BILLS INTRODUCED INTO PARLIAMENT.

Manawatu Herald, Volume II, Issue 93, 16 July 1880, Page 2

BILLS INTRODUCED INTO PARLIAMENT.

» We intend in future publishing a precis of every Bill introduced to Parliament, having made arrangements by which copies are .to be forwarded to us. Subjoined will be found a synopsis of the Bill dealing with Fire and Marine Insurance Companies. Fire and Marine Insurance Companies. (By Hon. Mr Dick.)— This Bill consists of 45 clauses. It deals with all Insurance Companies trading in New Zealand, whether established in or out of the Colony. It is provided that every insurance company trading in the Colony must have a paid-up capital or accumulated surplus funds, amounting to at least £50,000. Every insurance company established in the Colony after the passing of this Act, and every foreign company starting business in the Colony, is required to deposit with the Public Trustee securities of the value of £10,000, and these securities are to stand in the name of the Public Trustee. All companies now carrying on business in the Colony are required to deposit securities of the value of £20,000 within nine months of the passing of this Act. In case any of the securities lodged are lost, stolen, or destroyed, thei company has its remedy against the Public Trust Office. Companies may voluutarily deposit securities beyond the amount required by law, and are to receive income from all deposits, whether voluntary or otherwise. The | deposits may be withdrawn, and others of equal value substituted ; whilst, in case the securities depo- | sited depreciate in value, the Trustee may require the company to lodge fresh securities to bring the value of the deposit up to the £10,000 required by the Act. The Public Trustee is to hold the securities in trust for policy holders,. whose claims ore actually due, but cannot be met by the company. A company is deemed to

be insolvent" when it does not^pay an undisputed claim within the space of thirty days after stfch #laim hasfallen due, or when it does not satisfy a disputed claim for wfffcft judgment has been given within thiHf"<H£??. ,Jf a company is proved to be insolvent? _ the Supreme Court ia to appoint a liquidator to wind it up. He is to call upon all policy holders to prove their claini3. Insurers may claim for a refund of their premiums, proportionate to the uuexpired term of their policy. The liquidator is to prepare a schedule of adjustments, claims, and" liabilities of the company in respect of : the polioies. and sell tire 1 securities deposited with the Public -Trustee, -the proceeds being distributed amonst the claimants according to the schedule, and the balance (if any) surrendered to' the company.* After -the sale of the securities, policy, holders whose claims are unsatisfied may still take action against the company. When a company is hi default, as regards deposit of the full value of securities, or payment of claims, or is insolvent, interest on the securities deposited is to be withheld. No certificate of incorporation is to be issued to any company until . the necessary £10,000 has been deposited. The deposit maybe withdrawn by any company ceasing business on giving twelve months' notice, \ and satisfying the Public Trustee that;the company has not issued any new*^ policies after notice of intended withdrawal. No insurance company is to issue a policy extending over a great- . er period than fifteen months. An 1 nual statements of the financial condition of all companies is to be forwarded to the Public Trustee, who may publish the same in tbeOa^ette. A copy of this stateo-ent" is to le forwarded to every shareholder or policy holder of the company. ■ All foreign companies are to appoint a principal agent in the Colony, upon whom processes may be served. Every insurance company which makes default, in complying with any of the requfeey ments of the Act is liable to a penalty 1 of £100 for every day during which; the default continues, whilst arrjL company regarding which the default continues for three months may be prohibited by the Supreme Court;from transacting business within the Colony, either absolutely or for "a/ time. If any company transacts any insurance business whilst under pro^ • hibition, it will be liable to a penalty;,' not exceeding £250 for every act done^ ,' in breach of this provision. A penalty*,* of £100 may be inflicted on any^pe^son who wilfully signs a false iflrajw-^* nient of the financial conditJott_^jjg" > -< company. The Public Trustee !«£ ' titled to charge fees for busmessrOTg.' under the Act, and may emplejppL actuary when necessary, the coJfc--w*^ whose services must be borne by tq»^~' company whose affairs have rendered such appointment necessary.