Insurance Ordinance

(1)
This section has effect in relation to the winding up of an authorized insurer being a company carrying on long term business.
(Amended
12 of 2015 s. 2
)
(2)
The liquidator shall, unless the Court otherwise orders, carry on the long term business of the insurer with a view to its being transferred as a going concern to another insurer, whether an existing authorized insurer or an insurer formed for that purpose; and, in carrying on that business as aforesaid, the liquidator may agree to the variation of any contracts of insurance in existence when the winding-up order is made but shall not effect any new contracts of insurance.
(Amended
12 of 2015 s. 2
)
(3)
If the liquidator is satisfied that the interests of the creditors in respect of liabilities of the insurer attributable to its long term business require the appointment of a special manager of the insurer’s long term business, he may apply to the Court, and the Court may on such application appoint a special manager of that business to act during such time as the Court may direct, with such powers, including any of the powers of a receiver or manager, as may be entrusted to him by the Court.
(4)
Section 216(2)
and (3) of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (
Cap. 32
) shall apply to a special manager appointed under subsection (3) as they apply to a special manager appointed under that section.
(Amended
28 of 2012 ss. 912 & 920
)
(5)
The Court may, if it thinks fit and subject to such conditions (if any) as it may determine, reduce the amount of the contracts made by the insurer in the course of carrying on its long term business.
(6)
The Court may, on the application of the liquidator, a special manager appointed under subsection (3) or the Authority, appoint an independent actuary to investigate the long term business of the insurer and to report to the liquidator, the special manager or the Authority, as the case may be, on the desirability or otherwise of that business being continued and on any reduction in the contracts made in the course
                of carrying on that business that may be necessary for its successful continuation.
(Amended
12 of 2015 s. 2
)
(7)
Notwithstanding that sanction is required under
sections 199(2)
,
199A(1
)(
b)
and
199B(1)
and
(2)
of the Companies
                (Winding Up and Miscellaneous Provisions) Ordinance (
Cap.
                    32
) for a liquidator to exercise a power to bring or defend any action or
                other legal proceedings in the name of the company, the liquidator may without any
                of the sanctions referred to in those provisions make an application in the name of
                and on behalf of the insurer under
section 24
.
(Amended
28 of 2012 ss. 912 & 920
;
14 of 2016 s. 181
)