Life Assurance Companies Act 1882 (SA)

ANNO QUADRAGESIN0 QUINTO ET QUADRAGESIMO

SEXTO

A. D. 1882.

No. 277.

An Act to amend the Law relating to Life Assurance

Companies.

[Asse~zted to, Novenz6er r 7th, 1882.1

HEREAS it is expedient to amend the laws relating to Life Preamble

W Asrolnnce Companies with n view to encouraging pcrsolis to

insure and to protecting persons assured-Be it therefore Enacted

by the Governor of the Province of South Australia, by ancl with

the advice and consent of the J-,egislntivc Council and Housc of

Assembly of the said province, in Parliament asscmblcd, as follows, that is to say:

a 1 -- 277.

1. This Act is divided into three parts, as f ~ l l o ~ v s :- Division.

PART I. -Prelimina,iy :

PART IT.-Provisions for Security of A4ss~u.ed :

PART 111.-dpplication of Cornpanics Act, Proccd~m, and lliscel-

laneous.

PART I.

PRELIMINARY.

2. This A k t may be cited as " Life Assurance (bmpanies Act, tifle.

1882 "

3. In this Act the following term hare thr follo~ving meanings, Inta~ywtation.

unlcss the contest requires ct differell t coiistruction-

" Compauy7' means n q - persons, corporate or nnincorpornte, who

grant-

45' & 46" VICTORIA, NO. 277.

PABT r. grant assurances, endowments, or annuities upon human life within South Australia:

Chairman" means the person for the time being presiding over the board of directors, committee of management, or other managing body in South Australia of the company:

6 T ~ l i c y " means any contract for assurance, endowment, or annuity on human life:

Life assurance business" means the granting of policies:

Financial year" means each period of twelve months at the end

of which the balance of the accounts of the company is struck, or if no such balance is struck, then each period of twelve months ending with the thirty-first day of December:

Court" means the Supreme Court of South Australia:

" K.egistraf9 means the Registrar of Joint-Stock Companies under

M The Companies Act, 1864":

66Local Company" means a company having its head office in

South Australia:

L: Foreign company" means a compauy not having its head office

in South Australia.

PART TT. PART IT.

PROVISIONS FOR SECURITY OF ASSURED.

Con~pmies to dcposit

aecuritios with 4, Every company which shall carry on thc business of life

%reasurer.	assurance within the province shall dcnosit with the Public Trustee, securities to t& value of Firc ~housand Pounds, being mortgages of freehold red estate in Sonth Australia. on which the money advanced does not excced two-thirds oi thc value of the estate mortgaged, or title de'cds ox wrtificates of rcal tlstatc, or bonds, debentures, or other securities issued by thc (;l.ovemrnent, or by
required to dcposit more than fifty per centum on the amounts behalf: Provided always that any local company shall not be any Municipal Corporation in the provinw, duly authorised it1 that of the premiums actually received until the deposit shall amount
t o Five Thousand Pounds.

Tirne for making 5, As regards any company which now canies on thc business of

depo&s.	life assurance in the province, the deposit may bc niade at any time not later than one year after this Act shall come into opera-
tion; and as regards any company formed tlftcr this Act, the
deposit may be made at any time within twelvtl months of its incor- poration or registration; and no company shall be deemed to cmy on the business of life assurance by reason only of receiving pre- miums in respect of policies issued before this Act shall come into operation.

ride out of ruaeipte.

Fu~herde~oaitstobo 6. Every company which shall carry on the business of life

assurance

45" Rr 46" VICTORIE, No. 277.

Life Asswance Companies Act. -1 882.

assurance within the province shall send in amuallv to the Public	P ~ a x	11.
Trustee, on or beforeAthe first day of June in eaih year, return,
verified by the certificate of the agent or principal officer of the com- pany in South Australia, of the amounts received and paid by the company during the year ending the thirty-first day of December then last, or on such other date as the financial year of each corn- pany shall determine, on account of policies issued in South Australia. by the company, whether before or after the commencement of this Act, and shall, until the total amount deposited by the company under section 4 and this section shall amount to the sum of Twenty Thousand Pounds, deposit with the Public Trustee securities similar
to those mentioned in section 4 to the value of twenty-five per
centum of the excess of the receipts over the disbursements appearing from such returns.

7, If any securities deposited under this Act are, whilst so Froviaionin case of

deposited, lost, stolen, destroyed, or damaged, the injury occasioned loss of eecuritiea.

to all persons interested shdl be made good out of moneys to be

n,ppropriated for the purpose by Parliament.

8, Any company may from time to time deposit with the Public: Further dgoeit8mny

Trustcr. any securities of any kind, and to any amount, besides and beyond the securities hereby required to be deposited.

9, The company depositing any securities under thie Act shall be rnc0,, and Rrith.

entitled to receive the income therefrom, and securities deposited " a ~ l	of dtlponb.
may be withdrawn on timely notice, ancl, where the deposit is com- pulsory, on the substitution of similar securities of equal value, and the decision of the Public Trustee shall be conclusive in all matters relating to the value of securities under this Act.

10, All securities deposited with the Public Trustee under this Securities aepoaitd

Act shall be primarily charged with the payment and satisfaction of liabilities m t a be charged with

all the liabilities of the company in South Australia, whether arising Auatraltl.

in respect of policies issued before or after the commencement of this	Act or otherwise howsoever, and no part of such securities shall be
applied in payment of any liabilities other than those so charged as aforesaid until the whole of such last-mentioned liabilities shall be paid ia full.

11. Every foreign company shall keep a separate account of all nisohnrgo of South Australian liabilities

the life assurance business transacted in South Australia, and of the of foreign companies,

entire assets of thc company in South Australia; and in the event of the company becoming bankrupt, or being ordered to be wound up, the entire assets of the company in South Australia shall be applied, so far as the sane will extend, in or towards satisfaction of the liabili- ties of the company in South Australia, and no part of such assets shall be applied in payment of any liabilities of the company in- curred elsewhere than in South Australia until the whole of the liabilities incuned in South Australia shall have been paid in full.

