S.I. No. 78/1940 - Insurance (Deposits) Rules, 1940.

STATUTORY RULES AND ORDERS. 1940. No. 78.

INSURANCE (DEPOSITS) RULES, 1940.

WHEREAS it is enacted by subsection (6) of section 2 of the Assurance Companies Act, 1909, as adapted by or under subsequent enactments and as amended or extended by subsequent enactments and, in particular, by the Insurance Act, 1936 (No. 45 of 1936), that the Minister for Industry and Commerce may make rules with respect to applications for warrants, the payment of deposits, and the investment thereof or dealing therewith, the deposit of stocks or other securities in lieu of money, the payment of the interest or dividends from time to time accruing due on any securities in which deposits are for the time being invested, and the withdrawal and transfer of deposits.

NOW, the Minister for Industry and Commerce, in exercise of the powers conferred on him by section 2 of the Assurance Companies Act, 1909, as so adapted and as so amended or extended, and of every and any other power him in this behalf enabling, hereby makes the following rules :—

1. These Rules may be cited as the Insurance (Deposits) Rules, 1940.

2. The Interpretation Act, 1937 (No. 38 of 1937), applies to these Rules.

3. In these Rules—

the expression " the Minister " means the Minister for Industry and Commerce ;

the expression " the Act of 1909 " means the Assurance Companies Act, 1909, as adapted by or under subsequent enactments and as amended or extended by subsequent enactments and, in particular, by the Act of 1936 ;

the expression " the Act of 1936 " means the Insurance Act, 1936 (No. 45 of 1936) ;

the expression " assurance company " and " assurance business " have the meanings assigned to them respectively by section 3 of the Act of 1936 ;

the expression " the Bank " means the Bank of Ireland ;

the expression " the Assurance Companies (Deposit of Securities) Rules " means the Assurance Companies (Deposit of Securities) Rules, 1910 and 1928, and the Assurance Companies (Deposits in respect of mechanically propelled vehicle insurance business) Rules, 1933 (Statutory Rules and Orders, No. 140 of 1933).

4.—(1) Where—

(a) an assurance company,

(i) is required to deposit a sum with the Accountantof the Courts of Justice in accordance with the provisions of section 22 of the Act of 1936, or

(ii) proposes, in accordance with the provisions of paragraph (a) of subsection (2) of section 24 of the Act of 1936, to deposit with the Accountant of the Courts of Justice a sum equal to the difference between the market value of investments representing a deposit deposited by such company and the full proper amount of a deposit which should be kept deposited by such company, or

(iii) proposes, in accordance with the provisions of subsection (4) of section 25 of the Act of 1936, to deposit with the Accountant of the Courts of Justice a sum equal to the amount of the deficiency of a deposit deposited by such company, or

(b) the Committee of Lloyd's—

(i) is required to deposit a sum with the Accountant of the Courts of Justice in accordance with the provisions of section 23 of the Act of 1936, or

(ii) proposes, in accordance with the provisions of subsection (4) of section 25 of the Act of 1936, to deposit with the Accountant of the Courts of Justice a sum equal to the amount of the deficiency of a deposit deposited by the Committee of Lloyd's,

the assurance company (or, in the case of an assurance company in process of formation, the subscribers or any of the subscribers of the Memorandum of Association) or the Committee of Lloyd's, as the case may be, (in these Rules referred to as the depositors) may, in the name of the assurance company or the Committee of Lloyd's, as the case may be, apply to the Minister for a warrant enabling and authorising the depositors to make such deposit as is mentioned in such application and sanctioned by such warrant.

(2) Whenever the Minister receives any such application as is mentioned in the next preceding paragraph of this Rule he may issue a warrant to the depositors and thereupon such warrant shall operate to authorise—

(a) the Accountant of the Courts of Justice to issue a privity to the Bank to receive money to the amount mentioned in the warrant, and

(b) the depositors named in such warrant to lodge money to the amount mentioned in the warrant with the said. privity in the Bank to the account of the Accountant of the Courts of Justice.

5. Every application to the Minister for a warrant and every warrant issued by the Minister in pursuance of such applicationshall specify the class or classes of assurance business in respect of which the deposit is being made and every such deposit shall be placed to the credit of " Exparte....................Special Credit in respect of....................," the names of the assurance company or the Committee of Lloyd's, as the case may be, and the particular class or classes of assurance business respectively being inserted in the blank spaces in the foregoing form of words.

6.—(1) In lieu, in whole or in part, of the deposit of money, the depositors may deposit an equivalent sum of either—

(a) any stocks, funds, or securities in which cash or money under the control or subject to the order of the High Court may for the time being be invested, or

(b) any nominal or inscribed stock issued by the council or corporation or any municipal borough within the State having a population exceeding fifty thousand according to the returns of the last census of population taken in such borough prior to the date on which such stock is deposited,

the value of such stocks, funds, or securities or of such nominal or inscribed stock being taken at a price as near as may be to the current market price but not exceeding the highest stock exchange quotation within seven days prior to the day on which such deposit is made.

(2) Whenever depositors, in lieu in whole or in part of a deposit of money, deposit such stocks, funds, or securities or such nominal or inscribed stock, the warrant issued by the Minister shall be varied by the Minister so as to enable and authorise the deposit in the Bank by the depositors named in the warrant of such stocks, funds or securities or such nominal or inscribed stock to the account of the Accountant of the Courts of Justice for the credit in the books of the said Accountant of " Exparte....................Special Credit in respect of.................... " the name of the assurance company or the Committee of Lloyd's, as the case may be, and the particular class or classes of assurance business respectively being inserted in the blank spaces in the foregoing form of words.

