§ 42. Mr. GINNELLasked the President of the Board of Trade if he will state, from the papers lodged with the Board, what the thing which the Car and General Insurance Corporation, Limited, calls its security £450,000 consists of; if it comprises premium income, uncalled capital, and other sums not immediately available in case of winding-up; have proper sums been deducted for expenses of collection, management, bad debts, depreciation, and reserve before arriving at the fore- 1662 going figure; whether the Board recognises prospective premiums as a valid security; what the Board finds to be the net available assets of this corporation after having deducted all the liabilities; and, if it is less than stated in their advertisement, whether the corporation will be required to withdraw the advertisement?
The PARLIAMENTARY SECRETARY to the BOARD of TRADE (Mr. Robertson)The Board of Trade have no information as to how the amount represented as the security offered by the Car and General Insurance Corporation, Limited, is arrived at, and the Board have no power to require the withdrawal of an advertisement unless there is an infringement of the provisions of Section 12 of the Assurance Companies Act, 1909, which provides that where any advertisement of an assurance company contains a statement of the amount of the authorised capital of the company, the publication shall also contain a statement of the amount of the capital which has been subscribed and the amount paid up. The last balance-sheet filed by the corporation with the Registrar of Joint Stock Companies shows the position at 1st January, 1912. The total assets appear in that balance-sheet at the sum of £153,753, and the total liabilities, including the reserves for unexpired risks and for outstanding claims, but excluding share capital, appear at £125,647. The balance-sheet also shows that there was capital uncalled to the amount of £77,785, and the returns show that since the date of the balance-sheet further capital has been issued of the nominal amount of £18,680.
§ 48. Mr. GINNELLasked whether the Car and General Insurance Corporation, Limited, transact life and fire business for which, if beginning now, they should deposit £40,000 as security; whether they have made any deposit of this nature; whether the Board of Trade can require them to make a deposit; and how many policies of insurance they have executed?
Mr. ROBERTSONThe Car and General Insurance Corporation, Limited, transacts fire, accident, and employers' liability insurance business, but not life assurance business. The deposit which is required by the Assurance Companies Act, 1909, from a company which now begins to transact life assurance business and fire insurance business is £20,000 and not £40,000 as stated in the question. As the 1663 corporation transacted fire insurance business and accident insurance business before the passing of the Assurance Companies Act, 1909, and employers' liability-insurance business before the passing of the Employers' Liability Insurance Companies Act, 1907, it is not liable to make any deposit. The Board of Trade have no information as to the number of policies issued by the corporation.