45' & 46" VICTORIA!, NO. 277.

I;@ Assurance Companies Act-l 882.

PART 11. 12. If any foreign company it3 adjudged bankrupt, or ordered to

~ d e distribution be wound up, elsewhere than in South Australia, such compsny, so

of a ~ ~ e t a of insolvent

foreign compnny. far only as regards its assets and liabilities in South Sustdia, may, upon the application of any policyholder or sharel~oldcr, be ordered to be wound up in South Australia in like manner :M if such company were registeied under The Companies Act, 1864," and proof of such company having become adjudged bankrupt, or ordered to he wound up, shall be conclusive evidence that it is unable to pay its debts.

P e n d t ~ for** 13. Any director, agent, officer, or servant of any company

ment of Act.

wilfully committing or assisting in the commission of any breach of section 11 shall be deemed guilty of a breach of trust, and be held liable to replace the amount applied contrary to the said section, and shall also be deemed guilty of a rnisdemeanor punishable on conviction, at the discretion of the Court, by imprisonment for any term not exceeding three pears or by a fine not exceeding Five Hundred Pounds.

assurance and othor

Separaticm of life 14. Every company transacting other business besides life

business.	assurance business shall keep a separate account of all receipts after the passing of, this Act in respect of the life assurance business of the company, and the said receipts shall be carried to and form a sepa- rate fund to be called the " Life Assurance Fund " of the company, and such fund, however invested, shall be as absolutely the security
of the life assurance policy-holders as though it belonged to a
company carrying on no other than life assurance business, and shall not be liable for any contracts of the company for which it would not have been liable had the business of the company been only life assurance business.
Application of pre-
ceding section to	15. In respect to all existing companies the exemption of the life assurance fund from liability for other obligations than to its life assurance policy-holders shall havc reference onlv to the con- tracts entered into after the passing of this Act, unless by the con-
,,i8tin,,,mp,i,.
stitution of the company such exemption alrcady exists; but this
and the preceding seotiorr shall not apply to any contracts made
by any existing company by the terms of' whose deed of settlcrrrcnt or articles of association the whole of the profits of all the business
are paid exclusively to the life and endowment policy or annuity
holders, and on the face of which contracts the liability of the insurers distinctly appears: Provided always, that this -4ct shall not diminish the liability of the life assurance fund for any contracts of the company entered into before the passing of this Act.
Accounts to be

rendered by life 18. Every company tmnsacting life assurance business only shall,

at the expiration of each financial year or half-year of sucll company,

r a n

prepare a statement of its revenue account for such year or half-

year, and of its bdance-sheet at the close of such year or half-year,

in the forms respectively contained in the First ant1 Second Schedules

to this Act.

17. Every

.I

4 5 O 62 46" VICTORIA?, NO. 277.

Lifp Assu~ance G q a n ies Act-1 882.

17. Every company which, concurrently with the tra~lsaction of PART --

11.

life assurance business, transacts any other kind of assurance or Accwnts to ae

other business, shall, at the expiration of each financial year of rendered by corn- panies carrying on

such company, prepare a statement of its revenue account for such life assurance and year, and of its balance-sheet at the close of such year, in the f o r m o ' ~ " bu5iUe68~ respectively contained ill the Third and Fourth Schedules to this

Act.

18. Every foreign company shall, at the expiration of each Aooounta to be

financial year of such company, prepare, in addition to all other rendered by foreign	companies.
statements required by this Act, a statement of all its policies in force at the close of such year, in the form contained in the Fifth Schedule to this Act.

19. Every company shall, once in five years, or at such shorter Actuarial reyo~t md

intervals as may be prescribed by the instrument constituting the ab88"ract.

company, or by its articles of association, regulations, or by-laws,

cause an investigation to be made into its financial condition by an

actuary approved by the Public Trustee, and shall cause an abstract

of the report of such actuary to be made in the form prescibed in

the Sixth Schedulc to this ,4ct.

20. Every company shll, on or before the thirty-first day of Statement of life

Deccmbcr, one thousand eight hundred and eighty-three, and there- after within nine months aftcr the date of cach such investigation as aforesaid into its financid condition, preparc n, statement of its life assurance and annuity business, in the form contained in the Seventh Schedulc to this Act, each of such statements to be made up as at the date of the last invcstigation, whether such investiga- tion be made previously or subscquentl-y to the passing of this Act: Provided as follows-

X.	If the next financial investigation, after the passing of this Act, ~f any company fall during thc ycnr one thousnnd eight hunched and eighty-four, the said s ta tcnw~t nf such company	shall bc prepared within riinc months after the date of such
iiivcstiffntion instead of 011 ur before thc thirty-first day of
December, one thousand eight hundred and eighty-three:

rr. If such invcstigation be made annually by any company, such cornpany may prepare such stntcnmlt at ally time, so that it be made at least oncc in cvery three years.

The expression " date of each such investigation," in this section, shall mean the date to which the accounts of each company are made up for the purposes of each such investigation.

21. Ally company whosc head officc or principd phce of busincss Forms authorised by

is in the United Kingdom may, in lieu of {he statcrnent ;md abstract ..Lire haaurance Imperial Statute,

rncntioned in the preceding two sections, dellosit ;it tlip officc of the c nmpanies A et, 1870 " may be used

Registrar a copy, certified rn accordance with t l l ~ 17th swtion of the ir, ce)rt;lin cases.

Act of the Imperial Pal.liarnent known as the Life Assurauce Corn-

450 & 46' VICTORIE, No. 277.

L77e Assurance Companies Act.--1882.

- ET 11. panies Act, 1870, of the last preceding statement or abstract depo-

sited with the Board' of Trade in conformity with the provisions of the

10th section of the said Act.

Fomg may bo altered. 22, The Governor may alter the forms contained in thc Schedules

to this Act, for the purpose of adapting them to the circumstances of any company, or of better carrying into effect the objects of' this Act.

