention of section 13AC(1) must not act or continue to act as such a director.

A person appointed as a director of an authorized insurer must not continue to act as such a director after the date specified in the notice served on the person under section 13AC(7).

A person who contravenes subsection (1) or (2) commits an offence and is liable—

This section does not apply to a special purpose insurer. (Added 17 of 2020 s. 12)

An authorized insurer which is not a captive insurer must not appoint an individual as a key person in control functions of the insurer unless the Authority has approved the appointment under subsection (2).

The Authority may approve the appointment of the individual as a key person in control functions of the authorized insurer—

An application made under subsection (2)(a) must—

The Authority must not approve the appointment of an individual as a key person in control functions of the authorized insurer unless it is satisfied that the individual is a fit and proper person to be so appointed.

After deciding on the application, the Authority must give the authorized insurer and the individual a notice in writing of the result of the application. (Amended 20 of 2023 s. 14)

If the application is rejected, the notice must include a statement of the reasons for the rejection.

If an individual is a key person in control functions of a non-HK insurer immediately before the insurer is designated as a designated insurer under section 3B(1)—

If the Authority withdraws the designation of a designated insurer under section 3B(2), and an individual is a key person in control functions of the designated insurer immediately before the withdrawal takes effect—

If an individual is a key person in control functions of a non-HK insurer immediately before the date on which the non-HK insurer becomes a re-domiciled insurer under section 3BA(1)—

Subject to subsection (9), the Authority may, by serving a notice in writing on an authorized insurer and an individual, revoke the approval of the appointment of the individual as a key person in control functions of the insurer (given under subsection (2) or taken to be given by virtue of subsection (6A), (6B) or (6C)) if it appears to the Authority that the individual is not, or is no longer, a fit and proper person to be so appointed. (Amended 20 of 2023 s. 14; 14 of 2025 s. 126)

The authorized insurer must, by the date specified in the notice under subsection (7), terminate the appointment of the individual as a key person in control functions of the insurer.

Before serving the notice under subsection (7), the Authority must serve on the authorized insurer and the individual a preliminary written notice stating—

If representations are made under subsection (9), the Authority must take them into consideration before serving a notice under subsection (7).

An authorized insurer which contravenes subsection (1) or (8) commits an offence and is liable—

In this section—

For the purposes of the definition of key person in control functions in subsection (12), it does not matter whether the individual is solely responsible, or is jointly responsible with other key persons in control functions of the authorized insurer, for the performance of the relevant functions.

Subject to subsection (15), the Financial Secretary may, by notice published in the Gazette, specify a function to be a control function under subsection (12).

The Financial Secretary must not specify a function to be a control function unless the Financial Secretary is satisfied that the function is likely to enable the individual responsible for the performance of the function to exercise a significant influence on the business carried on by an authorized insurer.

This section applies if the Authority approves the appointment of—

For subsection (1)(a), it does not matter whether the approval is—

For subsection (1)(b), it does not matter whether the approval is—

For subsection (1)(c), it does not matter whether the approval is—

For subsection (1)(d), it does not matter whether the approval is—

The Authority may impose any conditions that it considers appropriate on the approval when the approval is given. (Amended 20 of 2023 s. 15)

The Authority may also impose any conditions that it considers appropriate on the approval after the approval is given or taken to be given. (Amended 20 of 2023 s. 15)

The Authority may amend or revoke any conditions imposed under subsection (2) or (3).

The power under subsection (2), (3) or (4) is only exercisable by notice in writing served on the authorized insurer and the individual or person.

A notice under subsection (5) must, in the case of any conditions being imposed or amended, include a statement of reasons for imposing or amending the conditions.

An imposition, amendment or revocation of any conditions under subsection (2), (3) or (4) takes effect at the time the notice under subsection (5) is served on the authorized insurer and the individual or person or at the time specified in the notice, whichever is the later.

The Authority must not—

without giving the insurer and the individual an opportunity to make representations as to why the application should not be rejected or why the condition should not be imposed or amended.

The Authority must not—

without giving the insurer and the person an opportunity to make representations as to why the application should not be rejected or why the condition should not be imposed or amended.

The Authority must not—

without giving the insurer and the individual an opportunity to make representations as to why the application should not be rejected or why the condition should not be imposed or amended.

The Authority must not—

without giving the insurer and the person an opportunity to make representations as to why the condition should not be imposed or amended. (Added 20 of 2023 s. 16)

In this section, a reference to an opportunity to make representations is a reference to an opportunity to make written representations or oral representations.

A person commits an offence if the person, in connection with an application for the approval under section 13A, 13AC, 13AE or 13B— (Amended 20 of 2023 s. 17)

A person commits an offence if the person, in connection with an application for the approval under section 13A, 13AC, 13AE or 13B— (Amended 20 of 2023 s. 17)

A person who commits an offence under subsection (1) or (2) is liable to a fine at level 5 and to imprisonment for 6 months.

(Repealed 20 of 2023 s. 18)

This section applies to an authorized insurer that—

A person must not become a minority shareholder controller of an authorized insurer unless—

A person must not become a majority shareholder controller of an authorized insurer unless the Authority approves under subsection (2B) the person to be such a majority shareholder controller, regardless of whether the person is a minority shareholder controller of the insurer before becoming such a majority shareholder controller.

The Authority may approve a person to be a minority shareholder controller or a majority shareholder controller of an authorized insurer—

An application made under subsection (2B)(a) must—

The Authority must reject an application made under subsection (2B)(a) for the approval of a person to be a minority shareholder controller or a majority shareholder controller of an authorized insurer unless it is satisfied that the person is a fit and proper person to be such a shareholder controller. (Added 20 of 2023 s. 18)

If the Authority intends to reject the application, the Authority must serve on the person and the authorized insurer a written notice stating—

The person or the authorized insurer may, within 1 month after the date of service of the notice under subsection (2E)—

If representations are made under subsection (2F), the Authority must take them into account before rejecting the application. (Added 20 of 2023 s. 18)

After deciding on the application, the Authority must give the person and the authorized insurer a written notice of the result of the application. (Added 20 of 2023 s. 18)

If the application is rejected, the notice must state the reasons for the rejection. (Added 20 of 2023 s. 18)

Where a person—

the person must, within 14 days after becoming aware of that fact, take the actions specified in subsection (4). (Amended 12 of 2015 ss. 2 & 27; 20 of 2023 s. 18)

The actions specified for the purposes of subsection (3) are—

If a person is a minority shareholder controller or a majority shareholder controller of a non-HK insurer immediately before the insurer is designated as a designated insurer under section 3B(1), the person is taken to be approved under subsection (2B) as such a shareholder controller on the date of designation. (Replaced 20 of 2023 s. 18)

