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Un das symbolas suivants apparaltra sur la darnlAra imaga da chaqua microficha, salon la cas: la symboia — »> signifia "A SUIVRE". la symbols Y signifia "FIN". ra Maps, plataa, charts, ate, may ba filmad at diffarant raduction ratios. Thosa too larga to ba antiraly includad in ona axpoaura ara filmad baginning in tha uppar laft hand cornar, laft to right and top to bottom, as many framas as raquirad. Tha following diagrams illustrata tha mathod: Laa cartas, picnchas, tablaaux. ate, pauvant Atra filmis A das taux da reduction diff Arants. Lorsqua la documant ast trop grand pour Atra raproduit an un saul clichA, 11 ast f limA A partir da I'angla supAriaur gaucha, da gaucha A droita. at da haut an baa. an pranant la nombra d'imagas nAcassalra. Las diagrammas suivants illuatrant la mAthoda. f arrata d to It la palura. pon A 1 2 3 1 2 3 4 5 6 32X /^^^3/ THE llnsiirance Corporations Act, 1892. WITH PRACTICAL NOTES AND APPENDICES. APPENDIX A. Acts SuHsiDiAnv to thk Insubaxck Cobpobationh Act, with Annotatiomi. 1.— K.R.O., 1HK7, c. laS, (as amended or affected by subsequent enact* inentR.) An Act to secure to Wivea and Children the Peueflt of Life Insurance. 'J.— K.S.O., 1H87, c. 107. sec.ions 1H-I19. STATfToBY Conditions of FiKK Policies, and provisions relating thereto, together with subseciuent auxiliary or declaratory enactments. * APPENDIX B. DKPARTMENTAL FOIIMS, with DIKF.CT10X8 AS To THEIH UBE, FOB PURPOSES OF THK Inhl'raxce Corporatioms -Act. APPENDIX C. FORMH 01- INSUHANCK CoNTBVtTS, ILLCSTBATIVE OF THE PROVIBIONS OP THE ACT. vr WILLI AIM HOWARD HUNTER, B.A. ISarristrr-at-Law. WITH AN INTRODUCTORY CHAPTER BY J. HOWARD HUNTER, M.A. 3armter-at-Law ; Inspector of Insurance and Itfgistrar of Friendly Societies fin- thf Province of Ontario. To which is now addetl as APPESDIX I). 56 VIC, CHAP. 32, (An Act resfiecting the Insurance Law.) TORONTO : THE CARSWELL COMPANY, (LTD.) 1893. Entered accordiug to Act of Parliament of Canada, in the Ofllce of the Mir!8ter of Agriculture, by William Howard Huntbh, in the year one thouaanu eight hundred and ninety. lie Mii;ister of iiousanu eight &fauuruy^r«N' Lir* iDannine* ' MeJ'linll V Co.-^I>. O. Cttm|M|!|iiim«l W. T. J. L*« for pUtot I fr»*-W . *frriUd4oll anil II. B. Hon* for Uef«>iidiii>ti». Action to r«cwv«r luoocyt under ■ eaucfllrd Mftf Iniurinctt pollcj. JudguMut ■4ttt IMU^FACi:. By tlu' skilful piloting' of tho Honouniblc J. M. (libson, Q.C., Proviiuaal Socrctsiry, tho TtiHurance Corporations Bill was lust session curried throii<,'h the Le/^nshiture of Ontario, and is now hiw. This enactnicMit, which is one of tho most iinportiint and coniprohcMisivo moasuros over passed hy tho Provincial Lo^nslaturc, removes many lon^'- standinj^' anoniiilios in our Insurance Law, and establishes ^^'ueral ecpiitable j)rinciples by which all contracts of insurance, — whether made by Friendly Societies, or by Insurance Companies — — are hereafter to be interpreted, and governed. In Life and Accident Insurance, the doctrine of insurable interest is now revised in accordance with the oxiports will be found decisions of the utmost prac- tical value in directing' executive ollicers as to their powers and duties, or in directing' members as- to tlu'ir ri«^dits and remedies. From this store- house of decisions the author has, in tho notes, selected such leading' cases as will, he trusts, be found of essential service in the practical man- agement of all our benefit societies. In Fire Insurance the relative rights and duties of the insurer and assured on the occasion of a loss are now legally detined and the perplexing (pies- tions that have lately arisen have been dealt with in the new Act. The great importance of the Statutory Conditions has obtained for them a place in Appendix A, — where will be found the conditions actually now in force, and the provi- sions relating to them, together with subsequent auxiliary or declaratory enactments. The legal status of all insurance corporations or companies doing business in the Province is now made matter of registry in the Provincial VI Preface. Department ; so that not only the right of a given corporation to imdertake contracts of insnrance can be ascertained, but the remedies of claimants imder policies can be pursued within the Province in the Provincial Courts. The proceedings to obtain registry and the material required to sup- port the a^lication have, in the present volume, been explained in a practical manner, and the forms prescribed by tlio Department of Insurance are added in Appendix B. From decisicns of the Registry Officer there is an appeal to the Divisional Court of the High Court. The provisions relating to the powers and duties of the Eegistry Officer have been dealt with fully, and the effects of his decision dis- cussed. For corporations wdthin the legislative authority of the Province a new procedure in winding up has been provided. This branch of the subject has been copiously illustrated. In preparing these annotations the author has had access to his father's valuable manuscript commentary on our insurance laws, v;hich as Gov- ernment Inspector of Insurance he has long had so large a share in moulding. For the very com- plete analytical index the author is indebted to his brother, Mr. A. T. Hunter, L.L.B. W. H. HUNTER. Equity Chambers, Toronto, 18th June, 1892. CONTENTS. Page. Preface iii. Table of cases xi. Introductory chapter xxiii. Analysis of Act, showing what corporations can and what cannot transact insurance in Ontario Ixiv. Summary of provisions 1 INSURANCE CORPORATIONS ACT. Definitions and Interpretation, s. 2 9 None but registered corporations to transact insurance, s. 3 70 The corporation rej^isters, s. 4 (1) (2) 73 Corporations not entitled to register as friendly societies, s. 4 (2) . . 78 Licensed companies, ss. 5-7 97 Societies incoriwrated under the Benevolent Societies' Acts, s. 8. . Ill Societies incorporated by Acts of Parliament of Canada, s. 9 .... 141 Status of foreign corporations 156 Foreign Friendly Societies, s. 10 158 The Registrar of Friendly Societies, s. 11 164 Proceedings to obtain registry, ss. 12-17 165 The entries on the registers, s. 18 180 Renewal of registry, ss. 19-21 183 Friendly societies not permitted to make deposit, s. 22 187 Change of name, s. 24 191 Revocation of registry, s. 25 193 Official notice and certificates, s. 26 195 Unauthorized insurance, penalties, s. 28 199 The books of account and audit, ss. 28-32 207 Conditions in policies, s. 33 (1-3) = 227 Entry after loss, s. 33 (4) 246 Error in statement of age, s. 34 250 Insurable interest, s. 35 256 Accident insurance, s. 36 267 Insurance for benefit of wives and children, s. 37 274 Discrimination between assured, s. 38 277 Liability of members of society, s. 39 287 Forfeiture of benefits,*. 40 (1) 290 Re-instatement, s. 40 (1) 301 Amount payable under contract, ss. 41, 42 305 Notices to corporations, a. 43 314 VUl Contents. Paoe, Default in payment of claim, b. 44 315 Registrar and books of society, s. 45 317 Annual statements, «s. 47, 48. 321 Suspension or cancellation of rej^istry, ss. 49-51 ^ 325 Appointment and duties of receivers, ss. 52-Gl 335 Tariff of fees, s. 62 351 Provisions amended or repealed, s. 63 355 General summary of Acts amended or repealed by The Insurance Corporations Act 357 APPENDIX A. Subsidiary Acts with annotations — 1. R. S. O. 1887, c. 136, being an Act to secure to wives and children the benefit of life insurance 361 2. R. S. O. 1837. c. 167, ss. 114-119, statutory conditions of fire policies and provisions relating thereto, together with subsequent auxiliary or declaratory enactments.. 372 APPENDIX B. Departmental Forma to be used under The Insurance Corporations Act. I I' ! .1 No. 1. Application for registry as an insurance licensee 389 2. Treasury receipt for application fee 397 3. Power of attorney 398 4. Treasury receipt for certificate fee 401 5. Certificate of registry as insurance company 402 6. Treasury receipt preliminary to registry as Provincial licensee 403 7. Provincial license 404 8. Annual document of authority issued to Dominion licensees.. 40^ 9. Application for registry as a friendly society 410 10. Form of affidavit verifying financial statement 405 11. Change of corporate name, direction, 417 12. Notice in Ontario Gazette, re change of name 417 13. Certificate of registry as friendly society 418 14. Receipt for agents' license fee 419 15. Application for Registry as insurance agent 420 16. Recommendation for registry 421 17. Insurance agjnts' certificate of registry 421 18. Notice i.0 state objections 422 Contents. IX APPENDIX C. • Forms of Insurance Contracts illustrative of tlie Provisions of the Act. Rcdncible term endowment policy — Paok. The Peoples' Life Insurance Co , 42-4 Life with profits — The Canada Life Assurance Co 428 Semi-Tontine— The North American Life Assurance Co 43 1 Tontine — The Manufacturers' Life Insurance Co 434 Accident Policies — The Travelers Insurance Co 437 The Accident Insurance Co. of North America 339 The Manufacturers' Accident Insurance Co 6rt2 Friendly Society Contracts — Sona of Enfjhind Benevolent Society 445 Ancient Order of Foresters 447 Ancient Order of United Workmen 448 Independent Order of Foresters 451 Royal Arcanum 453 Order of Canadian Home Circles 455 ERRATA. Page 20, line 17, for • is ' read ' are ' ; page 28, line 14. for • corporation ' read 'corporations'; page 49, line 3, for 'amount' read 'account'; page 70, line 17, after ' R. S. O. 1887,' insert ' c. 1G7 ' ; page 107, line IG, after 'II. S. C insert 'c.'; page 190, line 3, for ' c. 1G2,' read ' c. 167' ; page 200, line 29, for ' section 39 ' read ♦ section 38 ' ; page 212, line 20, for ' reasonable or proper ' read ' reasdhable and proper' ; page 237, line 18, for ' Brown ' read ' Benson ' ; page 239, line G, for ' Md.' read ' Ind.' ; page 245, line 9, for ' Md.' read ' Ind.' ; line 14 for • 44 Q. B.' read '44 U. C. Q. B.' ; page 259, line 32, for ' Md.' read ' Ind.' ; p^ge 277, line 3, for ' section 4 of the said Act is ' read ' sections 3 and 4 of the said Act are'; page 292, Una 23, for ' Md.' read 'Ind.'; line 27, for '36' read ' 3G8 ' ; page 328. line IG, for ' 28 Gr.' read ' 25 Gr.' ; page 337. line 18, for * 55 (9) ' read ' 56 (9) ' ; page 371, line 7, for ' 35 ' read ' 133.' poration ' account'; ', line 16, • c. 167 ' ; i, Jine 20, 237, line d • Ind.' ; read ' 44 7, line 3, said Act 36' read ae 18, for TABLE OF CASES. L TABLE OF CASES. Tlie number follow inn fl"" colon deno'es tlw pane of tJiia volunit' on irliicli the cage in cited ; e.ij. " ^tiia Co. v. Davey, etc. : '2io.'' A. \jEtna Co. v. Dave>', 123 U. S. 789: 24.5. I ilOtna Co. V. Demiiif.', 123 Iiul. 384 : 245. jil'Ituft Co. V. France, 01 U. S. 510, 94 U. S.r)V,l: 243.259. lilltna Life Ins. Co. v. Haixna, 20 Ins. '..J. 977: 304. [Agne,- ". A.O. U. W., 17 Mo. App. 254: 291, JJ8. lAlkiiis V. Jupe, L. R. 2 C. P. D. 375: lii, 72, 2()4. [American Ins. Co. v. Pieul, S. C. Pa. 9 Penn. 520 : 230. ^American INIut. Aid Asso. v. Bronj^er, (1890) 11 Ky. Law Rep. 902: 241, 243. |American Mut., etc. v, Helburn, 2 S. W. Rep. 495 : 299. [American Order of Scottish Clans v. Merrill e( o. v. Wilder,. (1HH9) Kan. S. C. 19 Ins. L. J. 23.'>: 109, 165. Dwif^ht v. Germania Co., 103 N. Y. 341 : 244. Dwjer V. Edie, Park 639: 259. E. Edin«ton v. iEtna Co., 77 N. Y. 564,. .572, 100 N. Y. 5.36 : 244. Edin«ton v. Mutual Co., 67 N. Y. 185 : 243. Elkhart Mutual Asso. v. Ilouyhton, 103 Ind.286: 2.59. Ellicott v. United States Ins. Co., 8 Gill* Johns 166: 41. Elliott v. Bussell, 19 O. R. 413 : 370. Employers' Liability Ass. Corp. v.. Employers' Liability Ine. Co., (1890). ION. Y. Supp. 845: 192. Endowment A Benevolent Asso. v. State, 35 Kan. 2.58 : 59. Epstein v. Mutual Aid and Ben,, Asso.,. 28 La. Ann. 938: 300. Evans v. Bignold, L. R. 4 Q. B. 622 : 257. Everett v. Desborough, 5 Bing. 503 : 243. Exchange Bank v. Newell, 19 C. L. J. 253: 349. Eyrev. Glover, 16 East 218: 43. F. Farrie v. Supreme Council, 15 N. Y. St.. Rep. 155 : 290. Fidelity Mut. Life Asso. of Philadelphia. v. Ficklin, et al., 20 Ins. L. J. 534 i 243. XVI Insurance CorponitionH Act, Field V. Tho Court Tfopn Lod>,'c of A. (). v.. 20 (ir. 4(i7: M)W. Fire Iiih. ('oinpiiiiioH v. Fulriitli, 77 Al«.. '20: :m;j. Fraiikiiii (Kiro) Co. v. Martin, 40 N. Liiw MH, r.7H: '28'). Franklin Fire hiH. ('o. v. Up de Qraff, KanHuni, HH.'i : 2 1(). FrftHor V. IMkimux Mtit. Ijifo Ins. Co., (i:{ ll.(!. U. .J'22: H71. Freeman v. Travelers' Co., 141 MauH. r)72 : 272 Frev V. Mntual Inp. Co., 43 U. C. K. 102: :mi Fuller, et id. v. Metropolitan Inn. Co , I't (il., 11. K. C. C, IHH'.J, 137 Fed. Uep. 1(;3 : r,Vt. G. Gaif^o V. Grand Lodge, 15 N. Y. St. Rep. •i:>r, : :io2. Gallnaitli v. Arlinj^ton Mut., 12 Bush. (Ky.) 2;»: 212. Garretson v. Kqnitablo Mutual, etc., 38 N. W. Uep. 127: 301. Gellatly v. Mut. Hen., etc , G N. W. Rep. ()27: 2!»1. Genenee Mut. Ins. Co. v. Westman, 8 U. C. Q. B. 4H7 : 15(5. German Inn. Co. v. Ward, 1)0 111. r>50 : 313. Gill V Canada F. & M. Ina. Co., 1 O. R. 341 : 37"). Glover v. Giles, L. R. 18 Ch. D. 173 : 134. Godsall V. Boldero, 9 East. 72 : 3(). Goldbanm v. Blum, 15 S. W. Rep. 5G4 : 2('.l. Good V. Elliott, 3 T. R. G!)3 • 257. Goring v. London M. & F. Ins. Co., 11 O. R. 82 : XXX. Gouchur V. North Western Traveling Men's Asso., 20 Fed. Rep. S'.IG: 241. Goninlock v. Man. A Merchants Mut. Firo, 43 II. C. R. 5G3 : 237. Goulston V Royal, 1 F. & F. 27: 43. Governors, etc. v. Am. Art Union, 7 N. Y. 228 : 88. 9G, 123. Grand Lodge A. O. U. W. v. Brand, 46 N. W. Rep. 95 : 298. Grattan v. Metropolitan Co., 80 N. Y. 281, 92 N. Y. 274, 283 : 239, 244, 313. Grattan v, National Co., 15 Hun. 74: 259. . Heller v. Crawford. 37 Iiid. 279: 72. Helping Hand Marriage Asso., »•, 15 IMiil. Rep G44: 5,-,. Heiidriks v. Montagu, L. R. 17 Ch. D. 839: 190. Hermiin v. Jeuchner, L. R. 15 Q. B. D. 5(il: 72. Ilesinger v. Home Ben. Asso., 43 N. W. Rep. 481 : 307. Higf^ius V. Pluenix Mut. Co., 74 N. Y.G: 243. Hill V. Merchants, etc., Ins. Co., 28 Gr. 5G1 : Iviii. Hobbs V. Iowa Mut. Ben. Asso., 20 Ins. L. J. 434 : 1G7. Hodge V. Reg., L. R. 9 App. Cas. 133: 202. Hodson V. The Observer Life A. Co., 8 E.A- B. 40: 257. HoUister v. Quincy Ins. Co., 118 Mass. 478 : 293. Home Mut. Asso. v. Seager, 128 Pa. St. 533: 314. Home Mutual Fire Ins. Co. v. Garfield, (1871) 5 Bennett, 370: 45. Hopkins v. Provincial Ins. Co., 18 C. P. 74: 240. Hooper v. Accidental Death Ins. Co., 5 H. A N. 557: 41. Howard v. Refuge Friendly Society, 54 L. T. R. G44 : lii. Howe Machine Co. v. Walker, 35 U. C. R. 37: xxvi. Huckman v. Fernie, 3 M. A W. 505 : 242. Humphreys v. National Ben. Asso., 20 Atl. Rep. 1047 : 230. Tdhir of C(f.ses. xvu 121, r, A. H. IIoK'rtli, HC 111. C. 7*24: xxxix. . K. of II., 24 Dtl. ) .-JO IllH. li.J. , L .!{. 10 Ch. Mutual Ik'ii. {(!!». .(71: :«<);■». ties U. Co., I Life Ass. Co., i. 678: 42,257. il. 2711 : 72. I AsHo., re, l'> R. 17 Cli. I). R. 15 g. li. D. SHC, 4:} N. W. ,, 7JN. Y.C: Co., 28 Gr. Asao., 20 Ins. )]■>. Cas. WA: Afo A. Co., 8 |o., 118 Mass. 128 Pa. St. V. Garfield, Icio., 18 C. P. |i Ins. Co., 5 Society, 54 ,35U.C.R. kV.505: 242, In. Asso., 20 Hutc-hcrnft's Kxi-cntoi'H v. TrnvL'Nrs III". <'i). of Hiutfoiil, (Ky. C. of .\|)piiil«, I'^HS) IM Ijih. Law Jour.. ;ii:i. >: Kv. ;«iH): 2t.7. Hnlton \. Wiitcrlno Co., 1 F. iV F. 73.'> : 213. I. lu^.'ers()ll v. Kni^^lits of tioldfu Uults iC. H. C. C.) 21 IiiH. L. J. 27il: 272. Iiit^riun V. Sui)n'ine Council, UN. Y. St. Hip. f,(H»; ;U»2. 1( \va Stiite Mut. Ins. Co. v. Prosst-r, 11 lowrt 11'): 2m7. Irwin V. Sprinv'fiL'ld, etc., Ins. Co., 24 Mo. Aj.p. UV, M'l. lr.itt V. Uiiilwav I'asscn^'er Co,, L. K. 22 (.>. n. 1). ."101: 270. J. ■IttlrifH V. I'nion Mutual Co., 1 Fed. Hep. 4:.0: 2i:.. •lolmson V. Maine iV N. B. Ins. Co., 20 Ins. L. .). lOHO: 41. 'lones V. Scottish Accident Ins. Co., L. R. 17 Q. 13. D. 421 ; r.8. ■Ifiiu's V. SJHMoii, •') Gray 2ms : ;^01. .lud.l V. Kulton, 10 liarb. 117 : 312. E. Kurclmer v. Supreme Lodj^e, 137 Mass. 3f,8: 2!I2. Keefe v. Ward, 18 C. L. T. Itlt5 : 34'.t. Keiituc'kv Mutual Security Fund Co. y. Tun'tr. l".t Ins. L J ^)<).") : 30<). K -nvon v. KMij.!hts Templar Asso., 122 N. Y. 247: 23(5, 244. luuyon y. Mutual Aid Asso., 11) Ins. L. J. 1020 : 2iHi. r IT V. Minnesota j\Iut. Ben. Asso., 18 Ins. L. J. 040 : 307. Kevstone Mut. Ben. Asso. y. Jones, (IH'JO) 20 Atl. Rep. ll>o: 238. Keystone Mut. Ben. Asso.y. Norris, 115 Pa. 44t; : xliii. Kmc; V. Oriental Hotel Co., L. R. 5 Ch. App. 420: 337. Klein v. Union, 3 O. R. 234 : 236, 240, 245, 374. Knickerbocker Co. v. Foley, 105 U. 8. 350: 245. Knight V. Supreme Council of C. F., 6 N. Y-. Suppl. 427 : 299. H.I.C.A.. — b. Kni>,'lits and Ladies of Honrr y. Burke, 20 Ins. L. J. 1(151 : lii, 2.'litM of Honor v. Wickser, 12 S. K. Rep. 175: 21(7. Koni y Mutual Ash. Soc, f. Cranch. l'J2 : 2H7. Kreh v Moses, .\pril 17, 18'.»2 : 3»j3. L. Laidlaw y. Liverpool and London, 13 Gr. 377 : 240 La Manna y. Natiomil Security Life and Atrident Ci... (N. Y. S. C") 32 N. Y. St. Rep. 317 : :^05. Luniphere y. A. O. V. \V.. J7 .Mich. 429: 21MK Liunpkin y. Unt. M. iV F. Ins. Co.. 12 r. C. R. 5sl: 312. Law y. Tile London ludisixitablo L. I. Co., 1 K. A- J. 223; 25h. L wler V. Muri)hy, et nL, (Conn. S. C.) s Law. Rep. Aim. 113 : 305. Lawrence y. Accidental Co., L. R. 7 (.). B. I). 2ir) : 2«;7, Lazensky v. Supreme Lod^e K. of H.. 3 N.'Y. Suppl. 52: 2!»r,. Lea y. American, etc.. Canal, 3 Abb. Pr N. S. 10: 325. Leadbitter y. .Ktna Ins. Co., 13 Me. 2(i5: 313. Leah, re, in Chambers, Jan. 21, 181*2: 3»;3. Leedh Estate Co. y. Shepherd, L. R. 3«) Ch. I). 737: 20'.l. Lemon y. Phoni.v Mutual, 38 Conn. 294 : 2t)l. Lender's Executors y. Ins. Co., 4 .McCra. 140: 287. Leonard v. Lebanon Co. Mut., 3 W. Notes of Cases. .527 : 21)4. Lewis V. Pha?nix Mutual, 39 Conn 100: lii, 2(50. Liberty Hall Asso. y. Housatonic Co.,6 Gray, 185 : 23«J. Little y. Phoonix Ins. Co., 123 Mass. 380 : 313. Liyerpool, etc. v. Wyld, 1 S. C. R. 604 237. Livinf^s le v. The Western Ass. Co., (1868), 14 Gr. 461: 33. Lloyd, etc., re, L. R. 6 Ch. D. 339: 337. London and Provincial Law Ass. Soc., The V. The London and Provincial Joint Stock, etc., 17 L. J. Ch. 87 N. S.: 190. xvni In,snrancf. Ctn'jitnativiis Act. Lundoii AmiiirHiicu v. MhiihoI, L. U 11 Ch. I). 'M\&: aafl, '23'J. 211. 248. London Ahh. Co., Tho v. The Londcjii and WcHtniiiiHtur Iuh. CoriHinition, '.) .lurUtN. 8. MIH: 1!»0. LoJidon Life Insurance Co. v. Wri>{ht. 2 8. C. U.4t;«; Hi. Looniii V. ]Li\.\!\o Co., •'» Gray, (Mahh.) 3K7 : 2(>y. 2('.f.. Lothrop V. Gruonllfld, etc., InH. Co., <» Alltn (MaHH.) H2 : HOI. Lowry V. liuurdiou, 2 Don^. 4h((. Ivii. 7'i. Luo«ua V. Crawford, 2 New Hup. HOI : 41. Lycoming Fire Inn Co. v. Wri^lit, S6 Vt. 52r): 72. Lynch v Dal/cll, {172'.)) 1 liro. P. C. 431 : xxxvii. Lynn, re, Lynn v. The Toronto Cen. Trusts Co., 20 O. U. 475 : 8«2, .SCI. Lyon V. Stadaconnu. 44 U. (;. U 472 ; 237, 240. M. Macdonald ' Law Union Ins. Co , L.R. •I Q. B. .^32: 234. Mace V. Provident Life Ins. Assu ,7H.E. Kep.U74: 244. Mair v. Kuilway Passenger (Jo., 37 L. T. R. 3r>fi : 271. Malloch \. I'lunkett. 1 Chy. Ch. 3H1 : 24'.». Mallory v. Travellers' Co., 47 N. Y. 52 ; 2 Ins. L. J. H3il: 2()1, 270, Mandego v. Mutual Life Asso . lU Ins. L. J. «)«)0 : 2\)b. Manson v. Grand Lod^je, etc , Iti N. W. Kep. :V.».'> : 2<,»7. 302. Marck v. Supreme Lodge, etc., 2',> Fed. Hep. H'.H'. : 2<>7. Martin v. Travellers' Co., 1 F. A F. 505 : 270. Marvin v. Universal Life, etc.. 85 N. Y. 27H: 2'.«5. Murx v. Travellers' Ina. Co., 18 Ins. L. J. 727: 271. Masons Ben. Society v. Winthrop, 85 111. 537, 542 : 242'. Massachusetts Co. v. Eslielman, 30 Ohio St. (547 : 238. Masters v. Lefevre : 248. Matt v. Roman Catholic, etc.. Soc, 30 N. W. Hep. 79U: 131. May V. Standard, 5 A. H. (522 : 273. Meacham v. N. Y. State Mutual, 120 N. Y. 237 : 245. Meitglit-i \. .i:tna hiH. Co., 20 I' C.«^.li. (.07, II U. C. C. P. 32H: H.l. Mearns v. A. O. U. W.i 3(..'.. Meiklv V Casrielinan. 1 Chv. Ch. 2'.>2 : 34l». MelliHli, it III., V. The Hhirliv ami Free- inantlf BoanI of lUult'li. L. H. 1)5 i). B. I). 14(5: 2s0. Mercantiu' Iuh. Co. v Ilolthaus. 43 Midi. 423; 313. MercluuitH Bank v. Mouteith. )(/ 1' \\. 5HH: 3(57. Metropolitan Liff Ins. Co. v. Heiupsey, ■'0 Ins. L. J. .'.47; I'.Ht. MetrnjM.litan Saftty Fimd .Vssb. v. Windover. 20 liis L. J. lot. 4 : 305. Millar v. PIumux Mutual (>'o., 107 N. Y 21(2, 301 : 23(5. Mdlard v. Supreme Council American LeKiou of Honor, 22 Pac. Hep. H(i4 : 303. Miller v. Confederation Life, 11 (). H. ; 120, U A. H. 21^', 14 S.C. H. 3.50; 242. I Miller v. Mutual Benetit Company. 31 Iowa 21(5: 237. Millers' National Ina. Co. v. Kinueard, 20 Ins. L. J.: 25(5. Mingeaud v. Packer, 21 O. H 2(57, n'e now ri' Catneron, 21 O. H. (534: 01, 27(5, 3(52, 3(54. Mitchell V. Union Co., 45 Me. 104: 25'.», 2(50, 2(5(.. Mont^jomery v. Brown, 2 L. J. N. S. 72: 311. Moore v. Citizens Fire Ina. Co., 14 A. H. 587 : 23i(, 240. Moore v. The ('onnectirut Mut. Life Ins. Co., (5 S C. H. at 007 : 304. ]M()rt;an v. Pobrer, 3 Bing. N. C. 457 : 257. Morrison v. Muspratt. 4 Binj^. (50 : 243. Morrison v. Wisconsin Oddfellows' Asso, 5i» Wis. 1(52: 242. Morton v. Hurt, 1<» Ins. L. J. 347 : 203. Mulroy v. Knights of Honor, 28 Mo. App, 4(53: 303. IVIurrav v. Home Benetit Life Asso., 20 Ins. L. J. '.tOo: 204. Mutual Accident Ins. Asso. v. Barry. 131 U. S. 100, 121 : 40, 2(50. Mutual Aid Asso. for Unmarried Per- sons, le, 15 Phil. Reports, 025: 55. i Mutual Aid Society v. White, 100 Pa. St. I 12 : 245. Mutual Ben. Asso. v. Hoyt, (1881) 10 1 Ins. L. J. (52(5, 4(5 Mich. 473 : 132. ' Mut. Fire Ins. Co. of Co. Wellington v Frey, 5 S. G. R. 82 : 228,312. T((hlf r>/" Cast's. XIX Miitiml Iiin. ('•>. V Ho«>{lit.)ii. <• Gray. 77: 'I'.nt. Miitiiftl rrotectioii liifo Iih.(>). v. Lowi y, H| I'u St. VA : 'i'.M Miitiiitl HiHt-rvi' KuikI I.ifu Ahho. v. HkimImi, m liiH. L. .1. iliM'. -20H:'-i7U. McCiutXH Appeul, 17 Weekly NotuH of CiiM- (Am.) IH'2, iH't. McCollum V. N. Y. Mutual (D., •",-, Hun. IM: '244. McCniint'll V. Iowa IVIut. Aid Ahho . 7*.» Idwii 7;')7 : 'Mi. McCorkle V Texan Heiievolciit Ahh. McEllieran v. The London Maaonic Mat. Ben. Aaso.. 11 V. K. IHI : :W.). McDonrtld, AnMH**. t!t<^- v. Ho.-ih Lewin, •i'.i lluu. H7 : •>H7. MrGiincliv v. Fidelity iV ('asuulty, 1h Ins. L.J. 12H: iT-i. Mc(Jurk V. Metropolitan Co., 50 Conn. r>-2x. -244. McQueen v. PlKunix. 4 S. C. R. (irtO: 237, 2 K». McSuinev v. Royal Kxcluinge, (1840) 14 (,) B.'t'ac, : 43. N. Niitional Benefit Aaso. v. Grauman, 107 lud. 2HH; 270. National Btn. Asso. v. Jackson, 114 111. 5.H:5: 271. Nauyhter v. Ottawa Ins. ("o, 43 U. C. R. 121: 237, 240, 245. Noil! V. Travellers' Co., 12 S. C. R. 55 : 271. New Era Life Asso. v. Rossiter, 19 Atl. Rep. 140 : 288. New Era Life Asso. v. Weigle, 11) Ins. L.J. H2: 288. New Jersey Mut. Co. v. Baker, !)4 U. S. ♦ilO: 239.' New York Life Ium Co. v. Ptdavan, 'i Uennelt 20: 21«> New York Lif» Ins. Co. v. Stylea, (1HM',») L. H. It App. Can. at 4U0 : <.)t. I'M), 13H. Newman v. Covenant Mut. Akho., Hi lowii .'»<>: 237. NichulU V Fayette Mutual, t Allen (Mass.): '2:W. Nortli .\rnt*ricHii Co V. Hurroui^hH,(l871) <1',» I'a. ht, 13: .H'.l,270. Northampton, etc., Iuh. Co. v. Stewart, 311 N J.L. |H(i: 300. Numri
  • 0 : 72. Parke v. Welch. 33 111, App. 1h8 : 2.59. Parsons v. The Queen, L R.7 App. Cas. 9(> : xxvi. 32, 237, 273. Patterson v, Powell, 9 Bin<,'. 320 : 72, 250. Parsons v. Citizens Ins. Co , 43 U. C. R. 271, L. R. 7 App. Cases 90: xxvi, 228, 240, 245, 374. Palil V. Virginia, 8 Wall. 108 : xxviii. Paxton V. Dryden, 6 P. R. h3 : 349. Payne v. Mutual Relief Hociety, N. Y. St. Rep. 305 : 313. People V. Benevolent Societv, 3 Hun. 301: 304. Peopk V. Medical Societv, 24 Barb 570: 304. People V. MiUual Life, 92 N. Y. 105: 290 People V. Walker. 17 N. Y. 502: 320. People, e.v >\'l. v. Fairman, 92 N. Y. 050 ; 109, 105. People, t'.vn'l.. Meyers v. Masonic Guild, etc.. Mutual Ben. Asso., N. Y. C. A., 18ill, 20 Ins. L. J. 858 : 28M, 300. People, ".f )•('/. . McQuien v. Theatrical Mechanical Asso., (1890) 8 N. Y. Suppl. 078 . 290. Peoria Sugar Refining Co. v. Canada Fire and Marine Ins, Co., 12 A. R. 418: 273. I'eppit V. North British and Mercantile, 1 Russ. iV: Geld. (Nov. Sc.) 219 : 313. Perry v. Newcastle District M. F. Ins. Co.. 8 U.C. R. 303: 72. Phelan v. North Western Mut. Life Ins. Co.. 20 North East. Rep. 827 : 2:»2. Phoenix Co. v. Roddin, 120 U. S. 183 : 230. Piedritskv v. Supreme Lodge Knights of Honor. (1889) 43 N. W\ Rep 373 : 238, 244. Pierce v. Equitable Life Ass. Society, (1888) S. J. C. Mass., 18 Ins. L. J. 110: 50. Pim v. Reid. M. & G. 1 : 240. Portland v. Topham, L. R. 11 H. of L. 54: 304. Pound Sons, etc., re, L. R. 42 Ch. D. 412: 337. Pritchard v. Standard Life Asso., 7 0. R. 188: 808. Provident Co. v. Martin, 32 Md. 310: 271. Q. Queen, The, v. The Registrar of Friendly Societies, L. R. 7 Q. B. 741 : 190. Quinlan v. The Union Fire Ins. Co., 8 A. R. 870 : 238. R. Ravvis V. American Mutual Co., 27 N. Y. 282: 231). Reddick v. Saugoen, 15 A. R. 303 : 240, 374. R. V. Lowe, 15 Cox 280 : IKO. R. V. The Eastern Archipelago Co.. 1 E. A- B. 310, 2 E. cV B. 850. and 4 DeG. M. A- G. 199: 325. Reg. V Stapleton, 21 O R. 079 : Iv. 14, 30, 84, 202, Regina v. Wriglit, 14 O. R. 00s : 204. Reynolds v. E(iuitable Accident Asso., ' 17 N. Y. St. Rep, 337: 271, Reynolds v. The Commercial Fire Ins. Co,, N. Y. C. A., 1S73, 2 Ins. L, J 03: 33. Rice V. Provincial, 7 U. C. C. P. 548: 312. Richardson v. Home Ins. Co., 21 I', C. C. P. 291: liii. Roebuck v. Hamilton, Cowp. 737 : 250. Ronald v. Mutual Reserve Fund Life Asso., 18 Ins. L. J. 733 : 295. Robertson v. French, 4 P^ast. 130 : 32. Rosenberger v. Washington Mut.. etc, 87 Pa. State 207 : 131. Roth V. Stephenson, Ins. Gazette. Aug. 1,1800: 247. Ruse V. Mut, Pen. Life Ins. Co , C. of A, N. Y. 1801, 23 N. Y. oKi, 1 Bigelow 472 : xxxvii. Russol \. DeGrand, 15 Mass. 35: 72, s. Sadlers' Co. v, Badceck, 2 Atk. 554 : xxxvii. Samo V. Gore District Mut., 1 A. R. ,345, 2 S. C. R, 411: 210, 245, 374, Sauer v. Sampson Lodge, 102 Ind. 202 303. Sawyer, et til. v. The Equitable Accident Ins. Co., U. S. C. C , 1890, 19 Ins. L. J. 711, Ai Fed. Rep. 30: 31, 239, Schmidt, re, N. Y. S. C, 1890, 10 N. Y. Suppl. 583: 109, 105. Schneider v. Provident Co., 24 Wis. 28 : 271. Schonlield.ct al. v. Turner, 12 S. W. Rep. (;20: 202. Scott v. Dickson, 108 Pa. St. 0: 201. Scott, et III. v. Scott, 20 O. R, 313 : 302 304. Shay v. National Ben. Society, 7 N. Y. Suppl. 287: 294. Shaffer v. Travelers' Ins. Co., 10 Ins. L.J. 285: 271. i ^'1^ Table of Cases. XXI ()7U: Iv. 14, irazette. Auc. Sliannon v. Hastings Mut., 2 S. C. R. 8<)4: 287. Shaw V. St. Lawrence Co., 11 U. C 11. 78: 240. Shields v. Great Northern Ry. Co., 7 .Jur. N.S. 081: tH. Shilling V. The Accidental Death Ins. Co., 1 F. cV F. 11(5, 2 H. cV N. 42 : 258, 2(18 Siebert v. Chosen Friends, 23 Mo. App. 2(;S: 2'.tl. Simmons v. The Svracuse, etc., Society, N. Y. S. C. 92 N. Y. St. Rep. 428: 81J4. Sinclair v Canadian Mutual, 40 U. C. R, 2U(), 212: 281), 287. Sinclair v. ^laritime Passengers' Co., 8 E. A- B. 478: 270. Sin«_'leton v. St. Louis Mutual, t'lf) Mo. (',8: 2ti(), 201. Sly V. (Jitawa Agricultural Ins. Co., 2!) I'. C.C. P. .557: 288.240. Smith V. Citv of TiOndon Ins. Co., 14 A. R. 8-2s; 15 S. C. R. C.'.i : 875. Suvder v. Travelers' Co., 7 Ins. L. J. 28: " 270. Somerville v. Joyce. 1 Chy. Ch. 207 : 34'.». Soutlicombe v. Merriam, C. it M. 280: 24">. Souder V. Home Friendly Society of Baltimore, 20 Atl. Rep. 187 : 262. Sowdtn V. The Standard Fire Ins. Co., 5 A. R. 2U0 : 237. Stadler, . 25.'): 345. Stone v. U. S. Casualty Co., 84 N. J. Law 371: 271. Sun Fire v. Wright. 1 A.^^- E. i;21 : 43. Supreme Commanderv of tlie Knights of the Golden I'ule v. Barrett. 12 Ky. Law Rep. 94 : 307. Supreme Lodge A. O. V. W. v. Zalk, 111, App. Ct. 10 Legal Adviser 84 : 804. Supreme Lodge, etc. y. Abbott, ••^2 Ind. I : 298. Supreme Lodge Knights of Honor v. .Johnson, 78 Ind. 110: 292 Supreme Sitting Order of the Iron Hall V. Steen. 22 N. II. Rep. 180: 318. Swett V. Relief Society. 78 Me. 541. 243. Swift V. Provincial Prov. Institution, (1890) 17 A. R. 00 : 90. 1)2, 117. 119, 120. 274. 301. T. Taylor v. .Etna Life Ins. Co., 18 Cirav. 434: 812. Thacker v. Key, L. R. 8 Eq. 414 : 804. Thames Haven Dock Co. v. Ross, 4 Man. cV Gr. 559 : 139. Thin, re, 10 P. R. 490 : 300, 3i;9. Thomson v. Weems, L. R 9 App. Cas. 571 : 241, 244. Tidswell v. Ankerstein, Peake 151: 4;!, 258. Timavenis v. Union Mut. L. Iiis. Cn., 21 Fed. Rep. 223 : 313. Titus y. Glen Falls Ins. Co.. si N. Y. 410: 818. Tobin V. Western Mut. Aid Society, 19 Ins. L J. 849: 294. Toronto General Trusts Co. v. Sewell, 17 O. R. 442 : 8(J3. Travelers' Co. and Jones, 80 Ga. 541 : 271. XXll Insurance Corporations Act. True V. Bankers' Life A8so.,20 Ins L. J. 197: a02. Tucker v. Mutual Benefit ('o., 50 Hun. (JO : -iiin, 270. Tuttle V. Travelers' Co., 1:^1 Mass. 175 : 271. U. IT. B Mutual Aid Asso. v. McDonald, 122 Pa. St. 824: 261. Uhhnan v. New York Life Ins. Co., (188B) N. Y. C. A., 17 North East. Kep. 30:^ : 50. Ulnch V. National Ins. Co., 42 U. C. R. 141, 4 A. R. 84 : xxvi. Underwood v. Farmers, etc., Ins. Co., 57 N. Y. 500: 2i»5. Union Fire Ins. Co. v. Fitzsimmons, 32 U. C. C. P. 602: lix, 815. Union Fire Ins. Co. v. O'Gara, 4 O. R. •A'A): 315. Union Mutual Co. v. Reif, 36 Ohio St. 51)7 : 245. Union Rubber Co. \. Hibbard, H U C. C. P. 77; 156. Van Houten v. Pine, 38 N. J Eq. 72: 302. Van Valkenburgh v American Popular Co., 70N. Y. 605: 304. Venner v. Sun Life Ins. Co., 1890, 17 S. C.R. 394: 230. Vezina v. New York Life, 5 S. C. R. 30 : xxxvii, 201. Vivar v. Supreme Lodge Knights of Pythias, (1890), 20 Atl. Rep. 30 : 235, 262, 297. Vose V. Eagle Co , 6 Cush. (Mass.) 42 : £37. w. Wainwright v. Bland, 1 M iV W. M : 2s5. Warnockv. Davis, 1881, U. S. S.C, 104 U. S. 779. 11 Ins. L. J. 450 : xhi. Watson V. iEtna Life Ins. Co.. s P. R. 231: 178. Watson V. Mainwaring, 4 Taunt. 763: 242. West V. Sinclair. (10 Jan., l892) : :^45. Wetmore v. Mutual Aid and Ben. .\sso., 23 La. Ann. 770: 300. White V. Agricultural, 22 C. P. 95: 240. White V. Ecjuitable Nuptial Ben. Union, 76 Ala. 251 : 55. Whitley v. Bailey, L. R. 20 Q. B. D : 280. Whitmoro, ct al. v. Supreme Lodge K. and L. of Honor, 13 S. W. R 495: 262. Wicksteed v. Munro, 13 A. R. is*; : .366. Wightman v. Western F. A- M. Ins. Co., 2 Beiuiett 336: 246. Wilder v. Prefei'red Miit. Ace. Asso., (1888) 14 N. Y. State Rep. 365: 238. Wilkins v. The Mutual Reserve Fund Life Asso., (N. Y. S. C, ix«9.) 7 N. Y. Suppl. 589 : 2:^4. 238. Williams v. German Mutual, f.s HI. 387 : 299. Wilson v. Jones, L. R. 2 Ex. 139: hi, 43. Wilson v. Wilson, 7 P. R. 57 : 349. Winspear v. Accident Ins. Co.. L. R. 'i Q. B. D. 42: 267. Worthington v. Curtis, L. R. 1 Ch. D. 419: xxxix, 257. 2.59. 26r,. Y. York County Mutual v. Knijiht. 48 Me. 75: 30L Taunt. 763: INSURAiNCE CORPORATIONS MT, 1892. IXTUODICTORY CHAPTER. ■J'lUSIUCTIOX OF THE PUOVINCE IS IXSl'llAXCK. :iiit.'ht. 4?* Me. 1. The Provincial jurisdiction in insurance ii^ fi^e'juiS part of that exclusive jurisdiction which the British '^"■^'"" North America x\ct devolves upon the Province in matters of property and civil rights: Imp. Act, 80 A' 31, Vic. c. 3, s. 92 (13). In considering TJte Iiis/ir((fice CorporatioriH Act, 1802, whether from a technical or from a constitutional point of view, the Act must, of course, be read and interpreted in the light of prior legislation and of the judicial decisions thereon. •2. During the very first session (1868) of theEariy^^^ Parliament of Canada the question of jurisdiction -urTgdlc^*^ in insurance arose upon a private bill to incorpor- ate the Poyal Canadian Insurance Company. The constitutional doubts as to the competency of the Federal Parliament even to incorporate an insur- ance company were then so strong thaj the promoters were forced to withdraw the bill and bring it before the Ontario Legislature, which tion. XXIV Insurance Corporations Act. Sir Jolin f^^ranted them incorporation by the Act, 31 Vic. c. 58. During the same session, the iirst Insur- ance License Act of the Dominion was introduced. On this measure, as will be seen from the Commons Journal and the debates of the day, the constitutional question was so serious that no less than four different drafts of a measure were sub- mitted by the Ministry. The last of these license bills reached its second reading' in a very thin House, and in the expiring hours oi the session; Rose^^Biii. and, in connnending it to the House on this occasion, the Hon. Mr. (afterw^ards Sir) John Rose, who, as Finance Minister, had the bill in charge, explained that, in deference to the constitutional scruples of the members, he had introduced into the measure a distinct recognition of Provincial jurisdiction in matters of insurance. On the motion for the second reading of the bill, Mr. Mackenzie, as leader of the opposition, moved in amendment, "That in the opinion of this Hoiise, the regulation of insurance companies is a subject properly within the jurisdiction of the Provincial Legislatures;" and he stated that, if there was any matter that peculiarly belonged to the Local Legis- latures, it was the business of insurance. The Hon. Mr. Chauveau, speaking for the -Province of Quebec, also expressed the opinion that the subject of insurance ought in strictness to be remitted to the Local Legislatures. Mr. Blake supported Mr. Mackenzie's amendment, and pointed out that the bill itself recognized the authority of the Provinces to legislate for insurance. Mr. Mac keuzie's amend- ineut. Introduction. XXV 'ovinces 8. This question of jurisdiction first came V'lli.""*^;;^ before the Courts of Ontario in Billington v. Pro- """'"'"y- vinc'ial Insurance Co. (1876), 24 Gr. 290, upon the Act of Ontario, 88 Vic. c. 05, which provided that, in certain eases, the faihu'e to give the proof of loss should not vacate the policy. The defendant company insisted that the Act of the Province was nJird vires, and that, having been incorporated by an Act of Canada, the Ontario Legislature could not pass any Act affecting them. In giving judgment against the insurance company, the Court laid it down that, ''if a company incorporated by a Canadian Act, does business in Ontario on any subject within the powers of the Provincial Legislature, that Legislature may impose what conditions it pleases o)i the operations of the company." The validity of the same statute was auain afiirmed in Dear v. Western Assurance \\\^Ln, Company, (1877), 41 V. C. K. oo8, where the defend- ant company set up that it obtained its power from various Acts of Canada, and that the Local Legislature could not control or regulate any matter connected with the contract which they had entered into. The Court (Harrison, C.J., Mor- rison, J., Wilson, J.), in delivering judgment, said : "It is not an encroachment on the power of the Dominion Parliament. It is a matter relating to property and civil riglits, and also of a local and private nature. There can be no doubt of that." 4. In 1876 the Legislature of Ontario passed the Fire Insurance Policv Act, 39 Vic. c. 24. This enactment (vrhose validity was upheld by every Dear v. ^Vostei- ■Vs.s. Cuy. JuilKiiifnt.- XXVI luHurance Corporatioihs Act. Ulrich V. National Ins. Co. per Harri- son, C.J. Parsons v. Citizens Ins. Coy, Per Bur- iiOD, J. A. tribuuul) ^^ave rise to n number of weighty judicial decisions bearing directly on the question of juris- diction. In Ulrich v. National Insurance Co., 42 U. C. li. lU, affirmed on appeal, 4 A. R. 84, Har- rison, C.J., said: "The National Insurance Co., as a corporation, owes its being to the Legislature of the Dominion. That Legislature, when giving it being, not only gave it perpetual succession, but power to contract for insurance against loss or damage by fire; but the form of the contract, and the rights of the parties thereunder must, we think, depend upon the laws of the country or Province in which the business is done. "In this respect, the defendants are in no better or no worse position than a foreign corpora- tion doing business in the Province of Ontario: Howe Machine Co. v. Walker, 85 U. C. R. 87." The validity of the same Act was again con- tested, and again upheld in Parsons v. Citizens Ins. Co., 48 U. C. R. 2G1; and in Parsons v. Queen Ins. Co, 48 U. C. R. 271; and the decisions of the Queen's Bench were affirmed in each of three successive appeals to the Court of Appeal, the Supreme Court of Canada, and the Imperial Privy Council: Parsons v. Citizens Ins. Co., 4 A. R. 9(5, 4 S. C. R. 215, 7 App. Ca. 96; Parsons v. Queen Ins. Co., 4 A. R. 103, 4 8. C. R. 215, 7 App. Ca. 9(). In the Court of Appeal in Parsons v. Citizens Ins. Co., 4 A. R. 90, the following important principles were laid down by Burton, J.x\., and concurred in by the other Judges. "The only pretence for this ^the contention that the Policy [iifrofJitctioii. XXVll Act was nllid nre.s is bastcl upon the circiuii- staiice that the policy in this case whs granted l)y a (onipany incorporated by the Dominion Parha- nient. That poHcies of insurance, being nieri' contracts of indenuiity against loss by iire, are, like any other personal contracts between parties, governed by the local or Provincial law, can, I assume, admit of no (juestion. Then can it make any difference that one of the contracting pjirties here is a corporation created under a charter granted by the Parliament of the Dominion? " The Parliament of the Dominion has no power to authorize a company of its creation to make contracts in Ontario, except such as the Legislature of that Province may choose to sanction. That Legislature may, if it thinks proper, exclude such corporations from entering into contracts of insur- ance here altogether, or they may exact any security which they may deem reasonable for the performance of the contracts. " The artificial being created by the charter is authorized to make such contracts as may come within its designated purposes, but the Legislature granting the charter can give no privileges to be exercised within any of the Provinces, except with their assent and recognition; and it follow'S as a matter of course, that these may be granted upon such terms and conditions as the Provinces think fit to imj)ose. ''Within their respective limits, each Legisla- ture is supreme and free from any control of the other. • The Dominion Parliament has no more xxviii Insurance Corponitiona Act. power to interfere with, or retaliate contracts of this nature within any of the Provinces, than has the Le«,nslatareof the Province to regulate promis- sory notes or bills of exchan«,^e. The terms upon which insurance business is to be carried on within the Province is a matter coming exclusively within the powers of the Local Legislature, and any legislation on the subject by the Dominion would be nltiut i'ires. All that the Lagislature has done in the case of the present company is to enable it' in its corporate capacity to carry on the business of insurance; but the Local Legislature has the exclusive discretion as to the restrictions under which it shall be carried on within the contiues of the Province." Qut^enlu^s. ^- Ii^ the couipauiou case, Parsons v. Queen Coy. J"'^R- jj^jg^ Qq ^ ^i^Q defendant company, instead of being incorporated under an Act of Canada, was incor- porated under an Act of the Imperial Parliament. When the appeal in this case was before the Court of Appeal, 4 A. E. 108, Moss, C.J. A., delivering the judgment of the Court, applied to the case the language of Field, J., (U. S. Supreme Court), in Paul V. Virginia, 8 Wall. 1G8, where the question arose upon the power of the State of Virginia to provide that no insurance company, not iiicor- porated under the laws of the State, should have power to carry on business within the State with- out license and deposit. As the Federal Congress is invested with the power to regulate commerce with foreign nations and among the several States,, it was contended by the plaintiff, who was the meat of C.A. Introduction. XXIX representative of tlie compaii}- incorporated in another State, that the Act was unconstitutional. Speakinf? of a corporation created by the laws of -r-i«iT-r ' 1 /ml ' • ^ ' e '^ Cites Fiel( anv State, Field, J., said: '' The recognition or itsj, inPaui ' ' , V. Virginia existence even by other States, and the enforce- nieut of its contracts made therein, depend purely upon the comity of these States, a comity which is never extended when the existence of the corporation or the exercise of its powers are pre- judiciiil to their interests or repn,L,'nant to their policy * * * They may exclude the foreign corporation entirely ; they ma}' restrict its business to particular localities, or they may exact such security for the performance of its contracts with their citizens as in their judgment will best promote the public interest." Applying these words to (letiue the jurisdiction of the Province, Moss, C.J. A., proceeded with the judgment of the Court of Appeal '\s follows: " This is the language of aQS'*"^' ., ,, I'l I'i 1 • I us. Coy. tribunal whose high authority upon such questions ^i^fj^^ient is universally recognized. Hence it appears that the power to legislate upon the terms on which insurance companies shall be permitted to deal with their customers in this Province belongs to that bod}' which has irtthority to regulate the incidents of contracts within the Province, and that body beyond dispute is the Local Legislature. Under its power to regulate the legal incidents of contracts to be enforced within its Courts, it can prescribe the terms upon which corporations, either foreign or domestic, shall be permitted to transact insurance within the limits of the Province ; and to such regulations all insurers render themselves XXX In.sarduce Corpori Acf. Pursous V. Citizuiis Ins. Coy. and I'ur kins V. Quooii Ins Judgment of Privy Council. liabk' l)('fore the Provincial ti-il)iinHls. There may be inconveniencos attendant upon the possessicju by the separate Provinces of powers to make totally diverse conditions, and it may tend to impede or prevent the transaction of business by the lar«^'est and most desirabh^ companies of non- Provincial ori^^in; but such considerations cannot alfect the present (juestion, which simply is, upon which Legislature, the JJominion or the Provin- cial, has the British North America Act conferred the power to deal with insurance contracjts." 7. The above judgments were atlirmed on the successive; appeals to the Supreme Court of Canada, 4 S. C. 11. 215, and the Imperial Privy Council, 7 App. Cas. 1)(). By the Privy Council it was expressly held that "property and civil ri<(hts " in section 02 (18) of the British North America Act nuist be taken "in their lar^^est sense." And on the subject of a possible conflict of the Dominion Act with the Provincial jurisdiction over property and civil rights, their Lordships set this instructive case: " Suppose the Dominion Parliament were to incorporate a company, with power, among other things, to purchase and hold lands throughout Canada in mortmain, it would scarcely be con- tended, if such a company were to carry on busi- ness in a Province where a law against holding land in mortmain prevails — each Province having exclu- sive legislative power over property and civil rights in the Province — that it could hold land in that Province in contravention of the Provincial legislation; and, if a company were incorporated Introfha'tioii. XXXI I' IV may issessioii ,1) iiiiike tend to ;iiu'ss l)y of noii- s CilUUOt is, upon Provin- •01 if erred S. .'d oil the f Canada, Council, [\ it was [(^dits" in erica Act And on )oininion jroperty structive t were to ng other roughont be con- on busi- iing land Lig exclu- Hnd civil old land m rovmcia :porated tor the sole purpose of purchasing and hohling land in the l)oiiiinion, it might hap[)en that it could do no business in any portion of it by reason of all the Provinces having passed Mortmain Acts, thou^Ii tlu' corporation would still exist and i)reserve its status as a corporate body." S. Additional decisi(jns upholding the excdiisive jurisdiction of the Province in matters relating- to insurance contractts will be found in J)evhn v. jy'i:-' -^ Western Ass. Co., 1 A. K. "iHl, atlirmed 1 S. C. H 21o: Goring v. London Mutual Fire Inn. Co., 1 1 l::;r'i'V' Uovliii V. (•<)> (). K. 82. In this last c rise [jDlllloll Miittinl atter citiU'! thcKiivi lis decisions of the Privy Council in Parsons v Citizens Ins. Co., and Parsons v. Queen Ins. C o. th !llt 'ded as folh e juagmeiit proceeaea as loliows: "The question is not whether the provisions of •'"'^'^'"'' the Ontario Act override or control the provisions of the Dominion Act or not; but whether the Legislature of the Pro^■illce has or has not exclu- sive jurisdiction over the subject matter. " If it has such exclusive jurisdiction, any pro- visions att'ecting the same subject matter con- tained in the Dominion Act would be simply nugatory, because the Parliament of Canada is excluded from any jurisdiction over the matter. And I think this is unequivocally the effect of the decision of the Privy Council in the cases above cited." lit. ^). The very recent and important Privy Coun-B. otTo cil case of the Bank of Toronto v. Lambe, (1887),Lai)ibe. i'l App. Cas. 575, still further defines the nature and extent of Provincial jurisdiction over insurance XXXll Insinancr Coi'itordfinns Act. Comic I li corponitioiiH. In that case the liaiik of Toronto, the Moicliants l^ank of Canada, an()., and Parsons V. Citizens Ins. Co., 7 App. Cas. ^)(),i and it was found ahsohitely necessary that the hteral meaning of the words should he restricted in order to ailord scope for powers which are f,'iven exclusively to the Provincial Le«^islatures. * ♦ * Then it is su^'^'ested that the Provincial Legislature may lay on taxes so heavy as to crush a hank out of existence, and so nullify the powers of the |])om'u ^ iou; Parliament to erect hanks. But their Lord- ships cannot conceive, when the Imperial Parlia- ment conferred wide powers of self-«^overnment on great countries such as Quehec, it intended to limit them on the speculation that they would use it in an injurious manner. People who are intrusted with the great power of making laws for property and civil rights may be well trusted to levy taxes. There are obvious reasons for confin- ing their power to direct taxation and licenses, because the power of indirect taxation would be felt all over the Dominion. But, whatever power falls within the legitimate ilieaning of classes 2 and 1) :British North America Act, s. 92 (2) (9)i , is in their Lordships' judgment what the Imperial Par- liament intended to give ; and to place a limit on it because the power may be used unwisely, as all powers may, would be an error, and would lead to H.I.C.A. — C c L. a h C xxxiv Insurance Corporations Act. insuperable difficulties in the construction of the Federation Act. * * * jf ^.j-^^y ^^^^ that, on the due construction of the Act, a le^^isla- tive power falls within section 92, it would be quite wrong of them to deny its existence because by some possibility it may be abused, or may limit the range which otherwise would be open to the Dominion Parliament." RELATION OF INSURANCE CORPORATIONS ACT, 1802, TO THE INSURANCE ACT OF CANADA. R. 8.C c 124. Ill 10. Now, if TJie Insurance Act of Canada, R. S. C. c. 124, is read in the light of these decisions, it seems perfectly clear that, in the absence of concurrent legislation on the part of the Province, a considerable number of the provi- sions are of questionable validity. And if TJie 55\.Q.39(0) Insura7ice Corporations Act, 1892, is then read, it is equally evident that it supplies such concurrent legislation. Two or three examples will make this clear. In the case of Parsons v. Queen Ins. Co. and Parsons v. Citizens Ins. Co., the jurisdiction of the Dominion was defended on the ground that the regulation of insurance contracts fell within "trade and commerce." This was rejected by all the judges. Despite the accumulated ad- verse decisions above cited, the Parliament of Canada in 1886 enacted provisions for the regu- lation of life insurance contracts made by mutual or assessment companies. And these provisions now form section 39 of The Insurance Act of Introduction. XXXV Canada, R. S. C. c. 124. Formerly the Dominion jurisdiction was grounded on " trade andconnnerce"; but if, as was held by the courts, the contracts of joint stock insurance companies could not be brought under this head, how can the regulation of contracts made by mutual or assessment com- panies be supported? Article 2471 of the Civil Code of Quebec expressly enacts that ''mutual insurance is not commercial :" L'assurance mutu- elle n'est pas une operation commerciale." The Dominion Insurance x\ct nevertheless undertakes oy section 39 to regulate such insurance; to minutely define the form of the contract; and to define civil rights and remedies under the contract. The invalidit}' of this legislation can hardly be doubted. The provisions contained in the section, however, are beneficial in the public interest; and their validity should, therefore, be placed beyond question. Accordingly section 41 (2) of The In- surance Cor2)orations Act enacts: "(8) Where a corporation licensed or authorized under section 89 of Hie Insurance Act of Canada is registered under this Act, every policy issued and used in Ontario shall conform and be subject to the provisions of the said section; and upon any contravention of the said section, the corporation shall be liable to have its registry under this Act suspended or can- celled." Again, The Insurance Act of Canada, by sections 27 and 28, invalidates conditions in contracts of life insurance unless the conditions are set out in full on the face or back of the policy, and limits avoiding conditions as to untrue statements. XXXVl Insurance Corporations Act. Here again the legislation is so manifestly beyond' the jurisdiction of the Dominion that Mr. Mere- dith, in 1889, introduced a bill covering the same points into the Ontario Legislature; and, with S.^'°" ''^ ^^ some amendments and additions, the bill became law as 52 Vic. c. 32. The provisions of this A^t.S' ^^^ ^^® re-enacted in a more comprehensive form in The Insurance Cor].i orations Act, so far as tO' remove all doubt that may arise as to their appli- cation. ^121 *^". 22 Then, unlicensed persons in the Provinces of Canada are prohibited by The Insurance Act of Canada, section 22, from exercising their civil rights in undertaking contracts of insurance ; and any exercise of such civil rights by an unlicensed person is made punishable by fine and by imprison- ment at hard labour. For any effectual prohibition of this sort the cases above cited make it abun- Act,S.' dently clear that Provincial legislation is neces- sary. The Insurance Corporations Act does, under similar penalties, prohibit persons and unregistered corporations from undertaking insurance contracts, (section 27); but it preserves the right of Dominion licensees by registering their licenses (s. 6). As in the analogeus case of registering deeds of land, the mere registration passes upon no question beyond the existence of the mere instrument. •27, 6, PROVINCIAL DUTIES FLOWING FROM THE JURISDICTION. • / - \. 11. The Constitution, in giving the Province exclusive jurisdiction over insurance contracts, also casts upon the Province the duty of such legisla- Introduction. XXXVll tion and oversight as experience shows to be necessary. Now the experience of all legislatures in the British Empire and the United States most clearly establishes that, in contracts of insurance, it is essential for the state, as matter of public policy, to lay certain statutory restraints upon each of the parties to the contract. A. STATUTORY EESTnAIiSTS UPON THE ASSURED OR THE BENEFICIARY. 12. First, as regards the assured: he must have (or, in life insurance, he must, at all events \vhen entering into the contract, have had) (a) an insur- able interest in the subject insured. The Act, 19^^? George II. c. 87, s. 1 — still in force in Ontario — records the experience of England as to marine in- surance after the old common law restraint of insu]'able interest (h) had given way to unlimited freedom of contract. In the preamble we are told, — "Whereas, it hath been found by experience that the making insurances, interest or no interest, or without further proof of interest than the policy, hath been productive of many pernicious practices, whereby numbers of ships wdth their cargoes have either been fraudulently lost and destroyed or taken, by the enemy in time of war, etc." ((() Ashley v. Ashley, 3 Sim. 149; Vezina v. N. Y. Life Ins. Co., 6 S. C. R. 30 ; Crai^en v. N. A. I:ife (1886), 13 S. C. R. 278. [b) Sadlers' Co. v. Badcock (1743), 2 Atk. 554, per Hardwicke, L.C.; Ruse V. Mutual Benefit Life Ins. Co., Court of Appeals N. Y. (ISOl), 23N.Y. 51G; 1 Bigelow, 472. See also 3 Kent Com. 309. So, in fire insurance, long before the Act of 1774, (14 Geo. III. c. 48) prohibited policies unsupported by insurable interest. Lord Chancellor Kin<,', in the Ilonse of Lords case Lynch v. Dalzall (1729), 4 Bro. P. C. 431, held such contracts to be ag? hist the common law; as did also Lord Chancellor Hardwicke in Sadler^.' Company v. Badcock (1743), 2 Atk. 554. Goo II. 37, B.l. i»-. C z L 5^ ;*i XXXVlll Insurance Corporations Act. 14 Geo. Ill, C. 4», B. 1. Ins. Corp. Act, s. 30. ii III Hii iHi; 13. In 1774, the necessity of a similar statutory restraint upon the assured in all other forms of insurance had hecome patent, as the preamble to The Gamhlinc) Act, 14 George III. c. 48, informs us. Section 1 of that x\ct — which is still in force in Ontario (a), except as now modilied by section 35 of TJie Insurance Corporations Act (see infra) --sets out with this recital: "Whereas it hath been found by experience that the making insur- ances on lives or other events (h) wherein the assured shall have no interest hath introduced a mischievous kind of gaming.'" The section then proceeds to enact "That froin and after the pass- ing of this Act, no insurance shall be made by any person or persons, bodies politic or corporate on the life or lives of any person or persons, or on any other event or events whatsoever, wherein the person or persons for whose use or benelit, or on whose account such policy or policies shall be made, shall have no interest, or by way of gaming or wagering, and that every assurance made contrary to the true intent and meaning thereof shall be null and void to all intents and purposes whatsoever." Here, though the statutory restriction is laid equally upon both parties to the contract, the burden of the prohibition has, in practice, fallen (a) Dowker v. Canada Life Ass. Co., 2i U. C. R. 591 ; Craigen v. N. A. Life Ins. Co. (1886), 13 3. C. R. 278. {h) " Or other erents.'" Though the title of the Act is " Au Act for regulating Insurances upon Lives,'^ the enacting clauees cover all otl;er forms of insurance, e.'ccept marine, which had been deelt with by prior legislation, and is expressly excluded by section i. For the text of this brief but important Act, see notes to section '65 of The Insurance Corpora- tions Act, infra. tutoiy mis of gamble if onus I force section infra) b hath in sar- in the need a n then e pass- by any ■ate on on any [ill the or on made, mg or ntrary e null ever." s laid , the fallen Act for ill otlier I by prior of this \Corpora- Introduct'on. '' xxxix wliolly upon the assured. While, on the one hand, he could not enforce the contract as against the insurer, he could not, on the other hand — though the risk had never attached at all — recover back his preuiiunis, lor he was in pari delicto. See notes to Ins. Corp. Act, ss. 3, 80 (4), infra; but now by s. 85 (4), where the insurance company has know- ingly or V. 'thout sufticient inquiry entered into an unlawful contract of child insurance, the person paying the premiums can recovoi. the same with interest. 14. Accordingly, under the law of England, i^ntil i;j.^-^oni- modified by Tlie Friewlbj Societies Act,* and also under Ontario law prior to The Insurance Corpora- tions Act, 1S92, no parent had, in the absence of actual pecuniary interest, an insurable interest in the life of his child: therefore, mere parental relationship did not support a policy effected by a father upon the life of his minor child (e). 15. Certain insurance companies licensed bySJSf.cein the Dominion of Canada to transact the busi- ness of life insurance had, in direct contravention of the law of Ontario, issued in this Province an immense number of policies to parents upon the lives of their infant children, in which the parents had no insurable interest. One of theoC companies, a very large and active organization, devoted itself * The present provision is contained in 38 & 39 Vic. c. (30, s. 28 ; the 8th sn.b-sectioii relaxes the 14th Geo. III., c. 48, as regards Industrial Insur- ance Companies to the same extent as if they were registered Friendly Societies. See note under paragraph 17, infra. (e) Halford v. Kymer, 10 B. & C. 724; Worthington v. Curtis, L. H. 1 Ch. D. 419 ; Porter on Insurance, p. 40. * . C I xl Insurance Corporations Act. * IndiiL • tiial " Life lusurauce. 'III Hi, in Ontario almost exclusively to such transactions. The total number of such unlawful contracts actu- ally on foot in the Province in February, 1892, was estimated as 15,000. In preparing a bill for the consideration of the Provincial Legislature it became necessarily an important question how the matter was to be dealt with. These policies were issued in professed ignorance of the law. One course therefore that naturally suggested itself was to declare and continue the Act of 1774, 14 Geo. III. c. 48; and, while protecting existing con- traces, to prohibit and penalize further unlaNvful contracts. 16. On the other hand, the remarkable growth of this species of insurance in Ontario, as w^ell as in England (/) and in the United States, appeared to show an at all events present demand on the part of the public; though it must be added that the apparent demand is largely due to artificial forcing by means of house-to-house collection of premiums. Weekly collections of the premium in sums of ten (or other multiple of five) cents is the characteristic feature of this so-called "industrial" insurance. It brii-gs a large accession of ^' new business."