Insurance Act, 1936

Insurance Act, 1936 Skip to content Disclaimer Feedback Helpdesk Gaeilge Léim go dtí an t-ábhar Séanadh Aiseolas Deasc chabhrach English Gaeilge English Produced by the Office of the Attorney General Táirgthe ag Oifig an Ard-Aighne Home Legislation Acts of the Oireachtas Statutory Instruments Pre-1922 Legislation Constitution External Resources Bills (Houses of the Oireachtas) Iris Oifigiúil / Official Gazette Revised Acts (LRC) Classified List of Legislation (LRC) Translations (acts.ie) Translations (Houses of the Oireachtas) Government Publications for Sale EU Law (EUR-Lex) FAQ Disclaimer Feedback Helpdesk Search Baile Reachtaíocht Achtanna an Oireachtais Ionstraimí Reachtúla Reachtaíocht Réamh-1922 Bunreacht Acmhainní Seachtracha Billí (Tithe an Oireachtais) Iris Oifigiúil Achtanna Athbhreithnithe (CAD) (An Coimisiún um Athchóiriú an Dlí) Liosta Rangaithe Reachtaíochta Aistriúcháin (achtanna.ie) Aistriúcháin (Tithe an Oireachtais) Foilseacháin Rialtais ar Díol Dlí AE (EUR-Lex) CCanna (Ceisteanna Coitianta) Séanadh Aiseolas Deasc chabhrach Cuardach TitleTeideal Year(s) or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile ActsAchtanna 1936 Insurance Act, 1936 Insurance Act, 1936 Permanent Page URL View by SectionAmharc de réir Ailt View Full ActAmharc ar an Acht Iomlán Bill History Stair Bille Commencement, Amendments, SIs made under the Act Tosach Feidhme, Leasuithe, IRí arna ndéanamh faoin Acht Print Full ActPriontáil an tAcht Iomlán Number 45 of 1936.

INSURANCE ACT, 1936.

ARRANGEMENT OF SECTIONS

PART I

Preliminary and General Section

Section 1

Short title and citation.

Section 2

Commencement of this Act.

Section 3

Definitions.

Section 4

Expenses.

Section 5

Regulations.

Section 6

Restriction on operation of this Act.

Section 7

Repeals.

PART II

Assurance Licences

Section 8

Prohibition of unlicensed assurance business.

Section 9

Prohibition of insuring with unlicensed insurer.

Section 10

Transactions deemed to be assurance business in Saorstát Eireann.

Section 11

Applications for assurance licences.

Section 12

Grant of assurance licences.

Section 13

Special provisions in relation to certain foreign companies.

Section 14

Special provisions in relation to syndicates.

Section 15

Restrictions on grant of assurance licences.

Section 16

Appeal against refusal of application for assurance licence.

Section 17

Form, etc., of assurance licence.

Section 18

Transfer of assurance licences.

Section 19

Forfeiture of assurance licence.

Section 20

Revocation, etc., of assurance licences.

Section 21

Register of licences.

Section 22

Obligation of assurance companies to deposit moneys with Accountant of Courts of Justice.

Section 23

Obligation of the Committee of Lloyd's to make deposits.

Section 24

Transfer of existing deposits under the Act of 1909.

Section 25

Payment of judgement debts out of deposits.

Section 26

Release of deposits.

Section 27

Release of deposits made by the Committee of Lloyd's.

PART III

Amalgamation and Transfer of Certain Assurance Businesses

Section 28

Submission to Minister of scheme for amalgamation of assurance companies.

Section 29

Investigation of amalgamation scheme by the Minister.

Section 30

Approval of scheme by the Minister.

Section 31

Confirmation and sanction of amalgamation scheme by the High Court.

Section 32

Effect of confirmation and sanction of amalgamation scheme.

Section 33

Rights of amalgamated company for purposes of Part II.

Section 34

Restriction on application of section 13 of the Act of 1909.

Section 35

Restriction on issue of share capital by an amalgamated company.

Section 36

Underwriting of and subscription for shares of amalgamated companies by Minister for Finance.

Section 37

Issue of moneys from the Central Fund.

Section 38

Disposal of dividends, etc., received by the Minister for Finance.

Section 39

Exercise by the Minister for Finance of powers of shareholder.

Section 40

Power of Minister for Finance to hold and sell shares.

Section 41

Consultation by Minister for Finance with Minister.

Section 42

Alteration of memorandum and articles of association of amalgamated company.

Section 43

Obligation of amalgamated company to furnish balance sheets, etc.

PART IV

Winding up and Inspection of Insolvent Assurance Companies

Section 44

Definition of insolvency.

Section 45

Power of Minister to petition for winding up of assurance company.

Section 46

Powers in cases of assurance companies of doubtful solvency.

Section 47

Evidence of inability to pay debts.

PART V

Industrial Assurance Business

Section 48

Definitions in this Part.

Section 49

Application of this Part of this Act in certain cases.

Section 50

Additional purposes for which industrial assurance policies may be issued.

Section 51

Assurances on lives of children under the age of ten years.

Section 52

Validation of certain policies.

Section 53

Prohibition of issue of illegal policies.

Section 54

Application of Act of 1909 to industrial assurance.

Section 55

Industrial assurance valuations.

Section 56

Rejection of valuation by Minister.

Section 57

Requisition of additional particulars by the Minister.

Section 58

Time for making first industrial assurance valuation.

Section 59

Time for deposit of valuation by certain companies.

Section 60

General meetings of industrial assurance companies.

Section 61

Contents of proposals for industrial assurance policies.

Section 62

Contents of industrial assurance policies.

Section 63

Industrial assurance proposals and policies.

Section 64

Admission of age of life assured.

Section 65

Return of policies, etc., after inspection.

Section 66

Forfeiture or non-payment of premium.

