INSURANCE COMMISSION.

Auckland Star, Volume LV, Issue 75, 28 March 1924, Page 3

INSURANCE COMMISSION.

CANVASSER SUED FOR REFUND.

A life insurance canvasser was defendant in a Supreme Court action begun yesterday, in which the Colonial Mutual Life Assurance Co. (Mr. Northcroft) sought to recover from Samuel Fever (Mr. Lcary) the sum of £141 7/7. claimed as a refund of commissions paid by plaintiff company on certain policies' secured by the defendant on account of the policies having lapeed within a certain period. The defence was that Fever had been engaged on special terms, which did not hold him liable for such lapses. Sir. Northcroft stated that the agent was entitled to £1 commission for each insurance paying a weekly premium of 1/, but if the weekly payments did not 'continue for 13 weeks, the canvasser had to refund the commission, but after that period, if the premiums were paid, he was entitled to a further 4/. Dctendant had written a good deal of business for the company. Latterly, however, the number of policies had greatly increased and the weekly payments* to defendant were reduced until the debit was worked oft". The result was that Fever resigned. Defendant had been paid on a higher basis than that specified in the contract, admitted counsel. Mr. Leary stated that the special agreement of defendant with the company provided that he should receive £1 a week retainer and £1 for every policy he wrote of 1/ a week. But he was to draw only on two-thirds of the policies he wrote, and would not •be liable to refund on lapses. Thus, if he wrote fifteen policies, he would receive only £10, instead of £15, but he was not to be liable for lapses at allhe was purely the business-getter, the bringer-in of new business, and the company took the gamble in lapses. The case is proceeding.