If a person is a minority shareholder controller or a majority shareholder controller of a non-HK insurer immediately before the date on which the non-HK insurer becomes a re-domiciled insurer under section 3BA(1), the person is taken to be approved under subsection (2B) as such a shareholder controller of the re-domiciled insurer on that date. (Added 14 of 2025 s. 128)

(Repealed 20 of 2023 s. 18)

(Repealed 12 of 2015 s. 27)

No transaction relating to the acquisition of voting power in an authorized insurer is void or voidable by reason only of a contravention of subsection (2) or (2A). (Amended 12 of 2015 s. 27; 20 of 2023 s. 18)

Subject to subsection (10), any person who fails to comply with subsection (2) or (2A) commits an offence and is liable to a fine of $200,000 and, in the case of an individual, to imprisonment for 2 years. (Amended 35 of 1996 s. 7; 20 of 2023 s. 18)

Where a person is charged with an offence under subsection (9), it is a defence to prove that the person did not know that the acts or circumstances as a result of which the person became a minority shareholder controller or a majority shareholder controller (as the case may be) of the insurer concerned were such as to have that effect. (Amended 20 of 2023 s. 18)

Any person who fails to comply with subsection (3) commits an offence and is liable to a fine of $200,000 and, in the case of an individual, to imprisonment for 2 years, together with a fine of $2,000 for each day on which the offence continues. (Amended 35 of 1996 s. 7)

This section applies in relation to a person approved under section 13B to be a shareholder controller of an authorized insurer that—

For subsection (1), it does not matter whether the approval is—

If it appears to the Authority that a person who is a minority shareholder controller of an authorized insurer is not, or is no longer, a fit and proper person to be such a minority shareholder controller, the Authority may, by a written notice served on the person, object to the person being such a minority shareholder controller.

If it appears to the Authority that a person who is a majority shareholder controller of an authorized insurer is not, or is no longer, a fit and proper person to be such a majority shareholder controller, the Authority, by a written notice served on the person—

A notice under subsection (3) or (4) (notice of objection) must state the grounds for the objection.

Before serving a notice of objection on a person, the Authority must serve on the person a written notice stating—

The person may, within the period specified in the notice under subsection (6)—

If representations are made under subsection (7), the Authority must take them into account before serving the notice of objection.

The Authority may, by a written notice served on a person, revoke a notice of objection served on the person if it appears to the Authority that the grounds for the objection no longer exist.

If a person, on ceasing to be a majority shareholder controller of an HK insurer or designated insurer (other than a special purpose insurer), becomes a minority shareholder controller of the insurer, the person must, within 1 month after becoming such a minority shareholder controller, notify the Authority in the specified form.

If the person—

the person must serve on the Authority, within 1 month after becoming aware of that fact, a written notice stating that the person has become such a minority shareholder controller and containing the information specified by the Authority.

A person who complies with subsection (1) or (2) is taken to be approved to be a minority shareholder controller of the insurer under section 13B(2B).

A person who fails to comply with subsection (1) commits an offence and is liable on conviction—

If a person is charged with an offence under subsection (4), it is a defence for the person to establish that the person took all reasonable precautions and exercised all due diligence to avoid the commission of the offence.

A person who fails to comply with subsection (2) commits an offence and is liable on conviction—

A person is taken to have established a matter that needs to be established for a defence under subsection (5) if—

The Authority may exercise a power conferred by this section in relation to a person if the person—

Subject to subsection (1B), the Authority may also exercise a power conferred by this section in relation to a minority shareholder controller or a majority shareholder controller of an HK insurer or designated insurer (other than a special purpose insurer) if—

Subsection (1A) does not empower the Authority to make an application referred to in subsection (5) except if the application is made in relation to a minority shareholder controller or a majority shareholder controller of an HK insurer or designated insurer (other than a special purpose insurer) who—

Subject to subsection (6), the 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— (Amended 12 of 2015 s. 2)

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.

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.

Subject to subsection (7), the Court of First Instance may, on the application of the 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; 12 of 2015 s. 2)

The Authority must, by a written notice served on a person, revoke a notice served under subsection (2) on the person if—

Subject to subsection (7A), the Authority may not, by virtue of subsection (1), make an application referred to in subsection (5) against a person falling within the descriptions in section 13B(3)(a), (b) and (c) unless— (Amended 12 of 2015 s. 2; 20 of 2023 s. 20)

Subsection (7) does not prevent the Authority from making, by virtue of subsection (1), an application referred to in subsection (5) in respect of the shares that are the subject of a notice under subsection (2) against a person falling within the descriptions in section 13B(3)(a), (b) and (c) if—

Where an order has been made under subsection (5) the Court of First Instance may, on the application of the Authority, make such further order relating to the sale or transfer of the shares as it thinks fit. (Amended 25 of 1998 s. 2; 12 of 2015 s. 2)

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)

This section applies to— (Amended 12 of 2015 s. 28; 20 of 2023 s. 20)

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.

A person commits an offence and is liable to a fine at level 4 and to imprisonment for 6 months if he—

Where shares in an authorized insurer are issued in contravention of restrictions under section 13C(2), or payments are made by an authorized 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 124, to imprisonment for 6 months. (Amended 12 of 2015 ss. 2 & 29)

Subject to sections 38A(2) and 38B(5), if 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, and the particulars fall within a type of particulars set out in the form specified by the Authority for the purposes of this subsection, the insurer must— (Amended 51 of 1992 s. 5; 20 of 2023 s. 21)

Subject to sections 38A(2) and 38B(5), if any change takes place in the particulars in respect of the directors, controllers or key persons in control functions of an authorized insurer, and the particulars fall within a type of particulars set out in the form specified by the Authority for the purposes of this subsection, the insurer must— (Amended 44 of 1990 s. 4; 51 of 1992 s. 5; 20 of 2023 s. 21)

(Repealed 20 of 2023 s. 21)

Subject to sections 13BB, 38A(2) and 38B(5), if an event specified in subsection (3A) occurs in relation to an authorized insurer on a date, the insurer must—

For the purposes of subsection (3), the event is—

Subject to subsection (5) and section 38B(4), the Authority may, if it appears to the Authority that any person appointed as controller or director (other than a controller or director to whom section 13A, 13AC, 13B or 13BA applies) of an authorized insurer is not, or is no longer, a fit and proper person to be appointed to that position, serve a notice in writing on the person and the insurer stating— (Amended 44 of 1990 s. 4; 51 of 1992 s. 5; 12 of 2015 ss. 2 & 30; 20 of 2023 s. 21)

The following provisions shall apply in relation to a notice of objection referred to in subsection (4)—

(Repealed 12 of 2015 s. 30)

(Repealed 50 of 1992 s. 3)

Any person who fails to comply with subsection (1), (2) or (3) commits an offence and is liable to a fine of $200,000 and, in the case of an individual, to imprisonment for 2 years, together with a fine of $2,000 for each day on which the offence continues. (Amended 35 of 1996 s. 10)

In determining whether a person is a fit and proper person for the purposes of sections 8, 8A, 13A, 13AC, 13AE, 13B, 13BA, 14, 15AAAB and 15AABA, the Authority must have regard to the following matters— (Amended 17 of 2020 s. 14; 20 of 2023 s. 22)

The obligations imposed on the Authority under subsection (1) are in addition to those of the Authority to have regard to any other matter that the Authority considers relevant in making the determination.

