Latest Legislative Developments

Insurance Companies Ordinance (Amendment of Part 1 of Third Schedule) Regulation 2003

Insurance Companies Ordinance (Amendment of Part 8 of Third Schedule) Regulation 2003

The Insurance Companies Ordinance (Amendment of Part 1 of Third Schedule) Regulation 2003 ("Part 1 Amendment Regulation") [PDF] and the Insurance Companies Ordinance (Amendment of Part 8 of Third Schedule) Regulation 2003 ("Part 8 Amendment Regulation") [PDF] were gazetted on 17 January 2003. They came into operation on 3 April 2003.

The Part 1 Amendment Regulation adds a definition of "Hong Kong long term insurance business" to Part 1 of The Third Schedule to the Insurance Companies Ordinance (Cap.41) ("ICO"), and specifies the audit requirement in respect of Form HKL1 prescribed by the Part 8 Amendment Regulation. The purposes of this Amendment Regulation are to provide a clear delineation of what insurance business constitutes Hong Kong long term insurance business and to ensure the integrity of information relating to such business to be submitted to the Insurance Authority ("IA") by a long term insurer.

The Part 8 Amendment Regulation imposes a duty on a long term insurer to submit annually to the IA specific information in the new forms of annual returns (viz. Forms HKL1, HKL2 and HKL3) for its Hong Kong long term insurance business.

Form HKL1 relates to the revenue account for each class of Hong Kong long term insurance business. Form HKL2 and Form HKL3 relate respectively to the valuation summary and the valuation balance sheet as at the date up to which the valuation is made.

All Forms HKL1, HKL2 and HKL3 are required to be certified by the chief executive and two directors of a long term insurer.

Under the Amendment Regulations, long term insurers are required to submit the information in Forms HKL1, HKL2 and HKL3 commencing with the financial year ending on or after 31 December 2003. Pursuant to section 20(1A) of the ICO, such submission shall be made within 4 months after the end of the relevant financial year.

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