* But these weekly demands are apt, after a few payments, (/ ) In En<^land a bill regulating insurancQ on children's lives was brought before the House of Lords in 1890 by Dr. Magee, then Bishop of Peterborough and afterwards Archbishop of York. The bill was sent to a select committee. In the evidence taken on July XGth, Mr. Dewey, manager of the Prudential Life Assurance Company, stated that there were insured upon his books the lives of 2,099,369 children under ten years of age ; and he estimated the total number of such insurances then on foot in England as 4,149,369. Mr. F. H. Taunton, secretary of the Royal Liver Friendly Society, stated in the course of his evidence that bis society had issued 83,433 policies for infants under 12 months old. actions. ts actu- al) 2, was for the cure it tiow the ies were One self was 14 Geo. Qg con- inlaNvful growth ell as in pared to he part hat the brcing niums. of ten j eristic u ranee. "• But ments, lives was Bishop of 'as sent to r. Dewey, hat there under ten es then on the Royal that bis Id. Introduction. xli to irritate the policyholder and lead to lapses. Then if for any reason the insuring company wishes to end the insurance, it is usually sutlicient to instruct the collector to refrain from calling upon the policyholder; for the contract makes it obliga- tory on the policyholder to pay to the company weekly, but the company is under no obligation to provide a collector, or otherwise to facilitate the payment. In such insurance, accordingly, the lapses bear a very large ratio to persistent policies, so that the total volume of industrial insurance taken, or at any given date on foot, would be no safe indication as to the public utility of such insurance. 17. In England, the demand for insurance on children's lives was met by the clumsy as well as arbitrary expedient of exempting from the opera- tion of 14 Geo. III. c. 48, the insurance contracus of registered Friendly Societies and Industrial Insurance Companies. If the requirement ofpj.^,^,^,. pecuniary interest to support life insurance rests uTieSiT' upon a sound and just principle, that principle applies equally to all contracts of the same kind. The 'principle surely does not cease to apply to B. because B. collects its premiums monthly or weekly, instead of quarterly or annually as A. {(j). (n) As to Friendly Societies, see 21 & 22 Vic. c. 101, (Imp.) s. 2. The piesent provision is 38 A 39 Vic. GO, (Imp.) s. 28 (1) ; by sub-section (8) In- dustrial Insurance Companies are given the aamo exemption as Friendly Societies : — (8) " No assurance made, or to be made, by any industrial assurance company, of a sum of money payable on the doatli of a child under the age of ten years, which would be valid if effected with a regis- tered society, shall be invalidated by reason of any provision contained iu the Act of the fourteenth year of Hia late Majesty King George the C. 48. a,: ill It II III ,11 mi. i«i;:: ••HI*' xlii luHurancc Corporations Act. 18. The real ([iiestion was and is, — Does the earlier doctrine of insurable interest require revi- sion in the case of insurances effected by parents (no matter in what societies or companies,) upon the lives of their children? In the United States, some of the ablest jurists have grappled with this question, and a more philosophic conception of what constitutes an insurable interest now prevails. In Warnock v. ])avis (1881), U. S. Supreme Court, 104 U. S. 779, 11 Ins. L. J. 459, Field, J., said: "It is not easy to deiine with precision wdiat will, in all cases, constitute an insurable interest, so as to take the contn^ct out of the class of wager policies. It may be stated generally, however, to be such an interest aiising from the relations of the party obtaining the insurance, either as creditor or surety for the assured, or from the ties of blood or viarridcje to liitn^ as will justif/j a rea- sonable expectation of advantage or benefit from the continuance of Ids life. It is not necessary that the expectation of advantage or benefit should be always capable of pecuniary estimation: for a parent has an insurable interest in the life of his child, and a child in the life of his parent (a) ; a husband in the life of his wife, and a wife in the life of her hi kil cif ail 'Aif. Third, chapter forty-eight, for regulating insurances upon lives and for prohibiting all such insurances except in cases where person insuring shall have an Interest in the life of the persons insured." — The words " which would be valid if effected with a registered society " have the effect of limiting the payments by Industrial Assurance Companies to sums which Friendly Societies by s. 28 (1) are permitted to pay; so that the aggregate iMsuranco moneys payable at the death of a child under five years must not exceed £0, or of a child under ten years, £10. (a) 53 V. c. 39 (Ont.), sees. 4, 5. Bs the 3 revi- aronts ) upon States, th this liou of 'evails. Court, ., said: at will, t, so as wager ever, to jions of her as the ties a rea- om the hat the always nt has child, .isband of her Is and for insuring Ihe worda Ihave the |)anie8 to • ; so that lid under Introduction. liusl)aiid. The natural afft'ctiou in c ises of this kind is more pow(;rful— as operating more etlica- ciously — to protect the life of the assured than any other consideration. Jhit, in all cases, there must bo a reasonal)le ground, founded upon tho relations of the parties to each other, either pecuniary, or of blood or alHnity, to expect some benefit or advantage from the continuance of the life of the assured. Otherwise the contract is a mere wager, by which the party taking is directly interested in the early death of the assiu'ed. Such policies have a tendency to create a desire for tlie event. They are, therefore, independently of any statute on the subject, condemned as being agciinst public policy" (b). 19. Adopting this larger conception of insurable interest, the next question was, Can mere parental relationship (without pecuniary interest in the continuance of the life) be safely relied on without any limitation of the amount insured on the life of the child? That there are real dangers to be guarded against cannot be doubted. The experience of the English burial clubs could furnish more than one illustration (c). From the evidence {!>) So Appl. of Corsjn, 113 Pa. 43S; Keystone Mutual Bjuefit Asso. V. Noi-ris, 115 Pa. 44(j; The Brethren, etc. v. McDonald, 122 Pa. 324. (c) " At Stockport Assizes, — and this too has no refereiiCD to the pre- sent state of trade, being of data prior to that, — a Mother and a Father are arraignel and found guilty of poisoning three of their children to defraud a 'burial society ' of som^ ii3 Ss. due on the death of each child : they are arraigned found guilty; and the oflicial authorities, it is whis- pered, hint that perhaps the case is not solitary, that perhaps you had better not probe farther into that deparoment of things. This is in the autmun of 1811; the crimi itself is of the prtvious year or season. 'Brutal xliii ; fi i :: :5: 5 1 xliv Insurance Corporations Act. 'III taken by the Koyal ('onunissiou on Friciidly So- cieties (Kn«,4aiid) (d) it ap})eare(l that the mortahty aiiioDg chihh-eii under ten years of a^^^e had in- creased to an alarming extent under the temptation hekl out by infant insurance. The recommenda- tions of the Commission led to the enactment of section 28 of the Friendlif Societies Act, 1875, 38 & 39 Vic. c. ()() (Imp.) ; see note under parao^raph 17 supra. This le<,nslati()n was evidently designed to proceed upon the principle of indenuiitij, though tilmof'^ the details were badly wrought out. The aggregate maumuco. ^i^^^ii'ince moiicy payable to the parent on the death of the child was limited to such sum as, roughly averaging one case with another, might be supposed to reimburse the parents for loss of wages in attending on the sick child and for medical and funeral expenses. It is true that English courts. III!' I»L '1)11 • m::' tr- ifi. sava'^'oa, clirtradol Irish,' muttars the idle reader of Newspapers ; hardly lin<4i;fiii,i; ou this incident. Yet it is an incident worth lin^^ering on; tlie depravity, 8:iva<^ory and degraded Irishism bein^ed. A 1 we do to ; and help beat-loved lort Mother ho cries all orld : if he us perhaps now Tom, ■ehni; Jack tee of ways o as well as our own, (exclude the principle of iiuleni- nity from life insurance contracts. But though no proper measure of rights nndcr (in actual laivful contract of life insurance, the principle of indem- nity is a most valuable guide in limiting by statute the maxinnnn amount which, in certain cases of temptation to wrong-doing, can, la a II ij he con- tracted for (dd). In the Select Committee of the i'!.u?.',orf>;. Lords on the Bishop of Peterborough's Children's ' ' '''■'^^' Life Insurance Bill (July 8th, iHiK)) [c), some of the {(Id) Tlie words of the Ganibiinf* Act, 14 Geo. III. c. 48, apparently prohibit all life insurance which is not in the nature of indemnity ; so it was held by Lord Kllenborout^h in Godsall v. Boldero, 9 East. 72 ; but this case was overruled by Dalby v. India and London Life Co., 15 C. R , 18 Jur. 1024, and Law v. London Indisputable Co.. 1 K. and J. 2'2',i, 1 Jur. - N. S. 171). Text-writers and even some courts in the U. S. are disposed to revert to the doctrine of indemnity in Life Insurance. This, however,, would overturn the established tables of premiums, —which are exacted from the assured under the understanding that the whnle »itin named in the policy will, at some time or other, be paid by the insurer on the occurrence of the event insured against. It would further, in large measure destroy the public utility of life insurance as an ascertdined provision for persons dependent on the assured. In a policy of Fire Insurance, — which j« a contract of indemnity, — the sum named in the ordinary contract is a mere limitation of the maximum liability, — the ordinary case being that there is no loss, or that tho loss is only partial, — and the rate of premium is based on this assumption. (e) His bill proposed to enact that no insurance should be granted on the death of a child under five ^ears of age for a greater amount than t'4 • in the aggregate ; children over five and under ten, £6 ; and, beyond that age, boys under fourteen or girls under sixteen years, £S. Section 2 provided that " a society shall not pay on the death of a child, baing a boy under fourteen, or a girl under sixteen years of age, except to the person actually conducting the funeral of the child, and on tho production by that person of a certificate of death given by the registrar of deaths and containing the particulars required by this Act." This " undertaker clause," as it was called, was abandoned by the Bishop himself in re-introducing the Bill in 1891 (House of Lords, January 22nd, 1891). To enforce the provisions respecting the maximum it was provided that the certificate of death shall bear on its face the amount for which the child's life was insured, and that tho registrar should refuse to issue, certificates after the maximum had been reached. xlvi Ifi.sn ranee Citrponifions Act. Evidoiico buftiru Lordu' coiniiiittco r En«^'lisli Jii(l<(('s «(Mve evidiMico. Mr. Justico Day had no (lilliciilty in assenting' to tli(» proposition of the Chairman tliat " thrift was a very f^ood thin«^% hut it may l)o too dearly i)ur('has('(l hy infanti('i(h;"; and achlcd that " it was contrary to piihlic policy that (I j)r()/if nJiouId he ififule on dedth.^^ The evi- dence of Mr. .Iustic(i Wills was to the effect that he would not prohihit child insurance alto,i;etlier ( /'), but ivoidd carefnll// limit tJte anioiuifs insured. The present abuses, he said, were, in a considerable measure, due to the demoralizing practices of the house-to-house collectors. The Bill which Dr. Magee, successively Bishop of Peterborou<,di and Archbishop of York, brou.L,dit forward in the House of Lords in the sessions of 1800 and 1801, was directed a^^ainst the methods of Industrial Insurance Companies, and of Collecting Societies of the type of the Koyal Liver Friendly Society {(j) ; (/) Mrs. Fawcott, tho well-known writer on Political Economy, advocates, in the case of infant children, a return to the old law of 1 i Geo. III. c. 48. On July 2(>th, 181)0, at a public meeting, held in the Ilall of Downiuf^ College, Cambridge, to consider the subject of infant life in- surance, Mrs. Fawcett delivered a long address, and argued that no such insurance should be permitted unless the beneficiary had a pecuniary interest in the life insured. {g) In moving the second reading of his Children's Life Insurance Bill (House of Lords, June ItJth, iS'JO), the Bishop of Peterborough said that, " even if each manager of a collecting society was an archbishop, and every collector a bishop — and he supposed a higher ideal of huiDan perfection could not be conceived by some men — he still thought they were an evil. The agents of the collecting societies, he said, received i;o less a premium than 30 per cent., and so energetic were they that childien were actually insured before they were born, and the sex was afterwards put into the policy. So keen was the competition, that the agents were not too scrupulous as to the character of the parents who insured with them. If a parent or guardian insured a child in two societies, for one penny per week in each, they would at the end of six months make a Introduction. xlvii 36 Day ition of • "1 " t K'i(U» ; policy 'he evi- :;fc that her(/), insured. idenible i of the ieh Dr. i«^^h and ill the id 181)1, idusti'ial ioeieties iety ifj) ; Economy, ,1 law of 11 iu the Hall 'ivnt life in- Imt no such pecuniary Insurance kough said irchbishop, of hun;an [ought they received no [atchildien lafterwardg Igents were Isured with les, for one ihs make a but tho Coiiniiittee on the Hill, after the di'ath of their chjiiriiian, tlic Ar('hl)ish()p of York, made Httlo i)ro^^ress, iind tlie Hill was ahandoiied. Siimiltaneoiisly, the House of Coininons was at work upon the same (piestiou. Oil ^fiiy ii2nd, |||',',"^|^''';^' 181)1, Sir llerhert Maxwell, for the (loveriiiiK ut, moved the second readin/jf of the Jnthisfrial As.su r- ancc Bill. This measure was based on tlu^ reeom- mendations of the Select Committee appointed to in{(uirt' into and report on the operation of section 80 of the Frii'udl/j Societies Act, liSTTj; and his MS proposals ai'fected (-oUecting Societies as well Industrial Insurance Companies. After the C(Mn- mittee to which the l^ill liad been referred had made sonu^ progress, Mr. W. H. Smith, for the (Tovernment, announced, on June 2'2nd, that, hav- ing regard to the intri -acy of the measure, the interests involved, and the period of the session, it had been decided to withdraw the Bill. . 20. In the Imperial Friend! u Societies Act the T^i'"ita- •• ••' tldllS of limitations of insurances upon children's lives are Vhouui' '£ badly wrou<^'ht out as to details. One sum is inadea'conuus the limit for all children dying under five years ; there is another sum for all children dying between five and ten. Now, it is very well knowai that, where tliere is a danger of misusing such insur- ance, the danger constantly diminishesfrom birth up profit, after paying funeral expenses, of £.3 I69. 8d., which sum repre- jented the premium on child murder. The death of an insured infant was marked by a little funeral and a big drink. It was computed that COO children were annually murdered for the sake of the insurance money, and one medical man estimated that in Birmingham elone there we'.e 100 deaths annually to bo attributed to that cause." to ane. xlviii Insurance Corporations Act. Ins. Corp. Act. It;. ■HI.. .«: ''"•: ij;:: iii;::' «•;■;:;: to ten years, when it nearly vanishes. This is per- haps in part because a child after ten years lives more under public observation and protection ; but probably still more because, after ten years, the child becomes helpful, or even becomes a wage- earner, so that a sort of pecuniary interest dis- places the temptation that the burden of the child's support might suggest in earlier years. And there- fore the Insurance Corporations Act (section 35) limi'a the insurance on a child's life to a sum increasing year by year from birth up to ten years ; and after ten years, the restriction cea.es. The sufficiency of these restrictions mast of course be tested by actual results. If, for example, it were found from our vital statistics that the mortality among assured children is abnormally high, that w^ould be a clear indication for further statutory restraints. As such insurance is conducted in Ontario, the children proposed for insurance are usually seen and passed upon by the agent of the industrial insurance company before the risk is accepted; so that, though not reported on by a physician, the lives are, in a restricted sense, selected : the rate of mortality among assured chil- dren should therefore be perceptibly loiuer than the death-rate among children generally. If statistics PeniGiv should show that the present system of insurance amo^L"^' influences the death-rate unfavourably, then the assured '' abuormai. ^^^^^ ^^^^ effcctual remedy lies in restricting insur- ances on children to payments conditioned on the child reaching a stated age; in other words, pure endowment insurance should be substituted for the present life insurance. Here the most profii- (( IS per- s lives n; but rs, the wage- )st dis- child's [ there - lion 35) a sum L years ; 3. The )urse be it were lortality Th, that batutory icted in lice are It of the risk is in by a sense, led chil- Ihan the ,atistics Isurance len the insur- on the Ls, pure jed for profli- Introductiou. gate and worthless of parents would see that their interest lay not in doing away with the child, but in carefully preserving its life. Also in order to restrain waste of the moneys of wage-earners by the lapsing of industrial policies, — at present an evil, and under endowment insurance a larger evil, because a larger waste, — it might further be enacted that, after any policy has been kept on foot for say three years, the policy-holder shall be entitled as of right to a stated equivalent, in the form of a paid-up policy, for the premiums already paid. The Insurance Corjioratiom Act (section dS) does not of course advance beyond the support of ascertained facts and present necessities ; for speculative legislation is always hazardous. — To prevent ignorance of the new provisions being alleged, it is made (section 85 (1)) the duty of corporations insuring the lives of children under ten years of age, to print the statutory restrictions "in conspicuous type upon every circular solicit- ing, and upon every application for, and every instrument of contract of, such insurance." LIFK INSURANCF. EFFECTED BY MINOIiS. 21. Hitherto contractual incapacity has oper- ated as a vexatious restraint upon minors who desired to insure their own lives for the benefit of parents, or of brothers and sisters, dependent upon them for assistance or support. In Ontario, the conditions of society are such that, for many years past, minors of sixteen years and upwards have had H.I.C.A. — d xlix Insuring corpora- tions to ^ive notice of statu- tory res- tnctious. ,»v, sS:: I ill ■i' i 1 Tnsiirance Corporations Act. K. S. O c. 173. s. 10. .■■€1 .«■;: It. lie. II" oSXSi'a the capacity, under certain circumstances, to enter contVo'ts into written contracts of service or work ; and the minor is liable upon the contract, and has the benelit thereof as if he were of legal age : R. S. 0. 1887, c. 142, s. 5. So minors of any age have long had the right, as if they were of full age, of suing in the Division Courts for wages to the amount of ^100: R. S. 0. 1887, c. 51, s. 76; c. 91, s. -lo. Now, it seemed an obvious corollary, where a minor has been given capacity, sui juris, to contract for wages, and to recover his w^ages, that he should have the fiTrther right to protect and invest his wages. A provision in the Benevolent Societies Act of 1874 {h), — now continued as R. S. 0. 1887, c. 172, s. 10, — makes a minor (irrespectively of age), who becomes a member of a Friendly Society," liable to the payment of fees and otherwise, under the rules of the society, as if he were of full age " ; but it gives the minor no rights or remedies as against the society. The theorj^ of the earlier legislation onFriendlj' Societies, — in Ontario as well as in England, — was apparently that the benefits paid by such societies rested in donation, — or, at all events, not in contract ; that they were matter of discretion, not obligation. But this grafting of charity and charitable trusts upon insurance has been fruitful only of confusion and disaster. In any scheme of Provident Societies, where the society is to pay benefits to members out of a fund contributed by members, the scheme, to have any permanence or public utility, must rest upon con- (/() 37 Vic. c. 34, s. 9. enter id the LS the S. 0. e lon^ suing >unt of s. -lo. lere a )ntract lat he invest ocietie.s S. 0. (ctively riendly erwise, of full me dies earlier as well enefits , at all tter of g of ce has •. In e the I fund -e any In con- Minors' rights, remedies and liabili- ties under the Ins. Corp. Act. Introduction. tract ; the payments to members must be matter of right, not of favor or discretion. 2*2. These important matters have been dealt •with in The Insurance Corporations Act. On the •one hand, the contractual incapacity of minors of fifteen years and upwards has been removed, so as to enable the minor to insure his life in any insur- ance company or friendly society for either his own benefit, or for the benefit of his father, mother, brother or sister ; and the minor is competent to surrender such insurance, or to give a valid dis- charge for any benefit to him accruing, or for money payable to him under the contract : section 35 (7). On the other hand, the relation between any member of a benefit society and the society itself is made contractual: section 2 (8) (12). The liabilities of the member under his contract are limited by section 39 ; his rights are defined, and means of enforcing them against the society are provided: sections 32-37, 40-46. B. STATUTORY RESTRAINTS UPON THE INSURER. 23. The second class of statutory restraints relate to the insurer. Long before The Insurance Corporations Act, 1S92, the law of Ontario con- tained various such restraints. The prohibitions contained in the Imperial Statutes, 11 Geo. II. wageriu c. 37, s. 1, (no insurance on ships without insur- uuiawtui able interest), and 14 Geo. III. c. 48, s. 1 (no insurances on lives, or on property other than ships without insurable interest), are still law in this Province, except so far as the latter provision is li 1^ ' i 1^ Hi Insurance Corporations Act. the in surer, .d .«: It. 111... il ■ (f: : moclilied by section 35 of The Insurance Corpora- tions Act (i). Though restrictmg the insurers as well as the assured, the burden of these prohibi- tions — when a contract is held to be unlawful for want of insurable interest — falls practically upon the assured; for he can neither recover upon the policy nor get back his premiums (j). As a general principle, this is right and reasonable. While it is the duty of the insurer to inquire as to Inquiry ^ -'■ fntwest the existence of an insurable interest in the appli- thedutyo ^^j-^|.^ g|.-||^ ^1 ^Yie applicant withholds or misstates the facts, the insurer has ordinarily no other source of information. But this is not now the case as regards the ages of children. In the absence of satisfactory evidence in the family, the ages of the children can now be found from public records. Section 35 (4), therefore, enacts that if the insur- ing corporation wilfully, or without sufficient ■ inquiry, enters into any contract prohibited by the section, the premiums paid under the contract shall be recoverable from the person or persons paying the same, together with legal interest thereon. This provision goes on the principle that the insurer is in this case more in the wrong than the assured; and when, — though the con- tract is illegal, — the parties are thus not in pari (i) See notes (kj and (I) infra. (j I Cope V. Rowlands, 2 M. & W. 149, 157 ; Allkins v. Jupe. 2 C. P. D. 375 ; Wilson v. Jones, L. R. 2 Ex. 150, per Blackburn, J.; Knights and Ladies of Honor v. Burke, 15 S. W. Rep. 45 ; Howard v. Refuge Friendly Society (1886), 54 L. T. R. 644 ; cf. Lewis v. PhcBnix :u.utual Co. (187'^), 3!) Conn. 100. As to the law in the Province of Quebec, see London die Lancashire Co. v Lapierre (1878), 1 Legal News, 506 ; Venner V. Sun Co., 17 S. C. R.394. rpora- ■ers as ohibi- ul for upon )n the As a liable. ? as to appli- jstates source ase as nee of of the fcords. insur- ticient y the ntract rsons terest nciple ^vrong con- pari C.P. D. ihts and Refnge ?.xatnal ^bec, see Venner Introduction. liii siir- ancos uii- -deh'cto, it has always been held that the premium is recoverable: Lowry v. Bourdieu, 2 Doug. 472, l^er I.ord Mansfield: Dowker v. Canada Life, (1865) 24 U. C. R. 591. 24. Then, as to the frame of the contract, US'""" ^ the person for whose use or benefit, •or on whose account the policy is effected, to be inserted therein (k). This is still law in Ontario, except so far as modified by R. S. O. 1887, c. 130, sees. 4 tt seq., and 58 Vic. c. 89, sees. 3et seq: see infra. So as to ships and all kinds of property, 28 Oeo. III. c. 50 — also still in force in Ontario — re- quires that in any insurance of property, there must be inserted in the policy the name or names of one or more of the persons interested, or of consignor or ^consignee of the property, or of the person resident in Great Britain who shall receive the order and effect the policy, or of the person who shall give the order to the agent immediately employed top^^^^^^j^^ effect it (I). In fire insurance— R. S. 0. 1887,Suioned c. 167, s. 114 — and also in live stock insurance — strued. 52 Vic. c. 33, s. 54 — the actual conditions of the contract (to be varied only within narrow (k) Dowker v. Canada Life Ass. Co., 24 U. C. R. 591; Craigen v. N. A. Life Ins. Co. (188C), 13 S. C. R. 278. (I / Under 28 Geo. III. c. .56, it is sufficient to insert in the policy the name or names of one or more, though less than all, of the persons interested ; but li Geo. III. c. i^, apparently required the names of all interested to be so inserted: Ogden v. Montreal Ins. Co., 3 U. C. C. P. 513, where the relation of the three Acts, 19 Geo. II. c. 37, 14 Geo III., c. 48, and 28 Geo. III. c. 56, was stated by Macaulay, C.J. See also Kichardson v. Home Ins. Co., 21 U.C. C. P. li.'l. per Hagarty, C.J. 1--n : '1 III liv Insurance Corporations Act. It j! •■J I ■«a\ <:' 'It,; U: , contracts. limits) care enacted, and tlie principles of construc- tion are laid down. Similarly, as to life insurance, 52 Vie. c. 32, enacted certain conditions and laid down principles of construction. Now, some of Exteusion the principlos contained in these statutes are of of name .,,.. .. p^>°^ipies universal application m insurance, and should govern nob merely particular classes of contracts,, but all contracts of insurance, so that there may be a certain consistency or rather unity in our law.. Accordingly the Insurance Corporations Act, in sections 33, 34 and 35, extends to all insurances on persons and property, certain requirements of form and rules of construction, which, under pre- vious statutes, were of only limited application. The certificates of friendly societies, equally with the policies of insurance companies, are subject to these new provisions — with this single reservation, that in the setting out of the contract upr.n the certificate, a friendly society, instead of printing thereon the actual text of all the conditions, may indicate by particular references those articles or provisions of the constitution, by-laws or rulep. which contain all the material terms of the con- tract not in the instrument of contract itself set out; but the society must, at or prior to the deliv- ery over of such certificate, deliver also to the assured a copy of the constitution, by-laws, and rules therein referred to. RESTRICTIONS AS TO ACCIDENT POLICIES OF INSURANCE. 25. In Accident Insurance the coixditions of some companies' policies have of late become ex- tremely harrassing. [ndeed, under certain of these policies, it is difficult to conceive a claim against Introdnction. Iv istriic- ranoe, id laid me of are of should tracts, e 11] ay ir law. icf, ill ranees ;nts of er pre- sation.. y with jeet to station, -n the finting , may les or rules con- If set deliv- o the and ii'.-i.vci;. Ins of le ex- Ithese ainst. which the company may not within the four cor- ners of the policy find a good technical defrnce. The importance of Accident Insurance has much increased, and the phrase itself has now an extended meaning. From a recent case in our own courts, Eegina v. Stapleton (1802), 21 (3. K. (379,— Gait, C.J., Rose and MacMahon, JJ., — it is clear that a very large proportion of the benefit insur- ance undertaken by Friendly Societies is techni- cally " Accident Insurance." It became therefore of great consequence to define by statute what is an " accident " for purposes of insurance. Section 30 -Acci- (lout " of the Insurance Corporations Act now provides '^e^"«'i- that '' the event insured against shall be deemed to include any bodily injury, either happening without the direct intent of the person injured, or happening as ^"he indirect result of his intentional act, such act not amounting to volun- tary or negligent exposure to unnecessary danger." How many subtle technical defences to claims this provision obviates will be best understood by those familiar with Accident Insurance cases : see anno- tations to Section 30, iiifra. ENFOilCEMEXT OF STATUTORY RESTRAINTS. 20. No matter how salutary or necessary its enactments relating to Insurance, the Province has hitherto had, — except in the case of its own licensees, — iio direct means of ascertaining how far its laws were obeyed, nor, if they were found to be disregarded, had the Province any direct means of enforcing compliance. A case has been noticed M • '. M Insurance Corporations Act. Provincial Ifisurancc Corporations Act orcranization that undertakes tioii of lusurors. •nil ■tJt 'If:* General effect of being un- registered. above (paragraph 15) where certain life insurance companies issued thousands of policies in direct contravention of the law of the Province. To remedy this most anomalous state of things, the requires of every insurance in any form whatsoever to be registered in the Provincial Department of Insurance ; and to renew its registry from year to year. The Province will thus acquire direct official knowledge of every insurance organi- zation operating within the Provincial jurisdiction and undertaking therein contracts over which the Province has exclusive jurisdiction, and over which (as before observed) the Constitution, in giving jurisdiction, makes it the duty of the Province to exercise supervision. As one of the incidents of registration the applicant files his forms of contract as exhibits annexed to his sworn application ; and he must, as may from time to time be required, exhibit his forms of contract then in actual use. The observance or non-observance of Provincial law^ is thus directly ascertainable. AYilful and continued contravention of the Provincial law may be visited with suspension or cancellation of registry. This means the suspension or, — where the registry is cancelled, — the termination of the offender's insurance transactions in the Province ; for now, as to licensees, — Provincial, as well as Dominion, — the license is only a condition pre- cedent to registry, and without registry it is inoperative within the Provincial jurisdiction. Introduction. Ivii EFFECT OS PROnSCIAI. CORronATlOSS OF HECO.MISd rSRKGlSTEliEl). '11. If H Provincial insurance corporation be- comes unregistered, the Act has the further effect •of phicing the corporation in the hands of a receiver. The treasurer, or other officer of the corporation having the keeping or control of its funds, becomes ipso facto receiver, and an officer of the High Court. The same applies to the insurance branch w'^^re the insuring body was incorporated for other pur- poses besides insurance. The provisions of the Act relating to receivers are founded upon the jurisdiction inherent in our Provincial Court of Chancery, and therefore now exercisable by any Division of the High Court: li. S. 0. 1887, c. 44, ^sections 23, 35, 53 (8). This old jurisdiction has been obscured, but by no means superseded by the Dominion Winding Up Act. There is no general rule that a receiver already appointed must be •displaced b}' the liquidator appointed under the Winding Up Act: lie Pound, etc., L. R. 42 Ch. D. 402;* Be Lloyd, etc., Ch. D. 339; Bartlett v. North Avenue Co., 53 L. T. N. 8. Oil, 612; but, ^w4iere a resort to the Winding Up Act is thought necessary, the ordinary course taken is to continue the receiver as liquidator; and, conversely, where a receiver is applied for after the liquidator has been appointed, the liquidator is usually appointed re- ceiver: Perry v. Oriental Hotels Co., L. R. 5 Ch. App. 420; Be Oriental Hotels Co. L. R. 12 Eq. 126; Boyle v. Bettws Colliery Co., 2 Ch. D. 720; Be Pound, etc., 42 Ch. D. at 412. In Provincial Kuither otfoct on I'roviiiciiil corpora tioiis. Jurisdic tion as to receivers U. S. C.c. 129. I Vlll Insurance Corponitioiis Act. — H , «::•■■; : ro"ii'rovin" Mutual Fire Insurance Companies a rcceivershipi aiico Cos. used to be the ordinary machinery for winding up : 80 Vic. c. 44, ss. 74, 75, 7(); but in the revision of 1877: (K. S. O. 1877, c. KU, s. 78), an essential provision was omitted: Hill v. Merchants & Manu- facturers Ins. Co., 28 Gr. 5G1 This appears to have been a mere oversight; for the companion Insurance Act R. S. 0. 1877, c. 1(30, continued (section 22) the large powers conferred on receivers of insurance companies by 39 Vic. c. 23 (0.), s. 2] . In 40 Y. c. 15 (0.) s. 11 (now R. S. 0. 1887, c. 107,. s. 153), receiver is used synonymously with liqui- dator; and 53 V. c. 39 (O.), s. 10 (1), expressly provides that the High Court, upon the petition of the Attorney-General or of any one interested, may by judgment or order limit the time within which the corporation shall settle and close its accounts;, and may for this specific purpose, or for the pur- pose of liquidation generally^ appoint a receiver. In Union Fire Ins. Co. v. Fitzsimmons et al., 32 U. C. C. P. 615, the insurance company's license had been withdrawn; B. had been appointed receiver, and had by order of the Chancery Division sued all members in arrears for calls: on appeal, held, — affirming the Court below, — that the suit and pro- ceedings therein were valid. As applied to the liquidation of Provincial insurance companies, the Dominion Winding Up Act has proved most tedious "and wasteful. In the case of the Union Fire uniou Fire Insurance Company the Provincial license was ^° withdrawn in 1881, and winding up proceedings began. In 1885 in the Court of Appeal, while expressing his opinion that upon one ground — lings id— lnt)'0(htctivf(. which he designated as a purely t»K'hnical and unmoritorions objection — the order in api)eal ought to be reversed, Osier, J. A., said: ''The only practical result of the objection seems to be that the winding up of this insolvent com- pany has been delayed for more than a year. The delay and expense which have been already incurred are a reproach to the administration of justice, the litigation having been pending for nearly five years, with the result, as we under- stand, that between $5,000 and ^()flOi) of the company's assets have been expended in costs " : IH A. R. at 295. The litigation worked its way on- ward to the Supreme Court of Canada, which vacated the order that was in appeal. This was in 188B. A new order was had. Litigation broke out anew, and parsing from court to court the Union Fire Insurance Co. had by the year 1890 once more worked its w^ay up to the Supreme Court of Canada. In his judgment Mr. Justice Patter- son, citing the words of Osier, J. A., in 1885, said: "The reproach to the administration of justice is now more glaring, for four years more have elapsed ; and, save as advanced by the recent hearing of this appeal, tJie litigation is precisely at the same stage ^ the former order having been replaced by that of the Chancellor, but with an inevitably large addition to the costs " : 17 S. C. E. at 272. This was said in 1890. In 1892 the Union Fire Insurance Com- pany is still before the Courts. 28. Prior to The Insurance Corporations Act, it was found necessary in the case of Provincial lix I 4 Insiirdnce Corporationa Act. Llqui- datiuu -•i , Insurance Conipjiuies to resort to Tlie Dominion Windinf) Ui> Act^ becunso the necessary powers were not elsewhere provided. To friendly societies, that Act seems not to apply ; in any case it •^Kriemiiyis wholly uiisuitcd — not only on account of its Rs.c.c.^^^ tedious and wasteful procedure, but because in the V.C.32. s.u. (3j^g(3 Qf these societies there would usually be no one sulHcieutly interested to set the court in motion, or, if set, to keep the court in motion. The surplus of friendly society moneys, after payin**' liabilities, is often very considerable; but the claims of individual members on the surplus are usually too small to induce le^^al proceedings for their recovery. Hence, in such li(|uidations, there is more than the ordinary risk of the surplus being wasted or misapplied. The Insurance Corporations Act, in the winding up of any Provincial corporation thereunder, makes the Registry Officer a competent party, whenever he deems it necessary to intervene for the protec- tion of any or all of the interests, and he is to be kept informed by the Receiver of all accounts and proceedings in the liquidation: s. 56 (10). LEGAL STATUS OF FRIENDLY SOCIETIES. 29. In the notes to the Insurance Corpora- tions Act, (p. Ill, et seq.) the gradual evolution of oiu' statute law relating to friendly societies has been traced. The insurance feature in these societies, which at first hardly went beyond a donation in time of sickness or disability, has in onr time so dominated the other purposes that some of the societies became indistin- ntmoH sit'ties, ase it of its ill tilt' be no urt in lotion. , after eral)k' ; n tlie le,i4al 1 such ry risk . The ' up of es the ver he )rotec- he is ounts irporci- Ihition 'ieties these ind a has fposes listin- Introdiiction, guishable in their operations from avowed assess- ment insurance companies — the important ditTer- euce, however, remaining that, whih' tlie latter were required to give security to the state for the performance of their oontractts, and to show visible assets for pn^sent debts and also maturing' claims, the societies, even if manifestly insolvent, were not restrained in the sli<(hti!st degree from undertaking unlimited liai)ilities. Matters were brought to an acute crisis by the irruption into Ontario of paper societies and fraternities that n'ot only duped the people with their worthless certifi- cates of life and accident insurance, but undertook, for a present payment of a few dollars, to pay an endowment of hundreds of dollars within periods of time ranging from seven years to six months (II). 80. During an interval of suspended intelli- gence, — or worse, — certain of the state legislatures in the United States had let loose these speculative and gambling societies ; and now the courts, crimin; Izi muiit Ell-' dowmeut 8o, Sec. 5. ion. 8. 6. iiudevK.S.C. c. Act, prior jratuities ou d tbeir rules ract. Sec. 4 l877, cap. 1G7, March, 1S90, declaratiou operation at aged accord- d Act. Sec. 8. . 1, 189'2, by ized to trans- 3U nnder Ins. eusion Fund It of Canada. in insurance •porating .\ct r fund created Sec. 9 (4). 3d elsewhere uthorized by 3ess, being in r to March 11, ) residents of iorporated in society under o enter into Ontario, or of acting at that cation excln- ent insurance oviso (a). ne Dominion n-ized by Act in dor. [within R.S.C. ler than with Ifor sickness, ^neflts, or for [83,000. Sec. |operty of its I private pro- Imembers in |4 (2)I>. mercantile lercial gain. Id other than Uc.iv2)D. Ithe effective Bee. 8 (2). bntrol of per- 12). It Societies. Igu Societies INSURANXE CORPORATIONS ACT, \m. 00 \'it . Cai'. -V.). SUMMAKY OF PROVISIONS. Skctiox 1. ^4 Summary. Short title. Section 2. Interpretation: (1) '• Province ; " "Legislature;" (2) " In- spector ; " (3) "Registrar ;" "Registry;" "Registry Officer;"' (4) " Society " or " Friendly Society ;" " Offering to undertake contracts;" (5) " Branch ; " (G) " Registered Society;" "Un- registered Society ; " (7) " Premium ; " (8) " Contract ; " (0) "Written;" "Sealed;" (10) " Benefit ;" " lieneficiary ; " (ll) "Maximum;" (12) " Insurance ; " ( 13) Corporation " or "In- surance Corporation;" "Insurance Fund;" "The Insurer;" " The Assured ; " (14)" Assessment Insurance " or " Insurance on the Assessment System;" (15) "Maturity" of an Insurance Contract ; (IG) " Actuarial Liabilities ; " " Actuarial Solvency ; " " Solvent " Society ; (17) " Collector ; " (18) " Officer ; " (19) " Rules ; " (20) " Head Office ; " (21) " Chief Agency ; " (22) " Due Application ;" (28) " FpoD proof." . . : Section 8. No unregistered corporation to undertake insurance after 81st December, 1892. H.I.C.A. 1 II Summary. ♦»•■.. -■«i.'.< ^'^ration ; and no rebate or differential rate to be ^'iven ; 4; Viiiy registered agents to act as agents of certain insurance CLMnpan;: , (5) Insurance agents' register; particulars regis- tered; (()) Material on which registry may be granted; (7) Issue of agent's Certificate of Registry ; (8) Fee for certificate ; (9) Public notice to be given of registry ; (10) Section 2(5 to apply. (11) Conviction of offence against the Act to operate as revocation of registry ; no revivor within three years ; (12) No life insurance other than personal to be taken from unregistt.'red agents; (18) Penalty for breach of section; (14) Commence- ment o* section. Section 39. Limitation of member's liability in Friendly Society; (2) Release from liabilitv. Section 40. (1) Notice before forfeiture of benefit in Friendly Society ; Provisos; (2) Conditions of forfeitures to be just and reasonable. Section 41. (1) Maximum named in contract shfill jiriuix J'ucii' be payable. Section 42. Claims when payable by Friendly Society. Section 43. Delivery or service of papers. Section 44. (1) Insurance corporation's registry suspended for insolvency ; {%) But may be revived on resumption of payments within cer- tain time ; (8) Continued default ; (4) Time not extended where time limited bv other enactment. utory pro- 3(li3erimi- xpectiincy^ ami true be 1,'iven ; insurance lars re^ris- iintei-l; (7) iertificate ; tion 2() ta operat(^ as ;; (12) No iregistered /omnience- )ciety; (2) \' Society ; leasonable. le payable. solvency : [thin cer- led where SuiuftKiri/ of Pruri.sioHfi. Section 4o. ••■ Registrar to have access to Friendly Societies' books, etc. Section 4G. (1) Where niiximuni bonetit not paid by society, claimant entitled to inspect society's books, etc. ; (2) Claimant may have order from Registrar to inspect. Section 47. (1) Annual statement to Registrar ; refusal of information; (2) Refore whom statement may be sworn to. Section -'i^. Registrar's annual report. Section 49. (1) Certain events to cancel registry: 2) Certain events to suspend registry ; (3) When the liar ^ening of such events is disputed, Registry Officer to decide s. _,» cc to appeal ; (4) On cesserjof registry of Ontario corporation, Registry Officer to file notice thereof in the office of Master in Ordinary ; (5) " blaster," interpretation. Section 50. (1) Decision of Registry Officer to be rendered in writing; (2) Certified copy of decision ; (8) Affidavits and depositions to be filed ; (4) stenographic report of evidence. Section .31. (1) Appeal from decision of Registry Officer ; (2) Notice of appeal to be given to Registry Officer ; (8) If decision reversed, entries to be made in register ; (4) Rules or orders as to appeals. Section 58. (1) Application of sections 52 to 00; (2) Case of two or more custodians of funds, etc. Section 58. (1) Effect of the happening of certain events or of non-regis- try ; (2) Interim receiver forthwith to deposit corporation funds and securities in bank ; (8) Bank to give receipts ; (4) Interest on money deposited. Section 54. (1) Receiver's application for appointment to be filed in Mas- ter's office ; form of application ; (2) In what division entitled ; (8) Bank receipt and affidavit to be filed with the apphcation ; nmary. ■l> 8 InHurance Corporations Act. c: iT - ••^■■' Summary , fonn of aflidavit ; (4) Before whom the aftidavit may be sworn ; (.')) Securities given by receiver to corporation to remain in force; (()) The Master to issue liis certificate of fiUng and to call in the • securities ; non-delivery punishable as a contempt ; (7) ^Vhere no securities exist, or are not satisfactory or sufficient. Section ST). (1) Place and time to be appointed for hearing receiver's application ; (2) Public notice ot application and of the hearing ; form of notice. Section 50. (1) Disposal of application by Master; (2) Powers of the Mas- ter; winding up of corporation; (H) Guarantee company's bond as security ; (4) Trusts company as receiver ; (o) Appeal from ]\Iaster's decision ; (6) Rules of Supreme Court of Judicature to apply; (7) Jiooks, etc., of receiver to be open to Registry Officer; penalty for refusing access or making false entries ; (8) Receiver to deposit moneys in bank ; before passing an account receiver to deliver copy to Registry Officer ; copy of account as passed to be delivered to Registry officer ; (9) Default or laches of receiver ; (10) Registry Officer a competent party. Section 57. (1) On default of interim receiver, Master may appoint another ; (2) Duties of new interim receivi .'. Section 58. (1) Proceeding on receiver's default of compliance : (2) Motion to commit. Section 59. (1) Where receiver does not comply after directions given by Registry Officer ; penalty ; (2) Section 27 (3) (4) (5) (6) to apply ; (M) Section 20 to apply. • Section 60. Offence by corporation is ofience by officers thereof ; contin- ued default constitutes new offence. Section 61. Costs of civil proceedings under the Act. Section 62. Fees. Section 63. Acts amended ; inconsistent enactments repealed. Insurance Corporations Act, \^l 55 Vic. Cai'. 39. H ER ^[A-IESTY, by and with the advice and consent of Sections 1-2. the Le<>:islative Assembly of tiie Province of Ontario, ■enacts as follows :- I. This Act may be cited as 'Jlie Inmnmce (Orjiorutions Act, ^•"'"•^ '^'^'^ iso-.\ The Insurance CorporatioiiH Act, 1H9'2, received'''""'' the Eoyal Assent on the 14th day of April, 1892. This date is, therefore, the date of the connueuce- nient of the Act, except as to those sections for which a later commencement is provided : K. S. 0. 1887, c. 1, s. G. Definitions and Interpretation. 2. In this Act, unless the context otherwise requires ; — tlon'^'"'^"' (1) "Province" and '-Legislature" mean respectively tl J.^ifJe. Province and Legislature of Ontario. Legislature (2) " Inspector" means the Inspector of Insurance for the inspec- Province. . • . ■| 10 Tnsfu'dncf (^or/KiraflonH Act. Section 'i(3).l3). l''()i' an Mccoiml ot" tlio ollicc and dutii's of tlu' Inspector of fnsiiranco, sec 'r/tc r)tiffiri() Insiudnre Act, (H. S. (). 1SH7, (•;!}). lliT), ss. l:iS rf .S77/. Under tlic present Act, the dnty oi determining", distiu- <;nisliin;4 and re;^isterin;jj those insnnmce corpora- tions whicli are le^'ally entith'd to re;4istrv on the Insnrance liicense lie^dster, devolves npon the Inspector of Insurance: section 7 (I) I'n/rd. Hoyintrar. Kt'nistry. a: C: Mr-. > (H) " Ri'j,MHti'!U' " iiK'tins the RcLjistrar of Friendly 8ooietio!4 for tlie I'rovince. " Ke^'istry," as appliod to corporations, moans registration on tlio Insnraneo Lici-nso llt',L,Mster, or on thf Friendly Society llej^'isti-r, aceordinir as the nnitter pertains to an Insurance Company or a Friendly Society respectively, om'ur^ " Ke^'istry Otticer " means the Inspector of Insiu-ance or the ]{o,<,'istrar of Friendly Societies, according' as the matter pertains to an Insurance Company or to a Friendly Society respectively. The first ile^istrar of Friendly Societies is the Inspector of Insurance : section 11 (1) infra. " liegistry," as used iu this Act, is the generic term, in(duding sjiecitic registrations of particuhir corporations, persons or things. Thus, Registry includes registration of life insurance agents, sec- tion 88 (Nj'rd ; and registration of powers of attor- ney, section 14 iiifni, as well as registration of corporations on either the Insurance License Kegistei', section 4 (1) 'mfrd ; or the Friendly Society Register, section 4 (2) hifni. For the * actual matters entered on the Register, see section 18, infra. " Registry Officer " is likewise the generic term, including both the Inspector of Insurance and the Registrar of Friendly Societies. For the purposes Definitions und Infcrprcfdtion. 11 of section *2(), J{('«,qstrv Otiiccr iiicliKh^s the Deputy or AssiHtant He^'istrv Otlicer, section 'H') (S) lii/'ra. Section 2(4). 4) " Socii'tv, or "tru'udlv Societv, mclinlcs nnv cor- so.i.rv, or . * . . ■ - ." , , ' , int'iicllv poratioii, society, iissociation, or mitermty. beiicvolt'iit, iiiutuiil, ■'"fifty. |ir()vi(l«'nt, industrial, oi- co-oporativf, or tlic like, wliicli, not bcinjj; a corporation within the intent of section.s ."i or (5 of thi.s Act, refiiiired by law to he licen.sed for the trnn.saclion of insurance, undertakes or elVeets for valuable consideration, or / a<,n'ees, or otVers so to undertake, or etVect, with any person in ayments on birth ordeatli ; for payments in distress, to seekers for employment and in case of shipwreck or f^ image at sea ; for endowments ; for ; isnrance tools against fire. In all these cases the fund is raised by a system of voluntary subscription, and the benefits accrue to members, their wives or relatives ; while Benevolent Societies, idem, s. 8 (3) are ^in ,1 12 Iii.sii ranee Corpcrdt'toit.H Act. ^V}^^ deiiiied to mean societies for any benevolent or charitable purpose; in practice, this definition has been interpreted to mean societies substantially established for the purpose of providing benefits for persons other tha^ .he members, their wives or relatives : Pratt, The Law of Friendly Societies, 11th ed. p. 5^J. a- o. c: lb '■ c:;,.. r-.; •t^- «::::• Friciirlly society nud liconsed •couiiiaiiy. For the purposes of the present Act, Society, or Friendly Society, includes every corporation, not required by law to be licensed for the transaction of insurance {ride section 4 (2) D, infra), which undertakes contracts of insurance, whatever the purpose for which the corporation was created, or from whatever source it derives its powers. The Act found the business of insurance in Ontario transacted by licensed companies and by unlicensed corporations of various origin and constitution. While preserving license and the incidents of license where already existing, the Act throws all other corporations undertaking insurance contracts into one great class — Friendly Societies. Whether a particular society is entitled to registry depends on tlie further provisions of the Act ; but so soon as it is ascertained that the corporation does not derive its powers to undertake such contracts by virtue of a license or document of authority granted by the Insurance Departuxcnt either of Canada or of the Province, the corporation falls within the class of Friendly Societies, and the provisions of this Act relating to Friendly Societies are applicable. . Definlfionx diid Iiif('rpret((tioit. m For the Friendly Societies recof»nized as pos- sessing insni'tinee powers and admitted to registry on the Friendly Society Register ride Sections 4 (2) B Pn,n\s(>, 4 ('2) C PronSo, S (1) and (2), U (1), (2), (8) and (4), 10 (1) and (2). For the Friendly Societies not recognized and not entitled to registry ride section 4 (2) A., J^., (\ and J). It follows, from the vit^w taken of Friendly Societies in the Imperial Statute, as societies estah- lislied to provide a fund for pirticular purposes hy the voluntary suhscriptions of the mend)ers, that in England the statutes governing the contracts of insurance companies are of douhtful apj)lication to society benefits. Thus, in 1851 the (piestion w^as raised whether the Statute 14, (feo. ■^, c. 4(S, relating to insnral)le interest, applied to an insur. ance with a society constituted under the Friendly Societies Acts: Brown v. Freeman, 4 l)e (4. and S. 444. But Tlic Iii^ii I'd live Corjiordfioii.s Act, lr. (^f. N. Y. Laws, LS,S3, c. 175, as amended by c. 2S5 "- " of the Laws of LSST. BriDiclt. — Tlie insurin«4- section of the corpora- J^^'^""!'- lion may he either a department or division of the society itself, or be a l)rancli within the proviso in sub-section (5) of this section (ride liifni), that is, the committee or persons having, under the authority of the respective Acts of Canada, the management of the benefit and insurance funds of the corporation; /'.//., the Committee of the G. T. R. of Canada Superannuation and Provident Fund. 37 Vic. c. 45 (J)) ss. 11 to 14; 41 Vic. c. 25 (D) ss. 2-4. DiHtinct (uul separate fnnds. — As a disti'-.ct •*,^;i\^»"''''^ and separate insurance fund, must be kept a.'' moneys, securities for money, and assets appr( ri- Lterl by the constitution, by-hiws, or rules of th:' society to the payment of insurar.c< liabilities, or appropriated for the management of the insur- ance branch, or department, or division of the society, or otherwise legally available for insurance liabilities : section 2 (18) infra. For permissible investments of the surplus of the insurance fund, ride section 29 (2) infra. If the society, having its head office elsewhere than in Ontario, has in charge of officers of the society resident in Ontario a reserve fund for the security i" assistance of members of the society, such fund is deemed to be held in trust for members in the jurisdiction of the said officers; uiid until other trustees resident in ii.i.c. \. — '2 IH Insurance Corjwratioiis Act. 2?4^a° ^li^'ii'io ^^I'G appointed l)y competent authority such officers are deemed to he tlie trustees of the fund. This trust fund, or so nuich of it as from time to time remains unexpended, must he invested as enacted in section 29, section 17 (3) infra. A copy of the rules relating to the insurance con- tracts and t]ie management and application of the insurance fund of a society must he delivered to any person on demand and tender of twenty -five cents, section 32 (1) infra. Delivery of untrue rules with intent to mislead or defraud, renders the agent or officer so delivering liahle to a penalty, section 32 (2) iiifra. »#► -■■, at■■•^,■^ CUv- fc: Booka. Bools. — The Eegistry Officer may direct from time to time a cl...ssification of the contracts to be made and the register and books to be kept ; and if it appears to him that such books are not kept in such business like way as to make at any time a proper showing of the affairs and standing of the insuring section of the corporation, the Registry Officer has power to nominate an ac- countant to audit the books and to give such instruction as will enable the officer in charge to ke'jp the books correctly thereafter. In such cases the expenses of the accountant, not exceeding $5 per diem and necessary travelling expenses, are borne by the corporation, section 28 (1) i?ifra. Over the books of account of the corporation itself, where distinct from those of the insuring section, the Act confers no jurisdiction. The books relating to tlie insurance funds of the society are the property of the society, and are not the property of its agents Definitions and Interpretation. 19 or collectors: section 30 (4) infra. An nntriie section entry in the books, or a refusal or wilful neglect to make any proper entry in the books, constitutes an offence against the Act, punishable by imprison- ment : section 30 (5) infra. Member' H rinltt to inspect the hools. — AYhen a?'i;''^'o claim occurs under a contract and the insuring '''''''"'• section of the society offers the claimant a less sum than the maxinunn named in the contract, and either offers no explanation, or alleges as a reason for not paying the maximum, that the fund is insufficient, the claimant is entitled as of right, on written notice to the society, to inspect personally, or by agent, all books and documents relating to the funds, and if the society neglects or refuses to afford the claimant a reasonable opportunity of inspection, the Eegistrar may give the claimant or his agent an order to inspect the books on a day named ; and neglect or refusal thereafter to afford him an opportunity of inspection is an offence against the Act, section 46 (1) and (2) infra. This right to inspect extends only to the books and documents relating to the distinct and separate fund of the insurance branch or department of the society.' Annual statement. — A statement of the finan- Annual cial condition and affairs of the insurance branch or department must be prepared annually, verified under oath and filed with the Eegistrar on or before the first day of March. The statement must be on the form supplied by the Registrar on application, section 47 (1) infra. ; ' 20 Insaidncfj CorpDiuttions Act. Voiicltcr.'i'-- Audit t>!i soviet ji. — It is i\\v duty of tliu olHcers in c-liar^^e of tlu' iiisuraiice fund to ^y have at least once in every year a Ixuki JlfJc and made of tlie books by two Section 2 i4) a. Atidit by tl' ; *)■(). All tbe books of record and account, voucbers and documents relatint^ to tbe insurance contracts of tlie society are included in tliis audit, section >i() (4) iii/ra. A writing under tbe liand and seal of tlie Registrar accredits tlie special auditor, se'ction 80 (2). Tbe expenses of tbe special audit are borne by tbe society, or l)y tlie requisitioners, as tbe Registrar may direct: section Hi) (8) iii/ift. Directors or (•tiicers of the society neglecting or refusing to e\bil)it tbe books and vouchers, or allowing the Millie to l)e inspected and audited and extracts to be made therefrom, are guilty of an oft'ence i)un- ishable by imprisomnent: section Hi) [■)) infrd. If the society, by its officers, obstruct an auditor in the performance of his duties, its registry may be suspended or cancelled: section 80 (G) infra. If the report of tJie special auditor discloses fraudulent or illegal acts, or repudiation of con- tracts, or insolvency, the Registrar shall furnish the society with a copy of the report, and allow the society two weeks to file a statement in answer : section 31 (1) infra. On consideration of the special auditor's report of the statement in answer, and of any further evidence, if any, the Kegistrar renders his decision in writing, and may thereby continue or suspend or cancel tlie registry of the society: section 81 {'1) infra. '21 Section ,2 (4) a. of Audit. i Registrar'B (lecisiou. 