TUB INSURANCE BONUS.

Globe, Volume XXIII, Issue 2320, 10 September 1881, Page 3

TUB INSURANCE BONUS.

[PEESS ASSOCIATION TBX.KGEAK.J WELLINGTON, September 0. In the House to-day. Major Atkinson gave notice of the following scheme for the distribution of the surplus funds of the Government Insurance Department:—That whereas the actuaries appointed in accordance with the 45th section of the Government Insurance and Annuities Act, 1874, in their report on the net surplus of profits under the said Act and the repealed Acts have recommended that “ a sum not exceeding £60,000 ” be divided amongst holders of policies under the said Acta. And whereas it is provided by law that the sum so recommended for division in such report, or such less sum as shall be fixed by resolution of both Houses of the General Assembly as the amount for division, shall be divided amongst holders of policies under the said Acts in such manner and according to such scheme as shall be approved by such resolution. This House resolves that the sum of £50,000 shall he divided by way of reversionary bonus amongst the holders of policies under the said Acts, in accordance with the following scheme :—Participation in the bonus shall be confined to holders of whole life and endowment assurance policies issued under tables 1,2, and 3, which were m force on June 30th, 1880, and upon which two years’ premiums had then been paid ; the surplus shall be divided in proportion to the loading contributed by each policy holder, subject to a deduction of a year and a half’s loading. In the case of policies under table 2, only the equalised loading is to be taken into account; the share of each policy holder thus determined shall be converted by the K.M. (5) 4 per cent, single premium into a reversionary bonus to be added to the sum assured, which bonus may be exchanged at any time for one of the following benefits : —A temporary reduction of future premiums; a permanent reduction of future premiums, such exchanges to be calculated by H.M. 4 per cent, tables. Reversionary bonuses shall vest as from the 30th June, 1880; reversionary bonuses may be surrendered for cash, the snr render value to bo calculated by H.M. 5 percent, table*.