FIRE INSURANCE.

Press, Volume LXIII, Issue 19166, 24 November 1927, Page 8

FIRE INSURANCE.

PROVISIONS OF BILL.

SUBSTANTIAL DEPOSITS ASKED.

[THE PEBSS SpecUl Service.]

WELLINGTON, November 23,

In the early hours of the morning the Insurance Companies Deposits Amendment Bill was introduced in the House of Representatives. If the Bill becomes law every agent in New Zealand of a British underwriter or ot British underwriters, and every person in the Dominion acting as an underwriter will have to deposit on or before .January Ist next with the Public Trustee £15,000 in respect of are insurance business, £15,000 in respect of employers' liability insurance business, and £SOOO in respect of all other classes of insurance business. The deposits, which will earn the current rate of interest (at present 51 per cent.) paid to all companies, are to be held as security in respect of all policies or other contracts of insurance of the classes mentioned, effected or negotiated! by the agents or the underwriters.

The deposit New Zealand agents of foreign underwriters will be required to lodge is £50,000. Another clause in the Bill adds insurance against earthquake to the list of exceptions to the definition of the term "insurance business." The Bill seeks, also, to apply to agents and underwriters the provisions of the principal Act relative to companies. The business of fire insurance is defined as follows: "Any company carrying on insurance business that issues or undertakes liability under policies of insurance against loss by or incidental to fire, whether any such policy includes other risks or not, shall, for the purposes of the principal Act, be deemed to carry on the business of fire insurance, save that for the purposes of that Act a company carrying on the business of marine insurance shall not be deemed to carry on the business of fire insurance by reason only that loss by fire is one of the various risks covered by the marine policies issued by such company, and a company carrying on the business of insurance against earthquake shall not be deemed to carry on the business of fire insurance by reason only that it insures against loss by fire consequent on earthquake." Replving to questions after the introduction of the measure in the House this morning, the Attorney-General (the Hon. F. J. Rolleston) said it was absurd to suggest that the provisions of the Bill would drive Lloyds out of New Zealand. The State had nothing hut friendly feeling towards Lloyrfe He estimated that the total expenses the agents would be put to through the requirements of the Bill would be between £3OO and £4OO a year by way of interest on the amount lodged.