22 Inaumnce Corjjonitiofis Act. <3^ a- CI Section 2 (4) b '- {!>) Provided also, that where two or more lodges or Proviio. ^^ranches (by whatever name known) of a society, though separately incorporated, are under the financial or administra- tive control of a central governing body within the Province, or a duly authorized Provincial representative of the society, then such governing body, if incorporated, or such Provincial representative of the society may, in the discretion of the Registrar, be dealt with as the society for any or all purposes of this Act. It is sometimes the case in the fmteriuil orders that each Aihordinate lod^^e is a corporation, and that the contract of the member is with his lodge, or that one contract ie.a. funeral benelit) is with IiO(lt4eB I'lT I'll S^of"""" ^^^ lov- society incorporated elsewhere than in Ontario, ^'^^lyj!;*" if incorporated by virtue of a statute of Ontario, may be dealt with as the society for purposes of this Act. If the society has, in the control of its otlicers resident in Ontario, a reserve fund for the security or assistance of its members, such fund l)ecomes a trust fund for the membei's within tlu^ jurisdiction of the officers in charge of the fund, section 17 (3) infm. The central body, with its fund, is for all practical purposes the society in Ontario, and the foreign executive or governing body has no status under the Act. (5) "Branch" means any number of the members of a Branch, corporation under the control of a central body, having within the intent of sub-section 13 of this section, a separate insurance fund administered by themselves, or by a connnittee of officers appointed by themselves. This definition follows the definition in the Friendly Societies Act, 38 & 39 Yic. c. 60 (Imp.) s. 4: ^^Brancli means any number of the mem- bers of a society under the control of a central body, having a separate fund administered by themselves or by a committee or officers appointed by themselves." For the purposes of the Act such branch may be dealt with as the society. \i IMAGE EVALUATION TEST TARGET (MT-3) // ^ >^ 1.0 I.I 12.8 1 2.5 « ... I 2.2 IL25 il.4 6" Va m ^M Photographic Sciences Corporation 23 WEST MAIN STREET WEBSTER, N.Y. 14SM (716) 873-4503 i\^ ■^ '(-■^ W^ ^\ Wk\ '^ pa 24 Section 2 (8)-(6). Luau ranee C'orjKirftfion.s Aef. For what is incliidiMl in "iiisiirMiicc fund" ride section 2 (18) hi/ra, and notes under section 2 (4) Proris(t a. sKjmi. Provided that, in the corporations mentioned in sub-sections 2 and 4 of section 0, " Branch '.' shall include the committee or persons having, under the authority of the respective Acts of Canada, the management of the benetit and insurance funds, or gratuity funds, respectively. rommittee Tile conniiittec or i)ersons havin*' the niana«j:e- the society. _ . . nient of the insurance fund is the society for tlie purposes of the Act: Mde notes under section 9 (2) and (4) iiifnt. in c c "fe KegiB- tur«d cor poration persou. UiirPRis- tered cor poration lierson. (T)) "Registered" corporation or person means a corporation o,. or person duly registered or deemed to be so registered under this Act; and " I'nregistered" corporation or person includes any corporation or person not so registered or not deemed to be °'' so registered for the kind or character of insurance transacted or undertaken, or offered to be undertaken or transacted, whether such corporation or person was never duly registered for that purpose, or, having been so registered, lost such registry through non-renewal, suspension, revocation or cancel- lation. Compare 88 & 89 Yic. c. (K) (Imp.) s. 4. liegisfered and Unregistered Corjiordfions. — Registration consists in (a) liegistry on the Insu ranee Lieense Ih'pisfer, section 4 (1) infra ; or, (h) Registry on TJie Friendhj Soeiett/ liegiatery section 4 (2) infra. Registration in accordance with the provisions of the Act is a necessary prehminary to the under- taking of contracts of insurance within section -2 Definitions (ind Infcrpretafion. 25 (12) infrn. For " after the :ilst day of Deceiiibcr, ^y^er 1(S1)*2, no insurance, other than as tMiacted l)v and for the purposes of The Land Tif/rs Act, sliall he transicted or undertaken in Ontario except by a corporation duly registered as herein })rovided " : section H infra. And also, " after tiie >Ust day of ])eceniber, 1892, no person or persons, or body cor- porate or unincorporated, other than a corporation standing registered under this Act, and persons duly authorized by sucli registered corporation to act in its l)eli;iU", shall undertake or cHect, or offer to undertake or effect any contract of insurance " : « section 27 (I) infra. For the purposes of the Act, a corporation is unregistered wliich was never duly registered, or whicli was never duly registered for tlie kind or character of insurance transacted or undertaken, or offered to be undertaken or transacted. On " offering to undertake contracts," ride section 2 {4) snj/ra. The certificate of registry sets forth infer alia that the corporation is registered for thc^ term and for the purposes stated in the certificate : section 18 (2) infra. A corporation likewise be- comes an unregistered corporation by the expiry of the certificate of registry. The first day and the last day of the term for which the corporation is registered is specified in the certificate, and the corporation is deemed to be registered from the commencement of the first day to the end of the last day so specified : section 2() (5)a, in/ni. Cor- porations receiving a license or other document of authority under TJie Infinranre Act of Canada, torocl cor- ixiratious 26 Insurance Corporations Act. Section 2(6). c c On suspen sioii or cineolla- tion (kf license. upon duo presentation thereof, and payment of the fee prescribed, obtain renewal of registry : section 19 (1) infra. The registry of corporations licensed by the Province of Ontario is renewed on the renewal of their licenses: section 5 (1) infra; and of other corporations, on Uling the annual state- ment prescribed in section 47, and otherwise complying with the law: section 20 infra. A cor- poration is also deemed to be unregistered, although once r'^gistered, if it loses registry by suspension, revocation or cancellation. The suspension or cancellation of the document of authority under The Insurance Act of Canada operates ipso facto as a suspension or cancellation of registry under this Act : section h) (2) infra. Similarly, suspen- sion or cancellation of the license issued under The Ontario Insurance Act operates /jmo facto as suspension or cancellation of registry under this Act : section 5 (2) infra. And any insurance cor- poration is liable to have its registry suspended by the Registry Officer upon the failure of the corpor- ation to pay an undisputed claim on an insurance contract for the space of 00 days after being legally payable, or, if disputed, after final judgment and tender of a legal valid discharge, and, in either case, after notice of default to the Registry Officer : section 44 (1) infra. And if within sixty days after such notice the corporation has not fully paid all undisputed claims and final judgments, the. Registry Officer shall cancel the registry of the corporation : section 44 (2) infra. In the case of corporations other than those receiving license or document of authority inider 2'Jie Insurance Act of Jk'fiffifiofi.i (ind Iiitciprctdtion. 27 Section 2(6). CaiiKcla, or The Ontiirio It/sunincc Act, rt'iristry may bo susi)ende(l or cancelled as follows : — I pon proof that any registry or ccrtiticatc of registry has been obtained l)y fraud or mistake, or that a c{)ri)or- ation exists for an illegal purpose, or has, in terms of section 44, made default of payment, or lias wilfully, and after notice from the Registrar, con- travened any of the provision of this Act, or lias ceased to exist, the registry of the corporation may be suspended or cancelled by the liegistrar : sec- tion 25 (1) infni. And also, if the report of the'J;;,;,";:»'"» special auditor, appointed under section 80, ii{fr(f,Xu\T'' appears to the Registrar to disclose fraudulent or'"""* '" illegal acts on the part of the society, or a repudia- tion of its contracts, or insolvency, the Registrar may, after notice to the society, and upon con- sideration of any statement in answer and other evidence, if any, suspend or cancel the registry of the socie ;y : section 31 (1) and (2) infra. The happening of the following events ipso facfoy and without notice from the Registry Officer, cancels the registry of the corporation con- cerned : — (a) The repeal or the expiry without renewal of its charter, instrument of association, or deed of settlement, or of its Act or Acts of Incorporation ; or, (b) the revocation of its corporate powers ; or, (c) the cancellation or the expiry without renewal of the license or other document of authority by which the corporation was authorized to exercise its corporate powers in the transaction of insur- ance ; or, (d) the passing of a resolution by the 2H InHiiraiue Corjioriition.s Act. \ a c c r ^Tie)" <'"''P^>'''^^^<*^' ^*^'' ^^^ wiii(lin«,'-n}) ; or, f^; the iimkiiif,' ou"wh^^^^ an order hy finy court for the wind in*,'- up of the '"*''"'' corporation : section 49 (1) i/i/ni. Similarly, the liai)penin«^ of any of the following events i/hso f(i(\^(), and without notice from the Registry OHicer, suspends the registry of the corporation con- cerned: — (1) The suspension of any of the Acts, instruments or documents mentioned in (d) and ((') above; or, (2) The suspension of the cori)()rate j)ov»ers of the cori)orati()n : section 49 ("2) infra. Insniancc A^'elltK' Heyister. licijiHtcrcd or ti )>}'('(/ i.sfe red jtcr.son. — A register, known as the Insurance Agents' Register, is directed to be kept by section >JH (o) infra. Registration is recpiired of the agents of all corporation licensed or receiving a document of authority from either the Dominion of Canada, or the Province of Ontario, to undertake contracts of insurance against death, sickness, infirmity, casualty, accident, disability or any change of physical or mental con- dition, and contracts of endowment, assessment endowment, tontine, semi-tontine, life-time bene- fits, annuities on lives, or contracts of investment involving tontine or survivorship principles for the benefit of persisting members, or any contract of investment involving life contingencies : section 88 (1) infr(L Agent means any person, not beiiig the chief managing officer of the corporation in Ontario, who, directly or indirectly, acts as insu- rance agent, sub-agent or broker, or under any other designation, solicits or procures any insu- rance, or application or proposal therefor for such corporation : section 88 (4). Registry of an agent DfjinitiiHi.s mid hiicrpreidtioii. )f the ^', the ►Hicer, con- Acts, t) and poratc "••istcr, irected .tion is censed , either ice of I I gainst ident, I con- is for (MIC year, 1)iit may be renewed : section ^^S (.V) ^^}^J^^ in/ftt. The initial rc^nstry is «^rantc(l on the jm"o- (hiction of a reconinienchition from the manager of a ('ana(han or from the chief a«;ent of a lorei^ni insnranceciu'poration h'«^all3' anthori/ed to transact hnsiness in Ontario: section 'AH ((>) infra. If a re«^nstere(l a^ent is conyicted of an otTence a^^ainst the Act, u})on })r()of of sncli conviction, the lU'«j[is- try OtHcer sliall revoke the re«;istiy of the person convicted; and, if the conyiction is appeak'd, the ]{e«'istry Otlicer shall susiiend the re«^istry ; and, if the conviction is atiirmed on the appeal, then the Registry OtHcer shall like\yise revoke the registry. The person so convicted is not entitled to apply for revivor of registry for the term of three years from the date of conviction : section ^i(S (11) inj'rruiiiiiiiii. Contract. Oral con- tracts. "i^^f-A^ SYn ii % payable nmy be u sum certain or consist of snms uncertain or variable in time, number or amount, as is ordinarily the case in assessment insurance: sections 2 (12); 2 (14) Infra. In Ke<( : per 4 East, 1;{<», t'ol lowed in Liviii^^stone v. The Wesceni 2®9*^"jy> Assurance Co. (iHliS). 14 (ir. 4(il; see also Key- Holds V. The ( 'oiiiiiiercial I-'ire Insurance Co. (N. \ . CoMi't ol Appeal. IsT^tK '2 Insurance Law .loin'iial, ()3 ; Mea<;her\. J-ltna insurance Co., "Jd ['. C. (,). H. (1(17, 11 ['. C. C. P. :{-Js: Hencdict v. Ocean Insurance Co., .'Jl N. \. :Js"""'^' tbi- cxi'culoi's, administrators asid a::isign8 of every one so entitled. Compare :{s cV :^<) Vic. c. (io ('Imp.), s. 1-5 (3); :V.) \' 10 \'ic. c. ");") ^Iinp.), s. 11 (.>). The i)a\ iiieiit of the henelit hv a mutujil henefit society to the hcueiiciarv, or navment of a sick henelit, or permanent disal)ility indemnity, hy a society to a memher, is not voluntary and in the nature of a ^ift, hut is the fulfilment of a contract of insurance entered into hv the uiemher and the • society: Bolton v. Bolton, 78 Me. 2011. ''Bene- tit " includes all moneys payahle hy the corpora- tion under tlie contract. The contract nuist he one within the intent of suh-section 12 of section 2: section 2 (8), .sfijmt. Jirncficiarf/. — The defi- nition is wide enou<^h to include the i)ayee of insurance money under any contract of insurance, hut the term is chietl}' applicahle to contracts of life insurance. " A contract of life insurance necessarily implies an /N.sinrr and a person whose n.i.c.A. — 3 'M ItistinincL' ('i>rpnni(i(jitH Act. '*?Mni '''^*' '^ instirt'tl. Timsmnch iis the tiiiic for perform- 2(1 aiK'o by the insurer of nn ordiniiry eoiitrnet of life iiisiirniiee does not occur until the dciitli of the I)orsoii whose life is insured, there is conunonly a third person interested in the contract as hein^' tii(» person to whom the amount due is to ha paid. Such person wo designate the "beneficiary": Cooko on Life Insurance, p. 9. (t c c p c Maximum. (H) •• Miiximuin " moans tlio larj^'cst sum which, uiuU'r the contract, the benefit may reach, but may not in any event exceed. Compare 4() it 47 Vict. c.47(rmp.) ss. iJ, 4,(); r>() cV' 51 Vict. c. 50 (Imp.) s. 5. (1.) The certilicate or contract of a Frii'ndly Society ordinarily contains a provision like one of the foll()win«^: "That in accordance with, and under the provisions of, the hiws ^a)vernin<,' the order, he (fJie niemJicr) is entitled to receive one assess- ment on the membership, but not over in amount S1,000, etc., etc.: (Form of certificate issued i)y Tlie Great Camp of the Kni(/ht.s of the Maccabees nf the World.) — "The conditions bein^^ compHed with, the Supreme Council of the Koyal Arcanum hereby promises and binds itself to pay out of its widows' and orphans' benefit fund, to and , for the benefit of a sum not exceeding ^3,000, in accordance with, and under the provisions of the laws governing the said fund." — "That in accordance with, and under the provisions of the law governing the Order, the sum of $2,000 will be paid by the Supreme Lodge, Knights of Honor of the World, as a benefit, etc." Dcji nit ions intil Interpit'tatittn. 85 (crfonii- t of litV of tlh' inoiily a LMM^' tho be paid, iciiirv" : undiT the any event 'I'ln' umxiiimiM ainoiint so statt'd or indicati'd, *•''"?" Society of tlu' id lUidiT u' order, (' assess- aniouiit sued l)y '((hecs *\t |ied with, 1 hereby widows' and ice with, liiiifj; the id under |(ler, the Lod^^e, It, etc." in the contract or ccrtiticate is jiriuKt In -it' i\w amount navahle h\ the society to the l)eneli-{',av"rti. Mnxitipiiii » ciary. .Vnd the hurden of provinj^' that a h amount is th( ti'iie amount is upon the society: section U (1) infra. And if the society alle^^es as a reason for not payin<( tlie maxinnnn, tliat tiie society's general contract fund, or some other fund, in insutlicient, th(» beneficiary has tlie ri^dit to inspect, personally or by a«,'ent, all books and documents relating' to the contract fund ^'enerally, or the fund alle<;ed to be insutlicient: section M) (1) i}tfrn. And on the refusal of the society to atTord the beneticiary a reasonable opportunity of inspection, tlu» beneticiary may obtain from the He;.(istrar an order to inspect on a diiy named, and therejifter, ne^dect or refusal to afford him an opportunity of inspection, is an offence aj^ainst the Act: section 4() (2) infra. (12) " Insuranct' " incliulos the lbllo\vin<,', whether tho con- insunujctf. traut uo one of priniiiry insurance, or of re-iusiuanco, and whether tho premium payable he a sum certain, or consist ot" sums uncertain or variable in time, number or amount : — An exhaustive definition of '* Insurance" can hardly be made. Mr. Phillips, Law of Insurance, otli ed. p. 1 thus defines it : — " Insurance is a contract whereby, for a stipulated consideration, one party undertakes to indemnify the other against daniage or loss on a certain subject by certain perils." The definition obviously incdudes only contracts of indenniity. In attempting" to r 36 In sura lice ( oriKt rp nit HillS ■ict. c c ^^Mof secure unifoiiuity in tientiuent Aiiieriean text writers and judi^es have regarded all insurance, 2(12) E-:--^i Otv ■:■•!■ Not all contracts of indtjiu- niiy. u u'e including- life, as contracts of indemnity insurance is protection a^'ainst loss by tire, and it is based on the productiveness of tlie property insured — present or prospective — and the possibility of its destruction by lire. Jjife insurance is protection a<^'ainst financial loss by death, and it is based upon the productiveness of the person insured — IM'esent or prospective — and the absolute certainty that he will die :'" Commonwealth v. Wetherbee, 105 Mass. at p. ll)(). In the law of En.i^land, followed bv our own courts, life insurance foi'iiis a class apart from other insurance contracts. Thus: "Insurance is a contract l)y which one person, in consideration of a premium, undertakes to indem- nify another against a particular loss Contracts of life insurance, however, are not con- tracts of indenniity ; they are contracts to pay a specified sum in a certain event : " Smith, Mercan- tile Law, 10th ed. p. >)94. The leading case is Dalby v. The India and London I>ife Assurance Co. 1.5 C. B. 3()5, in which the doctrine laid down ii Godsall v. Boldero, U East 72, that insurance being a contract of indemnity, the insured could found no claim upon his policy if the debt or other interest in respect of which he made it were satis- hed aliunde^ was overruled, and it was decided that a life polic}', both in form and eiTect, is an absolute contract to pay a certain sum in the case of death. J )t'jiiilfi(iiis tintl li/frr/>rff(ifi(ni. :;< M/if/ifi/ lii'urtit Iitsiirfiiiit'. — " Wliatevcr may be tlu' iiiotivt' iiii(U'rlyiug the great schonie of life iiisui"aiiee, it is certain that, in its practical appli- cation, lite insnrance is, and mnst he, fonnded n[)oii contract. Its benevolence must flow, not from mere good will, hut from legal obligation. Its gifts nnist not depend upon the continuance of the charitable impulse of those who shall pay, but upon nnitual promises. Although the obfect of the insurer in making the contract, and the object of the organization with which he contracts are l)enevolent and not speculative, they have no bearing upon the nature and etfect of the business conducted and the contract made. Nor will the character of the contract he changed by the fact that the organization issuing it designates itself as a benevolent or charitable societv, instead of an insurance company. The name of the society will not necessarilv tix or establish its real character. c " If the prevalent purpose and nature of an association of whatever name be that of insurance, its legal character will not be changed by the benevolent or charitable results to its beneficiaries. "A society which, by contract, agrees to pay the beneficiary of a deceased member a sum of money, is a nnitual insurance company, whatever may be the terms of payment of the consideration by the member, or the mode of payment of the sum to be paid in the event of his death:" Xiblack, on Mutual Benefit Societies, p. 198, and cases there cited ; see also, note under section 1 (10) supnt and under section 4 (2) infrff. Section 2 (12). Ciiiitracts fif luMii'fi t SOL'it'ti(.'S. , : ' m Insurance Corporations Act. Z''.'.n c c c p c 5 i section lie-insurance. The risk which one insurer has 2 (12). ■ assumed with reference to any subject matter of insurance, constitutes an insurable interest which the insurer may protect to the extent of his liabihty, by effecting? an insurance in his own favor against the risk he has assumed. This procuring insurance to cover a risk ah'eady assumed is called *' re-insurance." The subject matter of the insu- rance in each case is the same, but the interests are different. In the first case the subject matter of the insurance being property, the owners' interest is that which is protected; in the latter, it is the insurer's interest in the preservation of the pro- perty, by reason of the fact that he is under obliga- lOGeo. II. tion to pay for it in case of loss : May on Insurance, 2nd ed. p. 10. The statute 19 Geo. II. c. 37, prohibited re-insurance unless the re-insured was insolvent, bankrupt or dead. No formal abroga- tion of the statute has been made, but the statute, so far as the law of Canada, and of Ontario, is concerned, has been virtually repealed by legisla- tive recognition of re-insurance. Thus a company ceasing to do business in Canada, must re-insure all outstanding risks or obtain the surrender of the policies before its deposit is released: E. 8. C. 188G, cap. 124, s. 47; and by The Ontario Insurance Act the Board of Directors of every insurance company is empowered to make contracts of re-insurance: R. S. 0. 1887, c. 1G7. section 92. tually repealed. Premiums uncertain in time, etc. — When the premium cons! .ts of sums uncertain or variable in time, number or amount, the contract is one of Definitions and Interpretation. 39 assessment insurance within section 2 (14), i}tfra ; *?°J**JJ* cf. K. S. C. cap. 124, s. 36. ' — (/<) Insurance against death, sickness, infirmity, casualty, accident, disability, or any change of physical or mental condi- dition ; and With the exception of Ontario Societies ah'eady transacting assessment endowment insurance (sec- tion 4 (2) C, proviso (a), infra), Friendly Societies may undertake with members exchisively, only those contracts of insurance which are included in this group and for the fidelity of members as lodge ofhcers: section 4 (2) C. infra; cf. 38 & 39 Vic. c. 60 (Imp.) s. 8 (1). Sickness. — In England the so-called health Haaith lu- -' _ Burance. offices pay weekly sums to certificate holders who are wholly or partially disabled from following their vocations on account of illness not resulting from accident. Sickness insurance may be defined as insurance against loss from incapacity attend- ing ill-health. Sickness includes lunacy : Burton V. Eyden, L. R. 8 Q. B. 295; McCullogh v. Expressmen's Mutual Ben. Asso., (Penn. S. C. 1890) 19 All. Hep. 355. insurance. Accident. — Accident may be defined to be any Acdtiont unexpected event which happens as by chance or which does not take place in the ordinary course of things : North American Co. v. Burroughs, (1871) 69 Pa. St. 43. In accident insurance proper "accident" means a bodily injury happening without the direct intent of the person injured, /even though it may be the indirect result of his 40 In.suraiue ('orponifions Act, c t c C I- c ?Ji2?a iiitt;Jiti<>H'il 'icfc- It, therefore, includes an injury "intentionally intlieted by another, also an injury that tlie ne< H. iV X. t557. The policy itself sometimes defines perma- nent total disability, e.g. injury to th(> spine. Section. 2 (12) a. Insurance may be had against a clian,i;(' (»f mental as well as against a chan^'e of pliysical condition. Thus one partner nii^ht eti'ect an insurance on his partner's mt I'llllll^'O of lUCIltHl uumlitioii. ntal as wt^ll as hi; bodily healtli. Cnless otherwise a})])arent from tin* context, tlie word " insanity " in statutes and contracts means inability to reason and will intelli- "•en tly Johnson v. Maine and X. 13. Ins. Co. *2() Ins. Law Jour. p. 1030. (/') Insurance against financial loss ; or against loss of work, eniMiDyment, practice, enstoni. wages, rent, profits, income, or revenue; and The contract of insurance, ^^enerally, is appli- cable to protect men against uncertain events which may in any wise be of disadvantage to them : Lucena v. Crawford, 2 Xew Kep. 301. The sub- ject matter of the contract may be the solvability of a debtor; the payment of a note at maturity, Ellicott v. United States Ins. Co., (S Gill (S: Johns (Md.) lOG; expected profits, the danger of loss by dishonesty; fraud and theft; or, by the non-pay- ment of rent, interest or income; or, by the inval- idity of title : May on Insurance, 2 ed. 79, 80. A contract for employment at a fixed salary for a certain time gives the employed an insurable inter- Kiiiancial loss. 42 Insurance Corporations Act. f1iS°h ^^^ ^^^ ^^^ ^^^^ °^ ^^^^ employer: Hebdon v. West, 3 2 (13) b. B. & S. 578. Choma;/* iiiBurahce. Ik c I-- .:; C •!» — r rv -I •<»■ ., ■'•» . ■■:m • Under tliis group of contracts falls Chomage insurance, first introduced in France and applied to the insurance of workmen's wages during the time needed for repairs in the event of compulsory stoppage of work by the occurrence of fire. It was subsecjuently extended to merchants, manufactur- ers and others, to cover consequential damages arising from the occurrence of fire, not covered by ordinary fire insurance, such as loss of revenue from capital, plant or machinery, etc., caused by destruc- tion of the property of the insured, who may thus hold simultaneously a regular fire policy upon buildings, stock or machinery, and another entirely distinct upon the same property, but based upon the productive value of such property, and the average yearly income derived therefrom, upon which interest at a certain rate per ceiit. (usually six to ten) is guaranteed by the policy from and after the fire, dining such time, as from the cir- cumstances attending the loss, the capital invested may remain totally or partiall}^ yet compulsorily, unavailable to the insured, as in rent or lease policies, which represent the principle exactly. There can be no chomage insurance without a corresponding fire insurance upon the property. The amount of chomage insurance is always limited to the existing amount of the fire insurance. This principle is tne foundation of mortgagee, rent and lease policies, policies on profits, income or commissions unearned, and insurance of produc- Definition.^ and Interpretation. 4:J tion at mills under contracts af,'ainst failure to till J^J^J such contracts, when such failure was caused by fire: Grisvvold, Fire Underwriters' Text Book, 2 ed., 9. Tenants have an insurable interest in the rent »<'"»t- which they are liable to continue paying after the premises are destroyed by lire: Goulston v. Koyal, 1 F. (& F. 276. But if the contract of tenancy relieves them from liability, they will not have an insurable interest. A Trustee has an insurable J^^Vmeys. interest in his trust moneys and revenues : Tidswell V. Ankerstein, Peake 204. An insurance may be effected on protits to !'»""'«• arise from the sale of goods, provided the insured have an iii^urable interest in such goods : McSwiney V. Eoyal Exchange (1849) 14 Q. B. 046; see also Stockdale v. Dunlop, 6 M. & W. 224; Stock v. luglis, L. R. 10, App. Cas. 263. The profits of a business may be insured on the principle of their forming an additional part of the value of the goods, but they must be insured qua profits, and cannot be recovered merely as an accidental part of the loss: Sun Fire v. Wright, 1 A. & E. 621. For insurance of profits on an adventure, see Wilson V. Jones, L. K. 2, Ex. 139; of profits on cargo, see Eyre v. Glover, 16 East 218, Barclay V. Cousins, 2 East 546. uisuraiices. Companies in England undertake contracts pti'er insuring the holders of mortgages and other securi- ties against loss of principal and interest, and other business of a kindred character; insuring 44 liisiinince Cori>'>rafi(iu.s Act. Section 2 (12) b. c c lioiiistatc- IIK'llt. C \- 7. C- ■■1.: l)()ii(ls, slifirt's and other sccui'itics Iodised witli tlic coinpaiiy a<^Minst risk's of all kinds; insuring' a^Miiist loss arisiii<^- from l)ur« IJennett 870. Jn this case tlie damages wt^re measured hv the amount of the polic^' and intei'esl, and the rental \alue of the «^round durin*;' the time of the delay caused by the act of the company. In ])]ate •^lass insurance, reinstatement is the ordinarv fulHlment of tlie company's ol)li^'ation. The method •gener- ally followed in plate ^lass insurance is to under- take to make ^ood all hreakaj^es, the companies being entitled by way of salvage, to the broken glass. ('/) Contracts of endowment, assessment-endowment, ton- tine, semi-tontine, life-time benefits, annuities on lives; or contracts of investment involving tontine or survivorship prin- ciples for the benefit of persisting members; or any contract of investment involving life contingencies: and Endowment insurance policies are issued inE,n,ow- two general forms: (a) ordinary endowments; (/j) iusuran.«e. limited payment endowments. In an ordinary endowment contract the policy is made payable to the assured in ten, fifteen, twenty, twenty-five, thirty or thirty-five years after the date thereof, provided he be then living to receive the money; or, to his estate, or some beneficiary named, at the death of the assured, should it occur sooner. Premiums must be paid every year, less the divi- dends, if any, during the entire endowment period selected. For a limited payment endowment the .3 46 In.snrtiNce CorporafioHs Act. 4 "i" ^ Si t C c r> v- C- :-■. 5 ', 2(?!i°d ^'<^i'ii^ of the contract are precisely the saiiie» except tliat the [)reiiiiiiMis n • nil h(* pjiiil in a less time than that luiuied i.i tlio pohcy or the endowment period. For examph», a twenty-year endowment may be paid for in ten or fifteen, or even five years, or in one sin^^de preminm. A special form of endowment contract, known as a reducible term endowment, is undertaken by some companies. The endowment is expressed to be payable at age seventy, or at death, if death occur during the continuance of the policy, and before the completion of the term, but the profits, if any, are applied in extinction of the latest year's premiums, and so on, in order to hasten the termination of the endowment period. Endow- ment insurance combines insurance with invest- ment; and, according to the point of new, is a contract of insurance simply: Briggs v. McCul- lough, 30 Cal. 550; Carter v. John Hancock Mutual Life Ins. Co., 127 Mass. 158; or a contract of investment involving life contingencies. Asscssuiout Hiidowment see s. 2(14) in/'rn. The only provision in the Act admitting Friendly Societies to transact endowment insur- ance is contained in section 4 (2) C. Proviso (a), vide iiifra, which provides that upon proof by a Friendly Society duly incorporated, organized and operated under the law of Ontario, or of Canada, before the eleventh day of March, 1890, that the society was at the said date transacting exclusively with its members endowment insurance in Ontario bonajide, and has so continued up to the date of application for registry, the Registrar shall have Dt'Jinitiiin.s rpoiatiun.s Act. Toiitiiip and tti'iiii tlllltitlC c c c c. a'ajfjd" '*" ^'••' ''^'*'^ **^ minor cliildrcn iimst ((Hifonii to the rciniiri'incnts of section M/j infra. Toiitiiu' politics MIC issiu'd in any usual form, sncli as ordinary lift.', limited paymiMit life, oj* endowment })oli(ies. They are issued at the usual rates of premiums, and the nnlv diflcrence between such policies and ordinary policies lies in certain peculiar stipulations. 'J'he first stipulation is as follows : — " No dividend shall he allowed or i)aid uj)(»ii this policy initil the person whose life is insured therehy shall survive the completion of its tontine dividend period, and unless this [xtlicy shall then he in force." The period referred to is either ten, tit'teen, or twenty years, accordin*^" to the choice i ade by the policy-holder in his ori<,dnal application. 'J'he effect of this stipulation is that each premium must be paid in full in cash, durin*^ the tontine period, without bein^^ reduced by divi- dends. The second stipulation is: — "Previous to the completion of its tontine dividend period, this policy shall have no surrender value in a paid np policy or otherwise." The effect of the stipu- lations above quoted is to produce savings to the company, first, in not paying out dividends, and secondly, in not issuing paid-up policies in case of lapse. The value of such savings, with their accnnnilations, is credited to the tontine policies which complete their respective periods. Serni-tontine policies form a separate variety, being like tontine policies as regards withholding dividends, but enjoying the same privileges as ordinary policies, in case of lapse, as regards paid-up insurance. prJiiiifidHs tuid Infrrju'cfiiflon. W) t An Mccomit is kept by llie coiiipjiny from vcmi* •ial siiviii'^s (lori\t'"'t- that of a creditor, not of a cestui que trust: Bofj^ar- dus V. New York Co. (IHHO) K)l X. Y. 82H; Avery V. iMpiitable Life Ass. Society (Ls89) 117 N. Y. 4.51. AVhere the policy contained the term that the company would pay to the plaintiff the sum of S8,(X)0 together with his full share of all the profits, it was held that the policy holder had no right to call for an account ; but he was bound to ac(iuiesce in the discretion of the actuary and directors h())ia fide exercised and to take his share of what is allotted or apportioned as divisible surplus: Bain v. .Etna Life Insurance Co. • H.I.C.A — 4 1 oO Insurance Corporati'tnH Act. i - c c ?(i2)d. (1^^^) 2^ (^- 1^- 6 (ii^ appeal; and, in addition to the cases cited there, Uhbnan v. New York Life Ins. Co. (1888, New York C. A.), 17 Northeast. Rep. 8()3 ; bnt see contra,, Pierce v. Equitable Life Assurance Society (1888) S. J. C. Mass. 18 Ins. Law Jour. 110. In this latter case the policy provided ''that all the surplus or profits derived from such policies on the tontine savings assurance plan as shall cease to be in force before the com- pletion of their respective tontine dividend periods, shall be apportioned equitably amouf^ such policies as shall complete their tontine dividend periods"; and it was held that the policy holder was entitled to an account. Survivor- sliip. Contracts i)t' invest- ment. In contracts of investment, tontine or survivor- ship principles are involved for the benelit of persisting members in all cases in which the member must survive to take the benefit or the entire benefit of the contract, i.e.,, where the benefit is personal to the member himself; and, in the event of his death before the benefit attaches, some advantage accrues to the surviving or per- sisting members. The intent of clause (f) of this sub-section is wider. It is sufficient to bring a contract of investment within (f) that the pay- ments made by discontinuing members accrue to the benefit of persisting members. Survivorship is not a necessary element ; for the benefit may accrue to the legal representatives of the member. An example of a contract of investment involv- ing life contingencies is the following certificate of a building and loan association: — "The D. B. and Definitions and Interjiretation. 51 L. Association agree to pay said shareholder or his 5!i2°?. heirs, executors, administrators or assi^nis, the sum of SlOO for each of said shares at the end of eight years from date hereof, or in case of his death prior to the expiration of eight years, the association will pay the sum of all monthly instalments paid on this certificate with interest at o per cent, per annum, payable in the manner and upon the con- ditions hereto attached." Whether the shareholder is entitled to the maturity value of the share, as shown on the face of the certificate, or to the amount of the instal- ments he has paid thereon improved at interest, depends upon his living until the period of matu- rity is reached. If the rights of the investor or member under a contract of investment are different according as the member does or does not survive, it is evident that the contract is one that involves a life contingency. Such a contract is a contract of insurance and within the intent of the Act. f I' / Any contract made on consideration of a premium and based on the expectancy of life ; or any contract made on such consideration, and having for its subject the life, safety, health, fidelity, or insurable interest of any person, whether the benefit under the contract is primarily payable to the assured or to his nominee or assign, or to his representatives, or to, or in trust for any beneficiary, or to the assured by way of indemnity or insu- rance against any liability incurred by him, by or through the death or injury of any person; and Fidelity insurance, in its ordinary sense, is the Fidelity giving of bonds to employers by insurance com- '"'""'"*'''■ panics to indemnify them against pecuniary )2 Insurance Corporations Act. Section defaults of employees. Such bouds are made for 2 (12) e. L J periods not to exceed twelve months, and the bonds stipulate that the default nuist occur within the actual period covered by the bond, or by any renewal of the bond, or within a limited period after the expiry of the bond or of any renewal thereof. Usually the perod of grace does not exceed three months. Employer' liability insurance. c t c c h mm- . or ';fH}' This class (e) includes employer's liability insu- rance, and the insurance of workmen by collective policies against accidents for which the employers are not legall}^ liable. Under one description of policies, employers are indemnified against liability incurred, both under the Workmen's Compensation for Injuries Act up to the limit of three years' wages specified in that statute, and at common law. Such policies also indemnify the emploj'er against all costs incurred in defending actions brought by workmen for injuries sustained in his service. The premiums are calculated on an estimate of the annual wages paid by the employer. Very many accidents which occur during employment are such that no compensation can be recovered against the employer. Joint policies are, therefore, granted to give the full indenniity under the Act and at com- mon law as before mentioned, and also give com- pensation in all cases of accident during employ- ment for which the employer is not liable. Many employers extend their insurance by joining with their workpeople under this system, so as to provide for every accident during employment. The usual benehts under these joint policies to Dcjiiiitioiis (iNfl Interj'retdttoN. .5:5 employees are one year's wa^es, liiniced to a g^^JJJ^j certain anionnt in case of death, and one-third of the weekly wa«^'es (not exceeding twenty-six weeks) dnring total disahlenient. The preminnis fiM- these policies are paid in fnll by the employer, who, by arrangement with the workpeople, deducts from their weekly wages their contributions. (j) Any investment contract under which lapses, or pay- ments made by discontinuini,' members or investors, accrue to the benefit of persisting members or investors, except where a corporation other than an insurance corporation is expressly authorized to undertake such contract by a statute in force in Ontario: and A policy is said to "lapse" if the premium is lapses, not paid when due. A policy is "forfeited" when one or more of its conditions of non-forfeiture are violated. Certain investment contracts have so far adopted insurance principles that payments made by discontinuing members or investors, accrue to the benefit of persisting members or investors. \Yhen this is the case the contract for the purpose of the Act is treated as an insurance contract, except where a corporation, other than an insurance corporation, is expressly authorized to undertake such a contract by a statute in force in (3ntario. Thus, a building society may declare forfeited to the society the shares of a member who is in default, or who neglects to pay the number of instalments or monthly subscriptions fixed by any stipulation or by-law: R. S. O. 1887, c. 169, s. 85. A joint stock company, likewise, may forfeit for non-payment of a call any shares where- on such pa3^ment is not made, and the shares -t I- c c c u 3 \- » J' ■> or.-, 54 lnHUVdnce Corj/oratioNS Act. section thereupon become the property of the company : ^^-R. S. O. 1887, c. 1.50, s. 28; K. 8. C. c. 114, s. 41. (//) Generally any contract in the nature of any of the fore- going whereby the benefit under the contract accrues payable on or after the occurrence of some continjrcnt event. other insurance oontnicts. Marrifl /^e a contin- gency. The foref(oing f,'roups of insurance contracts are not mutually exclusive. A particular con- tract may fall within two or more of the classes. Likewise, the enumeration of contracts is not exhaustive of all insurance contracts. Where the contract is in the nature of any declared by the preceding classes to be a contract of insurance, and the benefit thereunder is payable on or after the occurrence of some contingent event, the contract is for the purposes of the Act a contract of insurance: cf. 1\. S. 0. 1887, c. 167, s. 2 (4). Marriage is such a coutingenc3% so as to bring the contracts of a society undertaking co pay a sud^ at marriage of the member within the definition of contracts of insurance. In one marriage endowment society the object of the society was declared to be "to unite accept- able young people in such a wdj as to endow each with a sum of money, not to exceed $6,000, to be paid at marriage or endowment, according to the regulations adgpted." The certificate provided infer alia "that no member will be entitled to any benefit whatever, who marries in less time than three months from the date of his certificate," and that "every member who shall have been in good Definitioits and Interpretation. 55 Section 2 l-J) g. stuiicling for at least three months prior to his inarria<»e, shall be entitled to J$40 per month upon each 5ii>l,000 named in his certificate, for each whole month of his membership, provided that the same shall never exceed $8,000, or so nuich thereof as shall be realized from one marriage assessment of all the members of this class"; Jield that the contract is not a marriaf,^e brokerage con- tract, but is void on i^rounds of public policy as contract ', , " . L tr J void on operating in undue restraint of marriage, by offer- f^',']'/,';'^^' "^ ing an inducement for its indefinite postponement : *"''"^^" White V. Equitable Nuptial Benefit Union, 70 Ala. 251 ; see also /// re Mutual Aid Association for Unmarried Persons, 15 Phil, lieports ()25; /;/ re Helping Hand Marriage Association, 15 Phil. Reports 644. Certain other contracts based upon the probabilities of marriage, are deemed to be wagering contracts, and therefor void. Thus, where an association issued a contract agreeing to pay a certain sum at the end of two years, upon the condition that the member should not marry withm that time, or, if he did marry, then to pay him an agreed sum per day for the time he remained single after the contract was entered into, the contract was held to be against public policy and void. Xor had an assignee thereof any better claim: Chalfant v. Payton, 19 Ins. Law J. 175. ii It I insurance terms. Insurance terms are terms of art, and the 1^^<'*'"»k "' meaning of the parties by the use of particular terms must be ascertained by recourse to contem- poraneous insurance literature: Fuller et al. v. 5(3 Insurance Corporations Act. Yaa^ ^retropolitfin Life Ins. Co. ct ah (U. S. C. C. Feb. ^-1889) 137 Federal Eep. 1()8. c t c c C.:-i 5- -^ eori>om^° (I'J) "Insurance Corporation," or "Corporation" simply, tion. includes any corporation which undertakes, or offers to under- take a contract of insurance svithin the meaning of the pre- ceding sub-sections. ''Every licensee licensed under or by virtue of The Insurance Act of Canada shall be deemed to be a corporation for the purpose of registration": section G (2) in part, infra. A society duly incor- porated under Tlie Friendhj Societies Act, l87o, (Imp.), or any Act consolidated thereby, or any amending Act thereto, is deemed to be duly incor- porated for purposes of registration ; proviso under section 10, infra. \Yhether a corporation is within the intent of this Act is seen by the character of the business transacted. If the corpor- ation undertakes, or offers to undertake, contracts within the meaning of section 2 (12) su2:)ra, then the corporation is an insurance corporation, and subject to the provisions of the Act. Offeriiif; to undertake contracts. Offering to undertake contracts of insurance includes any setting up of a sign or inscription containing the name of the corporation, or any distribution or publication of any proposal, circular, card, advertisement, printed form or like document, in the name of the corporation, or any written or oral solicitation in the corporation's behalf, or any collecting or taking of premiums of insurance: section 2 (4), supra. iJi'Jinitions and Intcrpretntiou. o< surance "Insurance Fund," or "Insurance Funds," as annlieil to Section 2 (13). any Friendly Society within the meaninji,' of sub section 1 ot — 1— . . . 11, . . , • .1 luKiiraiici' this section, or as apphed to any corporation not incorporated khh.i or exchisively for the transaction of insurance, inchides .dl moneys, Fumis. securities for money, and assets appropriated hy tlie constitu- tion, by-laws, or rules of the society to the payment of insurance liabilities, or appropriated for the management of the insurance branch or department or division of the society, or otherwise*^; legally available for insurance liabilities. y When the corporation is not or<^anized exchi- ^^ - ^-v^^ sively for the transaction of insurance, but a branch or department of the corporation has such insur- ance in char<2;e, the insurance fund, as above defined, nuist be kept a distinct and separate fund from the other funds of the corporation; JUid j,,^,,^.,^,,^^^^. distinct and separate books, accounts and vouchers [vustVui. must be kept of the insurance fund: section 2 (4) proviso (a), supra. If the insurance fund of the corporation is hekl otherwise than as a trust fund for the members, the corporation is not eh<^il)h^ for registration as a friendly society under tiie Act: section 4 (2) D. infra. "The insurer" means the corporation undertaking the 'i'Uo iabuier contract of insurance, or of reinsurance, as the case may be. "The assured" means the person whose property, li^'^N Jgsured safety, health, fidelity, or insurable interest is insured. '* Assurance" and "insurance" have long* been used as synonymous terms. Recently, however, "assurance" has been used in England in relation to life contingencies, and "insurance" in rela- tion to other contingencies. It is convenient to describe the person whose insurable interest is in- sured as the assured, whether the subject matter % r,H 11 In UK ranee Coyporatlon^ Act yjiir ^* ^^^^ insurance be life or other contii.^^ency ff. section 1-35 (2) iufrd. 't^/^/ty ijct. (►->•■ 4*'^ •» ->.-•! ^^'- c c R. S.C.c. 124, s .ii'. u c U .,! ^ 3 ,„:.■;,■:■'-■ K C-- «i^ -. ■ . »*• . ^ cy.-.:"i or:^ • ; R. S.C.c. :i 124, s, ,Sf). Assess. (^"^) "Assessment Insurance," or "Insurance on the Assess- J,"^"f,J"\„. ment System," includes any contract in which the premium, Insurance n^t heiug a premium note authorized hy any statute in force in ^^Mi^ Ontario, consi.sts of sums uncertain or variahle in time, number pyptcni. or amount; and also any contract whereby the benefit is in any manner or degree made dependent upon the collection of sums levied upon persons holding similar contracts, or upon members of the contracting corporation ; In assessment insurance, either one or other, or both, of the following elements are present: (i) The premium consists of smns uncertain or variable in time, number or amount. This is true of the corporations authorized to transact assessment insurance under section 89 of The Inmrancc Act of Canada, vide section G (2) infra, (ii) The benefit or insurance moneys payable by the corporation under the contract, section 2 (10) supra, is made dependent upon the collection of sums levied upon persons holding similar contracts,- or upon members of the contracting corporation. This includes the definition of assessment life insurance companies in The Insurance Act of Canada, as a company carrying on business of life insurance by promising to pay on the death of a member of such company a sum of money solely from the proceeds of assess- ment or dues collected or to be collected from the members thereof for that purpose. Therefore a contract is none the less a contract of insurance, "because the amount to be paid by the corporation is not a gross sum, but a sum graduated by the number of members holding similar contracts; nor JJi'Jinifions und Infer}tret(iti««inii.c». '^ _ "^ oil plum- such insurance is authorized by any statute ini"'"""^'' force in Ontario, is not, for purposes of the present provision, assessment insurance. This ex- cludes from the definition the insurance transacted by mutual and v^^ash mutual lire insurance com- panies : R. S. O. 1887, c. 1(57, s. 122 (1), and by nuitual live stock insurance companies : 52 ^'ic. c. 38 (0.) s. 01. While in one sense companies transacting business on the premium note plan are transacting assessment insurance, inasmuch as the notes are assessed for th^^ losses and expenses of the company, yet there is a clear distinction between mutual (including fire mutual) companies and companies undertaking contracts within Mie definition of assessment insurance on the one hand, and between mutual companies and friendly societies on the other. And this distinction, it is proper to observe, although in the United States, mutual insurance is sometimes used as svnonvmous ; I 00 ki c t c c u _ > 5- ^ Section 2(U). Mutual Ills. Co,: AsHONHiiiunt Ills. (I) , and Fric'iid- ly Hocioty. Policy holders' liability. Amount payable. ludKi'dnce Corporntluiis Act. with assossmoii't insuraiico. In Wyv iiiutuuls the preiiiiuiii of the assured is the prcmiiini note, or his uiulcrtakiii^" to ]M\y assi'ssinonts tlicreon in the event of loss while the iiisuraiice is on foot, or (lurin.L,^ the currency of the premium note. The assured is liahle to the full extent of the face of the note ; he may not withdraw: U. S. (). issT, c. 1()7, ss. 124, 12."3; -VJ Vic. c. 14 (().) s. 4. Under the contracts of companies insnrin<; on the assessment plan, the whole amount that the assured may have to pay if he desires to continue the insurance, cannot he lixed l)eforehand ; hut the premiums consist of sums variahle in time» numher or amount, and tlu' liahility of the as- sured, apart from special a<^reement, is within the control of the assured. He may decline or neglect to pay further assessments, and so he may lapse the policy. The liahility of a memher of a friendly society, under his contract, at any date is limited expressly to the assessments of which at that date notice has heen actually given hy the society. By tendering payjnent of such assess- ments and giving notice of withdrawal he becomes released from all further liability under his con- tract : section 39 (1) and (2) infra. Again, the amount payable under the contract of the mutual company is not in any way dependent upon the amount realized by the assessment. If the com- pany cannot pay its losses in full, it is insolvent; the license of the company to transact business becomes void, and the company goes into liquida- tion: K. S. 0. 1887, c. 1G7, s. 46. Assessment life insurance companies under section 38 of The Insur- Drjiiiitnius (lu'l Intt rjHrtdfiini. ()i itncc Act of Canadii iimv traiisac-t tho l)usiiu'ss of ^*^"°" lite insurance by proinisin*,' to pa}' on the deatli of a member a sum of money solely from the proceeds of assessments or dues collected from the members for that purpose. If the assessments do not realize the maximum named in the certiticate, the claim of the holder abates: 1{. S. C. c. 1-24, ss. :}(>, :J7 and 8S. Similarly the c-ompanies authorized undei' section 89 of the same Act to transact life insu- rance on the assessment plan do not contract to pay a sum certain, but are permitted to carry on business so long as the company continues to pay its losses in Canada to tlie full limit mimed in its certirtcates: li. S. C. c. 1-24, s. M) (-2) and see notes nnder section (> (2) infra; section 41 (2) 'mfra. The amount payable nnder the contract of a friendly society is, like\yise, (with perhaps, one or two exceptions) dependent upon the collection of sums levied upon persons holding similar con- tracts, or npon members of the contracting corpor- ation. The maximnm amonnt indicated in the contract is merely the prima facie amonnt payable by the society: section 41 (1) infra. Mutual companies are reqnired by law to main-Resene. tain a reserve snfiicient to reinsure all ontsttmding risks. In the case of tire nuituals, such reserve may consist of premium notes, but in certain tire nuituals, and in all life nuituals, the reserve must consist in part of cash or cash securities deposited with the Provincial Treasury: K. 8. O. 1887, c. 107, ss. 40 (4), 101). If it appear that the com- '? 02 lufiiinmce Conturatiuns Act. Hectlon 2 (14). ^ ■— •' f c c c U 3 c - j)!iny bo not uctiiiirily solvtMit, see section 2 ( Ifi) infra, the uutliority to tnuisjict hnsiness is with- (Iniwn: It. S. (). 1887, c. 1()7, s. i[.\. While coni- pjinies transacting' Hfe insunmce on the assessment phm nniler the provisions of TIk; In.stinince Ait of (Jantuhi, are not recpiirod by hiw to maintain the res(;rvG which is re(|nire(l of ordinary hfe companies: K, S. C. c. 124, s. :JI) ((i). Mntnal companies are snhject to government ins{)ection and audit: U. S O. 1887, c. 1()7, s. 140. Assessment c ompanies are n(/t exempt from the provisions of 'llw Insnnuice Act of Canada, rehitin^' to inspection: 11. S. ('. i)oi.o8it. c. 124, s. ;J7; hut, with the exception of forei«^n assessment companies, are exempt from makin«( the deposit recpiired of ordinary companies: H. S. C c. 124, ss. 37, >V.}. There is no government audit or inspection of friendly societies; nor is such a society permitted to make a deposit : see ififrd section 22 (1). ProviHos. Provided, that any assessmeiu insurance undertaken or transacted under the authority of Ihc Insunmce Act of Canada, shall be deemed assessment insurance for purposes of this Act ; Certain domestic and foreign corporations are empowered under The Iiifni ranee Act of Canada to transact the business of life insurance on the assessment plan: li. S. C. c. 124, ss. 88 ct 30; see, also, section (> (2) infra. Provided, also, that every application, contract, or other instrument of such insurance, and every circular, advertisement or publication, soliciting insurance issued or used in Ontario for purposes of assessment insurance, shall bear the words "Assess- ment System" printed or stamped in large type at the head JJt'fiuitioHH ami Ififrrjirctdfion. ():{ 11 '2 (l()) is ^vith- iilt» c'oin- iossnu'iit ce Ait of itain tlie [n[)iinit's: lilies are 1 audit: jiiipaiiics R. S. ( . »f foreign 1 inakin^^ : R. S. C. eut audit is such see infra n-taken or of Canada, this Act ; ions are inada to on the 8 & 39 ; or other krtisement mtario for " Assess- ithe head thereof; ami any contravention ot this suh-st'ction shall I r Section punishahle as for an olVence a^minst section 27, all the provi- sions of which section shall equally ai>i>ly to an oHenco coinniitletl nj^'ainst tins sub-section. 