Stnbmenkt&c.$tobo	23. Every statement or abstract hereinbefore ~ q u i r e d	to be
signed nnd printed

nna dewtedwith

made shall be signed by the chairman and two of the directors or

Registrar.

committee of management, or by the agent of the company in South Australia, and by thc principal officer or agent managing the

lifk assurance business of the company in South Australia, and if

the company has a managing director in South Australia, by such managing director, and shall be printed; and the original so signed

as aforesaid, together with three printed copies thereof, shall be

deposited at the office of the Registrar within nine months of the dates respectively hereinbefore prescribed as the dates at which the same are to be prepared; and every annusl statc~nent so deposited after the first investigation, after the passing of this Act, shall be accompanied by a* printed copy of the abstract required to be made as aforesaid.

Copiestobofurnished*

24. A priizted copy of the last deposited statement, abstract, or

other document, by this Act required to be printed, shall be for-

walded by the company, by post or otherwise, to eveiy shareholder,

member, and policy-holder of the coiqany in South Australia.

t o b e ~ ~ ~ i n t e d 25. Every foreign company shall, ~vithin six calendar months

for foreign companies.

after the coming into operation of this section, or before doing business in this province, in writing, appoint a person resident therein as general sgcnt, upon whom all lawful processes against the comyaizy may be ser~ed with like effect as if the company existed in this

province; and .the said writing or power of attorney shall stipulate	and agree, on the part of the company making the same, that any
lawful process against the said company which is served on the said general ngcnt shall be of the same legal force ancl validity as if servecl on the said compnny.

wfi t in~t, be 26. A copy of the writing, duly certified and authenticated, sha'll

filed in office of

Regi&rar.

be filed in the officc of the Xegistrar, and copies certified by him shall

be sufficient evidence.

A~cncr to co2tinu0 27. The said agency shall continue while any liability remains

as long ns any liability

outatam~ins	in the	outstancli~lg against the company in this province, and the power
provmce.	sliall not be reroked until the same power is given to another and a like copy filed as aforesaid,

Semicc of process,

&C., on agent 28. Service of any process, notice, or otherwise upon the said

mflicient. agent shall be deemed sufficient service upon the principal.

29. No

Lijc Assurance C u q ~ m i e s Act.-1882.

29. ?\To person sllell act either as p e r n l or other agent of n P*.T 11.

forei$n cornpan.n). until 1~ has complied wit11 all the requmements ~ e m l t ~ for non-CO m

of tlus Act; and every person so acting without such compliance, or phnce.

who knowingly procures payment, or any obligation for the payment,

of any premium for insurance or eudo~nnent, or for sale of ~1

annuity by fraudulent representations, shall be liable to a penalty

not esceediug Two Hundred and Fifty Pounds for each offence.

30. Ererr contract for life assurauce mnde by any foreign c o n t m t s n ~.

cornpally without complying mith the provisions of this Act con- tained k the sections nun~bereci 25 to 29, both inclusive, shall be valid and binding on the company; but the agent making the cow tract shall be liable to the pemlty provided in section 31 of this Act; and m y snch company which neglects to appoint and keep appointed a general ngent agreeably tu the pm~isions of this Act slinll not recowr any yremiun~ or other payment on any contract of

life assurance with a person resident in South h s tml i a.

31. Every compnn r which makes default in complying with the p r o d o u s oi' this Act shall not only be liable to the peimlties set	Companies may be
prohibited from
transncting business
#orth in the 44th section, but may also, if it he made to appeaT	in certnin cases.
to the Go~ernor that such default has contiiued for a period of t h e e months, be proliibited by the Governor from transacting business within the province, either absolutely or for a time, as the Goveinor may think fit.
l'rohibition to be
32, Such absolute or temporary prohibition shall be published in the Gwemnewt Ga:t~tl"e	published in Ooreun-

; and if any sucli coinpanp, or any person ~nent Gnxtte.

as agent for such company or otherwise for or on behalf of any sucli company, shall, after such absolute prollibitiou, or during any snch temporary prohibition, receive any applications for ally life assurance, or accept any premium for m y life nssumnce, or otherwise carry on

the business of life assurance within South Australia, such conlpany

and person shall respectively be liable to a penalty of Two Hundred

and Fifty Pounds.

33. The property md interest of erer- person assured, or of his	not to pass to creditors
Interest of assured '

personal representatives, in respect of any policy on the life of such	under certain circum-
person mnde Boeii jide by such person, or in the moneys payable	stances.

under or in respect of such policy (incltding every sum payable by

way of bonus or profit), sl~nll be esempt fiom liability to any law

now or hereafter in force relating to bankruptcy or insolvency, or

to be seized or levied upon by the process of any court v-hatever,

nor shall such property or interest be affected by nny assignme$ for the benefit of creditors made wder the insol~*ency laws in force

for the time being: Provided that 110 such policy nor co~itributions

shall be so protected uutil the policy shdl have endured for at least two JWXS, but that after an endurance of two years such protection shall be afforded to the extent of TWQ Hundred Pounds of assurance and contributions, and after an endurance of five years to the extent of Five Hund~ed Pounds, and after an endulrmce of seven

years to the extent af One Thousand P~UI&, PART

45" & 46' VICTORIfi, No. 277.

7 --~---l-----_II Life Assurance (hnyawies Act.-1882,

PART 111.

APPLICATION OF COMPANIES ACT. PROCEDURE

AND MISCELLAXEOUS.

Application of Com-	34. The provisions of '' The Companies Act, 1864," and of the
paniee Act to life

assurance compdee. Acts amending the same, except as hereby expressly modified, hall apply to life assurance companies, but no life assurance company shall bc required to hold more than one general meeting during the year, or to make or publish any statcmcnt in accordance with the

42nd section of The Companies Act, 1864."

