A.D. 1923. and the several Channel Islands shall be deemed to be counties.

Short title,

45.-(1) This Act may be cited as the Industrial extent, com- Assurance Act, 1923.

mencement,

and repeal.

(2) This Act shall extend to Great Britain, the Isle 5 of Man, and the Channel Islands.

(3) This Act, except as otherwise expressly provided, shall come into operation on the first day of January, nineteen hundred and twenty-four.

(4) The enactments mentioned in the Fifth Schedule 10 to this Act are, except so far as they relate to Ireland, hereby repealed to the extent specified in the third column of that schedule.

SCHEDULES.

FIRST SCHEDULE.

SECTIONS OF ACT TO BE CONTAINED IN THE RULES
OF COLLECTING SOCIETIES.

A.D. 1923.

A.D. 1923.

SECOND SCHEDULE.

ADDITIONAL PARTICULARS AS TO VALUATIONS.

1. An analysis as near as may be of the premium income of each of the five years preceding the valuation date into income arising from

(a) policies which were not of more than one year's duration at the date such income arose; and

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

5

Note: This analysis to be given separately for 10 policies with weekly premiums and for policies with premiums 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 15 referred to under Heading No. 7 in the Fourth Schedule (A) to the Assurance Companies Act, 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 20 to question 5 of the Fourth Schedule (A) to the Assurance Companies Act, 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 Commissioner 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 of such durations as the Commissioner may select.

25

30

5. A statement of the actual number of deaths at ages over ten years in the five years preceding the valuation date 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 35 mortality employed for the purpose of the valuation, to be given separately for decennial groups of ages.

THIRD SCHEDULE.

PROVISIONS OF ACT TO BE SET OUT IN POLICIES.

20

FOURTH SCHEDULE.

RULES FOR VALUING POLICIES.

1. The value of the policy is to be the difference between the present value of the reversion in the sum assured according to the contingency upon which it is payable, including any bonus added thereto, and the present value of the future net 25 premiums.

2. The net premium is to be such premium as according to the assumed rate of interest and rate of mortality and the age of the person whose life is assured at his birthday next following the date of the policy is sufficient to provide for the 30 risk incurred by the company or society in issuing the policy, exclusive of any addition thereto for office expenses and other charges:

35

Provided that

(a) In the case of a policy other than a policy for the whole
term of life issued before the person whose life is
assured attained the age of ten years, the date of the
policy may be assumed to be one year after the actual

A.D, 1923.

A.D. 1923,

date, and if it is so assumed, the term of the policy may be assumed to be one year less than the actual term:

(b) In the case of a policy for the whole term of life issued before the person whose life is assured attained the 5 age of ten 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 the policy next preceding the date on which the age of eleven years was attained:

10

(c) In the case of a substituted policy, the net premium shall
be calculated with reference to such sum as, according
to the practice of the society or company for the time
being, would have been assured by the premiums
payable if the person upon whose life the substituted 15
policy is issued had not been assured with the society
or company before the issue of that policy.

RULE FOR ASCERTAINING THE AMOUNT OF A FREE
PAID-UP POLICY.

The amount of a free paid-up policy is to be a sum bearing 20
the same proportion to seventy-five per cent. of the value of
the policy as the sum of one pound bears to the value of
the reversion in the sum of one pound according to the contin-
gency upon which the sum assured under the original policy
was payable.

GENERAL RULES APPLICABLE BOTH FOR VALUING
POLICIES AND FOR ASCERTAINING THE AMOUNT OF A
FREE PAID-UP POLICY.

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

25

30 2. The rate of mortality is to be assumed according to the table contained in the Sixth column of Table G. in the Supplement to the Sixty-fifth Annual Report of the Registrar-General.

3. The age of the person whose life is assured shall be obtained by adding to the age attained by him at his birthday 35 next after the date of the issue of the policy, the duration of the policy in completed years at the date as at which the value of the policy is required to be ascertained.

4. In the case of a policy issued for a term other than the whole term of life the remaining term at the date at which the 40 value of the policy is required to be ascertained shall be obtained by deducting from the original term of the policy the duration of the policy in completed years at that date.