Section 67

Rights of holder of policy forfeited for non-payment of premium.

Section 68

Assured persons transferring from one company to another company.

Section 69

Payment of claims.

Section 70

Value of industrial assurance policies.

Section 71

Saving for certain policies issued before 3rd December, 1909.

Section 72

Decision of disputes between industrial assurance companies and others.

Section 73

Disputes as to continuance of assured life.

Section 74

Certain restrictions in relation to collectors.

Section 75

Restriction on employment of persons to procure new business.

Section 76

Service or notices.

PART VI

The Re-Insurance Company of Ireland, Limited

Section 77

Formation and registration of Re-Insurance Company of Ireland, Limited.

Section 78

Loan to the Company to pay expenses of formation.

Section 79

Issue of share capital of the Company.

Section 80

Underwriting by the Minister for Finance of issue of shares.

Section 81

Charge of moneys on the Central Fund.

Section 82

Payment of dividends, etc., into the Exchequer.

Section 83

Powers of the Minister for Finance as shareholder.

Section 84

Powers of Minister for Finance in respect of shares held by him.

Section 85

Alteration of memorandum and articles of association of the Company.

Section 86

Obligation of the Company to furnish balance sheets, etc.

Section 87

Inspection by Minister of books, etc., of the Company.

Section 88

Statistics and returns to be made by the Company.

Section 89

Obligation to re-insure with the Company.

Section 90

State guarantee of re-insurance contracts.

PART VII

Miscellaneous

Section 91

Extension of bond investment business.

Section 92

Prohibition of borrowing on security of assurance fund.

Section 93

Place of payment of sum assured.

Section 94

Issue of policies etc., in Saorstát Eireann.

Section 95

Amendment of Fifth Schedule to Act of 1909.

Section 96

Alteration of Schedules to Act of 1909 and this Act.

Section 97

Returns, etc., by foreign companies.

Section 98

Returns by assurance companies of re-insurance business.

Section 99

Accounts, etc., to be furnished by syndicate.

Section 100

Additional contents of revenue account.

Section 101

Additional contents of balance sheet.

Section 102

Additional statement to be furnished by certain foreign companies.

Section 103

Additional statement in respect of mechanically propelled vehicle insurance business.

Section 104

Application of Act of 1909 to certain classes of assurance business.

Section 105

Application of moneys received by assurance companies.

Section 106

Re-insurance (prohibition) order.

Section 107

Rates of premiums order.

Section 108

Issue of policies in the Irish language.

Section 109

Contravention, etc., of Act by assurance company or syndicate.

Section 110

Time limit for prosecution of offences.

FIRST SCHEDULE.

Conditions Affecting Amalgamated Companies Under

Part III

of this Act.

SECOND SCHEDULE.

Additional Particulars of Industrial Assurance Valuations.

THIRD SCHEDULE.

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

FOURTH SCHEDULE.

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

FIFTH SCHEDULE.

Conditions to which the Company is to Conform.

SIXTH SCHEDULE.

Form applicable to mechanically propelled vehicle insurance business.

Acts Referred to Adaptation of Enactments Act, 1922 No. 2 of 1922 Local Authorities (Mutual Assurance) Act, 1926 No. 34 of 1926 Road Traffic Act, 1933 No. 11 of 1933 Number 45 of 1936.

INSURANCE ACT, 1936.

AN ACT TO MAKE FURTHER AND BETTER PROVISION IN RELATION TO ASSURANCE BUSINESS AND PERSONS CARRYING ON THAT BUSINESS OR ANY BRANCH THEREOF, TO MAKE PROVISION FOR THE FORMATION AND REGISTRATION OF A COMPANY HAVING FOR ITS PRINCIPAL OBJECT THE RE-INSURANCE OF INSURANCE BUSINESS, AND TO MAKE PROVISION FOR OTHER MATTERS CONNECTED WITH THE MATTERS AFORESAID. [14th August, 1936.] BE IT ENACTED BY THE OIREACHTAS OF SAORSTÁT EIREANN AS FOLLOWS:—

PART I.

Preliminary and General.

Short title and citation.

1.—(1) This Act may be cited as the Insurance Act, 1936.

Commencement of this Act.

2.—This Act shall come into operation on such day or days as may be fixed therefor by any order or orders of the Minister, either generally or with reference to any particular Part, and different days may be so fixed for different Parts of this Act, but no order shall be made by the Minister under this section in relation to

Part VI

of this Act without the consent of the Minister for Finance.

Definitions.

3.—In this Act— the expression “the Minister” means the Minister for Industry and Commerce; the word “prescribed” means (save where otherwise expressly stated) prescribed by regulations made by the Minister under this Act; the expression “assurance business” means any of the following classes of business, that is to say:— (a) life assurance business, (b) industrial assurance business, (c) fire insurance business, (d) accident insurance business, (e) bond investment business, (f) employers' liability insurance business, (g) mechanically propelled vehicle insurance business, (h) public liability insurance business, (i) engineering insurance business, (j) glass insurance business, (k) guarantee insurance business, (l) burglary insurance business; the expression “life assurance business” does not include any business which is industrial assurance business, but subject to that over-riding limitation the said expression means the business of effecting contracts of assurance upon human life, including the payment of money on death (except on death by accident only) and including contracts of assurance the premiums in respect of which are payable for a term dependent on human life, and also including contracts for the granting of annuities on or with reference to human life (other than superannuation allowances and annuities payable out of any funds applicable solely to the relief and maintenance of persons engaged or who have been engaged in a particular profession, trade or employment or of the dependants of such persons) and also including contracts which are attached to or dependent on contracts of assurance on human life and under which the assurer has no right of cancellation and which provide for the payment of moneys in case of fatal or other accident to or disease of the assured; the expression “industrial assurance business” means the business of effecting assurances upon human life where the premiums in respect of such assurances are payable at intervals of less than two months and are collected by means of collectors, (including contracts which are attached to or dependent on such assurances and under which the assurer has no right of cancellation and which provide for the payment of moneys in case of fatal or other accident to or disease of the assured) but the said expression does not include the business of effecting any of the following assurances, that is to say:— (a) assurances effected, whether before or after the passing of this Act, by an assurance company which was carrying on assurance business before the date of the passing of this Act and which at that date had no assurances outstanding the premiums on which were payable at intervals of less than one month, so long as such company continues not to effect any such assurances, and

