§ (1) If upon any such valuation a surplus (certified by the valuer to be disposable) is found, the following provisions shall apply:—
- (a) If the society is a society with branches, any surplus in the central fund of the society, including any surplus transferred from the branches to the society under the provisions of this Section, shall, subject to the provisions of the next succeeding Section of this Act, be applied in the first instance in making good any deficiency shown by any of its branches:
- (b) Subject as aforesaid, the society may submit to the Insurance Commissioners a scheme for distributing out of such surplus any one or more additional benefits among insured persons who are members thereof, and upon any such scheme being sanctioned by the Insurance Commissioners the society may distribute such additional benefit or benefits in accordance with the provisions thereof, or the society, if a society with branches, may in lieu of submitting such a scheme distribute the balance of the surplus, after making good deficiencies as aforesaid, amongst such of its branches as have a balance in proportion to the amounts of such surpluses, and in such case the sum so apportioned to a branch shall be treated as an addition to the disposable surplus of that branch.
- (c) If on the valuation of a branch of an approved society a surplus is shown in respect of such branch, there shall be transferred to the central body or other central authority of the society of which it is a branch one-half of the surplus, and the branch may itself, or through the society, submit to the Insurance Commissioners a scheme for distributing out of the remaining one-half of such surplus, together with any such addition as aforesaid, any one or more additional benefits, and upon any such scheme being sanctioned by the Insurance Commissioners, the branch may distribute such additional benefit or benefits in
702 accordance with the provisions thereof: - (d) If at any time after a scheme submitted by a society has been so sanctioned as aforesaid there is found to be a deficiency in the funds of the society or of any of its branches which the society is required to make good, or if at any time after a scheme submitted by or on behalf of a branch has been so sanctioned as aforesaid there has been found to be a deficiency in the funds of the branch, no additional benefits shall be distributed under the scheme until such deficiency is extinguished and a surplus shown.
§ (2) A scheme made under this Section may prescribe the conditions to be complied with as respects any additional benefit conferred by the scheme, and every such scheme shall so far as practicable provide for the reduction, suspension, or deprivation of the additional benefits conferred by the scheme in the case of members who are in arrears, and may make a corresponding reduction in the amount to which such members are to be deemed to be in arrears for the purpose of reckoning the rate of sickness benefit.
§ (3) No surplus and no part of any surplus shall be applied for the purpose of paying any benefits payable on death or any benefits other than one or more of the additional benefits specified in Part II. of the Fourth Schedule to this Act.
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Amendments made: In Sub-section (1), after the word "apply," insert the words,
(a) If the society is not a society with branches the society may submit to the Insurance Commissioners a scheme for distributing out of such surplus any one or more additional benefits among insured persons who are members thereof for the purposes of this Part of this Act, and upon any such scheme being sanctioned by the Insurance Commissioners the society may distribute such additional benefit or benefits in accordance with the provisions thereof.
§ In paragraph (a), leave out the word "in" ["in making good"], and insert instead thereof the word "towards."
§ In paragraph (b), leave out the words, "(b) subject was aforesaid," and insert instead thereof the word "and."
§ Leave out the words, "subject to the Insurance Commmissioners a scheme for 703 distributing out of such surplus any one or more additional benefits among insured persons who are members thereof, and upon any such scheme being sanctioned by the Insurance Commissioners the society may distribute such additional benefit or benefits in accordance with the provisions thereof, or the society, if a society with branches, may in lieu of submitting such a scheme."
§ Leave out the word "balance," and insert instead thereof the word "surplus."
§ Leave out the words "in such case."
§ In paragraph (c), leave out the words "one-half," ["one-half of the surplus"], and insert instead thereof the word "one-third."
§ Leave out the words "itself, or through," and insert instead thereof the words "with the approval of."
§ Leave out the word "one-half" ["remaining one-half"], and insert instead thereof the word "two-thirds."
§ In paragraph (d), after the word "society" ["by a society"], insert the words "or branch."
§ Leave out the words "or of any of its branches which the society is required to make good, or if at any time after a scheme submitted by or on behalf of a branch has been so sanctioned as aforesaid there has been found to be a deficiency in the funds of the branch."—[Mr. Lloyd George.]