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54. The saving and transitional provisions specified in Schedule 9 shall have effect for the purposes of this Order. Art.55, with Schedule 10, effects repeals 1. The deposit shall be made before the society commences to carry on industrial assurance business in Northern Ireland. 2. In the case of a society applying for registration under the Friendly Societies Act, or for the registration of amendments of its rules, if the proposed rules of the society, or proposed amendments, are such as will enable the society to carry on industrial assurance business, the Commissioner shall not issue to the society an acknowledgment of registration of the society or, as the case may be, of amendment of rules until the deposit has been made. 3. The deposit shall not be accepted except on a warrant of the Department. 4. Rules of court may be made with respect to (i)the payment of deposits; (ii)the laying out of deposits at interest; (iii)the investment of deposits by the Accountant-General in securities; (iv)the transfer of deposits to any fund established for the investment of money deposited in the Supreme Court; (v)otherwise dealing with deposits. 5. Subject to paragraph 6(a), the interest or dividends accruing due on the deposit or on securities in which the deposit is for the time being invested shall be paid to the society. 6. Where the rules of a collecting society ("a subsidiary society"), whether registered before or after the making of this Order, provide that the management of that society shall be vested in the committee of management of some other friendly society ("the principal society") which was registered before 4th August 1921 (a)the principal society may make the deposit on behalf of the subsidiary society and may apply any of its funds for that purpose, and, in that case, the interest on the deposit, or the securities in which the deposit is for the time being invested, shall be paid to the principal society and not to the subsidiary society; or (b)the principal society may guarantee the liabilities of the industrial assurance fund of the subsidiary society to the extent of #20,000 in such manner and subject to such amendment of rules as the Commissioner may require, and the principal society may amend its rules accordingly; and, if the Commissioner is satisfied with that guarantee, the guarantee may be accepted in lieu of the deposit. 7. Where the principal society is a society with branches, the rules of the society may provide for the central body of the society borrowing from the branches, and the branches lending to the central body, funds required for making the deposit. 1. Article 16(1) applies only where the death in question is that of a person who, at the time of the proposal, is ordinarily resident in the United Kingdom or the Isle of Man. 2.(1) In effecting an insurance in exercise of the power conferred by Article 16(1), an industrial assurance company shall not insure, to be paid to any person on the death of any one of his parents or grandparents, any sum which, either taken alone or when added to any sum or sums for the time being insured to be paid to that person on that death under any other relevant insurance or insurances taken out by him, exceeds #30. (2) Where an insurance has been effected by an industrial assurance company in exercise of the power conferred by Article 16(1), then, subject to sub-paragraph (3) (a)the company shall not by virtue of or in connection with that insurance pay to any person any sum which exceeds #30 when taken alone; or (b)the company shall not by virtue of or in connection with that insurance, pay to the person by whom that insurance was taken out any sum which exceeds #30 when added to any sum or sums paid to him, on the death on which money was thereby insured to be paid, by virtue of or in connection with any other relevant insurance taken out by him; or (c)if any payment has been made on the death in question by virtue of or in connection with that insurance to the person by whom it was taken out and that payment has not been repaid, the company shall not pay to him on that death, by virtue of or in connection with any other relevant insurance taken out by him, any sum which exceeds #30 when added to the sum so paid and not repaid, or when added to it and to any sum or sums paid to him on that death by virtue of or in connection with any other relevant insurance or insurances taken out by him. (3) For the purposes of this paragraph, there shall be excluded any sum insured to be paid, or paid, (a)by way of bonus, other than a guaranteed bonus; or (b)by way of repayment of premiums; or (c)under a free paid-up policy which was in force as such on 30th June 1948, or had been applied for or claimed before that date; (i)any increase in any benefit payable by the company under a contract of assurance made by the company in the course of its industrial assurance business in Northern Ireland where the increase results from the adoption of a scheme prescribed or approved in pursuance of section 6(3) of the Decimal Currency Act 1969 (elimination of amounts other than a new halfpenny or multiples thereof); or (ii)any increase in any sum assured or guaranteed which is effected under regulation 6 or 7 of the Industrial Assurance (Life Assurance Premium Relief) Regulations (Northern Ireland) 1978 [and amended under regulation 6 or 8 of the Industrial Assurance (Life Assurance Premium Relief) (Change of Rate) Regulations (Northern Ireland) 1981] (increase commensurate with increased premium under arrangements made in lieu of tax relief). 