'IMiis ciiactiiKMit is cuucurrt'ut with sections 11 and ['2 of TJte Insiirnncc Act of Canada. ''The words 'assessment system' shall he printed in lar^'e type at the head of every policy, and e\er\ application for the same, and also in every circular and advertisement issued or used in Canada in connection with the husiness of a company to which any of tlie provisions of tiie i'lw sections next preceding" apply": \i. S. ('. c. I'ii, s. 11. Section [2 of the same Act imposes a penalty for infractions of section 41. • If the contracts of a friendly society fall with- ii'V.V.'ll'^' in the definition of assessment insurance, as ^iveUiSaocL above, this proviso makes it a statutory duty, binding' upon the society and its ofhcers, to have printed or stjunped the words " assessment system," in laristra- tion. Unauthorized transaction of insurance renders the corporation, its officers and agents liable to penalties, section 27, infra, see also sec- tion 60 ; and in any trial or proceeding under the Act, the burden of proving registration is upon the corporation or person charged : section 27 (-5) infra. The only exception to this general enact- ment is the case of the assurance fund formed under The Land Titles Act, for the indenniity of ' . -^ Land any person who may happen to be deprived of land '^'""^ '^'''• or some estate or interest therein, by reason of the land being brought under the provisions of TJie Land Titles Act, or by the registration of some other person as owner of tJie land, or of such estate or interest therein, or by reason of any misdescrip- tion, omission or other error in a certiticate of title, or in any entry in the register: K. S. O. 1887, <:. IIG, s. 109. A certificate under the hand of the Registry Proof of registry. Officer and the -^eal of his office, that on a stated day the corporation or person mentioned therein stood registered or did not stand registered within the meaning of this Act, or that the registry of any corporation or person was originally granted, or was renewed, or was suspended, or was revived, or was revoked, or was cancelled on a stated day, is prima facie evidence in any court or elsewhere of the facts alleged in the certificate : section 20 (-5) infra. W I 72 Insurance Corporations Act. Illegal iiiBuranco. C c c u 3:- I — Section Unauthorized insurance is illegal and penalties are imposed thereon. The enactment of a penalty avoids the contract, the making of which is visited with a penalty : Smith on Contracts, 258. If an illegal insurance be effected, the parties being in jyari delicto^ the assured cannot recover in the event of loss, nor can he recover the premiums paid: Alkins v. Jupe, L. K. 2 C. P. D. 375; see also Andree v. Fletcher, 3 T. K. 206 ; Cope v. Eowlands, 2 M. & W. 149, 157 ; Perry v. New- castle District Mutual Fire Insurance Co., 8^ U. C. K. 363. If the company to which a note is given for a premium is not duly authorized to transact insurance, the company cannot enforce payment : Lycoming Fire Insurance Co. v. Wright, 55 Vt. 526. Or if on other grounds the contract was an unlawful one, the company cannot recover on a promissory note given for a premium: lius- sel V. De Grand, 15 Mass. 35; Heller v. Crawford, 37 Ind. 279. If the risk has been run and no loss occurred, the assured cannot recover the premium paid. For the contract has been executed and the parties are in pari delicto : Lowry v. Bourdieu, 2 Doug. 468 ; Patterson v. Powell, 9 Bing. 326, 620; see also Herman v. Oeuchner, L. E. 15 Q. B. D. 561. If the risk has not been run and the contract continues executory, the assured may, not- withstanding the illegality of the contract, obtain a return of the premium: Lowry v. Bourdieu, 2 Doug. 468. The assured should give notice to the insurer of his intention to abandon the contract : Palyart v. Leckie, 6 M. & S. 290. The Corporation liegisters. 7:3 Lawful contracts entered into before the passing' sectiona ^ o 3-4 (1). of the Act are not invahdated: section 4 (;2) C. pro- ,;r,ji«tiVi7* viso (b), infra; nor is a resident of Ontario prevented ar"m?un. from contracting,' abroad for insurance with, and'"'''^" sending his premium to, a foreign unregistered cor- poration. The locus contractus being without the jurisdiction the contract is not subject to the Act* Neglect to register on the part of insurance cor- Jjjli^^'J porations, incorporated by or by virtue of a statute of Ontario, constitutes, ipso faclo^ the treasurer or other proper officer interim receiver, section 58 (1), infra ; and, by the procedure provided in the Act the assets are realized, the liabilities discharged, and the surplus distributed among those entitl /d : section 56, infra. eci lO The Coivi'OEATioN Registeks. •1:, Two registers shall be opened and kept as follows: (1) A register of corporations licensed to transact insurance by license issued either under The Ontario Insurance Act, or under The Insurance Act of Canada, n.nd registered under this Act; this register, which may be known as "The Insurance License Register," shall be kept in the office and under direction of the Inspector of Insura:>ce. Entries on the Insurance License Register are : The names of the corporations found by the Registry Officer legally entitled to register ; the term for w4iich the registry is to endure, ending not later than the 30th day of June next ensuing, except in the case of licensees of the Dominion of Canada ; the place where the head office, and chief agency, if any, are situate ; the name and Two ICRIS- ters to bi> kept Insiiraiico License liegister. Entries ou register. 74 Insurance Corporatiom Act. ^^l^(^^ address of the chief af,'eiit, if any ; the kind or character of insurance for which the corporation is registered ; and, if darin^^ the term, its registry has heen suspended or revived, or revoked, or cancelled, the date and authority for such suspension, revivor, revocation, or cancellation : section 18 (1), infra. A copy or an extract from the liegister, certified hy the Begistry Officer to be a true copy or ex- tract, and sealed with the seal of his office, in prima facie evidence of the same legal effect as the original in any court or elsewhere : section 20, ss. (0) and (7), infra. c c c I? Licensees «'■ unincorporated, or any partnership, or any under- writer, except as provided by section 8, that undertakes or effects for valuable consideration, or agrees or offers so to undertake or effect, in the^-^'^* Province, any contract of indenniity, guarantee, suretyship, insurance, endowment, tontine, or annuity on life, or any like contract which accrues payable on or after the occurrence of some contin- gent event :" R. S. O. 1887, c. 107, s. 2 (4). h 80 Insurance Cor^porations Act. c t c c VS)°A *' Contract" means and includes any contract or agreement, sealed, written or oral, the subject K- SO- 1887, matter of which is within the intent of sub- c. 167,8 2(6) section 4: K. S. 0. 1887, c. 167, s. 2 (6). *' Except companies licensed by the Treasurer, and companies specified in section 3, it shall not be lawful for a company to undertake or effect or solicit, or to agree or offer to undertake or effect, any contract within the intent of section 2, whether s. ryr,. the contract be original or renewed; or, to accept, or agree, or negotiate for any premium or other consideration for the contract ; or to prosecute or maintain any action or proceeding in respect of the contract, except such actions or proceedings as arise in winding up the affairs of the company under section 7 :" E. S, 0. 1887, c. 167, s. 55. S.3 "The provisions of this Act shall not apply: — ** 1. To a company licensed by the Dominion of Canada, except as to sections 114 to 120 inclusive, which shall apply to all fire insurance companies transacting business in Ontario. *'2. This Act shall not apply to any corporation standing registered on the Friendly Society Regis- ter, pursuant to The Insurance Corporations Act, 1892:'' R. S. 0. 1887, c. 167, s. 3, as amended by The Insurance Corporations Act, 1892, section 21 (1) infra. Only corporations which are not required by law to be licensed are entitled to registry on The Friendly Society Register: vide notes section 4, Not Entitled to Begister. 81 ontract subject Df sub- 3asurer, I not be Sect or effect, whether accept, )r other ecute or it of the imgs as jompany 65. - ppiy •■— linion of chisive, [mpanies )oration Regis- ms Act, |nded by )tion 21 by law )n The ;tion 4, (2), s. 8, infra. This Act, section 4 (2) D, mfra, in- 1^^°^ terprets the phrase " required bylaw to be licensed j-^^— — for the transaction of business " to include any joint beiKnsed. stock corporation, or any corporation which in effect is the property of the officers or collectors thereof, •or which belongs to any private proprietary, or which has less than fifty members in good standing on its books, or which is conducted as a trading or mercantile venture, or for the purpose of commer- cial gain, or the insurance funds of which are held other than as trust funds for the members. Although certain corporations are thus deemed to be required by law to be licensed for the trans- action of insurance, it does not follow that because the corporation requires license, it will receive license. For there is no provision in the law of Ontario for licensing certain insurance corporations, e.g. foreign mutual life companies. If any such corporation obtains license from the Dominion of Canada, the license entitles the corporation to registry on the Insurance License Register of Ontario. Similarly, the Insurance Act of Canada enacts : ''No company or person, except as hereinafter provided, shall accept any risk or issue any policy of fire or inland marine insurance or policy of life insurance, or grant any annuity on a life or lives, or receive any premium, or carry on any business of life or fire or inland marine insurance, in Canada — or prosecute or maintain any suit, action or pro- ceeding, either at law or in equity, or file any claim in insolvency relating to such business, H.I.C.A — 6 The IiiKur- ance Act of Canaan, B. 4 82 Insurance Corporations Act. c c c u The Insur- ance Act of Canada, S.31 8. 49, ¥?2)°A without first obtaining a license from the Minister to carry on such business in Canada:" R. S. C. c. 124, s. 4. " No company shall, without being licensed or registered under this Act, carry on within Canada any business of life insurance by promising to pay on the death of a member of such company, a sum of money solely from the proceeds of assessments or dues collected or to be collected from the mem- bers thereof for that purpose:" R. S. C. c. 124, s. 36, in part. " No company or person shall issue any policy other than a life, fire or inland marine insurance policy, or receive any premium in respect thereof, or carry on any business of insurance other than life, fire or inland marine insurance, without per- mission obtained from the Minister, who, with the approval of the Governor- in-Council, shall deter- mine in each case whether such permission shall be granted, and whether a license is proper or neces- sary to be issued, and whether any and what deposit shall be required to be made with the Min- ister, and the sections of this Act which shall apply to such company or person:" R. S. C. c. 124, s. 49, in part. "The provisions of this Act shall not apply: — "To any company incorporated by an Act of c,*2f:^DS.h the Legislature of the late Province of Canada, or by the Legislature of any Province now forming part of Canada, which carries on the business of insurance, whollv within the limits of that Pro- vince by the Legislature of which it was incor- S.3 (c) as amended Not Entitled to Register. 83 [inister nsed or Canada r to pay ', a sum ssments le iiiem- . c. 124, ly policy Qsnrance , thereof, ,her than lOut per- with the 11 deter- shall be r neces- Lid what he Min- ,ch shall . S. C. lapply.— li Act of ^nada, or fornhng uness of liat Pro- LS hicor- porated, and which is within the exclnsive control 4®°2u of the Legislature of such Province:" R. S. C. — c. 124, s. 3 (c), in j^cirt, as amended by 51 Vic. c. 28 (D.), s. 1. "Nothing in this Act contained shall apply to?'/.,^ /'W" o irrj ancr Act of any society or association of persons for fraternal, ^^/.f^*- benevolent, industrial or religious purposes, among which purposes is th- rnsurance of the lives of the members thereof exclusively; or to any association for the purpose of life insurance, formed in con- nection wdth such society or organization, and exclusively from its members, and which insures the lives of such members exclusively:" R. S. C. c. 124, s. 43. This exception does not extend to the transac- la,ii,[af' tion of insurance other than life insurance. Thus .i';/ a/'i^ll! in a case under The Insurance Act of Canada on an information '' that one C. 8. unlawfully did carry on the business of insurance, other than life, lire, and inland marine insurance, that is to say, the business of accident insurance on behalf of The International Fraternal Alliance, an insurance company within the meaning of section 2, chapter 124 of the Revised Statutes of Canada, with- out permission obtained from the Minister of Finance and Receiver-General of the Dominion of Canada, and without the license required by law in that behalf, and contrary to The Insurance Act, Revised Statutes of Canada," a conviction was had; held, on a motion for order nisi to quash the conviction, that the scheme of the association was not one of "insurance of the lives of the members exclusively," but was a scheme of 84 Insurance Corporations Act. Section 4 (2) A. I. C C accident insurance. Alsc, that the membership fee and receipt therefor, which was agreed to be accepted at any time as payment i^ro tanto for joining fees to be paid to "secure benfits, was a premium within section 49 of The Inr.urance stopietou. Act of Canada: Eegina v. Stapleton, H. C. J., C. P. Div., Feb. 9, 1892, coram Gait, C.J. and Eose, J. The cx- emiUioiib. Life and Accident insurances Section 43 has been similarly interpreted by the Dominion Department of Insurance on the occasion of various associations claiming the benefit of the exemption therein contained. The kind of business undertaken, as well as the constitution of the association itself, determines whether a particular association has the benefit of the exemption. Thus, for example, where the purposes of the corporation included temporary aid and assistance to Oddfellows holding certificates of membership in the association, in case of temporary or perma- nent disability resulting from accident, the associ- ation was held to be an accident association, and on that ground not within the exemption. In order to claim the benefit of section 43 the association must be engaged in the business of life insurance only, and not in the business of accident and life, or fire and life, or marine and life insur- ance : see Report Superintendent of Insurance, 1890, p. XXXV.: re The Oddfellows' Fraternal Acci- dent Association; re Preferred Masonic Mutual Accident Association of America. The constitution of an association comes into question when it is asked : — Is this an association for the purpose of Xot Er titled to llegister. 85 life insurance formed in connection "'.vith a society ^section or orf^anization for fraternal, [T A-B. benevolent, industrial or religions purposes, and exclusively from its members," and which " insures the lives of such members exclusively?" For an association is not within section 43, if it is incor- porated without reference to, or without the author- ity of, or without connection with, the association among whose members it expects to do business : indepeu- cf. the definition of Branch in section 2 (4) a, society. supra; and see Eeport Superintendent of Insur- ance, 1890, on The Oddfellows Fraternal Accident Association ; North Western Masonic Aid Associa- tion ; Preferred Masonic Mutual Accident Associa- tion of America ; United States Masonic Benevo- lent Association of Council Bluffs, Iowa; see also State V. Citizens' Benefit Association, 6 Mo. App. 163. So far, therefore, as The Insurance Act of Canada is concerned, the several associations above named, and all others of a like character, cannot legally transact insurance in Canada without first complying in all respects with the provisions of The Insurance Act, and procuring the necessary license or certificate of resf"stration thereunder. 1; '{ But any of the above associations, if in other respects within the provisions of this Act, may obtain registry as a friendly society : section 10, infra. {B) Any corporation, except as enacted in section 9, having or disiri charge of, or managing, or distributing charity, or gratuities, or charity or donations only. gratuities oulv. 80 Insurance Corporations Act. Section 4 (2) B. c u 3-: i 5fi Insurance a contract not bene- volence Except as enacted in section 9 (infra) the Act is not concerned with societies distributing donations or gratuities, but deals only with corporations entering into the contractual relation of insurer and assured with its members. Life insurance was preceded by charitable organizations, whose work was directed to alleviating the frequent dis- tress arising from the death of a husband or father. Then came a transition period when the husband or father of the beneficiary contributed something towards the charitable fund, but no contract was set up. The third stage, which societies originally charitable in their objects have now reached, is the contractual stage — the society and member are now related as insurer and assured. This legal obliga- tion forms the only satisfactory and enduring basis for any enterprise partaking of life insur- ance. The rights of persons claiming insurance arise out of and depend upon contract and must be ascertained and fixed by contract, regardless of the character of the company, unless there are statu- tory provisions to the contrary. Even though the object of the company may be benevolent, that does not import a new meaning into the unam- biguous terms of a writing. The contract measures the rights of one party and the obligations of the other. Block et al. v. Valley Mutual Ins. Ass., 20 Ins. Law Jour., 555. A corporation which undertakes contracts in the nature of insurance is not exempt from com- plying with the provisions of the Act because its Not Entitled to Beg inter. 8? ) Act is nations )rations insurer su ranee whose 3nt dis- r father, lusband [iiething act was :iginally d, is the are now obliga- induring insur- isurance must be s of the J statu- ugh the it, that unam- leasures of the Is. A.SS., :acts in |m com- ause its Section 4 (3) B. objects are benevolent and not speculative. Tb character of the contract is not changed by th fact that the organization issunig it designates itself as a benevolent or charitable society. The name of the society will not necessarily fix or establish its real character. If the prevalent pur- pose and nature of the corporation, of whatever name, be that of undertaking insurance contracts, its legal character will not be changed by the benevolent or charitable results to its beneficiaries. A society which by contract agrees to pay to the beneficiary of a deceased member a sum of money, is an insurance corporation, whatever may be the terms of payment of the consideration by the member, or the mode of payment by the society of the sum to be paid in the event of death : Common- wealth V. Wetherbee, 105 Mass. 160; State ex rel. v. Benevolent Society, 72 Mo. 146; State ex rel. v. Benefit Association; 6 Mo. App. 172; Niblack, on Mutual Benefit Societies, § 163, and cases there cited: see also State v. Merchants' Exchange Mut. Benev. Society, Mo. Sup. Ct. 1880, 10 Ins. Law Journal, 59. The payment of the benefit by the society to the beneficiary, or payment of a '*sick benefit" or " permanent disability indemnity " by the society to a member is not voluntary and in the nature of a gift, but is the fulfilment of a contract of insurance entered into by the member and the society: Bolton v. Bolton, 73 Maine, 299. A society organizing under E. S. 0. (1887) societies <3. 172, after the 10th day of March, 1890, has not Kntlrto •' after lOth authority to undertake or effect for valuable con- ^arch. isoo 88 Infill ranee Corporations Act. sectira sideration any contract of insurance, indemnity or guarantee whatsoever, with the members of the society or with others, or any contract within the intent of Tlit Ontario Insurance Act, or of K. 8. O. 1887, c. 130: 53 Vic. c. 39, (Ont.) s. 9. Therefore, (except those societies which have been lawfully incorporated before the 11th day of March, 1891, and which avail themselves of the proviso following, so that their payments become matters of contractual jobligation), all societies organized under R. S. 0. 1887, c. 172, after the 10th day of March, 1891, are lawfully incorporated ti. c c 1887, c. 172. for the purpose of bestowing, or distributing, gratui- ties, or donations only. But a society may not, under cloak of bestowing gratuities, transact insu- rance. The law will, when occasion requires, look behind the names of societies and pass its judgment upon their schemes and modes of busi- ness : Governors, etc. v. Am. Art Union, 7 N. Y. 228 ; State ex rel. v. Graham, 66 Iowa, 26. Provided that where before the 11th day of March, 1891, a corporation was incorporated under the Act respecting Benevolenty Provident and other Societies, for the purpose of bestowing, gratuities at death or on the happening of sickness, infirmity ,^ casualty, accident, disabilty, or any change of physical or mental condition, and it is in the opinion of the Registrar desirable that such paymente should be made matter of contractual obligation^ the corporation may, for this purpose, amend its constitution and laws as shall be directed by the Registrar, under his hand and the seal of his office ; and if, within the time limited in the Registrar's direction, the corporation files in the office where the original declaration of the corporation was filed, the said direction, and a declaration, verified by the oath of its secre- tary or other proper officer, setting out the amendment so Not Entitled to lietjister. 89 directed and made in the constitution and laws with the date of Section 4 (2) B. the said amendment, then upon proof of such fiUng the Regis- trar may admit the corporation to registry as a friendly society. Compare proviso to sub-section 2 of section 8, infra. ^<./L^ *f f J /J It is undesirable that any scheme of insurance couvorsioii of ^ratui- should rest on the discretion and not on the obh^^a- J.'^^fjljjta. tion of the insuring corporation to pay the benctit held out by the scheme to the members. There- fore, a society which was, before the 11th March, ■ 1891, lawfully organized under The Act respecting Benevolent, Provident and other Societies, for the purpose of bestowing gratuities on the happening of death, sickness, inlirmity, casualty, accident, disability, or change of mental or physical condi- tion may, on conversion of its gratuity scheme into contractual obligation between the society and its members, as above provided, be admitted to registry as a friendly society. If such conversion be not made, the society is not entitled to registry. But a corporation, like the Toronto Board of Trade, 49 Vic. c. 5G (D.), ss. 0, 7 and 8, being within sub-section 4 of section 9, infra, may, although its benefits rest in donation and not in contract, register as a friendly society; but such a corporation is not compellable to make such registry : sections 4 (2) B. supra, and 9 (4) infra. A society's power of changing any of the purposes ^ s. o. contained in the original certificate or declaration sTo, as ^^^' of incorporation by an order of a judge, as provided ^y^gSa yic. by section 19 of chapter 172 of the Kevised Statutes, was thus restricted by 53 Vic. c. 89, s. 9 : — f)0 Insurance Corporations Act. c U J \— 55 S-iiil^v ySc" 'Ti'ovided also that no company, society, associa- — "tion, or organization incorporated nnder this Act on or before the said 10th day of March [1890 j , and not anthorized by its original certificate or declaration of incorpoiation to nndertake such con- tract as aforesaid, iviz., 'any contract of insurance, indemnity, or guarantee whatsoever, with the mem- bers of the corporation, or with others, or any contract within the intent of The Ontario Insurance Act, or of chapter V]() of these llevised Statutes,'] shall, by virtue of section 19 of this Act or other- wise, have authority to change the purposes of the corporation so as to include the undertaking of such contracts as aforesaid." By section 63 (2) infra, "All Acts or parts of Acts inconsistent with this Act are hereby repealed." The sub-section we are considering prevails therefore over the prohibition contained in 53 Vic. c. 39, s. 9. Corpora- (0 -^"J corporation undertaking or offering to undertake undertak- insurance other than contracts of insurance made exclusively t'lmn'cn-^ with its own members against sickness, accident, disability, tracts"" infirmity or old age, or for mortuary or funeral benefits, or for the fidelity of members as financial officers of the society or any branch or lodge thereof, or for a sum or for collective sums not exceeding $3,000 in all, payable at the death of the assured. The insurance that a friendly society may un- dertake is limited to the contracts of insurance specified in the clause and made with its own members exclusively. The only societies that may transact assessment endowment insurance are such as fall within the proviso to this clause (vide infra). Not Entitled to llegiater. \)\ Qualificjition for iiu'inhorHliip in a friendly society on« ^fo. App. 1()8. As to the limitation, $8,000: cf. section 11 of the Benevolent Societies Act : — " When on the death of a member of a society, any sum of money becomes payable uiuhn* the rules of the society, the same shall be paid by the treasurer or other officer of the society to the person or persons entitled under the rules thereof, or shall be applied by the society as may be pro- vided by such rules ; and such money shall be, to the extent of $2,000, free from all claims by the personal representatives or creditors of the de- ceased" : E. S. 0. 1887, c. 172, s. 11, in part. In the case of insurances for the benefit of any of the persons within the protection of E. S. 0. 1887, c. 136, s. 5, the whole sum of $3,000 would now be free from the claims of creditors : for sec- tion 37 (1) infra provides that that Act " shall apply to all lawful contracts for insurance made by friendly societies registered under this Act;" and section 63 (2) infra repeals all prior inconsistent en- actments. See Mingeaud v. Packer, 21 0. E. 267 ; in this case, on appeal to the Court of Appeal, the Sflctlon 4 (2) C. IllRlirUDCO Willi llllMllllOI'M excliiHlvi'ly Notexcoed- in« .•^:m»<' Cf. \{. S (). I«h7. c. Ml. 8. 11. I I 92 Insurance Corporations Act. ?(?5T court was equally divided (May 10th, 1892), and the appeal was therefore dismissed. See also notes under section. 37 (1) infra. c.iwdT/s"! The respective Acts of incorporation of the vic-^c^m Supreme Court of the Independent Order of For- (D B. 1(e). esters and of the Grand Orange Lodge of British America limit the insurance which the society may undertake to a sum not exceeding $3,000. Proviso. lf«~.' c- ■ t c 55 What endow- ment soci- eties ineligible. Provided {a), that upon proof by a friendly society duly incor- porated, organized and operated, under the law of Ontario or of Canada, before the eleventh day of March, 1890, that the society was at the said date transacting exclusively with its members endowment insurance in Ontario bona tide, and has so continued up to the date of application for registry, the Registrar shall have authority to f.dmit the society to registry as a friendly society transacting endowment insurai .e according to the terms of the certificate of registry. For endowment and assessment endowment insurance, see section 2 (12) (d) and notes, supra. So far as friendly societies are concerned, en- dowment insurance may be transacted in Ontario only by societies incorporated before the 11th day of March, 1890, which were at that date and continuously up to the date of application for registry, transacting exclusively with members^ endowment insurance in Ontario bona fide. There- fore a friendly society incorporated elsewhere than in Ontario or Canada, or which was incor- porated therein after the 10th March, 1890, or w^hich was not transacting such insurance on the said date and since, or which is transacting such insurance with others than members, is not entitled Not Entitled to Begister. 93 insurance. to reeristrv and so cannot lawfully undertake such ^®°*^o° o i/ _ •'^ !>• 4 (2) C. contracts. And even if otherwise entitled, the right of the society to registry may he lost by the organization heing within section 4 (2) D infra. Nor can any existing society not already trans- actnig endowment msurance, nor can any newment society, enter on the business of endowment insur- ance. Where a benevolent society with an endowment fund is prohibited from prosecuting business in its own state, it cannot organize a new company else- where and use such fund to re-insure the members without their consent. The latter may apply to the court to compel a winding up and distri- bution of the funds : Stamm et ah v. Northwestern Mutual Benefit Association, Mich. S. C, 19 In- surance Law Journal, p. 348 (April, 1890). Provided {h), That contracts entered into before the passing proviso. of this Act shall not hereby be invalidated. Existing contracts are not invalidated but are in the same position as if the Act had not passed. But the society may not enter into new contracts, nor preserve its organization in Ontario to receive or collect premiums (section 2 (4) supra), or trans- act any other business relating to the insurance. As to contracts made with foreign corporations if the member desire to keep his contract on foot, the assessments or premium must be remitted by him to the head office of the company. I \ 94 c c Section 4 (2) D. Or being proprie- tary or trading societies or havii'.g under flfty members ; or where the funds of the soci- ety are not lield in trust for ID' inVjers, .Joint stock company. Mutual Inaurauco Company. Insurance Corjwrations Act. (D) Any joint stock corporation, or any corporation which in efifect is the property of the officers or collectors thereof, or which belongs to any private proprietary, or which has le. s than jBfty members in good standing on its books, or which is con- ducted as a trading or mercantile venture, or for purposes of commercial gain, or the insurance funds of which are held other than as trust funds for the members ; and each and every such society shall be deemed to be a corporation within the meaning of sections 5 and 6 of this Act, required by law to be licensed for the transaction of insurance. A joint stock company may be defined as a company having a permanent paid-up or nominal capital of fixed amount, divided into shares, also of a fixed amount, or held and transferable as stock, or divided and held partly in one way and partly in the other, and formed on the principle of having for its members the holders of shares in such capital, or the holders of such stock, and no other persons: The Companies Act, 1802, (Imp.), s. 181. Every such company is deemed to be required by law to be licensed in order to transact insurance. A mutual insurance company is formed on the principle of having for its members its policy holders, and its policy holders are alone the owners of the common fund, and they and they alone are entitled to the management of the common fund : New York Life Insurance Co. v. Styles (1889), L. E. 14 App. Cases, at 409. Where a share capital exists in a mutual company organized, or operated, under The Ontario Insurance Act, E. S. O. 1887, c. 167, ss. 30 et seq,, the share- holders are members of the company and enjoy special powers of control. Not Entitled to liegister. 95 which iit dveof, or iets than I is con- :poses of eld other ery such meaning licensed i as a Lominal also of i stock, artly in having n such o other s. 181. ired by ance. on the pohcy lowners me are 11 fund : 1(1889), share ;ed, or Act, share - enjoy If a society is in effect the property of the ofli- 4®J!jJa cers or collectors of the society, or belongs to a prop ~ private proprietary, the society is deemed to be asScLty. corporation required by law to be licensed for the transaction of insurance. Ofiicer has the extended meaning in the definition : section 2 (18) ; and collector likewise has the meaning in section 2 (17) supra: compare section 8 (2) infra. If the corporation has less than fifty members in good standing it is not entitled to register as a friendly society. But if the corporation, not being within section 9, was organized elsew^here, than in Ontario, it must have at the date of application a membership of at least 500 bona fide residents of Ontario to be entitled to register as a friendly society: section 10 (1), infra. A corporation, however or wherever organized, which is conducted as a trading or mercantile ven- ture, or for purposes of commercial gain, is not entitled to register as a friendly society. In a quo warranto proceeding, instituted to determine whether an alleged benevolent society was an insurance company doing business contrary to law, the distinction was laid dowai that an insurance company is a mere business venture, whose domi- nant feature it is to grant indemnity against loss for a pecuniary consideration; but that the under- lying feature of the benevolent society is not to indemnify against loss but to provide a fund from the accumulations of its members for their relief in case of misfortune : Commonwealth v. Equitable Benefit Association, 19 Ins. L. J. 340. NuililiiT of luenibors. Corpora- tion for imriioso of eouiiner- cial gain. 11 96 Insurance Corporations Act. c c It i ID t72)%° ^ society incorporated under R. S. 0. 1877, ~~ c. 1G7, and undertaking insurance contracts with its members, has been held not to be engaged in a trade or business : Swift v. Provincial Provi- dent Institution, 17 A. R. (1890), p. 66. But, a mutual insurance company, as distinguished from a friendly society, is a mercantile corporation : that is, it is engaged in dealing in mercantile contracts, althL igh it may be that the dealing is with a restricted class of customers. The mutual insur- ance company has no other object or function than dealing in contracts : in re Padstow Total Loss and Collision Assurance Association, L. R. 20 Ch. D. (1882), 137; e^-^rt?/^e Hargrove & Co., L. R. 10 . Ch. App. 542. In State v. Citizens Benefit Asso- ciation, 6 Mo. App. 163, it w^as held that a cor- poration with salaried officers, paying commissions on risks obtained, insuring and admitting to mem- bership anyone having the requisite conditions of age and health, and requiring no other qualifica- tion for membership, cannot evade the insurance laws b}' calling itself a benevolent society, and obtaining a charter as such : see also Governors v. American Art Union, 7 N. Y. 228 ; State ex rel v. Graham, 66 Iowa 26. The insur- The lusurauce funds of the society include all aiice fund -i • i- -\ l atiuat moneys, securities for money and assets appropri- ated by the rules of the society to the payment of insurance liabilities or expenses of management of the insurance branch of the society, or that are otherwise available for insurance liabilities : sec- tion 2 (13) supra. If the insurance funds of a Licensed Comjjanies. 97 society are held olher than as trust funds for the soctions members, the society is not entitled to registry on — '■ • the Friendly Society Kegister. (3) The section shall take effect on the 1st day of July, 1892. com- iiieuce- Unless an extension of time be granted forsectlou. same by the Registry Officer, corporations trans- acting insurance in Ontario at the passing of the Act must make and compl'^te due application for registry on or before the 30th day of June, 1802: section 12, infra. The registers are, therefore, considered as opened on the 1st day of July, 1892. Licensed Companies. li ^. (1) Insurance licensees of the Province of Ontario shall i„ auranoe be entitled on the issue or the renewal of their licenses to be of'o'iiTario registered, without additional charge upon the Insurance [g°^j^"®^'^^' License Register, and the fact of such registration shall before delivery over of the license, original or renewed, be endorsed thereon. The license granted to an Insurance Company under the provis'ons of The Ontario Insiirance Act expires on the 30th June in each year, but is renewable from year to year, R. S. 0. 1887, c. 167, s. 57; so also of mutual live stock companies licensed under 52 Yic. c. 33. Insu- rance licensees of Ontario need not make applica- tion for registry under this x\ct ; for the company is registered on the Insurance License Register, and the fact of such registry is endorsed on the license or renewal of license before delivery over of the same to the company. No additional fee is H.I.C.A. — 7 ' * 98 Insk ranee Corporations Act. section demanded of such a company for the further o (2). authorization. c c 3L-- tr 55 u. s. 1887, c. 44. O. e. 1G7, suspeii- (2) Suspension or cancellation or non-renewal of the license °[j^j^"^®"" issued under The Ontario Imurtince Act shall, i})so fdctn, and U°'^^j^°"®^' without notice from the Registry Officer, operate in the respec- Hcenso*'''^^ tive cascs as suspension or cancellation of registry under this Act. Section 44 of TJie Ontario Insurance ^c^ enacts that ''if from the annual statements, or after exam- ination of the affairs and condition of any company, it appears that the reinsurance vahie of all its risks outstanding in Ontario, together with any other liabilities in Ontario, exceeds its assets in Ontario, including the deposit, in the hands of the Treas- urer, then the company shall be called upon by the Treasurer to make good the deficiency at once, and, on failure so to do, its license shall be can- celled. * * *" And in section 46 of the same Act, there is a further provision for the can- cellation of the license. ''When a company fails to make the deposits under this Act at the time required, or where written notice has been served on the Provincial Treasurer of an undisputed claim p;rising from loss insured against in Ontario re- maining unpaid for the space of sixty days after being due, or if a disputed claim after final judg- ment in a regular course of law and tender of a legal valid discharge being unpaid, so that the amount of securities representing the deposit of the company is liable to be reduced by sale of any portion thereof, the license of the company shall ipso facto be null and void, and shall be deemed to be cancelled as in section 44; but the license may, Ibid. s. 46. L icensed Comjjunies. 99 in the two last mentioned cases be renewed, and ^g^J^v®" the company may again transact bnsiiiess, if within sixty days after notice to the Provincial Treasnrer of the company's failure to pay any undisputed claim, or the amount of any linal judgment as pro- vided in this section, such undisputed claims or final judgments upon or against the company in Ontario, are paid and satisfied, and the company's deposit is no longer liable to be reduced below the amount required by this Act:" compare sec- tions 44 and 49 infra. The mode of suspending or cancelling the "''''• ''■^^^ license, on report of the Inspector, is found in section 143 of TJie Ontario Insiuxuice Act: "(1) If it appears to the Inspector that the assets of any company are insufficient to justify its continuance of business, or unsafe for the public to effect insurance with it, he shall make a special report on the affairs of the company to the Treas- urer." "(2) Alter full consideration of the report, and a reasonable time being given to the company to be heard, and if, after such further inquiry and investigation (if any), as he may see proper to make, the Treasurer reports to the Lieutenant- Governor in Council that he agrees with the Inspector in the opinion expressed in his report, then, if the Lieutenant-Governor in Council also concurs in such opinion, an Order in Council may issue, suspending or cancelling the license of the company and prohibiting the company from doing 100 Insurance Corporationfi Act. B^c?^6a) ^^^y fnrther business, and thereafter it shall not be lawful for the company to do any further business in Ontario, until the suspension or prohibition is removed by the Lieutenant-Governor in Council." The cancellation or suspension of the license operate:-^ ipHc facto to make the treasurer or other officer ( ' ■*•%;;' corporation having custody or control of the ii.' ' '. -e funds of the corporation interim liquidator, and ij.. liquidation proceeds according to the provisions contained in tliis Act: vide infra section 53 et seq. Such liquidation is in lieu of the proceedings that might have been taken under sections 7 or 151 of The Ontario Insurance Act. r> c c lusurauce ©. (1) Insurance licensees of the Dominion of Canada sliall, licensees of upon (lue appHcatim, and upon proof of such Hcense subsisting, how regis- be entitled to be registered on the Insurance License Register. Due application includes payment to the Pro- vincial Treasurer of the fees prescribed: section 2 (22) supra. The scale of fees applicable to cor- porations within this clause will be found in sec- tion 62, division II, infra. The application for initial registry is to be made on a form that is supplied by the Eegistry Officer on request. The apphcation for registry must be made on or before the 30th day of June, 1892, in the case of corpora- tions transacting insurance in Ontario at the passing of the Act: section 12 (1) infra. No financial statement need be filed on application by licensees oi the Dominion: section 13 infra. Proof of the license subsisting is made by the production of the license to the Eegistry Officer: section 19, (1) infra. Licensed Companies. 101 (2) For the purposes of this Act " licensees " shall inchide Section 6(2). corporations authorized by any instrument or document issued under or by virtue of sections 38 or 39 of The Insnntnce Act of tfttmu!* Canada, and every licensee licensed under or by virtue of 7/,^ ^'censes. Insurance Act of Canada shall be deemed to be a corporation for the purposes of registration under this section. Every corporation trcansactin<]f the business of life insurance on the assessment plan by virtue of TJte Insurance Act of Canada derives its powers under section 38 or under section 39 of T^ic I/isu- ranee Act: R. S. C. c. 124. Section bo i ; >plies under «. as • to companies incorporated or le<: v,/v i '•»ned.ie«'.« 25(8) agrees with the Superintendent in the opinion so expressed in his report, the Governor in Council may, if he also concurs in such opinion, suspend or cancel the license of such company; and such company shall, during such suspension or cancella- tion, be held to be unlicensed and unauthorized to do further business:" 11. S. C. 124, s. 25 ((S). "The Minister may, from time to time, instruct the Superintendent to A'isit the head office of any company licensed under this Act, and incorporated or legally formed elsewhere than in^^.^ ^.,5 Canada, and to examine into the general condition'"' and affairs of such company; and if such company declines to permit such examination or refuses to give any information necessary for such purpose, iu its possession or control, its license shall be with- drawn:" K. S. C. c. 124, s. 25, (11). "Whenever satisfactory proof has been fur- nished to the Minister of any undisputed claim upon a company arising on any policy of life insur- ^,^.^^^ ^ .^^^ ance in Canada, remaining unpaid for the space of sixty days after becoming due, or of a disputed claim remaining unpaid after final judgment in regular 1 i i yt.^mi^ T ^ iw kJ ' -VTy^ " ' ^ ' ■' 108 Insurance Corporations Act. Ir C c .- I— CD 55 t^^^-pL ^Vfi)^ course of law, and tender of a legal valid discharge made to the agent of such company, the Minister may withdraw the license of such company." K. S. C. c. 124, s. 29, see also ss. 45 and 46; and sections 44 and 49 infra. /-/*/ Upon the license of any company being with- ^"'•idrawn or suspended a notice thereof appears in the Canada Gazette, R. S. C. c. 124, ss. 18 and 25 (a), fegS" and such notice in the Canada Gazette is sufficient authority for the Registry Officer to make entry on the Insurance License Register suspending or cancelling the registry: section 49 (3) proviso, infra. The proceedings after cancellation of registry, noticed above as applicable to a licensee of the Province, are not applicable to licensees of the Dominion: section 52 (1) infra. Recourse must be had to Tlie Winding-up Act, R. S. C. c. 129. Proviso: Provided that when, after such suspension of authorization registry?^ under The Insurance Act of Canada, the corporation has under the said Act been permitted to revive its authorization, the Registry Officer may grant a revivor of registry and issue his certificate of the same. "Such licenses may be renewed if, within R. S. C. '' c. 124, s. 30. thirty days after such withdrawal, such undisputed claims or final judgments upon or against the company are paid and satisfied:" R. S. C. c. 124, s. 30; see also s. 40, ibid. s. 31. "When the license of a company carrying on the business of life insurance has been withdrawn by the Minister under any of the foregoing sec- tions of this Act, such license may be renewed if, harge nister my:" : and with- in the 25 (a), ticient entry [ing or rod so, on of censee sees of course ii'ization .s under on, the isue his Kvithin tpiited It the •. 124, pg on tlrawn sec- ^ed if, Licensed Coi}q)anies. 109 within thirty day after such withdrawal, such ,^®?*^ons " "^ . '6 (3), 7 i 1). company comphes with the requn-ements of tiiis Act, to the satisfaction of the Minister:" E. 8. C. c. 124, s. 31. Powers (iiKt (Uitiea of inspec- tor of ii'siirauce. 'S'. (1) The duty of determiniiif,', (hstinguishing and regis- tering those insurance corporations, whicli under this Act or any amending Act are legally entitled to registry on the Insurance License Register, and of granting registry accordingly, shall devolve upon the Inspector of Insurance, subject to appeal as hereinafter provided. The powers and duties of the Inspector of Insurance and of the liegistrar of Friendly- Societies regarding the corporations entered upon the two registers respectively are identical : cf. section 11, infra. In Dwelling House Insurance Co. v. ^Yilder, Kansas S. C. 1889, 19 Ins. Law Journal, 235, it was decided that the determination of the Super- intendent of Insurance in granting, refusing, or revoking licenses authorizing insurance companies to transact business within the State involves the Mandamus exercise of official judgment and discretion on his part, W'hich cannot be controlled or directed by mandanms. After the Superintendent of the In- surance Department has refused to issue a license to a foreign company to do business in the State, a mandamus to compel him to issue such license will not be granted : People ex rel v. Fairman, 92 N. Y. 656. Where the duties of the Superin- tendent of Insurance are judicial in their nature, mandamus will not lie to compel him to issue his certificate : In re Schmidt, N. Y. S. C. 1890, ''::\ 110 Insurance Corporations Act. i t t c h- C3 55 section iQ ]View York 8np. 588. To obtain a mandamus, moreover, there must be no other effective lawful method of enforcing the right. "It is well settled that where there is a remedy equally convenient, beneficial and effectual, a mandanuis w^ill not be granted. This is not a rule of law, but a rule regulating the discretion of the court in granting writs of mandamus": per cur. ve Barlow, 80 L.J. Q. B. 271 ; Shortt on Informations, etc., 282. The decisions of the Registry Ofhcer are subject to appeal ; section 51 (1), infra ; the proper n^ethod of contesting his decision is to appeal, as provided, and not proceed by mandamus. Othei* pro ceetliuRs against re^'istry otlicer. In an action to recover damages from the In- surance Connnissioner by reason of losses sustained through insolvent companies alleged to have been licensed in known violation of the law, which directed licenses to be gra.'ited to companies that had complied with the iaw and of wdiose suund- ness he was satisfied, lu was held that the Com- missioner is clearly invested with a discretion to grant, and he is also invested with discretion to revoke, the license of an insurance company upon certain circumstances appearing to his satisfaction. It follows that his action in issuing the license was discretionary, and therefore judicial. No liability, consequently, attached, unless his action were cor- rupt: State to Use of Davis et at. v. Thomas et al.y Tenessee S. C, 1890, 19 Ins. Law Journal 461. The powers of the Inspector of Insurance ::nder this Act are in addition to the powers con- tored by The Ontario Insurance Act. As Registry Benevolent Hocietien Acts. Ill Officer, the Inspector of Insurance luas power to call for evidence, and may take or receive affidavits or depositions, and may examine witnesses upon oath: section 7 (2) infra. In certain disputed cases respecting the status of a corporation, the Eegistry Officer decides both as to the law and the facts : section 49 (3), infra. His decision is rendered in writing', and an appeal may be had therefrom to a Divisional Court of the High Court of Justice. The mode of appeal is prescribed in section 51, infra. Section 7 (2), (3). Powers luidor this Act tidili- tioual. (2) For purposes of these duties or of his duties under the Ontario Insurance Act, or under other Acts of this Province relating to insurance, the Inspector may require to be ixnade, or may take or receive affidavits or depositions, and may examine witnesses upon oath. The same powers are conferred on the Registrar of Friendly Societies: section 11 (2), infra. Affi- davits for use under this Act may be sworn to before any Justice of the Peace, Notary Public, or Commissioner of the High Court for ta) iig affi- davits : section 47 (2) infra. (3) The remuneration of the Inspector in respect of the services required by this Act shall be such sum is the Legis- lature shall from time to time determine. I Societies Incoeporated under the Benevolent Societies Acts. Friendly societies had existed in England History of •^ , '^ . legislation from an early time as voluntary associations without legal recognition; although we find in 1534 the Commissary of the Bishop of London 112 Insurance Corporations Act. c en sep>Aon certifying? the rules of trade guilds : Pratt, Lhw of Friendly Societies, 11th ed. p. 2, note. As volun- tary associations, friendly societies experienced frequent losses through defalcations, or bank- ruptcy of officers and trustees, and there was no help in the law of the time to recover moneys so lost. To protect societies from loss by misfeasance or bankruptcy of their officers was the motive of Sir George Eose's Act, passed in 1703, for the encouragement and reJief of friendly societies, 83 c, ./(Imp.) Geo. 3, c. 54, which was the first legislative sanc- tion of the existence of such societies. This was the motive, likewise, of the first friendly society legislation of the Province of Canada, being an Act for incorporating charitable, philanthropic and i8.ti4Vic.pro\ident associations : l-j & 14 Yic. c. 32. The preamli>ie recites that *' whereas large and increas- ing numbers of all classes of the community have for some time past associated themselves together for the purpose of making provision for themselves and families, by contributing subscriptions or other- wise, against sickness, misfortune and death, and for the relief of the widows and orphan children of deceased members; and whereas the accumulated funds of such associations, owing to the absence of legal protecl'on, have been subjected to great and serious losses from frauds and defalcations; and whereas it is expedient to encourage habits of pi'oviden< e and forethought amongst all Her xMajesty's subjects;" it w\is enacted "that it shall and may be lawful for any number of persons to unite for the purpose of making provision, by means of contributions, subscriptions, donations or Definition of society within tl'i Act. Lciw of voliin- ienced bank- vas no leys so jasance )tive of for the ties, 38 e sanc- Liis was society ; an Act )ic and 2. The increas- t}^ have ogether Imselves |r other- h, and dren of Liulated ence of eat and IS ; and ibits of 111 Her lit shall rsons to ton, by hions or Benevolent Societies Acf.i. 118 otherwise, against the several contingencies of ^^^"on 8. sickness, unavoidable misfortune or death, and for ^^~„ij,t. relieving the widows and orphan children of nieni- li'iicers' hers deceased." The members might nominate, choose and appoint proper persons as trustees, treasurers, secretaries, or other officers to condu(;t the business, discipline and management of the society. The members of the society might acquire personal and certain real property in the name of the society, or in the name of the pre- siding officer thereof to hold for the use of the {.',;;;7;;^.red members, and might sell and alienate the same uVs The members were also granted a corporate seal, continued succession, power to contract and be contracted witli, power to sue and be sued: 13 cV: 14 Yic. c. 82, s. 3. ato s )cio- Chapter 71 of the Consolidated Statutes of Canada was the next step in the legislative chain. The enabling section in that Act reads : "Any num- ber of persons may unite themselves into a society for making provision, by means of contributions, subscriptions, donations, or otherwise^ against sickness, unavoidable misfortune, or death, and for relieving the widows and orphan children of mem- bers deceased." The corporate powers conferred by the former Act were continued. The law remained unchanged until 1871, when the Consoli- dated Statutes were amended by 84 Vic. c. 82. (Out.) It was thereby enacted "that any number of persons not less than live may unite themselves into a society for making provision by means of other- 8 ('o:i. Statutes of Canada, c. 71. i)o:iiiition. contributions, subscriptions, donations, or :)1 Vic. c. ;)2 Not less UlUll flvu liLismis to coiirfiitute v.ic:.'tv. :: ! " I H.I.C.A. 114 Insurance Corporations Act. Section 8. if*"' *— • i i C C ■■' Iiicorpoia- tod ■oy- executitiR a declara- tion. joii touts of declara- tion. Where filed. Society a body cor- porate auct politic. Existing' Bocieties bow incor- porated. wise, against sickness, unavoidable niisturtune or death, and for relieving the widows and orphan children of members deceased,"* and "may become incorporated by making and signing a declaration in duplicate, or in as many parts as shall be required, of their having united themselves together for the purposes aforesaid, which declara- tion shall set forth (1) the corporate name of the society; (2) its purposes; (3) the names of those who are to be its first trustees or managing officers ; (4) the mode in which their successors are to be appointed; (5) generally such other particu- lars and provisions as the society may think necessary." One of the original parts of the declaration was required to be filed in the office of the Registrar of Deeds for the county or division in which the society usually held its general meetings. By compliance with these formalities, the persons who signed the declaration and their associates and successors being members of the society became "a body corporate and politic" with "the powers, rights and immunities vested in such bodies by law." Existing societies were allowed the benefit of this improved incorporation on making a similar declaration and filing there- with a copy of the constitution and by-laws of the society. 37 Vic. c. 34 (O). Benevolent The law relating to friendly societies underwent important change in the Act of 1874 respecting Benevolent, Provident and other Societies : 37 Vic. c. 34, (Ont.). The allowed scope of any such society w^as restricted in the enabling clause, which Benevolent Societies Acts. 115 tune or orphun become laration hall be mselves ieclara- e of the )f those anaging ,sors are particu- y think of the office of division general nalities, id their of the politic" vested ?s were )oration there- of the lerwent Ipecting les : 37 liy such which age read : '' Any five or more persons of full may become incorporated under this Act for any benevolent or provident purpose ; or for any other purpose not illegal, save .iUl except the purpose of trade or business, and any purpose heretofore pro- vided for by any of the Acts mentioned in the schedule to this Act, or any other Act hereto- fore in force and not hereby repealed." In the Schedule of Acts for purposes not intended by this Act," are Con. Statutes of Upper Canada, c. 52, intituled "An Act respecting Mutual Insurance Companies," and 30 Yic. c. 44, (Ont.), intituled " An Act to consolidate and amend the laws having reference to Mutual Fire Insurance Companies in the Province of Ontario." The declaration, con- taining the same matters as before, was now to be made and signed before a Judge of a Superior Court or a County Court Judge, and the judge was to endorse thereon a certificate that the declaration appears to him to be in conformity to the Act, sec- tion 2 (3). A duplicate original of the declaration was to be filed with the Provincial Registrar or the Clerk of the Peace for the county in which the society held its annual and general meetings. Pro- vision was made (section 5) for incorporating under the Act existing societies. For the first time pay- ments out of the funds of the society on the death of a member were protected from creditors, and also payment hona fide by the society to any person thought to be entitled defeated, as against the society, the rights of persons actually entitled, section 10. Section. 8. Trade or btisiuebs. Excepted puriioses. Declara- tion how executed and t\led. Payiueuts by society protected. i " IH) InsnidHcti Corjxiiyitioii.s Act. Seo.tlon 8. Hocioties sllhjcct to fiirtlicr lei,'islp.lioii C')llt J'(l). It WHS furtlier expressly declared that soeietien inc()rp(3rated under this Act shall be subject to such further and other provisions as the Legisla- ture shall hereafter deem expedient, section IS. This reservation was repeated in K. S. O. 1H77, c. 1()7, s. 19, but disappeared in the revision of 1887, because probably considered superHuous in view of the general provision K. S. (). 1887, c. 1, s. 8 (40). U.H.O. 1877 e. ir.7. C i c c .- KxuoMted purposes. K. S.0.1877 (■ 101. 41 Vic. c, H, lO.ia. IS. 47 Vice. 27, (O.is. :J. K S. 0.1887 c. ;7'2. K. S 0. 1887 o. 1(17. The Revised Statutes of Onttirio (1877) followed closely the terms of the Act of 187-1, and, like the latter Act, excepted from ihe purposes for which a society might thereunder be incorporated, " the purpose of trade or business and any purpose pro- vided for by any of the Acts mentioned in the schedule to thi's Act." K. S. 0. 1877, c. IGl, inti- tuled ''An Act respecting Mutual Insurance Com- panies," was one of the Acts enumerated in that schedule. Prior to the Revision of 1887, was passed 41 Vic. c. 8, (Ont.), s. 18, substituting a new sec- tion for R. S. O. (1877), c. 167, s. 11, relating to payments by the society; and 47 Vic. c. 27, (Ont.), s. 3, permilimg a society to change its nnme. Chapter 172 of the Revised Statutes, 1887, repeats the section defining the purposes for which societies may be incorporated, but in the schedule to section 1, enumerating purposes excepted, because dealt with by other statutes in force, appears '' An Act respecting Insurance Companies," R. S. 0. 1887, c. 1(37. Be He rule fit Societitfi Act-s. II >ject to lion IS. ). 1H77, isioii of nous in S7, c. 1, ollowecl like the which a 1, "the ose pro- ill the 01, inti- e Coni- in that ssed 41 lew sec- liting to (Out.), name, repeats ocieties section ,e dealt n Act . 