INSURANCE ACT, 1936 (1936_act_45) | IE

ISB Act 1936-08-14

Schedule 1 INSURANCE ACT, 1936 Open official source

FIRST SCHEDULE. Conditions Affecting Amalgamated Companies Under Part III of this Act.

Conditions Affecting Amalgamated Companies Under Part III of this Act.

1. The memorandum and articles of association of every amalgamated company shall be subject to the approval of the Minister for Finance after consultation by him with the Minister.

2. The memorandum of association of every amalgamated company shall provide—

(a) that the registered office of such company shall be situate in the county borough of Dublin;

(b) that the principal objects of such company shall include the carrying on of life assurance business or the carryon of industrial assurance business or the carrying on of both such businesses, but not the carrying on of any other class of assurance business;

(c) that the liability of the members of such company shall be limited.

3. The articles of association of every amalgamated company shall specify the number of directors (including the chairman) of such company and the number so specified shall not be less than five and shall not be more than seven.

4. The articles of association of every amalgamated company shall provide—

(a) that, so long as the Minister for Finance holds not less than one half (in nominal value) of the issued shares of such company,—

(i) in case the number of the directors of such company is seven, four of the said directors shall be nominated by the Minister for Finance from time to time, as occasion requires,

(ii) in case the number of directors of such company is less than seven, three of the said directors shall be nominated by the Minister for Finance from time to time as occasion requires,

(iii) the chairman of the directors shall be nominated from time to time by the Minister for Finance from amongst the directors nominated by him;

(b) that there shall be a managing director of such company, and, subject to the next following paragraph, the directors of such company shall from time to time appoint one of their body to be managing director of such company;

(c) that the first managing director of such company shall be such one of the directors of such company as the Minister for Finance may appoint and shall hold the office of managing director for such period, not exceeding five years, on such terms, and subject to such conditions as the said Minister shall direct;

(d) that such company shall have power for the purposes of such company to raise money by means of debentures subject to the restrictions imposed by this Act and to the following restrictions, that is to say:—

(i) the amount so raised shall not exceed at any time the paid up share capital of such company, and

(ii) the said power shall not, without the consent of the Minister for Finance, be exercisable at any time while the said Minister holds more than one fifth (in nominal value) of the issued shares of such company;

(e) that, so long as the Minister for Finance holds any shares in such company, no person shall be capable of being appointed auditor of such company unless the said Minister has approved of the appointment of such person to such office.

ISB Act 1936-08-14

Schedule 2 INSURANCE ACT, 1936 Open official source

SECOND SCHEDULE. Additional Particulars of Industrial Assurance Valuations.

Additional Particulars of Industrial Assurance Valuations.

1.—(1) An analysis as near as may be of the premium income of an industrial assurance company in respect of each of the five years preceding the date as at which such valuation was made into income arising from—

(a) policies which were not of more than one year's duration when such income arose, and

(b) policies which were of more than one year's duration when such income arose.

(2) Every such analysis shall be given separately for policies in respect of which the premiums are payable weekly and for policies in respect of which the premiums are payable at longer intervals than one week.

2. The amount, if any, by which the value of the “Office Yearly Premiums” as shown in respect of each item in the “Form referred to under Heading No. 7 in the Fourth Schedule (A)” to the Act of 1909, has been reduced in order to secure that no policy shall be treated as an asset.

3. If the proportion of the annual premium income reserved as a provision for future expenses and profits as stated in answer to question No. 5 of the Fourth Schedule “(A)—Form applicable to Life Assurance Business” of the Act of 1909, is not uniform for all policies of the same class, specimens of the proportion so reserved in respect of policies effected at such ages and having been in force for such periods as the Minister may select.

4. Specimen values of the net liabilities under policies (exclusive of any bonuses added) according to the basis of valuation adopted in respect of each of the principal classes of assurances for policies effected at such ages and for such duration as the Minister may select.

5. A statement (to be given separately for each decennial group of ages) of the actual number of deaths at ages over ten years in the five years preceding the date as at which such valuation was made under policies for the whole term of life in comparison with the number of deaths which would have occurred if the mortality experience had been in exact agreement with the table of mortality employed for the purpose of such valuation.

ISB Act 1936-08-14

Schedule 3 INSURANCE ACT, 1936 Open official source

THIRD SCHEDULE. Rules for Ascertaining the Amount of a Free Paid-up Policy and the Cash Surrender Value of any Policy of Industrial Assurance.