3. Where, under any relevant insurance, money is for the time being insured to be paid to the person by whom the insurance was taken out on the death of a parent or grandparent of his (a)any assignment or charge made by him after 22nd December 1948 of or on all or any of the rights in respect of the insurance conferred on him by the policy or by any provision of this Order, or of any enactment repealed by this Order; and (b)any agreement so made by him to assign or charge all or any of those rights; 4. Paragraphs 5 to 9 have effect with regard to the production of certificates of death in connection with the making of payments relevant for the purposes of paragraph 2. 5. An industrial assurance company shall not, by virtue of or in connection with any relevant insurance of money to be paid on the death of a parent or grandparent of the person by whom the insurance was taken out, pay to that person on the death any sum not excluded, for the purposes of paragraph 2, by sub-paragraph (3) of that paragraph, except upon production of a certificate of the death for the purposes of this Schedule stated therein to be issued to the person to whom the payment is made, unless the death occurred outside Northern Ireland. 6. On so making payment of any such sum, the industrial assurance company shall cause to be endorsed on the certificate a statement showing (a)the name of the company; (b)the amount of any such sum paid; and (c)the date of the contract for the insurance; 7. Where an industrial assurance company is charged with a contravention of paragraph 2 in respect of the payment by the company of a sum which exceeded the limit of #30 imposed by paragraph 2(2)(b) or (c) in consequence of the addition as thereby required of another sum paid by another industrial assurance company or by a registered friendly society, or two or more other sums so paid, and which would not have exceeded the limit apart from that addition, it shall be a defence for the company charged to prove that (a)the sum in respect of which the company is charged was paid in accordance with paragraph 5; and (b)the certificate produced disclosed no payment by any other industrial assurance company or by a registered friendly society of any sum or sums required by the said paragraph 2(2)(b) or (c) to be added, or disclosed such payment but only to an amount insufficient to cause the sum in respect of which the company is charged to exceed that limit; 8. The provisions of paragraphs 4 and 5 of Schedule 5 to the Friendly Societies Act apply in relation to certificates of death for the purposes of this Schedule and the issue of duplicates thereof. 9. On production to an industrial assurance company of a duplicate which records a requirement for an endorsement made by it to be repeated in accordance with regulations under paragraph 5 of Schedule 5 to the Friendly Societies Act, the company shall cause the duplicate to be endorsed accordingly and paragraph 7 of this Schedule shall not apply in the case of a certificate which is a duplicate on which such a requirement is recorded, unless the duplicate has been endorsed by the company in question. 10. In this Schedule "registered friendly society" includes a branch of such a society; "relevant insurance" means an insurance effected (whether before or after the commencement of this Order) by an industrial assurance company or by a registered friendly society in exercise of any power conferred by (a)Article 16(1); (b)paragraph 1 of Schedule 9; (c)any provision of any enactment repealed by this Order corresponding to any of the provisions mentioned in paragraphs (a) and (b); (d)paragraph 2(d) of Schedule 1 to the Friendly Societies Act. 11. References in Article 16(1) and this Schedule to a payment on a person's death include references to a payment for his funeral expenses. (a)as to the following provisions of this Order, of the Friendly Societies Act and of regulations, either those provisions or, as to any of them to which the Commissioner consents to the substitution of a statement which, in his opinion, sufficiently sets out the effect thereof, such a statement of collecting societies only).rules and amendments thereof. made under Article 49(1)(d) for the purposes of Article 21. non-disclosure, in proposals. premium receipt books after inspection. policies. Schedule 3 to this Order(in the case of industrialassurance companies only)and sections 62 and 63(2) and (3) of the Friendly Societies Act (in the case of collecting societies only).of Schedule 9 to, this3 to this Order (in thecase of industrial assurancecompanies only) and Schedule5 to the Friendly SocietiesAct (in the case of collectingsocieties only). 2. In this Schedule, "the Act of 1896" means the Friendly Societies Act 1896. 1. The valuation shall be made by an actuary as defined by [section 85(1) of the Insurance Companies Act 1974]. 