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A D. 1927.

Establishment and maintenance of statutory funds.

(3) In the event of the winding up of any company, society or association incorporated or constituted outside Great Britain which has made any deposit under this Act, the Court may, notwithstanding anything in this Act, order the sum kept deposited or any part 5 thereof to be transferred by the Accountant-General to any liquidator outside Great Britain on such terms and conditions, if any, as the Court may direct; and application for an order under this subsection may be made to the Court by or on behalf of the liquidator 10 or by or on behalf of any person who satisfies the Court that he represents a majority of the policy owners resident within Great Britain, or of any class of such policy owners.

In this subsection the expression "winding up up" 15 includes any method of dissolution or proceedings analogous to the winding up of a company under the Companies Acts, 1908 to 1917, and the expression "liquidator" includes any person occupying the position of a liquidator.

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Statutory Funds.

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3.-(1) Every insurer who at the date of the commencement of this Act is carrying on life business, annuity business, continuous disability business, or, subject as hereinafter provided, capital redemption 25 business may establish and maintain a statutory fund under the name of the "Life Statutory Fund," the Annuity Statutory Fund," the "Disability Statutory Fund," or the "Capital Redemption Statutory Fund," as the case may be, in respect of any such class of business: 30 Provided that where the Board are satisfied that the establishment and maintenance of a capital redemption statutory fund is reasonably necessary in the interests of policy owners of any class, the Board may by order direct an insurer carrying on capital redemption business 35 at the commencement of this Act to establish and maintain a capital redemption statutory fund, and in that case it shall be obligatory on him to do so.

(2) Every insurer shall establish and maintain in respect of all life business, annuity business, continuous 40 disability business and capital redemption business carried on by him in respect of which no statutory fund is established under the foregoing provisions of this section, a statutory fund under the name of the " Amalgamated Statutory Fund.”

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(3) Every insurer shall establish and maintain in A.D. 1927. respect of all employers' liability business carried on by him a statutory fund under the name of the " Employers' Liability Statutory Fund."

(4) Every insurer shall establish and maintain in respect of all industrial assurance business carried on by him a statutory fund under the name of the " Industrial Assurance Statutory Fund."

(5) The Board may on the application of an insurer 10 permit the substitution of any name approved by the Board for the name required by this section to be given to any statutory fund established or maintained by him, and where in accordance with such permission a name is so substituted references in this Act to any such 15 fund by the name required by this section to be given

thereto shall be construed to include references to the
fund by the name substituted.

ment of

4. (1) All receipts in respect of any class of Formation, insurance business in respect of which a statutory fund application 20 is required by this Act to be established and maintained and investby an insurer shall be carried to that fund, and (subject statutory to the payment and application of such sums as, having funds. regard to the contracts entered into by the insurer, to the rights of policy owners, and, in the case of an 25 insurance company, to the instruments governing the constitution of the company, are properly payable or applicable as dividends, bonus, or otherwise as profits), the assets of the fund shall not, so long as the insurer continues to carry on business of that class, be available 30 to meet any liabilities of the insurer other than those referable to the class of business in respect of which the fund was established, and shall not be directly or indirectly applied or charged for any purposes other than those of that class of business. Any charge in contraven35 tion of the provisions of this subsection shall be void.

(2) Subject as hereinafter in this subsection provided and to the provisions of this Act relating to the investment of deposits, the assets of every statutory fund maintained by an insurer may be invested (subject to the 40 provisions of any memorandum or articles of association, deed of settlement or other instrument imposing restrictions upon the manner in which the assets of the insurer may be invested), in such investments as the insurer thinks fit, so, however, that the assets of every statutory

A.D. 1927. fund shall be distinct and separate from any other assets of the insurer :

Transitory provisions

to statutory funds.

Provided that, save as in this Act otherwise expressly provided, the assets of any statutory fund shall not, without the sanction of the Court, be invested 5 directly or indirectly in any share or interest in any insurance business whether carried on within Great Britain or elsewhere or by an insurer as defined by this Act or otherwise.

(3) The income arising from the investments repre- 10 senting the assets of any statutory fund shall be carried to that fund :

Provided that this subsection shall not apply to an employers' liability statutory fund.

(4) Every insurer, and, in the case of an insurance 15 company, every director of the company, shall be under the same liability in the event of a contravention of the provisions of this section as respects any statutory fund as if he had been a trustee for the execution of the provisions of this section as respects that fund, and as 20 if the policy owners of the class in question had been beneficiaries of such a trust.

