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An annual instalments, equivalent to 70% of the total premium received in the Colony, is a reasonable form.
As regards the provisions of § 6, making Quel Deposit & Trust Fund in respect of policies issued in the Colony, I think that the objects are valid; and, having regard to the strong view held by the Committee of the House of Lords on Friendly Societies operating in Great Britain, so to do under the principle of creating preferential charges or deposits, and also to the fact that no clause corresponding to § 6 of the Ordinance appears in the Life Assurance Companies Acts 1870-72, I am of opinion that § 6 should be deleted in any amendment of the Ordinance.
As regards § 9 of the Ordinance, providing that, in the case of a Company which ceases to do new business in the Colony, the withdrawal of the deposit shall be allowed, subject to the retention of securities equal in value to the amount of the sums assured or contracted to be paid by the Company in respect of its existing business, I am of opinion that Clause 2 of § 9 would be quite unworkable, or repetitive, in practice, as it would seem to provide that, so long as the sums assured under the existing business amount to £30,000, no portion of the deposit could be withdrawn. It would, I think, be preferable to provide that no portion of the deposit of £30,000 should be withdrawn, so long as the Company had any existing Life Assurance business whatever in the Colony. This would seem to have practically all the effects of a preferential local deposit, without the disadvantages above inferred.
Section 13 of the Ordinance. I am not clear as to the advisability of exempting Companies, which have already made a Deposit under the provisions of the Imperial Act, from the provisions of the Ordinance.
In any case, the present wording hardly meets the case, as the Companies operating in the United Kingdom and making returns under the Act of 1870, fall into three classes
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