Rules for Ascertaining the Amount of a Free Paid-up Policy and the Cash Surrender Value of any Policy of Industrial Assurance.

PART I.

General Rules.

1. Interest is to be assumed at the rate of four per cent. per annum.

2. The rate of mortality is to be assumed according to the Saorstát Life Table No. 1 (Males).

3. The age of the person whose life is assured under a policy of industrial assurance in respect of which premiums are payable shall be obtained by adding to the age attained by such person at his birthday next after the date of the issue of such policy, the duration of such policy in completed years at the date at which the last premium paid thereon became due.

4. The age of the person whose life is assured under a free paid-up policy of industrial assurance shall be obtained by adding to the age attained by such person at his birthday next after the date of the issue of the original policy of industrial assurance the number of completed years which have elapsed between that date and the date as at which the value of such free paid-up policy is required to be ascertained.

5. The net premium shall be such premium as at the assumed rate of interest and the assumed rate of mortality and at the age of the person whose life is assured at such person's birthday next following the date of the policy is sufficient to provide for the risk incurred by the industrial assurance company in issuing such policy, exclusive of any addition thereto for office expenses and other charges, but where the risk so incurred has been increased after the issue of such policy the net premium shall be calculated as though such increased risk had attached to such policy at the date of the issue of such policy.

6. The value of a policy of industrial assurance in respect of which premiums are payable shall be taken to be the difference between the present value, as at the date on which the last premium paid became due, of the reversion in the sum assured, including any bonus added thereto, according to the contingency upon which it is payable, and the present value as at the said date of the future net premiums.

7. The value of a free paid-up policy of industrial assurance shall be taken to be the present value at the date as at which the value is required to be ascertained of the reversion in the sum assured, including any bonus added thereto, according to the contingency upon which it is payable.

8. Notwithstanding anything contained in this Schedule, a policy of industrial assurance in respect of which premiums are payable shall not for the purposes of this Schedule attain a value unless and until such policy has been in force for two completed years.

PART II.

Policies of Industrial Assurance for the Whole Term of Life.

1.—(1) In the case of a policy of industrial assurance, other than any such policy issued before the person whose life is assured attained the age of six years, the date of the policy may be assumed to be one year after the actual date thereof, and, if it is so assumed, the duration of the policy may be assumed to be one year less than the actual duration.

(2) In the case of a policy of industrial assurance issued before the person whose life is assured attained the age of six years, no account shall be taken of any period for which the policy was in force before the anniversary of the date of the issue of such policy next preceding the date on which such person attained the age of seven years.

2. The amount of a free paid-up policy of industrial assurance shall be a sum bearing the same proportion to seventy-five per cent. of the value of the policy in relation to which such free paid-up policy is issued as the sum of one pound bears to the value of the reversion in the sum of one pound payable on the death of the person assured.

3. The cash surrender value of the surrendered policy shall be 90 per cent. of the present value, at the date as at which such value is required to be ascertained, of the reversion in the sums assured (including any bonus added thereto) under the free paid-up policy which the surrendered policy would be entitled to receive, or, if the surrendered policy is a free paid-up policy, to 90 per cent. of the present value at the said date of the reversion in the sums assured (including any bonus added thereto) under such free paid-up policy.

PART III.

Endowment and Endowment Assurance Policies.

1.—(1) Every free paid-up policy shall assure on the events on which the sums assured by the surrendered policy were payable, payment of sums bearing the same proportion to the said sums assured by the surrendered policy (including any addition by way of bonus) as the amount of the premiums actually paid under the surrendered policy bears to the amount of all of the premiums which would have been payable under the surrendered policy had the full number of premiums become payable and been paid thereunder.

(2) The date of a policy of industrial assurance may be assumed to be one year after the actual date thereof, and, if it is so assumed, the amount of the premiums assumed under the next preceding sub-paragraph of this paragraph to have been paid, and the full number of premiums payable thereunder may be calculated from the assumed date of the policy.

2. Where the surrendered policy provided for the payment of a sum by way of return of premium on a specified event, the free paid-up policy shall provide for the repayment on the happening of that event of such part of the premiums actually paid under the surrendered policy as would have been repayable on that event if such policy had remained in force.

