Insurance Ordinance

(1)
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
)
(1A)
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
)
(2)
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—
(a)
for an authorized insurer described in
section 21B(1)
or
                        (7)—
section 22(3)
, (3A) and (3B); or
(b)
for an authorized insurer described in
section
                        21B(4)
—
section 22(3)
, (3A) and (3C),
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
)
(3)
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.
(4)
Any mortgage or charge
                is
                void to the extent to which it contravenes subsection
                (1) or
                (1A).
(5)
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
)
(6)
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.
(7)
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
)