2. The report containing the abstract of the valuation required by section 34 of the Friendly Societies Act shall be sent by a collecting society to the Commissioner within 12 months after the close of the period to which the valuation relates, and shall contain (a)a statement as to how the value of stock exchange securities (if any) included in the balance sheet are arrived at; and (b)a certificate, signed by the same persons as sign the balance sheet, to the effect that, in their belief, the assets set out in the balance sheet are in the aggregate fully of the value stated therein, less any investment reserve fund taken into account. 3. Where the balance sheet of a collecting society or an industrial assurance company includes amongst the assets thereof any sums representing (a)expenses of organisation or extension; or (b)the purchase of business or goodwill; 4. Where debentures have been issued or loans raised which are charged on any of the assets of the company in which the industrial assurance fund is invested, there shall be inserted in the valuation balance sheet a note giving the particulars of the charge and stating that the result shown by the valuation is subject to the liability under the charge. 5.(1) Subject to sub-paragraph (2), if the Commissioner is satisfied on any valuation (a)that any of the foregoing provisions of this Schedule have not been complied with; or (b)that the industrial assurance fund as stated in the valuation balance sheet is greater than the value of the assets available for the liabilities of that fund, due regard being had to the other liabilities of the collecting society or industrial assurance company and to the foregoing provisions of this Schedule; (2) The collecting society or industrial assurance company may appeal to the High Court against any decision of the Commissioner under this paragraph. 6. The Commissioner may direct any collecting society or industrial assurance company to furnish to him, in addition to such information as the society is required to furnish under section 34 of the Friendly Societies Act or, as the case may be, the company is required to furnish under the Insurance Companies [Act 1974], such explanations as he considers necessary in order to satisfy himself whether the valuation complies with the provisions of this Schedule. 7. Where a valuation discloses a deficiency, the Commissioner may, if, after investigation, he is satisfied that the collecting society or industrial assurance company should cease to carry on industrial assurance business, (a)in the case of a collecting society, award that the society be dissolved and its affairs wound up; or (b)in the case of an industrial assurance company, present a petition to the High Court for the winding-up of the company. 1. The value of the policy is to be the difference between the present value of the reversion in the sum assured according to the contingency upon which it is payable, including any bonus added thereto, and the present value of the future net premium. 2. Subject to paragraphs 3 to 5, the net premium is to be such premium as, according to the assumed rate of interest and rate of mortality and the age of the person whose life is assured at his birthday next following the date of the policy, is sufficient to provide for the risk incurred by the collecting society or industrial assurance company in issuing the policy, exclusive of any addition thereon for office expenses and other charges. 3. In the case of a policy, other than a policy for the whole term of life issued before the person whose life is assured attained the age of 10 years, the date of the policy may be assumed to be one year after the actual date, and, if it is so assumed, the term of the policy may be assumed to be one year less than the actual term. 4. In the case of a policy for the whole term of life issued before the person whose life is assured attained the age of 10 years, account shall not be taken of any period for which the policy was in force before the anniversary of the date of issue of the policy next preceding the date on which the age of 11 years was attained. 5. In the case of a substituted policy, the net premium shall be calculated with reference to such sum as, according to the practice of the collecting society or industrial assurance company for the time being, would have been assured by the premium payable, if the person upon whose life the substituted policy is issued had not been assured with the society or company before the issue of that policy. 6. Subject to Article 35 and Schedule 7, the amount of a free paid-up policy is to be a sum bearing the same proportion to 75 per cent. of the value of the policy as the sum of #1 bears to the value of the reversion in the sum of #1, according to the contingency upon which the sum assured under the original policy was payable. 7. Interest is to be assumed at the rate of 4 per cent. per annum. 8. The rate of mortality is to be assumed according to the table contained in column 6 of Table G in the Supplement to the 65th Annual Report of the Registrar-General of Births, Deaths and Marriages in England and WalesPart I. 9. The age of the person whose life is assured shall be obtained by adding to the age attained by him at his birthday next after the date of the issue of the policy, the duration of the policy in completed years at the date as at which the value of the policy is required to be ascertained. 