1887. i.u; A very perplexin,^ statute, as it turned out, was soction 51 \'i('. c. 22, (Out.), which, by section 2, extended ,-i vk. ...^g the piotection of TJi*' Act to Hccurc to Wirts ((nd^^'"*'' Children the Benefit of Life Instwdnce (K. S. ()., 1SJS7, c. 13()) to 'Mnembeiship, beiieliciary and other J*^ ""^^ certiticates and contracts relatin*^" to Hfe insurance, issued or entered into by any society or association of persons for any fraternal, provident, IxMievolent, industrial or reli,L,^ious purpose, ;iinoii,L,' the purjjoses of which is the insurance of the lives of the mem- bers thereof exclusivelv, oi bv any ass(x*iation for the purpose of life insurance funned in connection with any such society or organization and from its members, and which insures tlie lives of such members, includiii<>' certiticates heretofore issued or entered into." As will be seen further, this pro- vision was held to be a lef^islative recognition of the legality of society contracts, although such contracts partook of the nature of insurance over which the Legislature had exercised theretofore jealous jurisdiction : Swift v. Provincial Provident Institution, 17 A. P. (](j. ol Vic. c. 20, (()nt.),5i vic c. i respecting the name of a proposed society, need only be noted. 53 ^'ic. c. 89, (Out.), s. 9, repaired the breach made in the law of insurance by 51 Vic. ^S^'^o c. 22. The prohibition contained in P. S. O. 1887, c. 172, s. 1, is thus extended: "Provided that no company, society, association or organization incor- porated under this Act, after the 10th day of March, 1800, shall have authority to undertake or effect for iw'.' valuable consideration, or to agree or offer so to undertake or effect any contract of insurance, in- demnity, or guarantee whatsoever, with the mein- (0) 20. «H. '... 10, 1:5. 1 I 1 .1 r ^ ^^^. IMAGE EVALUATION TEST TARGET (MT-3) 1.0 I.I U|j£ 125 |J0 ~^™ H^H ut 1^ |22 ■ 2.0 £ U£ im \25 1 1.4 11.6 ^ 6" ► ^ /. v] v: t "W r 7 Photographic Sdences Corporation -W 23 WEST MAIN STtHT WEBSTER, N.Y. MSM (716) •72-4503 '^ 118 Innitraiice Corporations Act. Section 8. bers of the corporation or with others, or any con- tract within the intent of The Ontario Insurance Act, or of chapter 136 of these Revised Statutes; and the expression ' offer to undertake contracts * shall have the same meaning as in The Ontario In- surance Act; and any person contravening this sec- tion shall be liable to the penalty imposed by section '56 of The Ontario Insurance Act, which penalty shall be enforced and applied as in the said 5Gth section enacted." 5? c 8' 18, con struction "Provided also that no company, society, asso- ciation or organization, incorporated under this Act on or before the said 10th day of March, 1890, and not authorized by its original certificate or declaration of incorporation to undertake such contracts as aforesaid, shall, by virtue of section 19 of this Act or otherwise, have authority to change the purposes of the corporation so as to include the undertaking of such contracts as aforesaid." It was enacted by section 13 of the same ouiTic. Act that — "The Act passed in the 51st year of Her Majesty's reign, and chaptered 22, shall not be held to relieve from the obligation of being licensed, nor to relieve from the consequences of transacting business wdiile unlicensed, any corpo- ration which before the passing of the said Act was required by The Ontario Insurance Act to be f,jg licensed before undertaking any contract within oSoklSi ^he intent of The Ontario Insurance Act.'' Provi- SSS sion was likewise made (section 10) for suspending or revoking the corporate powers of any society Benaculeut Societies Acts. 119 incorporated under The Benevolent Societies Act, if secuon the society use its corporate powers for any fraudu- — lent or other unhiwful purpose. Mention of the Act, o4 Vic. c. 59, (Ont.), s. 2, permitting societies to borrow money on debentures, ^« vice. 59. brings to a close this summary of the history of the legislation of Ontario respecting friendly societies. "It would not at first have been very likely tof"?"diy •' '' ■societies occur to any one that a system of nuitual life ""^uVaS' insurance on a large scale was capable of growing ^'^^ *' up or of being organized und«^r the Benevolent Societies Act," * * * j^^y Qsler, J. A., in Swift V. Provincial Provident Institution, 17 A. R. at p. 71. In order to understand the place now given to society contracts in the scheme of Ontario insurance law, it is necessary to ascertain what difference there is between a society which under- takes contracts in the nature of insurance with its own members and a mutual insurance company proper. ''Previously to 50 Vic. c. 26, (Ont.), no power \iutiai existed, except by special charter, for the incorpo- in ontaiio. ration of companies to carry on the business of life insurance, and previously to that time, any company, although duly incorporated, was pro- hibited under heavy penalties from making any contracts of insurance until it had obtained a license and made a deposit with the Government," per Burton, J. A., in Swift v. Provincial Provident, supra. That Act itself did not made provision for > t s i 120 Insurance CorjKinifions Act. c c C ' Li 1 55 Section the iiK'orpomtioii of other thnn joint stock coiii- punies, so that the promoters of a mutual Hfe insu- rance company have still to apply to the Le^nslature for corporate powers. The jirinciple of mutual life insurance is thus descrihed by Lord Macnaj^hten in New York Life Insurance Co. v. Styles, 14 App. Ca. 881 at p. 411: — "Certain persons a.i^ree to insure their lives among themselves on the prin- ciple of mutual insurance. They take care to admit none but healthy lives. They contribute according to rates fixed by approved tables, and they invite other persons to come in and join them by insuring their lives on similar terms. The rates fixed by the tables are taken as being sui'ti- cient to provide for expenses, to meet liabilities, and to leave a margin for contingencies." A com- pany constituted upon the principle of nmtual insurance is a nmtual insurance company as dis- tinguished from a stock or proprietary coLipany,in which "the corporation and its shareholders form a body quite distinct in personality and in interest from the insured. A member of the corporation might effect an insurance with it, but that circum- stance could neither enlarge nor diminish his rights as a partner," per Lord Watson, 8.C. at p. 391. Corporations of this kind carrying on the business of life insurance are of comparatively recent origin in Ontario: see 32 Yic. c. 17, (Out.), incorpoiating the Ontario Mutual Life Assurance Company. The principles and constitution of mutual insurance companies are best seen in nuitnal lire companies, KWi.i. IV. which, in Ontario, have a longer history. In 183G was passed an Act to authorize the establishment 32 Vic. c. 17 (O.) Bene role lit Sacictie.s Aii.s. I'll of Mutual InsurMUcc (' )iupiiuic's in tin- several section Districts of this Province: (> Wni. IV. c. IS. — - — ]\Iutual insurance here nieaiis no more than nnitual insurance a^^ainst losses hy tire, as appears from the Preamhle: '* Whereas divers loyal suhjects of His Majesty, hein«^" inhal)itants of this Province, have, hy their petition, represented tlie ^reat advantages that would arise from the introduction into the Province of the principles of nuitual insu- rance a<^ainst losses l)y lire, and have prayed the interference of the Le<4islature to enable them to bring the said principles into active operation." It was a new departure in legislation to enact a general metisure under wliich a numljcr of companies might incorporate, instead of the Legislature reserving to itself the right to pass upon each scheme as it was proposed; and the Imperial Gov- eni'nent sanctioned the Act with nuich reluctance. It was only in iScSl) that a similar Act was passed, under which mutual live stock insurance companies might be incorporated. /5'2 V. c. 3>i, (Out.) "It being expedient to provide for the speedy 22 v <•. and certain payment of loss insured by enabling mutual insurance companies to provide ji guarantee capital," the Act, 22 Yic. c. 4() (Ont.) empowered any company which added the feature of guarantee capital to "create from the surplus proiits of the company from year to year a reserve fund for tlie purpose of paying off the guarantee capital, after which its affairs and property shall revert to and be vested in the parties insured, as the sole members of the company." The details of the returns to be (O in :% i! ] 122 Insurance Corporations Act. ih-f C - S«otlon 8. :«j V. 0. 44 (O.) 39 V. c. 2) (0.);42V. c '25(0.);U. S. O.; 1877, c. 101. 50 V. c, 26(0.); R.S, O.; 1887. c. 167. made by mutual lire insurance companies were settled by 8(3 Vic. c. 44 (Out.) Such companies were required to show among liabilities "the amount covered by policies in force in respect of each class of risks." It was further provided (sec- tion 74) that the Lieutenant-Governor in Council might appoint a qualitied person to examine into the affairs of any mutual lire insurance company, "and whenever it shall appear from such examina- tion that the assets and financial position of such company are such as not to justify the continuance in business of any such company, the Attorney- General may apply in a summary manner on motion to one of the superior courts of law or e(|uity, for an order requiring such company to show cause why the business of the comp.iny should not be closed * * * ." The further statutory safeguards of license, Govern- ment deposit and inspection have been added from time to time: 39 Vic. c. 28, (Ont.); 42 Vic. c. 25, (Ont.); E. S. 0. 1887, c. 167. It is thus a clear ground of distinction between a Distinction mutual iusuraucc company and a friendly society undertaking contracts of insurance with its members, that the mutual insurance company must be at all thnes actuarilj/, as well as actually, solvent. The law regards the contingent liability of an insurance company, proprietary or mutual, as a present liability. Heretofore the law has not concerned itself with the financial condition of a friendly society, and even now goes no further than to in- quire if the society be prima facie solvent, or to Benevolent Societiea Acf.s. 123 BS were ascertain that the society has either no present s^wo" hahihties, or has innnediately realizable assets adequate to discharge its present liabilities. This difference seems to have its analogy in the differ- ence in constitution of the two corporations. To enter into contracts of insurance is the function of the nuitual insurance company, in re Padstow Total Loss and Collision Association, L. K. '20 Ch. D. 187; ec parte Hargrove & Co., L. K. 10 Ch. App. 64:'!', while insurance is not the sole or even the primary purpose of a friendly society. It has been held that a corporation, with salaried officers, paying commissions on risks obtained, in- suring and admitting to membership any one having the requisite conditions of age and health, and requiring no other qualifications for member- ship, cannot evade the insurance laws by calling itself a benevolent society and obtaining a charter as such : State v. Citizens' Benelit Association, G Mo. App. 168; see also Governors, etc. v. American Art Union, 7 N. Y. 228; State ex rel. v. Graham, 66 Iowa, 26. The benefits of a friendly society were regarded society as flowing from benevolence and not from a con- »v^ '^s"** " c'd as con- tractual relation between society and member. ^'■^*^^^- That something of donation still clings to society benefits other than those within the new Act appears from R. S. 0. 1887, c. 172, s. 11, which enacts that " in case any sum is paid in good faith to the person who appears to the treasurer or other officer to be entitled to receive the same, or is applied in good faith for the purposes by the rules •1 J; V2\ In.sn ranee Corjmrdtioiis Art. Section & m \ic. c (O). c - U i I— provided, no action sliull h^ hrou^'ht }i,L,Minst the treasurer, or other ollicer, or the society in respect thert'of." It is evident thiit payment to J3. of an amount du(> to A. under a contract witli A. cannot he satisfaction of tlie contract so as to l)ar A. from recoverinf,^ This view of society l)eneHts was the prohahle reason of courts dechnin;^' jurisdiction (in the first instance at all events) over disputes hetween nuMnher and society, hut remitting;- the memher for relief to the trihunals of the society itscdf. At the passin«»- of the Act 81) Vic. c. 2:] (Out.), either the henefit" of societies were not re<^arded as contracts of i w cq or it was intended to prohihit societies iiom undt'rtakin<^' sucli contracts r.nless they complit>d with the statutory rtMpiiu - ments of license and deposit. For after the declaration that " This Act shall not apply to any company licensed underpin Act of the Parliament of Canada, nor to any mutual tire insurance company which does not receive cash premiums in lieu of premium notes, hut acts exclusively on the mutual principle (section I) ; " it is enacted that " Except such insurance comp.inies as are mentioned in the next preceding section, it shall not be lawful for any insurance company to accept any risk or issue any policy of insurance, or receive any premium, or transact any ])usiness of insurance in Ontario, or to prosecute or maintain any suit, action or proceedin;;,^ either at law or in equity, relating to such business, without first obtaining a license from the Treasurer of Ontario." (Section 2.) liciicro/t n( Societies Arfs. 1 'ir> The t'XiMiiptioii ill section 8 ('2) of YV/c (hifarin Insurance Act that the " Act shall not ai)ply to any benevolent, provident, industrial or co-opera- tive society not re(piiriii^- a license for any such contract as aforesaid before tlu^ passing- of this Act" is not found in any corresponding' statute prior to 50 Vie. c. 20 (Ont.), and seems to have been inserted iu that statute because the nieanin<< of a contract within TJie In.snrance Act was by section "2 ((>) of that Act f,'reatly extended. For society benelits had in the meantime taken on contractual elements and would be within the intent of section 2 ((>) of Tlie Insurance Act, which includes any " contract of indemnity, ^niarantee, suretyship, insurance, endowment, tontine or an- nuity on life, or any like contract which accrues payable on or after tiie occurence of some contin- gent event." But The Insn ranee Act lidded noih- in«^" of aHirmation to the legality of society insur- ance. If the soci(»ty did not reqnire a license for any such contnict before the passing of the Act, it was not affected by The Insurance ^c*^ merely by reason of its contract being within section '2 (0). One Morris O'Heron in his lifetime was a mem- ber of the Canadian Order of Home Circles, a society incorporated under K. 8. O. 1877, c. 1(37, and was the holder of a certificate, by virtue of which his children, named therein as beneficiaries, were to be entitled upon his death to the amount named therein, and as therein apportioned. Sub- sequently O'H. made by will a different apportion- ment of the moneys under the certificate. A Ddction 7(3). I'!\i>iii|iti(iii III iiiitiirio lu>iiiiiai.<' Act. He O' Heron 11 P. K. 422. ' :( si I i 12G Insurance Corporations Act. SBction contest arisiiif^ ainon«^ the children after his death, the society paid the money into Court. Upon apphcation for payment out, Proudfoot, J., hekl that the Act 47 Vic. c. 20 (Out.), did not apply to benevolent societies incorporated under K. S. (). c. 107, and made the order for payment out of the moneys according to the certificate. 61 Vic. c. 22 <0), B8.1-2, In consequence of the decif O'Hei c c - U i 3- O £9 sion m was passed 51 Vic. c. 22, which extended the pro- visions of The Act to secure to wives and children the benefit of life Insurance " to membership, beneficiary and other certificates and contracts relating to life insurance issued or entered into by any society or association of persons for any fraternal, provident, benevolent, industrial or re- ligious purpose, among the purposes of which is the insurance of the lives of the members thereof exclusively, or by any association for the purpose of life insurance formed in connection with any such society or organization and from its members, and which insures the lives of such members, including certificates or contracts heretofore issued or entered into." The purpose of this Act, ap- parently, was not to enlarge the Benevolent Societies Act, nor to alter the legal status of any organization incorporated under it, but was simply to extend the privileges of the Act respecting insurance for wdves and children to the contracts of societies properly incorporated under the Bene- Statu8 as iT iT *f iT J?^8urance volcut Socicties Act I sce Swift V. Provincial fore%be Provident Institution, 17 A. K. per Hagarty, thf8Ac*t** C.J.O., at p. 69, and also 53 Vic. c. 39, (Ont.), s. 13, heuerolent SocicficH Acts. Ill is (loath, Upon J., hold apply to K. s'. (). Lit of the O'Heron the pro- cliihh'fu ibership, 3ontracts i into by for any al or re- which is thereof purpose ,vith any iiembers, embers, ire issued Act, ap- nevolent of any [S simply pecting ntracts e Bene- lovincial [agarty, .),s.l3, ThtM'ffect, howevtM*, of 51 Vic. c. 22, coupled with *«ctioa the decision of the Court of A[)i)('al in Swift v. Pro- vinciiil Provident w.is to reco<^Miize the statns of societies duly incorporated before the K. S. 0. 1887, c. 172, to undertake contracts of insurance; but this recognition did not extend to societies incorporated under Chapter 172 of the Revised Statutes, 1887. The Insurance Department of Canada has adopted this view of societies incor- porated under The lU-nerolcut Societies Act: Keport of Superintendent of Insurance for the year 1889, p. XXX. A registered society whether incorporated before or after K. S. 0. 1887, c. 172, may, so far as author- ized by the annual certificate issued to it, undertake contracts of insurance made with its own members exclusively for sickness, disability, mortuary or funeral benefits, or for a sum or collective sums not exceeding §3,000 in all, payable at the death of the assured, see section 4 (2) C. supra ; and if the society was on the 11th day of March, 1890, transacting exclusively with its members endow- ment insurance bona fide, and has so continued up to the date of application for registry, the Regis- trar may admit the society to registry as a friendly society transacting endowment insurance : section 4 (2) C. 2^^'oviso (a.) supra. A society may not lawfully undertake contracts other than the above. Aftor the |iiis-iiii({ (if tills Act. 12H Insiirancv Corjiorafhtfis AcL iM i-i > Sociutiud not L'lltit- lud to 1 rcKiHtrv t A t ^- If m C ' u < 31-. K- ^1 ©::> en Section H. (1) WlitTo a frifudly Hociotv othor thnn nno of the cor- Bill "" ' — porations nK'ntioni'd in soctioii I) wuh incorporated ujidt'r cliiiptcr 1({7 of tht' UcvisL'd StatuU'S of Ontario, 1H77. or undor iinv of in'tjlKtni- tioii of tlie Acts consolidatcil tlicrclty, or wan i)rior to tlio lltli til'-I . . iiuoipniii- March, IHIK), incornoratod under cliai)t('r 172 of tlu; Revised t«Ml umUir . .1. Ill iioMivo- Statutes of Ontario, 1HH7, or under any ot tlie Acts consolidated li'lit HorU'- 111 II •/! 1 1 •! 1 tUs ActHof tliorebv, and where the dechiration duly cortmed and tiled under OlMllli" 1 •' 1 • 1 » 1 1 1 • the said respective chapters or Acts declared insurance or con- tracts in the nature thereof as aiaon^' the purposes of the society, ami tile society so incorporated was on the tenth day of March, 1HJ)0, and is still at the date of application Inma (i facts, shall be entitled to be registered on the l*"rieiidly Society Uey;ister. Section t) (ride in/ra) relates to societies find ()r<^^{iuiziiti()iis deriviiiL,' their powers by virtue of a special Act, or of ii piil)li(' Act of tho Parliament of Canada. 13nt Friendly Societies, with iiisn ranee powers, incorporated under Statutes of Ontario, nuist have been so incorporated under H. S. 0. 1877, c. 107, or under any of the Acts consolidated there- by, or under J{. S. O. 1H(S7, c. 172. No society incorporated under II. S. O. 1887, c. 172, after the loth day of March, 1890, has authority to undertake any contract of insurance. Nor could an existing society amend its declaration after the said date so as to take insurance powers : 53 Vic. c. 39, (Ont.j, s. 0. As such contracts are ultra vires of a society incorporated under I'hc Bcnccolcnt Societies Act after the 10th day of Mar-di, 1890, the society is not admitted to registry. And if, although duly incorporated, the society was not in fact under- taking contracts of insurance on the 10th day of Penent/enf Soriefii'fi Actx. \1\) March, IHIKJ, and is not at the date of application *J''H?° houd Jifh' in actual and a(;tivo operition, tlu' society is not entitled to rc^'istry. This is in har- mony witli the provision that "if a hody incor- poratt'd under The lifnero/enf Socit'ties Art does n')t «(o int(. actual operation within two years after incorporation, or, for two consecutive years, does not use its corporate powers for the purpose, or for the ciiief purpose set forth in its de(daration, such non-user shall ijfsn fficfo work a forfeiture of the (corporate powers, except so far as necessary for windin«if up the corporation : section (vJ, (1), infni. If the society has less than 50 nienihers in ••ood standin^r on its hooks, or is conducted as a trading or mercantile venture, or for purposes of com- mercial gain, it is not entitled to registry as a friendly society, but is regarded as a corporation retiuired by law to be licensed for the transaction of insurance; section 4 ("2) 1), snjird. Again, if the society undertakes insurance other than contracts of insurance made with its own members exclu- sively for sickness, disability, mortuary, or funeral beneiits, or insures for a sum or for collective sums exceeding Jii>3,000 in all, payable on the death of the assured, the society is not entitled to registei- as a friendly society, section 4 (2) C, xupia. Under proviso {a) to this sub-section certain societies transacting endowment insurance arc admitted to registry. For other grounds of dis- qualification see section 4 (2) ]), .supra. The declaration duly certified and filed under D,,ciara- the Act whereby the society was incorporated pun'oses. I v> i^ i r H.l.C.A. — 9 130 Insurance Corporations Act. Section ixiust declare insi.vance, or contracts in the nature 8(1). o t C C ' U i 3- V— an Contracts must be within scope of. ■ thereof to be among the purposes of the society. It is well settled that a corporation cannot lawfully do that which its constitution does not expressly or impliedly warrant : Lindley, Law of Companies, 5 ed. 164; Hawkes v. Eastern Counties R. Co., 5 H. L. C. 331. The memorandum of association (under the English Companies Acts), is the funda- mental and (except in specified particulars) the un- alterable law of the corporation, and the incorpora- tion is ''>nly for the objects and purposes expressed in that memorandum. The inabilitj* of a corpora- tion to make contracts beyond the scope of these objects rests on an original limitation and circum- scription of the powers of the corporation b}- the law and for the purposes of the incorporation ; and does not depend upon some express or implied prohibition, making acts nnlawful which otherwise the corporation would have had a legal capacity to do : Ashbury Railway Co. y. Riche, L. R. 7 H. L. 694, per Lord Selborne ; also. Baroness Wenlock y. River Dee Co., L. R. 36 Ch. D. 684 n. per Bowen. L.J. The declaration executed by the corporators of a society under The Benevolent Societies Act answers to the memorandum of association under the English Companies Acts. Thus, in Bergman v. St. Paul Mutual, etc., 29 Minn. 275, it was held that the articles of incor- poration of a society and the statutes under which they are formed, are its charter and its fundamental and organic law, subject to the general law of the State. They fix the rights of its members, and are in the nature of a fundamental contract between the nature jociety. It Lot lawfully t expressly Companies, IS E. Co., 5 association i the funda- ars) the un- ? incorpora- s expressed f a corpora - )pe of these md circum- ition by the ration ; and or implied h otherwise capacity to R. 7 H. L. s Wenlock 384 n. jjer |ted by the Benevolent Irandum of [nies Acts. 1, etc., 29 of incor- (ider which Indarnental law of the rs, and are t between Benerolent Societies Acts. 131 the corporators, and, in practical effect, between the *®JV°)° society and its members, which neither party is at liberty to violate. The society and each member of it are bound by the charter, and neither can do what it does not authorize : Ilosenberger v. Wash- ington Mutual, etc., 87 Pa. St. 207 ; see also Bray V. Farwell, 81 N. Y. 600. ,.1 In the United States Courts two doctrines have authority respecting the right to raise the question whether the contract sued upon is intra viref^ of the corporation. The first, and perhaps the better, opinion is, that where it is a simple question of anthorit}' to contract, arising either on an issue of regularity of organization, or of power conferred by the charter, a party who has had the benefit of the agreement cannot be permitted in an action founded upon it to question its validity. The usurping or excess of corporate power is a matter to be complained of by the government. Thus, a mutual benefit society cannot defend against a suit on one of its contracts of life insur- ance upon the plea of 7iltra vires, when it has been receiving the assessments on the policy : Matt v. Roman Catholic, etc.. Society, 30 N. W. Rep. 799 ; where the contract has been fully performed by the party contracting w4th the society, and the society has received the benefit from such contract, it cannot invoke the doctrine of ultra vires to defeat an action brought against it on such contract : Bloomington Mutual Life Benefit Association v. Blue (1887), 16 Ins. Law Journal, 486, 120 111. 121. Cltra vireg, who may set up. 182 Insurance Corponifions Act. Section 8(1). Thu two doctrines reconciled, c c - ^ Under this Act. The second doctrine permits either party to the contract to set up the want of power in the society to enter into such a contract — not that either party stands in a position entitHng such party to take advantage of the want of such power, but on grounds of pubhc poHcy ; and the defence so set up is regarded as the defence of the public, not that of the contracting party urging it : Mutual Benefit Association v. Hoyt (1881), 10 Ins. Law Journal ()'2G, 40 Mich. 473 ; see also Lindley, Law of Companies, 5th ed., 285. Cases might be multiplied in support of either view (see Niblack on Mutupl Benefit Societies, § 7 et seq.), but perhaps the true statement of the law is : — Where the nltra vires is predicated of a whole class of contracts undertaken by the society, then, on grounds of public policy, either party may raise the question. But where the question is not of the validity of a whole class, but is particular and relating to the special contract in dispute as being without the constitution of the society, then, as the society has had the benefit of the contract it will not be permitted to urge that it had no authority to imdertake the contract. As a certificate under the hand of -the Registry Officer and the seal of his office, that on a stated day the corporation mentioned therein stood regis- tered within the meaning of the Aci is prima facie evidence in any Court of the facts alleged in the certificate (section 2(5 (5) infra), and as the authorilj of a corporation to undertake contracts of insurance is to be proved on an application for Bt'iti'coUnt Societies Acts. 188 rej^istry, it is probablo tlint the question of con- ^g']J"" tracts of iiisumnce ^'enerally being ultra vires of^;^,,;;;^— the society will not be raised in an action on such '''""'''""* a contract, or if raised, that the Court will hold that the llegistrar's certificate is conclusive. The certificate issued specifies the kind of insur- ance for which the corporation is roi(istered: e IIP ParticMlfer section IB, infra. Therefore, the defence may be^o'"™"" set up by the society that a particular contract is ultra vire.s by reason of not being within the pur- poses stated in the certificate. It will probably be held, as above, that the society by such plea can not escape the burden of a contract of which it has received the benefit. It seems that a quo warranto proceeding mayi'»oceed be had in United States courts to dissolve alV.!ii^lr society which has usurped functions. Thus, in a quo warranto against an incorporated society, where it had assumed franchises not granted, and it appeared that the certificate of" incorporation did not comply with the requirements of the statute under wdiich it was organized, the court, in the exercise of its discretion, ousted the society of its franchise to be a corporation : State v. Central Ohio Mutual Belief Assoc, 29 Ohio St., 899 ; also State ex rel. v. Peoples, etc., Assoc, 42 Ohio St., 579 ; see also Morawetz on Private Corporations, § 1022. In England proceedings may be had at the instance of the Crown to recall a charter of incorporation, on the ground that it has been obtained by means of a fraud on the Crown. It is competent, moreover, to proceed by (pio war- ranto^ and to show that persons who represent society. irarranto. I li I I 134 Insurance Corporations Act. Section 8(1). themselves as members or officers of a corporation - are not so. But some members of the corporation may not ask the court to have it declared, as against other members of the corporation, that the incorporation was obtained by fraud or irregularity : Glover v. Giles, L. R. 18 Ch. D. 173. The grant or refusal oi^L quo warranto informa- tion is in the discretion of the court (Shortt on Informations, 122), and the court will, it seems^ be influenced by the consideration that the ques- tion involved Miay be otherwise tried : ihid. 148. I? 53 Vic. c. 39, 8.10. C C ■' In Ontario there is statutory provision for revoking the corporate power of a society. " If after a reasonable time has been given to the cor- poration to be heard, it appears to the Lieutenant- Governor in Council that any body incorporated under the provisions of The Act respecting Benevo- lent^ Provident and other Societies is using its cor- porate powers lor any fraudulent or other unlaw- . ful purpose, it shall be lawful for the Lieutenant- Governor in Ccmicil to suspend for a limited period ^ or to revoke the said corporate powers, and on any revocation the corporate powers shall ipso facta absolutely cease and determine except for the sole purpose of winding up the affairs of the corpora- tion " : 53 Vic. c. 39, s. 10. Under this section were revoked the corporate powers of The Septen- nial Benevolent Society and of The Lion Provident Life and Live Stock Association. See Ontario Gazette, April 11th, 1891. Beiiet'olettt Societies Acts. 185 )rpoi;ition )rporcition dared, as I, that the egularity : ) inform a- Shortt on it seems^ the ques- id. 148. ision for ety. "If I the cor- eutenant- orporated Benevo- g its cor- r unlaw- utenant- d period^ d on any uso fcicto the sole corpora- section Septen- frovident Ontario The right of any corporation to transact in *®8*J°" Ontario the business of insurance depends upon Kevoeauou registration under this Act: section 27 (1) iufr((. Act' And upon proof that any registry or certificate oi registry has been obtained by fraud or mistake, or that a corporation exists for an illegal purpose, the registry of the corporation may be suspended or cancelled by the Kegistrar: section 25 (1) infra. An appeal may be had from the decision of the Registry Officer to a Divisional Court of the High Court: section 51 (1) infra. Notir»^ of cancella- tion of the registry of a society incorporated under the Jaw of Ontario operates ipso facto to make the treasurer, or other officer in custody of the funds, interim receiver for the society, and the winding-up of the society proceeds without the intervention of an application for a winding-up order: section 53 /«/;•«. After notice of cancella- tion, the society must absolutely cease to under- take contracts of insurance and must withdraw every offer to undertake such contracts : section 25 (2) infra. To entitle a society to registration, it musti^iffio?" show that it is managed and operated according to"^*^*'^* the true intent of the declaration of purposes filed on incorporation, and of the Act under which the declaration was filed. See section 8 (2) infra^ for discussion of those matters relating to the manage- ment of the society which disqualify the society for registration. Due application for registry includes supplying the evidence, information and material, required by the Registrar: section 12 (1) infra. In particular J 130 Insurance Corpordtioim Act. Section 8 (l)-(2). duplicate certified copies of the constitution, rules, laws and regulations of the society, must be tiled with the Registrar; as must also be filed a financial statement of the society up to the last balancing day of the society, or if such balancing day be more than twelve months prior to the date of filing then up to the preceding 31st day of December. This statement must be signed by the president and secretary, or other proper officers of the society, and must be verified by their oath : section 12, infra. The fees prescribed in respect of the application, section 62, division I., 3, infra, must be paid to the Provincial Treasurer before the application will be considered: section 2 (22) snpra and 02, mfra. "Upon proof of the fact" means upon proof to the satisfaction of the Registrar: section 2 (23) supra. c > O Coutiol of insur- ance funds must be in members or their annually elected represeu- tatives. Conipaio sec. 4(2i D. (2) No such friendly society shall be deemed to be managed and operated accordmg to the true intent of the Act i-esjiectimi Benevolent, Provident and other Societies, unless the persons insured in or by the society exercise, either directly or through representatives, elected for a term not exceeding three years, effective control over the insurance funds of the society ; and no friendly society whatsoever, wherein the persons, who by virtue of their office have the disposition, control, or possession of the insurance funds hold such office for life, shall be eligible for registry under this Act. So also section 4 (2) D supra : — If the corpora- tion is in effect the property of the officers or collectors thereof, or belongs to any private pro- prietar}^, or ii ihe insurance funds of the corpora- tion are held other than as trust funds for the members, the corporation, however incorporated. ion, rules, st be tiled L financial balancing y be more iling then 31'. This ident and B society, 12, infffi. •plication, e paid to pplication t and G2, iins upon : section be managed t resjii'ctinif le persons or through iree years, ty ; and no by virtue ion of the eligible for corpora- ficers or ate pro- corpora- for the orated. Beutrohnt SociefieH Avt.s. 187 K.S.O. 1-^7 is not entitled to registration as a friendly society, ^^fj?" but is deemed to be recpiired by law to be licensed for the transaction of insurance. From the whole tenor of Tlic Benevolent No-p"*'*'.';"^ cieties Act it seems clear that the Act contemplated'''''''""' only corporations organized and administered on the representative system, that is, corporations in which the executive officers are at short intervals directly elected by the members assembled inc. 1-2 general meeting. Thus, the declaration is to state the names of those who are to be the first trustees or managing officers, and the mode in which their successors are to be appointed. One of the original parts of the declaration is 1 1 be filed in the registry office of the county or union of counties in which the v.voiety is to hold its annual and general meet- ings : E. S. 0. 1887, c. 172, s. 2. The society may, from time to time, appoint trustees, a treasurer, a secretary and other officers for conducting its affairs and for the discipline and management of the society ; and may, from time to time, make by-laws, rulee or regulations for the government and for condi acting the affairs of the society, or of any branches thereof; and may, from time to time, alter or rescind such by-laws, rules or regulations : ibid. s. 4. That Act speaks of the executive officers as temporary, not perpetual. Thus, in section 5 (1), also in section 6 (1), the executive officers are described as "The trustees or office-bearers for the time being." These executive officers cannot, without a special mandate from the members, mort- Lfie, sell, exchange, or lease any lands of the »^5 society : ibid. s. 14. P 188 In^urarxe Corjio rations Act. Section 8(3). f c - ZJ CO In New York Life Ins. Co. v. Styles (1889), Compare ^' ^^' ^"^ ^^PP' Cuscs, Lovcl Heischcl, at p. 409, coinSany'*" HHys '. — " In the CRse before us certain persons have associated themselves together for the purpose of mutual assurance ; that is to say, they contribute annually to a connnon fund, out of which pay- ments are to be made in the event of death to the representatives of the persons thus associated together. These persons are alone the owners of the connnon fund, and they and they alone are entitled to the management of it." haxSec- ^ corporation was organized under a statute ov^'er'^affaka that providcd that the affairs of the corporation should be managed by not less than five directors or trustees elected from and by members. The application for membership contained a form of proxy which the applicant was requested to sign in blank and forward to the secretary. The secre- tary held by this means a great number of such proxies. By aid of the proxies a resolution was carried that the manager and secretary should thereafter be elected annually by the members and not hold office by appointment of the board of trustees. From that time the board of trustees ceased to have control; the real governing authority being the manager and secretary, who held a sufficient number of proxies to perpetuate themselves in office and conducted the business of the association as they saw fit; Held, a violation of law and a fraud on the members justifying dis- solution of the company: Chicago Mutual Life Indemnity Association v. Hunt, Attorney-General, 111. S. C. 1889, 20 N. E. Rep. 55. Benevolent Socletien Acts. 131) "A shareholder has a clear right to relief where ^J"*^**" the directors wrongfully refuse to call a nieetiiig ;^i^;,j,^;^^ for the election of new officers, and a meeting cannot be regularly called except by action of the directors. The remedy under these circumsitances is by bill in equity on behalf of the corporation, or, when the obligation to call a meeting is imposed by statute or the charter, by writ of mandanuis:" Morawetz on Private Corporations § 273; Thames Haven Dock Co. v. Ross, 4 Man. & Gr. 559. The trustees of a society are charged with the |5S{™ °^ duty of faithfully executing the trust which the laws and regulations impose upon them. They are entitled to a reasonable compensation, but any plan or scheme by which money is collected from members, by assessment or otherwise, with a view to profit by the trustees and beyond what is necessary to defray the reasonable expenses of executing the trust is a breach of trust: State V. Standard Life /Ssociation, 38 Ohio St., 281. Moneys wrongfully divided among officers may be recovered back: McCarty's Appeal, 17 Weekly Notes of Cases, (Am.) 182. The salaries of officers of voluntary societies must not, especially when the officers fix the amount of their own salaries, be out of proportion to the amount of responsibility and labor devolving upon them. Such trustees, unless specially invested with the additional capacity and authority of officers or agents, are limited in their claims for compensation to such sum as will reasonably compensate them for the time and expense incurred in going to, attend- 140 Tnsunince (Un'p(>r(ifiJ of TJic Insurance Act,' applicable to fraternal and benevo- lent associations, and is not subject to Governnient inspection:" section 8. Every ofTicer or other person v»ho transacts"" business for the society, issuin<^^ policies or applica- tion for membership on which such notice is not printed shall, on summary conviction thereof before any two Justices of the Peace, incur and be liable to the penalties mentioned in section 22 of The Insurance Act, and every pecuniary penalty so received shall be applied in the manner provided by the said section : section 9. Certified copies of the constitution and chancres « lo. , . ^ " Cf. sect.-^. thereni are to be deposited within three months {.f;,^^^^;;^. after making w^ith the Secretary of State and the Superintendent of Insurance : section 10. ** Nothing herein contained shall be held to exempt the society from the effect of any legislation hereafter passed by the Parliament of Canada in respect to any insurance powers exercised by friendly societies:"^" section 11. II. The Grand Orange Lodge of British America ^'?*^. ^'"^""^ ion OrauKe of was incorporated by 53 Vic. c. 105 (D.). The ActKufsh is, in its terms, very similar to the Act 52 Vic. 53Vic!c*io5 •^ ID). i! \i 144 Iiiaii ranee Corj)orations Act. S.2. 8.3. i C C ■' U-i 3:: £2 Section (.. 104 (D.), incorporating the Supreme Court of the "" Independent Order of Foresters. The important variations are as follows : The head office of the Association shall be in the City of Toronto, or such other place in Canada as is from time to time determined by the Association : section 2. "Subject to the constitution and laws of the Association, lodges under the names of Provincial Grand Lodges, County Lodges, District Lodges, and Primary Lodges may from time to time be established under the title designated in the warrant constituting such lodges; and the said lodges, if established within Canada, may them- selves be and become bodies corporate under such provisions and conditions and with such powers as the association by its constitution and laws from time to time determines; provided always that such powers shall not be in excess of those conferred on the association by this Act, and each of such lodges shall be so incorporated under the corporate name of "The Loyal Orange Lodge number (giving the number of the lodge);'' and upon being established and before proceeding to act as such corporation, the association shall cause to be registered at full length in the registry office of the city, county or registration division within which such lodge is established, a declaration stat- ing the fact of such establishment, the date of the instrument effecting it, and the corporate name of such lodge :" section 3. "Due application" includes payment to the DiH" "*'^'^""^''°" Provincial Treasurer of the fees prescribed in sub-section 8 D. of Division I. of section 62 infra ^ Under Acts of Canada. 145 and the application must be accompanied by the ^J'JJ)"* evidence and material required by sections 12 and 13 (vide infra). (2) Any corporation not provided for elsewhere herein, which has, by virtue of an Act of the Parliament of Canada, an insur- ance and provident society or association, or an insurance or guarantee fund in connection with the corporation, shall, upon due application for registry under this Act, be entitled to be registered on the Friendly Society Register. Under this comprehensive clause various cor- porations are entitled to register as friendly societies. Iiisurauco and benefit societies or fuiulsiii connection with sun- dry cor- porations. I. The Grand Trunk Bailway of Canada G.T:.n.ot Superannuation and Provident FundAo which the super- -'- ' annuatK luation Kailway Company contributes, was established 37 jent^Fund. Vic. c. 65 (D.) (amended by 41 Vic. c. 25 (D.), for superannuation of servants of the company, for payment of allowances to such servants in case of sickness, or to their widows or children or repre- sentatives in case of their death : section 11. The Grand Trunk Railway Company of Canada was empowered to make, either separately or in con- nection with the Superannuation and Provident Fund authorized to be created by 37 Vic. c. 65, (D.), provision for insurance against accident to its employees, which may include insurance against death, the payment of allowances during any period when the}' may be unable from accident or sickness to follow their ordinary calling, and the providing of suitable medical attendance : section 2. It was further provided that the provisions of the Act establishing the Superannuation and Provident H.I.C.A. — 10 « < 1 .5 i 146 Insurance Corporations Act. Section 9(2). Manage- ment of fund. c C ■" 3C I— o CO en Fund, as regarded the scheme and the manage- ment thereof, should apply to the Insurance Fund created, whether the Insurance Fund was organ- ized in connection with the existing Superannua- tion and Provident Fund or separately : section 4. The organization and management of the fund stand as follows : — The Grand Trunk Eailway pre- pared a scheme, sealed with the corporate seal, and containing rules and regulations for the for- mation, investment, management and distribution of the fund. Power to alter the rules and regula- tions, from time to time, is reserved by the said scheme and the rules and regulations thereunder : section 17. The Fund is vested in and belongs to the committee for the time being having the manage- ment of the fund under the provisions of the Act establishing the fund, and of the rules and regulations for the time being in force. Such committee may sue and be sued in the name of their secretar}*, and shall invest, manage and distribute the fund in accordance with the pro- visions of the Act constituting the same and the said rules and regulations : section 14. The committee is the "branch "within the proviso under sub-section 4 (a) of section 2 of TJic Insurance Corporations Act; and, therefore, this committee is the societ}' or corporation for the purposes of the Act: and it is the duty of the committee to keep the distinct and separate funds, books, accounts and vouchers required bj' the said section 2 (4)a, and in other respects to conform to manage- Qce Fund IS organ- leranniia- section 4. the fund I way pre- date seal, the for- ;tribution d regula- the said sreunder : igs to the manage- s of the ules and Such name of age and fche pro- and the hin the > of The )re, this for the of the e funds, he said form to Under Acts of Canada 147 all the provisions of this Act relating to societies ^}\^^ . , ^ (2). undertaking contracts of msurance m Ontario. A by-law of a railroad relief association, By'a^s •/ ' protecting requiring the member to release the railrr lfn",rciaim company from any claim for damages be. ^re "°* ^°"*' applying to the association for relief, is not against public policy, as it simply puts a claimant to his election whether he will look to the railroad com- pany or the relief association for damages : Owens V. B. & 0. E. E., (U. S. C. C.) 1888, 35 Federal Ee- porter, p. 715; compare E. S. 0. 1887, c. 141, s. 16. XL Tlie Great Western BaiUvaii Superan7ina-<^i'^'>-^- tion and Provident Fund. — This was established ^JJ^^p*!^^.?! by virtue of 43 Tic. c. 49, (D.) and similar provi- '''^"' '""''• sions to those just noted were enacted relating to the rules and regulations governing the same and ■ to the committee of management thereof, and the same remarks apply equallj' to this as to the Grand Trunk Eailway of Canada Superannuatio]i and Provident Fund: ride 43 Yic. c. 49 (D.), ss. 2-7. III. The Canadian Pacific Baihvajj Eniploijecs' Belief Association. — In this instance a separate corporation was created b}' 48 6: 49 Yic. c. 23 (D.), the objects of which are to extend relief in cases of sickness, injury, old age, accident, or death to the emploj^ees of the Canadian Pacific Eailway Com- pany. The Company guarantees the faithful and true performance of obligations of the Company, section 3. The powers are exercised by a commit^^ee of management consisting of ten persons, section 4. The superannuation and provident funds, composed c. p. K. Emplovefs Relief As- sociation. 148 Insurance Corporations Act. iW i Pension C Fuud Societies ^ C ' U-J 3.: K- o """T ■V-vl £2 en **Sm°" ^^ contributions of members, of the company and of others, are vested in a board of five trustees, section o. The committee of management, by by-law or regu- lation, define the benefits which members of the association and iheir familios may derive from the funds of the association and prescribe the terms and conditions on which members and beneficiaries shall become entitled to such benefits. By-laws and regulations, and amendments thereof, are to be approved by the Company, section 8. The head office of the Association is in the City of Montreal,, section 10. For purposes of the present Act the Association is the corporation meant in this sub-section of section 9. This group includes The Pension Fund Society of the Bank of Montreal, nicorporated by 48 & 49" Yic. c. 13 (D.) and The Guarantee and Pension Fund of the Dominion Bank, incorporated by 50 & 51 Vic. c. ^^ (B.), and also any pensic i fund society established under the provisions of the Act to empower the emplmjees of incorpoiated companies to establish pension fund societies : 50 & 51 Vic. c. 21 (D.) The president, vice- president, general manager, assistant general manager, or person acting as such, cashier, assist- ant cashier, and inspector of any corporation legally transacting business in Canada, under any Act of the Parliament of Canada, or any two of the said officers, with any of the superior officers, may at any time establish a pension fund society in connection with the administration of such corpo- ny Hiid of section o. ' or regii- rs of the from the he terms leficiaries By-laws are to be rhe head d^ontreal,. isociation Bction of i Society ^ 48 ct 49" Pension ated by c 1 fund of the rporated ocieties : I, vice- general assist" 1 legally r Act of he said may at iety in corpo-^ Under Acts of Canada. 149 ration under the regulations and subject to the ^^^l^)^ supervision and control, specihed in the Act. ~ Thereupon the said officers and the employees of such corporation who join the said society shall be and be designated as the pension fund society of the corporation in whose service they are, called "the parent corporation" and under such name shall be and become a body corporate and politic, section 1. The officers of any corporation who desire to establish a pension fund society under the pro- visions of the Act, and who are by section 1 authorized thereto must make and sign a declara- tion in duplicate in the following form, or using equivalent words, section 2. " DECLARATION OF INCORPORATION. tiou. "We, the undersigned (describe the officials Dec]&ra- estahlishing the society) do hereby declare that we have associated ourselves together for the purpose of establishing a pension fund society in connection with the administration of the under the provisions of The Act to emj^oiver the Employees of Incorporated Companies to establish Pension Fund Societies. " That the proposed corporate name of the society shall be the Pension Fund Society of the That the chief place of business of the said society is to be within the of And we make this declaration for the purpose of establishing the said society under the said Act. il °\ '\i 150 Section 9(2). Insurance Corjiorations Act. In witness whereof we have executed these presents in duplicate at in the presence , this day of ,18 Signed in the presence ) of i of {Signatnre) O CO This declaration must be filed in the office of the Secretary of State of Canada and in the office of the Kegistrar of Deeds for the registration division within which the chief place of business of the society shall be situated : section 2 and schedule to Act. The officers who make and sign organiza- ^j^g declaration are the provisional directors of the society and hold office until their succes- sors are appointed : section 2. Notice of the incorporation of such society must be given in the Canada Gazette for four weeks. Such notice must contain the exact name adopted by the society, its chief place of business, the name of the secretary thereof upon whom legal process may be served. Notice of any change in place or secretary is given in the same manner: section 3. Provisional directors can call the f rst meeting of the society. At this meeting directors may be elected and by- laws passed. Copies of all by-laws and changes therein must be filed within two weeks after pass- ing, with the Secretary of State : section 4. The affairs of the corporation are administered by a board of directors. The number, qualification and manner of election are fixed by by-law. Other officers may be appointed in such manner as directed by by-laws which may also provide for their com- pensation and determine their powers and duties : Uiidtr Acts of CcuKifhi. V 151 ed these presence ,18 hire) office of he office [ist ration isiness of 2 and and sign actors of succes- i of the 3n in the ;ice must ciety, its ecretary served, etary is )visional society, and by- changes er pass- 1. The d by a ion and Other iirected sir corn- duties : section 5. Each contributory to the fluids of the section '' 9 (2). society, inchiding the parent corporation, shall — have such right to vote at general meetings as is powers of provided by the by-laws : section 5 (2). The society ^°'"'''^" has power by means of voluntary contribution or otherwise, as the by-laws provide, to form a fund out of which to provide for the support and pay- ment of pensions to officers and employees of the parent corporation, incapacitated by age or in- Urmity, and upon the death of such officers or employees may pay annuities or gratuities to their widows and minor children or other surviving relatives in such manner as by such by-laws may be provided: section 6. The society may make by- law^s, not contrary to law, for formation and main- tenance of the fund, for the management and distribution thereof, and may thereby define and regulate the rights, powers and duties of the society and of individual members thereof, and may provide for penalties and forfeitures. The society may in accordance \vith the by-laws alter, amend, or repeal by-laws. But no by-law shall have any force or effect unless the same has been sanctioned by the board of directors of the parent corporation : section 6. All the revenue of the society shall be devoted exclusively to the maintenance of the society and the furtherance of the objects of the fund: section 7. The parent corporation may contribute to the fund: sections. The interest of any member in the funds of the society is not transferable or assignable in any manner w^hat- soever by way of pledge, hypothecation, sale or - 1 152 luHurauce Corporations Act. en When within this Act. Due appli- cation. ^ *-• C i Trade t union insurance benefit C ' societies. 3:: h- O I-l oa ■R. fi.C. c. ^9*3^ ss^^^i'i^y- section 9. The society is to make returns when required: section 10. Only so far as, by the constitution and by-laws of any pensioijjund society, the society's payments to members are made matters of contract, are such organizations within the intent of this Act : section 4 (2) B, supra. Due application includes payment to the Pro- vincial Treasurer of the fees prescribed in sub- division 4 of Division 11. of section 62 infra; and the application must be accompanied by the evidence and material required by sections 12 and 13 : vide infra. (3) Any lawfully incorporated Trade Union in Ontario which, under the authority of the incorporating Act, has an insurance or benefit fund for the benefit of its own members exclusively, shall, upon due application for registry hereunder, be entitled to be registered on the Friendly Society Register. A "trade union" means such a combination, 131 Xr&do Union Act, whether temporary or permanent, for regulating Si 2i the arrangements betw^een workmen and masters, or for imposing restrictive conditions upon any trade or business, as would, but for The Trade Union Act, have been deemed to be an unlawful combina- tion by reason of some one or more of its purposes being in restraint of trade : K.S.C.c. 131, s. 2. Acts in force in Canada providing for the incorporation of charitable, benevolent and provident institutions do not apply to trade unions: section 5. Trade iniions obtain corporate existence by registration in accordance with the provisions of The Trade Ufuhr Act.'i of Ciuutda, 15;^ B returns [ by-laws layments 'act, are :his Act: • the Pro- in sub- ^ra; and by the s 12 and ario which, insurance xclusively, entitled to dnation, filiating [nasters, )on any \e Union )mbina- )urposes |2. x\cts )oration itiitions Trade jtration Trade Union Act: section G. A certificate of such ^^^V:PJ^ registration is suHicient proof that the trade union is hiwfully incorporated for the purposes of the Act: section 14 (5). The registered rules of the trade union nuist set out every object for which ^^"'" the trade union is to be established, the purposes for which the funds thereof shall be applicable, and the conditions under which any member may sSJio become entitled to any benefit assured thereby, and the lines and forfeitures which may be imposed on any member of such trade union: Schedule 2, E. 8. C. c. 131. Although a trade union may have, under the authority of The Trade Union Act, an insurance or benefit fund for the benefit of its own members exclusively, no provision was made in the incor- porating Act whereby a member might enforce his demand. For it is enacted by section 4 of The Trade Union Act that "nothing in this Act shall enable any court to entertain any legal proceeding instituted with the object of directly enforcing or recovering damages for the breach of any of the following agreements: * # * (^3^ ^^^y agreement for the app^i'.ation of the funds of a trade union to provide benefits to members." Jurisdiction over any contract in the nature of insurance entered into by the trade union and member falls within the jurisdiction that the Province exercises over civil rights. Accordingly, after registry on the Friendly Society Register of any trade union its insurance contracts are legally' in the same position as contracts of other friendly societies. s. i. i ■ it 1:1 154 Iiisfd'dNce Corpordfioits Act. Section Due application for re«^istry includes payiiienb Dii7.