Hong Kong Regulations

SECURITIES AND FUTURES (INSURANCE) RULES - SECT 5

Commission may approve master policy of insurance

(1) With the exception of the policies of insurance that may be approved under
subsection (2), the Commission may, in respect of any period of insurance,
approve one policy of insurance in respect of a regulated activity to be the
master policy of insurance for all specified  licensed corporations licensed
for that regulated activity.

(2) The Commission may, in respect of any period of insurance-

   (a)  approve one policy of insurance in respect of the regulated activity
        of dealing in securities to be the master policy of insurance for all
        specified licensed corporations that are exchange participants of the
        Stock Exchange Company licensed for that regulated activity; and

   (b)  approve one policy of insurance in respect of the regulated activity
        of dealing in futures contracts to be the master policy of insurance
        for all specified licensed corporations that are exchange participants
        of the Futures Exchange Company licensed for that regulated activity.

(3) The Commission shall not approve a master policy of insurance under this
section unless the insurer of the master policy of insurance

(or, if the master policy of insurance is jointly undertaken by more than one
insurer, each insurer) has the specified credit rating on the date of the
approval.