§ 35. Mr. T. WILLIAMSasked the President of the Board of Trade whether he is aware of the default of the Independent Order of Foresters, Toronto, Canada, Insurance Society; and what steps have been taken to secure the return of premiums or the appropriate sums due on endowment policies to British insurers?
§ 38. Mr. JOHNSTONasked the President of the Board of Trade whether his attention has been drawn to the default of the Independent Order of Foresters, Toronto, Canada, to meet its obligations on insurance policies in this country; whether the Order is registered for business in Britain; whether he has communicated with the Government of Canada or taken any other steps to protect the insured members of the Order paying premiums in this country; and whether he proposes to take any steps by legislation to place all overseas offices doing business here under the same regulations as offices domiciled in Great Britain?
§ Mr. RUNCIMANI have no reason to believe that this society is not meeting its obligations in regard to policies issued after 1917. I am, however, aware that holders of policies issued prior to 1917 have on the maturity of their policies received substantially less than the nominal amount of policies, owing to the steps 219 taken in that year and in 1913 under powers specifically conferred by a Canadian Act of Parliament with a view to placing the society in a position of solvency.
§ Mr. T. WILLIAMSAre there no means of safeguarding British insurers against companies of this description from whom there is no guarantee of either lump sums to which they are entitled or the return of premiums?
§ Sir ARTHUR MICHAEL SAMUELIs my right hon. Friend aware that there is already available a safeguard, and that it was brought to the attention of the Board of Trade in a debate a year or 18 months ago when the Board of Trade was requested to put the oversea insurance concerns doing business here under the same regulations as those which govern British concerns domiciled here?
§ Mr. RUNCIMANIf we had the power to bring them under the control to which British concerns in this country submit, we should certainly safeguard ourselves against some of these risks, but I cannot undertake to say that that would apply to institutions established in another country.
§ Mr. JOHNSTONDoes the right hon. Gentleman consider it desirable that a defaulting organisation should be allowed to continue operating upon innocent policy holders in this country and, if not, is he prepared to introduce legislation to stop it?
§ Mr. RUNCIMANI gave the fullest possible answer I could to the inquiry of the right hon. Gentleman.
§ Mr. JOHNSTONAs I have a specific question on the Paper to which the right hon. Gentleman has not addressed himself, could I now have an answer?
§ Mr. RUNCIMANI cannot add to the answer I have already given, except to say that all insurance companies carrying on business in the United Kingdom, whether incorporated therein or not, are already subject to the same statutory requirements.
§ Mr. JOHNSTONAs that is not an answer to my question, may I ask the President of the Board of Trade whether he is aware that this organisation, which, on his own admission, has defaulted 220 against its policy holders, is to be allowed to continue further defalcations upon policy holders in this country? If not, is he prepared to introduce legislation to stop it?
§ Mr. RUNCIMANIf the right hon. Gentleman wishes the inquiry to proceed to these lengths, he ought to put another question on the Paper. I shall be glad to give the fullest answer in my power.
§ Mr. JOHNSTONWith deference, that is precisely the question that I have on the Paper.