^.pir to the Provincial Treasurer of the fees prescribed in sub-division 4 of Division II. section 62, iiifnt. lA Jjtu^t. ^76 The application must be accompanied by the material and evidence recjuired by sections 12 and 13, infra. c c - Ui x: O CO I'roviso. Provided that, where any organization of workmen not enter- ing into a formal contract of insurance with iis members, pro- vides by its constitution, by-laws or rules for the assistance, relief or support of its members, the Registrar may, by writing, under his hand and the seal of his office, declare the organization exempt from the operation of this Act; and such certificate shall remain valid until by like writing revoked ; and the organ- ization so exempted shall not be subject to any penalty imposed by this Act. The llegistrar has discretion to grant a certiti- cate of exemption from the operation of this Act to any organization of workmen not entering into a formal contract of insurance. The payments of such an organization are on the borderline between contractual obligations and donations. Until such certificate of exemption is revoked the organization is exempted from any penalties imposed by the Act to which it might otherwise be liable. Insurance (^) "^"y Corporation in Ontario which at the passing of this ?tmd"*^ Act has under authority of an Act of Canada created a fund for aifAc^t^o^^ paying a gratuity on the happening ot death, sickness, infirmity, Canada, casualty, accident, disability, or any change of physical or mental condition, shall upon due application for registry hereunder be entitled to be registered on the Friendly Society Register. This sub-section admits of the registration on the Friendly Society Register of certain corpora- tions which have, under authority of an Act of Under Acta of Caudda. 155 CciUculii, crcutt'd II fund for ])' to d in its les: The tr. Oil; p. 009. validly nsiness [1 sne in there : . 341; U. C. ard, () these true, Sfftfns of Foreif/n CorpovaiinuH, viz., that a corporation formed to carry on a parti- cular business in one country exceeds its pcAvers if it carries on a similar l)usiness out of that coun- try: Lindley, 5th ed. p. 910, note (k). The tru<» ([uestion is noi whether one state can l(»<^'ally "^^i-ant powers of contractin«^% etc., in anotluT State, hut to what extent does one state reco«,nii/e the acts of another. The rii^ht of a corporation to sue in a forei«,'n country, as well as its ri<^ht to contract in a foreign country, are both based, not on the law of the State creating the body corporate, but on the extent to which the foreign country chooses to recognize that law. See also Douglas v. Atlantic Mutual Life Insurance Co. of Albany, New York 25 Gr. 879. The rule of law above stated is said to exist by the comity among States: Morawet/, Law of Private Corporations, § 900. " We think it well settled that, by the law of comity among nations, a corporation created by one sovereignty is permitted to make contracts in another and sue in its courts; and that the same law of comity prevails among the several sovereignties of the Union": per Chief Justice Taney in Augusta v. Earle, 13 Pet. 519, 592. "In harmony with the general law of comity obtaining among the States composing the Union, the presumption should be indulged that the corporation of one State, not for- bidden by the law of its being, may exercise within any other State the general powders conferred by its own charter, unless it is prohibited from so doing, either in the direct enactments of the latter State, or by its public policy, to be deduced from the general course of legislation, or from the settled 157 Sectloa 9(4). ,L % H 3 158 Insurance Corporations Act. Section 10(1). adjudications of its highest court: " by Justice Har- lan in Christian Union v. Yount, 101 U. S. 356. Any foreign corporation satisfying the require- ments of The Insurance Corporations Act may be admitted to registration and thereafter is entitled to transact the business of insurance in Ontario. Foreign Friendly Societies. Foreign friendly societies C ■" o CO lO. — (1) Where a solvent friendly society other than as in the next preceding section included, being duly incorporated, organized, managed, and operated elsewhere than in Ontario, and having in Ontario an agent duly authorized by power of attorney to receive process in all actions and proceedings against the society, was before the eleventh day of March, 1890, in actual bona fide operation in Ontario, and at the date of appli- cation for registry has a subsisting membership of at least five hundred persons, such persons being bona fide residents of Ontario, then, the Registrar upon proof of such facts, and upon proof that the society, if incorporated, organized, managed and operated in Ontario, would be a provident society within the meaning of Act respectimi Benevolent Provident and other Soo^ties authorized to enter into such contracts of insurance as are by the said society undertaken, the Registrar may, on due application, admit the society to registry as a friendly society. Societies incorporated under statutes of Ontario, e.g., K. S. O. 1887, c. 172, obtain registry, by virtue of section 8, snj^ra ; other societies which, although incorporated in Ontario, derive their powers from an Act of the Parliament of Canada, register under sub-sections 2, 3 and 4 of section 9, supra. And societies incorporated by special Acts of the Parliament of Canada obtain registry under sub-section 1 of section 9, supra. Any other insurance corporation, not being a licensed Foreign Frioulli/ Soi'iefies. 159 ooinpan)^ or a corporation required by law to be ^^^}^^ licensed, must qualify for registration under the ~ " present section. The following are the rerfuire- ments : (a) The society must be solvent, that is, the society to society either must have no present liabilities apart ^^ ^''''^"^• from actuarial liabilities [ride section 2 (16), sKjn-a), or must have immediately realizable assets ade- quate to discharge its present actual liabilities: sub-section 2 of this section, infra. A financial statement of the affairs and condition of the cor- poiation up to the last usual balancing day, if not more than twelve months before the filing of the statement, or up to the preceding 31st day of December, and verified by the oaths of the oilicers, must accompany the application for registry. (b) The society must have in Ontario an agent duly authorized by power of attorney to receive process in all actions and proceedings against the .societ3^ The power of attorney must accompany the application and must be under the seal of the corporation and be signed by the president and secretary or other proper officers thereof in the presence of a witness who must make oath or affirmation to the due execution thereof. Some person cognizant of the facts must also make affidavit as to the official position in the corporation held by the officers executing the power of attor- ney: section 14 (1), infra. The power of attorney must declare at w4iat place in the Province the chief agency of the corporation is established and must expressly authorize the attornej' to receive To liavc authorized attorney iu Ontario. m c " 3- o 100 Insurance Corporations Act. *i?(i? service of process and notices from the Eegistry Officer and must also declare that such service shall be legal and binding on the corporation for all purposes: section 14 (2), infra. A duplicate of the power of attorney duly verified as above and of the financial statement must be filed at Toronto in the office of the Clerk of the Peace: section 15^ infra ; For form of power of attorney, see Appen- dix B. To bavo been ill operation in Ontario before lltli March, 1890 To have at date of ap- jilication 500 mem- bers in Ontario. (c) The societj' must have been ho7ia fide in operation in Ontario before the 11th day of March,. 1890. No society incorporated after the 10th day of March, 1890, under the Benevolent Societies Acty has authority to undertake contracts of insurance. A foreign society is for the purpose of this Act regarded as in no better position than one incor- porated in Ontario. (d) The society must have at the date of appli- cation for registry a subsisting membership of at least five hundred persons who are bona fide resi- dents of Ontario. Unless the time for delivery of application be extended by the Eegistry Officer,, the society must make application for registry on or before the 30th day of June, 1892, section 12, infra. (e) The society must show that if incorporated, organized, managed and operated in Ontario, it would be a provident society within the meaning of The Benevolent Societies Act authorized to enter into such contracts of insurance as are by the society undertaken. Therefore any foreign society either: — Eegistry 1 service ation for plicate of ve and of oronto in ction 15^ e Appen- la fide in 3f March,. 10th day eties Act, iisurance. this Act me incor- of appli- ^hip of at de re si- livery of Officer,, istry on tion 12, .'porated, itario, it Imeaning to enter by the |i society Foreign Friendly Societies. 161 (1) Undertaking insurance other than con- ^J^JJ" tracts of insurance made with its own^rg^^^:^ members exclusively for sickness, disability, fueifgibie. mortuary or funeral benefits, or for a sum or collective sum not exceeding $8,000 in all, payable at the death of the assured, or for the fidelity of members as financial officers of lodges, section 4 (2) C supra; or, (2) Undertaking contracts of assessment en- dowment, section 4 (2) C proviso a, supra ; or, (8) Which is in effect the property of the officers or collectors thereof, or which be- longs to any private proprietary, or which is conducted as a trading or mercantile venture, or for the purpose of commercial gain, section 4 (2) D. supra; or, (4) Being a society .the insurance funds of which are held other than as trust funds for the members: section 4 (2) D. supra; or, (5) Being a society in which the persons insured do not exercise directly or through elected representatives, effective control over the insurance funds of the society: " section 8 (2) supra; or, (6) Being a society wherein the person who, by virtue of their office, have the disposition, control or possession of the insurance funds, hold such office for life, section 8 (2) supra, is not eligible for registry as a friendly H.I.C.A— 11 i 162 Insurance Corporations Act. t C C ^ U-i 3:: O Payment of fees. JJ^^Jj"" society under this Act, although in other respects it may satisfy the requirements of this section. (f) The society must pay the fees prescrihed in sub-division 3 D of Division I. of section 62, infra. The society must prove to the satisfaction oi the Registrar that it is ehgible under the fore- going conditions for registry as, a friendly society. The Registrar renders his decision in writing and a certified copy of his decision is furnished to the society: section 50, infra. An appeal may be taken by the society from the decision of the Registry Officer: section 51, infra. Provided that a society duly registered under The Friemlbi Societies Act, 1875, or any Act consolidated thereby or any amending Act thereto, passed by the Parliament of the United Kingdom, shall be deemed to be duly incorporated for purposes of registration under this section. Societies Tlic orgamzatiou of ^ society registered under s9\tc.c.mT]ie Friendlfj Societies Act, 1875, (Imp.) is as follows : — It is the duty of the society to appoint from time to time one or more trustees of the society and to send to the Registrar a copy of the resolution appointing a trustee, signed by the trustee so appointed, and b}" the secretary of the 8.i4;b)j society: section 14 (b). The trustees, with the consent of the committee of management, or of a majority of the members present at a general meeting may from time to time invest the funds of 8.16(1) the societj^: section 16 (1). The society may pur- chase or lease land for the purposes of the society in the names of the trustees for the time being : Foreign Friendhj Societies. 163 in other 3meiits of scribed in ction 62, tisfaction the fore- y society, iting and ed to the [ may be 1 of the 'he Friendhi eby or any the United )r purposes d under ).) is as appoint s of the copy of by the y of the ith the or of a general ■unds of lay pur- society being: Section 10 (1). (2). 8. IG (2) 8.16(3) s. 21 (1), (2). (3) Lepal pro- ceediuRs by and a^'aiust sucioty. section 16 (2). All property belonging to a society vests in the trustees for the time being: section 16 (3). The trustees of any society' or branch, or any other officer authorized by the rules thereof may sue or be sued in any court in their proper names, without other de'^'^ription than the title of the.v' office: section 21 (1). A member or person claiming through a member may sue the society in the name, as defendant, of any officer or person who receives contributions or issues policies on behalf of the society within the jurisdiction of the court in which the suit is brought, with the addition of the words, ''on behalf of the society" {naming the same)''', section 21 (2). No legal proceeding shall abate or be discontinued by the death, resignation, or removal from office of any officer, or by any act of such officer after the com- mencement of the proceedings: section 21 (3). For purposes of registration under The Insur- application a statement Htateniout. ^f ^\^^, Hnaucial condition of the corporation. This statement must be in the form reijuired hy the Ke«,astry Otlicer. The statement may be up to the usual balancing day of the (corporation, if such balancing day is not more than twelve months before the liling of the statement. If the balanc- ing day is more than twelve months before the tiling of the statement, the statement nuist be of the condition and affairs of the corpora- tion on the 81st day of December, then next pre- ceding. The statement must be signed by the president and secretary or proper officers of the corporation. If the statement is signed by officers other than the president and secre- tary, the corporation must show that the ofHcers signing the statement are the proper ofiicers to sign such statement. The statement must further be verilied by the oaths of the ofiicers sign- ins it. False or erroneous The statement must on its face show the statement, society to be solvent. A solvent society means a society respecting which it has been made to appear to the Registry officer that the society has no present liabilities apart from actuarial liabilities, or has immediately realizable assets adequate to dis- charge its present actual liabilities: section 2 (16) supra. The Registry Officer determines whether the society is solvent according to the statement produced. If insolvent, the society is not admitted to registry: cf. section 81 (1) iufra. If the state- 'Jition for t}lt(MMOnfc on. This 1 by the up to the , if such mouths 3 baliinc- efore the silt must corpora- next pre- d by the Rcers of igned by i secre- e officers ficers to t further rs sign- PioccediiKjH to uhtain' lleijistiij. 171 meut be afterwards discovered to be erroneous b«°woii or fraudulent, the registry of the corporation may l)e suspended or canceHed by the l(e,*,istry Otlicer: section 25 (1) infra. An appeal may be had from the decision of the Registry Otlicer that the cor- poration is or is not entitli'd to registry, or upon any suspension, revivor, or cancellation of registry by him : section 51 (1) iufni. A duplicate of the statement, verified as above, must also, in the case of foreign friendly societies, be tiled at Toronto in the office of the Clerk of the Process: section 15, infra. The anion; it payable by a friendly society inider|J^'^J^'\\y^v//^^^ its contract, if in dispute, is prima facie the max- aut!"'*'"'* imum amount stated or indicated in the contract, and the onus is on the society to prove the con- trary : section 41 (1) infra. The claimant can, by inspection of the statements filed in the office of the Registrar of Friendly Societies approximately test any allegation of the society that the funds of the society were not sufficient to pay the maxi- mum. The society will not be allowed to impeach the truth of the statement npon which it was admitted to registry. To hold otherwise would be to allow the society to profit by its own fraud. For direct inspection of the society's books by the claimant, see infra ^ section 46. Before renewal of the certificate of registration : Annual section, 20, the society is required annually before ' ' J i- .! rtnev/al of before the 1st day of March to file in the office of "^"sistry. the Regietrar a copy of the summary statement of the result of the audit, signed and certified by the I t I 172 Inturance Corporations Act. \\°aT '"^^^^^i^o^'^) section 29 (1) infra ; and it is further the duty of the presiding officer, the secretary and treasurer of every registered friendly society within sections 8 and 10 of this Act, to prepare annually on the 1st day of January or within two months thereafter, in such form as may be required by the Registrar, a statement of the financial con- dition and affairs of the society for the purposes of the Act, and having signed and verified it under oath, t.j file the said statement in the office of the Eegistiar on or before the 1st day of March then next ensuing: section 47 (1) infra. ti Power of attorney to s JK i-eceive service of c process must ac- I company c applica- tions in Li certain w cases. C ' u.< z- •2Z \- o m~, .^I OQ aa II. (1) Where any corporation applying for registry has its head office elsewhere than in Ontario, its application for registry shall be accompanied by a power of attorney from the corpora- tion to au agent resident in Ontario; the power of attorney shall be under the seal of the corporation, and be signed by the presi- dent and secretary or other proper officers thereof in the presence of a witness, who shall make oath or affirmation as to the due execution thereof; and the official positions in the corporation held by the officers signing such power of attorney shall be sworn to or affirmed by some person cognizant of the facts necessary in that behalf. See Appendix B. for form of Power of Attorney. Compare R. S. 0. 1887, c. 167, s. 58 (1), as to insurance companies not incorporated by Provin- cial authority; and R. S. C. c. 124, s. 12 (6), as to filing in the Department of Finance a power of attorney to an agent in Canada. The head office of a corporation means the place where the chief executive officers of the cor- poration transact its business : section 2 (20) supra. Proceedings to obtain Megistry. 17a rther the ;aiy and iy within annuall}^ months lired by 5ial con- purposes it under e of the rcli then try has its 3r registry le corpora- rney shall the presi- e presence o the due jrporation shall be the facts torney. as to Provin- ), as to )wer of The power of attorney must be from the cor- j^^jwj poration to an agent resident in Ontario Tliispo^.eroj agent is therefore the chief agent of the corporation bmrSu- in Ontario. The power of attorney must be under witnessed, the seal of the corporation ; must be signed by the president and secretary or other proper officers of the corporation in the presence of a witness. The witness must make oath or affirmation of the due execution of the nower. The official positions held in the corporation by the officers executing the power shall be sworn to, or affirmed, by some person cognizant of the facts. If the chief agent be changed a similar power of attorney from the corporation to its new agent must be filed : section 16, infra. "The general agents of a foreign company doing business in this country must, I think, for the purpose of receiving premiums, be regarded in the same light as the company themselves, and we must, I think, hold that the payment made to such agents is the same as if made at the head office abroad, and that the knowledge and information brought home to the general agents at the head office in this country must be regarded in the same light as if it was possessed by and brought home to the head office in the foreign country": per Gwynne, J., in Campbell v. The National Life Insurance Co., 24 U. C. C. P. at 144. Powers of ageuts of Foreigu corpora- tions. r1 US the le cor- supra. (2) The power of attorney shall declare at what plo,ce in the conteuts of Province the chief agency of the corporation is or is to be estab- Lttoruey. lished, and shall expressly authorize such attorney to receive service of process in all actions and proceedings against the cor- 174 Insurance Corporations Act, Section poration in the Province for any liabilities incurred by the cor- 1-. poration therein, and also to receive from the Eegistry Officer all notices which the law requires to be given, or which it is thought advisable to give, and shall declare that service of pro- cess for or in respect of such liabilities, and receipt of such notices at such office or chief agency, or personally, on or by such attorney at the place where such chief agency is established, shall be legal and binding on the corporation to all intents and purposes whatsoever. Contents of power of Attorney. IM C C ■■' I— O £2 The power of attorney shall declare at what place m the Province the chief agency of the cor- poration is or is to be established. "Chief agency " means the principal office or place of business in Ontario of an extra-Provincial corporation under- taking insurance in Ontario : section 2 (21), snin-a. The power of attorney must expressly authorize the attorney to receive service of process in all actions and proceedings against the corporation in Ontario. The power of attorney must also ex- pressly authorize the attorney to receive notices from the Eegistry Officer. It must further be declared in the power that service of process or receipt of notice at the chief agency or personally on or by the attorney at the place where the chief agency is established shall be legal and binding on the corporation. For other modes of service, see section 17, infra. If the corporation changes its chief agent in Ontario, a similar power of attorney from the corporation to its new agent must be filed with the Eegistry Officer, section 16, infra; and a duplicate in the office of the Clerk of the Process at Toronto : section 15, infra. For the form of power of attorney, see Appendix B. »y the cor- try Officer >liich it is ice of pro- t of such on or by itabHshed, itents and it what the cor- igency" mess m under- , siqjra. ithorize 3 in all ition in Iso ex- notices iher be cess or son ally e chief Ling on |ce, see [es its borney k filed and a fess at [power Proceedings to obtain Begistr//. 175 (3) The power of attorney duly executed shall be filed by the sections Registry Officer in his office. 14 (3), 16. Filing of Fee . The fees payable to the Provincial Treasurer }iuonie°y. on filing powers of attorney will be found in section 62, infra. A duplicate of the power of attorney, duly veri- fied as in sub-section 1 of this section, must likewise be filed in the office of the Clerk of Process : section 15, infra. \^. Duplicates, duly verified as aforesaid, of the documents Duplicate mentioned in the two next preceding sections shall be filed attobeaied Toronto in the office of the Clerk of the Process ; where shall of process, also be filed thereafter, a duplicate of any power of attorney which supersedes or is intended to supersede any prior power of attorney. are of Process. In the case of a foreign friendly society there JSe"t«*^i must be filed in the office of the Clerk of the Pro- ^^iSctfk cess : (1) the statement of the financial condition and affairs of the corporation accompanying the application for initial registry: section 13, supra, ; (2) A duplicate original of the power of attorney to an agent resident in Ontario to receive service of process and notices under the Act : section 15 (1) (2), supra ; (3) A duplicate original of any power of attor- ney which supersedes or is intended to supersede any prior power of attornej^ Neither the sum- mary annual statement verified by the auditors, section 29 (1), nor the detailed annual statement, verified by the oath of the officers, section 47 (1), infra need be filed with the Clerk of the Process. .J 176 Insurance Corporations Act. Section 16. Changes in or in con tracts. t 3- o £2 c5 lO. Whenever the corporation changes its chief agent or ch^f agen° chief agency in the Province, the corporation shall file with the or agency jjggistry Officer a power of attorney as hereinbefore mentioned, containing any such change or changes in such respect, and containing a similar declaration as to service of process and notices as hereinbefore mentioned ; and every corporation shall at the time of making the summary or annual statement herein- after provided for, declare that, in its charter, act of incorpora- tion, deed of settlement, or instrument of association, and in its constitution and by-laws made thereunder, no amendment or change has been made afiecting its insurance contracts under- taken or to be undertaken ; or if such change made, specifying clearly the change, and that no change has been made in the chief agent or chief agency without in either case such amend- ment or change having bean duly notified to the Registry Officer. When either the chief agent or the chief agency of the corporation in Ontario is changed the cor- poration must duly execute a power of attorney setting forth the change of agent or agency or both; the power of attorney must also contain a similar declaration as to service of process and notices: vide section 14ii^) supra. The corpora- tion must file such new power of attorney with the Registry Oihcer; and also at Toronto in the office of the Clerk of the Process : section 15 supra ; cf . R. S. 0. 1887, c. 167, s. 83 (8),andR. S. C. c. 124, s. 14, II the corporation is a friendly society incor- porated, organized, managed and operated else- where than in Ontario, then, at the time of fil ng in the office of the Registrar the annual statement of the condition and affairs of the society required Procef dings to obtain Registry. 177 by section 47 infra ^ the corporation must declare sections that in its charter, Act of incorporation, deed of — '- ■ settlement, or instrument of association, and in its constitution and by-laws made thereunder, no amendment or change has been made affecting its insurance contracts luidertaken or to be under- taken. If, however, change has been made the declaration \Ti^\^X clearly specify the change ; and that the Eegistrar has been duly notified of the amendment or change. The declaration must also set forth that no change has been made in the chief agent or chief agency without the change having been duly notified to the Registrar. So also section 12 (1) supra, that certified copies of all amendments made from time to time to the con- stitution, laws, rules and regulations of the society and of Ontario branches thereof shall be filed with the Registrar: cf. R. S. C. c. 181 (The Trade Union Act), section 17. Nothing in this Act requires corporations other than those filing an annual statement pursuant to section 47 to make such declaration. But section 12 (1) supra, applies to all friendly societies regis- tered under the Act whether incorporated in the Province or incorporated elsewhere. U i 3 IT. (1) After the power of attorney is filed as aforesaid, service of any process in any action or proceeding against the corporation thereafter, for Habihties incurred in the Province, may be validly served on the corporation at its chief agency ; and all proceedings may be had thereon to judgment and execution in the same manner and with the same force and effect as in the proceedings in a civil H.I.C.A. — 12 178 Insurance Corjjoraiicnis Act. iH t c C ' i CO Otboi- modes of service. flection action in the Province : Provided that nothing herein contained — 1— shall render invalid service in any other mode in which the corporation may be lawfully served. Cf. C. E. 2G9 : "Where by any statute provision is made for service of any writ of siunnions, bill, petition, or other process upon any corporation, or any society or fellowship, or any body or number of persons, whether corporate or otherwise, ever\^ writ of summons may be served in the manner so provided." Other modes of service are permitted under C. R. 267 : " A writ of summons against a corporation aggregate, and, in the absence of its appearance by solicitor, all papers and proceedings in the action before final judgment may be served . . . on the cashier, treasurer or secretary, clerk or agent of such corporation, or of any branch or a^i'ency thereof in Ontario; and every person who, within Ontario, transacts or carries on any of the business of, or any business for, any corporation whose chief place of business is without the limits of Ontario, shall, for the purpose of being served with a writ of summons issued against such corporation, be deemed the agent thereof." In Watson v. ^tiia Life Insurance Co., 8 P. B. 231, service on the local agent of the company at Ottawa was allowed although the chief agency in the Province was at Toronto. substitu- (2) If the power of attorney becomes invalid or ineffectual soivfceof from any reason, or if other service cannot be effected, the process. Court or a Judge may ordf' substitutional service of any process or proceeding to be made by such publication as is deemed Proceed hi f/s to obtain Hecjistnj. 179 n contained which the provision 01) s, bill, L'ation, or .' number ise, every anner so under C. rporation )pearance s in the 3d . . . : or agent a^i'ency 0, within business lose chief Ontario, 1 a ^Yrit ition, be V. ^tna on the allowed e was at ineffectual 'ected, the ny process is deemed requisite to be made in the premises, for at least one month in Section 17 (2) f3) at least one newspaper ; and such publication shall be held to -^'-_ . __ be due service upon the corporation of such process or pro- ceeding. Compare C.R. 258; Holmestedct Langton, 288. (3) Where, at the passing of this Act, a friendly society J^^^j^^^^'^'^^j^ having its head office elsewhere than in Ontario has in the charge, '" Ontario, possession, custody or power of officers or agents resident in Ontario a reserve fund or funds for the security or assistance of members of the society, such fund or funds shall be deemed to be a fund held in trust for members in the jurisdiction of the said officers or agents, and the said officers or agents shall be deemed and shall continue to be trustees of the said fund or funds until other trustees thereof resident in Ontario are appointed by com- petent authority ; and such trust fund or funds or as much thereof as from time to time remains unexpended shall be in- vested as enacted m section 29 of this Act. As a consequence '^* the trust impressed upon the Twst fuud fund by this section, the officers in whose custody the fund is, must not allow the fund to pass into the hands of others, although officers, to the preju- dice of the members in whose favour the trust is created. Again, the fund must not be diverted from the purposes for which it w^as originally collected, if collected for the security or assistance of mem- bers, but must be distributed among those entitled strictly according to the constitution of the fund : Lewin on Trusts, 8th edition, 344. The members are entitled to an account. The officers continue to be trustees until other trustees of the fund resident in Ontario are appointed b}^ competent authority. The society itself under its constitution may so appoint, but in the event of failure from any reason to appoint new trustees, the court will. a? fl t 51' «+-■ I 180 Insurance Corjyorations Act. j5?°*^JJJj) upon application, appoint. In cases within R.S.O. : 1887, c. 110, s. 3, the trustees themselves, or the surviving trustee, or the executors or administrators of the last trustee may name other persons to be trustees. If in other respects the investment is- reasonable and proper, the fund may be invested in any of the modes provided in section 29, infra. The Entries on the Registers. ^ !«-» g c C ■■■' a: o Kecoiiiiug IS. (1) On the Insiu'ance License Re facto as a suspension or cancellation of registry under this Act, without notice from the Registry Officer ; but registry so suspended may be revived as provided in section G of this Act. So also section 49 (1) infra ^ that '' The happen- ing of any of the following events shall ipso facto and without notice from the Registry Olticer cancel the registry of the corporation concerned : *' (c) The cancellation, or the expiry without renewal of the license or other document of authority by w^hich the corporation was authorized to exercise its corporate powers in the transaction of insurance." If the authorization is revived under The Insur- ance Act of Canada the Registry Officer may grant a revivor of registry and issue his certificate of the same : section 6 (S) j^i'ovtso, siq)ra. ■m lie new al of Ueijistnj. 185 90. In the case of all corporations other than those in the next preceding' section mentioned, any certificate of registry issued ander this Act not heinj,' an interim or an extended certificate, shall, unless sooner suspended or cancelled, remain valid until the then next ensuing,' thirtieth day of June inclusive, when, if the corporation has tiled the summary statement required by section '20, or tie annual statement prescribed in section 47 as the case may be, and also properly certified copies of all amendments to its constitution, laws, rules and regulations made since the next preceding summary or annual statement, and has otherwise complied with the law, the corporation shall be entitled to a certificate of renewed registry, and so on every succeeding thirtieth day of June thereafter. The rt^gistry of insurance licensees of the Domi- nion endures for the term of the Hcense, with tliivty days of grace if the hcense lias heen immediately renewed, and registry is annually renewed by presentation of the subsisting license to the Kegi.-- try Officer within the said thirty days : section 19 (1) supra. The annual license issued to licensees of the Province expires on the 30th day of June in each year : E. S. 0. 1887, c. 167, s. 57. liegistry of insurance licensees of the Province under this Act is as of course, (section 5 supra), so also the renewal of registry follows as of course the annual renewal of the license. Corporations registered on the Friendly Society Eegister are, on complying with all the provisions of this Act, entitled to a certifi- cate of renewed registry. Sections 20-21. Duration of ri'ulHtry ill III! (itlu>»- cor- poratioiis, Kpupwal of iCKif'try. 21. Upon proof that a corporation has by accident or un- intoiiui. avoidable cause been prevented from fully complying with*^ the provisions of this Act within the time herein prescribed, and upon payment of the fee hereinafter enacted, the Registry 186 Insurance Corporations Act. ti ^ e ' O Section 21. Extension of certifi- cate. Officer may, by writing under his hand and the seal of his office, grant for a time hmited therein an interim certificate of regis- try, or may by such writing extend for a Hmited time the duration of a subsisting certificate of registry ; but in default in either case of renewal of registry before the expiry of the time so limited, the corporation shall be deemed to be unregis- tered. So also as to the time within which applica- tions for registry must be made. "On sufficient cause showui and upon payment of the fee herein- after prescribed, the Kegistry Officer may, by writing under his hand and the seal of his office, extend the time for delivery of an application, or for the prosecution or completion of an applica- tion already delivered or tendered:" section 12 (2) s'lpra. "Upon proof" means upon proof to the satis- faction of t>he Registry Officer, section 2 (23) supra. For the fees payable on an interim certifica^te see the tariff in section 62 infra. The interim certificate may itself be extended in the same manner, but in default of renewal of registry or of extension of a subsisting certificate the corporation becomes an unregistered corpora- tion: cf. section 2 (6) supra. Not Permitted to male Dejwsit. 187 if his office, te of regis- l timo the i in default piry of the be unregis- applica- lufficient 3 herein - nay, by is office, ation, or applica- 3tion 12 Lie satis- ]) siq^ra. 3ate see xtended le^yal of tiiicate orpora- Section 22 (1). Friendly Societies not Permitted to make Deposit. 22. (1) No friendly society within this Act shall be re- quired or permitted to make any deposit whatsoever of cash or securities with the Insurance Department or other Department of the Province of Ontario ; nor shall the Registrar, in any initial or renewal certificate of registration, or other publication, vouch for the financial basis, or for the actual or actuarial solvency or standing of any society ; nor shall the printing of a society's annual statement in the Registrar's Report, operate, or be any- wise construed as a warranty of such basis or of such solvency or standing ; but a friendly society may include in its annual statement to the Registrar a valuation, made by a competent actuary and verified by his oath of any or all of the contingent liabilities of the society ; and the Registrar may in his Annual Report publish an abstract of such valuation as part of the society's statement. "Actuarial solvency" means solvency of an insurance corporation when its actuarial liabilities are charged or treated as present liabilities: while "solvent," as applied to a friendly society, means a society respecting which it has been made to appear to the Registry Officer that the society has no present liabilities, apart from actuarial liabilities, or has immediately realizable assets adequate to discharge its present actual liabilities : section 2 (16) supra. In the case of companies licensed to transact insurance (except- ing compaaies authorized under sections 38 and 39 of The Insurance Act of Canada) the actuarial solvency of the company is a condition precedent to license. Friendly societies are not inspected, No deposit required or permittdil in tlio case of friendly societies. Uegistrai-'s Uoport uo warranty of basis or condition. I i 188 Insurance Corporations Act. Section 22(1). IH c C ' \- O are not required to maintain are-insurance reserve, and are not permitted or required to mako deposit for the security of certificate holders. Therefore the Insurance Departmeiit assumes no responsibility for the solvency, either actual or actuarial, of a society which is admitted to registry ; nor does the certificate of registry or the publication of the annual statement of a society imply that the finan- cial basis of the society's scheme of insurance is sound: cf. State to use of Davis v. Thomas, 19 Ins. Law Journal, 461. The sworn statement, however, of the financial condition and affairs of the societ}^ accompanying the society's application for initial registry must show the society to be solvent, section 13, supra; and failure on the part of a society to pay an undisputed claim for the space of sixty days after being legally payable, or, if disputed, after final judgment and tender of a legal valid discharge, renders the society liable to have its registry suspended : section 44 (1) infra. The effect of such suspension is to render it unlawful for the society further to undertake insur- ance contracts in Ontario. Proviso. (2) The registration of a friendly society under this Act or under any amending Act shall not be deemed to authorize the society to undertake contracts of insurance elsewhere than in the Province of Ontario. The fact of registry does not enlarge the capa- city of a registered corporation to transact business elsewhere than in Ontario. But the corporation, although incorporated by virtue of an f Not Permitted to Male Deposit. 18^J 22 (3), 23. Act of the Provincial Legislature, may enter into fg^^S^M contracts outside the Province wherever such con- tracts are recognized by comity or otherwise: Clarke v. Union Fire Ins. Co., 10 P. E. 818; 6 O. K. 223. ve msur- (S) No Friendly Society shall under penalty of becoming dis- Misrepie- entitled to registry, cn'culate, publish, or print any statement of tegistry. contrary to the intent of this section ; and any officer, employee or agent of the society who makes use of such contrary statement for the purpose of obtaining, or transacting insurance, shall be guilty of an offence, and shall, upon summary convic*^^ion thereof before any police magistrate or justice of the peace having juris- diction where the offence was committed, be liable as for an offence against section 27 of tin's Act, and all the provisions of the said 27th section shall equally apply in the case of an offence committed against this section. The penalty enacted in section 27 is a line not exceeding $200 and costs, and not less than $20 and costs, and in default of payment imprisonment with or without hard labour for a term not exceed- ing three months and not less than one month. On a second or any subsequent conviction the offender shall be imprisoned with hard labour for a term not exceeding twelve months and not less than three months: cf. R. S. C. c. 124, s. 8^> (0). !93» No corporation shall be registered under a name identi- similarity cal with that under which any other existing corporation is new name, registered, or so nearly resembling such name as to be likely, nor shall be registered under any other name likely, in the opinion of the Registry Officer to deceive the members or the public as to its identity; and no registered corporation shall be registered under a new or a different name except upon proof that such new or different name is authorized by law. 'J ft ir v. 190 Insurance Corporations Act. Section 23. 3- CO Cf. Imperial Act, 38 & 39 Vic. c. 60, s. 11 (3); -E. S. C. c. 131, Trade Union Act, s. 14 (3); E. S. 0. 1887, c. 162, Ontario Insurance Act, s. 18; E. S. 0. 1887, c. 157, Letters Patent Act, ss. 6, 10; E. S. C. c. 119, Companies Act, ss. 4, 6; 51 Vic. c. 20 (Out.), Benevolent Societies. See Hendriks v. Montagu, L. E. 17 Ch. D. 839 ; The Colonial Life Ass. Co. V. The Home and Colonial Ass. Co., 33 Beav. 548 ; The London Ass. Co. v. The London and West- minister Ins. Corporation, 9 Jur. N. S. 843 ; The London and Provincial Law Ass. Society v. The London and Provincial Joint Stock Life Ass. Co., 17 L. J. Ch. 37 N. S. Where two parties claim each to represent the same society, and each applies for registry hi the name of the same society the Eegistrar may refuse to register the society under either application until the decision of a competent court determinei^ the legal status of the applicants : The Queen v. The Eegistrar of Friendly Societies, L. E. 7 Q. B. 741. It seems to he in the discre- tion of the Eegistrar whether the name of an applicant corporation is likely to deceive the mem- bers or the public. But if registry is denied, the corporation has an appeal from the decision: section 51 (1), infra. The name under which the corporation is to be registered must be the corporate name and on a change in the appli- cation in order to avoid an objection taken under this section, it must appear that the new name is authorized: cf. Morawetz on Private Corporations, § 353. Change of Name. 191 Section 24 (1). Change of Name. le mem- 24* (1) Where an insurance corporation within the legisla- tive authority of this Province is desirous of adopting a name dif ferent from that by which it was incorporated, or where in the opinion of the Registry Officer tlie name by which the corpora- tion was incorporated may be easily confounded with that of any other existing corporation, the Lieutenant-Governor in Council, upon the recommendation of the Registry Officer, may change the name of the corporation to some other name to be set forth in the Order in Council ; but no such change of name shall affect the rights or obligations of the corporation; and all proceedings which might have been continued or commenced by or against the corporation by its former name may be con- tinued or commenced by or against the corporation by .*ts naw name. The identity of the corporation is not affected hy a change of name: Morawetz, § 354; nor can creditors object to a merely nominal alteration of their rights even though in form the transaction amounts to a novation by the substitution of a new debtor: Ibid. § 810. Where the statute relating to the organization of fraternal benefit corporations, prohibited the adopting of a name previous^ in use, or so similar as to be liable to be mistaken for it, (cf. 51 Yic. c. 26, s. 1, as to proposed name of benevo- lent society), and authorized the insurance com- missioner to issue a certificate "if it appears that the purposes and proceedings of the corporation conform to law" and made the certificate of the secretary of the commonwealth " conclusive evidence of such corporation," Held a bill cannot be C'haiit,'e (if OOl'llOllltO uaiiio. ^ ,1 192 Insurance Corporations Act. i c ' x: o CO ll'of'^ maintained by one corporation to restrain another corporation from using a name similar to plaintiff, as the certificate of the commissioner and secre- tary are conclusive as to the right to use the name. Under such an Act the insurance commis- sioner can not be enjoined from issuing a certificate on the ground that the name of the new corporation is so similar as to be liable to be mictaken for that of a corporation already existing, as he is the person to pass upon that question. A corporation organized under suchan Act cannot prevent the use of the name by a corporation subsequently organized under the same Act on the ground that it is a trade name, after the matter has been adjudicated by the insu- rance commissioner: American Order of Scottish Clans V. Merrill et al., (Mass. S. J. C.) 24 North Eastern Kaporter (Aug. 1, 1890), p. 918. Where words (e.g., employer's liability) desig- nate a kind of insurance business, such words do not express proprietorship and another corporation will not be restrained from using them as part of the corporate name ; nor will such corporation be restrained on the ground that confusion would result as to the identity of two corporations, in that it was the custom to refer to insurance companies by abbreviated titles, since the defendant corporation would be permitted to do business only in its cor- porate name, which is distinguishable from that of plaintif! corporation: Employers' Liability Assur- ance Corporation v. Employers' Liability Insurance Co., 10 N. Y. Suppl. (1890) 845. 198 another plaintiff, i secre- use the 3oiniiiis- irtiiicute poration r that of erson to :ganized he name ider the e name^ he insii- Scottish 4 North ) design ords do Doration part of ition be d result that it lies by )oration its r-or- that of Assur- urance Sections 24(2H3), 25 (1). Public notice. tlev. Stat, c. 1G7, 8. 20 roiiealed ; ss. 22 and 2:JaniGn(lert c. 172, fl, 19 (1) ametul- (h1. liet'ocatiofi of P3gistrfj. (2) Of any such change of name, or application for change of name, such public notice shall be given in the (hitdiio (razette anrl otherwise as the Registry Officer shall direct. (3) Section 20 of The Ontario Imurance Act is hereby repealed; and sections 22 and 23 of the said Act are amended by striking therefrom the words " of name or " wherever they occur ; also sub-section 1 of section 19 of The Act renjiectin;/ Benevolent, Provident ((ml other Societies is amended by inserting after " society," in the first line thereof, the words "not being an insurance corporation within the meaning of the Insurance C >r- jiorations Act, 1S02/' Sub-section (1) of this section replaces the shnilar provision contained in section 20 of Tlit^ Ontario Insurance Act; and in the case of societies which are incorporated under The Benevolent Societies Act but are within the scope of this Act, the power to change the name or the declared purposes of the society is withdrawn from the county judge or stipendiary magistrate. Ee VOCATION OF EeGISTBY. 12»>. (I) Upon proof that any registry or certificate of regis- suspen- try has been obtained by fraud or mistake, or that a corporation cauceiia- exists for ^n illegal purpose, or has, in terms of section 44, made registry, default of payment, or has wilfully, and after notice from the / Registry Officer, contravened any of the provisions of this Act, or '^^^ has ceased to exist, the registry of the corporation may be suspended or cancelled by the Registry Officer; but such sus- pension or cancellation shall be appealable as hereinafter pro- vided. Cf. 88 & 89 Vic. c. 60 (Imp.), s. 12 (1). On suspension or cancellation of its registry the corporation becomes an unregistered corpora- tion and may not further undertake or offer to undertake contracts of insurance in Ontario, but II.I.U.A. — 13 6n, 194 Inimraiice Corporatiois Act. *-f c u ** 1 C ' ■■<,. Notice of suspension or cancell- ation of registry to en corpora- tion. 2¥aH% ^1^^ treasurer or other officer having control of the msurance fund is ipso facto hy t\\Q suspension or cancellation made interim receiver and the business of the corporation is at an end: section 53 (1), infra. The decision of the Registry Officer is 1 rd<^ ..1 in writing, section 50 (1) infra; and a Ccj- :- •' such decision under the seal of his office is b. .b o'^ delivered to the head office or chief agency of the corporation in the Province: Ihid. A like provision for notice of suspension or can- cellation of registry is contained in the sub-section following. Appeals are governed by section 51 {vide infra). For the events, the happening of which cancel or suspend registry ipso facto, see section 4'; (1) and (2), infra, and also sections 5 (2) and (3) supra. (2) On the suspension or cancellation of the registry of any corporation ^ except as herein otherwise enacted, the Registry Officer shall, by registered post or otherwise, cause notice thereof in writing under liis hand to be delivered to the head office or chief agency of the corporation ni Ontario ; and from the date of such delivery the corporation shall be deemed to be unregistered, but, in the case of suspension of registry, only whilst such suspension lasts ; and from and after such delivery the corporation shall withdraw every offer to undertake con- tracts, and shall absolutely cease to undertake contracts, but without prejudice to any liability actually incurred by such corporation which may be enforced against the same as if such suspension or cancellation had not taken place. Cf. 38 & 39 Vic, c. 60 (Imp.) s. 12 (5) ; Ontario Insurance Act, ss. (31, 142. Where registry is suspended or cancelled, ijjso facto, by the happening of one of certain events, Eifect of notice delivered. Official Notices and Certificates. 105 I of the sion or )usiness 53 (1), fficer is ; and a is office or chief e: Ihid. or can- )-section ction 51 ening of icto, see .ons 5 (2) stry of any e Registry ,se .notice the head and from Imed to be stry, only ih deUvery Irtake eon- ,raets, but d by such as if such Ontario |lecl, ijjso events, >speci.Hed in sections 5 (2), (8), 49 (1) and (2), no^J^^^f notice is required to be delivered to the corporation — affected. Delivery of notice may be by registered post or othorwise: section 50, infra. On suspension or cancellation of registry the corporation must cease to undertake contracts, and further nnist withdraw all offers to undertake contracts. Any setting up of a sign or inscription containing tb^ name of the <'orporation, or any distribution or ou ication of any proposal, circular, card, advert" <^ni ..t, printed form, or like document in the naix.. o' the corpora- tion, or any written or oral solicitaiion in the corporation's behalf, and any coll :"ng or taking of premiums of insurance, amounts to offering to undertake contracts : section 2 (4), supra. The penal clause (section 27, infra) applies to any undertaking of contracts or offering to undertake contracts on behalf of a corporation whose registry is suspended or cancelled. Official Notices and Certificates. as 3(1) 20. (1) The Registry Officer shall cause to be published in the Ontario Gazette, in February and July of each year, respectively, a list of the corporations which stand registered at the date of the hst ; also, if, in the interval between two such lists of registered corporations, a new corporation is registered, or the registry of any corporation is suspended or cancelled, or if a suspended registry is revived, he shall cause notice thereof to be published in the Ontario Gazette. Compare R. S. 0. 1887, c. 167 [Ontario Insur- ance Act), s. 62; R. S. C. c. 124 {The Insurance Act), s. 18. For the effect of the list or a notice in the Ontario Gazette, see the next sub-section. Evidence of registry ; semi-au. nual list to be pub- lished. hH) Insurance Corporations Act. H (imettc. as ovidciicc Section (2) A list or notice publisliecl in the OnUttio G(mtte ovtr tlit> 26 (2)-{4) ; ^ name of the Re,<3[istry Officer shall, without further proof, b& FAXiict of received in any court and before all justices of the peace and notico ill *' •' '■ , others as jtn'iiia fdcie evidence of the facts set forth ni such published list or notice. The list oi" notice in the Gazette is made piiiint facie evidence of the facts set forth in tlie hst or notice. As the list pnrports to l)e a list of the corporations which stand registered at the date of the list (sul)-section (1) of this section suj)ra), the prodnction of the Gazette containing the list to the magistrate hefore whom a complaint under section 27 is tried, will in tHe absence of rebutting evidence be conclusive that the corporation in question was or was not registered on the day named. The entire Gazette must be produced; a cutting from it will not suffice: R. v. Lowe, 15 Cox 280. C ' UJ a: Zj mm > an oiiiciai (^) ^^^ copies of returns, reports or other official publications {'>^^j'j|°^" ,^g of the Registry Officer purporting to be pJnted by the Printer evidenc3. ^q the Crown, or the Printer to the Legislative Assembly, or to be printed by order of the Legislative Assembly, shall, without further proof, be admitted as evidence of such publication and printing and as true copies of the original documents so printed and pubHshed. ^ Compare 30 & 87 Vic. c. 00 (Imp.), s. 3; 19 cV: 20 Vic. c. 79 (Imp.), s. 174; also, R. S. 0. 1887, (i.ijl {The Evidence Act), s. 22; R. S. 0. 1887, c. 1 (Interpretation Act), s. 8 (37). Registry Officer's seal or siRuature. (4) The seal or signature of the Registry Officer shall be admissible in evidence without proof of its authenticity ; or of the ofiticial character of the person signin< ig- Compare 19 & 20 Vic. c. 79 (Imp.), s. 174; 38 & 39 Vic. c. 00 (Imp.), s. 39. Ofticidl X(>tices (Did Certificdtes. 107 ^ ">) A certificate under the hniul of the Kepfistry Officer and the seal of his ofiice, that on a stated day the corporation or person mentioned therein stood ref,'istered or did not stand registered within the meaning of this Act, or that the registry of any corporation or person was originally granted, or was renewed, or was suspended, or was revived, or was revoked, or was cancelled on a stated day, shall i)e jninui I'tu-if evidence in uny court or elsewhere of the facts alleged in the certificate. In the case of u corporation the certilicute will state that on the day named in the certificate the corporation stood or did not stand re^^istered on the Insurance License lief^ister or on the Friendly Society Register, as the case may be. Regarding a person, the certificate will state that on the day naijied the person was or was not registered on the Insurance Agents' Register; or was or was not the registered attorney of a foreign corporation. The seal or signature of the Registry Oflicer is admissible in evidence without proof of its authen- ticity or of the official character of the person signing: sub-section 4 of this section, ^upra. Section sa(fi)-(6i. Covtiflcato as to fnctH. (G) Every certificate of registry granted under this Act shall Com- specify the first day and also the last day, of the term for which mDntaud : "^ "^ . ond of cer- the corporation or person is registered ; and the corporation or tiflcato. person so registered shall be deemed to be registered from the commencement of the first day to the end of the last day so . specified. The registry endures from the commencement of the first day specified in the certificate to the end of the last day as specified. On the expiration of the term of registry without renewal the cor- poration or person is deemed to be unregistered : section2 (6) 81 (jjr a. In addition to the term for 198 Insurance Corporations Act. t 3- CO a6*8M°o ^^^^i^'^^ re^'istry is «,'raute(l the certificate of re^^istry states, in tlie case of a corporation, the purposes for which it is registered: section 18(2) supra. Thus- in the case of a licensed company the certificate wouhl express that the company is registered for the transaction of general life insurance husiness, and so on, according to the husiness for which the company was licensed: in the case of a friendly society, the certificate would express that the society is registered for undertaking the following class or classes of contracts (enumerating them), Copies or (7) Copies of 01' extracts from any book, record, instrument from office or document in the office of the Registry Officer certified by him to be true copies or extracts and sealed with the seal of hi* office, shall be prima facie evidence of the same legal effect a» the original in any court or elsewhere. Compare 38 & 39 Vic. c. 60 (Imp.), s. 39;- see also R. S. 0. 1887, c. 61 {The Evidence Act), ss. 23, 24. To the same effect is The Ontario Insurance Act: " A copy of any document in the office of the Inspector, certified by him to be a true copy and sealed with the seal of his office, shall be held to be authentic, and shall be prima facie evidence of the same legal effect as the original in any court or elsewhere": R. S. 0. 