Full legislation
s.26
Grounds on which powers are exercisable
(1)
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
)
(a)
that the
Authority
considers the exercise of the power to be desirable for protecting policy
holders or potential policy holders of the insurer against the risk that the
insurer may be unable to meet its liabilities or to fulfil the reasonable
expectations of policy holders or potential policy holders;
(b)
that it appears to
the
Authority—
(Amended
12 of 2015 s. 2
)
(i)
that the insurer has failed to satisfy an obligation to which it is or
was subject by virtue of this Ordinance or any Ordinance repealed
by
this Ordinance;
(ii)
that a body corporate of which it is a subsidiary has failed to satisfy
an obligation to which it is or was subject by virtue of
section
23(6)
or any Ordinance repealed by this Ordinance;
(c)
that it appears to
the
Authority that the insurer has furnished misleading or
inaccurate information to the
Authority
under or for the purposes of any provision of this Ordinance or any Ordinance
repealed
by
this Ordinance;
(d)
that
the
Authority is not satisfied that adequate arrangements are in
force or will be made for the reinsurance of risks against which persons are
insured by the insurer in the course of carrying on business, being risks of a
class in the case of which
the
Authority considers that such arrangements are
required;
(e)
that there exists a ground on which
the
Authority would be prohibited by
section 8(2)
or
(3)(a) or
(b)
or
8A(2)
from authorizing the insurer if it were to
make application in that behalf;
(Amended
17 of 2020 s. 15
)
(f)
that it appears to
the
Authority that the circumstance described in
section
35AA(1)
or
(3) exists.
(Added
25 of 1994 s. 11
)
(1A)
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
)
(2)
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)
(3)
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
)
(3AA)
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
)
(3A)
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
)
(a)
the wording of any policy or class of policies; or
(b)
the premiums payable in respect of any policy or class of policies.
(Added
50 of 1992 s. 5
)
(4)
Any power conferred on the
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
)
(a)
any insurer authorized to carry on any class of insurance
business;
(b)
an
authorized insurer in the case of which a person has, after
the commencement of this Ordinance, become a controller within the meaning of
section
9(1
)(
a
)(
iii)
,
(Amended
17 of 2020 s. 27
)
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.
(5)
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
)
(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.
(7)
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)
.