7. Where a deposit of money, or of any such stocks, funds, or securities, or any such nominal or inscribed stock mentioned in the next preceding Rule has been made under these Rules or under the Assurance Companies (Deposit of Securities) Rules, the High Court may on the application of the assurance company or the Committee of Lloyd's, as the case may be, which has made such deposit order—

(a) the investment of money so deposited in any such stocks, funds, or securities, or in any such nominal or inscribed stock as such company or the Committee desire and the High Court thinks fit, or

(b) the variation of any investment by sale of the whole or part of such stocks, funds, or securities or such nominal or inscribed stock representing the deposit and reinvestmentof the proceeds of such sale in either or both of the following, that is to say, in any other such stocks, funds, or securities or in any other such nominal or inscribed stock, or

(c) the transfer to the assurance company or the Committee of Lloyd's, as the case may be, of the whole or part of a deposit made by any such company or the Committee of Lloyd's upon the handing over to the Accountant of the Courts of Justice in exchange for such transfer of an equivalent amount of any such stocks, funds, or securities, or any such nominal or inscribed stock, or

(d) the payment to the assurance company or the Committee of Lloyd's, as the case may be, of the interest, dividends, or income from time to time accruing due on any such stocks, funds, or securities, or on any such nominal or inscribed stock in which the deposit is for the time being invested.

8. The issue by the Minister of a warrant under these Rules, or any error in or in relation to any such warrant shall not make or render the Minister or any person signing any such warrant on behalf of the Minister liable in any manner for or in respect of any deposit or any part of any deposit made under or in pursuance or on account of such warrant or the interest, dividends, or income or any part of the interest, dividends, or income on such deposit.

9. Where, at the commencement of Part II of the Act of 1936, a deposit is maintained pursuant to the Assurance Companies (Deposit of Securities) Rules by an assurance company with the Accountant of the Courts of Justice in respect of life assurance business within the meaning of section 1 of the Act of 1909, and such assurance company is required by subsection (1) of section 22 of the Act of 1936 to deposit and keep deposited 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, the said deposit maintained as aforesaid shall, for the purposes of Part II of the Act of 1936 be deemed to be a deposit made by such assurance company in respect of life assurance business as defined in section 3 of the Act of 1936.

10.—(1) Where an assurance company has, pursuant to the Assurance Companies (Deposit of Securities) Rules a deposit with the Accountant of the Courts of Justice in respect of any class of assurance business and such assurance company is not required by subsection (1) of section 22 of the Act of 1936 to maintain a deposit in respect of such class of assurance business, the High Court may, on the application of such assurance company, if it is satisfied that the liabilities of such assurance company within the State in respect of such class of assurance business have been met and discharged or otherwise adequately provided for, order the deposit to be paid or transferred out of Court and returned to such assurance company or make such other order as the Court shall direct.

(2) Notice of any application to the High Court under this Rule shall be given by the assurance company to the Minister.

11. Where, at the commencement of Part II of the Act of 1936, a deposit is maintained pursuant to the Assurance Companies (Deposit of Securities) Rules by an assurance company with the Accountant of the Courts of Justice either (a) to the credit of such assurance company but not to special credit in respect of a particular class of assurance business, or (b) in respect of employers' liability insurance business, and such assurance company is required by subsection (1) of section 22 of the Act of 1936 to deposit and keep deposited the sum of twenty thousand pounds in respect of any one or more of the following classes of assurance business, that is to say, employers' liability insurance business, fire insurance business, accident insurance business, bond investment business, public liability insurance business, engineering insurance business, guarantee insurance business, or burglary insurance business, the said deposit maintained as aforesaid shall for the purposes of Part II of the Act of 1936 be deemed to be a deposit made by such assurance company in respect of such one or more of the said classes of assurance business.

12. Where a deposit is maintained by an assurance company with the Accountant of the Courts of Justice pursuant to these Rules in respect of one or more of the following classes of assurance business, that is to say, fire insurance business, accident insurance business, bond investment business, employers' liability insurance business, public liability insurance business, engineering insurance business, burglary insurance business, or guarantee insurance business, and such assurance company is, at any time while such deposit is so maintained, authorised by the Minister pursuant to the Act of 1936 to transact any other one or more of the said classes of assurance business, the said deposit maintained as aforesaid shall be deemed to be a deposit also in respect of such other one or more classes of assurance business.

13. Every application made to the High Court under these Rules shall be made in such manner as shall from time to time be prescribed or determined by rules of court, and, until so prescribed or determined, in like manner as similar applications under the Assurance Companies (Deposit of Securities) Rules were made immediately prior to the making of these Rules.

14. These Rules shall, so far as may be, extend and apply to and authorise applications with regard to deposits made by assurance companies under the Assurance Companies (Deposit of Securities) Rules.

15. These Rules shall be in substitution for the Assurance Companies (Deposit of Securities) Rules.

GIVEN under the Official Seal of the Minister for Industry and Commerce, this 21st day of February, 1940.

R. C. FERGUSON, Secretary,

Department of Industry and Commerce.