35. Every proprietary company shall provide a boolr to be called.

" The Shareholders Address Book," in which the company shall

cause to be entered from time to time, in alphabetical order, the corporate names and places of business of the several shalvholdcrs of the company being corporations, m d the surnames of the several other shareholders, with their respective christian names, places of abode, and descriptions, so far as the same shall be known to the company; and every policy-holder or sharcholder, or if such share- holder or policy-holder be a cnrporatioi~, the clerk or agent of such corporations, may at all convenient tinles peruse such book gratis, and the company shall furnish on application, to every shareholder and yolicy4~older of thc: company, a copy of such boolr, or of any part thereof, on payment of a sum not exceeding Sixpence for every hundred words to be copied for such purpose.

Deed of ~ettlen~rnt to 38. Every Company which is not registered under the The Com-

be printd. panies Act, 1864," shall cause a sufficient number of copies of its deed

uf settlement, Act, or chrter of incorporation, or other instrun~ext

regulating the constitution of the company, to be printed, and shall furnish on application to every sharcholder ancl policy-holder of the company a copy thereof, on payment of a sum not csceeding Two Shillings and Sixpence.

Where it is intended to amalgamate two or more companies, or to transftlr the life assurance business of one company to another,

thc? directors of any one or more of such companies may apply to

the Court by petition to sanction the proposed a~rangemcnt, fourteen days' previous notice of such application being published in the Gazette, and the Court, after hearing the directors and other persons

whom it comiders entitled to be heard upon the petition, may

confirm the s m e if it is satisfied that no sufficient objection to the

anxngement has been established.

37.

38. Bdorc any such application is made to the Court, l~otice of

such application, together with a statement of the nature of the

amalgnmation or transfer, as the case may be, and an abstract con-

taining tlic imtcrial facts embudied in the agreement or deed ~mtier

whivl, snrh mnalgamation or transfer is proposed to be effected, and

copies nf the acturies or othqr reports upon which suc.h aagreemont

or deed is founded, shall be forwarded to each policy-holder of both

corn yanies

45" Sr 46" VICTORIA?, No. 277.

Life Assurance Companies Act.-1882.

.- -p-

companies in case of amalgamation, or to each policy-holder of the	PART	in.
transferred company in case of transfer, by the same being trans- mitted through the post, directed according to the registered or other known address of such policy-holder, within such period as to admit of its being delivered in the due course of delivery fourteen days at least before the day named for the hearing of such application; and in proving such service it shall be sufficient to prove that such notice was properly addressed and put into the post office; and the agree- ment or deed under which such amalgaination or transfer is effected shall be open for the inspection of the policy-holders and shareholders
at the office or offices of the company or companies for a period of
fifteen days after the issuing of the abstract herein provided.

39, The Court shall not sanction any amalgamation or transfer Conditions.

in any case in which i t appears to the Court that policy-holders representing one-fifth or more of the total amount a~sured in any company which it is proposed to amalgamate, or in any company the business of which it is proposed to transfer, dissent from such amalgamation or transfer.

40, No company shall amalgamate with another, or transfer its business to another, unless such amalgamation or transfer is con- firmed by the Court in accordance with this section: ,Provided always, that this section shall not apply in any case in which the business of any company which is sought to be amalgamated or tramferred does not comprise life assurance business.

41, When an amalgamation takes place between any companies, Statements in case of

or when the business of one company is transferred to another	artion	Or
company, the combined company or the purchasing company, as the case may be, shall, within ten days from the date of the completion of the amalgamation or transfer, deposit at the office of the registrar certified copies of statements of the assets and liabilities of the companies concerned in such amalgamation or transfer, together with a statement of the nature and terms of the amalgamation or transfer,
and a certified copy of the agreement or deed under which such amalgamation or transfer is effected, and certified copies of the	actuarial or other reports upon which such agreement or deed is
founded, and the statement and agreement or deed of amalgamation or transfer shall be accompanied by a declaration under the hand of
the chairman of each company, and the principal managing officers
of each company, that, to the best of their belief, every payment made, or to be made, to any person whatsoever on account of the said amilgamation or transler, is therein I d l y set forth, and that no other payments beyond those set forth have been made or are to be made either in money, policies, bonds, valuable securities, or other property, by or with the knowledge of any parties to the said amalgamation or transfer.

42. Where a company, either before or after the passing of this	novationo by policy-
Regulation aa to

Act, has transferred its business to, or been amalgamated with, holdera.

another

B 4 7 7

45" & 4 6 O VICTORIW, No. 277.

Assurance Companies Act.--18132.

another company, no policy-holder in the first-mentioned company who shall pay to the other company the premiums accruing due in respect of his policy shall, by reason of any such payment made after the passing of this Act, or by reason of any other act done after

the passing of this Act, be deemed to have abandoned any claim

which he mould have had against the first-mentioned company on due payment of premiums to such company, or to have accepted, in lieu thereof, the liability of the other company, unless such abandon- ment and acceptance have been signified by some writing signed by him, or by hia agent lawfully authorised.

Impwtionordepsited 43, Any person may, on payment of such fees as the Governor

documents may direct, inspect at the office of the Registrar any printed or other document required by thia Act to be deposited at such office, and procure copies thereof.

~ o o ~ m ~ n t a to be 44, Every statement, abstract, or other document deposited with

receimiinevidence.

the Registrar under this Act shall be receivable in evidence, and

every document purporting to be certified by the Registrar to be such deposited document, and every documcnt purporting to be similarly certified to be a copy of such deposited clocument, shall, if produced out of the custody of the Registrar, be deemed to be such deposited document as aforesaid, 0.1. a copv thereof, and shall be received in evidence as if it were the origind docurncnt, unless some variation between it and the original document shall be proved.

pc*sltp for 45. Every compauy which makes default in complying with the

plinnee Rith Act.

requirements of this Act, and shall continue in such default for seven days after notice by the Registrar, or any person interested in the matter of such default, shall be liable to a pcnalty not exceeding Fifty Pounds f i x every day during which the default continues; and

in the case of a foreign company the general agent shall be liable

to such penalty as well as the company; and in the case of companies registered under The Companies Act, 1864," if defitult continues for a period of three months after notice of default by the Treasurer,

which notice shall be published in one or more newspapers, as the Treasurer may direct, the Court may order the winding up of the

company, in accordance with the said Act, upon the application of

one or more policy-holders or shareholders.

