Cap 41F s 9 Additional business of the nature of general business (INSURANCE COMPANIES (MARGIN OF SOLVENCY) REGULATION; INSURANCE COMPANIES ORDINANCE)

Contents of Section

Chapter:	41F	Title:	INSURANCE COMPANIES (MARGIN OF SOLVENCY) REGULATION	Gazette Number:
Section:	9	Heading:	Additional business of the nature of general business	Version Date:	30/06/1997

(1) For additional business regarded as long term business by virtue of paragraph 3 of Part 1 of the First Schedule to the Ordinance, the required margin of solvency shall be the amount applicable to the insurer according to the following Table-

TABLE

Case	Amount Applicable
1. The relevant premium income relating to the additional business of the insurer in its last preceding financial year, or the relevant claims outstanding of the insurer as at the end of its last preceding financial year relating to the additional business, whichever is the greater, did not exceed $200 million or its equivalent.	One-fifth of the said income in that year, or one-fifth of the said claims outstanding as at the end of that year, as the case may be.
2. The said income in that year, or the said claims outstanding as at the end of that year, whichever is the greater, exceeded $200 million or its equivalent.	The aggregate of $40 million and- (a) one-tenth of the amount by which the said income in that year exceeded $200 million; or (b) one-tenth of the amount by which the said claims outstanding as at the end of that year exceeded $200 million, as the case may be, or its equivalent. (35 of 1996 s. 35)

In the case where the additional business is not ancillary to the principal risk of long term business, the amount applicable shall not be less than $10 million or its equivalent. (35 of 1996 s. 35)
(2) In this section, "relevant premium income" (有關保費收入) has the meaning as it has in section 10(4) of the Ordinance.
(3) In this section, "relevant claims outstanding" (有關未決申索) has the same meaning as in section 10(4)(d) of the Ordinance. (35 of 1996 s. 35)

(Enacted 1995)