(b) assurances effected before the date of the passing of this Act, the premiums in respect of which are payable at intervals of one month or upwards, and which have up to the commencement of the Part of this Act relating to industrial assurance business been treated as part of the business transacted by a branch other than the industrial assurance branch of the company which effects such assurances, and (c) assurances for twenty-five pounds and upwards effected after the passing of this Act, the premiums in respect of which are payable at intervals of one month or upwards, but of less than two months, and which are treated as part of the business transacted by a branch other than the industrial assurance branch of an assurance company, in cases where the Minister certifies that the terms and conditions of such assurances are on the whole not less favourable to the assured than the terms and conditions imposed by this Act; the expression “fire insurance business” means the business of effecting contracts of insurance against loss by or incidental to fire; the expression “accident insurance business” means the business of effecting contracts of insurance against or otherwise in relation to personal accidents, whether fatal or not, disease or sickness, or any class of personal accidents, disease or sickness, except any contracts which are attached to or dependent on contracts of life assurance business or industrial assurance business and which confer benefits on the assured in case of fatal or other accident to or disease of the assured and under which the assurer has no right of cancellation; the expression “bond investment business” does not include life assurance business, industrial assurance business, or sinking fund or capital redemption business, but subject to that overriding limitation the said expression means the business of issuing bonds or endowment certificates by which the company carrying on such business, in return for subscriptions payable at periodical intervals of less than six months, contracts to pay the holder of such bond or certificate a sum of money at a future date; the expression “employers' liability insurance business” means the business of effecting with employers contracts of insurance against liability to pay compensation or damages to workmen in their employment; the expression “mechanically propelled vehicle insurance business” means the business of effecting contracts of insurance against loss of or damage to or arising out of or in connection with the use of mechanically propelled vehicles, including third party risks;

the expression “public liability insurance business” means the following and no other classes of assurance business, that is to say, the business of effecting contracts of insurance indemnifying the insured against liability to pay compensation or damages to any person in respect of personal injury, loss, or damage sustained by such person through the negligence of the insured or of his servant or agent acting within the scope of his employment or authority as such servant or agent (as the case may be) and the business of effecting contracts of insurance indemnifying the insured against liability to pay compensation or damages arising out of or in connection with the negligent use or condition of the property, whether real or personal, of the insured; the expression “engineering insurance business” means the following and no other class of assurance business, that is to say, the business of effecting contracts of insurance against loss arising from damage or injury to any boiler or other apparatus containing gas, vapour or liquid under pressure or any mechanical apparatus or other machinery or arising in any other way from or in connection with the use of any such apparatus or machinery, including liability to pay compensation to third parties in relation to such apparatus or machinery; the expression “glass insurance business” means the business of effecting contracts of insurance against loss by or incidental to the breakage of glass; the expression “guarantee insurance business” means the business of effecting contracts of insurance with employers against loss by or incidental to fraud, embezzlement, misappropriation, forgery, theft, or larceny by employees and the business of issuing bonds or contracts of suretyship; the expression “burglary insurance business” does not include guarantee insurance business, but subject to that overriding limitation the said expression means the business of effecting contracts of insurance against loss by or incidental to burglary, housebreaking, theft, or larceny; the expression “sinking fund or capital redemption business” means the business of effecting contracts of insurance (otherwise than upon human life) whereby the insurer in consideration of the payment to him of one premium, or of two or more premiums paid at intervals of not less than two months, agrees to pay to the insured at a future date or on future dates one sum or a series of sums; the word “policy” means any document or other writing by which any contract of assurance is made or agreed to be made or which is evidence of any such contract;

the word “premium” means any money or money's worth payable or paid to any person who carries on an assurance business and who in consideration of such money or money's worth undertakes any liability under any policy, bond or certificate; the expression “assurance company” means a company (whether registered in Saorstát Eireann under the Companies Acts, 1908 to 1924, or incorporated under the law of some country other than Saorstát Eireann) which carries on any assurance business, and the said expression unless the context otherwise requires, includes a society, association, or other body which is incorporated or otherwise constituted under the law of a country other than Saorstát Eireann and carries on assurance business; the expression “Saorstát Eireann company” means an assurance company registered in Saorstát Eireann under the Companies Acts, 1908 to 1924; the expression “foreign company” means an assurance company which is incorporated under the law of a country other than Saorstát Eireann, and the said expression, unless the context otherwise requires, includes a society, association or other body which is incorporated or otherwise constituted under the law of a country other than Saorstát Eireann; the word “syndicate” means any group of underwriters who are members of Lloyd's and who are certified by the Chairman of the Committee of Lloyd's to be a syndicate for the purposes of this Act; the word “actuary” means an actuary who possesses the prescribed qualifications; the expression “the Act of 1908” means the Companies (Consolidation) Act, 1908 ; the expression “the Act of 1909” means the Assurance Companies Act, 1909 , as adapted by or under the Adaptation of Enactments Act, 1922 (No. 2 of 1922), and as amended or extended by any other enactment.

Expenses.

4.—(1) All expenses incurred by the Minister in the execution of this Act and not otherwise provided for by this Act shall, to such extent as shall be sanctioned by the Minister for Finance, be paid out of moneys provided by the Oireachtas.

