§ (1) The Insurance Commissioners shall cause tables to be prepared showing, in cases in which such provision is necessary, the capital sums (in this part of the Act referred to as "reserve values") which it is necessary to provide in respect of members entering into insurance at ages above the age of sixteen to meet the estimated loss (if any) arising through the acceptance of such persons as members upon the terms and conditions as regards contributions and benefits prescribed by this Act.
§ (2) On a person above the age of sixteen joining an approved society there shall be credited to the society the reserve value (if any) appropriate to such persons in accordance with such tables.
§ The sums so credited to a society in respect of reserve values shall carry interest at the rate of three per centum per annum.
§ (3) Out of each weekly contribution payable by or in respect of an insured person who is a member of an approved society there shall be retained by the Insurance Commissioners the sum of one penny and five-ninths (or in the case of women one penny halfpenny), and the amounts so retained shall, together with any other moneys available for the purpose, be accumulated so as to provide the funds necessary for meeting the liabilities of the Insurance Commissioners to approved societies in respect of the reserve values created by this Section, and the balance of such contributions shall be credited to the approved society.
§ Amendments made: In Sub-section (3) leave out the word "payable" ["contribution payable by"], and insert instead thereof the word "paid."1589
§ After the word "society" ["an approved society"], insert the words "in the preceding three months."
§ Leave out the words "accumulated so as to provide the funds necessary for meeting," and insert instead thereof the words "applied in manner provided by this Act towards discharging."
§ Leave out the words, "and the balance of such contributions shall be credited to the approved society."
At the end of the Clause insert:—
(4) The Insurance Commissioners shall periodically apportion amongst the several societies the sums retained by them and the sums, if any, otherwise available for the discharge of such liabilities as aforesaid in proportion to the amount of reserve values for the time being credited to the several societies, and shall credit to each society the amount so apportioned, and any balance of the sums so credited to a society, after providing for interest on the reserve values for the time being credited to the society, shall be written off the amount of the reserve values so credited.—[Mr. Lloyd George.]