Hong Kong Regulations

INSURANCE COMPANIES (DETERMINATION OF LONG TERM LIABILITIES) REGULATION - SECT 7

Avoidance of future valuation strain

The amount of the liability determined in respect of a group of contracts of
insurance shall not be less than such amount as, if the assumptions adopted
for the valuation were to remain unaltered and were fulfilled in practice,
would enable liabilities similarly determined at all times in the future to be
covered from resources arising solely from the contracts and the assets
covering the amount of the liability determined at the current valuation.
(Enacted 1995)