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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 in 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. Sec. 24 repeals former Acts from commencement of this Act.
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.
Etna of Hartford
American. F., In. Marine
Name and Location of
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. D. Higgins, Toronto. 100,000 R. W. Gale, Montreal. 100,000 Simms and Denholm, ditto. R. Wood, Montreal.
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.
75,000 T. Simpson, Montreal.
60,000 Livingstone & Co., Toronto. 100,000 W. Burke, Montreal.
150,000 R. H. Stevens, Montreal.
[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 individual 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 con. venient 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 Oswald Bros., ditto.
100,000 B. R. Corwin, St. Johns, N.B. 50,000 B. Haldane, Toronto.
in certain events: more particularly in the case of change of ownership of the subjectmatter insured. Arnould lays it down that the rescission of the contract must be the act of both parties to it-the insured and the insurer. "The ins. broker, acting for the former, has no authority merely by virtue of his capacity as agent, notwithstanding the pol. have been left in his hands, to demand or consent to the cancellation of the pol.' This was so decided in the case of Xenos v. Wickham, in 1863. Weskett said, 1781: "It is everywhere the usage when underwriters cancel their subs. to a pol., for there being no interest, or no risk, or short interest, to allow them to retain one half p.c."
Questions of considerable nicety sometimes arise regarding Cancelment. Here is a case, Baines v. Woodfall, which came before the Courts in 1859: A vessel ins. against fire for 12 months ending 29th July, arrived at Liverpool on 12th April, and the insured wrote a letter to the ins. broker, proposing a cancellation of the pol. and return of prem. “ say from 12th of April." The broker sent for the pol., "to put forward returns for cancellation," and received it. On the 21st April the broker cancelled it, on the terms of returning prem. from the 30th April to 30th July, alleging a custom of ins. brokers not to reckon broken months. The ship was burnt on 22nd April; and that same day the insured wrote a letter, withdrawing his proposal to cancel, as he had then received no answer. The question was whether, under these circumstances, there had been a cancellation, and on what terms. Held, that the pol. must be considered cancelled on the terms originally proposed, and in conformity with which the broker sent for the pol. The plaintiff therefore lost the ins., and recovered the difference on the return of prem. from the 12th instead of the 30th April. [RETURNS.]
Fire Policies.-Cases of Cancelment very frequently arise under Fire pol. In the case of fire pol. upon ships, custom comes into play. In regard to ordinary fire pol. nearly everything turns upon the terms of the contract. We do not recall any cases in point in our English law-books; but several most instructive cases have been before the American Courts. Thus, in Goit v. National Protection Ins. Co., 1855, the facts were as follow: A condition of pol. provided for cancelling the pol. if risk should be deemed undesirable, and the Co. instructed its agent to cancel the pol.; but instead of doing so, he only notified the insured of the Co.'s desire to cancel, and at the same time agreed with insured to let the pol. remain until he, the insured, could effect another ins. Held, that the pol. was not cancelled, and that the Co. was liable.
But, in the case of Fabyan v. Union Mut. F. Ins. Co., 1856, a by-law of the Co. provided that, "If the risk be increased by any change of the circumstances disclosed in the application, etc., the pol. shall thereupon be void unless an add. prem. and deposit shall be settled with and paid to said Co." After effecting ins., plaintiff put up 7 add. stoves in the building, and notified defendants thereof, admitting it to be an "increase of risk." Defendants replied, declining to continue the ins., and said they would surrender his prem. note without charge. Plaintiff wrote again to know if they would not return also the cash prem. he had paid, and that if so he would be satisfied, and get insured elsewhere; the Co. replied that they would not, but would make no assessment on his note. Afterwards the property was destroyed before anything was done. Held, that this was notice to the plaintiff that the Co. declined to assume the "increased risk," and elected to terminate their ins. under the pol. by law; and that thereupon the pol. was void.