An authorized insurer must appoint as its auditor—

An authorized insurer must make a first appointment under subsection (1) within 1 month after the date on which the authorized insurer begins to carry on insurance business. (Replaced 20 of 2023 s. 23)

After an appointment under subsection (1) comes to an end, the authorized insurer must, as soon as practicable, make a fresh appointment under that subsection. (Added 20 of 2023 s. 23)

An authorized insurer making an appointment under subsection (1) must within 1 month after making the appointment serve on the Authority a notice of the appointment in writing stating the name and qualifications of the person appointed. (Amended 12 of 2015 s. 2; 20 of 2023 s. 23)

(Repealed 20 of 2023 s. 23)

(Repealed 59 of 1993 s. 6)

An authorized insurer which contravenes subsection (1), (2), (2A) or (3) commits an offence and is liable to a fine at level 4, together with a further fine of $1,000 for each day on which the offence continues. (Amended 59 of 1993 s. 6; 35 of 1996 s. 11; 20 of 2023 s. 23)

(Repealed 20 of 2023 s. 23)

Subject to section 15AAAB—

For the purposes of subsection (1), an actuary is a qualified actuary if the actuary—

Subsection (1)(c) and (d) does not apply to an authorized insurer that is exempted under the rules made under section 129(1)(cb).

An authorized insurer must make a first appointment under subsection (1)(a) within 1 month after the date on which the authorized insurer begins to carry on long term business.

An authorized insurer must make a first appointment under subsection (1)(b) within 1 month after the date on which the authorized insurer begins to carry on long term business in or from Hong Kong.

An authorized insurer must make a first appointment under subsection (1)(c)—

An authorized insurer must make a first appointment under subsection (1)(d)—

After an appointment under subsection (1) comes to an end, the authorized insurer must, as soon as practicable, make a fresh appointment under that subsection.

An authorized insurer that makes an appointment under subsection (1) must, within 1 month after making the appointment, serve on the Authority a written notice of the appointment.

An authorized insurer that contravenes subsection (1), (4), (5), (6), (7), (8) or (9) commits an offence and is liable on conviction—

An authorized insurer must not appoint a person as its actuary under section 15AAA(1) unless the Authority has approved the appointment under subsection (2).

The Authority may approve the appointment of a person as an actuary of an authorized insurer—

An application made under subsection (2)(a) must—

The Authority must not approve the appointment of a person as an actuary of the authorized insurer unless it is satisfied that the person is a fit and proper person to be so appointed.

After deciding on the application, the Authority must give the person and the authorized insurer a written notice of the result of the application.

If the application is rejected, the notice must state the reasons for the rejection.

An authorized insurer that contravenes subsection (1) commits an offence and is liable on conviction—

This section applies if the Authority approves the appointment of a person as an actuary of an authorized insurer under section 15AAAB(2). (Amended 20 of 2023 s. 25)

For subsection (1), it does not matter whether the approval is—

The Authority may impose any conditions that it considers appropriate on the approval when the approval is given. (Amended 20 of 2023 s. 25)

The Authority may also impose any conditions that it considers appropriate on the approval after the approval is given or taken to be given. (Amended 20 of 2023 s. 25)

The Authority may amend or revoke any conditions imposed under subsection (2) or (3).

The power under subsection (2), (3) or (4) is only exercisable by notice in writing served on the authorized insurer and the person.

A notice under subsection (5) must, in the case of any conditions being imposed or amended, include a statement of reasons for imposing or amending the conditions.

An imposition, amendment or revocation of any conditions under subsection (2), (3) or (4) takes effect at the time the notice under subsection (5) is served on the authorized insurer and the person or at the time specified in the notice, whichever is the later.

The Authority must not—

without giving the insurer and the person an opportunity to make representations as to why the application should not be rejected or why the condition should not be imposed or amended.

In this section, a reference to an opportunity to make representations is a reference to an opportunity to make written representations or oral representations.

Subject to subsection (4), the Authority may, by a written notice served on an authorized insurer and the person appointed as the insurer’s actuary under section 15AAA(1) (relevant person), revoke the approval under section 15AAAB(2) if it appears to the Authority that the relevant person is not, or is no longer, a fit and proper person to be so appointed.

For subsection (1), it does not matter whether the approval is—

The insurer must, by the date specified in the notice under subsection (1), terminate the appointment.

Before serving the notice under subsection (1), the Authority must serve on the authorized insurer and the relevant person a written notice stating—

The authorized insurer or the relevant person may, within 1 month after the date of service of the notice under subsection (4)—

If representations are made under subsection (5), the Authority must take them into consideration before serving a notice under subsection (1).

An authorized insurer that contravenes subsection (3) commits an offence and is liable on conviction—

A person commits an offence if the person, in connection with an application for the approval under section 15AAAB(2)(a)— (Amended 20 of 2023 s. 28)

A person commits an offence if the person, in connection with an application for the approval under section 15AAAB(2)(a)— (Amended 20 of 2023 s. 28)

A person who commits an offence under subsection (1) or (2) is liable to a fine at level 5 and to imprisonment for 6 months.

This section applies if—

On the occurrence of the relevant event, the person mentioned in subsection (1)(b)—

In subsection (2)—

This section applies if—

On the occurrence of the relevant event, the person mentioned in subsection (1)(b)—

In subsection (2)—

An authorized insurer must immediately give written notice to the Authority if— (Amended 12 of 2015 ss. 2 & 34; 20 of 2023 s. 30)

An auditor appointed under section 15(1) by an authorized insurer must immediately give written notice to the Authority if— (Amended 26 of 1994 s. 3; 12 of 2015 ss. 2 & 34; 20 of 2023 s. 30)

An authorized 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 $1,000 for each day on which the offence continues. (Amended 35 of 1996 s. 12; 12 of 2015 s. 34)

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.

