"measures, Not men." AND GOLDFIELDS REPORTER AND ADVERTISER. WEDNESDAY, DECEMBER 10,1884. "measures, Not men."

Tuapeka Times, Volume XVII, Issue 1101, 10 December 1884, Page 2

"measures, Not men."

AND GOLDFIELDS REPORTER AND ADVERTISER. WEDNESDAY, DECEMBER 10, 1884.

One of the most important Acts of Parliament which, as the result of the legislation of last session, have been placed on the Statute-book is "The Government Insurance Association Act." This Act repeals the most part of "The Government Insurance and Annuities Act, 1874 ;" but the provisions of that measure, relating to the protection of policies and their assignment, are re-enacted in " The Life Assurance Policies Act, 1884," which also contains provisions for insurance by parents on the lives of their -children ; for the payment of moneys under a policy for benefit of minors, &c f ; for payments to be made without requiring probate or administration on certain conditions, and as to settlement policies under repealed Acts. "The Government Insurance Association Act" incorporates the policy-holders as an Association under the name of the " Government Cnsurance Association," with a Central Board of Directors for the management of its affairs. The Board is to consist of eleven persons: (1) The Colonial Treasurer, who will be ex officio Chairman, the Solicitor-General, the Auditor and Controller-General, the Secretary to the Treasury, and the Public Trustee ; (2) three. persons nominated by the Governor ; and (3) three persons to be elected by t/Be policy-holders, Of tbe nominated and elected Directors one goes out of office every year, but is eligible for re-election. Any person, whether a policy-holder or not, is eligible for the office of elector; and each holder of a policy, for any amount not less than^dSlOO, *hich Jaas been six months in existence; is entitled to one vote at any meeting' of the policy.holders.. In the election of a Director or Directors every holder of a policy is entitled to as many votes as there are candidates, but may not give more, than one vote to any of such candidates. The Central Board is authorised to establish Local Boards of Directors and appoint all officers in such places as to it shall seem expedient for the purpose of superintending and directing the local affairs of the Association. Every Local Board is fo consist of three local Directorsr-one appointed by the Central Board; who shall be Chairman, and two,, one of whom shall retire annually, shall be elected by the policy-holders residing' in the district. Local Boards are to. be invested with such powers as the Central Board may deem expedient, and such powers are only to be exercised in reference to the affairs of the Association in the place and within the area, to which their powers and instructions have been extended, Thb remuneration of all Directors is fixed at £100 a-year, with: -out entailing any disqualification. for the general Assembly. . The CentraLßoard when constituted (and the Act pomes into operation on January Ist, 1885) will have very much the same powers as the present <Cpramissipner,save that in appointing and removing officers it will be free from Ministerial interference* and it will notbe suMefc|,to pre-atidit of its accounts, althou^b?S ? *stringeni; audit ia' provided for. ' l !FtiU' control of the bank account, of the. is given to the,' Board { buit .penal .clauses .are provided to prevent careless' oj? improper dealing, with the funds.. The officers andservants of the Board are declared not to' be for any purposes under the Oitil Sertdfle Acts, and will therefore have no nghts.tq.Gompenesations or ' pensions. 1 Express power of inspection of the Board's books and' papers is given to the Colonial Treasurer, and a number of alterations in the forms of '< accounts and reports to be laid before

Parliament are made in the direction of affording more information. There is also some alteration as to .tlif^l^tribution of surplus profits. Tfe"Governor in-Council is to cause an investiga- 5 tion to be made at the end or every quinquennial period by an actuajjfj,and may then, on the report of such srcfcuary, order the distribution of surplus profits,' but no such Order-in -Council is to have any force or effect unless gazetted, nor until it has been submitted to both Houses ot-the^GeaewdrAtisembly; - Ooi" of the net surplus of profits found to be available for distribution at each quinquennia^ investigation^ in respect, of,, contracts "entered into "af £er the passing of the Act, the Board is, in the first instance, required to set apart as a reserve by way of guarantee a sum of not less than one- tenth of such net surplus, which sum is to be paid into the Public Account to a separate account, to be called the Insurance Guarantee Fund Account j but all contributions from surplus profits to the fund are to cease SO soon as accumulations have reached tbe amount of £1,000,000. All policies are declared to be guaranteed by the Act ; and, in case of a deficiency arising at any time in the funds of the Association, such deficiency is to be made up from the Guarantee Fund, and if that be not sufficient the balance is to be advanced out of the Consolidated Fund, and any sum so advanced is to be repaid out of any general net surplus of profits arising in respect of all contracts and found from time to time to be available for distribut : on at any subsequent investigation thereafter. It will be the duty of the Colonial Treasurer to certify every such deficiency to both Houses of the General Assembly at the earliest possible opportunity. A s regards the investment of the Board's funds, any part of the moneys standing to the credit of the Government Insurance Account may be invested in Government securities of New Zealand or of the United Kingdom or of any of the Australian Colonies or "in any County, Road Board, Town Board, or Borough securities in

New Zealand issued under authority of Parliament and which are secured by a special rate on property." Any part of the moneys may also be invested on first mortgage of freehold land with or without buildings, but so tbat no moneys shall be so advanced which shall exceed three-fifths of the value of the property to be mortgaged as determined by a valuator to be appointed by the Board.