Life Policies.-There is no custom extant regarding the Cancelment of Life pol. If the life insured travel or reside beyond the limits allowed by the conditions of the pol., and no notice be given to the office, nor any required extra prem. be paid, a FORFEITURE of the pol. occurs. An ordinary surrender of a life pol. for a consideration is the nearest approach to a Cancellation known, as the office ceases to be liable on the pol. from the day of its surrender.
Accident Ins. Pol.-These are sometimes cancelled by mutual consent; as on change of occupation, or for a pol. of another class.
In other branches of Ins. there is no custom of Cancelment; there may be SUBSTITUTION OF RISK; or FORFEITURE.
A bill may be filed to have a void pol. delivered up to be cancelled; and this whether it is void by reason of fraud in the procurement of the pol., or has become so by reason of the violation of some one of its conditions. But it is discretionary with the Court to sustain the bill or not; and therefore, if such a bill be filed, after a loss has occurred, to procure a decree, cancelling the pol. on the ground of fraud in obtaining it, as the fraud can be interposed as a defence, and the Co. is protected against unreasonable delay in bringing the action by a clause in the pol., the bill will be dismissed. This was so determined in the case Hoar v. Bembridge (Chairman of Sun L.) by V. C. Malins, 30th July, 1872.
When Equity relieves, by ordering an instrument to be cancelled, the general rule is, that the party in whose favour the decree is made shall do equity by returning the consideration; although this rule would not overrule an express stipulation for the forfeiture of the prems. in the particular case. This has been so held in the case of Barker v. Walters, 1844; and in Anderson v. Fitzgerald, 1853.
CANCER (from the Latin, a Crab).-A disease consisting of the development of peculiar cells, called Cancer-cells, accompanied by a liquid called "cancerous juice," contained in
the Stroma of a new or previously existing tissue. The term is derived from the crablike spreading of the veins.-Hoblyn.
The deaths from this cause (Class, CONSTITUTIONAL; Order, Diathetic) in England show unfortunately a tendency to increase. Here are the figures for 10 years:-1858, 6433; 1859, 6676; 1860, 6827; 1861, 7276; 1862, 7396; 1863, 7479; 1864, 8117; 1865, 7922; 1866, 8293; 1867, 8545-thus showing an increase of from 334 per million of pop. living in 1858, to 368 in 1862, 394 in 1864, and 403 in 1867. Over a period of 15 years ending 1864, the deaths were 333 per million.
The deaths in 1867 were :-Males, 2650; females, 5895. Of the males 15 died under 5, steadily increasing up to 35; between 35 and 45, 249; between 45 and 55, 521; between 55 and 65, 764; between 65 and 75, 636; between 75 and 85, 287; between 85 and 95, 35. Of the females 20 died under 5, and very few up to 25; between 25 and 35, 263; between 35 and 45, 878; between 45 and 55, 1488; between 55 and 65, 1578; between 65 and 75, 1106; between 75 and 85, 431; between 85 and 95, 47; and over 95, 3. CANDIDATE LIFE Annu. and LOAN CO., founded in 1843 as a proprietary Co. It issued a few pol., but its affairs were closed in the following or next succeeding year. Mr. Geo. Duerr was Sec. CANDIDATE LIFE ANNUITY AND FAMILY ENDOWMENT [No. 2].-Another Co. under this title was projected in 1845. But we believe it never really arrived at an active state of existence.
CANDLER [OR CANDELER], RICHARD, Mercer, was appointed in 1574, under grant from Queen Elizabeth, to make and register all manner of assu. pol., intimations, renunciations, etc., in connexion with ins. made in Lond. at that period. [CHAMBERS OF INS.] CANDLES.-The fires in Lond. during a period of 33 years returned as arising from candles were 3218, or over 11 p.c. of all the ascertained causes of fire; while those from gas during the same period were only about 7 p.c. of the ascertained causes.