10. In the case of a policy issued for a term other than the whole term of life, the remaining term at the date at which the value of the policy is required to be ascertained shall be obtained by deducting from the original term of the policy the duration of the policy in completed years at that date. 11. In its application to the valuation of a policy of which the sum assured or guaranteed has been increased under regulation 6 or 7 of the Industrial Assurance (Life Assurance Premium Relief) Regulations (Northern Ireland) 1978, this Schedule shall have effect subject to the following modifications (a)the value of the policy shall be the aggregate of the value of the sum assured or guaranteed by the policy immediately before the increase and of the value of the increase in the sum assured or guaranteed; (b)for the purpose of the valuation of the increase in the sum assured or guaranteed, paragraphs 1 and 2 shall have effect as if the increase had been assured by a policy effected on the next anniversary date of the policy after 6th April 1979 for the then unexpired term of the policy. [12. In its application to the valuation of a policy of which the sum assured or guaranteed has been increased as mentioned in paragraph 11 and the increase has been amended under regulation 6 or 8 of the Industrial Assurance (Life Assurance Premium Relief) (Change of Rate) Regulations (Northern Ireland) 1981, this Schedule shall have effect subject to the following modification, namely the value of the policy shall be computed and approved by an actuary in accordance with principles which take account of the amendment and which are approved by the Commissioner.] 1. Subject to paragraph 2, the free paid-up policy of a registered friendly society or an industrial assurance company shall assure payment, on the events on which the sums assured by the surrendered policy were payable, of sums bearing the same proportion to those sums (including any addition by way of bonus) as the amount of the premiums actually paid under the surrendered policy bears to the amount of the premiums which would have been payable under the surrendered policy had the full number of premiums become payable thereunder. 2. Where any sum has been paid by the registered friendly society or industrial assurance company under the surrendered policy, before the surrender of the policy, the sums assured by the free paid-up policy shall be [computed on such basis as may be approved by the Commissioner.] [and approved by an actuary in accordance with principles which take account of the substitution of 15 per cent. for 17 per cent. effected by section 29 of the Finance Act 1980 and which are approved by the Commissioner.] 3. Where the surrendered policy provided for payment of a sum by way of return of a premium on any event, the free paid-up policy shall provide that, on that event, such part of the premiums actually paid under the surrendered policy shall be repaid as would have been payable on that event if the surrendered policy had remained in force. 4. In paragraphs 1 and 3 the words "premiums actually paid", in their application to a policy in respect of which under the prescribed scheme (as defined by Article 29(3)) or an approved scheme (as so defined) payment of any premium due has been discharged by payment of [82 per cent.] of that premium, shall include premiums in respect of which such payment has been made. 5. In its application to a policy of which the sum assured or guaranteed has been increased under regulation 6 or 7 of the Industrial Assurance (Life Assurance Premium Relief) Regulations (Northern Ireland) 1978 ("the 1978 Regulations"), paragraph 1 shall have effect subject to the following modifications: (a)For the purpose of calculating the amount assured by the free paid-up policy the sum assured by the surrendered policy shall be divided into the original sum assured and the increase in the sum assured, any addition to the sum assured by the surrendered policy by way of bonus on or after 6th April 1979 to be allocated proportionately between and to be treated as comprised in the original sum assured and the increase in the sum assured respectively. (b)The amount assured by the free paid-up policy shall consist of the aggregate of proportions of the original sum assured and of the increase in the sum assured calculated as follows: (i)the proportion of the original sum assured shall be the same proportion as the amount of the original premiums actually paid bears to the amount of the original premiums which would have been payable under the surrendered policy had the full number of original premiums become payable thereunder; (ii)the proportion of the increase in the sum assured shall be the same proportion as the amount of the increase in premiums actually paid bears to the amount of the increase in premiums which would have been payable under the surrendered policy had the full number of increases in premium become payable thereunder. [5A. In its application to a policy of which the sum assured or guaranteed has been increased as mentioned in paragraph 5 and the increase has been amended under regulation 6 or 8 of the Industrial Assurance (Life Assurance Premium Relief) (Change of Rate) Regulations (Northern Ireland) 1981 paragraph 1 shall have effect subject to the following modification, namely the amount assured by the free paid-up policy shall be computed and approved by an actuary in accordance with principles which take account of the amendment and which are approved by the Commissioner.] 