Full resolution (JPEG) - On this page / på denna sida - Second part - XIV. Credit and Insurance Establishments - 5. Insurance. By J. Leffler, Ph. D., Stockholm
<< prev. page << föreg. sida << >> nästa sida >> next page >>
Below is the raw OCR text
from the above scanned image.
Do you see an error? Proofread the page now!
Här nedan syns maskintolkade texten från faksimilbilden ovan.
Ser du något fel? Korrekturläs sidan nu!
This page has never been proofread. / Denna sida har aldrig korrekturlästs.
INSURANCE.
1041
The Law just mentioned concerning the insurance business comprises no
less than 166 §§, partly in consequence of the fact that all the provisions of the
laws about joint-stock companies, applicable to insurance institutions, have in this
law been taken up in special §§ for joint-stock companies and mutual companies
separately. The system of sanctioning is retained, though with more exact
specifications of the stipulations to be entered in the statutes, the sanctioning
of which must be applied for to the Government by the founders of an
insurance company. The instructions with regard to publicity have been retained,
with some alterations, especially in regard to life insurance companies; in their
annual reports Certain technical falls must be accounted for by a duly qualified
actuary.
In mutual companies the part-owners are the persons insured, and these
are, with unlimited — or up to a certain amount limited — liability, personally
liable for the obligations of such company; still, in a company whose activity
does not concern the insurance of property, it may be decreed that only the
issets of the company are liable for its obligations. If mutual company be
formed by means of addition of a guarantee capital, this shall be fully paid up
within two years from the constitution of the company, and if the company be
dissolved before the guarantee capital has been repaid in the manner prescribed
in the company regulations sanctioned, the trustees are not entitled to enjoy
payment (for amount added) out of the assets of the company before the other
debts of the company have been paid in full. Joint-stock company as well as
mutual company shall in its balance sheet put down as debt »insurance fund»,
including 1) compensation reserve, corresponding to insurance amounts not paid
out, though payable or notified for compensation; as also, 2) where the company
collects premium for insurance overlapping the time for the expiration of the
financial year, premium reserve, corresponding to the aggregate value of all
running insurances; for company which carries on life insurance business, the
premium reserve for life insurances (including life-annuity and endowment
assurances) shall be shown to amount to the difference between the actual value
of the company’s obligations in consequence of current life insurances (with
deduction of amount which has been advanced against the security of insurance
policy within surrender value), and the actual value of the net premiums, which
the policy-holders may still further have to pay. In what kind of securities the
assets, which correspond to the insurance fund, shall be accounted for, is specified
for life insurance (§ 123), and for other insurances for all future time or
for longer period than 10 years (§ 124); these securities shall be kept separate
from other assets of the company and under no less than two special locks having
different keys, of which one in the possession of a person duly appointed by the
governor of the Län, and »in the securities thus kept the policy-holders» — also
in mutual companies without personal liability — »enjoy the right of pledging,
just as the holder of a pawn».
Insurance company prosecuting life insurance business shall, apart from the
insurance fund, make reservation for a »security fund», which, without allowance
of the Insurance Inspection, may not be reduced except for covering loss which
could not be compensated by annual profits or reserve fund (where such exists);
and said reservation shall amount to no less than half the annual profits until
the security fund has amounted to 5 % of the insurance fund for life insurances.
Inspection of insurance company is exercised by an Insurance Inspection
common to the whole kingdom, concerning the organization and activity of which
further instructions have been issued by the Government, and concerning the
decision of which inspection appeal may be made to the Government; at the Royal
Department of Home Affairs a special officer for insurance matters has therefore
been appointed. The Insurance Inspection consists of a mathematician as chief
Sweden. 66
<< prev. page << föreg. sida << >> nästa sida >> next page >>