Regulations.

5.—The Minister may by order make regulations in relation to any matter or thing referred to in this Act as prescribed or to be prescribed and for the prescription of which no other provision is made by this Act.

Restriction on operation of this Act.

6.—Nothing in this Act shall affect— (a) the validity or the due continuance and fulfilment of any contract of assurance effected before the commencement of this Part of this Act; or (b) the liability of the life assurance fund or the industrial assurance fund of a company carrying on in Saorstát Eireann at such commencement life assurance business or industrial assurance business to the prejudice of persons who have before such commencement effected policies of life assurance or industrial assurance with any such company; or (c) any business lawfully carried on by societies and other bodies registered in Saorstát Eireann under the Acts relating to friendly societies or to trade unions; or (d) any business which is the insuring against risks arising out of or in connection with the use of aircraft; or (e) any business which was, on the 31st day of October, 1935, lawfully carried on by a trade union not registered in Saorstát Eireann under the Acts relating to trade unions and which is for the time being carried on by such trade union under and in accordance with a permit in that behalf granted by the Minister; or (f) any business which is not assurance business.

Repeals.

7.—(1) The following portions of the Act of 1909 are hereby repealed as on and from the commencement of

Part II

of this Act, that is to say, paragraphs (b), (c) and (d) of section 31, paragraphs (b) and (c) of section 32, paragraphs (a), (d) and (e) of sub-section (1) of section 33, and paragraphs (b) and (c) of section 34, and in section 35 the words “originally established more than twenty years before the commencement of this Act”.

Part V

of this Act.

Part VII

of this Act, that is to say in sub-section (1) of section 3 all words from the words “Provided that” to the end of that sub-section.

PART II.

Assurance Licences.

Prohibition of unlicensed assurance business.

8.—(1) It shall not be lawful for any assurance company or other person to carry on in Saorstát Eireann any assurance business save under and in accordance with a licence (in this Act referred to as an assurance licence) granted by the Minister under this Part of this Act.

Prohibition of insuring with unlicensed insurer.

9.—(1) It shall not be lawful for any person (otherwise than in the course of re-insurance) to effect or to endeavour to effect any contract of assurance with an assurance company or any other person which or who is not the holder of an assurance licence entitling such company or person to effect contracts of assurance of the kind so effected or endeavoured to be effected by such person.

Transactions deemed to be assurance business in Saorstát Eireann.

10.—(1) A Saorstát Eireann company which carries on any class of assurance business shall be deemed, for the purposes of this Act, to carry on assurance business in Saorstát Eireann notwithstanding that the whole or a part of such business is in fact carried on or transacted outside Saorstát Eireann.

Applications for assurance licences.

11.—(1) Any assurance company or any syndicate may apply to the Minister for an assurance licence authorising it to carry on a specified assurance business.

Grant of assurance licences.

12.—(1) Subject to the provisions of this Act, the Minister may, in his discretion, grant or refuse an application for an assurance licence.

Special provisions in relation to certain foreign companies.

13.—Whenever an application has been duly made in accordance with this Act by a foreign company which is a society, association, or other body incorporated or otherwise constituted under the law of a country other than Saorstát Eireann for an assurance licence to carry on life assurance business or industrial assurance business, or whenever an assurance licence has been granted to any such company to carry on either or both of such businesses, the following provisions shall have effect, that is to say:— (a) any alteration in the rules or other instrument defining the constitution of such company and filed with the Registrar of Companies shall be notified to such Registrar within the prescribed time, and (b) any notice, document or legal process may (save as may be otherwise required by or under any rules of court or an order of a court or judge) be served by being left with or sent by prepaid ordinary post to the persons resident in Saorstát Eireann at the addresses of such persons as specified by such company under this Part of this Act, and (c) the Registrar of Companies shall, if satisfied that such company has filed with him the matters required by this Part of this Act to be so filed by it, issue a certificate under his hand certifying that such company has so filed the matters which it is so required to file, and (d) every such certificate shall be prima facie evidence of the matters stated therein and it shall not be necessary to prove the signature of the Registrar of Companies or that he was in fact such Registrar, and (e) the Registrar of Companies shall, if required by any person and on payment to such Registrar by such person of whichever of the following fees is the lesser, that is to say, a fee of six pence for every folio of seventy-two words, or a fee of one pound, issue to such person copies (certified by such Registrar to be true copies) of any of the matters required by this Part of this Act to be filed with such Registrar by any such company and all such copies when so certified shall be prima facie evidence of the contents thereof and it shall not be necessary to prove the signature of such Registrar or that he was in fact such Registrar.

Special provisions in relation to syndicates.

14.—Whenever an application has been duly made in accordance with this Act by a syndicate for an assurance licence to carry on one or more than one class of assurance business other than life assurance business, industrial assurance business, or bond investment business, or whenever an assurance licence has been granted to a syndicate to carry on one or more than one class of assurance business (other than as aforesaid), the following provisions shall have effect, that is to say:— (a) any alteration in the membership of such syndicate shall be notified by the Chairman of Lloyd's to the Registrar of Companies within the prescribed time, and (b) any notice, document or legal process may (save as may be otherwise required by or under any rules of court or an order of a court or judge) be served by being left with the persons resident in Saorstát Éireann specified for that purpose by such syndicate under this Part of this Act or by being sent by prepaid ordinary post to such persons at their addresses as so specified by such syndicate, and (c) the Registrar of Companies shall, if satisfied that such syndicate has filed with him the matters required by this Part of this Act to be so filed by it, issue a certificate under his hand certifying that such syndicate has so filed the matters which it is so required to file, and (d) every such certificate shall be prima facie evidence of the matters stated therein and it shall not be necessary to prove the signature of the Registrar of Companies or that he was in fact such Registrar, and (e) the Registrar of Companies shall if required by any person and on payment to such Registrar by such person of whichever of the following fees is the lesser, that is to say, a fee of sixpence for every folio of seventy-two words, or a fee of one pound, issue to such person a copy (certified by such Registrar to be a true copy) of any of the matters required by this Part of this Act to be filed with such Registrar by such syndicate and every such copy when so certified shall be prima facie evidence of the contents thereof and it shall not be necessary to prove the signature of such Registrar or that he was in fact such Registrar.