6. For the purpose of this paragraph and of paragraph 5(b)(i): "the original premiums" means the premiums of the amount payable under the policy before the increase in premium was effected under regulation 5(1) or 7(2) of the 1978 Regulations, including, in respect of premiums paid, or which would have been payable, after 6th April 1979, payments of that amount included in premiums paid, or which would have been payable, after that date; "the original sum assured" means the sum (including any addition by way of bonus) assured or guaranteed under the surrendered policy on 6th April 1979 before the increase under regulation 6 or 7 of the 1978 Regulations took effect, together with any addition made thereto in respect of the due proportion of any bonus added on or after 6th April 1979; "the amount of the increase in the sum assured" means the sum assured by the surrendered policy in so far as it exceeds the original sum assured as at 6th April 1979, together with any addition made thereto in respect of the due proportion of any bonus added on or after 6th April 1979. Schedule 8Amendments 1.(1) Notwithstanding the repeal by this Order of section 3 of the Act of 1924, section 1 of the Act of 1929 and section 1 of the Act of 1948 (a)a collecting society and an industrial assurance company shall continue to have power to insure money to be paid for the funeral expenses of a parent, child, grandparent, grandchild, brother or sister who at the time of the proposal is ordinarily resident outside the United Kingdom and the Isle of Man; and (b)a registered friendly society and an industrial assurance company shall continue to have power to insure money to be paid on the duration for a specified period of the life of a parent, child, grandparent, grandchild, brother or sister so ordinarily resident, either with or without provision for the payment of money in the event of the death of the person whose life is the subject of the policy, but subject to the limitations that (i)in the case of a policy issued after 10th July 1929, the amount payable or paid on death must not exceed a reasonable amount for funeral expenses; and (ii)no payment shall be made on the death of a child under 10 years of age except, in the case of a registered friendly society, in accordance with the provisions preserved by the Friendly Societies Act, Schedule 7, paragraph 4, or, in the case of an industrial assurance company, in accordance with paragraph 2(6) of this Schedule. (2) Nothing in this Order prejudices any insurance effected under section 3 of the Act of 1924 or section 1 of the Act of 1929 before 5th July 1949, or any rights or liabilities in respect of any such insurance. (3) Where a collecting society or an industrial assurance company (a)issues a policy under sub-paragraph (1)(a), or (b)issues, under sub-paragraph (1)(b), a policy under which the premiums are payable at intervals of less than two months, 2.(1) Notwithstanding the repeal by this Order of section 4 of the Act of 1924 and the fact that the repeals made by this Order in subsection (2) of section 6 of the Act of 1948 cause the proviso to that subsection to cease to apply to industrial assurance companies, the provisions set out in this paragraph shall continue to apply to insurances effected by an industrial assurance company on the life of a person who, at the time of the proposal, is ordinarily resident outside the United Kingdom and the Isle of Man, including assurances the premiums in respect of which are payable at intervals of two months or more; but this paragraph does not apply where the person insuring has an interest in the life of the person insured. (2) An industrial assurance company shall not insure or pay on the death of a child under the ages hereinafter specified any sum of money which exceeds or which, when added to any amount payable on the death of that child by any other industrial assurance company or by any friendly society or branch, whether registered or not registered, or by any trade union, exceeds the amounts hereinafter specified, that is to say, (a)#6 in the case of a child under three years of age; (b)#10 in the case of a child under six years of age; (c)#15 in the case of a child under 10 years of age. (3) Where an application is made for a certificate of the death of a child for the purpose of obtaining a sum of money from an industrial assurance company in respect of such an insurance (a)the name of the company and the sum sought to be obtained from it shall be stated to the registrar of deaths; (b)the registrar of deaths shall write on or at the foot of the certificate the words "to be produced to the ...(naming the industrial assurance company) said to be liable for payment of the sum of ...