P ~ n a l f ~ ~ ~ ~ f d s i f y i n ~ If	any statement, abstixct, or other docfiment required	by
statemcntr.

this Act is false in any particular to the knowledge of any person who signs the same, such person shall be guilty of a mlsdemeanor, and being convicted thereof shall be liable, at the discretion of the Court, to be imprisoned for any term not exceeding three years, or to s penalty not exceeding Five Hundred Pounds.

SIUTCII~~~ value to 47. Every life assurance society shall declare the surrender value

bo declared, at which the said society becomes bound to accept their policies, and no policy shall lapse to the society for nonq~ayment of premium so long as the premiums and interest in arrear are uut in excess of the surrender value, 48. Every

4.5' & 46" VICTORIW, NO. 277.

Lijk Assvranoe Companies Act.--1 88'1.

48. Every p~nalty imposed by this Act shall be recovered and In*

applied in the same manner as penalties imposed by The Companies Recovery and aWi-

ation ob penalties.

Act, 1864," are 'ecoverable and applicable.

49. The Court may order the winding up of any company in Winding ofcom-

accordance with The Companies Act, 1864," on the petition of five panp.

or more policy-holders or shareholders, upon its being proved to the satisfaction of the Court that the company is insolvent; and in determining whether or not the company is insolvent the Court

shall take into account its contingent or prospective liability, under

policies and annuity and other existing contracts.

50. The Court shall not give a hearing to the petition until Security for co8b.

security for costs, for such amount as a Judge s h d think reasonable,

shall be given, and until a p ' d	facie case shall allso be established
to the satisfaction of the Judge.

51, In the case of a proprietary company having an uncalled pla~rietnry company.

capital of an amount sufficient, with the future premiums receivable by the company, to make up the actual: invested assets equal to the amount of the estimated liability, the Court shall suspend further proceedings on the petition for a reasonable time (in the discretion of the Court) to enable the uncalled capital, or a sufficient part thereof, to be called up, and if, at the end of the original or any extended time for which the proceedings have been suspended, such an amount shall not have been realiwd by means of calls as with the already invested assets shall be equal to the liabilities, an order shall be made on the petition as if the company had been proved insolvent.

has, either before or after the passing of this Act, been transferred sdlary company. 52. Where the business or any part of the businas of a company F!nding up of sub-

to another company, under an arrangement in pursuance of which such firstmentioned company (in this Act called the subsidiary company), or the creditorq thereof, has or have claims against the

principal company), then, if such principal company is being wound	company to which such transfer was made (in this Act called the
up by or under the supervision of the Court, either at or after the passing of this Act, the Court shall (subject as hereinafter mentioned) order the subsidiary company to be wound up in conjunction with
the principal company, and may, by the same or any subsequent
order, appoint the same person to be liquidator for the two companies, and make provisions for such other matters as may seem to the Court necessary. with a view to such companie~ being wound up as if they were one company, and the commencement of the winding up of the principal company shall, save as otherwise ordered by the Court, be the commencement of the winding up of the subsidiary company.
The Court, nevertheless, shall have regard, in adjusting the rights
and liabilities of the members of the several companies between themselves, to the constitution of such companies, and to the arrangements entered into between the said companies, in the

same

45" & 46" VICTORIW, No. 277.

Lif A~ssurance Companies Act.- 1882.

Paar III. same manner as the Court has regard to the rights and liabilities of different cla~lses of contributories in the case of the winding up of a single company, or as near thereto as circumstances admit.

Contracts of insolvent 53, The Court, in the case of a company which has bccn

company map be

reduced.	proved to be insolvent, may, if it thinks fit, reduce the amount of the contracts of the company or society, upon such terms and subject to such conditions as the Court thinks fit, in place of making
,z winding-up order." (Sec. 22 of Act of 1870.)
Provision in cam of

subsidiary company 54, Wllere any subsidiary company, or company alleged to be

not being in process

subsidiary, is not in process of being wound up at the same time as

of winding up.

thc principal company to which i t is subsidiary, t I~e Court shall not direct such subsidiary company to be wound up unlcss, after hearing a11 objections (if any) that may be urged by or on behalf of such company against its being wound up, the Court is of opinion that

such company is subsidiary to the principal company, and that the

wincling up of such company in conjunction with the principal

company is just and equitable.

Application for wixld-

ing up subsidiary 55, An application may be made in relation to thc winding up

cumpan y.	of any subsidiary company in conjunction with a. principal com- pany by any creditor or policyholder of, or person interested in, such principal or subsidiary company.
C+ouping of compa-
nies.	56, Where n company stands in the relation of a principal com- pany to one company, and in the relation of a subsidiary company to some other company, or where there are several companies standing in the relation of subsidiary companies to one principal company, the Court may deal with any number of such companies, togcther or in separate groups, as it thinks most expedient, upon the principles laid down in this section.

Court may reduce	57.	The Court, in the case of a company which has been proved to
contracts.

be insolvent, may, if it thinks fit, reduce the amount of the

contracts of the company, upon such terms and subject to such	conditions s s the Court thinks just, in place of making a winding-
up order.

Yaluation of pliciee.

58, Where a company is being wound up by the Conrt, or

subject to the supervision of the Court, or voluntarily, the value of

every life annuity and life policy requiring to be valued shall be

estimated in manner provided by the Eighth Schedule.

Rules of Court.

59. Thc rules in the Eighth and Ninth Schedules shall be of the same force as if they were rules made in pursuance of '*The Companies Act, 1864," and may be altered in manner provided by the mid Act; and rules may be mede under the said Act for the purpose of carrying into cffcct the provisions of this Act with respect 10 the winding up of rompmies.

45 & 46" VICTORIE, NO. 277.

Life Assurance Compmzies Act.-1 882.

60. Any notice which is by this Act required to be sent to any PABT 111. -

policy-holder may be addressed and sent to the person to whom

to

notices respecting such policy are usually sent; znd any notice so holders.

addressed and sent shall be deemed and taken to be notice to the

holdcrs of such policy.