Restrictions on grant of assurance licences.

15.—(1) Whenever an application is duly made in accordance with this Act by an assurance company or a syndicate for an assurance licence, the Minister may (without prejudice to any other power of refusal conferred on him by this Act) refuse such application— (a) if such company or the Committee of Lloyd's (as the case may be) has not complied with the provisions of this Part of this Act relating to the deposit of moneys with the Accountant of the Courts of Justice, or (b) if it appears to the Minister that there is reasonable ground for believing that such company is insolvent.

Appeal against refusal of application for assurance licence.

16.—Where the Minister refuses to grant an application for an assurance licence the following provisions shall have effect, that is to say:— (a) the applicant for such licence may, within one month after such refusal, apply in a summary manner to the High Court for a declaration that such licence should be granted to him; (b) the Minister shall be named as respondent in any application to the High Court under the next preceding paragraph of this section; (c) the High Court, if it is satisfied that such applicant has complied or will in due course comply with the provisions of the Act of 1909 and this Act and that, having regard to all the circumstances of the case, it is just and equitable that such licence should be granted to such applicant, may make an order declaring that such licence should be granted to such applicant; (d) whenever the High Court makes an order under this section declaring that an assurance licence should be granted to an applicant therefor, the Minister shall, as soon as conveniently may be, grant, under and in accordance with this Act, such licence to such applicant.

Form, etc., of assurance licence.

17.—Every assurance licence shall— (a) be in the prescribed form, and (b) if granted to an assurance company, state the name of such assurance company, and if granted to a syndicate, state the names and the addresses of the members constituting such syndicate, and (c) state the class or classes of assurance business which may be carried on by such assurance company or syndicate (as the case may be), and (d) be expressed and operate to authorise such assurance company or syndicate (as the case may be) to carry on the class or classes of assurance business stated in such licence, and (e) be and be expressed to be granted subject to the provisions of this Act.

Transfer of assurance licences.

18.—(1) An assurance licence shall not be transferable by the licensee thereunder or by operation of law to any company or other person.

Forfeiture of assurance licence.

19.—Whenever— (a) an assurance licence is granted to a Saorstát Eireann company under a provision of this Act whereby the Minister is required to grant such licence if, but only if, certain conditions are complied with by such company, and (b) one of those conditions is that the issued shares of such company are, to an extent not less than two-thirds (in nominal value) thereof and carrying voting rights (whether immediate or to arise in certain future circumstances), in the beneficial ownership of a person who is or of two or more persons all of whom are citizens of Saorstát Eireann, then and in every such case the condition set forth in the foregoing paragraph (b) shall be deemed to be a continuing condition attached to such licence, and, if such company ceases at any time while such licence remains in force to comply with the said condition, such licence shall forthwith become and be forfeited and void.

Revocation, etc., of assurance licences.

20.—(1) The Minister may, at any time, alter or revoke an assurance licence upon the application in writing in the prescribed form and manner of the licensee under such licence.

Register of licences.

21.—(1) The Minister shall cause a register of licences (in this section referred to as the register of licences) to be kept of all assurance licences.

Obligation of assurance companies to deposit moneys with Accountant of Courts of Justice.

22.—(1) Subject to the provisions of this section, every assurance company which carries on or proposes to carry on assurance business in Saorstát Eireann shall deposit and shall (while such company so carries on the class of assurance business to which any sum deposited under this section relates) keep deposited with the Accountant of the Courts of Justice such one or more of the following sums as is or are applicable to the class or classes of assurance business so carried on by such company, that is to say:— (a) the sum of twenty thousand pounds in respect of each of the following classes of assurance business, that is to say, life assurance business and industrial assurance business, and (b) the sum of twenty thousand pounds in respect of any one or more than one class of assurance business other than life assurance business, industrial assurance business, mechanically propelled vehicle insurance business and glass insurance business, and (c) the sum of fifteen thousand pounds in respect of mechanically propelled vehicle insurance business.

Obligation of the Committee of Lloyd's to make deposits.

23.—(1) Whenever and so long as there is or are a syndicate or two or more syndicates carrying on in Saorstát Eireann any assurance business other than life assurance business, industrial assurance business, bond investment business, mechanically propelled vehicle insurance business, and glass insurance business, the Committee of Lloyd's shall deposit and keep deposited with the Accountant of the Courts of Justice the sum of twenty thousand pounds.

Transfer of existing deposits under the Act of 1909.

24.—(1) Whenever a deposit is, at the commencement of this Part of this Act, maintained in pursuance of the Act of 1909 with the Accountant of the Courts of Justice by an assurance company in respect of a particular class of assurance business and such assurance company is required by this Part of this Act to deposit and keep deposited with the Accountant of the Courts of Justice a sum of money in respect of the same particular class of assurance business, the said deposit so maintained at the commencement of this Part of this Act and the investments then representing the same shall be retained by the Accountant of the Courts of Justice and be deemed to be a deposit made in pursuance of this Part of this Act by such assurance company in respect of the said particular class of assurance business.

Payment of judgment debts out of deposits.

25.—(1) Whenever a Court makes an order, decree, or judgment for the payment of money by an assurance company or a syndicate to any person in respect of a claim under a policy issued by such assurance company or syndicate (as the case may be), the High Court may, on the application in a summary manner of such person, order such money (with or without the costs of such application) to be paid to such person out of the deposit or any particular deposit maintained by such assurance company or by the Committee of Lloyd's (as the case may be) in pursuance of this Act.