CANE, JAMES CHARLES, commenced his ins. career with the National Guardian (No. 1); from thence passed about 1855 to the Lond. and Provincial Provident. In 1856 he was connected with the Herald L. He was afterwards on the staff of the Albert, then of the Western. He was next (1864) Assistant Sec. of the Financial L., during its unhappy career. He passed from this to ins. journalism.
CANN, WILLIAM, was Sec. of the West of England from 1855 to 1868. He was trained to the bus. in that office, and having passed through nearly all the chief departments, he retired in 1868, after 55 years of active service. The Chairman and Directors spoke in very high terms of the manner in which he had discharged his duties, and the staff presented him with a handsome testimonial. Mr. Cann has since been elected a Director of the co.-a well-merited compliment.
CANSDELL, C. S., was Act. and Man.-and we believe founder of the Solvency Guarantee Asso. (1852). In 1854 he promoted the Mercantile L. (No. 2). In 1856 the first-named Co. became reconstituted under the new title of Mercantile Guarantee Co., and Mr. Cansdell became its Man. Director, which position he occupied until the Co. passed into liquidation in 1860. In 1858 he published a pamphlet, New Method of Life
CANTERBURY AND East Kent Fire Office, founded at Canterbury in 1823. Its duty returns paid in 1825 amounted to £1310; in 1827 it reached 1919. In the following year the Co. passed out of existence.
CANTILLON, PHILIP, Merchant of Lond., pub. in 1759, Analysis of Trade, Commerce, etc. He is one of the few writers to whom Adam Smith has made special reference. All questions bearing upon marine ins. which appear in this work will be found embodied in these pages under their appropriate heads.
CANTON. A city in China, with a pop. estimated at 1,000,000. In 1822 a fire occurred which destroyed 15,000 houses. In 1833 an inundation swept away 10,000 houses and 1000 persons. We have not yet heard of English ins. offices penetrating the precincts
of this city.
CANWELL, WILLIAM, was Sec. of State F., from 1858. He had formerly held a position in the Times F. On the State passing into liq., he was appointed Liquidator. In 1861 he promoted Empire F. and L. He died a few years later.
CAPE OF GOOD HOPE, formerly called CAPE COLONY.-An extensive territory belonging to Gt. Brit., forming the S. extremity of Africa. On the W. it is bounded by the Atlantic, and on the S. and E. by the Indian Ocean. In 1847 its northern boundary was defined to be the Orange River. Area therefore about 170,000 square miles. The temperature of the Colony varies much in different localities; but its general average may be stated at 67° 20' at Cape Town; that of the coldest being 57°, and that of the hottest 79° Fah. The extremes, however, have a much wider range. The alternations of heat and cold are frequently great as well as sudden. The S.E. wind sometimes begins to blow with all the characteristics of a simoom. This, although very disagreeable, is not regarded as prejudicial to health; and the statistics of the colony certainly go to prove that there are few climates in which, under ordinary circumstances, human life is more likely to run its fullest course.-Imperial Gazetteer.
The pop. in 1856 was estimated at 267,096; in 1865 at 470,995.
Mr. J. Simpson, C.E., stated at the Inst. of Civil Engineers in 1844, that in the year 1817 he had examined some of the old Dutch fire engines and apparatus here, where the Dutch system remained in the same state as at the capture of the colony in 1804. The workmanship of the pump-barrels and valves was excellent, and the style of construction would be creditable to the shops of our best makers in the present day.
There are several local ins. offices for F. ins., F. and L., F. and Trust, etc., of which we shall endeavour to give a complete schedule in the Appendix. The first-South African F. and L.-was founded in 1831.