61, The Treasurer shdl lay annually before Parliament the statemenb to be la;a

statements and abstracts of reports deposited with the Registrar befOmPw.meent.

under this Act during the preceding year.

62, Upon the death of any holder of a policy upon his own life Probate or adminis- tration may be die-

for a sum not exceeding Two Hundred Pounds, if no probate of his pnd witL in &r-

will or letters of administration to his estate be taken out within t s i n m -

three months after his death, the company may pay the amount of

such policy to his widow, or any adult child of his, and the receipt

of such widow or child shall be a valid discharge, both at law and in

equity, for the same.

63. The receipt of the execntor or administrator of any deceased Receipts of executore or administrators

policy-holder shall be a valid discharge, both at law and in equity, ,lid

discharges.

for any moneys payable under the policy held by him at the time of

his death.

64, Every assignment made after the first day of January, one Assignment of

thousand eight hundred and eighty-three, of a poli-cy, may be made by	policies.
memorandum of transfer indorsed upon such policy, in the form in the Tenth Schedule, and no such assignment shall be of any validity until registered as hereinafter provided.

65, Notice of every such assignment shall be given to the corn- Notice and regista-

pany for the time being liable upon the policy assigned, and such tiOn' assignment shall be registered in a book to be provided by the company for that purpose, and the date of such registration shall be inserted in the memorandum of transfer, which shall be also signed by the principal officer managing the life assurance business of the	company in South Australia, or his deputy, and thereafter the assignee	may sue, as well at law as in equity, in his own name, on the policy
assigned, and the receipt of such assignee shall be a valid discharge,
both at law and in equity, for all moneys payable thereunder. Every
such memorandum of transfer signed as last aforesaid shall be con- clusive evidence of the registration thereof, and of the date of such registration.

66, If any policy is assigned by way of mortgage, or upon any No noticeof ~WPP

trust, such mortgage or trust shall be effected by way of defeasance or trusts.

or declaration of trust by some separate instrument, and no notice of

any such mortgage or trust shall be entered on the memorandum of

transfer or indorsed on the policy, and the company shall not be

affected either by express, implied, or constructive notice of any such

mortgage or trust, nor be bound or concerned to see to the al;plica-

tion of ally moneys payable under such policy.

67. It

45" & 46O VICTORIA, No. 277.

Life Assurance Cmpaaies Act.-1 882.

PART 1x1. 67, I t shall be the duty of the Public Trustee to secure the due

D* of mmb obw~gtlce by every company of the provisions of this Act ; and the

mundaAn	Go~ernor may, by regulation to be published in the Government
Gazette, declare what fees shall be payable by companies in respect
of the duties to be performed hereunder by the Public Trustee.

In the name and on behalf of Hex Majesty, I hereby assent to

this Bill.

WM. F. DRUMMOND JERVOIS, Governor.

SCHEDULES

45" & 46" VICTORIW, NO. 277.

Life Assurance Companies Act.-1882.

SECOND

45" & 46" VICTORIA?, No. 277. --

Li$e Assurance Companies Act. - 1882.

THIRD

THIRD SCHEDULE.

Revenue Accounts of the for the year ending.

(No. l./-Life Assurance A c c o ~ f i t.

(Date.) (Date.)

Amount of life aesurance fund at the beginning of the year ............ Claims under Efe policies, after deduction of awns re-assured ............

Renewal premiums, after deduction of re-assurance premiums .......... Surrenders .......................................................

Kew premiums (after deduction of re-assurance premiums) on new Annuities ......................... .. .............................

policies assuring 3 , and yielding an annual income of f, , Commission ...................... .. ...........................

after deduction of re-assurances .............................. Expenses of management .........................................

Consideration for annuities granted ................................ Other pnpn~ents (accounts to be specified) ..............................

Interest and dividends.. .......................................... iiniount of life assurance fund a t the end of the year, as per Fourth Schedide..

Other receipts (accounts to be specified) ...........................

- i

NOTE. -Companies

having sepitrate accounts for ~nnuities to retun1 the particulars of their annuity business in a separate &tenrent.

f NO. 2.)-Fire Accozoht.

(Date.) (Date.)

Amount of fire insurance fund at the beginning of the year ............ Losses bv fire. after deduction of re-assurance .......................... W

Premiums received, after deduction of re-assurances .................. 1 11 Expenses of management., .........................................

Other receipts (to be specified) .................................... Commission ......................................................

Other payments (to be specified) .....................................

Amount of fire insurance fund at the end of the year, as per Fourth Schedule..

t It I

- --

NOTE.-When marine or any other branch of business is carried on, the income and expenditure thereof to be in like manner stated in a separate account.

{No. 3.)-P~oJif and Loss Account.

(Data.) (Date.) E 8. d.

Balance of last rear's account. ..................................... Dividends and bonuses to shareholders ................................

Interest and dividends not carried to other accounts .................. Expensea not charged to other accounts.. ..............................

Profits &d iaecounts to be s~ecifiedl ............................ Loss reaIised (aocounta to be specified) ...............................

Other payments.. ..................................................

/I Baknce as per l?ourth Schedule ......................................

I

1 I I

NOTE.-This account is not required if the items have been incorporated in the other accounts of thio sohedale.

FOURTH SCHEDULE.

Balance-sheet of the on the 18

f: 8. d.

h. 4 ~ 1 ~ 1 ~ 1 ~ 8.

Shmehohlers' capital ....................... ... ................

General reserve fund (if any). ................................... South Australian Goveinlncnt securities ..............

Other Govenlment securitie~ jpnrticulnrs to be specified.. .

Life rrssurance fund* ............................ +., .........a- Mortgages ............... ; -......................

Annuity fund (if any) * ........ ;, ..............................

Fire fund .................................................... Loans on the company's policies ......................

Marine ftmd .................................................. I h n s npon personnl sccuiity ........... .; ...........

R d w s y and other debentures and debenture stocks.. ....

Profit and Ioga (if any) ........................................

Other fund8 (if any, to be specified) .............................. Railway shares (preferential and ordinary) ............

