Hong Kong Regulations

INSURANCE COMPANIES (MARGIN OF SOLVENCY) REGULATION - SECT 3

Determination of margins of solvency

(1) Where an insurer carries on long term business and owing to the nature of
that business more than one margin of solvency is produced in respect of that
business by the operation of this Regulation, the margins in question shall be
aggregated as regards the insurer in order to arrive at the insurer's
required margin of solvency for long term business.

(2) The amount of liabilities of an insurer arising under or in connection
with contracts for long term business for the purpose of calculating the
required margin of solvency shall be determined in accordance with the
Insurance Companies (Determination of Long Term  Liabilities) Regulation (
Cap 41 sub. leg. E). (Enacted 1995)