In the "Stamp and Licences Act, 1864," relating to this colony, but not applying to Natal, there are certain enactments regarding the conduct of F. ins. bus. which require to be noticed. By s. 11, F. pol. and their renewal receipts are charged at the rate of 6d. for every £100 or fraction of £100 ins. . . . Pol. and receipts duly stamped are required to be delivered, subject to a penalty on the sec., or accredited agent, to the informer for any omission. By s. 17, licences are required, for which a duty is charged of Is. for each £100 of the cap. of every joint-stock co. carrying on bus in the colony. The term 'jointstock co.' is defined to mean (1) every co. having a cap. stock divided into shares, of which co. the chief seat or place of bus. is within the colony; (2) every such co., of which the chief seat or place of bus. is not within the colony, "but of which any of the dealings shall by the deed or other instrument regulating such co., be described as to be carried on within the colony; but the licence of every such last-mentioned co. shall be reckoned upon one-half instead of the whole of its subs. cap. ;" (3) and "when any joint-stock co. is not such a co. as has been above described, but is one doing business in the colony through the instrumentality of some agency in the colony, then such last-mentioned co. shall ann. take out a licence of the value of £50;" (4) and every local director, mandatory or agent, of such last-mentioned co. who shall transact any bus. or advertise as such, when such licence has not been taken out, is made liable to a penalty not exceeding £100, to be recovered by the Distributor of Stamps by civil action in any competent court.Bunyon. CAPER.-A light-armed vessel of the 17th century used by the Dutch for privateering. CAPITAL.-The fund of a trading co. or corp., frequently called the “capital stock" of the co. The term has other meanings, as applied to the nation, or to individuals.
A good deal of discussion has from time to time arisen regarding the necessity for, and benefit or otherwise of, cap. in Ins. Asso. Some writers have gone so far as to say, or imply, that all branches of ins. may be, and should be, carried on so as to be self-sustaining. This is a theoretical view; or, if it can be applied in practice at all, it can only be so applied in the case of Life Ins. or Annu. Asso. We may say of every other branch of ins. bus. that some cap. at starting is absolutely necessary. The point to be arrived at is how to strike the happy mean,-viz. to have a cap. sufficient, on the one hand, to inspire confidence and thus bring business; and not so large, on the other hand, as to absorb an undue share of the profits of the bus. when so obtained. It is obvious here that the nature of the bus. to be undertaken becomes an important element of consideration. The earlier Ins. Asso. were almost without exception mut., founded on the principle of mut. contribution; that is to say, an entrance fee, and some small specific payment for expenses and otherwise, was paid by the members in the first instance; and the subsequent contributions were regulated by the good or bad fortune of the enterprise. As frequently as disasters arose, a pro rata contribution was levied on the members. This uncertain mode of operation applied alike to Fire, Life, Annu., and other branches of ins. bus. save Marine. The Fire offices were among the first to adopt the principle of a certain contract-the payment of a fixed prem. in consideration of being indemnified by an ample cap. against loss. This was towards the close of the 17th century.
Regarding Marine Ins., it had become a long-established usage that such risks should be undertaken by individual underwriters, who, however, were prudent enough to take but very small lines on each individual risk. With the expansion of commerce difficulties arose. Larger ships were employed; and more valuable cargoes were placed on board. Some change in the practice became imminent. But the power of associated cap. was hardly understood in the times of which we are speaking. A few chartered trading cos. had been formed; but these had not been uniformly successful: and, where successful, they had been too prudent to proclaim their success from the house-tops. The rapacity of monarchs with empty exchequers constituted a greater element of danger than the most forlorn of mercantile adventures. It was only during the reign of Queen Anne, 1702-14, that the use and power of associated cap. came to be really understood. The South Sea Co. taught us our first lesson in commercial finance; and in the end opened our eyes to the consequences of inflated credit.
It was during this South Sea mania that Ins. Cos. were first projected with large capitals. For convenience of memory call it 1720-it really commenced a few years earlier. While some of the schemes of that period were being investigated by the law officers of the Crown, it was urged upon them, over and over again, that if Ins. Cos., having large capitals, were founded, "the merchants of foreign nations, in alliance or at peace with us, would now prob. be induced in great numbers to make their ins. in Lond.,