The Sun.
London, England, 1853-10-20 00:00:00

r PRICE SD.

year, with some suspicion and doubt as to the ultimate
advantage of doing so, or of incurring the serious loss
which, under the most favourable circumstances, must
attend the abandonment or sale of a policy. On these
considerations, as a special case, it has been contended
by different witnesses of great experience, that inter-
ference on the part of the Government is not only jus-
tifiable, but a matter of high duty, for the protection
and information of the public.
9. On the other hand, it has been contended, with
equal ability, that insurance business forms no exception
to ordinary trade in these respects ; that the acts which
have already been passed with a view of controlling the
operations of insurance societies have been rather hurt-
ful than beneficial for the very objects they bad in view ;
that an apparent compliance with the provisions of an
Act of Parliament and a certificate of complete registra-
tion, while they have proved entirely ineffectual for
their professed objects, and no rtal security for the
public, have afforded facilities, under the sanction of
Parliamentary authority, embodied in regulations ad-
ministered by a public department, for the formation of
companies and the perpetration of frauds which could
not otherwise have been accomplished. And it bas been
further contended that it is impossible to make such re-
gulations, consistent with the free development of pri-
vate enterprise, which, so far as the public is concerned,
will not prove more prejudicial by lulling private
prudence and vigilance, than beneficial in respect to any
increased security which they can confer.
10. Much difference of opinion has been expressed by
the different witnesses favourable to the former of the
two principles alluded to, as to the extent to which
Government interference should take place. Some have
contended not only for an enactment which should more
strictly regulate the circumstances under which insurance
companies can be formed, but also for the appointment
of government actuaries, under a department of the state
who should have a direct supervision of the proceedings
of all insurance companies ; while the generality of wit-
nesses favourable to some regulations have confined
themselves to much narrower limits, and have contended
eonlyw companies,f o r such precautions
and as should as
should
fromtime
n
a fair amount of information with respect to the condi-
tion of such companies, relying upon the good faith of
test
o
directors and actuaries for the accuracy of the informa.
the h
t e bone
time
afford
of
tion furnished.

11. In venturing to express the views which your
committee have been led to entertain as to the course
which Parliament should pursue in future in regard to
the subject of life assurances, they will divide their re-
marks into five heads—

1. As to the mode in which it is desirable to deal with
the present Joint LStock Companies' Act, so far as re-
lates to insurance companies.

2. As to the registrar's office, duties, and powers.

3. As to the registration of existing offices.
4. As to precautions which it seems desirable to take
in order to test the bona fides of new associations, and
entitle them to complete registration.
5. As to the securities which can be afforded to the
public by the publication of periodical accounts.
12. Your committee will now proceed to remark on
each of these points separately.
1. Your committee are of opinion that the business
of assurance companies differs so much from ordinary
business, that it will be advisable to repeal all the pro-
visions of the Joint Stock Companies' Act so far as they
relate to assurance societies, and to deal with them in a
separate act.

2. Your committee have already adverted to the in-
sufficient power which the existing act confers upon the
Registrar of Joint Stock Companies to give effect to
the provisions of the law. Your committee are of
opinion that whatever duties may be entrusted to that
officer under any act to be passed, it is essential that
adequate powers should be provided to enable him,
either by himself, or through one of the departments of
the state, to enforce any regulations that Parliament
may think it wise to enact. Experience has proved that
without such powers, regulations become a dead letter,
and are only calculated to mislead by the apparent sanc-
tion which they give to proceedings not in reality con-
trolled by them.

3. Your committee, in a former part of this report,
have alluded to the inconvenience which has arisen
from the fact that a portion of the existing assurance
offices are completely registered under the Act of 1844,
and a portion not so registered. The effect of this dis-
tinction has been to lead to controversies between the
"old offices " (established prior to 1844), and the "new
offices " established since the passing of the act of that
year) ; which have been prejudicial to the interests of
the public. Your committee are therefore of opinion
that it would be highly advantageous to all parties if all
companies, both those existing and those that may in
future be formed, could be placed under one general
system of registration. In accomplishing this your com-
mittee would recommend that the requirements for re-
gistration as regards existing companies, should be as
simple as possible, but that whatever periodical returns
may be deemed necessary, should be the same as regards
all companies whatever.
With regard to mutual assurance companies, where the
claims of the assured are confined to the funds of the society,
and where no personal liability attaches, your commit-
tee are of opinion that the requirement of the law that
the members of such societies should be registered, is of
no real utility to the public or the assured, while it is
both expensive and troublesome ; and that all the ob-
jects of the law would be answered by a registration of
the directors and other officers of such societies.
4. Your committee feel that perhaps the most impor-
tant part of their inquiry is that which refers to the
one hand, your committee feel that the ground
precautionsregardto wthehieh should
forreatioh of new
hereafter
woaofmtepr adopted with
enies.oothe
hitherto occupied by these useful institutions has
been comparatively limited, and that their applica-
tion is capable of a great extension, not only in the
higher and middle classes of society, but also among
the humbler classes, to whom it has recently been very I
considerably applied ; and that it is therefore very im-
portant that no check or impediment should be
sipndlaetchieandt:
in the way of the further extension of this enterprise,
s
not abspoulubtlieclyitneiseddfeuslirfoarbltehteoseincuterrpityosoef
stulicehpuebbleil
On
the other hand, the committee are of opinion that in the
of
fitletl
the
eisvt
eoaf
reasonablet h e
guarantee themselves,
as
t atsh we ebloinaa:
o
tentions of the promoters of such companies. To this
extent only the committee are of opinion that any inter-
ference at this stage is desirable. With this view, in
addition to such regulations as may be considered need-
ful for the purposes of registration, the committee are of
opinion that no new company should be admitted to
complete registration until a capital shall have been sub-
cribed, and actually paid up, of at least 10,000/., and
which shall be invested in the public funds, under such
regulations as parliament may deem fit to enact ; to be
considered in the double light of a test of bona fide in-
tentions on the part of the promoters, and of a security
for the liabilities of the company at its early stage of
existence.

5. No part of the subject submitted to your commit-
tee has received more attention than that of the publica-
tion of periodical accounts. Hitherto those accounts,
as published, have been of a most unsatisfactory charac-
ter. Your committee have carefully considered whether
1 it would be practicable to prescribe such a form of ac-
count as would accomplish the objects of the Legisla•
ture ; but after the most careful consideration, they
led to the conclusion that no fixed form could hes
applicable to all cases, which would not be Poed madet
much evasion, or which would practically afford any
x
real security. e
Your committee, therefore, would recommend
shall be imperative upon each company to mackee aincofimve-
artleliistn shallefcosl andmv showaaltui
theor
same ;
f
0(aI..1,
and use of their plete investigation into its affairs
deeds of settle-
ment, on
years, as is usually proscribed by their
ment, and at such timesosioeiPrr:misscakarnsdidbeaertdfiho'd
liabilities,
whichaha bl iui
a complete valuation
their assets to meet
tion accounts, which may
be
proprietors, shareholders, or members
shall be hat
registered in the office of the registrar '
in each ; and t
intermediate year between such periodical balance
sheets or valuations, there shall also be registered a state-
ment authenticated infor •')
ment co information on the follow-
ing particulars :
The
on policiaesmo. unt of receipts during the year for premiums

The amount of expenses during the year.
The number and amount of new policies issued.
The total number and amount of liabilities on all cur-
rent policies.
The total amount of premiums receivable on the same.
The whole amount of capital, distinguishing the man.
ncr in which invested.
HOW much in cash.