3. The cash surrender value of the surrendered policy shall be ninety per cent. of the present value (at the date as at which such value is required to be ascertained) of the reversion in the sums assured (including any bonus added thereto) under the free paid-up policy which the surrendered policy would be entitled to receive, or, if the surrendered policy is a free paid-up policy to ninety per cent. of the present value (at the said date) of the reversion in the sums assured under such free paid-up policy, but so that, where the remaining term of the surrendered policy is less than five years, the following percentages shall be substituted for the said ninety per cent., that is to say:—

(a) ninety-two per cent. where the remaining term is less than five years but not less than four years, and

(b) ninety-four per cent. where the remaining term is less than four years but not less than three years, and

(c) ninety-six per cent. where the remaining term is less than three years but not less than two years, and

(d) ninety-eight per cent. where the remaining term is less than two years.

PART IV.

Basis of computation when Parts I, II and III of this Schedule do not apply.

Where the terms or conditions on which the sums assured by a policy of industrial assurance are payable, whether as originally agreed on or as subsequently varied, are such as to render the method of calculating the amount of the free paid-up policy mentioned in Parts I, II and III of this Schedule inapplicable, the basis of computation of the amount of such free paid-up policy shall be such as shall be approved of by the Minister.

ISB Act 1936-08-14

Schedule 4 INSURANCE ACT, 1936 Open official source

FOURTH SCHEDULE. Limitations on Rights on Forfeiture for Non-payment of Premium.

Limitations on Rights on Forfeiture for Non-payment of Premium.

PART I.

Policies of Whole Life Assurance.

Year in which the forfeiture occurs.

Minimum period of payment of premiums.

1938

10 years

1939

9 years

1940

8 years

1941

7 years

1942

6 years

1943

5 years

1944

4 years

1945, or any subsequent year

3 years

PART II.

Endowment or Endowment Assurance Policies, where the Original Term of the Policy is not Less than 16 Years.

Year in which the forfeiture occurs.

Minimum period of payment of premiums.

1938

10 years

1939

9 years

1940

8 years

1941

7 years

1942

6 years

1943

5 years

1944

4 years

1945, or any subsequent year

3 years

PART III.

Endowment or Endowment Assurance Policies, where the Original Term of the Policy is Less than 16 Years.

Year in which the forfeiture occurs.

Minimum period of payment of premiums.

1938

10 years

1939

9 years

1940

8 years

1941

7 years

1942

6 years

1943

5 years

1944

4 years

1945

3 years

1946, or any subsequent year

2 years

ISB Act 1936-08-14

Schedule 5 INSURANCE ACT, 1936 Open official source

FIFTH SCHEDULE. Conditions to which the Company is to Conform.

Conditions to which the Company is to Conform.

1. The Memorandum and Articles of Association of the Company shall be subject to the approval of the Minister for Finance after consultation by him with the Minister for Industry and Commerce.

2. The Memorandum of Association of the Company shall provide—

(a) that the name of the Company shall be the Re-Insurance Company of Ireland, Limited;

(b) that the registered office of the Company shall be situate in Dublin;

(c) that the principal objects of the Company shall include the business of re-insuring assurance business and the doing of all such things as are required by Part VI of this Act or by the Minister or the Minister for Finance under Part VI of this Act for the purpose of transacting such business and the further re-insuring of the whole or any part of such business;

(d) that the liability of the members of the Company shall be limited;

(e) that the amount of the share capital of the Company shall not exceed five hundred thousand pounds in nominal value which shall be divided into shares of one pound each or such other denomination or such denominations as shall be specified in the said Memorandum.

3. The Articles of Association of the Company shall specify the number of directors (including the chairman) of the Company and the number so specified shall be seven or five.

4. The Articles of Association of the Company shall provide—

(a) that, so long as the Minister for Finance holds not less than one half (in nominal value) of the issued shares of the Company—

(i) in case the number of the directors of the Company is seven, four of the said directors shall be nominated by the said Minister from time to time as occasion requires,

(ii) in case the number of directors of the Company is five, three of the said directors shall be nominated by the said Minister from time to time as occasion requires,

(iii) the Chairman of the directors shall be nominated from time to time by the said Minister from amongst the directors nominated by him;

(b) that there shall be a managing director of the Company, and, subject to the next following sub-paragraph, the directors of the Company shall from time to time appoint one of their body to be managing director of the Company;

(c) that the first managing director of the Company shall be such one of the directors of the Company as the Minister for Finance may appoint and shall hold the office of managing director for such period, not exceeding five years, on such terms, and subject to such conditions as the said Minister may direct;

(d) that the Company shall have power for the purposes of the Company to raise money by means of debentures, subject however as follows:—

(i) the amount so raised shall not exceed at any time the paid up share capital of the Company, and

(ii) the said power shall not, so long as the guarantee by the Government of Saorstát Eireann continues in respect of contracts of re-insurance entered into by the Company, be exercisable without the consent of the Minister for Finance;

(e) that, so long as the Minister for Finance holds any shares of the Company, no person shall be capable of being appointed auditor of the Company unless the approval of the said Minister to the nomination of such person to the office of auditor has been given.

