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Life Ins.-Prior to 1847 but little L. ins. bus. had been transacted in Canada. The National Loan Fund of England was almost the only Co. in the field. In 1847 the Canada L. was founded at Hamilton. In the same year the Colonial of Edin. founded a branch in Canada. For several years the two last-named offices transacted nearly all the bus. of this class in the province; but the total was very small. Mr. Geo. Sheppard, Act. of Canada L., pub., in 1855, Canada, Life Assu. in. He spoke of the future rather than the past. Year by year new competitors entered the field, chiefly Brit. offices; and by means of continuous competition, they in the end made the advantages of L. ins. understood. About 1866, several of the American offices commenced operations in the province; and they infused into the bus. an amount of enterprise which it had never before experienced. In this year (1866) was passed the law requiring deposits and annual returns. At the end of 1867 an estimate was made from the returns of the offices of the amount of L. ins. in force. It was found to be about $20,000,000; yielding in ann. prems. $700,000. Of this bus. the Canada L. held about $4,500,000; the Standard (including Colonial) about $4,000,000; the Etna (U.S.) about $1,500,000; the remainder was divided amongst the other Brit. and American offices.
The following summary of Life bus. is from the latest returns—1871. The nationality of some of the offices will be made clear by reference to a table at the end of this art.
These figures show that the sums ins, have increased from $20,000,000 in 1867 to $43,361,397 in 1871; and the yearly prems. from $700,000, to $1,500,453. In 1868, the total amount of the pol. which became claims by death was $150,000. In 1870 it amounted to over 400,000 dollars.
It does not appear to be considered that the field for L. bus. in Canada is yet exhausted. During 1871 three new cos. were set on foot, viz. the Sun, Montreal; the Confederation, Toronto; the Mutual, Toronto. The first of these offices pub. its report for seven months, closing with the year, and showing a very satisfactory bus.
The Citizens' Assu. Co. of Montreal has been for some years in existence transacting L., F., fid. guarantee, and accident bus. It would be satisfactory to see its progress in the two last-named departments, but it does not pub. any returns. The Waterloo Mut. L. of Montreal, which has been several years in existence, is not included in the returns here given. During the present year there has been founded the Life Association of Canada, under progressive management.
Inland Marine Ins.-This branch of bus., which applies to ins. of goods on canals, rivers, and lakes, with which the province abounds, is carried on to a large extent. Five cos. are licensed to transact it; but it is said that some American cos. carry it on without licence. If any portion of the voyage is in salt water-as say from Halifax to Chicagoit is held to be ocean or ordinary marine ins. The goods must not be transhipped en route, or the nature of the risk changed.
Marine Ins.-We have no details concerning marine ins. cos. in Canada, or the extent of their bus. Such cos. require no licence here, and make no returns.
Vital Statistics. Regarding the vital statistics of Canada, there is not much to be said. It is a new country, or more correctly a country in which the changes in the pop. are very rapid, by means of immigration and other causes; yet the subject is engaging some attention. Dr. Carpenter has pub. three Essays on the V. Sta. of Montreal, the first as far back as 1859; the latter as recently as 1867 and 1869. The statements are for the most part too sweeping to inspire entire confidence. We hope the Year-Book of Canada will become the medium for accumulated and accurate details. A careful study of such materials as have fallen into our hands leads us to believe that human life ought to be of longer average duration in Canada than in Europe. To attain to this there is one evil to overcome, and that is excessive drinking.
In a few years we may obtain from Canada that best of all tests for L. ins-the experience of the mort. of insured life. So far as we can apply that test now, the results appear favourable. The Canada L. has been in operation about 25 years. Its bus. has been confined exclusively to lives resident in Canada. Its claims by death have been considerably under the mort. indicated by the CARLISLE T., on which its operations are based. But then it has the full benefit of local knowledge in its selection of lives. We observe that this Co., at its last quinquennial investigation (1870), declared a rev. bonus of 21 p. c. p.a. The high rate of int. at which investments may be made in the province will have aided in this result; but sound and economic management, including careful selection, will have done as much or more.