An authorized insurer must immediately give written notice to the Authority if— (Amended 12 of 2015 ss. 2 & 35; 20 of 2023 s. 31)

If, after the appointment of an actuary under section 15AAA(1), there is any change to the particulars in respect of the actuary and the particulars fall within a type of particulars set out in the form specified by the Authority for the purposes of this subsection, the authorized insurer must, within 1 month after the date on which the change takes place, notify the Authority of the change in the specified form. (Added 20 of 2023 s. 31)

An actuary appointed under section 15AAA(1) by an authorized insurer must immediately give written notice to the Authority if— (Amended 12 of 2015 ss. 2 & 35; 20 of 2023 s. 31)

(Repealed 20 of 2023 s. 31)

An authorized insurer which fails to comply with subsection (1) or (1A) commits an offence and is liable to a fine at level 4, together with a fine of $1,000 for each day on which the offence continues. (Amended 35 of 1996 s. 13; 12 of 2015 s. 35; 20 of 2023 s. 31)

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.

Without prejudice to the Companies Ordinance (Cap. 622) and the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32), every authorized 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; 12 of 2015 s. 36)

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.

If any books of account required to be kept by this section are kept by an authorized 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 take away, a reproduction of the recording or of the relevant part of it in a legible form. (Amended 12 of 2015 s. 36)

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.

The Authority may, by serving a notice in writing on an authorized insurer, require the insurer to provide to the Authority, within the period specified in the notice, any books of account that—

An authorized insurer served with the notice which, without reasonable excuse, fails to comply with it commits an offence and is liable to a fine at level 5. (Added 12 of 2015 s. 36)

The Authority may, by rules made under section 129, prescribe requirements in relation to the submission by an authorized insurer to the Authority of any statements, reports or other information relating to the insurer’s business, including requirements as to the following matters—

The Authority may, at the written request of an authorized insurer, vary a requirement prescribed by virtue of subsection (1) that applies to the insurer.

An authorized insurer must comply with—

An authorized insurer that contravenes subsection (3) commits an offence and is liable on conviction—

An authorized insurer— (Amended 12 of 2015 s. 38; 20 of 2023 s. 34)

Where under subsection (1) an authorized insurer causes an actuary’s report to be made on the actuary’s investigation into the financial condition of the insurer in respect of its long term business, the insurer must— (Amended 20 of 2023 s. 34)

In this section, for an authorized insurer described in section 21B(4) or (7), a reference to the insurer’s long term business is a reference to the insurer’s long term business carried on in or from Hong Kong. (Replaced 20 of 2023 s. 34)

An authorized insurer (other than an insurer that is exempted under the rules made under section 129(1)(cb)) must—

In subsection (1), for an authorized insurer described in section 25AA(3) or (5), a reference to the insurer’s general business is a reference to the insurer’s general business carried on in or from Hong Kong.

Classes or descriptions of agreements or arrangements appearing to the Authority as likely to be undesirable in the interests of policy holders may be prescribed for the purposes of this section, and every authorized 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 Authority with a statement containing such particulars of that agreement or arrangement as may be prescribed. (Amended 25 of 1994 s. 8)

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

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

The Authority may, by rules made under section 129, prescribe requirements in relation to the disclosure by an authorized insurer to the general public of information relating to the insurer’s state of affairs, including requirements as to the following matters—

The Authority may, at the written request of an authorized insurer, vary a requirement prescribed by virtue of subsection (1) that applies to the insurer.

An authorized insurer must comply with—

An authorized insurer that contravenes subsection (3) commits an offence and is liable on conviction—

Subsections (2) and (3) apply to an authorized insurer that carries on long term business and that is—

The insurer must, in respect of its long term business, maintain a separate account and a separate fund for each of the following parts of that business—

Also, the insurer must, within the fund maintained under subsection (2)(d), maintain at least 1 separate account and 1 separate sub-fund for the part of the specified business that is participating business.

Subsections (5) and (6) apply to an authorized insurer that carries on long term business in or from Hong Kong and that satisfies all of the following conditions—

The insurer must, in respect of its long term business carried on in or from Hong Kong, maintain a separate account and a separate fund for each of the following parts of that business—

Also, the insurer must, within the fund maintained under subsection (5)(d), maintain at least 1 separate account and 1 separate sub-fund for the part of the specified business (other than long term reinsurance business with offshore risk) that is participating business.

Subsections (8) and (9) apply to a non-HK insurer in relation to which an election under section 22B(1) is in effect.

The insurer must, in respect of its long term business carried on in or from Hong Kong, maintain a separate account and a separate fund for each of the following parts of that business—

Also, the insurer must, within the fund maintained under subsection (8)(d), maintain at least 1 separate account and 1 separate sub-fund for the part of the specified business that is participating business.

An authorized insurer that fails to comply with this section commits an offence and is liable on conviction—

In this section—

An authorized insurer must ensure that the receipts of a part of its business for which a separate account and a separate fund or sub-fund are required to be maintained under section 21B—

For a non-HK insurer that carries on long term business in or from Hong Kong, the Authority may, at the request in writing of the insurer, permit the insurer to maintain accounts of other insurance business closely related to the long term business or part of it as part of an account maintained under section 21B. (Added 75 of 1995 s. 4. Amended 12 of 2015 ss. 2 & 41; 20 of 2023 s. 39)

An authorized insurer must maintain any books of account and other records that are necessary for identifying—

For each fund or sub-fund maintained by an authorized insurer under section 21B, the aggregate value of the assets representing the fund or sub-fund must not be less than the amount of the liabilities attributable to the part of its business for which the fund or sub-fund is maintained. (Replaced 20 of 2023 s. 39)

For each fund maintained by an authorized insurer under section 21B(2)(b) or (c), (5)(b) or (c) or (8)(b) or (c), the aggregate value of the assets representing the fund must not be less than the account balance of the fund. (Added 20 of 2023 s. 39)

The aggregate value of the assets representing all the funds maintained by an authorized insurer under section 21B(2) or (8) must not be less than the aggregate of—

The aggregate value of the assets representing all the funds maintained by an authorized insurer under section 21B(5)(a), (b), (c) and (d) must not be less than the aggregate of—

(Repealed 59 of 1993 s. 8)

If subsection (1), (2), (3), (3A), (3B) or (3C) is not complied with in relation to an authorized insurer, the insurer commits an offence and is liable to a fine of $1,000,000 and, in the case of a continuing offence, to a further fine of $20,000 for each day during which the offence continues. (Amended 35 of 1996 s. 16; 12 of 2015 s. 41; 20 of 2023 s. 39)

In this section—

For a non-HK insurer that carries on long term business, the Authority may, at the request in writing of the insurer, permit the insurer to comply with section 21B(2) and (3), instead of section 21B(5) and (6), for the period specified in the permission. (Amended 20 of 2023 s. 40)

(Repealed 20 of 2023 s. 40)

The Authority must, as soon as practicable after giving the permission, publish a notice in the Gazette stating the name of the insurer and the fact that the permission has been given. (Amended 20 of 2023 s. 40)

A non-HK insurer (other than a designated insurer and an insurer in relation to which a permission under section 22A(1) is in effect) may, by a written notice, elect to comply with section 21B(8) and (9), instead of section 21B(5) and (6).

