LIFE ASSURANCE COMPANIES ACT.

Evening Star, Issue 3509, 22 May 1874, Page 3

LIFE ASSURANCE COMPANIES ACT.

The Life Assurance Companies Act, passed last session, was received with a considerable amount of disfavor by several of the assurance companies in Great Britain ; and an effort was made by the leading companies to induce the Imperial Government to refuse its sanction to the Bill; on the ground thai its provisions were at variance with the Imperial Life Assurance Companies Act, 1870. By the last mail, despatches were received from the Agent-General forwarding the correspondence which took place on the question, and announcing that the. Act being within the powers of Colonial Legislatures, Her Majesty would not be advised to refuse her assent. A similar Act has been passed in New Zealand, and has been dealt with- in the same manner. Appended is the communication addressed to the Secretary of State for the Colonies, and signed by the managers of nine of the leadmg life assurance companies in the United Kingdom ; London, March 6, 1874.—Sir,.—With reference to the- transcripts of the Victorian Act No. 474, and the New Zealand Act No 18 of 1873, sent to Mr Hendricks in your letter of the Htli inst., we have to observe that whilst these two Acts differ frem each other in some respects,' they both contain many of the provirions of the Imperial Life Assurance Act, 1870. The object of the Colonial Legislature is, no doubt, the greater protection of the life policyholders in the respective .Colonies; but we submit that the requirements of. the Imperial Act, by which British officers are compelled to form a separate life assurance fund for the absolute security of the life, policy and annuity holders, will prevent some of the officers registering in victoria with “secured assets,” inasmuch as any assets thus pledged for the absolute security of a portion of their assurers reduces the security to the remainder of their life constituents, and. is therefore opposed to the spirit and letter of the Imperial Act; and that to require, more especially from officers registering “ without secured assets,” separate returns and schedules and valuations, applicable only to the business of each Colony, whilst not adding one iota to the protection of the policy-holder, would be so vexatious and irksome to the British companies as to lead, in many instances, to their retirement from the field to which they have been hitherto welcomed by the colonists malihg provisions for their families by life policies. Itis submittedthat the true condition of the insurance companies cannot possibly be demonstrated by fragmentary returns, now for Victoria and New Zealand, and shortly, no' doubt, to be supplemented by similar requirements from other Colonies. The real status of an insurance company can only be made apparent by returns embracing its business as a whole, and' it is respectfully solicited that British companies,'registered either “ with secured assets” or ‘ * without secured assets,” furnishing copies to each Colony of the returns made ta the Board of Trade under the Imperial Act of 1870, may be taken to have complied with the provisions ■of the Colonial Legislature, the power to accept suqh forms vesting in the Victorian Act (clause 19) in the Governor ia Council, and in the New Zealand Act (clause 25) in the Colonial Treasurer. The. following is the reply to the above, forwarded by Lord Carnarvon, the Secretary of State for the Colonies : Downing street, 17th March, 1874.—5ir,-I am directed by the Earl of Carnarvon to, inform you that his Lordship has had under his consideration the letter of the 6th instant, signed by yourself and others, upon the subject of the recent Acts passed by the Legislatures of Victoria and New Zealand relating'to life assurance companies. J His Lordship desires me to state that, as the ’Acts ’in question are within the powers of the Colonial’ Legislatures, her Majesty will not' be‘advised to exercise her Eower of disallowance ifa respect of them. His lordship wfil, however, to the Governors qf Victoria apd New Zealand copies of your letters, apd wijl desire them to, bring the correspondence under the consideration qf their respective Governments, lam to request that you will inronp those who, with '.ypurseff, signed the letters of the &th Qctqber 'ppd 6th March, qf fhp ahoye decision.—l am,' &c. jsigned), H, T. Holland. A. Hepdricks,