Legislation.-Several special laws have been enacted affecting ins. asso. On the 19th May, 1860, a law was passed for regulating ins. offices not incorp. by any statute of the province; requiring that the ann. statements of such cos. should be made to the Minister of Finance in the month of January, for the year ending on the preceding 1st July. As this Act is now superseded, we need not dwell upon its provisions.
On the 18th Sept., 1865, the following wise and beneficent measure became law-29 Vict. c. 17:
Whereas it is expedient to permit persons to ins. their lives for the benefit of their wives and children. Therefore, Her Majesty, by and with the advice and consent of the Legislative Council and Assembly of Canada, enacts as follows: 1. It shall be lawful for any person to ins. his life for the whole term thereof, or for any definite period, for the benefit of his wife and children, or of his wife and some or one of them, and to apportion the amount of the ins. money as he may deem proper, where the ins. is effected for the benefit of more than one. 2. The said ins. may be effected either in the name of the person whose life is insured, or in the name of his wife, or of any other person (with the consent of such other person) as trustee; and the prem. on any pol. of ins. hereafter effected under this Act shall be payable during the whole of the said person's life, or during any lesser period, by ann., half-yearly, quarterly, or monthly payments. 3. It shall be lawful, within one year after the passing of this Act, for any person, by writing indorsed upon or attached to any pol. of ins. on his life which may have been effected and issued before the passing of this Act, to declare that such pol. and ins. shall be for the benefit of his wife, or for his wife and children, or of his wife or some or one of his children, or of his children only, or some or one of them, and to apportion the amount of the ins. money as he may deem proper, when the ins. is declared to be for the benefit of more than one. 4. When no apportionment is made in any pol. or declaration as aforesaid, all parties interested in the said ins. shall be held to share equally in the same, and when it is stated in such pol. or declaration that the ins. is for the benefit of the wife and children generally, without specifying their names, then the word 'children' shall be held to mean all the children of the person whose life is insured, living at the time of his death, whether by any other marriage or not. 5. Upon the death of a person whose life is insured, the ins. money due upon the pol. shall be payable according to the terms of the pol., or the declaration aforesaid, as the case may be, free from the claims of any creditor or creditors whomsoever. 6. Nothing contained in this Act shall be held or construed to restrict or interfere with the right of any person to effect or assign a pol. for the benefit of his wife or children as at present allowed by law, nor shall it affect any assignment of any existing pol. made before the passing of this Act, nor any action or proceeding pending at the time of the passing of this Act in any court of law or equity.
This Act was amended in 1869, to the following effect :-Ins. moneys due to minors may be paid to executors of the insured. If insured die intestate without nomination, money may be paid to guardian of minor. Guardians may invest such moneys. Policy may be surrendered for paid-up pol. Or the pol. may be borrowed upon. In case of death of any one of several nominees, survivors to take share. Profits may be applied to reduce prems. or increase ins. [see 1872]. [NOMINATION POLICIES.]
On the 1st August, 1868, there came into operation, "An Act respecting Ins. Cos."31 Vict. c. 48 [Canadian Parl.], which contained the following provisions: Sec. 2, no co. transacting other than ocean marine ins. business
To issue any pol. of ins., or take any risk, or receive any prem., or transact any bus. of ins. in Canada, or prosecute or maintain any suit, action, or proceeding, either at law or in equity, or to file any claim in insolvency, without first obtaining a licence from the Minister of Finance to carry on business in Canada; but the prems. to become due on pol. actually issued previous to this date may continue to be received, and the losses arising thereon may be paid as if this Act had not been passed.