The notice under subsection (1) must—

The election under subsection (1) takes effect—

The insurer may, by a written notice, withdraw the election under subsection (1).

The notice of withdrawal under subsection (4) must—

The withdrawal under subsection (4) takes effect—

Subject to subsections (1A), (2) and (3) and section 45(2), the assets representing a fund maintained by an authorized insurer under section 21B(2), (5) or (8) for a part of its business may only be applied for that part of the business. (Amended 59 of 1993 s. 10)

Subject to subsection (3) and section 45(2), the assets representing a sub-fund maintained by an authorized insurer under section 21B(3), (6) or (9) for a part of its participating business (as defined by section 21B(11)) may only be applied for that part of the business or in accordance with the profit-sharing mechanism to which the business relates. (Added 20 of 2023 s. 42)

Subject to subsection (1A), if an investigation mentioned in section 18, or made in accordance with a requirement under section 32, shows that the following provisions (relevant provisions) are complied with—

subsection (1) only applies to the part of the assets necessary to secure the compliance with the relevant provisions. (Replaced 20 of 2023 s. 42)

Subsections (1) and (1A) do not preclude an authorized insurer from exchanging, at fair market value, assets representing a fund or sub-fund maintained by the insurer under section 21B for other assets of the insurer.

Any mortgage or charge is void to the extent to which it contravenes subsection (1) or (1A).

To avoid doubt, money from a fund or sub-fund maintained by an authorized insurer under section 21B may not be used for any other part of the business of the insurer apart from the part of the business for which the fund or sub-fund is maintained despite any arrangement for its subsequent repayment out of the receipts of that other part of the business. (Amended 59 of 1993 s. 10)

An authorized insurer, or a body corporate of which an authorized insurer is a subsidiary, must not declare a dividend to shareholders at any time when section 22(3), (3A), (3B) or (3C) is not complied with.

An authorized insurer or body corporate which fails to comply with subsection (1), (1A) or (6) commits an offence and is liable to a fine of $1,000,000 and, in the case of a continuing offence, to a further fine of $20,000 for each day during which the offence continues. (Amended 35 of 1996 s. 17)

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 authorized 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 order sanctioning the scheme. (Amended 12 of 2015 s. 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.

The requirements referred to in subsection (2) are—

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.

On any petition under this section—

shall be entitled to be heard.

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.

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)

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)

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—

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.

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)

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 Authority may allow, deposit 2 office copies of the order with the Authority. (Amended 12 of 2015 s. 2)

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)

Subsection (2) applies to an authorized insurer that carries on long term business and general business and that is—

The insurer must maintain a separate account and a separate fund for the part of its business that is general business.

Subsection (4) applies to an authorized insurer that carries on general business in or from Hong Kong and that satisfies all of the following conditions—

The insurer must, in respect of its general business carried on in or from Hong Kong, maintain a separate account and a separate fund for each of the following parts of that business—

Subsection (6) applies to a non-HK insurer in relation to which an election under section 25AAD(1) is in effect.

The insurer must maintain a separate account and a separate fund for the part of its business that is general business carried on in or from Hong Kong.

An authorized insurer that fails to comply with subsection (2), (4) or (6) commits an offence and is liable on conviction—

In this section—

An authorized insurer must ensure that the receipts of a part of its business for which a separate account and a separate fund are required to be maintained under section 25AA—

An authorized insurer must maintain any books of account and other records that are necessary for identifying—

For each fund maintained by an authorized insurer under section 25AA (other than under section 25AA(4)(a)), the aggregate value of the assets representing the fund must not be less than the aggregate of—

For a fund maintained by an authorized insurer under section 25AA(4)(a), the aggregate value of the assets representing the fund must not be less than the amount of the liabilities attributable to the part of its business for which the fund is maintained.

If subsection (1), (2), (3) or (4) is not complied with in relation to an authorized insurer, the insurer commits an offence and is liable on conviction—

For a non-HK insurer that carries on general business, the Authority may, at the written request of the insurer, permit the insurer to comply with section 25AA(2), instead of section 25AA(4), for the period specified in the permission.

The Authority must, as soon as practicable after giving the permission, publish a notice in the Gazette stating the name of the insurer and the fact that the permission has been given.

A non-HK insurer (other than a designated insurer and an insurer in relation to which a permission under section 25AAC(1) is in effect) may, by a written notice, elect to comply with section 25AA(6), instead of section 25AA(4).

The notice under subsection (1) must—

The election under subsection (1) takes effect—

The insurer may, by a written notice, withdraw the election under subsection (1).

The notice of withdrawal under subsection (4) must—

The withdrawal under subsection (4) takes effect—

Subject to subsections (2) and (3), the assets representing a fund maintained by an authorized insurer under section 25AA for a part of its business may only be applied for that part of the business.

Subsection (1) only applies to the part of the assets necessary to secure compliance with section 25AAB(3) and (4).

Subsection (1) does not preclude an authorized insurer from exchanging, at fair market value, assets representing a fund maintained by the insurer under section 25AA for other assets of the insurer.

Any mortgage or charge is void to the extent to which it contravenes subsection (1).

To avoid doubt, money from a fund maintained by an authorized insurer under section 25AA may not be used for any other business of the insurer apart from the part of its business for which the fund is maintained despite any arrangement for its subsequent repayment out of the receipts of that other business.

An authorized insurer, or a body corporate of which an authorized insurer is a subsidiary, must not declare a dividend to shareholders at any time when section 25AAB(3) or (4) is not complied with.

