INSURANCE DEPOSITS ACT

Hawke's Bay Tribune, Volume XVII, 24 November 1927, Page 9

INSURANCE DEPOSITS ACT

PROVISIONS OUTLINED. (Special to "Tribune.”) Parlt. Buildings, Nov. 24. The Insurance Deposits Act provides that every agent in Rew Zealand of a British underwriter or of British underwriters in respect of any class of insurance business, and every person who acts as an underwriter, shall deposit with the Public Trustee a sum, to he held as security in respect of all policies or other contracts of insurance, or in respect of fire insurance business or employers’ liability insurance business. A deposit of £15,000 is required, and in all other cases it is fixed at £5OOO. Foreign underwriters are to make a deposit of £50,000. In th e case of agents and underwriters already carrying on business the rlenosit is to be made by January 1, 1928 Insurance against earthouake is added to the list of exceptions set out in the' main Act under the definitions of “insurance business.” A final clause in the Bill defines the business of fire insurance companies carrying on the business of marine insurance or earthouake insurance. Such companies are not to he., deemed, for the purposes of the main Act. to carry on the business of fire insurance, by reason onlv that loss bv fire or earthquake resneetivelv is one of the various risks covered by the policies issued.