3. The Minister of Finance to grant licence as soon as required deposits are made.
4. The deposit to be so made as aforesaid shall be as follows, to wit: by every L., F., inland marine, guarantee, or accident ins, co., a sum of not less than 50,000 dollars, and such sum shall be deposited before the licence is issued, except only in the case of cos. incorp. before the passing of this Act, by Act of the Parl. of Canada, or of the legislature of any of the late provinces of Canada, Lower Canada or Upper Canada, or of Nova Scotia or New Brunswick, or which may have been or may hereafter be incorp. by the Parl. of Canada or by the legislature of any province of the Dominion, and carrying on the bus. of L. or F. ins., or of inland marine ins., or both the latter, but no other, which
cos. may make such deposit in three equal ann. instalments, the first of which shall be paid before the issue of the licence, on or before the first day of August, 1869.
5. When any co. carries on more than one description of ins. bus., it shall make a separate deposit as aforesaid, for each branch of its bus.: Provided that a co. combining L. and accident ins. or F. and inland marine ins. shall only be required to make one deposit for each such combination of two branches of bus., and with respect to any ins. bus. other than those hereinbefore specified, the Minister of Finance may prescribe the amount of deposit which shall be required.
6. Except only as regards cos. entitled to make their deposits by instalments as aforesaid, whenever and so long as the deposit of any co., under this Act, shall be less than 100,000 dollars, the agent of such co. shall send in yearly to the Minister of Finance, within one month after the first day of January of each year, returns under oath, of the amount of prems. received by the co. on risks in Canada, and after deducting 25 p.c. therefrom, and the net amount of losses or claims actually paid, shall deposit in the hands of the Receiver-General for the purposes of this Act, and subject to its provisions, the balance of such prems., until the deposit of such co. shall be equal to 100,000 dollars; and so long as such deposit is under 100,000 dollars, no int. or div. shall be paid on the actual deposit, but such int. or div. shall be added to the principal every half year until, with the prems. hereinbefore mentioned, the deposit shall amount to 100,000 dollars: Provided, that any co. combining the bus. of F. and L. ins. shall be required to make such additional deposit only as regards the prems. received for L. ins.: and provided also that any L. ins, co. incorp. in Canada since the Union which shall deposit all the balance of the prems. received by it, after the deductions above provided for, until such deposit amounts to 100,000 dollars, and that any F. ins. co, so incorp., which shall deposit all its receipts from payments on its shares, and the balance of prems. as aforesaid, shall not be subject to any provision of this Act requiring any other deposit.
7. It shall be the duty of the Receiver-General forthwith to invest the amount of any such deposit made in cash, in Canada Dominion Stock, in trust for the co. making such deposit, for the purposes of this Act; and except as hereinafter provided, in case of the insolvency of the co., such stock or the amount of such deposit, shall not be lessened, disposed of or surrendered to the co. without the order of the Governor in Council.
8. Except in the cases with respect to which it is otherwise provided, so long as the amount of the deposit which any co. is required to have then made is unimpaired, and no notice of any judgment or order to the contrary is served upon the Minister of Finance and the Receiver-General, the int. upon the stock or securities representing or forming part of such deposit shall be payable to the co.
9. Every co. obtaining such licence as aforesaid shall, before the transaction of any bus. of ins., file in the office of either of the Superior Courts of Law or Equity in that one of the provinces of Ontario, Nova Scotia, or New Brunswick, in which it has its chief agency (if such chief agency be in one of those provinces), or if the chief agency be in the province of Quebec, with the Prothonotary of the Superior Court of the district wherein such chief agency is estab., a certified copy of the charter, act of incorp. or articles of asso. of the co., and also a power of attorney from the co. to its agent in Canada, under the seal of the co. (if it have a seal), and signed by the President and Secretary or other proper officer thereof, and verified as to its authenticity by the oath of the agent of such co. in Canada, or of some person cognizant of the facts necessary to its verification, which power of attorney must declare at what place in Canada the chief agency of the co. is, or is to be, estab., and must expressly authorize such agent to receive process in all suits and proceedings against such co. in Canada, for any liabilities incurred by the co. therein, and must declare that service of process for or in respect of such liabilities, at such chief agency or personally on such agent, at the place where such chief agency is estab., shall be legal and binding on the co. to all intents and purposes whatever. By sec. 10, service of process on cos. according to such documents to be valid. 11. Every co obtaining such licence to give notice thereof in Canada Gazette, and in at least one newspaper in the county city or place where the chief agency is estab., and continue same for a space of one calendar month; and like notice shall be given that they intend to cease to carry on bus. in Canada.