An authorized insurer or body corporate that fails to comply with subsection (1) or (6) commits an offence and is liable on conviction—

(Repealed 20 of 2023 s. 45)

This section—

Subject to subsections (6) and (8)—

For the purposes of subsection (3), the insurance liabilities are liabilities—

(Repealed 20 of 2023 s. 45)

Where the Authority is satisfied that there are special or unusual circumstances that make it impracticable for an authorized insurer to comply with the requirements of this section, the Authority may, provided the Authority is satisfied with the financial status of the insurer, exempt the insurer in whole or in part from the requirements of this section and the Authority may attach such conditions to, or limitations in respect of, the exemption as the Authority considers appropriate including, without limiting the foregoing, a limitation on the duration of the exemption. (Amended 12 of 2015 s. 2)

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

The requirements under subsection (3) to maintain assets in Hong Kong shall be relieved to the extent, if any, of any assets which an authorized 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)

(Repealed 20 of 2023 s. 45)

An authorized insurer that— (Amended 12 of 2015 s. 44)

commits an offence and is liable to—

(Repealed 20 of 2023 s. 45)

In this section—

Where the Authority is of the opinion that an authorized insurer’s insurance liabilities mentioned in section 25A(3A) would be significantly greater if determined as of a day later than the date as of which the liabilities are required to be determined in accordance with the rules made under section 129, the Authority may, by notice sent to the insurer, direct the insurer to re-determine the liabilities as of a date specified in the notice, and the Authority may specify the manner of re-determination, and, in that case, the insurer must re-determine the liabilities as of the date and in the manner, if any, specified in the notice.

Where an authorized insurer receives a notice under this section, it must forthwith in the manner specified, if any, re-determine the liabilities as of the specified date and, if the liabilities are greater than those determined under section 25A, it must, 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 must continue to so maintain assets in Hong Kong until the next determination of the liabilities under section 25A.

An authorized insurer must, not later than the end of the 3 month period referred to in subsection (2)— (Amended 12 of 2015 s. 45; 20 of 2023 s. 46)

An authorized insurer that— (Amended 12 of 2015 s. 45)

commits an offence and is liable to—

An authorized 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 $1,000 for each day on which the insurer continues to fail to notify the Authority or file the statement after the expiry of the 3 month period referred to in that subsection. (Amended 35 of 1996 s. 21)

In this section—

An authorized insurer may, instead of maintaining assets in Hong Kong as required by section 25A or 25B, 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 Authority, but the terms and conditions attached to such a letter of credit or other commitment are subject to the approval of the Authority. (Amended 20 of 2023 s. 47)

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

Any payment made to the 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 authorized insurer under section 35A(1).

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

In subsection (1)—

Where it is proposed to execute an instrument by which an authorized 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 Authority for its approval of the transfer.

The Authority shall not determine an application made under subsection (1) unless— (Amended 12 of 2015 s. 2)

The documents and particulars referred to in subsection (2)(a) are—

The requirements referred to in subsection (2)(b) are—

The notice referred to in subsection (4) shall include a statement that written representations concerning the transfer may be sent to the 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 Authority shall not determine the application until the Authority has considered any representations made to the Authority before the specified day.

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 Authority.

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

The Authority shall not approve a transfer on application under subsection (1) unless the Authority is satisfied that—(Amended 12 of 2015 s. 2)

and unless in its opinion the transferee’s financial resources and the other circumstances of the case justify the giving of its approval.

On determining an application made under subsection (1), the Authority shall— (Amended 12 of 2015 s. 2)

and if the Authority refuses the application, the Authority shall inform the transferor and the transferee in writing of the reasons for its refusal.

Subject to subsection (2), an instrument giving effect to a transfer approved by the Authority under section 25D shall be effectual in law— (Amended 12 of 2015 s. 2)

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

Except insofar as the 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. (Amended 12 of 2015 s. 2)

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—

Where sections 25D and 25E apply in relation to a transfer to or from members of Lloyd’s, they shall apply as if—

Subject to subsection (1A), any power conferred on the Authority by section 27, 28, 29, 30, 31, 32, 32A, 33, 34 or 35 is exercisable in relation to an authorized insurer on any of the following grounds— (Amended 51 of 1992 s. 6; 12 of 2015 ss. 2 & 46; 20 of 2023 s. 48)

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

Any power mentioned in subsection (1) shall also be exercisable in relation to an authorized insurer on the ground that the 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)

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

Subject to subsection (3A), any power conferred on the Authority by section 32, 32A, 33 or 34 is also exercisable in relation to an authorized insurer on the ground that the Authority is of the opinion that the exercise of the power is desirable for mitigating or controlling the risks posed to or by the business of the insurer. (Added 20 of 2023 s. 48)

No power referred to in subsection (3) or (3AA) is exercisable in relation to an authorized insurer on the ground specified in that subsection in such a way as to require the insurer to amend either— (Amended 12 of 2015 s. 46; 20 of 2023 s. 48)

Any power conferred on the Authority by section 27, 28, 29, 30, 31, 32, 32A, 34(1) or 35(1) is also exercisable, whether or not any of the grounds specified in subsections (1), (2), (3) and (3AA) exists, in relation to— (Amended 8 of 1989 s. 5; 51 of 1992 s. 6; 12 of 2015 s. 2; 20 of 2023 s. 48)

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 may continue in force after the expiration of the period of 10 years from the beginning of the relevant period.

The Authority must not exercise any power conferred on the Authority by section 35 in respect of an authorized insurer unless, in its opinion, the exercise of the powers conferred on the Authority by sections 27, 28, 29, 30, 31, 32, 32A, 33 and 34, or the exercise of those powers alone, in respect of the insurer (and whether or not the Authority 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)

The Authority must, when exercising any power conferred by section 27, 28, 29, 30, 31, 32, 32A, 33, 34 or 35, state the ground on which the Authority is exercising it or, if the Authority is exercising it by virtue of subsection (4), that the Authority is so exercising it; but this subsection does not apply where the Authority has given notice under section 36 or 37 of the proposed exercise of the power.

The grounds specified in subsections (1)(b), (c), (d) and (e), (2), (3) and (3AA) are without prejudice to the ground specified in subsection (1)(a).

The Authority may require an authorized insurer— (Amended 12 of 2015 s. 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.

The Authority may require an authorized insurer— (Amended 12 of 2015 s. 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 or sub-fund maintained by the insurer under section 21B or 25AA or so as to apply only to other investments. (Amended 59 of 1993 s. 11; 20 of 2023 s. 49)

The Authority may require that assets of an authorized 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, the Authority 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.

The 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.

The Authority may direct that for the purposes of any requirement under this section the domestic liabilities of an authorized 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.

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 Authority may allow).

In this section any reference to a domestic liability of an authorized insurer is reference to a liability of the business carried on by the insurer in Hong Kong.

(Repealed 20 of 2023 s. 50)

The Authority may, in the case of an authorized 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 the Authority for the purposes of the requirement under this section as trustee for the insurer.

Section 29(4) shall apply also to a requirement under this section.

