Hong Kong Regulations

INSURANCE COMPANIES (GENERAL BUSINESS) (VALUATION) REGULATION - SECT 3

Land and buildings

(1) Subject to subsection (2), the value of any land or building must be not
greater than-

   (a)  its net book value where-

        (i)    its open market value as assessed by an independent qualified 
               valuer or as assessed under subsection (2) in the latest
               recent valuation of the land or building does not fall below
               its net book value; or

        (ii)   there is no recent valuation of the land or building
               commissioned by the insurer who holds the land or building or
               under subsection (2); or

   (b)  its open market value as assessed by an independent qualified  valuer
        or as assessed under subsection (2) in the latest recent valuation
        where such open market value falls below its net book value; or

   (c)  its net book value plus up to 75% of the surplus of its open market
        value as assessed by an independent qualified valuer or as assessed
        under subsection (2) in the latest recent valuation over its net book 
        value.

(2) The Insurance Authority may require an insurer to have the open market
value of its land or building assessed by the Commissioner of Rating and
Valuation, if the Insurance Authority is of the opinion that the open market
value of the land or building as assessed by an independent qualified valuer
or the net book value thereof does not reflect the true value. (Enacted 1995)