12. No Foreign Stock Co. shall transact any bus. of ins. in Canada, unless such co. is possessed of at least 100,000 dols. of paid-up and unimpaired cap., or accumulated surplus funds invested in good and sufficient securities; nor shall any licence be issued in favour of such co. until a statement under oath to that effect is filed with the Minister of Finance, sworn to by some one whose duty it is to know, and who is personally cognizant of the fact sworn to; provided that the unimpaired amount of the deposit of any co. then in the hands of the Receiver-Gen. shall be reckoned as part of its cap. 13. Any person who shall deliver any pol. of ins., or collect any prem., or transact any bus. of ins. on behalf of any such co. as aforesaid, without such licence as aforesaid, or if such licence has been withdrawn, without the renewal thereof, or without filing the copy of the charter, act of incorp., or art. of asso. of the co., and a power of attorney as hereinbefore provided, shall be liable to a penalty of 1000 dols. for each such contravention of this Act, which penalty may be sued for, etc.
In case of non-payment, person so offending to be liable to 3 months' imprisonment. Sec. 14 requires ann. statements to be transmitted to the Minister of Finance, made up to 1st July preceding in the forms given in the schedule of the Act. The Finance Minister to cause an analysis to be laid before Parl. F. Minister to prescribe form of schedule in cases not provided for. Sec. 15 makes an exception in favour of certain cos. in the U. K., which were not bound by the laws then in force to furnish or pub. statements of its affairs. But such cos., if F. only, to deposit 100,000 dols., or if L., or F. and L., 150,000 dols., and fill up form in Schedule D. of Act. Sec. 16 directs application of deposit to pay claims in case of insolvency of co. A co. to be deemed insolvent,
Upon failure to pay any undisputed claim arising or loss insured against in Canada for the space of 30 days after being due; or, if disputed, after final judgment and tender of a legal valid discharge, and (in either case) after notice thereof to the M. of Finance. . . . Provided that in any case when a claim for loss is, by the terms of the pol., payable on proof of such loss, without any stipulated delay, the notice to the M. of Finance under this sec. shall not be given until after the lapse of 60 days from the time when the claim becomes due.
Distribution to be made under direction of Superior Court within the district where the chief agency is situated. 17. Order of Court as to transfer of stock. By sec. 18, whenever any co. entitled to make the deposits required by instalments, fails to pay any instalment when due, or to pay over bal. of prems., licence to be withdrawn; but may be renewed in certain cases specified,
19. After any co. has ceased to transact bus. in Canada, and given the notice required by this Act to that effect, it shall be lawful for the Governor in Council, on the report of the Treasury Board, to authorize the whole or any portion of the stock or other securities so held in deposit for any co. as aforesaid, to be released and transferred to the co. upon being satisfied that it has no liabilities upon pol. issued in Canada, and that no suit or legal proceedings are pending against the co. therein, or on proper proof on oath of the state of its affairs being given, that such co. has ample assets to meet all its liabilities; and upon such authority being given by the Governor in Council, the co. shall be entitled to receive, instead of any Dominion Stock so held, the amount thereof in money at par.
Sec. 20 enacts that mut. F. ins. cos. having their head office in any part of Canada shall regis. their names with the M. of Finance, and make ann. returns in such form as may be prescribed by him. 21 deals with local cos. in the provinces of Ontario and Quebec licensed under former Acts.