Release of deposits.

26.—(1) Whenever an assurance company ceases to carry on any particular class of assurance business in respect of which such assurance company maintains a deposit with the Accountant of the Courts of Justice in pursuance of this Part of this Act, such assurance company may apply in a summary manner to the High Court on notice to the Minister for such order as is mentioned in the next following sub-section of this section.

Release of deposits made by the Committee of Lloyd's.

27.—(1) If, at any time while the Committee of Lloyd's maintains in pursuance of this Part of this Act a deposit of twenty thousand pounds with the Accountant of the Courts of Justice, there is no syndicate carrying on in Saorstát Eireann any assurance business other than life assurance business, industrial assurance business, bond investment business, mechanically propelled vehicle insurance business, or glass insurance business, the Committee of Lloyd's may apply in a summary manner to the High Court on notice to the Minister for such order as is hereinafter mentioned in relation to such deposit.

PART III.

Amalgamation and Transfer of Certain Assurance Businesses.

Submission to Minister of scheme for amalgamation of assurance companies.

28.—(1) Any two or more Saorstát Eireann companies which, on the 31st day of October, 1935, carried on in Saorstát Eireann life assurance business or industrial assurance business or both such businesses (in this Part of this Act referred to as promoting companies) may, notwithstanding anything contained in the articles and memorandum of association of such companies whether such companies do or do not carry on any other class of assurance business, submit to the Minister at any time before the appointed day a scheme in writing for the amalgamation into one company (in this Part of this Act and in the First Schedule to this Act referred to as the amalgamated company) of such promoting companies so far as respects the life assurance business (if any) and the industrial assurance business (if any) carried on by each of them respectively, and the transfer to some other Saorstát Eireann company or companies (in this Part of this Act referred to as the transferee companies) of the several other (if any) classes of assurance business carried on by such promoting companies respectively.

Investigation of amalgamation scheme by the Minister.

29.—(1) When a scheme has been submitted to the Minister under this Part of this Act, the Minister may submit such scheme to some person nominated by him for investigation and report.

Approval of scheme by the Minister.

30.—Whenever a scheme has been submitted to the Minister under this Part of this Act, the Minister may in his absolute discretion approve or refuse to approve of such scheme either before or after the same has been amended in accordance with a requisition made in that behalf by the Minister.

Confirmation and sanction of amalgamation scheme by the High Court.

31.—(1) When the Minister has approved (either with or without amendment) of a scheme submitted to him under this Part of this Act, the promoting companies or the Minister may apply to the High Court for confirmation and sanction of such scheme.

Effect of confirmation and sanction of amalgamation scheme.

32.—(1) Whenever the High Court confirms and sanctions a scheme under this Part of this Act, such confirmation and sanction shall, notwithstanding anything in the memorandum of association of any of the promoting companies concerned in such scheme, be effectual to bind all shareholders and policy holders in and all creditors and debtors of every such promoting company.

Rights of amalgamated company for purposes of Part II.

33.—Whenever any promoting companies have under this Part of this Act become an amalgamated company and all or any of such promoting companies on the 31st day of October, 1935, carried on life assurance business or industrial assurance business or both such businesses, such amalgamated company shall for the purposes of

Part II

of this Act be deemed to be a Saorstát Eireann company which on the said date carried on (as the case may require) either or both of such businesses.

Restriction on application of section 13 of the Act of 1909.

34.—Section 13 of the Act of 1909 shall not apply to any scheme submitted to the Minister under this Part of this Act but, if the Minister refuses to approve of a scheme under this Part of this Act, such non-application shall not affect or prejudice the right of any two or more Saorstát Eireann companies which carry on life assurance business or industrial assurance business or both such businesses (whether they do or do not carry on any other assurance business) to amalgamate or transfer any assurance business under the said section 13.

Restriction on issue of share capital by an amalgamated company.

35.—No issue of the share capital of any amalgamated company shall while the Minister for Finance holds any shares of such company be made without the consent of the Minister for Finance given after consultation with the Minister.

Underwriting of and subscription for shares of amalgamated companies by Minister for Finance.

36.—(1) Subject to the provisions of this section, the Minister for Finance may— (a) subject to such conditions as he may think fit, agree with any amalgamated company that, if any shares in such company about to be offered to the public for subscription are not, within a specified time, taken up by the public, he will take up and pay for such shares or some specified proportion thereof, and (b) from time to time acquire by subscription any shares (of any class or description) of an amalgamated company.

Issue of moneys from the Central Fund.

37.—(1) All moneys from time to time required to meet payments to be made by the Minister for Finance to any amalgamated company in respect of any shares taken up or acquired by him under this Act shall be advanced out of the Central Fund or the growing produce thereof.

Disposal of dividends, etc., received by the Minister for Finance.

38.—All dividends, bonus, and other moneys received by the Minister for Finance in respect of shares of an amalgamated company held by him shall be paid into or disposed of for the benefit of the Exchequer in such manner as the said Minister may direct.

Exercise by the Minister for Finance of powers of shareholder.

39.—The Minister for Finance may, so long as he holds any of the shares of an amalgamated company, exercise all or any of the rights and powers from time to time exercisable by the holder of such shares and, where such rights or powers are exercisable by attorney, the said Minister may, if he so thinks proper, exercise such rights or powers by his attorney.

Power of Minister for Finance to hold and sell shares.

40.—(1) The Minister for Finance may hold, for so long as he thinks fit, the shares of an amalgamated company acquired or taken up by him under this Act and may, as and when he thinks fit, sell all or any of such shares.

Consultation by Minister for Finance with Minister.

