Hong Kong Regulations

INSURANCE COMPANIES (DETERMINATION OF LONG TERM LIABILITIES) REGULATION - SECT 16

Nature and term of assets

The determination of the amount of long term liabilities shall take into
account the nature and term of the assets representing those liabilities and
the value placed upon them and shall include prudent provision against the
effects of possible future changes in the value of the assets on-

   (a)  the ability of the insurer to meet its obligations arising under
        contracts for long term business as they arise; and

   (b)  the adequacy of the assets to meet the liabilities as determined in
        accordance with sections 5 to 15. (Enacted 1995)