Hong Kong Ordinances

INSURANCE COMPANIES ORDINANCE - SECT 2

Interpretation

(1) In this Ordinance, unless the context otherwise requires-

"Advisor" (顧問), in relation to an insurer, means the person appointed,
pursuant to section 35(2)(a), to be the Advisor of the insurer; (Added 51 of
1992 s. 2)

"annuities on human life" (人壽年金) does not include superannuation
allowances and annuities payable out of any fund applicable solely to the
relief and maintenance of persons engaged or who have been engaged in any
particular profession, trade or employment, or of the dependants of such
persons;

"appointed insurance agent" (獲委任保險代理人) means an
insurance agent appointed by and registered with an insurer as an agent;
(Added 76 of 1994 s. 3)

"authorized" (獲授權), in relation to an insurer, means authorized under
section 8, or deemed under section 61(1) or (2) to be so authorized, to
carry on insurance business, and "authorization" (授權) has the
corresponding meaning;

"authorized insurance broker" (獲授權保險經紀) means an
insurance broker who is-

   (a)  authorized by the Insurance Authority under section 69; or

   (b)  a member of a body of insurance brokers which is approved by the
        Insurance Authority under section 70; (Added 76 of 1994 s. 3)

"body corporate" (法人團體) includes a body incorporated outside Hong
Kong;

"chief executive" (行政總裁) has the meaning assigned to it by
section 9(2);

"class" (類別), in relation to insurance business, means a class of
insurance business which under section 3 is relevant for the purposes of this
Ordinance;

"client monies" (客戶款項) means monies an insurance broker has received
from or held on behalf of a policy holder or potential policy holder and to
which he is not entitled; (Added 76 of 1994 s. 3)

"code of practice" (實務守則) means a code of practice approved by the
Insurance Authority under section 67; (Added 76 of 1994 s. 3)

"company" (公司) has the meaning assigned to it by section 2(1) of the
Companies Ordinance ( Cap 32) and includes a company incorporated outside Hong
Kong to which Part XI of that Ordinance applies;

"controller" (控權人) has the meaning assigned to it by section 9, but does
not include a Manager; (Amended 51 of 1992 s. 2)

"director" (董事) includes any person occupying the position of director by
whatever name called;

"financial year" (財政年度), in relation to a body corporate, has the
meaning assigned to it by section 2(1) of the Companies Ordinance ( Cap 32);

"former accountant" (前任會計師) means a person who was formerly the
accountant of an insurer or a former insurer; (Added 59 of 1993 s. 2)

"former actuary" (前任精算師) means a person who was formerly the actuary
of an insurer or a former insurer; (Added 59 of 1993 s. 2)

"former auditor" (前任核數師) means a person who was formerly the auditor
of an insurer or a former insurer; (Added 59 of 1993 s. 2)

"former insurer" (前任保險人) means a person who was formerly an insurer;
(Added 59 of 1993 s. 2)

"general business" (一般業務) means insurance business not being
long term  business;

"gross premium income" (毛保費收入) has the meaning assigned to it by
section  10 (4)(c);

"holding company" (控股公司) has the meaning assigned to it by
section 2(7) of the Companies Ordinance ( Cap 32);

"insurance agent" (保險代理人) means a person who holds himself out to
advise on or arrange contracts of insurance in or from Hong Kong as an agent
or subagent of one or more insurers; (Added 76 of 1994 s. 3)

"Insurance Authority" (保險業監督) means the Insurance Authority
appointed under section 4;

"insurance broker" (保險經紀) means a person who carries on the business
of negotiating or arranging contracts of insurance in or from Hong Kong as the
agent of the policy holder or potential policy holder or advising on matters
related to insurance; (Added 76 of 1994 s. 3)

"insurance intermediary" (保險中介人) means an insurance agent or an
insurance  broker; (Added 76 of 1994 s. 3)

"insurer" (保險人) means a person carrying on insurance business but does
not include Lloyd's;

"Lloyd's" (勞合社) means the society of underwriters known in the United
Kingdom as Lloyd's;

"long term business" (長期業務) means any of the classes of insurance
business specified in Part 2 of the First Schedule;

"Manager" (經理), in relation to an insurer, means the person appointed,
pursuant to section 35(2)(b), to be the Manager of the insurer; (Added 51 of
1992 s. 2)

"policy" (保單)-

   (a)  in relation to long term business, includes an instrument evidencing a
        contract to pay an annuity upon human life;

   (b)  in relation to insurance business of any other class, includes any
        policy under which there is for the time being an existing liability
        already accrued or under which a liability may accrue;

"policy holder" (保單持有人) means the person who for the time being is
the legal holder of a policy for securing a contract with an insurer, and-

   (a)  in relation to such long term business as consists in the granting of
        annuities upon human life, includes an annuitant; and

   (b)  in relation to insurance business of any other kind, includes a person
        to whom, under a policy, a benefit is due or a periodic payment is
        payable;

"premiums receivable" (可收取保費) has the meaning assigned to it by
section  10 (5);

"prescribed" (訂明) means prescribed by regulations made under section 59;
(Amended 35 of 1996 s. 2)

