Insurance Ordinance

(1)
Subsection (2) applies to an authorized insurer that carries on long term
                business and general business and that
is—
(a)
an HK insurer;
(b)
a designated insurer; or
(c)
a non-HK insurer in relation to which a permission under
section
                        25AAC(1)
is in effect.
(2)
The insurer must maintain a separate account and a separate fund for the part
                of its business that is general business.
(3)
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—
(a)
the insurer is a non-HK insurer;
(b)
the insurer is not a designated insurer;
(c)
there is no permission under
section 25AAC(1)
that is in effect
                    in relation to the insurer;
(d)
there is no election under
section 25AAD(1)
that is in effect in
                    relation to the insurer.
(4)
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—
(a)
the part that is general reinsurance business with offshore risk;
(b)
the part that is not general reinsurance business with offshore
                    risk.
(5)
Subsection (6) applies to a non-HK insurer in relation to which an election
                under
section 25AAD(1)
is in effect.
(6)
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.
(7)
An authorized insurer that fails to comply with subsection (2), (4) or (6)
                commits an offence and is liable on
conviction—
(a)
to a fine of $1,000,000; and
(b)
in the case of a continuing offence—to a further fine of $20,000 for each
                    day during which the offence continues.
(8)
In this
section—
general reinsurance
                    business with offshore risk
(
具離岸風險的一般再保險業務
) means any general business that—
(a)
is reinsurance business; and
(b)
does not fall within paragraph (b) or (c) of the definition of
general business with onshore risk
in
section
                            25A(12)
.