Hong Kong Regulations

INSURANCE COMPANIES (MARGIN OF SOLVENCY) REGULATION - SECT 2

Interpretation

In this Regulation, unless the context otherwise requires-

"deposit back arrangement" (回存安排), in relation to any contract of
reinsurance, means an arrangement whereby an amount is deposited by the
reinsurer with the cedant;

"first calculation" (第一計算法) and "second calculation"
(第二計算法) have the meaning given in section 4(1) to (3);

"margin of solvency" (償付準備金) means the excess of the value of an
insurer's assets over the amount of its liabilities;

"mathematical reserves" (數理儲備金) means the provision made by an
insurer to cover liabilities (excluding liabilities which have fallen due and
liabilities arising from deposit back arrangements) arising under or in
connection with contracts for long term business;

"pure reinsurer" (純再保險人) means an insurer whose insurance business
is restricted to reinsurance;

"required margin of solvency" (規定償付準備金) means a
margin of solvency the amount of which shall constitute the amount to be
prescribed or determined for the purposes of section 8(3)(a)(ii)(B) and
(iii)(B) of the Ordinance. (Enacted 1995)

"deposit back arrangement" (回存安排)

"first calculation" (第一計算法) and "second calculation"
(第二計算法)

"margin of solvency" (償付準備金)

"mathematical reserves" (數理儲備金)

"pure reinsurer" (純再保險人)

"required margin of solvency" (規定償付準備金)