22. And as regards British and other foreign ins. cos. actually doing business in Canada at the time of the passing of this Act, which cannot by the terms of their constitutions or charters, or by law, invest in Canadian securities, it shall be lawful for the M. of Finance, with the approval of the Governor in Council, to receive the amount of the deposit required of them under this Act, in British or foreign Gov. securities, including stock of any one or more of the United States, at their then market value, but with power to him to require from time to time, if such market value should decline, additional security equivalent to their diminution in value;-and the portion of the prems. received by any such co, required to be deposited under this Act may be invested by the co. in any such British or foreign stock as aforesaid, and such stock may be deposited with the Receiver-General, subject to the provisions above made as to value, and diminution în value;-but all such stock shall be replaced by cash or investment to the amount aforesaid within three years from the issue of the licence to the co., otherwise such licence shall be void. And as regards any such co. acting on the mutual principle in such wise as to be unable legally to make a deposit under this Act, for the security of pol.-holders resident in Canada the deposit may be for the general benefit of all its members, but the co. shall specify the fact when making the deposit and in all returns made or pub. by them.
Sec. 23 provides that list of licensed cos. be pub. quarterly. Acts from commencement of this Act.
Sec. 24 repeals former
25. The provisions of this Act as to deposit and issue of licence shall not apply to any ins. co. incorp. by any Act of the Legislature of the late province of Canada if incorp., or to be incorp. under any Act of any one of the provinces of Ontario, Quebec, Nova Scotia or New Brunswick, so long as it shall not carry on bus. in the Dominion beyond the limits of that province by the Legislature or Gov. of which it was incorp., but it shall be lawful for any such co. to avail itself of the provisions of
Then follow the Schedules :
FORM A.-Statement to be made by every L. or accident ins. co., except cos. mentioned in sec. 15.— (Name of the co.) Assets of the co.; liabilities of the co.; amount of cap. stock; amount paid thereon; of what the assets of the co. consist, viz. (insert particulars); total prems. received during the year; number and amount of pol. issued during the year; amount of claims from death (or accident) during the year; expenses of management, agency, etc.; total prems. received during the year in Canada; number and amount of pol, issued during the year in Canada; amount at risk on total pol. issued in Canada; number and amount of pol. that have become claims in Canada during the year by death (or accident).
FORM B.-Statement to be made by a F. or guar. ins, co., whose deposits are not less than 100,000 dols. (except cos. mentioned in sec. 15), referred in sec. 4.-Assets of the co.; liabilities of the co.; amount of cap. stock; amount paid thereon; of what the assets of the co. consist, viz. (insert particulars); amount of losses paid during the year; amount of losses due and unpaid; losses adjusted and not due; losses in suspense and waiting further proof; losses, the payment of which is resisted, and for what cause; all other claims against the co.; amount of prems. earned for the past year; amount of prems. unearned for the past year; number and amount of pol. issued during the year; amount at risk on total policies in force in Canada; losses in Canada paid during the year; ditto adjusted and not due; ditto in suspense and waiting for further proof; ditto the payment of which is resisted and for what cause; all other claims against the co.; premiums earned in Canada during the year; ditto unearned in Canada during the year.
FORM C.-Statement to be made by a F. or guar. ins.co. whose deposits are under 100,000 dols., except those referred to in sec. 4.-Amount of prems. received during the year on risks effected in Canada, less 25 p.c., and the net amount of losses actually paid; deposit in conformity with the 2nd sec. of the said Act; assets of the co. ; liabilities of the co.; amount of cap. stock; amount paid thereon; of what the assets of the co. consist, viz. (insert particulars); amount of losses paid during the year; amount of losses due and unpaid; losses adjusted and not due; losses in suspense and waiting for further proof; losses, the payment of which is resisted, and for what cause; all other claims against the co.; amount of prems. earned during the past year; amount of prems. unearned; amount at risk on total policies in force in Canada; losses in Canada paid during the year; losses in Canada adjusted and not due; losses in suspense and waiting for further proof; losses, the payment of which is resisted, and for what cause; all other claims against the co.; prems. earned in Canada during the year; prems. unearned in Canada during the year.
