Insurance Ordinance

(1)
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
—
(a)
are entered in that account; and
(b)
are carried to and form that fund or sub-fund with an appropriate name.
(Replaced
20 of 2023 s. 39
)
(1A)
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
)
(2)
An authorized insurer must maintain any books of account and other records that
                are necessary for
identifying—
(a)
the assets representing each fund or sub-fund maintained by the insurer
                    under
section 21B
; and
(b)
the liabilities attributable to the part of its business for which the fund
                    or sub-fund is maintained.
(Replaced
20 of 2023 s. 39
)
(3)
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
)
(3A)
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
)
(3B)
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—
(a)
the amount of the liabilities attributable to the parts of its business for
                    which the funds are maintained; and
(b)
the amount that is required to be held in those funds in accordance with
                    the rules made under
section 129(1
)(
c)
.
(Added
20 of 2023 s. 39
)
(3C)
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—
(a)
the amount of the liabilities attributable to the parts of its business for
                    which the funds are maintained; and
(b)
the amount that is required to be held in those funds in accordance with
                    the rules made under
section 129(1
)(
c)
.
(Added
20 of 2023 s. 39
)
(4)
(Repealed
59 of 1993 s. 8
)
(5)
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
)
(6)
In this
section—
account balance
(
帳目結餘
), in relation to a fund, means the accumulation of contributions
                paid into the fund, reduced by applicable expenses, fees, charges, or actual
                investment loss, and increased by actual investment income or interests credited to
                the fund.
(Added
20 of 2023 s. 39
)