Hong Kong Regulations

MERCHANT SHIPPING (LOCAL VESSELS) (COMPULSORY THIRD PARTY RISKS INSURANCE) REGULATION - SECT 8

Suspension or revocation of approval

(1) The Director may suspend or revoke the approval granted under section 5(1)
of an approved insurer if he reasonably suspects that the approved insurer has
failed to comply with—

   (a)  any condition subject to which the approval has been granted; or

   (b)  any provision of this Regulation or the Ordinance.

(2) The Director shall not, unless it appears to him that the interests of
policy holders would otherwise be detrimentally affected, suspend or revoke
the approval of an approved insurer without giving the approved insurer an
opportunity to make representations (either orally or in writing or both) as
to why the approval should not be suspended or revoked.

(3) If the Director suspends or revokes the approval of an approved insurer,
he shall, by registered post addressed to the last known address of the
approved insurer, give written notice of the suspension or revocation to the
approved insurer and shall include in the notice a statement setting out the
reasons for the suspension or revocation.

(4) If the Director suspends or revokes the approval of an approved insurer,
he shall give written notice of the suspension or revocation to the Insurance
Authority as soon as practicable thereafter.

(5) The suspension or revocation of the approval of an approved insurer shall
take effect on the date of receipt by the approved insurer of the notice given
under subsection (3) or on such later date, if any, as is specified in the
notice.

(6) Subject to section 17, the suspension or revocation of the approval of an
approved insurer—

   (a)  shall not affect the validity of any policy of insurance or
        certificate of insurance issued by the approved insurer and which is
        still in force at the time the suspension or revocation takes effect
        under subsection (5); and

   (b)  shall not affect the rights, liabilities or obligations of the
        approved insurer under sections 6, 10, 11, 12 and 16 and sections 23D,
        23E, 23F, 23G, 23H and 23I of the Ordinance.

(7) The Director may rescind a suspension if it appears to him that it is no
longer necessary for the suspension to continue.