S House property ....................................

! Gther inveetmcnts [to be fipecified) ....................

Claims under life policies admitted but not yet paid*. ...............

Agents' balances ..................................

Outstanding firelossee.. ........................................

Outstanding premiums ..............................

Outetancling marine lofiees ......................................

Outstanding interest ................................

Other sums owing by the company (accounts to be specified) ........

Cash- On depoeit ..................................

In hand and on current account ................

Other assets (to be specified) ........................

Total assets in South Anstralia ................

Eloezvhere t h m ill South Australia-

British Government securities ......................

Indiah and Colonial Government securities ............

Foreign Gor-emment securities .....................

Mortgages (stating where) ..........................

Loans on the company's policies ......................

Loans upon personal security ........................

Railway and other debentures and debenture stocks.. ....

Railway share. (prefcrentinl , i d ordinary) ............

House property (stating where) ......................

Otter iuvejtments (to be epecified) ....................

Agents' balances ..................................

Outstanding prtmium~ ..............................

Outstanding interest ................................

Cash-On deposit ..................................

I n hand and on current account ................

Other assets (to be specified) ........................

Total assets elsewhere than in South Australia ................

Total assets ........................................ d

If the life assurance fund Is in accordance with section 20 of this Act, 8 separate trnst fund foc the sole aecnritp of the life polic7-holders, or separate balsnce-aheet tor the life branch, may be dren

X in the f o m contained in the Second Schedule. In other n8pectr the company is to obserre the abore tom. See dm note to Becond Schedule.

- 45" B 46" iTICTORIE, No. 277.

Lye Assurance Comptrnics AA.-1882.

FIFTH SCHEDULE.

1. New policies issued by the during the year

ending

-.

No. of	Sum Assured.	Single Prmiuma.
Policies.

Assumnco ..................... ...

Endowment. .......................	(per ann~nn) l
Annuity ..........................

Total ..............,..... I

2. Policies discontinued in the during the year

ending

-

Xndnarncnt Politics. Annnity Policirs.

- - - .- - - - .-

How Discontlnucd.

I S U I ~ I ~ n n u. ~ l , / ~ n n u i t y / *nnml

Aasurcd. I'remiurn~.~ So. perAnnum Premiums.

By death or maturity.. ..

By ~r~rrender	..........
By forfeiture	..........

Total ............

3. Policies of the existing on the

S o of

politic.;, Sums A Y S U T P ~.

- - - - I -

Z .¶. d.

Assu~mce ..........................

Gndowment ........................ (per nnnum) (per annum)

Annuity ............................ ----

Total ......................

4. Progress of the life assurance business of the

aince its establishment to

No. of Annuity

Snnm Asurrd ~~i~ A n n l d Pwdun18.

p O ~ i e r

- ---- v

S. d. S. d. 8. d.

Total issued ......................

Total discontinued ..................

Exiating ..................	I
--I

Annual Income from Interest ..................................

l

Total Annual Income ..................................

SIXTH

VICTORIW, No.

Life Assurance Companies Act-1 882. -

SIXTH SCHEDULE.

Stcctement.re~pecttiry the Yaltcatios of the Liabilities under Life PoZolicies ancl Annuataes

of the to be made by the Actuary,

[The answers should be numbered to accord with the numbere of the corresponding

questions.'l

I. The date up to which the valuation was made ?

2. The principles upon which the valuation was made, and whether these principles were determined by the instrument conetituting the company or by its regula- tions, or by bylaws or a therwise ?

/ a j Were the policies ralusd individually or i n classes?

( b ) If in classes, how was the valuation age determined ?

(C) What portion (if any) of a year's premium was avsurned to be due?

( d ) Were lives assured at increased rates assumed to be d the age at entry

corredpanding to the pr tmiu~n charged ?

3. The table or tables of mortality used in the valuation ?

4. The rate or rates of interest assumed in ths calculations ?

5. Hy what table of mortality, and according to what rate of interest, have the net

premiums valued been computed ? Give specimens of such premiums for a

wholc life policy of $100, for ageg at entry, 20, 25, 30, 35, 40, 45, 50, 55, 60.

6. The proportion of the annual premium income (if any) reserved a s a provision

for future expenses and profits ? [ I fnone, stcstc how this provision is made.]

7. The consolidated revenue account since the last valuation, or. in case of a company

which has made no valuation, since the cornmencemcLnt of the business?

[This return @oust be made in the form annexed.]

8. The liabilities of the company under life policies and annuities at the date of the valuation, bhowing the number of policies, t he amount assured, and the m o u n t of premiums payable atlnually ur~der each class of policies, both with and without participation in profits, and also the net liabilitres and assets of the company, with the nmount of surplus or deficiency ? [These returns must

be made in the forms ann8xed.j

9. The principles upon which the distributitm cf profit, are made ?

10. The time during which a policy muat be in forcc, to entitle it to ahare in the

profits ?

l l. The results of the valuation, showing :-

(a) The total amount of profit made by the company.

/ h ) The nmount of profit divided among the policy-holders, and the number

and amount of policies which pa~ticipated.

( c ) Specimens of bonuses allotted to politics for $100, effectcd a t the reepective ages of 20, 30, 40, 50, ,and haricg been respectively i n fwce for five years, ten years, and upwards, at intervals of five ywrs, together with the amount appropriated under the various modes in which the bonus might be received.

[Form referred to under heading No. 7 in Sixth Schedule.]

Conrolidatad Rcaew~ dccount of tire for yews,

6: S. d.

Amount of funds on Claims under policiee, after de-

18 , the beginning of duction of sums re-assured ..

Premiums, after deduction of re- Surrenders ................

wumnce premiums. ......... Annuities ...............

Consideration for annuities granted	Commission ..............
Intenst and dividends.. ........	Expenses of management. ..... !
Othcr receipts (accounts to bo	Dividends and bonuses to share-

specified) .................. solders (if any) ..........

Other payments (accounts to be

specified) ............