(stating the amount sought to be obtained)"; (c)the certificate, together with all other certificates of the same death, shall be numbered in consecutive order. (4) A registrar of deaths shall not give any one or more certificates of death for the payment in the whole of any sum of money exceeding (a)#6 on the death of a child under three years of age; or (b)#10 on the death of a child under six years of age; or (c)#15 on the death of a child under 10 years of age. (5) A registrar of deaths shall not give any such certificate unless the cause of death has been previously entered in the register of deaths on the certificate of a coroner or of a registered medical practitioner who attended the deceased child during its last illness, or except upon the production of a certificate of the probable cause of death under the hand of a registered medical practitioner, or of other satisfactory evidence thereof. (6) An industrial assurance company shall not pay any sum on the death of a child under 10 years of age except upon production by the person claiming payment of a certificate of death issued by the registrar of deaths, or other person having the care of the register of deaths, containing the particulars mentioned in sub-paragraph (3). (7) An industrial assurance company to which there is produced a certificate of the death of a child which does not purport to be the first shall, before paying any money thereon, inquire whether any and what sums of money have been paid on the same death by any other industrial assurance company, or any friendly society or branch. 3. For the purpose of calculating the maximum sum which may be insured or paid under paragraph 1(1)(b) or under paragraph 2(2), no account shall be taken of any repayment of the whole or any part of the premium paid in respect of any endowment policy, and paragraphs 1(1)(b)(ii) and 2(6) shall not apply as respects any such payment. 4. A policy effected before 3rd December 1909 with a collecting society or an industrial assurance company shall not be deemed void by reason only that (a)the person effecting the policy had not, at the time the policy was effected, an insurable interest in the life of the person upon whose life the policy is taken out; or (b)the name of the person interested or for whose benefit or on whose account the policy was effected, was not inserted in the policy; or (c)the assurance was not authorised by the Acts relating to friendly societies; 5. Any endowment policy issued before 1st January 1925, which would have been in force on that date if the Act of 1929 had been in operation on and from the date on which the policy was issued, shall be deemed, for the purposes of this Order, to have been in force on 1st January 1925 and, in the case of a policy of the description mentioned in paragraph 1(1)(b), to have been issued in accordance with that paragraph, and, as respects any endowment policy in force on, or issued since, that date, Article 35 and paragraph 1 of this Schedule shall be deemed to have been in operation on and from the date on which the policy was issued. 6. Where a period of time specified in an enactment repealed by this Order is current at the commencement of this Order, this Order shall have effect as if the corresponding provision thereof had been in force when that period began to run. 7. Any certificate of exemption issued under section 11 of the Collecting Societies and Industrial Assurance Companies Act 1896 or the corresponding provision of any Act repealed by that Act and in force immediately before the commencement of this Order shall continue in force until revoked by the Commissioner and have effect as if it were a certificate under Article 12 exempting the society from all the provisions of this Order. 8. The provisions of Part VI of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 (as applied to Northern Ireland by any Order in Council under section 65 of that Act), and of regulations made under section 57 of that Act (as so applied), shall have effect in relation to this Order as they had in relation to the corresponding provisions of the enactments repealed by this Order. 9.(1) The inclusion in this Order of any express amendment or saving shall not be taken as prejudicing the operation of sections 28 and 29 of the Interpretation Act (Northern Ireland) 1954 (which relate to the effect of repeals and substituting provisions). (2) For the purposes of this Order, the provisions of section 29(1) (construction of references to the superseded enactment) and(3)(a) (statutory instruments or documents made, and things done, under the superseded enactment to have effect as if made or done under the superseding enactment) of that Act shall apply to all instruments and documents as they apply to statutory instruments and statutory documents within the meaning of that Act. 10. In this Schedule "the Act of 1924" means the Industrial Assurance Act (Northern Ireland) 1924; "the Act of 1929" means the Industrial Assurance and Friendly Societies Act (Northern Ireland) 1929; "the Act of 1948" means the Industrial Assurance and Friendly Societies Act (Northern Ireland) 1948. Schedule 10Repeals 1929 c.8 1948 c.22
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