1887, c. 167, s. 150. The fees payable for copies of documents on file in the office of the Registry Officer are :^-For office copy of decision of Registry Officer, $1.00; for certified copy of entry on register, 50e; for copies of or extracts from documents filed with the Registry Officer, per folio of 100 words, 10c: section 62 Division IV. infra. Fees on copies or extraets. Una H than' zed Insurance^ Pofalfies. i\i\) ice lor- >ro- In u Maryland case, Motn)))()litnn Life Ins. Co. ^!°"°°" •' ' I 26i7i-i8>, V. DtMupsey, '2() Ins. L. .1. o47, a book found in "'i!i. the Insurance (.'onnnission(>r's cilice containing- aJiYiuon doc'innent which purported to l)e a copy of therxtnil! charter and by-laws of a company was held sulHcienti;'ji"i'ftiiy- evidence, under the law of Maryland, that the company was a body corporate ; it appearin*^- that it was carrying on business in Baltimore under the corporate name; that it received applications and issued policies according to established forms ; that it had a home office in New York city and an agency in Baltimore; that it hud a president, secretary, and other officials, and that its policies contained stipulations in reference to suits to be brought against it. (8) For purposes of this section Rfgistry Officer shall include interpre- the Deputy or As-sistant Registry Otfieer. Compare 38 & 89 Vic. c. GO (Imp.) s. 39; 39 & 40 Vic. c. 45 (Imp.), s. 24; R. S. 0. 1887, c. 167 (Ontario Insurance Act), 140 (1); and, also, R. S. O. 1887, c. 1 {The Interpretation Act), s. 8 (22). Unauthorized Insurance, Pen.\xties. i .1 fl *i% . (1) After the 81st day of December, 1892, no person or persons, or body corporate or unincorporated, other than a corporation standing registered under this Act and persons duly authorized by such registered corporation f,o act in it^^ behalf, shall undertake or effect, or offer to undertake or effect, any contract of insurance. To the like effect is section 3, supra: — "After the 31st day of December, 1892, no insurance Xo unreg- istered c^rpora- )U to dertake urance. 200 iM c ' 0-1 Dr. H- o CO Section 27 ll). What cor- poration includes. Insurance Corporations Act. other than as enacLecl by and for the purposes of The Land Titles Act shall be transacted or under- taken in Ontario except by a corporation duly registered as herein provided." Only corporations may register; individual underwriters or unincorporated associations have no status under the Act to transact insurance. "Corporation," however, includes, (a) every licensee licensed under or by virtue of The Insur- ance Act of Canada, section {2) sujjra, and (b) societies duly registered under The Friendlij So- cieties Act, 1875, or any i^ct consolidated thereby, or any amending Act thereto, passed by the Par- liament of the United Kingdom: section 10 (1) proviso, siipra. Only corporations standing regis- tered on the Provincial register may undertake or offer to undertake any contract of insurance. " Contract " of insurance has the extended meaning of any contract within sub-section 12 of section 2, supra. Only persons duly authorized b}^ such registered corporations to act in its behalf may undertake or effect contracts of insurance. Thus in transacting life insurance by licensed companies a double authorization is needed: — The corporation must be registered for the purpose of undertaking contracts of life insurance: cf. section 3, supra; and the agent taking the application must be authorized by registration on the Insurance Agents' Register: section 39 (12) infra. offeiiufi to "In the case of any insurance corporation uuderiake t. j. contracts, whatsocver, any settmg up of a sign or inscription containing the name of the corporation, or any dis- tribution or publication of any proposal, circular, Transac- tion of insurance. Unauthorized Insurance, Penalties. 201 card, advertisement, printed form or like document 2i^^^m in the name of the corporation, or any written or oral solicitation in the corporation's behalf, or any collecting or taking of insurance or premiums of insurance shall be deemed 'offering to undertake contracts' within the intent of this x\ct:" section 2 (4) supra. (2) If any promoter, organizer, office-bearer, manager, direc- tor, officer, collector, agent, employee, or person whatsoever other than as enacted in the next preceding sub-section, under- takes or effects, or agrees or offers to undertake or effect any con- tract of insurance, he shall be guilty of an offence, andPenaUy. upon summary conviction thereof before any police magistrate or justice of the peace having jurisdiction where the offence was committed, shall be liable to a penalty not exceeding !5>20O and costs, and not less than $20 and costs, and in default of payment the offender shall be imprisoned with or without hard labour for a term not exceeding three months and not less than one month ; and on a second or any subsequent conviction he shall be imprisoned with, hard labour for a term not exceeding twelve months and not less than three months. Compare K. S. C. c. 124, The Insurance Act, s. 22 (1); E. S. 0. 18S7, c. 107, The Ontario Insu- rance Act, section ^6 repealed by sub-section 7 of this section; also, section 60 of this Act, infra. Any person whatsoever who undertakes or offers to undertake any contract of insurance, except he be duly authorized by some registered corporation to act in its behalf, is guilty of an Member- offence. The burden of provir.g that the corpora- pmuium"! tion in whose behalf he is soliciting is registered is upon the person charged: sub-section 5 of this section. *' Offering to undertake any contract of 202 Insurance Corporations Act. section insurance" has the extended meaning given to the phrase by section 2 (4) supra, and inchides the collecting or taking of any premium. The joining- or membership fee of The International Fraternal Alliance was held to be a premium: Reg. v. Stapleton,H.C.J.,C.P.D.10threb.,1892. "Con- tract of insurance" means and includes any contract within the intent of sub-section 12 of section 2, supra. Kemissiou of penalty. IM O CO en It is within the jurisdiction of the Province to- impose punishment by line, penalty or imprison- ment for enforcing any law of the Province made in relation to any matter coming within any of the classes of subjects over which the Province has exclusive jurisdiction: The British North Americaii Act, 1867, s. 92 (15); Hodge v. Reg. L. R. 9 App. Cas. 133. The Lieutenant-Governor in Council may remit the pecuniary penalties imposed by this section, R. S. O. 1887, c. 90, s. 3, but not the costs incurred up to the time of remitting the penalty: ibid. s. 4. A police magistrate or justice of the peace is not authorized to remit any penalty: ibid. s. 2. By 51 Vic. c. 5 (Out.) power to commute and remit sentences for offences against the laws of the Province, or offences over which the legislative authority of the Province extends, was declared, to be vested in and exercis- able by the Lieutenant-Governor or Administrator for the time being of the Province. The consti- tutionality of the Act was upheld in Attorney- General of Canada v. Attorney-General of Ontario: 20 O. R. 222 (in appeal). Unauthorized Insurance, Penalties 20a On conviction for a lirst offence, the offender is ot?o!^2x liable to a line, and in default of payment of the line to imprisonment with or without hard labour. On conviction of a second or third offence the penalty is imprisonment with hard labour, and without the alternative of a fine. Information nmst be laid within one year after the commission of the alleged offence: sub-section 6 of this section. In a Tennessee case (Morton v. Hart, 19 Ins. L. J. 347) the plaintiff had applied to the agents for insurance on a stock of goods, directing them to return his money if they could not give him a good policy. They sent a policy in a company which had not complied with the State laws, and which proved to be insolvent. The agents were held liable to the assured for the loss, inasmuch as they must be held to have guaranteed the solvency of the company to the extent of the capital required by the statute of the state and that losses would be paid. Liability oi iit,eut to assuved. (3) Any one may be prosecutor or complainant under this Api'iica- Act ; and one-half of any fine imposed by virtue of this Act shall, when received, belong to Her Majesty for the use of the Province, and the other half shall belong to the prosecutor or complainant. Compare R. S. C. c. 124 (The Insurance Act), s. 22 (2). ^ : (4) Any person convicted under this Act who gives notice of Appeal, appeal against the decision of the convicting justice shall be required before being released from custody to give to the justice fatisfactory security for the amount of the penalty, costs fo'rcosts. of convicMon, and appeal. I.-S'l ^04 Section 27(4i-(7'. Costs. c Hiirdeu o g iU'OOf. C' i t u •» v UJ 4i^^^ 3r H- o •*-« «•<*•/ CO M»«< CJQ Iiimita- tioii of lirosecu- tioiis. Insurance Corporations Ad. By r//6' Interpretation Act, K. 8. 0. 1887, c. 1, s. (8) 20, "The word 'sureties' shall inecUi suffi- cient sureties, and where these words are used, one person shall be sufficient therefor unless other- wise expressly required." In Kegina v. Wright, 14 O. E. 668, on a conviction under E. 8. 0. 1887, c. 142, ss. 40 and 46, it was held that a Justice of the Peace had no jurisdiction, on default by the defendant of payment of fine and costs, to direct his confinement for the space of one month, unless, in addition to the payment oi the fine and costs, he paid the charge of .convej^ing him to jail. (5) In any trial or cause; or proceeding under this Act the burden of proving registry, shall be upon the coi'poration or person charged. Compare E. 8. 0. 188V, c. 148, s, o3. The method of proving rei^istry is by production of a certificate of registry ni^ler the hand aiui seal of office of the Eegistry Officer: section 26 (5) supra. (0) All informations or complaints for the prosecution of offences under this Act shall be laid or made in writing within one year after the commission of the offence. Compare E. 8. C. c. 124 {The Insurance Act), s. 23; E. 8. O. 1887, c. 60, s. 1. j^ovstat. ^Y) Sections 55 and 5G of The Ontario Insurance Act are pfl-'Tr'^'> li^reby repealed; also sub-section 2 of section 3 of the said chanter is amended by striking out all the words after the word " apply " in the first line thereof and substituting the words Mlowing : "To any corporation standing registered on the t .iendly Society Register, pursuant to The Insurance Corpora- tions Act, 1892.'' ilj 4^ Unauthorized Insurance, Penalties. 2< ?5 Section 55 of The Ontario Insurance Act, W. S. ^K:'^ O. 1887, c. 107, is replaced by sub section 1 of this "~" " section {sjipra). Section 56 of The Ontario Insurance .Icf liei-oaiot l>oiialty enacted a penalty if "Any director, officer, a^"ent,;j','j;'^,';/," employee, or other person in contravention of'^''^ section 55 undertakes or eft't*cts, or a,L>i'ees or offers to undertake or effect, oi ;;olicits, any con- tract, or collects any premium m behalf of any company, without the company bein^- licensed under this Act * * " It v/as provided that the penalty might be sued for and recovered on infor- mation filed in the name of the Attorney-General of Ontario. The simpler procedure of information or complaint, and summary trial before a magis- trate or a Justice ot the Peace has been substituted in the penal section of this Act: see sub-sect:^i) 2 of this section, supra. Similar prohibition of and penalties against unauthorized insurance are contained in Tlie Insurance ict of Canada tuo lusur- anco Act ot section 22, which is as follows: — "Every per-ca^^"'^'^' son who delivers any policy of insurance, or interim receipt, or who colle«'ts any premiui.u (except only on policies of insurance issued to per- sons not resident in Canada at the time of issue), or carries on any business of insurance on behalf of any life, fire or inland marine insurance com- pany, wi'hout such license as af Tesaid, shall, on sunnnary conviction thereof, before any two Justices of the Peace, for a first offence, incur a penalty not exceeding fifty dollars and costs, and not less than twenty dollars and costs; and in default of pay- 206 'Insurance Corporations Act. C ■■' \- O CO 03 Section ly^eiit the offender shall be liable to iinprisonment with or without hard labour for a term not exceed- ing three months and not less than onp month ; and for a second or any subsequent offence such offender shall be imprisoned with hard labour for a term not exceeding six months and not less than three months; " (2) One-half of any such penalty, when re- covered, shall belong to Her Majesty, and the other half thereof to the informer." ExiBtins Existing proceedings under The Ontario Insur- S"outfectea<^^'C6' ^c^ are not affected by the repealing clause. byropeai. p^^, ^^ ^^ offeuce Committed, and no penalty or for- feiture incurred, and no proceeding pending under any Act at any time repealed, shall be affected by the repeal, except that the proceedings shall be conformable where necessary, to the repealing Act, and that where any penalty, forfeiture or punish- ment ]i.is been mitigated by any of the provisiojis of the repealing Act, such provisions shall be extended and applied to any judgment to be pro- nounced after such repeal": E. S. 0. 1887, c. 1, (Tht Interpretation Act) s. 8 (44). Sub- iection 2 of section 3 of The Ontario Insu- rance Aci now reads: — '' The provisions of this Act shall not apply — (1) To a company licensed by the Dominion of Canada, except as to sections 114 to 120 inclusive, which shall apply to all fire insurance companies transacting business in Ontario. " (2) This Act shall not apply to any friendly society within the intent of the Insurance Corpora- tions Act, 1892:' Ontario Insurance .lc^ 3.3(2) amended. BooJxS of Account and Audit. •207 Sub-section 2 before the amending clause ^vas g^^J^^JJ'^j as follows: — "This Act shall not apply to an) benevolent, provident, industrial, or co-operative society not requiring a license for any such con- > tract as aforesaid before the passing of this Act. The Books of Account and Audit. *^f^, (1) Every registered corporation except the corpora- tions mentioned in section G hereof, shall keep such a classifica- tion of its contracts, and such register and books of account as may from time to time be directed or authorized by the Registry Officer ; and if it appears at any time to the Registry Officer that such books are not kept in such business-like way as to make at any time a proper showing of the affairs and standing of the corporation, he shall thereupon nominate a competent account- ant to proceed, under his directions, to audit such books and to give such instructions as will enable the officers of the corpora- tion to keep them correctly thereafter ; the expense of the accountant shall be borne by the corporation to which he is sent, and shall not exceed i^o per day and necessary travelling expenses ; and the account for such audit and instructions shall, when approved under the hand of the Registry Officer, be .pay- able by the corporation forthwith. Compare 44 Yic. c. 20 (Ont.), s. 21 ; 43 Yic. c. 20 (Ont.), s. 1; 43 Yic. c. 25 (Ont.), s. 5, j;rt7'f. Insurance corporations receiving a license, or document of authority, under The Insurance Act of of Canada, section 6, supra, make their returns to and are under the supervision of the Dominion Department of Insurance. Such corporations are, therefore, exempted from the effect of this section. In the case of corporations which are not organized exclusively for purposes of insurance. Corixjra- tioii to kot'p such 1 looks us iiiny be directed by Kosistry onicer. ]{atitic(i- tiou of dis- ordered books. I 208 In.sH ranee Corpordtions Aet. I*— I c C ' O 28"iM2^ " Society " means only that branch or department __!®^L 01" division of the corporation which has snch con- tracts in char^^e: section 2 (4) (a) supra; and it is- provided that there shall be kept distinct and separate funds, books, accounts and vouchers, for purposes of such contracts: Ihid. It is only the books and accounts of this distinct and separate fund that are within the meaning of this section. Condition ot i)()iiks. Rev. Stat. e. 107, s. 100 ropeaieri. repealed In one American case it was held to be sufficient grounds for dissolving an association that the books containing the accounts of the receipts and expenditures were so confused and unsystematic as to make it almost impossible even by the aid of experts to derive therefrom any cer- tain information as to the affairs of the association : Chicago Mutual Life Indemnity Association v. Hunt, Attorney-General, (111. S. C, March, 1889), 20 North East!^ Rep. 55. (2) Section 100 of TIh' Ontirio Inxiinince Jet is hereby Section 100 of TJie Ontario Insurance Aet enacted a similar clause with reference to all com- panies within the intent of that Act. The present section is general and applicable to all registered insurance corporations excepting only Dominion licensees. Annual Hddit ot societies' books. 2SP. (1) It shall be the duty of the officers of every registered friendly society to have at least once in every year a bomi //Wr and business-like audit made of its books of record and account, by at least two competent auditors, who shall not be officers of the society ; and to furnisli to each member annually a summary Bool's of Account and Audit. 209 statement, showing as the result of such audit or audits, the, Section 29 (1). society's actual assets, liabilities, receipts and expenditures, and the state of the insurance fund or funds, and a copy of such summary statement, signed and certified by the auditors, shall be filed in the office of the Registrar, on or before the first day of March in each year. Compare 38 & 39 Vie. c. 60 (Imp.)> s. 14, ss. 1, (c), (cl), (h), 30 (8); 39 1 ^ Sent of lo^^'s: — "It shall be lawful for a trustee, unless trust fuudsg^pj^.gggl^. forbidden by the instrument (if any) creating the trust, to invest any trust funds in his hands in terminable debentures or debenture stock of the hereinafter mentioned societies and com- Books of Account and Audit. 21:3 uch sum- lelivtr to 3e of the summary sted up in generally, le postmg the said be made R. S. O. nch within or branch md held in ,horized by ar of Her ieipality of respects minion of deposited ed bank of in Ontario uly autho- Ontaria as fol- , unless (if any) s in his ire stock hd com- panies, provided that such investnu'ut is in other ^JJ^JJ" respects reasonable and proper, and that the debentures are registered, and are transferable only on the books of the society or company in his name as the trustee for the particular trust estate for which they are held in such debentures or debenture stock as aforesaid: "(a) Of any incorporated society or company which has been, or shall hereafter be authorized, l)y any lawful authority to lend money upon mort- gages on real estate, or for that purpose and other purposes, such society or company having a capit- alized, lixed, paid-up and permanent stock not liable to be withdrawn therefrom, amounting to at least Jii>500,000, and having a reserve fund amount- ing to not less than 25 per cent, of its paid-up capital, and its stock having a market value of not less than 2o per cent, premium, and the society or company having during each of the ten years next preceding the date of investment, paid a dividend of not less than six per centum on it.: ordinary stock ; ''(b) Or of any society or company heretofore incorporated, under chapter 104 of the Revised Statutes of Ontario, 1877, or any Act incorporated therewith, or under chapter 109 of the Revised Statutes of Ontario, 1887, having a capitalized, fixed, paid-up and permanent stock not liable to be withdrawn therefrom amounting to at least $100,000, and having a reserve fund amounting to not less than 15 per cent, of its paid-up capital, and its stock having a market value of not less 31 214 Insurance CovporationH Act. Section 29 (2). C ' U.J a: o Kev. Stat. c. 110, 8. :iO, repealed. B. 5. Companies in which fuuds invested to be approv- ed by Lieuteu- ant-Gov. ernor. Kegistered deben- tures. Deposits with building societies than 7 per cent, premium, and the society or company having during each of the ten years next preceding the date of investment paid a dividend of not less than per cent, on its ordinary stock; provided that nothing in this suh-section (h) shall in any way affect any investment, made under authority of said Act hefore the passing of this Act. ''(c) The trustees may from time to time vary any such investment. " (d) The 30th section of the Act re8pecti}i(j Trustees and Executors and the Administration of Estates is re-pealed. '* 5. Provided that no investments shall be made under authority of this Act in the deben- tures of any society or company of the class lirst hereinbefore mentioned, which has not obtained an order of the Governor in Council approving of investments in the debentures thereof ; and such approval is not to be granted to any society or company which does not appear to have kept strictly within its legal powers in relation to bor- rowing and investment." The provisions relating to the registration of debentures are contained in The Debentures Begis- traticfn Act, K. S. 0. 1887, c. 186. . The surplus insurance funds of a friendly society may remain deposited at interest in the name of the society in any chartered bank in Ontario, or in any building society or loan company in Ontario, by any Act of Ontario or of the Dominion of Canada duly authorized to receive deposits. Books of Account and Audit. 215 iety or irs next ivideiicl J stock ; b) shall B luicler sing of ine vary ^spect'uuj istration shall be } deben- ass tirst ined an sing of nd such ciety or ve kept to bor- fation of \s Beg is- society [lame of |io, or in Intario, Canada Section •50 (3) (J The Bnildinij Societies Act, K. S. (3. 1H87, c. 169, enacts that " no society established after the 31st day of December, 1877, shall borrow money or receive deposits, until not less than ^100,000 of stock has been subscribed, and not less than S-10,000 has been actually paid thereon." The Ontario statute in force respecting loan companies receiving money on deposit, is o4 Vic. €. 88, ss. 12 and 13 :— " 12. The company shall not, without the express consent of the shareholders, given at a general meeting, receive money on deposit ; and when money is received on deposit, the same shall, for the purposes of this Act, be deemed to be money borrowed by the company. *' 13 (1) The company shall not borrow money unless at least 8100,000 of its subscribed capital stock has been paid up. " (2) The company shall not borrow money unless at least twenty per cent, of its subscribed capital stock has been paid up. " (3) If the company borrows money by way of deposit, under the next preceding section, the aggregate amount of the sums so borrowed, by way of deposit, shall not at any time, whether the company borrows solely by way of deposit or also in other ways, exceed the aggregate amount of its paid-up capital, and of its other cash actually in hand or deposited by it in any chartered bank or banks in Canada. Section 39 (2). u s. o. 1HN7, c. ICO, 8. r>t)(:»). rjjvif. c. ;w. 210 I)isnrance Cor])oratio)is Act. C ' U.I a: \- o IK— < swtioM << (5) jf w^Q company borrows money both l)y way of debentures or other securities, or by .i-uaran- tee, as aforesaid, and also by way of deposit, the agf,a'egate amount of money so borrowed sliall not, at any time, exceed the amount of the principal moneys remaining unpaid on securities then held by the company, nor shall it exceed double the amount of the then actually paid-up and unim- paired capital of the company ; but the amount of cash then actually in the hands of the company, or deposited by it in any chartered bank, or both, shall be deducted from the aggregate amount of the lia- bilities which the company has then incurred, as above mentioned, in calculating aggregate amount for the purposes of this sub-section." The following Statutes of the Parliament of Canada relate to building societies receiving money on deposit: 37 Vic. c. 50; 40 Yic. c. 49; 42 Vic. c. 49; 47 Vic. c. 40. ^, . , JJO. (1) If it is established to the satisfaction of the Special ^ ' audit in Registrar that the accounts of any registered society have been fraud, materially and wilfully falsified, or that for eighteen consecutive or default ' montlis there has been no bona ^fide audit of the books and accounts ; or if there is filed in the office of the Registrar a requisition for audit bearing the signatures, addresses and occupations of at least twenty- five persons being members of the society, or claimants, or persons entitled to claim, or having insurable interest under contracts of the society, and such requisition alleges in a sufficiently particular manner to the satisfaction of the Registrar, specific fraudulent or illegal acts,, or repudiation of contracts, or insolvency, the Registrar may nominate a competent accountant, who shall, under the direc- tions of the Registrar, make a special audit of the society's books and accounts and report thereupon to the Registrar, in writing,, verified upon oath. Boohs of Account (ind Audit. •217 Compare \i. S. O. 1H87, c. 1(57 {The Ontario Section 30(1). Insurance Act), ss. 100, 140; 8H-M0 Vic. c. ()0 (Imp.), ss. 14 (Ic), 85. If the requisition for audit alleges the society '"^^'vcucy to he insolvent, the solvency of the society within the limited meaning,' of the Act, is alone incpiired into. A society is solvent that has no present liahili- ties apart from actuarial liahilities, or has imme- diately realizahle assets ade(piate to dischar<^c its present actual liabilities : section 2 (10) siipra. Sec- ^,,,^i,„^ tion42, infra, enacts that every claim under an in- !'dytti,io. surance contract accruing to a member of a friendly society, or to his executors, administrators or assigns, shall become legally payable on the expiration of sixty days after reasonably sufficient proof has been furnished to the society of the happening of the event on which such claim was, by such contract, to accrue. But the society may pay the claim at any time before the expiration of the sixty days. The society is liable to have its uoKistiy registry suspended upon lailure oi the corporation for iusoi- to pay an undisputed claim on an insurance con- tract for the space of sixty days after being legally payable, or if disputed, after final judgment and tender of a legal valid discharge. The making of false entries in the books of the society, or the refusal to allow the books to be audited and extracts to be made therefrom, is an olfence upon the part of the officer so acting, and punishable on summary conviction by imprisonment without the option of a fine : sub-section 5 of this section. i:: 5 iV 1218 Insurance Corporations Act. BectloQ 30<1H3). I'roftied- iii^'B after HIKUtOl'H' roport. H '■■% *— ■yi li C' OredcntialB of special c auditor. t to , C ' ■■>> 0.1 ^' o • ^ CO sa If the report made by the special auditor appears to the lie«.(istrar to disclose fraudulent or illegal acts on the part of the society or a repudiation of its contracts, or insolvency, the Registrar notifies the society and furnishes the society with a copy of the special auditor's report, allowing two weeks for a statement in answer to be filed by the society. Upon consideration of the report and of the society's answer and of any other evidence, as the Registrar may require, the Registrar renders bis decision in writing and by such writing continues, suspends, or cancels the registry of the society: section 81 (1) "nd (2) infra. (2) For purposes of this Act a special auditor shall be suffi- ciently accredited, if he deliver to the Secretary or to any managing officer of the society, a written statement under the hand and seal of the Registrar, to the effect that the Registrar has nominated such auditor to audit the books and accounts of the society. Compare R. S. O. 1887, c. 107 {The Ontario Insurance Act), s. 146. Obstruction of such special auditor in the dis- charge of his duty by an officer of the society is an offence punishable on summary conviction by imprisonment without the option of a fine: sub- section 5 of this section. ExpeiiBo of (3) The expense of such special audit shall be borne by the AuTiL society, and the auditor's account therefor, when approved in writing by the Registrar, shall be conclusive and shall be pay- able by the society forthwith. Books of Account rnnJ Audit. •21 appears • illegal atioii of iiotitieH 1 a copy o weeks society. of the , as the iers his itinuey, society ; 1 be sufti- r to any mder the Registrar counts of Into no he dis- y is an on by sub- 5 by the oved in be pay- Provided nevertheless that where an audit is requested as in Bection , 1 • • 1 11 .1 • 1 30(3H4). sub-section 1, the persons so requesting it shall together with - their requisition deposit with tlie Registrar proper security for •'''''^■'''" the costs of the audit in a sum not exceeding ."^'iOO as he shall determine ; and where the facts alleged in the requisition appear to the Registrar to have been partly or wholly disproved by the audit, he may pay the costs thereof partly or wholly out of the deposit. Compare 88 k 31) Vic. c. (iO (Imp.), s. 3o. The Registrar's ruling as to the costs of the audit is conclusive, and no appeal lies: see Holmes- ted cV: Langton, p. 879 et seq. (4) The books used by any collector for recording nionevs, Hook>«. the . 1 <. , . , „ 1 ■ ,. , • " piopmv of received for the society shall be the property ot the society, nor tin- society shall any collector or officer, or employee of the society have in these or in any other of the books of account or record finyy"lect is continued, the re<^nstry of the society is cancelled: section 4o, infra. iM o Uutruo en- (^) Every director, otiicer, manager, agent, collector, or tries, etc. gu^jioyee of the society, who knowingly makes or publishes, or assists to make or publish, any wilfully false statement on the society's financial affairs, or who makes or assists to make any untrue entry in any book of record, entry, or account, or who refuses or neglects to make any proper entry therein, or to exhibit the same, or to allow the same to be inspected or audited either for the general purposes of the society or for the purposes of this Act, and extracts to be taken therefrom, shall be guilty of an offence, and upon summary conviction thereof before any police magistrate or justice of the peace having jurisdiction where the offence was committed, shall be imprisoned in t^ie Central Prison, or in any gaol of the Province with or without hard labour for a period not exceeding twelve months. Compare K. S. C. c. 119 {The Companies Act)y s. 45; K. S. C. c. 131 {Trade Unions Act), s. 18; K. S. 0. 1887, c. 167 {The Ontario Insurance Act) y s. 142; 38 & 39 Vic. c. 60 (Imp.), s. 32 (1). For civil liabilities see The Directors' Liahilitjj Act, 1891, 53 Vic. c. 34 (Ont.) Books of Account and Audit. ±21 Sections (rt) When a society by its officer, employee or nj,'ent liaving ,i'.(3). in his custody, possession or power, the funds, books or vouchers of the society refuses to liavu the same dulv audited as provided •; '^i'-ty n- •' , , ' ' fiit.es or by section 29, and by this section, or obstructs an auditor in the '•'•"unotH performance of his duties, the He^'istrar upon proof of the fact may suspend or cancel the registry of such society ; but such suspension or cancellation shall be appealable as hereinafter provided. Compare 38 ik 30 Vic. c. 00 (Imp.), s. 32. So also, if the ofticer or person in char<;e of a society's ])oo)'s refuse or neglect to afford access to all such hooks, securities and documents of the society as relate to the society's contracts, the society is liahle to have its re(,'istry suspended; and on continued refusal or neglect to afford such access, is liable to have its registry cancelled: section 45 iufrd. The mode of appeal provided will be found in section 51 infra. Hi, (1) If the report made by the special auditor appears to luiort of the Registrar to disclose fraudulent or illegal acts on the part of amiitor. the society, or a repudiation of its contracts, or insolvency, the Registrar shall notify the society accordingly, and furnish the society with a copy of the special auditor's report, allowing two weeks for a statement to be filed by the society with the Regis- trar in reply. (2) Upon consideration of the special auditor's report, and of KeKisirars the society's statement in reply, and of such further evidence, documentary or oral, as the Registrar may ^'equire, the Registrar shall render his decision in writing, and may thereby continue, or suspend, or cancel the registry of the society ; but such decision shall be appealable, as hereinafter provided. (3) The evidence may be given under oath, which oath theEvideuce Registrar may admmister. • uuaeroatir 1^ HBR' 222 In.snrdHce Corjtoiutfii/na Act. g r C ' U.J 3: 03 or illegal iictfl of Hociuty. .'WJVic.c, 3!t (O), f. 10, "V"?" rndt'r 53 Vic. c. 80 the proetMlurt' is by rovocu- — , tion or suspoiision of tln' coriwrato powers of u society. " 10. (I) If after a reasonable time has been <,nven to the corporation to l)e heard, it appears to the Lientenant-Ciovernor in Council that any body incorporated under the provisions of the Act res- pecting Benevolent, Provident and other Societies is usin^ its corporate powers for any fraudulent or other unlawful purpose, it shall be lawful for the Lieutenant-Governor in Council to suspend for a liniited period, or to revoke the said corporate powers, and on any revocation the corporate powers shall ijmo facto absolutely cease and determine, except for the sole purpose of winding-up the affairs of the corporation; and the High Court upon the petition of the Attorney-General or any person interested, may by judgment or order limit the time within which the corporation shall settle and close its accounts, and may for this specific pur- pose, or for the purpose of liquidation generally, appoint a receiver." The form of the Order in Council revoking the corporate powers of a society is as follows: see Ontario Gazette of April 11th, 1891. " lie The Lion Provident Life and Live Stock Association, ^' ('itj)ij itf an (h'der in Council np/irovetl hi/ His Honmir t/m lAentenant-dovernor, the 3i'd iloif of' Ai>iil, A.D., 1891. " Upon consideration of the Commissioner's Report in the matter of The Lion Provident Life and Live Stock Association; and of the depositions revocii- n'H of 11 us been peiirs to iiy body Act ivs- ■Jocit'tios ulent or 1 for the lul for a orporato e powers teriiiino, le affairs poll the ■ person iiiiit the ttle and |iHc pnr- nerally, Kin^' the kvs : see ISOCIATION. foivntr th*^ doner's |nt Life )sitions Boo/i.H of Account (iiid Audit . •22:^ and exhibits annexed to the snid report and upon ^^^^^ the reeoininendation of tlie Hon. the Provincial ^ Secretary, Mis Honour the Lientenant-(iovernor by n'ld with the advice of the Executive Council of Ontario, has been ph'ased to order, and it is hereby ordered that the corporate powers of the said asso- ciation be revoked absohitely, pursuant to oH Vic. c. 89, s. 10." Simihir proceediii'^s were had and a siniihir order made in the case of the Si'))teiinial 13eiievo- knit Society of Ontario: Order in Council diited loth Alienist, 1891. Under the prc^sent Act the rc'^istration ot the } '">v; society is suspended or cancelled. After suspension ^''^' '""'^ or cancellation of re^nstry the further transaction of insurance by the society or its ollicers is illc^'al and is visited with penalties: Cf. 53 Vic. c. 39 (Ont.j, s. 11. Upon notice beinj,' given to the society by the Registrar that the registry of the society is cancelled or suspended, the otlicer of the society, who has in his charge, custody, possession or power the accounts, account books and insurance funds of the corporation is IpHo facto made interim receiver: section 58 (1), iiifni; and liquidation proceeds regularly as provided in section 58 et neq. (vide infra). Misapplication of Assessments. — The statute uleSiuo* under which defendant association was organized"' '""'* provided that "no part of the funds collected for the payment of death benefits shall be applied for any other purpose." It not being denied that " the advance mortnary assessment " required o 224 Insurance Gorporations Act, C > UJ o OQ Section i^ew members are funds designed for the paymeiit of death benefits, the use of such assessments for the payment of current expenses is a violation of law, justifying dissolution: Chicago Mutual Life In- demnity Association v. Hunt, Attorney-General, (111. S. C, March 15, 1891), 20 North Eastern Reporter, ^6. R. S. C. c. 124, s. 39 (5) contains a similar restriction binding upon assessment life companies operating under sections 38 and 39. Election of officers, Fraud in. — A statute pro^ vided that the officers of such an association shall be managed by not less than five directors, trustees or managers, elected from and by the members. Defendant's certificate of association provided for a board of eight trustees to be elected annually. At first the manager and secretary were appointed by the trustees, but in 1886 a resolution was adopted that the manager and secretary should thereafter be elected annually by the members. Blank applications for membership then in use by the association had printed upon them a blank proxy authorizing the person whose name should be inserted to act and vote for the member at all meetings, and underneath it, was a request for the applicant to sign it in blank to be filled up by the secretary. In accordance w^th the request a great number of these proxies were so signed and sent to the secretary. The resolution above mentioned was adopted mainly by use of these proxies. From that time on, the board of trustees ceased to con- trol, the real governing authority being the mana- ger and secretary, who held a sufficient number of Boohs of Account and Audit. 225 meiit of for the of law, life In- reneral, Eastern itains a Biit life 39. ite pro"^ on shall trustees embers. )rovided nniially. [pointed on was should embers, use by a blank should r at all for the by the a great sent to itioned From to con- mana- liiber of these proxies to perpetuate themselves in otiice, and conducted the business of the association as they saw lit. Held, a violation of law and a fraud on the members justifying dissolution: Chicago Mutual Life, etc. v. Hunt, Attorney-General, 20 North East. Eep. 55. False Numhering of Certificates. — The officers of the association were also guilty of fraud on the members in issuing certificates of membership ifltmbered higher than the total number of certifi- cates issued up to that date ; and it was no excuse that such false numbering was done, not to deceive new members, but merely to prevent rival associa- tions from ascertaining the state of the business. No attempt having been made to apprise appli- cants of the truth, the efiect was fraud: Chicago Mutual Life, etc. v. Hunt, Attorney-General, 20 North East. Hep. 6^. Every claim under an insurance contract of the society, accruing to a member, is under the Act legally payable on the expiration of sixty days after reasonably sufficient proof has been furnished to the society of the happening of the event on which such claim was bv the contract to accrue : section 42, infra. A corporation is liable to have its registry suspended by the Registry Officer upon failure to pay an undisputed claim on an insur- ance contract for the space of sixty days after being legally payable, or if disputed, after final judgment and tender of a legal valid discharge: section 44 (1), infra; if within a further period of H.I.C.A — 15 Section 31(3). ImoU'cncy Cf. 8. 2 (16). mipra. 15 226 Insurance Corporations Act. C ' a: o section yixty clays the society has not fully paid all undis- puted claims and final judgments the Registrar shall cancel the registry of the society: section 44 (8), infra. Appeal. 1^1^t3 mode of appeal is prescribed in section ol, infra. The appeal lies to a Divisional Court of the High Court. The appellant must give security for costs in an amount fixed by the court or a Judge thereof. Two clear days' notice of the application to fix the amount of the security nnist be given to the Registry Officer. At least ten clear days notice of appeal and any subsequent proceed- ing on appeal must be given the Registry Officer. A minute of the final judgment is entered on the register and the Registry Officer issues a certificate of registry or cancels the registry granted according to the tenor of the judgment. Rules de- Uti, (1) A copy of all rules of a friendly society relating to liverable . . , , , . . ,. on demand its msurancG contracts and to the management or application oi its insurance funds shall be delivered by the society to every person on demand, on tender of twenty-five cents. Compare 38 & 39 Yic. c. 00 (Imp.), s. 13 (5); 39 & 40 Vic. c. 45 (Imp.), s. 9 (5); R. S. C. c. 131 (Trade Union Act), s. 15, K Delivery of uutnie ' rules. (2) It any officer or agent of a society, with intent to mislead or defraud, gives to any person a copj of rules other than the rules then in force, on the pretence that the same are the rules then in force, he shall be guilty of an offence ; and shall, upon summary conviction thereof before any police magistrate or justice of the peace having jurisdiction where the offence was committed, be liable as for an offence committed against section 27 of this Act. Conditions in Policies. 227 [1 unclis- tegistrar ctiou 44 ■tion ol, Court of security urt or a of the ity must ben clear proceed- ,' Officer. 1 on the ertificate ccording relating to plication of iv to every 1:3(5); 39 . c. 131 I to mislead than the le the rules [hall, upon i;istrate or fence was list section Compare 38 d' 39 Yic. c. 00 (Imp.), s. 13 (6) ; gj^^'^^jj^) 39 c^: 40 Yic. c. 45 (Imp.), s. 9 (6); R. S. C. c. 131 ' — {Trade Union Act), s. 19. ' The offender is liable on sunnnary conviction to a penaltj^ not exceeding ^200 and costs and not less than ^20 and costs; and in default of pay- ment to imprisonment with or without labour for a term not exceeding three months and not less than one month. On a second or anj' subsequent con- viction the offender is liable to imprisonment with hard labour for a term not exceeding twelve months and not less than three months: section 27 supra. Conditions in Policies. 33. (1) Where any insurance contract made by any co*:-'^..ms, etc poration whatsoever within the intent of section 2 of this Act uact lu- is evidenced by a sealed or written instrument, all the terms and unless set conditions of the contract shall be set out by the corporation in °"^ "^ full on the face or bqpk of the instrument forming or evidencing the contract ; and unless so set out, no term of, or condition, stipulation, warranty or proviso modifying or impairing the effect of any such contract made or renewed after the commencement of this Act shall be good or valid, or admissible in evidence to the prejudice of the assured or beneficiary. This section has already in large measure been ^enacted piecemeal in Ontario. For contracts of fire insurance the law has Fire lasur- established Statutory Conditions, vide appendix A, i^^t^c. lo?.' which as against the insurers are deemed to be part of every contract, whether sealed, written or oral, of lire insurance entered into in Ontario with respect to anj' property therein or in transit there- from or thereto. It is further required that the * ».■ 228 Insurance Corporations Act. 88. 115, IIG. C C ' O CO 5J«^^ Statutory Conditions be printed on every policy : Ontario Insurance Act, section 114. Variations, additions, or omissions of any of the conditions must likewise be printed on the instrument of contract, in the manner prescribed by the Act, and have force, only so far as by the Court or Jud<>e before whom a question is tried relating thereto,, they shall be held to be just and reasonable to be exacted by the company: ihich ss. 115, 117. The Statutory Conditions were first enacted by The Uniform Conditions Act of 1876. In 1880, Hie Supreme Court, in Mutual Fire Ins. Co. of Co. Wellington v. Frey, 5 S. C. R. 82, decided that the Uniform Conditions Act did not apply to mutual insurance companies. In 1881, 44 Vic. c. 20 (Ont.), s. 28, enacted that the said Act should apply to such companiej. In Parsons v. Citizens Ins. Co. L. E. 7 App. Cases 96, it was decided that the Statutory Conditions bind all policies of lire insurance made in Ontario, whether the insurinffxompanies were incorporated or licensed by the Province or other- wise. 45 Vic. c. 20 (Ont), ss. 2, 3, 4, extended the Statutory Conditions to written and oral contracts of fire insurance. The provisions of The Ontario Insurance Act relating to conditions still govern all contracts of lire insurance entered into in the Province. See Appendix A. The enactment heretofore in force relating to contracts of life insurance is as follows : " No term of, or condition, stipulation, warranty or proviso modifying or impairing the effect of any contract of life insurance made after the commencement of policy : 'i at ions, iditiona nent of Let, and r Judge thereto,, lie to be 1. The by The 580, ^he of Co. that the mutual ) (Ont.), / to such . L. R. atutory e made s were |r other- ded the ntracts ntario govern in the Iting to [o term [proviso mtraot lent of Conditions in Policies. 229 this Act by any company transacting business in ^JJ^fJ^ Ontario shall be good or valid unless such term, condition, stipulation, warranty or proviso is set out in full on the face or back of the instrument forming or evidencing the contract": 52 Vice. 82 (Ont.), section 4. In the statute 52 Vic. c. 32 (Ont.), company had^ift' iusm-- the same meaning as in The. Ontario luHurance^ollx^ Act, and therefore did not include societies not requiring a license for any contract of insurance within The Ontario Insurance Act before the pass- ing of the Act: R. S. 0. 1887, c. 167, sections 2 (4) and 8. The present section is general and includes all insurance contracts whether undertaken by a cor- poration registered on the Insurance License Register, or by a corporation registered as a friendly society. Following the Statutory Conditions in fire poli-Livebtock ^-^ "^ ^ iusurauce, €ies the statute 52 Vic. c. 38 (Ont.), enacted statu- g^^'^^'.'si,^ tory conditions for contracts of live stock insurance undertaken by mutual or cash mutual live stock insurance compc'^nies. These conditions are to be printed on every policy: section 54; and variations, additions, or omissions of any of the conditiojis must likewise be printed on the instrument of contract : section 56. And now by this Act where any insurance con- ah cou- T , . n ... tracts of tract made by any corporation whatsoever within i^^^^^^<=« the intent of section 2 (supra) is evidenced by aseS°r sealed or written instrument (see section 2 (9), " ' ■ t < » t 280 Insurance Corporations Act. i t C ' p ca s«gCtion supra)^ all terms and conditions of the contract shall be set out by the corporation in full on the face or back of the instrument forming or evidencing the contract. Effect of non-com- pliance. R. S. C. c. 121, Bs. 27, 28. If a term or condition is not set out as above the liability of the insurer is not thereby impaired, but the term or condition, stipulation, warranty or proviso modifying the effect of the contract and so omitted, is invalid and inadmissible in evidence to the prejudice of the assured or the benehciary. The Insurance Act of Canada, contains paral- lel provisions respecting contracts of life in- surance. "No condition, stipulation or proviso modifying or impairing the effect of any policy or certilicate of life insurance issued aftei the first day of January, one thousand eight hun- dred and eighty six, by any company doing busi- ness within Canada, under the authority of the Parliament of Canada, shall be good or valid unless such condition, stipulation or proviso is set out in full on the face or back of the policy:" s. 27. In Vernier v. Sun Life Insurance Company,. 1890, 17 S. C. E. 394, the policy was issued "without conditions," but expressly "sur les repre- sentations, conventions et stipulations contenues. dans la4emande pour cette police." These repre- sentations^ w^ere proved to be false in the most materia" ^ irticulars, and it was held that the com- pany never became bound under the policy. For it was a sufficient compliance with section 27 of The Insurance Act to refer in express terms in the Conditions in Policies 231 policy to the stipulation contained in the appHca- ^33"°,° tion. CoiUlift on aiiib uity ill In the case of ambiguity in the contract theonambiK construction most unfavorable to the insurer will "oiwiuionB be adopted, and properly, for by universal custom it is the insurer that prepares the contract and furnishes the language used: Cooke, Life Insur- ance, § 8. "No rule in the interpretation of a policy is more fully established or more imperative and controlling than that which declares that, in all cases, it must be literally construed in favor of the insured, so as not to defeat without a plain necessity his claim to the indenmity, which, in making the insurance, it was his object to secure:" May on Insurance, § l7-5. Provided that a registered friendly society may, instead of I'roviso. setting out the complete contract in the certificate or other instrument of contract, indicate therein by particular references those articles or provisions of the constitution, by-laws or rules which contain all the material terms of the contract not in the instrument of contract itself set out ; and the society shall at or prior to the delivery over of such instrument of contract deliver also to the assured a copy of the constitution, by-laws and rules therein referred to. In lieu of setting out the complete contract in the certificate or other instrument of contract a friendly society has the alternative of indicating by particular reference the articles in its constitution and rules which contain all the material terms of the contract not found in the instrument of con- tract itself. If this mode of complying w^ith the law is adopted a copy of the constitution, rules and I >s. 232 Insurance Coi'poratio)is Act. ^tion by-laws must be delivered to the assured at or prior to the delivery over to him of the instrument of contract. An article or provision not indicated in the manner prescribed, or not contained in the constitution and by-laws delivered to the assured, is not admissible in evidence to the prejudice of the assured or beneficiary. It would be prudent to take from the assured such a receipt for the document delivered to him as will identify the document. H iij O Proviso. Provided also that nothing in sub-sections 1, 2 and 3 of this section contained shall be deemed to impair the effect of the provisions contained in sections 114 to 118 inclusive of The Ontario Insuranve Act, or the effect of the provisions contained in section 5G of an Act passed in the fifty-second year of Her Majesty and chaptered 33. The existing statutory regulation of conditions in fire insurance and mutual live stock insurance contracts (vide supra) are continued in full force and effect. Por the statutory conditions in fire policies, see Appendix A. Contract (^) ^^ contract of insurance made or renewed after the j'lj^y'^^j^^'^^g^ commencement of this Act shall contain, or have endorsed upon eou^s^BTate- ^^' ^^ ^^ made subject to any term, condition, stipulation, war- ainJiication '^^"^y ^1^ proviso, providing that such contract shall be avoided material ^^ reason of any statement in the application therefor, or in- ducing the entering into of the contract by the corporation, unless such term, condition, stipulation, warranty or proviso is limited to cases in which such statement is material to the con- tract, and no contract within the intent of section 2 of this Act shall be avoided by reason of the inaccuracy of any such state- ment unless it be material to the contract. CortfJitiods in Policies. 'im This section has idready heen enacted in ^"°° Ontario, so far as contracts of Hfe insnrancc Hro5.7;:;;r^732 concerned, by 52 Vic. c. :t2 (Ont.), «• 5 :— " No*^'"' '• contract of Hfe insurance made or renewed after the commencement of this Act, shall contain or have endorsed upon it, or be made subject to any term, condition, stipulation, warranty or proviso, provid- ing that such contract shall be avoided by reason of any statement in the application therefor, or inducing the entering into of the contract by the company, unless such term, condition, stipulation, warranty or proviso is limited to cases in which such statement is material to the contract, and no contract of life insurance shall be avoided by reason of the inaccuracy of any such statement unless it be material to the contract." Section 28 of The Insurance Act of Canada contains a similar pro- vision. The first Statutory Condition of fire policies, J"'j'jj'"^^<^^' see Appendix A, limitf- the avoidance worked by non-disclosure or misrepresentation to cases in which the non-disclosure or misrepresentation was of a circumstance material to be made known to the company, in order to enable it to judge of the risk it undertakes. Similar provision is made respecting contracts of mutuai live stock insurance by section 56 of 52 Vic. c. 33 (Ont.) foi! s^w/'* The misrepresentation does not need to be false inaccrac,,. or frandulent ; it is sufficient to avoid the policy if, being material, it is untrue : Sly v. Ottawa Agricultural, 29 U. C. C. P. 557 ; Greet v. Citizens, 27 Or. 121, 5 A. R. 596. Porter on Insurance, 148. i > 284 Insurance Corporations Act, c I I C ' o Z2 Becuon " Tlu' c)l)ject of the ^' n-iso is that the company shall he protected , iiist untruthful representa- tions whether those representations are untrue to the knowledf^e of the party effectin«j;- the insurance or not ; the terms would prima facie and naturally import, in the ordinary use of hui'^ua^'e, that the policy is vitiated if the representation, made as preliminary to the contract, was not in fact true" : per Cockhurn, C.J., in ]\[acdonald v. Law Tnion Insurance Co., L. K. 1) Q. B. at p. 88-2. In Wilkins V. The Mutual Keserve Fund Life Association (New York, S. C. 1889), 7 New York Suppl. oS9, it was held that the known falsity of a representation made hy an applicant for life insurance will not vitiate the contract unless the representation was material to the contract, or was so deemed by the insurer. The fact that the representation was made in answer to a question put by the insurer will ordinarily indicate that it was deemed material ; but if, nevertheless, the terms of the contract show that it was not deemed material by the insurer, its known falsity will not vitiate the insurance. Held^ also, the burden of proof of the truth of answers in the application is not on the plaintiff; their falsity must be alleged and proved by the defendant. Warranty A distiuctiou lias frequently been drawn sentation. bctwccn thc burdon of proof of breach of warranty and the burden of proof of material misrepresenta- tion. It is thereby sought to impose upon the assured the burden of proving the truth of w^arran- ties while it rests with the insurer to prove only BurJcu of proof. donditioUH in Policies. 285 ooinpany )i'es('ntci- iiitrik' to nsurance iiiiturallv that tlie iiiadt' as •t true": w L'nion 1 Wilkins sociation )1. 5S9, it lentatioii will not itioii was d by the iion was B insurer naterial ; act show urer, its truth of )laintiff ; by the drawn 'arranty •esenta- 3on the warran- ve only the existence and non-perfonnance of conditions "Ij*!,?" arisin«4" from mere representation. It was also souj^ht to establish that in the case of a wai'ranty the contract is conditional on the absolute truth of the statement, whether made in fjjood i'aith or not; and that the question whether such statcnu'iit was or was not nuiterial was not involved: Anderson v. Fitz«^erald, (LSo3) 4 II. L. Cases, 484. It becaiiu' usual in applications for insurance to add an express • af^reement that the statements in the application contained were warranties. As the effect of con- sidering a given statement as a warranty instead of a representation was frecpiently to work a for- feiture of the rights of the assured under the con- tract, such a statement was, in a case of doubt, construed to be a representation rather than a warranty: Britton v. Koyal Arcanum, (LSSD) 4() N. J. Eq., 102; Vivar v. Supreme Lodge Knights of Pythias, (1890) 20 Atl. Rep. 86; Campbell v. New England Mutual Co., 98 Mass. 881. Now whether warranty or representation, the forfeiture is limited to cases in which the statement in ques- tion is material to the contract. The weight of authority, also, is that the burden of proof of a breach of warranty rests on the insurer as well as does the burden of proof of a misrepresentation : Cooke on Life Insurance, § 14, and cases there cited. Where a direct question is put and the answer Questions -^ ^ ^ not ans- purports to be a complete answer, any material '^®''®'^' misstatement or omission in the answer avoids the contract. But where on the face of the applica- 28() Inaurame Corjninitioiis Act, ••otion as (2). g C ' a: o CQ tiOIitt nskecl. KuowlodRC of accnt. tioM ]• (jiu'stioii Jip[)('.'ir8 not to l)t' answered at all, or to i)e iiiipiMtVv'tly answered, and the contract is made, without further in({uiry on the part of the insurer, the omission does not avoid the contract. Thus in the following' cases it was held that the company waived the information by issuing' the policy: Sinclair v. Canadian Mutual, 40 U. C. li. 2()(), 212; American Ins. Co. v. Pieul, S. C. Pa., S) Penn.52(); Liberty Hall Ass. v. Housatonic Co., (*) Gray 185; Nicholls v. Fayette Mutual, 1 Allen (Mass.); Ph(enix Co. v. Poddin, 120 U. S. LS8 ; .Millar v. Pluenix Mutual Co., 107 N. Y. 292, 801. The mere omission of the applicant to state matter not called for by any specific or f,'eneral (luestion or. not re(]uired to be made known by any terms or conditions of the contract: cf. First Statutory Condition, Appendix A, does not affect the validity of the contract: Klein v. Union, 8 (). R. 234, at page 2G0; London Assurance v. Mansel, L. R. 11 Ch. D. 803; Rawls v. American Mutual Co., 27 N. Y. 282; Humphreys v. National Benefit Asso., 20 Atl. Rep. 1047. Assuming the soundness of the distinction drawn between statements considered as warran- ties and as representations, it followed, that, if the assured conditioned the contract on the absolute truth of a certain statement, there was no clear reason why the forfeiture of the contract for the untruth of such statement should be prevented, merely because the insurer or his agent knew such statement to be false. The law w^as so stated in Kenyon v. Knights Templars Asso., 122 N. Y''. 