Hong Kong Regulations

INSURANCE COMPANIES (GENERAL BUSINESS) (VALUATION) REGULATION - SECT 2

Interpretation

(Past version on 01/07/1997).
(Past version on 30/06/1997).

In this Regulation-

"adjusted gross premium income" (經調整的毛保費收入) means the sum
obtained by dividing the amount of gross premium income in a financial year by
the number of days in that financial year and multiplying the result by 365;

"deferred acquisition costs" (遞延取得成本) means that part of the costs
of acquisition of an asset which relates to the unexpired period of risk which
is carried forward from one accounting period to the next;

"gross premium income" (毛保費收入), in relation to a financial year,
means the premiums paid or payable to an insurer in respect of contracts
written or renewed in that financial year before deducting commissions of
agents or brokers payable thereon but after deducting any discounts specified
in policies or refunds of premiums made in respect of any termination or
reduction of risks;

"gross premiums receivable" (可收取毛保費) means the premiums payable to
an insurer in respect of contracts written or renewed by an insurer as at the
end of a financial year before deducting commissions of agents or brokers
payable thereon;

"independent qualified valuer" (獨立合格估價師) means a person-

   (a)  holding a professional qualification in valuing properties recognized
        by the Insurance Authority and having post-qualification experience in
        valuing properties in the location and category of the property which
        is the subject of valuation within 3 years before the relevant date of
        the relevant valuation; and

   (b)  who is not employed by the insurer whose property is the subject of
        valuation, a subsidiary or associate company of the insurer, or the
        holding company of the insurer;

"insurer" (保險人) means-

   (a)  a company which is seeking authorization or which is authorized under
        section 8 of the Ordinance to carry on insurance business; or

   (b)  an association of underwriters which is seeking approval or which is
        approved under section 6(1)(c) of the Ordinance;

"listed" (上市) means listed on a recognized stock market as defined in
section 1 of Part 1 of Schedule 1 to the Securities and Futures Ordinance (
Cap 571) or on a stock exchange outside Hong Kong which is recognized by the
Insurance Authority as being of a standing not lower than that of such
a recognized stock market, and "unlisted" (非上市) shall be construed
accordingly; (23 of 1998 s. 2; 5 of 2002 s. 407) "market value of the holding
of a unit, or other beneficial interest, in a unit trust or mutual fund"
(單位信託或互惠基金中的單位權益或其他實益權益的市值)
means the price at which the manager under the trust scheme or mutual fund
scheme would purchase the holding of a unit or other beneficial interest if he
is required to do so;

"middle market quotation" (中間市場報價), in relation to a listed share
or security-

   (a)  for which 2 closing prices are quoted on the relevant stock  exchange,
        means the average of the 2 closing prices so quoted for the
        relevant date or, if no closing prices are quoted on that day, the
        most recent day prior to that day for which closing prices for the
        share or security have been quoted; and

   (b)  for which 1 closing price is quoted on the relevant stock  exchange,
        means the closing price so quoted for the relevant date or, if no
        closing price is quoted on that day, the most recent day prior to that
        day for which a closing price for the share or security has been
        quoted,
and for the purpose of this definition, "relevant stock exchange"
(有關證券交易 所) means the stock exchange where the share or security
is listed and where the share or security is listed in more than one stock
exchange, the principal place of listing of the share or security;

"net book value" (帳面淨值), in relation to an asset, means the cost of
acquisition of the asset less its accumulated depreciation;

"net tangible assets" (有形資產淨額), in relation to an insurer or a
company, means the surplus of the total tangible assets value of the insurer
or company over the amount of its total liabilities (including contingent and
prospective liabilities, but excluding liabilities in respect of its share
capital), and for the avoidance of doubt, it is declared that intangible
assets (including deferred acquisition costs) are to be excluded in the
calculation of net tangible assets;

"ready market price" (現有市場價格), in relation to an unlisted share or
security-

   (a)  for which 2 closing prices are quoted on a secondary market or a
        market acceptable to the Insurance Authority, means the average of the
        2 closing prices so quoted for the relevant date or, if no closing
        prices are quoted on that day, the most recent day prior to that day
        for which closing prices for the share or security have been quoted;
        and

   (b)  for which 1 closing price is quoted on a secondary market or a market
        acceptable to the Insurance Authority, means the closing price so
        quoted for the relevant date or, if no closing price is quoted on that
        day, the most recent day prior to that day for which a closing price
        for the share or security has been quoted;

"recent audited accounts" (近期審計帳目) means audited accounts and
statements relating to a period ending on a day within 2 years before the
relevant  date;

"recent valuation" (近期估值) means a valuation made within 3 years before
the relevant date;

"relevant date" (有關日期), in relation to the valuation of any asset or
liability for any purpose for which this Regulation applies, means the date
when the asset or liability falls to be valued for that purpose;

"security" (證券) means any debenture, loan stock, bond or note of, or
issued by, any body, whether incorporated or unincorporated, or of any
government or local government authority, but does not include any share or
any unit, or other beneficial interest, in any unit trust or mutual fund;

"total eligible asset value" (合資格資產總值), in relation to an
insurer, means the total value of the assets of the insurer (the values of
which are qualified to be admitted under this Regulation) as assessed in
accordance with this Regulation other than section 14. (Enacted 1995)

"adjusted gross premium income" (經調整的毛保費收入)

"deferred acquisition costs" (遞延取得成本)

"gross premium income" (毛保費收入)

"gross premiums receivable" (可收取毛保費)

"independent qualified valuer" (獨立合格估價師)

"insurer" (保險人)

"listed" (上市)

"unlisted" (非上市) "market value of the holding of a unit, or other
beneficial interest, in a unit trust or mutual fund"
(單位信託或互惠基金中的單位權益或其他實益權益的市值)
"middle market quotation" (中間市場報價) "relevant stock exchange"
(有關證券交易所) "net book value" (帳面淨值) "net tangible assets"
(有形資產淨額) "ready market price" (現有市場價格) "recent audited
accounts" (近期審計帳目) "recent valuation" (近期估值) "relevant
date" (有關日期) "security" (證券) "total eligible asset value"
(合資格資產總值)