Amount of fun& on

1 18. the end of the period, as per First (or Third) Schedule

I 1

I

[Form

45O & 460 VICTORIW, No. 277.

LTlife Assurance Companies Act.-1882.

[Form referred to under heading No. 8 in Sixth Schedule.]

Su9nmary a d Valuntion of the Policies of the aa at

Valuation.

Partianlars of the Policies for l Valnatim.

Description of Transactions.

Aarwalzces-

I. With participation in profits-

For whole term of life.. ..........

Othcr classes (10 be specitied) ......

Extra premiums p a y d o ..........

Total assurances with profits ....

2. Without participation in profits-

For whole term of lifc.. ..........

.

Other classes (to be specified) ......

Extra prenliunis payablu ..........

Total assurances withor~t profits.,

Total assurances ................... ,

Dcduct re-assurances ...............

Net amount of assurancrs ...........

Adjustments (if any) ...............

Annuities-

Immediate. ........................

Other classes (to be specified). ........

Total of thc results., .........

1

The item, " extra premium," in this Act shall h taken to mean the chargo for any rkk not proviaed

for in the minimutn cantmct premium. If poLicics are issued in or for any country, at rates of pm-

I I I ~ I I ~ ~ I dcducud from tirb1i.r othcr than tho European morktlity tables adopted by the company, separate

schedules, sinlilar in form to the above, mnst be furnished,

[Form referred to under heading No. 8 in Sixth Schedule.]

Da. a. d. Ca S 8. d.

To net liability under assurance By lifn murancc and annuityfunds

and annuity transactions (as per	(a8 per balance-sheet under Third
summary statement provided in	or Fifth Scbdulo) ............

Seventh Schedule). ........... U y deficiency (if any) ..........

To surplas (if my) ............

;E

SEVENTH SCHEDULE.

Statement of the Lge Assurnnce and Annuity business of the on the

[The answers shouldbe numbered to accord with the numbers of tho corresponding questions. Statements of re-assurances, corresponding to the statements in respect

of assurances under headings 2 ,3 ,4, 5, G, and 7, are to be-given.]

l. The published table or tables of premiums for assurances for the whale term of

lifeAwhich were in uue at the date above-mentioned?

2. The

No,

Life Asszcrance Companies Act.-1882.

2. The total number of policiea and amounts assured on lives for the whole term of life which were in existence at the date above-mentioned, distinguishing the partinns assured with and without profits, stating separately the total reversionarg bonuses, and specifying the sums assured for each year of life, from the youngest to the oldest agw ?

3. The amount of premiums receivable annually for each jear of life after deduct- ing the abatements made by the application of bonuses in respect of the respective assurances mentioned under headinr: No. 2, distinguishing ordinary from extra premiums ?

4. The total amount of premiums which have been received from the commence- ment upon all policies mentioned under heading No. 2, which were in force at the above-mentioned date ?

5. The total number of policies and amounts assured under classes cf assurance business other than for the whole term of life, distinguishing the number of policiea and the sums asaured under each class, and stating separately the umouut assured, with and without profite, and the total amount of rsrersionary

' bonuses ?

6. The amount of premiums receivable annually in respect of each such special

class of assurances mentioned under heading No. 5, distinguishing ordinary

from extra premiums ?

7. The total amount of premiums mhich have been received from the commence- ment upon all policies under each special class mentioned under heading No. 5, which were in force at the date above-mentioned ?

8. The total amount of immediate annuities on lives, distinguishing the amount for each year of life?

9. The amount of all annuities other than those specified under heading No. 8, distinguishing the amount payable under each class, the amount of premiums annually receivable, and the amount of consideration money received in respect of each such class, and the total amount of premiums received from the commencement upon all deferred annuities ?

10. The average rate of interest at which the life assnrsnce fund of the company wns invested at the close of each year during thc period since the last inves- tigation, together with a statement of the manner in which such average has

been computcd ?

11. A table of minimum values (if any) allowed for the surrender of policies for the

whole term of life, and for endowments, and endowment assurances, or a

statement of the method pursued in calculating such orr render values, with instances of its application to policiea of different standing, and takep out at varione interval ages, from the youngest to the oldest?

12. Sepurate statements to be furnished for business at other than European rates,

together with a statement of the manner in mhich policies on unhealthy liven

ate dealt with ?

EIQHTH SCHEDULE.

Rule for T7aluing an Annuity.

An annuity shall be valued according tci the tables used by the company which granted such annuity at the time of granting the same; and where such tables cannot be ascertained or adopted to t,he eatisfaction of the Court, then according to the table known in England as the Government Annuities Experience Table, interest

being r~ckoned at the rate of Four Pounds per centum per annum.

Rut6 for Valuing a Policy.

The ~alue of the policy ia to be the difference between the present value of the

reversion in the sum ansured on the decease of the life, including any bonus or addition thereto made before the commencement of the winding-up, and the present value of the future annual premiums.

In calculating such present values the rate of interest is to be assumed as being Four Pounds per centum per annum, and the rate of morlality as that of the tables known in England as the Institute of Actuaries Life Tables.

The premium to be calculated is to be ~ u c h a premium as, according to the said

rate of interest and rate of mortality, is sufficient to provide for the risk incurred b y the office in issuing the policy, exclusive of any uddition thereto for office expenses and other charges. NINTH

45' & 46" VICTORI&, No. 277

Life Assurance Contpnnies Act.-1 88 2,

XINTH SCHEDULE.

When an assurance company is being wound up by the Court, or subject to

the supervision of the Court, the official liquidator, in case of all persona appear-

ing by the books of the company to be entitled to or interested in policies granted by such company for life assurance endowment, annuity, or other pay- ment, is to ascertain the values of such policies, and give notice of such value to such persona; and any person to whom notice is so given shall be bound by the value so ascertained, unleas he gives notice of his intention to 'dispute such value in manner and within a time to be prescribed by a rule or order of the Court.

TENTH SCHEDULE.

Memorandum of l'ran.rfel-.

p------ - -I--

Data or

, l

and state Tnnfcrec. l

whether i 1