5.-(1) Every insurer who at the date of the commencement of this Act is carrying on any class of with respect business in respect of which a statutory fund is required 25 by this Act to be established and maintained shall as at that date allocate to every statutory fund established by him assets at least equivalent to the aggregate amount of the sums which immediately before that date were standing to the credit of any corresponding separate 30 assurance fund formed in accordance with the requirements of the Act of 1909 or the Act of 1923, together with such further assets as may be necessary to provide for any liabilities referable to the class of business in respect of which the fund was maintained which were then out- 35 standing but not paid; and every such insurer shall, within nine months after the commencement of this Act, deposit with the Board a statement, prepared and certified in the prescribed manner, with respect to every statutory fund established by him showing that the provisions of 40 this subsection have been complied with and specifying the assets allocated to the statutory fund, and shall, if directed by the Board to do so, supply the Board with such information as may be required by them for the purpose of carrying out their duties under this section. 45

(2) The restrictions imposed by this Act upon the A.D. 1927. investment of the assets of any statutory fund in any share or interest in any insurance business shall not affect the allocation under this section to a statutory fund of any 5 assets which are so invested at the commencement of this Act or require the re-investment of any assets so allocated.

(3) If it appears to the Board that any statement submitted to them by an insurer in accordance with the 10 requirements of this section is in any particular incomplete, inaccurate, or misleading, or that insufficient assets are thereby shown as being allocated to any statutory fund, the Board may, after considering such explanations as may be made by or on behalf of the insurer, give such 15 directions as they think necessary for the variation of the statement and for the allocation to the statutory fund of further assets, and, subject as hereinafter provided the insurer shall comply with any directions so given :

Provided that an insurer aggrieved by any 20 directions given by the Board under this subsection may appeal to the Court, and the decision of the High Court shall be final and conclusive.

(4) The assets shown by any statement deposited with the Board under this section, or, where directions 25 are given by the Board or on appeal by the Court for the variation thereof, by any such statement as so varied, as being allocated to any statutory fund, shall form part of the assets of the statutory fund, and shall be deemed to have formed part thereof as from the commencement 30 of this Act.

(5) For the purposes of this section separate assurance funds formed in accordance with the requirements of the Act of 1909 or the Act of 1923 shall be deemed respectively to correspond with the statutory funds 35 established and maintained in accordance with the requirements of this Act in manner following, that is to say

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(a) a separate fund formed in respect of life assur-
ance business shall be deemed to correspond
with the Amalgamated Statutory Fund, or,
where a Life Statutory Fund, Annuity Statutory
Fund, or either of them, is maintained, shall be
deemed to correspond with such one, or propor-
tionately with such two or more, of the said

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A.D. 1927.

Provisions

as to deposits

where statutory funds

required to be kept.

statutory funds as the Board may, on the
application of the insurer, direct; and

(b) a separate fund formed in respect of bond in-
vestment business shall be deemed to correspond
with the Capital Redemption Statutory Fund, 5
or, where no such statutory fund is maintained,
with the Amalgamated Statutory Fund; and
(c) a separate fund formed in respect of employers'
liability insurance business shall be deemed to
correspond with the Employers' Liability Statu- 10
tory Fund; and

(d) a separate fund formed in respect of industrial
assurance business shall be deemed to corre-
spond with the Industrial Assurance Statutory
Fund.

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6. No part of any sum kept deposited by an insurer in accordance with the requirements of this Act in respect of any class of business in respect of which a statutory fund is required by this Act to be established and maintained shall, while any liabilities 20 incurred by the insurer in respect of that class of business remain unsatisfied or not otherwise provided for, be available to meet any other liabilities incurred by him, and an insurer may, if he thinks fit, treat any such sum as being part of the assets of the statutory 25 fund.

Audit of accounts.

Balance sheets,

accounts, abstracts, and statements required to be prepared.

Accounts and Periodical Returns.

7. The accounts of every insurance undertaking shall, unless they are subject to audit in accordance with the provisions of the Companies Acts, 1908 to 1917, or 30 the Companies Clauses Acts, 1845 to 1889, relating to audit, be audited annually in such manner as may be prescribed.

8.-(1) Every insurer shall as at the thirty-first day of December in every year prepare—

(a) in accordance with the regulations contained in Part I. of the Second Schedule to this Act, a balance sheet in the form set forth in Part II. of that Schedule; and

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