41.—The Minister for Finance shall, before exercising any power conferred on him by the articles of association of an amalgamated company in relation to the nomination of directors of such company, consult with the Minister.

Alteration of memorandum and articles of association of amalgamated company.

42.—Notwithstanding anything contained in the Companies Acts, 1908 to 1924, no alteration in the memorandum of association or the articles of association of an amalgamated company which is, while the Minister for Finance holds any shares of such company, made without the previous approval of the Minister for Finance after consultation by him with the Minister, shall be valid and effective.

Obligation of amalgamated company to furnish balance sheets, etc.

43.—(1) Every amalgamated company shall within six months after the end of every accounting year of such company furnish to the Minister and to the Minister for Finance in respect of such accounting year the following documents, audited by the auditor of such company and drawn up in such manner as shall be approved by the Minister for Finance after consultation with the Minister, that is to say, a balance sheet and a profit and loss account, and also a separate revenue account in respect of each class of assurance business carried on by such company.

PART IV.

Winding up and Inspection of Insolvent Assurance Companies.

Definition of insolvency.

44.—A company shall be deemed to be or have been insolvent for the purposes of this Part of this Act on any particular date, present or past, if the circumstances of such company on that particular date are or were such that if proceedings for the winding up of such company were or had been taken on the said date, the Court could, under sections 129 and 130 of the Act of 1908, hold or have held such company to be, on the said date, unable to pay its debts.

Power of Minister to petition for winding up of assurance company.

45.—The Minister may present a petition for the winding-up of an assurance company on the ground that such company is unable to pay its debts within the meaning of sections 129 and 130 of the Act of 1908.

Powers in cases of assurance companies of doubtful solvency.

46.—(1) The Minister may, by notice served upon an assurance company, require such company to furnish to him, within such time as may be specified in such notice, such specified explanations, information, accounts, balance sheets, abstracts and statements as the Minister may consider necessary for determining whether such company is or is not insolvent.

(ii) where a notice of objection so served is withdrawn as aforesaid, the date of such withdrawal, or (iii) where the High Court makes such order as aforesaid, the date of such order.

Evidence of inability to pay debts.

47.—In any proceedings upon a petition presented under this Part of this Act to wind up an assurance company, evidence that such company was insolvent at the close of the period to which the latest accounts and balance sheet of such company furnished to the Minister in pursuance of this Part of this Act relate, or at the date of the service of a notice by the Minister on such assurance company under this Part of this Act, shall be evidence, unless the contrary is proved, that such company is unable, taking into account its contingent and prospective liabilities to pay its debts.

PART V.

Industrial Assurance Business.

Definitions in this Part.

48.—In this Part of this Act— the expression “industrial assurance company” means an assurance company which carries on industrial assurance business; the word “collector” means a person, howsoever remunerated, who makes house to house visits for the purpose of receiving premiums payable on policies of industrial assurance and includes a deputy of or substitute for any such person, and also includes a person who holds' any interest in a collecting book; the expression “collecting book” means any book or document issued by an industrial assurance company and in the custody of a collector in which payments of premiums on foot of policies of industrial assurance are entered; the expression “premium receipt book” means any book or document in which acknowledgments of the receipt of premiums payable in respect of a policy of industrial assurance are entered.

Application of this Part of this Act in certain cases.

49.—(1) Where an assurance company, which formerly carried on industrial assurance business, has ceased, before the commencement of this Part of this Act, to carry on industrial assurance business, this Part of this Act shall apply to such company so long (if at all) as such company continues, after the commencement of this Part of this Act, to be liable on a policy of industrial assurance issued by it before such cesser.

Additional purposes for which industrial assurance policies may be issued.

50.—(1) Amongst the purposes for which industrial assurance companies may issue policies of industrial assurance there shall be included— (a) the insuring of money to be paid for the reasonable expenses in connection with the death and funeral of any of the following persons, that is to say:— (i) of a parent, son, daughter, grandparent, grandchild, step-parent, step-son, step-daughter, brother or sister of the person effecting the policy, or (ii) of an uncle or aunt of the person effecting the policy, where such uncle or aunt at the time when the policy is effected resides with the person effecting the policy, or (iii) of a nephew or niece of the person effecting the policy, where such person at the time when the policy is effected resides with such nephew or niece; (b) subject to the provisions of the next following sub-section of this section, the insuring of money to be paid on the duration for a specified period of the life of a parent, son, daughter, grandparent, grandchild, step-parent, step-son, step-daughter, brother, or sister, or the insuring of money to be paid on the duration for a specified period of the life of an uncle, aunt, nephew, or niece of the person effecting the policy, who resides with such person or with whom such person resides, and in either case either with or without the payment of money in the event of the death of such person before the expiration of such period.

Assurances on lives of children under the age of ten years.

51.—(1) Notwithstanding anything contained in the Life Assurance Act, 1774 , as extended by the Life Insurance (Ireland) Act, 1866 , it shall be lawful for an industrial assurance company to issue policies of industrial assurance on the life of a child under the age of ten years if, but only if, such policies are issued to a parent, grandparent, step-parent, brother, or sister of such child or to an uncle or aunt of such child if such child resides with such uncle or aunt at the time when the policy is effected.

Validation of certain policies.

52.—Every policy of industrial assurance which— (a) is in force at the commencement of this Part of this Act, and (b) would, at the date of the issue of such policy, have been valid if the provisions of this Part of this Act had been in operation at such date, shall, for the purposes of this Part of this Act, be and be deemed always to have been valid and of full force and effect.

Prohibition of issue of illegal policies.

53.—(1) Every industrial assurance company which issues a policy of industrial assurance which is illegal or is ultra vires such company shall be deemed to have made default in complying with the provisions of this Act.

Application of Act of 1909 to industrial assurance.

