PROPOSED DIVISION OF GOVERNMENT INSURANCE PROFITS.

Evening Post, Volume XXII, Issue 61, 10 September 1881, Page 2

PROPOSED DIVISION OF GOVERNMENT INSURANCE PROFITS.

The Hon. Major Atkinson has given notice of motion for the sanction of Parliament of the division of profits in the Government Insurance Department recommended by the Government Actuary, Mr. Godfrey Knight, and approved by the two eminent London actuaries to whom the question was referred. The resolution of which Major Atkinson has given notice is as follows :—": — " That whereas the actuaries appointed in accordance with the forty-filth section of ' Ihe Government Insurance and Annuities Act, 1874,' in their report on the net surplus of profits under the aaid Act and the repealed Acts, have recommended that ' a Bum not exceeding £60,000 ' be divided amongst holders of policies under the said Acts : And whereas it is provided by law that the sum so recommended for division in such report, or such less sum as shall be fixed by resolution of both Houses of the General Assembly aB the amount for division, shall be divided amongst holders of policies under the said Acts, in such manner and according to such scheme as shall be approved by such resolution : This House resolves! — That the sum of £50,000 shall be divided by way of reversionary bonus amongst the holders of policies under the said Acts, in accordance with the following scheme: — Participation in the snrplus shall be confined to holders of whole life and endowment assurance policies issued under Tables 1., 11., and HE., which were in force on 30th June, 18S0, and upon which two years' premiums had then been paid. The surplus shall be divided in proportion to the loading contributed by each policy-holder, subject to a deduction of a year and a half's loading. In the case of policies under Table 11., only the equalised loading is to be taken into account. The share of each policy-holder, thus determined, shall bo converted by the Hm (5) 4 per cent, single premiums into a reversionary bonus to be added to tho bum assured, which bonus may be exchanged at any time for one of the following benefits : — A temporary reduction of future premiums ; a permanent reduction of future premiums, such exchanges to be calculated by Hm 4 per cent. Tables. Reversionary bonuses may be surrendered for cash, the surrender value to be calculated by Hm 5 per cent. Tables."