H—B

REPORT BY THE GOVERNMENT INSURANCE COMMISSIONER In terms of Section 37 of the Government Life Insurance Act, 1908 FIFTH SCHEDULE Question 9. The average rate of interest at which the funds of the Department were invested at the close of each year during the period since the last investigation. Answer : The effective rates of interest credited to the funds of the Department for each year of the triennium were as follows : £ s. d. 1945 .. .. .. .. .. ..437 1946 .. .. .. .. .. ..400 1947 .. .. .. .. .. .. 3 18 8 Question 10. A table of minimum values, if any, allowed for the surrender of policies for the whole term of life, and for endowments and endowment assurances; or a statement of the method pursued in calculating such surrender values, with instances of its application to policies of different standing, and taken out at various interval ages, from the youngest to the eldest. Answer : The minimum surrender values at present ruling for whole-life and endowment assurance policies issued at the present rates of premium are given on page 14. In the case of simple endowments, with return of all premiums at death of nominee, the premiums are returned without interest, as surrender value. Other endowments and children's deferred assurances are treated specially. Question 11. A statement to be furnished of the manner in which policies on unhealthy lives are dealt with. Answer: When proposals are made on lives which, although not of such inferior quality as to merit total rejection, are considered not to reach the requisite standard for insurance at the ordinary rates of premium, such proposals are accepted either at an increased premium or subject to a contingent debt. The true age is taken as the basis of surrender calculations. H. L. Ryan, Government Insurance Commissioner.

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