FORM D.-Statement to be made by an ins. co. referred to in sec. 15.-Total prems. received during the year in Canada; number and amount of pol, issued during the year in Canada; amount at risk on total pol. in force in Canada; number and amount of pol. that have become claims in Canada during the year; amount of losses in Canada paid during the year; amount of losses in Canada in suspense and waiting further proof; losses in Canada, the payment of which is resisted, and for what cause; amount of prems. earned for the past year in Canada; amount of prems. unearned in Canada. In the recent session of the Canadian Legislative Assembly (1872), a bill was introduced to extend the rights of property of married women, and therein were contained clauses similar in effect to those contained in our own recent Act. [MARRIED WOMEN.]
There are those who think that ins. legis. has been carried quite far enough for the present in the Dominion-and that it will be wise to pause and perfect, rather than invent. We join in that view.
The following is a list of the principal offices transacting bus. in Canada at the close of 1871, showing their nationality, amount of deposits, etc. Some of the small local offices. are not called upon to make any return, and therefore may not be included.
T. OF INS. OFFICES TRANSACTING BUS. IN CANADA UNDER LICENCE, CLOSE OF 1871.
Name of Co.
Etna of Hartford
Nationality Nature of bus.
American. F., In. Marine
53,000 R. Wood, Montreal. 140,000 S. Pedler & Co., Montreal. 100,000 H. Cline, Kingston. 25,000 D. C. Macdonald, London. 50,000 F. B. Beddome, London. 80,000 H. C. Allen, Brantford. 50,000 T. W. Birchall, Toronto. 100,000 J. B. M. Chipman, Montreal. 50,000 A. G. Ramsay, Hamilton. 150,000 Morland, Watson, &Co., Mon50,000 W. McCabe, Toronto. [treal. 140,000 R. Wood, Montreal. 150,000 D. Higgins, Toronto. 100,000 R. W. Gale, Montreal. 100,000 Simms and Denholm, ditto. 130,000 R. Wood, Montreal. 100,000
Rintoul Bros., Montreal. 50,000 J. Mangham, jun., Toronto. 100,000 W. Hobbs, Montreal. 150,000 P. Wardlaw, Montreal. 150,000 G. F. C. Smith, Montreal. 150,000 R. H. Stevens, Montreal. 75,000 T. Simpson, Montreal. 16,666 W. Power, Toronto.
60,000 Livingstone & Co., Toronto. 100,000 W. Burke, Montreal.
Macdougall & Davidson, do.
100,000 Gillespie, Moffat, & Co., do.
A. R. Betheme, ditto.
A. Harvey, Toronto.
100,000 Jas. Grant, ditto.
50,000 H. J. Johnston, ditto.
50,000 M. H. Gault, Montreal. 140,000 T. E. Foster, ditto.
100,000 B.R. Corwin, St. Johns, N.B. 50,000 B. Haldane, Toronto.
[Many of the materials upon which the preceding art. is based have been most kindly and thoughtfully supplied to us by Mr. A. G. Ramsay, F.I.A., Man. of Canada L. Co., Hamilton City. We hereby tender him our best thanks.]
CANCELLATION.—An expunging or wiping out of the contents of a document, or legal
or business instrument.
CANCELLATION [CANCELMENT] OF POL. OF INS.-The cancellation of a pol. of ins. has a meaning somewhat different from the preceding. It means an absolute and more or less immediate discontinuance of the contract between the office or underwriter and the insured. We say "more or less immediate," because the conditions of each particular contract must be taken into account. Nor does it mean a simple DISCONTINUANCE of the risk. This latter can only take effect on the arrival of an ordinary period of renewal. A cancelment, in the sense here intended, can only follow some act or occurrence by which the nature of the risk has become changed without the sanction of the office, or of the indivi dual underwriter. It implies a FORFEITURE, with some modification of the consequences flowing therefrom, viz. to the extent that in a Cancelment a proportion of the unearned prem. is usually returned by agreement between the parties. It will be convenient to look at the subject under each branch of Ins. to which it may apply.
Marine Policies.-There appears to have been a custom in Marine Ins. to cancel pol.
100,000 A. W. Lauder, Toronto.