"prescribed person" (訂明人士) means-

   (a)  an auditor, former auditor, actuary or former actuary-

        (i)    of an insurer or a former insurer; and

        (ii)   appointed under section 15 or paragraph 4(1A) of Part 1 of the
               Third Schedule; or (Amended 26 of 1994 s. 2)

   (b)  an accountant, former accountant, actuary or former actuary-

        (i)    of an insurer or a former insurer; and

        (ii)   appointed by the insurer or former insurer, as the case may be,
               in compliance with a requirement under section 35(1); or (Added
               59 of 1993 s. 2. Amended 76 of 1994 s. 3)

   (c)  an auditor or former auditor of an insurance broker or a former
        insurance broker appointed under section 72; (Added 76 of 1994 s. 3)

"subordinated loan stock" (後償債權股額), in relation to a company,
means a loan which in the event of the winding up of the company is repayable
by the company only after all of the liabilities of the company, other than
those in respect of share capital, have been paid in full;

"subsidiary" (附屬公司) has the meaning assigned to it by section 2(4),
(5) and (6) of the Companies Ordinance ( Cap 32);

"working day" (工作日) means any day other than a public holiday or a gale
warning day as defined in section 71(2) of the Interpretation and General 
Clauses Ordinance ( Cap 1). (Added 25 of 1994 s. 2) (Amended 25 of 1994 s. 2)

(2) References in this Ordinance to an insurer include references to an
insurer formed or established in Hong Kong and carrying on insurance business
outside Hong Kong, whether or not the insurer is also carrying on insurance
business in Hong Kong.

(3) For the purposes of this Ordinance, a person shall be deemed to carry on a
class of insurance business in or from Hong Kong if-

   (a)  he opens or maintains an office or agency in Hong Kong for the purpose
        of carrying on that class of insurance business in or from Hong Kong;
        or

   (b)  he holds himself out as carrying on that class of insurance business
        in or from Hong Kong.

(4) A person shall not be deemed to carry on insurance business in or from
Hong Kong by reason only that any person acts as his agent for the purpose of
settling claims under contracts of goods in transit insurance entered into
wholly outside Hong Kong in respect of goods consigned to Hong Kong.

(5) A person shall not be deemed to be within the meaning of any provision of
this Ordinance a person in accordance with whose directions or instructions
the directors of a company or other body corporate or any of them are
accustomed to act by reason only that the directors of the company or body act
on advice given by him in a professional capacity.

(6) An insurer which is a company shall be subject to the Companies  Ordinance
( Cap 32) as well as to this Ordinance, except that, where there is any
conflict or inconsistency between the Companies Ordinance ( Cap 32) and this
Ordinance, the provisions of this Ordinance shall prevail. (Added 51 of 1992
s. 2)

(7) For the purpose of this Ordinance-

        (a)	"captive insurer" (專屬自保保險人) means a company ("relevant 
company") which carries on general business only and such business-

        (i)    does not relate to any liabilities or risks in respect of which
               persons are required by any Ordinance to be insured; and

        (ii)   is restricted to the insurance and reinsurance of risks of the
               companies within the same grouping of companies to which the
               relevant  company belongs;

   (b)  the following companies shall be regarded as within the same grouping
        of companies to which the relevant company belongs-

        (i)	a company ("first company") which belongs to the relevant 
company's group of companies;

        (ii)	a company ("second company") in respect of which the relevant 
company or the first company holds, or is entitled to control the exercise of,
not less than 20% but not more than 50% of the voting power at any general
meeting of the second company;

        (iii)	a company ("third company") where the third company is a 
subsidiary of the second company;

        (c)	"group of companies" (公司集團) has the meaning assigned to it 
under section 2 of the Companies Ordinance ( Cap 32). (Added 29 of 1997 s. 2)

"Advisor" (顧問)

"annuities on human life" (人壽年金)

"appointed insurance agent" (獲委任保險代理人)

"authorized" (獲授權)

"authorization" (授權)

"authorized insurance broker" (獲授權保險經紀)

"body corporate" (法人團體)

"chief executive" (行政總裁)

"class" (類別)

"client monies" (客戶款項)

"code of practice" (實務守則)

"company" (公司)

"controller" (控權人)

"director" (董事)

"financial year" (財政年度)

"former accountant" (前任會計師)

"former actuary" (前任精算師)

"former auditor" (前任核數師)

"former insurer" (前任保險人)

"general business" (一般業務)

"gross premium income" (毛保費收入)

"holding company" (控股公司)

"insurance agent" (保險代理人)

"Insurance Authority" (保險業監督)

"insurance broker" (保險經紀)

"insurance intermediary" (保險中介人)

"insurer" (保險人)

"long term business" (長期業務)

"Lloyd's" (勞合社)

"Manager" (經理)

"policy" (保單)

"policy holder" (保單持有人)

"premiums receivable" (可收取保費)

"prescribed" (訂明)

"prescribed person" (訂明人士)

"subordinated loan stock" (後償債權股額)

"subsidiary" (附屬公司)

"working day" (工作日)

"captive insurer" (專屬自保保險人)

"group of companies" (公司集團)