54.—Industrial assurance business shall, for the purposes of the Act of 1909, be deemed to be a separate class of assurance business and accordingly the said Act shall apply to such business and have effect subject to the following modifications, that is to say:— (a) the provisions relating to life assurance business of the said Act shall apply to industrial assurance business but with the modification that, for the purposes of such application, references in the said Act to “industrial assurance business” and “the industrial assurance fund” shall be substituted for references to “life assurance business” and “the life assurance fund” respectively, and (b) where any expenses of management, or any interest or dividend from investments, or any sums on account of depreciation of securities are apportioned between the industrial assurance business and the life assurance business (if any) carried on by an industrial assurance company, the auditor of such company shall, when auditing the accounts thereof, include in his report on such accounts a special report as to the propriety or otherwise of such apportionment, and (c) a copy of every report of the auditor of an industrial assurance company shall be furnished to the Minister.

Industrial assurance valuations.

55.—The following provisions shall have effect in relation to every valuation (in this Part of this Act referred to as an industrial assurance valuation) made by an industrial assurance company of its industrial assurance business at any time after the expiration of twelve months after the commencement of this Part of this Act, that is to say:— (a) such valuation shall be made by an actuary; (b) the basis of such valuation shall be such as to place a proper value upon the liabilities of such company, regard being had to the mortality experienced among the persons whose lives have been assured in such company, to the average rate of interest from investments, and to the expenses of management (including moneys paid by way of commission), and shall be such as to secure that no policy effected by such company shall be treated as an asset; (c) subject to the provisions of the next following paragraph of this section, where the balance sheet of an industrial assurance company includes in the assets thereof any sums representing expenses of organisation, or of extension of the business of such company, or the purchase of the business or goodwill of any other such company, and the amount of such assets exclusive of such sums (after deducting debts due by such first mentioned company other than debentures and loans), is less than the amount (as the case may be) of the industrial assurance fund or of both the life assurance fund and the industrial assurance fund as shown in such balance sheet, the amount of the industrial assurance fund shown in the valuation balance sheet shall be reduced by whichever of the following amounts or sums is applicable in any particular case, that is to say, by the amount of the deficiency, or by a sum bearing such proportion to that deficiency as the amount of the industrial assurance fund shown in such first mentioned balance sheet bears to the aggregate amount of both the life assurance fund and the industrial assurance fund; (d) the provisions of the next preceding paragraph of this section shall, in the cases and during the periods mentioned in this paragraph, apply to industrial assurance companies with such relaxations thereof as the Minister thinks fit to allow, that is to say:— (i) in the case of an industrial assurance company in the balance sheet of which last issued before the commencement of this Part of this Act any of the sums mentioned in the said next preceding paragraph were included, during a period of seven years next after such commencement, and

(ii) in the case of an industrial assurance company which, after the date as at which the balance sheet of such company last issued before the commencement of this Part of this Act was made up, has, by reason of amalgamation with or transfer of business from any other industrial assurance company, become liable for the contracts and obligations or any of the contracts and obligations of such other company and has, in consideration of such liability, either accepted assets which include any of the sums mentioned in the said next preceding paragraph, or incurred expenditure by way of the purchase of the business or goodwill so mentioned, during a period of seven years after the 31st day of December next following the date of such amalgamation or transfer (as the case may be); (e) where debentures have been issued or loans have been raised and such debentures or loans (as the case may be) are charged on any of the assets of an industrial assurance company in which the industrial assurance fund is invested, there shall be inserted in the valuation balance sheet a note giving the particulars of such charge and stating that the result shown by the valuation is subject to the liability under such charge.

Rejection of valuation by Minister.

56.—(1) Whenever the Minister is satisfied that the provisions of this Part of this Act in relation to any industrial assurance valuation have not been complied with, or that the industrial assurance fund of any industrial assurance company as stated in a valuation balance sheet of such company is greater than the value of the assets available for the liabilities of such fund, due regard being had to the other liabilities of such company and to the said provisions of this Part of this Act, the Minister may, subject to the provisions of the next following sub-section of this section, reject such valuation and may, subject as aforesaid, direct such company to make such alterations therein as may be necessary to secure compliance with the said provisions.

Requisition of additional particulars by the Minister.

57.—The Minister may require an industrial assurance company to furnish to him, in addition to the information which every such company is required to furnish under the Act of 1909, all or any of the particulars mentioned in the Second Schedule to this Act, together with such explanations as he considers necessary to satisfy himself whether an industrial assurance valuation complies with the provisions of this Part of this Act relating to such valuations.

Time for making first industrial assurance valuation.

58.—Notwithstanding anything contained in section 5 of the Act of 1909, the first industrial assurance valuation of an industrial assurance company shall be made within two years after the commencement of this Part of this Act or within such longer period after such commencement as the Minister shall in any particular case appoint.

Time for deposit of valuation by certain companies.

59.—Whenever the Minister is satisfied that an industrial assurance company which is a society, association, or other body incorporated or otherwise constituted under the law of a country other than Saorstát Eireann is unable to deposit with him an industrial assurance valuation or any valuation relating to life assurance business carried on by such company within the time when such valuation should be so deposited by such company the Minister may extend that time to any period not exceeding twelve months after the close of the period to which such valuation relates.

General meetings of industrial assurance companies.

60.—Every industrial assurance company shall hold at least one general meeting of such company every year.

Contents of proposals for industrial assurance policies.

61.—(1) Every proposal for an industrial assurance policy shall, unless— (a) such policy is proposed to be effected on the life and on behalf of a child under the age of sixteen years, or (b) the person whose life is proposed to be assured under such policy is a person in whom the proposer has an insurable interest, contain a declaration by the person whose life is proposed to be assured under such policy that such policy is proposed to be taken out by him and that the premiums thereon will be paid by him.