ISB Act 1936-08-14

Schedule 6 INSURANCE ACT, 1936 Open official source

SIXTH SCHEDULE. FORM APPLICABLE TO MECHANICALLY PROPELLED VEHICLE INSURANCE BUSINESS.

FORM APPLICABLE TO MECHANICALLY PROPELLED VEHICLE INSURANCE BUSINESS.

STATEMENT of the estimated liability in respect of outstanding claims arising in the year of account, and in the preceding year or years; computed as at the end of the year in which the claims arose, and as at the end of the year of account; with particulars as to the number and amount of the claims actually paid in the intervening period.

I. Claims arising during the year of account ending _________ 19_________

(a) Particulars as to claims arising and settled during the year of account.

Total Amount Paid

Class of Claim

No. of Claims

By Sums Insured

By Costs and expenses

Total of columns (3) and (4)

(1)

(2)

(3)

(4)

(5)

£

(i) Third Party

(ii) All other claims

Total

Notes.—1. All claims arising under one policy and out of a single occurrence shall be treated as one claim for the purposes of this Schedule.

2. Under the headings “By costs and expenses” (column (4) of the above Form) and “Total of columns (3) and (4)” (column (5) of the above Form) the amounts need not be segregated in each of the said headings in the said columns (4) and (5) as between—(i) third party claims, and (ii) all other claims.

(b) Particulars as to claims arising during and outstanding at the end of the year of account.

Amount paid during Year of Account

Estimated Liability

Class of Claim

No. of Claims

By sums insured

By costs and expenses

By sums insured

By costs and expenses

Total of columns (3) to (6)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

£

(i) Third Party

(ii) All other claims.

Total

Notes.—1. All claims arising under one policy and out of a single occurrence shall be treated as one claim for the purposes of this Schedule.

2. Under the headings “By costs and expenses” (columns (4) and (6) of the above Form) and “Total of columns (3) to (6)” (column (7) of the above Form) the amounts need not be segregated under each of the said headings in the said columns (4), (6) and (7) as between—(i) third party claims, and (ii) all other claims.

II. Outstanding claims arising during the first year preceding the year of account, ending ______________ 19______

Estimated liability in respect of claims outstanding as at above date

Claims paid during the period of one year between the above date and the end of the year of account

Estimated liability in respect of claims outstanding as at the end of year of account

Class of Claim

Terminated within such period

Not terminated within such period

Total of columns (6), (7), (9), (10), (12) and (13)

No.

By sums insured

By costs and expenses

No.

By sums insured

By costs and expenses

No.

By sums insured

By costs and expenses

No.

By sums insured

By costs and expenses

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

(13)

(14)

£

(i) Third party

(ii) All other claims

Total

Notes.—1. If there are claims outstanding which arose during the second year preceding the year of account, or earlier, particulars are to be furnished on a form similar to this Form II.

2. All claims arising under one policy and out of a single occurrence shall be treated as one claim for the purposes of this Schedule.

3. Under the headings “By costs and expenses” (columns (4), (7), (10), and (13) of the above Form) and “Total of columns (6), (7), (9), (10), (12),. and (13)” (column (14) of the above Form) the amounts need not be segregated under each of the said headings in the said columns (4), (7), (10), and (13) as between—(i) third party claims, and (ii) all other claims.

III. Summary of estimated liability in respect of claims outstanding as at the end of the year of account.

As per Statement I (b)

£

” ” II

£

” further schedules in the form of Statement II (if required)

£_________________

Total estimated liability in respect of outstanding claims as at the end of the year of account

£

Total payments during year of account

£_________________

Total claims paid and outstanding as shown in revenue account

£_________________

INSURANCE ACT, 1936

Table of Provisions (6)

Statutory Text (6 Articles)

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