Assets of an authorized insurer held by a person as trustee for an authorized 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.

No assets held by a person as trustee for an authorized 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 Authority.

If a mortgage or charge is created by an authorized 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.

The Authority may require an authorized insurer to take all such steps as are requisite to secure that the aggregate of the premiums— (Amended 12 of 2015 s. 2)

shall not exceed a specified amount.

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.

The Authority may require an authorized insurer— (Amended 12 of 2015 s. 2; 20 of 2023 s. 51)

The Authority may require an authorized insurer (other than an insurer that is exempted under the rules made under section 129(1)(cb))—

(Repealed 20 of 2023 s. 51)

Any report or statement required to be made or prepared under subsection (1) or (1A) must be—

In this section—

The Authority may—

The Authority may, in a notice under subsection (1)(a), specify—

The Authority may appoint under subsection (1)(b) any person who appears to the Authority to possess the skills necessary for providing a report in respect of the matter concerned.

If a person is appointed under subsection (1)(b), the Authority—

An authorized insurer must—

Any fees and expenses required to be paid or reimbursed under subsection (5) are recoverable as a civil debt.

Subject to subsection (1A), if an authorized insurer is required to submit to the Authority any statement, report or information on or before a date (original date) under a requirement prescribed by virtue of section 17, the Authority may require the statement, report or information to be submitted on or before a specified date before the original date. (Replaced 20 of 2023 s. 53)

The specified date under subsection (1)—

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

The Authority may require an authorized insurer to furnish it, at specified times or intervals, with information about specified matters being, if the Authority so requires, information verified in a specified manner.

The Authority may— (Amended 12 of 2015 s. 2)

Where by virtue of subsection (2) the Authority or a person authorized by the Authority has power to require the production of any books or papers from an authorized insurer, the Authority or that person shall have the like power to require production of those books or papers from any person who appears to the Authority or the person authorized by the Authority 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.

Any power conferred by or by virtue of subsections (2) and (3) to require an authorized insurer or other person to produce books or papers shall include power— (Amended 12 of 2015 s. 2)

(Repealed 12 of 2015 s. 47)

(Repealed 28 of 2012 ss. 912 & 920)

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

Without prejudice to subsection (1), but subject to section 26(1A) and (5) and subsections (3) and (4), the Authority— (Amended 12 of 2015 s. 2)

The Authority shall not give a direction under subsection (2) in respect of an authorized insurer in relation to which the Court of First Instance has— (Amended 12 of 2015 s. 2)

A direction given under subsection (2) in respect of an authorized insurer which is a non-Hong Kong company must, by virtue of this subsection, apply only to— (Amended 28 of 2012 ss. 912 & 920; 12 of 2015 s. 2; 14 of 2025 s. 134)

A direction given under subsection (2) shall—

Notice of a direction given under subsection (2)(b) shall be published by the Authority in the Gazette and in such other ways as appear to the Authority expedient for notifying the public.

To avoid doubt, the exercise of any power conferred on the Authority by this section is without prejudice to the exercise of any of the powers conferred on the Authority by sections 27, 28, 29, 30, 31, 32, 32A, 33 and 34. (Amended 20 of 2023 s. 54)

Without limiting the generality of section 35(1), a requirement imposed under that section on an authorized insurer may include a requirement that the insurer— (Amended 51 of 1992 s. 8; 12 of 2015 s. 2)

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

If a charge is created or purported to be created by an authorized 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.

For the purposes of this section—

Subsection (2) applies if the Authority is of the opinion that the amount of capital of an authorized insurer, as determined in accordance with the rules made under section 129—

The Authority may, by a written notice served on the insurer, require the insurer—

Subsection (4) applies if the Authority is of the opinion that the amount of capital of an authorized insurer, as determined in accordance with the rules made under section 129—

The Authority may, by a written notice served on the insurer, require the insurer—

The 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 Authority. (Amended 12 of 2015 s. 2)

(Repealed 12 of 2015 s. 49)

Before exercising with respect to an authorized insurer the power conferred by section 27 the Authority shall serve on the insurer a written notice stating— (Amended 12 of 2015 s. 2)

This section shall not apply if the ground on which the 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.

A notice under this section shall give particulars of the ground on which the 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).

Where representations are made in accordance with this section the Authority shall take them into consideration before exercising the power.

Before exercising with respect to an authorized insurer any power or powers conferred by sections 27, 28, 29, 30, 31, 32, 32A, 33, 34 and 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 the person, the Authority must serve on that person a written notice stating— (Amended 12 of 2015 s. 2; 20 of 2023 s. 56)

Unless the 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, the Authority shall before exercising the power or powers serve on the insurer a written notice— (Amended 12 of 2015 s. 2)

A notice under this section shall give particulars of the ground on which the Authority is considering the exercise of the power or powers in question.

Where representations are made in accordance with this section the Authority shall take them into consideration before exercising the power or powers in question.

A requirement imposed on an authorized 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 Authority may allow) unless before the expiration of that period the person whose fitness is in question has ceased to hold the position concerned.

This section does not apply, as respects an authorized insurer, in relation to the exercise of any power conferred by section 27, 28, 29, 30, 31, 32, 32A, 33, 34 or 35 where it is exercised by the Authority— (Amended 12 of 2015 ss. 2 & 51; 20 of 2023 s. 56)

For the purposes of subsection (6), this section does not apply even if—

The Authority may rescind a requirement imposed under section 27, 28, 29, 30, 31, 32, 32A, 33, 34 or 35(1) if it appears to the Authority 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; 12 of 2015 s. 2; 20 of 2023 s. 57)

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.

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.

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 Authority in the Gazette and in such other ways as appear to the Authority expedient for notifying the public. (Amended 12 of 2015 s. 2)

Subject to section 38B(3)(a), immediately upon a direction given under section 35(2)(b) coming into force—

is deemed to be revoked and, accordingly, that person must 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. (Amended 20 of 2023 s. 58)

An authorized insurer is not required to give any notice to the Authority pursuant to section 14(1) or (2), and a person is not required to give any notice to an authorized insurer pursuant to section 14(3), as a consequence of the operation of subsection (1). (Amended 12 of 2015 s. 2)

During the period for which a direction given under section 35(2)(b) is in force in respect of an authorized insurer— (Amended 12 of 2015 s. 2)

It is hereby declared that—

shall be invalid by reason of that contravention.

Where any member or director of an authorized 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. (Amended 12 of 2015 s. 2)

The Manager of an authorized insurer— (Amended 12 of 2015 s. 2)

The Manager of an authorized insurer may require any person who— (Amended 12 of 2015 s. 2)

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.

The Manager of an authorized insurer may— (Amended 12 of 2015 s. 2)

Neither section 13A(1) nor section 14(4) shall apply to any appointment made pursuant to subsection (3)(a)(i) or (ii). (Amended 12 of 2015 s. 53)

An authorized insurer is not required to give any notice to the Authority pursuant to section 14(1) or (2), and a person is not required to give any notice to an authorized insurer pursuant to section 14(3), as a consequence of any appointment, or the revocation of any appointment, made pursuant to subsection (3)(a). (Amended 12 of 2015 s. 2)

During the period for which a direction given under section 35(2)(b) is in force in respect of an authorized 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 generally or in any particular case. (Amended 28 of 2012 ss. 912 & 920; 12 of 2015 s. 2)

In exercising his powers the Manager of an authorized 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— (Amended 12 of 2015 s. 2)

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

A person dealing with the Manager of an authorized insurer in good faith and for value is not concerned to inquire whether the Manager is acting within his powers. (Amended 12 of 2015 s. 2)

During the period for which a direction given under section 35(2)(b) is in force in respect of an authorized 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)

On the hearing of an application under subsection (1)—

shall be entitled to be heard on the application and to call, examine and cross-examine any witness and, if the Authority, the Manager or the member of the insurer so thinks fit, support or oppose the making of the application. (Amended 12 of 2015 s. 2)

The Authority shall revoke a direction given under section 35(2) if— (Amended 12 of 2015 s. 2)

(Repealed 12 of 2015 s. 54)

The revocation under subsection (1) of a direction given under section 35(2) shall—

Notice of a revocation under this section of a direction given under section 35(2)(b) shall be published by the Authority in the Gazette and in such other ways as appear to the Authority expedient for notifying the public. (Amended 12 of 2015 s. 2)

A revocation in writing under subsection (1) of a direction given under section 35(2) includes a copy of the revocation.

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).

An Advisor or Manager may at any time by notice in writing to the Authority resign his office, but any such resignation shall not take effect unless and until it is accepted by the Authority. (Amended 12 of 2015 s. 2)

The Authority may at any time revoke the appointment of an Advisor or Manager. (Amended 12 of 2015 s. 2)

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 Authority shall forthwith— (Amended 12 of 2015 s. 2)

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.

The Authority may at any time determine the remuneration and expenses to be paid by an authorized insurer to an Advisor or Manager appointed in respect of the insurer. (Amended 12 of 2015 s. 2)

Where the Authority has made a determination under subsection (5), the Authority shall— (Amended 12 of 2015 s. 2)

Any remuneration and expenses required by a determination under subsection (5) to be paid by an authorized insurer to an Advisor or Manager— (Amended 12 of 2015 s. 2)

(Repealed 12 of 2015 s. 55)

In subsections (5) and (7)—

Where an authorized insurer ceases to carry on—

the Authority may direct that it shall cease to be authorized to carry on— (Amended 12 of 2015 s. 2)

as the case may be. (Replaced 34 of 1988 s. 5)

Where an insurer authorized to carry on insurance business of any class has not at any time carried on insurance business—

in or from Hong Kong, and at least 12 months have elapsed since the date of authorization, the Authority may direct that it shall cease to be authorized to carry on insurance business—

as the case may be. (Replaced 34 of 1988 s. 5)

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.

Where an authorized insurer ceases to be authorized to carry on insurance business, the Authority may direct that any matters recorded in respect of that insurer in the register kept under section 5H shall be erased. (Amended 12 of 2015 s. 56)

Where an authorized insurer ceases to be authorized to carry on insurance business of any class, the Authority may direct that any matters recorded in respect of that insurer in relation to that class in the register kept under section 5H shall be erased. (Added 34 of 1988 s. 5. Amended 12 of 2015 s. 56)

Any person who—

commits an offence and is liable to—

A person commits an offence if the person, in purported compliance with a requirement imposed under section 34—

A person who commits an offence under subsection (1A) is liable—

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.

An authorized insurer is 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 amount of capital of the insurer, as determined in accordance with the rules made under section 129, is less than the minimum capital amount for the insurer. (Amended 8 of 1989 s. 6; 28 of 2012 ss. 912 & 920; 12 of 2015 s. 2)

(Repealed 20 of 2023 s. 61)

This section does not affect the manner in which, on a winding up, any assets or liabilities are required to be dealt with by virtue of section 45.

The Authority may present a petition for the winding up, in accordance with the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32), of an authorized 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 ; 12 of 2015 s. 2)

In any proceedings on a petition to wind up an authorized insurer presented by the Authority under subsection (1), evidence that the company was insolvent— (Amended 12 of 2015 s. 2)

is evidence that the company continues to be unable to pay its debts, unless the contrary is proved. (Amended 20 of 2023 s. 62)

If, in the case of an authorized 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 Authority that it is expedient in the public interest that the company should be wound up, the Authority 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; 12 of 2015 s. 2)

Where a petition for the winding up of an authorized insurer is presented by a person other than the Authority, a copy of the petition shall be served on the Authority and the Authority shall be entitled to be heard on the petition and to call, examine and cross-examine any witness and, if the Authority so thinks fit, support or oppose the making of a winding-up order. (Amended 12 of 2015 s. 2)

Unless the Court otherwise orders, an authorized 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 Authority who shall be entitled to be heard on the application and to call, examine and cross-examine any witness and, if the Authority so thinks fit, support or oppose the making of the order. (Amended 51 of 1992 s. 12; 12 of 2015 s. 2)

Section 23(1) and (1A) does not have effect in relation to the winding up of an authorized insurer but, subject to subsection (4) and to rules made by virtue of section 49(2), in any such winding up— (Amended 12 of 2015 s. 2; 20 of 2023 s. 63)

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)

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)

Where in respect of a separate fund of an authorized insurer, the value of the assets representing the separate fund exceeds the amount of the liabilities attributable to the part of its business for which the separate fund is maintained, then so much of those assets as represents the excess are to be available for meeting— (Amended 12 of 2015 s. 2; 20 of 2023 s. 63)

To avoid doubt, for the purposes of the operation of subsection (4) in relation to subsection (2)(a), no separate fund of an authorized insurer may be aggregated with any other separate fund of the insurer. (Added 59 of 1993 s. 12. Amended 12 of 2015 s. 2)

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 authorized 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 separate fund or separate funds of the insurer, the Court must include in the order a direction that the money, property or contribution is treated for the purposes of this Ordinance as assets of that separate fund or those separate funds and this Ordinance has effect accordingly. (Amended 28 of 2012 ss. 912 & 920; 12 of 2015 s. 2)

In this section—