247. >(1 tit nil, ntnict is t of the 'oiitract. that the iiiii^' tile Q. C. U. C. Pa., )nic* Co., , 1 Allen S. LS8; >92, 801. to state f^enerul 11 by any pf. First t affect nion, 8 a nee v. nerican National tinction warran- t, if the bsoliite 10 clear for the vented, 3w such ated m Y. 247. CofuIitionH in Pulicies. liarteaii v. Phci'iiix Mutual Co., 07 N. Y. 5'.).") ; Vose V. Eagle Co., (3 Cush. (Masti.) 42. While the contrary was held in Cotten v. Fidelity and Casualty Co., (1H Cush. (Mass.) 42; to the contrary, Newman v. Covenant Mutual Asso., 7() Iowa o(). The current of decisions in our courts has lieen to re«j[ard the knowled«^'e of material facts com- municated to the a<,'ent as !vnowled«,'e of the company: Liverpool, etc. v. Wyid, 1 S. C. H. 004; McQueen v. Pho'nix, 4 S. C. li. (iOO; Gouinlock v. Man. and Merchants Mutual Fire, 48 U. C. li. 5()8; Nau^hter v. Ottawa Ins. Co., 48 U. C li. 121; Bro«,'aii v. Man. and Merchants Mutual Fire, 21) C. P. 414; Brown v. Ottawa A^a-icultural, 42 U.C.Ii.282; Sinclair V. Canadian Mutual, U.C.R. 20(); Ashford v. Victoria Mutual, 20 C. P. 484; Dear v. Western, 41 U. C. K, 558 at 501; Parsons v. Queen, 48 U. C li. 271. But if the application states that the a^ent of the company in filling- up the application should be regarded as the agent of the applicant and not as the agent of the company, the company is not estopped from setting up the defence of misdescription by reason only of the mis-description arising from the error of the agent. Sow^den v. The Standard Fire Insurance Co., 5 A. R. 290; Compton v. Mercantile, 27 Gr. 884; Shannon v. Hastings Mutual, 2 S. C. R. 894; but see Lyon v. Stadaconna, 44 U. C. R. 472. In 287 Bcotlon 33 ia>. .Vt^oiit for iisHured ill tllliii){ti|> applica- tioi). 238 Insurance Corporations Act. 33 (2). 8 C ' UJ 3:: CO ^fS Q^^inlaii V. The Union Fire Ins. Co., 8 A. R. 876, the appHcation was not signed by the assured in person but through the agent of the company and stated that the agent had made a personal survey of the risk, it was held that under the circumstances the assured was relieved from the effect of an omission which was material. But generally where the assured assumes the acts of the agent and binds himself for the truth of the statements contained in the application, he can not be relieved by the fact that the agent acted carelessly, or even faith- lessly, in making out the application, Wilkins v. Mutual Reserve Fund Life Ass., (N. Y. S. C. 1889), 7 New York Supplement, 589. If the applicant, however, lays before the agent taking the applica- tion a statement of facts that is wholly true, the insurer cannot object that any statement in such application dictated or written by the agent acting upon such true statement of facts is untrue. Wilder V. Preferred Mutual Accident Assoc, (1888) 14 N. Y^ State Rep. 365; Keystone Mutual Benefit Assoc. V. Jones, (1890) 20 Atl. Rep. 195, in which case the agent placed the age of the assured, who was unable to read or write and did not know his own age, at less than it really was ; O'Brien v. Home Benefit Society, (New York C. A. 1890), 22 North East Rep. 954; Piedritsky v. Supreme Lodge Knights of Honor, (1889) 43 North Western Rep. 373, where the examining physician took it upon himself to write down answers other than those given by the assured; Massachusetts Co. v. Eshel- man, 30 Ohio St. 647, where the agent forwarded to the insurer a spurious application, instead of l! Conditions in Policies. 289 , 876, the in person Lid stated ey of the mces the omission here the md binds contained d b}^ the .'■en faitli- nlkins v. C. 1889), ipphcant, B applica- true, the in such 3nt acting e. Wilder 1888) 14 Benefit in which red, who Know his V. Home 22 North Lodge ern Rep. it upon an those r. Eshel- orwarded istead of e the appHcation actually made; Boos v. "World ^^^^1°^ Mutual Co., 64 N. Y. 286; Sawyer v. Equitable Accident Co., (1890) 42 Fed. Rep. 30; Bentley v. Owego Mutual Benefit Assoc, 28 N. Y. State Rep. 470; Mc Arthur v. Home Assoc, 78 Iowa 386; Gray v. National Benefit Assoc, 111 Md. 581; New Jersey Mutual Co. v. Baker, 94 U. S. 610; but see McCoy v. Metropolitan Co., 138 Mass. 82; Franklin (Fire) Co. v. Martin, 40 N. ,1. Law 568, 578. But if, knowing the presence of the untrue answer by having read it or otherwise the applicant certifies to its truth, the insurer may set up in defence the untruth : Grattan v. Metropoli- tan Co., 92 N. Y. 274, 288. In fire insurance the first statutory condition, matewai fa /»f R. S. 0. 1887, c 167, s. 114, defines the duty of the applicant. *'Ifany person or persons insures his or their buildings or goods, and causes the same to be described otherwise than as they reall}' are, to the prejudice of the company, or misrepresents or omits to communicate any circumstance which is material to be made known to the company, in order to enable it to judge of the risk it under- takes, such insurance shall be of no force in respect to the property in regard to which the misrepre- sentation or omission is made." See further, Appendix A. So far as the law of non-communication was con- cerned, the statutory condition left the law where it had been for the last century ; Moore v. Citizens Fire Ins. Co., 14 A. R. at 587, ^>erHagarty, C.J.O., siting London Ass. Co. v. Mansel, L. R. 11 Ch. 13. i < 3 240 Insurance Corpovatiom Act. c ' UJ a: o ^mX ^^^' "^^^^ description was held to be limited to the date at which the insurance was effected : Pirn V. Reid, 6 M. & G. 1,-bnt the third statutory condition forbids a subsequent material alteration of the risk prejudicial to the insurer. Where the applicant is interrogated as to such matter the first condition applies to matters relating to the "moral" as well as to the ''physical" risk: Reddick v. Saugeen, 15 A. R. 363. As to risk of incendiarism, see Greet v. Citizens Ins. Co., -5 A. R. 59G. It is material for insurer to know the precise ownership of the property: Compton v. Mercantile, 27 Gr. 334; Lyon v. Stadaconna Ins. Co., 44 U. C. R. 47'Z; Shaw v. St. Lawrence Co. Mutual, 11 U. C. R. 73. But where no inquiry is made by the company it is not necessary for the assured to say anything about his title or the in- cumbrances on the property. He must be inter- ested in it, but he is not bound to disclose the particular nature and modification of his interest: Klein v. The Union Fire, 3 0. R. 234; see also McQueen v. Phoenix, 4 S. C. R. 668; Laidlaw v. Liverpool & London, 13 Gr. 377; White v. Agri- cultural, 22 C. P. 95; Stillman v. Agricultural, 16 0. R. 145; Samo v. Gore District Mut., 1 A. R. 545; Hopkins v. Provincial Ins. Co., 18 C. P. 74. As to present cash value, see Moore v. Citizens Fire Ins. Co., 14 A. R. 582; Sly v. Ottawa Agricul- tural, 29 C. P. 557. Materiality, it is decided, is entirely a question for the jury: Parsons v. Citi- zens, 43 U. C. R. 271; Klein v. Union, 3 0. R. 234, at 256; Samo v. Gore District, 2 S. C. R. 411 ; Naughter v. Ottawa Agricultural, 43 U. C. R. 121; i limited effected : statutory [Iteration Where b matter lating to al" risk: o risk of 5. Co., mow the upton V. nna Ins. ence Co. nquiry is ^ for the the in- 3e inter- lose the nterest : see also .idlaw V. V. Agri- cultural, 1 A. R. I. P. 74. itizens gricul- ided, is V. Citi- \ 0. R. R. 411; R. 121; V Conditions i)i Policies. where the fact that a building was within one hundred feet of risk was held immaterial. And by the sub-section following the question of materi- ality in any contract of insuraii'^e whatsoever is made a question of fact for the jury, or for the court if there be no jury. "I am not prepared," said Jessel, M.R., in London Assurance v. Mansel, L. R. 11 Ch. D. at p. 307, " to lay down the law as making any differ- ence in substance between one contract of assur- ance and another. Whether it is life, or fire, or marine insurance, I take it good faith is required in all cases." See also Thomson v. Weems, L. R. 9 App. Cases at 684. In life insurance it is the duty of the applicant to make truthful answers to all questions relating to his health : American Mutual Aid Association v. Brongan, (1890) 11 Kentucky Law Rep. 902. As to statement that applicant is now, and ordinarily, enjoying good health, see British Equitable Co. v. G. W. Ry\ Co., 38 L. J. Ch. 314; Connecticut Mutual Life Ins. Co. V. Moore, L. R. 6 App. Cases 644. While "• good health " may be regarded as equivalent to a state- ment that the applicant is free from disease, the statement is not falsified by proof of existence of a mere temporary ailment, unless it be such as to indicate a vice in the constitution, or be so serious as to have some bearing upon the general health and the continuance of life, or such as according to common understanding would be calld a dis- ease: Gaucher v. North-Western Traveling Men's Asso., 20 Fed. Rep. 596. The proviso is to guard H.I.C.A — 16 241 Section 33 (2). Life insur- ance. Health. 242 InnH ranee Cofporationa Act. S8ctica 33 (2). O ca Retereuce to physi- cian. against fraud on the conjpany: Campbell v. National Life Ins. Co., 24 U. C. C. P. 188. It i& an equivalent statement that the applicant is in " sound health": Brown v. Metropolitan Co., 65 Mich. 806; Morrison v. Wisconsin Oddfellows' Asso., 59 Wis. 162. For cases in w^iich a parti- cular affliction or "disease" was considered, see Cooke on Life Insurance, § 28 and notes. For consideration of answer to a general question whether the applicant is aware of any disorder or circumstance tending to shorten life or to make an assurance more than usually hazardous: see Watson V. Mainwaring, 4 Taunt. 768. On mean- ing of "severe illness," or a "serious illness": see Miller v. Confederation Life, 11 0. E. 120, affirmed 14 A. E. 218; 14 S. C. E. 830; "Masons Benevolent Society v. Winthrop, 85 111. 537, 542; Galbraith V. Arlington Mut. 12 Bush. (Ky.) 29, 88. The words " hurt " and " wound," as used in a question contained in an application, " Pave you received any wound, hurt or serious bodily injury?" means an injury to the body causing an impairment of health and strength, or rendering the person more liable to contract disease, or less able to resist its effects. A cut on the face, finger, or any part of the body, from which blood fiow^s, though healing in a few days, is a hurt or wound, but not within the meaning of the contract : Bancroft v. Home Benefit Association, (N.Y. C. A. 1890), 80 N. Y. State Eep. 175. The fact that the applicant has or has not required the services of a physician or other medi- cal attendant may be material : see Huckman v. CondltionH in Policies. 243 ipbell V. ys. It i& 'licant is 11 Co., (35 iclfellows' a parti- 9recl, see les. For question J order or to make oils : see 11 mean- illness": R. 120, ' Masons 37, 542; Ky.) 29, used in ave you njury?" airment person able to or any though but not croft V. 90), :-30 as not medi- nan v. Fernie, 8 M. & W. 505 ; Connecticut Mutual Life ^Mj^jn Insurance Co. v. Moore, L. R. 0, App. Ca., at p. 651 ; Morrison v. Muspratt, 4 Bing. 60. For what state of facts is sufficient to prove medical attend- ance, see Cushman v. U. 8. Co., 70 N. Y. 72; Edington v. Mutual Co., 67 N. Y. 185; Brown v. Metropolitan Co., 65 Mich. 306, 812. See also, as to truth or falsity of statements concerning the physician employed by applicant, Fidelity MutuaJ Life Association of Philadelphia v. Ficklin et al., 20 Ins. Law Jour. 534 ; Numrich v. Supreme Lodge K. & L. of Honor, 18 New York Suppl. 582 ; Hig- gins V. Phoenix Mutual Co., 74 N. Y. 6, 9 ; Hutton V.Waterloo Co., 1 F. & F. 735 ; Everett v. Des- borough, 5 Bing. 503. Statements as to age have been held to be-^s®- material: ^tna Co. v. France, 91 U. S. 510; Swett V. Relief Society, 78 Me. 541. But by section 84 (1), infra, " if, the age is material to any contract within the intent of section 2, and such age is given erroneously in any statement or warranty made for purposes of the contract, such contract shall not be avoided by reason only of the age being other than as stated or warranted, if it shall appear that such statement or warranty was made in good faith and without any intention to de- ceive " ; but the amount payable under the contract is adjusted as provided in the said sec- tion 34. It is material that the applicant has had an J^J,^?^*!'^ application rejected by another office: London '''°"^' Assurance v. Mansel, L. R. 11 Ch. D. 863; Ameri- 244 Insurance Corporations Act. *-< it. f i c X o CO CP ^3*^2)^ ^^^^ Mutual Aid Society v. Brougan, 11 Ky. Law ~ Rep. 902. And " other insurance" was held to include insurance in aid and accident associations : McCollum V. N. Y. Mutual Co., 55 Hun. 103; see also, on truth of statements concerning applica- tions for other insurance. Continental Co. v. Cham- berlain, 132 U. 8. 307 ; Clapp v. Mass. Benefit As- sociation, 146 Mass. 519. InPiedritsky v. Supreme Lodge Knights of Honor, 43 North West Eep. 373, it was held that an indorsement of rejection on an application of the deceased to the Knights of Pythias was not evidence of the fact of rejection. Also, Edington v. iEtna Co., 77 N. Y. 564, 572 ; 100 N. Y. 536, where it was held that the medical examination was no part of the application. ?hi?or' ^^ i^ ordinarily not material that the relation- beneflciaryg|^-p ^^ ^^i^ bcneficiar}^ was misstated: Britton v. Royal Arcanum, 46 N. J. Eq. 102, 106 ; Mace v. Provident Life Insurance Association, 7 South- East Rep. 674. Occupa- tion. Use of intoxica- ting liquors. As to statements respecting occupation of the assured, see Kenyon v. Knights Templar Associa- tion, 122 N. Y. 247 ; Dwight v. Germania Co., 103 N. Y. 341, 349; McGurk v. Metropolitan Co., 56 Conn. 528; Grattan v. Metropolitan Co., 80 N. Y. 281, 92 N. Y. 274. ^Yhether or not the statement of the applicant that his habits are temperate is material depends on the circumstances of the case. On meaning of "temperate," and kindred expressions, see Thomson v. Weems, L. R. 9 App. Cases 571 ; Ky. Law held to :?iations : L03; see applica- '. Cham- Qefit As- 5iipreme ?st Eep. ■ejection lights of ejection. 34, 572 ; medical elation- itton V. Mace V. South- of the .ssocia- :o., 103 :o., 56 ) N. Y. )licant spends waning s, see 571; CufuUfion.i ill Policies. 245 Brockway v. Mutual Beneiit Co., 9 Fed. Rep. 249 ; ^^""^^"Ify Meacham v. N. Y. State Mutual, 120 X. Y. 287 ; Knickerbocker Co. v. Foley, 105 U. S. 850; Union Mutual Co. V. Keif, 8G Ohio State 597 ; South- conibe V. Merriman, C. & M. 280. On "so far intemperate as to impair health," see .Etna Co. v. Davey, 128 U. S. 789; Davey v. .Etna Co., 88 Fed. liep. G50; Odd Fellows v. Rohkopp, 94 Pa. St. 59 ; .Etna Co. v. Deming, 128 3Id. 884. AVhere the assured, in answer to a question, how family, many brothers he had, omitted all mention of half- brothers, it was held that it was properly left to the jury to say if the statement was untrue and if material : Bridgman v. The London Life, 44 Q. B. 580. In Mutual Aid Society v. White, 100 Pa. St. 12, it w^as held material misrepresentation that the applicant made untrue statement that he was " widower," in answer to question whether he was married. See also Jeffries v. Union Mutual Co., 1 Fed. Rep. 450. ^ (3) The question of materiality in any contract of insurance Materiality whatsoever shall be a question of fact for the jury, or for thecided. court if there be no jury; and no admission, term, condition, stipulation, warranty or proviso to the contrary contained in the application or proposal for insurance, or in the instrument of contract, or in any agreement or document relating thereto shall have any force or validity. The section declares the law as decided by the current decisions both in England and in Ontario: see Parsons v. Citizens, 48 U. C. R. 271 ; San:io v, Gore District, 2 S. C. R. 411; Klein ^. Union, 8 0. R. 234 at 256; Naughter v. Ontario Agricul* 240 Insurance CorporatioiiH Aci. s^sTsMi) ^^^^''^^' '^•^ U. C. \\. 121; Bridgman V. London Life, 44 U. C. H. 53(3; see also Taylor on Evidence, 58. P]ntry after Loss. ti c ' V- o £2 K. 8. O. 1887, c. 167, s. 114. ^ lusiaer's (4) After any loss or damage to insured property, the insur- eutry after ing corporation, called hereinafter the insurer, has by a duly accredited agent an immediate right of entry and access sufticient to survey and examine the property, and make an estimate of the loss or damage ; but the insurer is not entitled to the dis- position, control, occupation, or possession of the insured pro- perty, or of the remains or salvage thereof, unless the insurer undertakes reinstatement, or accepts abandonment of the property. Statutory condition 13, see Appendix A, pro- vides that " any person entitled to make a claim under this policy is to observe the following direc- tions : — ** (a) He is forthwith after loss to give notice in writing to the company." This notice to the company is to afford an opportunity to the insurer of inspecting the property; a license to enter was therefore implied: cf. Porter on Ins., 202, 226; Wightman v. Western F. & M. Ins. Co., 2 Bennett at p. 336, where the right was assumed to exist: New York Life Ins. Co. v. Delavan, 2 Bennett 20 ; Franklin Fire Ins. Co. v. Up de Graff, Sansum 833. So statutory condition 13 (d) provides that the claimant is "to exhibit for examination all that remains of the property which was covered by this policy." As " property " includes buildings and premises generally, the condition clearly implied a right of entry to examine and ascertain the extent of the loss and the particulars of salvage: cf. Statutory Con- dition 5, Appendix A, infra. Ion Life, 9110 e, 58. , the insur- by a duly 3S sufticient estimate of to the dis- isured pro- ,he insurer nt of the A, pro- a claim Qg direc- to give lotice to y to the ;ense to on Ins., ns. Co., issnmed a van, 2 Up de n 13 (d) ibit for y which )perty ' ' ly, the itry to OSS and Con- Entr// (ifttr Lo.ss. 2i7 Tlie statement of the hiw in Griswold, Fire seouon . 33 (4)- Ihiderwriters Text Book, loTo, that the insnrer ('oiitrol of iiisurod nropevty la III through its Jigents has a general supervisory interest over the renmants of property covered by ^" •^''•"""^•^ the policy until after inventory or appraisal, and that such authority should be exercised when necessary for its security or preservation from further damage, goes too far. Cf. also Bunyon on Fire Ins., 3rd ed. p. 53: — " When a lire occurs the insurers, it would seem, have a right to enter upon the premises for the purpose of ascertaining the damage, and, when it is necessary, to retain pos- session of them for a reasonable time, and a condi- tion to this effect will usually be found in the policy; but if they retain possession for an unrea- sonable time they will be liable to damages to the assured: Oldfield v. Price, 2 F. & F. 81; see Both V. Stephenson, C. P., 3 July, 18GG, Ins. Gazette, 1 Aug. 18G0. And thus in a case in the Lord Mayor's Court, Cumberland v. The Albert Insur- ance Co., Ins. Record, 11 May, 1866, damages were recovered on the ground that the insurers had kept possession for two months, entirely stop- ping the plaintiff's trade. The Judge and counsel seem to have thought that the insurers had no right to enter npon the premises. But in this they were in error. The right to enter would seem to follow from the nature of the contract, as well as from the commnnity of interest between the insurers and the assured, as from the right of rein- statement of the former. A forcible entry would not of course be justified, but the refusal to permit the entry of the insurers after a fire would be a 248 Insurance Curporationn Act. lUghta of insurer and as- sured. x: 33^(4)°° ^^^'y i^iporttint fact in any liti»,'ation which iiii^ht arise upon a chiini. If the agents of the oHice enter upon the premises they have no right to exchide the assured from access to the salvage. In a case at nini pruiH in 1870 the court ohserved that the officers ought to give notice of an exami- nation of the salvage so as to allow the parties interested (Masters v. Lefevre, C. P., 1 Fehruiiry, 1870), to he present." The cases, however, cited by Bunyon do not support the right of even tem- porary possession by the insuring company. The respective rights of the insurer and assured are by the new Act now for the first time definitely declared. After the loss the insurer has, by a duly accredited agent, an immediate right of entry and access sufficient to survey and examine the property, and make an estimate of the loss or damage. This is a general estimate ; and after the assured has separated the damaged from the un- damaged goods, the insurer is entitled to entry and access sufficient to make an appraisement or par- ticular estimate of the loss or damage, vide Infra. But the insurer is not entitled to the disposition, control, occupation or possession of the insured property, or of the salvage, unless the insurer undertakes reinstatement, see Stat. Cond. 18, or accepts abandonment of the property: see Stat. Cond. 5. It will be evidence of intention to rein- state, or to accept abandonment, when the insurer takes possession of the property or salvage. \Yhere the insurer accepts abandonment, he is liable as. for a constructive total loss. • Enti'/j (i/ter Lohh. •249 Section After any loss or iliiniaf,'t' to insureil property, it is the duty ^^* :!. of the assured when, an«l as soon as practicable to secure the 'ih"!,^,.,"' insured property from daniafje, or from further danm«,'e, and to ''"*^''" '"""• separate so far as reasonably may be, the danuiged from the undamaged property, and to notify the insurer when such separation has been made ; and thereupon the insurer shall be entitled to entry and access sutVicient to make an appraisement or particular estimate of the loss or damage. Statutory Conditions 13 (d) enacted that it was the duty of the assured " to separate as far as reasonably may be the dania«,'ed from the un- damaged goods, and to exhibit for examination all that remains of the property which was covered by the policy," Appendix A, infra. This obligation of the assured flows naturally from the principle of non-abandonment which was affirmed in the fifth statutory condition : — ''When property insured is only partially damaged, no abandonment of the same will be allowed unless by consent of the company or its agent." For abandonment may be by conduct as well as by formal notice, as in the case of an assured who does not intervene for the protection of his undamaged or partially damaged property. His duty as salvor does not first begin when he is making^out the proofs of loss required by the thirteenth statutory condition, but as soon after the loss as is practicable. The presenfi clause declares the law in this sense; so that it is now the clear duty of the assured, as soon as practicable, to secure the insured property from damage or further damage, and to separate, as far as reason- ably may be^ the damaged from the undamaged property. • . .;. 250 LiHfunnce Corj)oration>i Act. I Seotlons . _- Provided that at any tiino after the Iohs or damngo tlio rrovUo. inmircu' and the assured may under a teruj of the* contract of insurance or hy special a;,'reenient, make a joint survey, exami- nation, estimate, or appraisement of the loss or dam(iL,'e, in which case the insurer shall he deemed to have waived all ri<,'ht to make a separate survey, examination, estimate, or appraise- ment thereof. If the insurer and the assured have made a joint appraisement of the loss or damage the insurer lias lost his right of making a separate survey or appraisement thereof. C ' Li a-: o Krror iii a^e not to avoid coii- trnct ; but boHoflt to abate. 52 Vic. c. 32 <0), 8. Eituou IN Statement of Age. H4. (1) Where tlio age of a person is material to any con- tract within the nitent of section 2, and such age is given erroneously in any statement or warranty made for purposes of the contract, such contract shall not be avoided by reason only of the age being other than as stated or warranted, if it shall appear that such statement or warranty was made in good faith and without any intention U, o^ceive; but the person entitled to recover on such contract shall not be entitled to recover more than an amount which bears the same ratio to the sum that such person would otherwise be entitled to recover as the premium proper to the stated ago of such person bears to the premium proper to the actual age of such person, — the said stated age and the actual age being both taken as at the date of the contract. This section was first enacted of life insurance contracts only by 52 Yic- c. 32 (Ont.)s. 6:—" (1) Where a contract of life insurance or the applica- tion therefor contains, or the person entering or proposing to enter into it, makes, for the purpose of its being entered into, any statement or warranty as to the age of the person in respect of whose life iimgo tho )nlniet of 'y, cxami- llua^'e, ill 1 all riglit appraise- 3 a joint urer has rv(\y or I any con- s is given irposes of ason only if it shall ood faith .\ entitled ver more sum that r as the rs to the the said lie date of iurance "(1) ipplica- Iriiig or >urpose irranty )se life Error in Statement of Aijc. •251 the contract is made, such statement sliall not he ^Jf'f" avoided hy reason only of the age hcing greater ,7^ than stated or warranted, if it shall appear that such statement or warranty was made in good faitii and without any intention to deceive, hut the person entitled to recover on such contract shall not he entitled to recover more than an amount which bears the same proportion to the sum which such person would otherwise bo entitled to recover as to the premium proper to the stated age of such person bears to the premium proper to the actual age of such person, the said stated age and actual age being both taken as at the date of the con- tract." The provision is now extended to all contracts Sji'i.a'r of insurance where the age of a person is material tiou.'"' to the contract. Thus the age of the person ^vhose fidelity is to be insured is usually demanded and may be material; or in accident insurance con- tracts, the age may be found to be material to the risk. The error in statement of age nnist appear to have been made in good faith and without any intention to deceive. For the purposes of the cal- culation the premium taken is not the particular office premium, but the net annual premium as shown in the Hm. Table of the Institute of Actu- aries of Great Britain, interest being taken at 4 J per cent, per annum. Thus, when the true age was 40, but the stated age was 35, the amount recoverable on an ordinary life policy of ^1,000, payable at death would be computed as follows : — The net annual premium to secure ^1,000 payable .J 3 252 Insurance Corporations Act. Section 34 (1). Erroneous Htatenieut of age ill claim. at death is, at age 35, $18.71; while at age 40, the net annual premium is $22.47. The amount recoverable is, therefore, §832.66. Before the passing of the statute 52 Yic. c. 32, a misrepresentation of the age of the assured, although unintentional would, if material to the particular contract, have voided the contract: Attorney-General v. Eay, L. E. 9 Ch. App. 397. Where the plaintiff, in her claim, stated the age of deceased at two years more than did his own application for insurance, she was allowed to explain it by her own evidence, and it was held that the defendants were bound to prove a mis- representation on the part of the deceased : Hayes V. Union Mutual Life Ass. Co., 44 U. C. K. 360. , ,.,.-■ . . 1 ..... Provided that in no case shall the amount receivable exceed the amount stated or indicated in the contract. The amount stated in the policy is in all cases the maximum recoverable. (2) For purposes of the next preceding sub-section the word " premium " shall mean the net annual premium as shewn in ^. / „ y ,, the Hm. table of the Institnte of Actuaries of Great Britain, ' / ' the rate of mterest being taken at 4^ per cent, per annum. Compare 52 Vic. c. 32 (Ont.), s. 3, supra. t b U-J 22 ■M« "-~> Proviso. ' Premium Error in Statement of Age, 253 age 40, amount c. c. 32, assured, [ to the ontract : I. 897. ited the . his own Dwed to vas held e a mis- : Hayes El. 360. ible exceed all cases II the word shewn in It Britain, mm. -a. HM. TABLE OF THE INSTITUTE OF ACTUARIES OF GREAT BRITAIN.— INTEREST AT 4^ PER CENT Age. 10 1 2 S 4 15 C 7 8 9 •20 1 2 8 4 25 C 7 8 9 30 1 2 3 4 35 6 7 8 9 40 1 2 3 4 45 6 7 8 9 50 Values of Aiiiinities, and Single and Annual Premiums for Assurance of a Unit. Present value of an-! NUITY OF 1 TO BE. Present value of an Annu.\l premium to received for I'N- A8Sur.\nce of 1 SECURE 1 PAYABLE EXPIUED PORTION payable at death. AT DEATH. OF LIFE. 18.459 2 .l()-_>042 .008327 18.384 9 .1(55-243 .008524 18.289 2 .169366 .008780 18.175 8 .174246 .009087 18.049 3 .179695 .009433 17.913 7 .185533 .009809 17.773 8 .191.561 .010204 17.634 1 .197575 .010603 17.499 4 .203374 .010994 17.375 .208734 .011360 17.261 7 .213609 .011697 17.153 4 .218274 .012024 ■- 17.046 7 .222870 .012350 16.936 6 .227613 .012690 16.819 2 .232665 .013057 16.693 6 .238076 .013456 16.561 2 .243776 .013881 16.422 9 .249730 .014333 16.281 3 .255830 .014804 16.136 8 .262050 .015292 i ■ 15.989 3 .268404 .015798 15.838 8 .274882 .016324 15.683 7 .281564 .016877 15.523 4 .288467 .017458 15.357 5 .295612 .018072 15.186 2 .302988 .018719 15.010 .310573 .019399 14.829 7 .318340 .020110 14.645 .326290 .020856 14 455 2 .334463 .021641 14.259 6 .342890 .022470 14.056 4 .351638 .023355 13.844 6 .360758 .024302 13.624 6 .3702.32 .02.5316 13.397 9 .379993 .026392 13.164 5 .390044 .027537 12 926 7 .400284 .028742 12 685 6 .410671 .030008 12.440 5 .421221 .031340 12.190 8 .431973 .032748 11 936 3 .442934 .034240 i -i-' 254 Insiira)ice Corporations Act. HM. TABLE. 4i~CoNTiNCED. OQ Present value of an- nuity OF 1 TO BE Present value of an Annual premium to A(1E. RECEIVED FOR UN- ASSURANCE OF 1 SECURE 1 PAYABLE EXl'IREIJ rOUTION P.UABLEAT DEATH. AT DEATH. OF LIFE. 1 11.H75 6 .4.34159 .035829 2 11.407 9 .465(590 .037532 H 11.134 2 .477476 .039350 4 10.8 15 7 .489466 .041285 55 10..572 6 .501658 .043349 ») 10.285 8 .514010 .045545 7 9.995 5 .526509 .047884 H 9.702 ..539146 .050378 !) 9.405 3 .551926 .053043 ()0 9.10(3 8 .5(34777 .055881 1 8.807 7 .577658 .058898 2 8.508 7 .590534 .062105 3 8.210 G .603370 .065508 4 7.914 3 .616130 .069117 (35 7.r)18 7 .628859 .072964 6 7.323 .(541591 .07708(5 7 7.026 4 .654367 .081527 8 6.728 1 .6(37211 .086336 9 6.426 2 .680212 .091596 70 6.123 8 .693231 .097311 1 5.823 8 .706151 .103484 2 5 530 3 .718792 .110071 3 5.247 3 .730978 .117007 4 4.978 8 .742538 .124195 75 4.725 .753470 .131611 6 4.470 2 .764181 .139545 7 4.234 5 .774592 .147979 8 3.998 3 .784764 .157007 9 3.765 3 .794794 .166787 80 3.538 7 .804554 .177266 1 3.323 3 .813829 .188243 2 3.124 7 .8-J2381 ' .199380 3 2.940 5 .830312 .210711 4 2.774 3 .837469 .221886 85 2.618 9 -.8441(33 .233266 (5 2.463 7 .850844 .245645 7 2.299 3 .857925 .260034 8 2.123 4 .865411 .276892 9 1 919 8 .874266 .299427 90 1.686 4 .884318 .329188 1 1.445 7 .894681 .365817 2 1.198 2 .905337 .411847 3 .930 3 .916874 .474991 4 .664 .920337 .557885 95 .408 4 .939340 .666964 6 .175 8 .«49333 .807418 7 .956938 .95(3938 Error in Statement of Age. 255 (3) If the error in age includes a fractional part of a year Section exceeding a half year, such fractional part shall be computed - as a whole year, but if the fractional part does not exceed a ^art of "a ^ half year it shall be wholly disregarded in the computation. year. Compare 52 Vic. c. 82 (Ont.), s. 6 (2). The practice of American companies is to take the nearest birthday, while it is usual for Canadian companies to compute the age as on the next (sub- sequent) birthday. Hereafter, a fractional part of a year exceeding a half-year is to be computed as a whole year, while any lesser fractional part is not regarded at all in the computation. (4) When, by the terms and for the purposes of the contract, the age of the person in respect of whose age the contract is made is taken to be greater than the actual age of such person, the number of years added to such age shall, for purposes of the calculation provided for by this section, be added to the true age of such person. Compare 52 Vic. c. 82 (Ont.), s. G (8). . To find the ratio the number of added years is likewise added to the true a^e. Wliovo a^c is takeu an greater than kuowu ago > t < t J 17726(> 1188243 1199380 pi0711 k2188<> 233266 J45615 i(50034 J7C892 299127 J29188 i()58l7 H1847 1711191 »57885 iiOBOCl ?07418 l)5tj93a (5) Where any error is discovered in respect of any contract of life insurance, or of the premium or premiums paid or to be paid upon such contract, nothing herein contained shall be construed in any way to prevent at any time before the maturity of the contract an adjustment between the insurer and the assured of the amount or amounts payable in respect of any insurance effected, or of the premium or premiums paid or to be paid. After the maturity of the claim, the amount recoverable i& ascertained in the manner provided in sub-section 1 of this section. After adjustment Error may l)o adjust- ed betweeu insured andassur-, ed at auy time before maturity of contract 256 Insurance Corporations Act. 84tS°38 ^^ mutual agreement the amount agreed upon _W^W^is conclusive of the amount of the company's liability under the contract. Similarly a compro- mise agreed on with an adjuster, who comes pursuant to a notice from the company that he will come and close the matter, in the absence of knowledge as to limitation of his authority, is binding upon the company : Millers' National Ins. Co. V. Kinneard, 20 Ins. Law Journal, 223. H %, c i- O Interpreta- tion. Insurable Insurable Interest. Si5. (1) In this section the word " life " inchides accident, sickness, infirmity, casualty and disability ; and the expression "life insurance" includes any contract of insurance having for its subject the life, health, safety, or physical or mental con- dition of a person. Compare section 2 (12) a, sujyra. (2) In order to render valid any contract of life insurance, nec^e'stary ^^^^ beneficiary under the contract, being other than the assured conti^ct!^*^ or the parent or bona fide assignee or nominee of the assured, or a person entitled under the will of the assured or by operation of law, must have had at the date of the contract a pecuniary interest in the duration of the life or other subject insured. The Act. 14 Geo. III. c. 48 (Imp.), is law in Ontario: Dowker v. Canada Life, 24 U. C. E. 591; Craigen v. North American Life, 13 S. C. E. 278. It is by that statute enacted as follows: — *' Section 1. No insurance shall be made by any person or persons, bodies politic or corporate, on the life or lives of any person or persons, or on any other event or events whatsoever," see Pater- son V. Powell, 9 Bing. 320; Eoebuckv. Hamilton, 14 Geo. illl, c. 38. id upon mpany's compro- comes t he will jence of ority, is Diiai Ins. ;3. s accident, expression having for lental con- insurance, the assured assured, or y operation a pecuniary isured. s law in .E. 591; E. 273. Le by any lorate, on ]is, or on fe Pater- 'amilton, Inaiirahh' Interest. 261 Cowp. 737; also Good v. Elliott, S T. K. 093; section ^ ' ' '35 (2). Morgan v. Pebrer, 3 Bing. X. C. 457; Cook v. Field, 15 Q. B. 400), " wherein the person or per- sons for whose use, benelit, or on whose account such poHcy or policies shall be made, shall have no interest, or by way of gaming or wagering; and every assurance, made contrary to the true intent and meaning hereof, shail be null and void to all intents and purposes whatsoever. " Section 2. It shall not be lawful to make any policy or policies on the life or lives of any person or persons, or other event or events, without inserting in such policy or policies the person or persons name or names interested therein, or for whose use, benefit, or on whose account such policy is so made or miderwrote: Hodson v. The Observer Life A. Co., 8 E. lS: B. 40; Evans v. Bignold, L. E. 4 Q. B. 022; see Collett v. Mor- rison, Hare 102. " Section 3. In all cases where the insured hath interest in such life or lives, event or events, no greater sum shall be recovered or received from the insurer or insurers than the amount or value of the interest of the insured on such life or lives, or other event or events: " Hebdon v. West. 3 B. & S. 579. The Act does not void generallv contracts made EHect of '^ " statute, contrary thereto, but only as between the insurers and the assured. It is a defence to the insurers only, if they choose to avail themselves of it: Worthington v. Curtis, L. E. 1 Ch. D. 419. Nor H.I.O.A. 17 258 Insurance Corporations Act. Section 3S (2). C ' ill O CO Who have insurable interests. Trustees. Creditors. does the act prohibit individuals from ettecting insurances upon their own lives, provided that be done bona fide; but it is an evasion of the statute to procure another, in whose life he had no interest, to insure it with his nioney and for his benefit, though ostensibly for the advantage of the party insuring: Wainwright v. Bland, 1 M. & W. 82; Shilling V. The Accidental Death Insurance Co., 2 H. & N. 42. The third section of the statute refers in time to the effecting of the policy; the assuied is therefore entitled to recover the value of his interest at that time not exceeding the amount indicated in the policy, notwithstanding am' sub- sequent diminution or extinction of that interest : Dalby V. India and London Life Ass. Co., 15 C. B. 365; Law v. The London Indisputable L. I. Co., 1 K. ik J. 223. It is not necessary that the assignee of a life policy should have any interest or have paid any consideration for the assignment ; for he stands upon the rights of the party who effected the insurance, and the statute of 14 Geo. III. only applies to the original parties, not to assignees: Ashley v. Ashley, 3 Sim. 149; see also Cook V. Black, 1 Hare 390. A trustee may insure in respect of the interest of which he is trustee: Tidswell v. Ankerstein, Peake, 151. It seems one person may insure the life of another as trustee for him : Collett v. Mor- rison, 9 Hare, 162. A creditor lias an insurable interest in the life of his debtor: Anderson v. Edie, Park, 640; Bruce v. Garden, L. K. 5 Ch. 33, but not if the debt be an illegal one: DwTer v. Edie, Insurable Interest. 259 'iiecting that be statute nterest, benefit, le party W. 82; nee Co., statute icy; the value of ! amount any sub- I' interest : 15C.B. J. I. Co., hat the interest ^nnient ; rtv who of 14 ties, not 49; see interest jverstein, )Ure the IV. Mor- hsurable IV. Edie, 33, but '. Edie, Park, 639. An employer has an insurable interest section 35(2). in the life of his servant, and vice versa: Hebdon Employer' V. West, 3 B. & S. 579. In general, any one who has a pecuniary claim against another. Worthing- ^®^®"'^''"*- ton V. Curtis, L. R. 1 Ch. D. 419, has an insurable interest in the life of the latter. A woman engaged to marry the assured held to be a "depen- dent," in, Parke v. Welch, 33 111. App. 188; but see 53 Vic. c. 39, s. 3, Appendix A, infra. A father F«'t>^er. has not such an interest in his son's life as would entitle him to insure it : Worthington v. Curtis, L. R. 1 Ch. D. 419; Halford v. Kymer, 10 B. & C. 724. On the ground of the right a father has to the earnings of his minor child it has been held that he has an insurable interest, in Grattan v. National Co., 15 Hun. 74; Loomis v. Eagle Co., 6 Gray (Mass.) 397; Mitchell v. Union Co. 45 Me. 104, where son was also debtor. It is now provided, sub-section 6 of this section, that in respect of insurances heretofore or hereafter effected on the lives of persons under twenty-one years of age, where such insurance has been effected by a parent upon the life of his child, such insurance shall not be invalid by reason only of the parent's want of pecuniary interest in the life of the child. Where the contract was for the benefit of a sister of the assured the relationship was held sufficient to divest the transaction of the semblance of aReiation- wagering contract: Aetna Co. v. France, 94 U. S. 561. So of a contract for the benefit of a grand- ^landson son: Elkhart Mutual Assoc, v. Houghton, 103 Md. 286. But in Barton v. Connecticut Mutual Ins. Co., 19 Ins. Law Jour, 57, it was held that the 2()() In.su rfnicf ('orjiorafions Act. C ' 3Z CO Section 38 i'i). (ll'lUlll- diiUKlitcr 8ou-iu-lfiw Husband. Wife. Other relation- ships. mere relationship will not give a granil(lau«>htei' an insurable interest in the lite of her grandfather. Neither has a son-in-law, by reason of his relation- ship, an insurable interest in his mother-in-law, nor does he acquire an interest as creditor because she is dependent upon him for support : Stanbaugh V. Blake, 19 Ins. L. Jour. 478. Mere relationship, apart from pecuniary interest, is held insutiicient to establish an insurable interest, in the following (;ases: Guardian Mutual Co. v. Hogan, (SO 111. o.5; Charter Oak Co. v. Brant, 47 Mo. 419; 8inglet(jn V. St. Louis Mutupl, ()6 Mo. (38; Lewis v. Pluenix Mutual, 89 Conn. 100; Mitchell v. Union Co., 4o Me. 104. The rule, however, seems to be estab- lished that when the relationship is of such a char- acter as to be presumptive or conclusive evidence of a pecuniary interest, it is presumptively or con- clusively, as the case may be, evidence of the existence of an insurable interest : Cooke on Life Insurance, !^ 01. Thus the relationship of husband and wife carries with it conclusive evidence of the wife's pecuniary interest in her husband's life, he being under an obligation to support her. A brocher has been held to presumptively have an interest in his brother's life, Lewis v. Phaniix Mutual, 89 Conn. 100, wher3 the presumption was rebutted by proof that there w^as, in fact, no pecu- niciry interest. So also has a husband in his wife's life: Currier v. Continental Co. 57 Vt. 496. There are again relationships that are not even presumptive evidence of interest. Thus a nephew has been held to have no such interest in the life of his aunt: Corson's Appeal, 113 Pa. St. 438; nor lnsiir<(ijh' Interest. 2()1 m\ uncle in that of his nephew: Sin^^leton \. St. ^®i'"°'^ Louis Mutual, (Hi Mo. ()8; norana(hilt son in that of his father: Guardian Mutual Co. \'. Hogan, SO 111. >J5; nor a step-son in that of his step-father: U. B. Mutual Aid Assoc, v. McDonald, 12'2 Pa. St. 824; nor a daughter in that of her mother: Continental Co. v. Volger, 80 Ind. 572. It is clear law, however, that any one who takes an insurance upon his life, may make the policy payable to any person whom he may name in the policy, and that such person need have no interest in the life insured : North American Life v. Craigen, 18 S. C. R. 278; Olmsted v. Keyes, 85 N. Y. 598 ; Mallory v. Travellers' Co., 47 N.' Y. 52 ; Campbell v. New England Mutual C j., VfS Mass. 881 ; Scott V. Dickson, 108 Pa. St. 6; Bloomington ]\Iutual Asscciation v. Blue, 120 111. 121 ; Lemon v. Phcenix Mutual, 88 Conn. 294 ; Goldbaum v. Blum, 15 South West Rep. r.04. But the law will not allow the provisioiifi of the statute to be evaded by an insurance being nominally effected by a person on his own life, but really for another person who pays the premiums and to who^n the I'leuuam policy is assigned, or who is named as the bene- ^jW^^j^^'j^'g liciary : Knights & Ladies of Honor v. Burke, 20^""'^^''- Ins. L. Jour. 1051. The mere circumstance that some other party paid the premiums is not j^^^r se sufficient evidence that the insurance was not for the benefit of the person in whose name it was effected : Yezina v. New Y^ork Life, 5 S. C. R. 30. In Browai v. Freeman, it was doubted whether |'f!fj^gy the statute 14 Geo. HI. c. 48, prohibiting iuour- '"'"''''' 262 Insurance Corponitions Act. C ' 3: o -J CO 'sVlS? ^^^ce by persons having no interest, applies to benefit insurance societies constituted under the Imperial Friendly Societies Act. But the benefits of such societies are founded on a system of voluntary contributions by members, and not on contractual payments : 38 and 39 Vic. e. 60 (Imp.), s. 8 ; while society insurance under the meaning of this Act is matter of contract. In Vivar v. Supreme Lodge K. of P., (N. J. S. C. 1890), 20 Atl. liep. 36, it was held that when a person effects an insurance on his own life, and in thp policy designates another person as the payee of the sum insured, the latter may maintain an action on the policy without showing an insurable interest. But where the beneficiary, not having an insurable interest, paid the dues for the assured \/ithout the knowledge of the society, it was held that the beneficiary could not recover the benefit nor the dues he had paid : Knights and Ladies of Honor v. Burke, 20 Ins. L. Jour. 1051 ; see also, Schonfield, et al. v. Turner, 12 South West Rep. 626 ; Whitmore, et al. v. Supreme Lodge K. and L. of Honor, 13 South West. Rep. 495. Where the beneficiary was the affianced wife, and the member died before marriage, it was held that the benefit was payable to the member's next of kin : Palmer v. Welsh, 23 North West. Rep. 412; see also section 37 (1) infra. But one who has an insurable interest in the life of another, and has taken out a policy thereon, may assign such policy to one who, has no such insurable interest : Craigen V. N. A. Life (1886), 13 S. C. R. 278 ; Souder v. Home Friendly Society of Baltimore, 20 Atl. Rep. Innnnihle Interest. 2iSS 1:J7 ; Ashley v. Ashley, 8 Sim. 14U ; iiiul other J?<=i;°° cases cited, supra. The present Act declares the law to he that to ■(■;.';'«•■ '•''■' support any contract of life insurance the hene- ticiary, heing other than the assured, or the parent, or bona fide assi<(nee or nominee of the assured, or a person entitled under the will of the assured or hy operation of law, nuist have had at the date of the contract a pecuniary interest in the duration of the life or other suhject insured. A special exception is made in certain insurances on liv^^s of minors : suh-section G of this section. For the purposes of this section "life" expressly includes accident: cf. Schilling v. Accidental, 1 F. & F. 116, 2 H. & N. 48; sickness, inhrmity, casualty and disability; and "life insurance" in- cludes any contract of insurance having for its subject the life, health, safety, or physical or mental condition of a person : see section 1, snpra. ■1 (8) No corporation shall insure, or pay on the death of asimis child under 10 years of age, any sum of money which added to at ages less any sum payable on the death of such child by any other insur- ing corporation exceeds the following amounts respectively, that is to say : — If any such child dies under the age of 2 years $ 25 If any such child dies under the age of 3 years 30 If any such child dies under the age of 4 years 35 If any such child dies under the age of 5 years -40 If any such child dies under the age of 6 years 83 If any such child dies under the age of 7 years 92 If any such child dies under the age of 8 years 110 If any such child dies under the age of 9 years 129 If any such child dies under the age of 10 years 147 •2()4 Insiii'diivr Corjiorrffions Acf. Section 38 (3). (4), Provino. l*rovi(k'(l that iiotliing in this section eontiiiiR'd shall apply to existinfj: insuraneos on thu hvus of chihhvn under ten years of age, or apply to insurance on the lives of chihh'en of any age where the person etfcctifig the insurance has a pecuniary interest in the life of the assured. Koad with sub-section (> of this section, the proviso takes out of the prohibition of 14 (leo. 111. c. 48 and validates existing' insurances on the lives of children, if etfected by a parent, althougli the amount exceeds the amount allowed by the scale, and although the parent has no pecuniary interest in the life insured. When the person efiectin<> the insurance has such a pecuniary interest, 14 (reo. III. c. 48, has no application. C ' \- o CO (4) Where the age of the assured is, at the date of such inauraucf contract, less than ten years, and the insuring corporation has 6XC6BB1V6. . knowingly, or witliout sufficient inquiry entered into any con- tract prohibited by the next preceding sub-section, the premiums paid thereunder shall be recoverable from the corporation by the person or persons paying the same, together with legal interest thereon. This sub-section takes the case out of the former rule that if an illegal insurance be effected, the parties being i)i jyari delicto the assured cannot in the event of loss recover the insurance money, nor can he recover the premiums paid : Andree v. Fletcher, 8 T. R. 266 ; Cope v. Rowlands, 2 M. ik W. 149, 157; Allkins v. Jupe, L. R. 2 C. P. I). 375. The person paying the premiums can now recover them back with interest if the insurer entered into the prohibited contract knowingly or without snfticient inquiry. If, however, such person repre- T)i>i)n'(il)/f Interest. •ii;.i st'Uted the ii'-e tu tlic insurer us other than the f*'^"®? true w^o. in order to induce the contract, lie cannot recover the ))rennnins paid thorefoi'. ^ ( .')) Kvt'i'v corporation undertiikiii'' or i.'lVectiii<' InsiuancfH on siij'/i'i;'*. i •^ "^ "^ ^ to .» to tliL' lives of childron under ton year.s of a<'o hIuiU print sub-sec- 'MT'""" tions 1,2,.S, 4 and 5 of this section in conspicuous type upon '•'•'">■. •■»«- ev>'ry circular solicitinj,', and upon every application for, and every instrument of contract of, such insurance; and any con -^^^ /d-ztc* 670 travention of tliis suh-section shall he punishahle as for an ' otVence a^'ainst section 27, all the provisions of which section shall tMjually apply to an offence coniniitted a^^'uinst this suh- section. Compare sc^ction 2 (14), .sHpr((, us to assessment insurance. Section 27 enacts suh-section ('2)1 that an offender shall he liahle, upon suunnary conviction before any police ma«^istrate or Justice of the Peace having jurisdiction where the offence was connnitted, to a penalty not exceeding S200 and costs, and not less than $20 and costs; and in default of payment the offender shall he imprisoned with or without hard labour for a term not exceed- ing three months and not less than one month. On a second or any subsequent conviction he shall be imprisoned with hard labour for a term not exceeding twelve months and not less than three months. (G) In respect of insurances heretofore or hereafter effected ^.H^.'^ted'^by on the lives of persons under twenty-one years of age, where {,'po^'''jfjj3 such insurance has been effected by a parent upon the life of ^^'■y^^ p^ his child, such insurance shall not be deemed to be invalid by children . . . , Renemlly. reason only of the parent's want of pecuniary niterest in the life of the child. 260 Insurance Corporations Act. Section 36(6i-(7). H C ' U.l 2Z O ►J en In United States Courts, it has been held that a parent has an insurable interest in the life of his minor child. For while mere relationship is not^ perhaps, of itself sufficient to support a policy, yet^ if the beneficiary has any claim upon the assured for support, or otherwise, so that there is any present or prospective advantage of a pecuniary character likely to result to the beneficiary by the continuance of the life insured, the policy is upheld: Addison on Contracts, 8th Am. ed. II., App. p. 282; Mitchell v. Union Life Ins. Co., 45 Me. 184; Loomis v. Eagle Life Ins. Co., 6 Gray. (Mass.) 896; Cooke on Life Ins., § 61. But in Halford v. Kymer, 10 B. c^' C. 724, it was held, under the statute 14 Geo. III. c. 48, that the father had not an insurable interest in the life of a minor child: see, also, Worthington v. Curtis, L. R. 1 Ch. D. 419; Tucker v. Mutual Benefit Co., 50 Hnn. 60. Now the Act expressly declares that an insurance effected by a parent upon the life of his minor child shall not be deemed to be invalid by reason only of the parent's want of pecuniary interest in the life of the child. Minors of fifteen years and upwards competent to ettect insurance on their own lives and give discharge. (7) In respect of insurance heretofore or hereafter, by any person not of the full age of twenty-one years but of the age of fifteen years or upwards, effected upon his own hfe, for either his own benefit or for the benefit of his father, mother, brother or sister, the assured shall not, by reason only of his minority, be deemed incompetent to contract for such insurance or for the surrender of such insurance, or to give a valid discharge for any benefit accruing, or for money payable under the contract. Cf. R. S. 0. 1887, c. 172, s. 10 : Accident Insurance. 267 leld that fe of his p is not^ licy, yet, 1 assured y present jharacter itinuance idison on itchell V. V. Eagle I on Life I B. & C. 0. III. c. iterest in ington V. Mutual xpressly ent upon emed to want of 31', by any I the age of for either 31-, brother minority, or for the |ge for any tract. " A person under the age of 21 years, elected |Jf!}*°J| or admitted as a member of a society, or appointed to any office therein, shall be liable to the payment of fees and otherwise, under the rules of the society, as if he were of full age." So in Chicago Mutual Indemnity Assoc, v. Hunt, 127 111. 257, it was held that a minor is capable of becoming a member of a mutual benefit society. Accident Insurance. 30, In every contract of nisurance against accident, or^vhat casualty, or disability, total or partial, the event insured agauist includes. shall be deemed to include any bodily injury, either happening without the direct intent of the person injured, or happening as the indirect result of his mtentional act, such act not amounting to voluntary or negligent exposure to unnecessary danger ; and no term, condition, stipulation, warranty, or proviso of the contract varying the aforesaid obligation or liability of the corporation shall a? against the assured have any force or validity except in so far as such variation is by the Court or judge, before whom a question relating thereto is tried, held to be under the special circumstances of the case just and reason- able. This section defines what the event insured against in accident insurance shall be deemed to include. The courts have sometimes had to ignore the strict intent of conditions cutting down the obligation of the insurer in order to find for a meritorious claimant: see Winspear v. Accident Ins. Co., L. K. 6 Q. B. D. 42; Lawrence v. Accidental Co., L. E. 7 Q. B. D. 216. t I •2(38 Insurance Corjwnttions Act. Section 36. What accident iucliules. UJ a: I- o CO Whfit ficcident includes was considered by the court in Hntchraft's Executors v. Travellers Ins. Co. of Hartford, (Ky, C. of Appeals, 1888), 18 Ins. Law Join-. 315; 87 Ky. 800. " Accidents are of two kinds: First, those that befall a person withont any human agency, as the killing of a person by lightning. Here the elemental properties of lightning and its flash are not caused or controlled by human agency; but the fact that the person was struck by uninten- tionally placing himself within its range is as to him an accident. Second, those that are the result of human agenc3\ The latter are divided as follows: First, that which happens to a person b}^ his own agency, as if he is walking or running, and accidentally falls and hurts himself. Here he falls by reason of his agency in walking or running, but he did not intend to fall. He did not intend to fall. He did not foresee that he would fall in time to avoid it. The fall was therefore accidental. Second., that which befalls a person by the agency of another person, without the con- currence of the hitter's will ; as where one standing on a scaffold unintentionally lets a brick fall from his hand,, and it strikes a person below. Here the dropping of the brick, as it was not intended by the former, and was unforeseen by the latter, is in the broadest sense an accident. TJiird, that which a person intentionally does, whereby another is unintentionally injured; as where one inten- tionally fires a gun in the air, and accidentally shoots another person. Here the act of firing the Accident In.snra/tce. 2m gaii was intentional, but the shooting" of the per- section son was unintentional. Therefore, on the part ot the person iirin<;- the gun, the shooting' of the other would be accidental, thou^^h not in as broad a sense as in the former case, because some part of his act was intentional; but as to the person shot, it was by purely accidental means. Fourth, so also, as we think, if one person intentionally injures another, which was not the result of a rencontre or the misconduct of the latter, but was unforeseen by him, such injury as to the latter, although intentionally inflicted by the former, would be accidental. When the injury is n ^t the result of the misconduct or the participation of the injured party, but is unforeseen, it is as to him ac(;idental, although inflicted intentionally by the other party. In other words, we do not regard it as essential, in order to make out a case of injury by accidental means, so far as the injured party is concerned, that the party injuring him should noi have meant to do so; for, if the injured party had no agency in bringing the injury on himself, and to him it was unforeseen — a casualty — it seems clear that the fact that the deed was wilfully directed against him would not militate against the proposition that as to hinj the injury was brought on by ' accidental means.' " Accident then is a bodily injury happening without the direct intent of the person injured, even though it may be the indirect result of his intentional act : Mutual Accident Assoc, v. Barry, 181 U. S. 100, 1'21, a case of injury caused by 270 Insurance Corporations Act. c c ' o 03 ^*3?°" jumping from platform; North American Company V. Burroughs, 69 Pa. St. 43 ; see as to injury happen- ing while exercising with Indian clubs: McCarthy v. Travellers' Co., 8 Ins. L. Jour. 208; or while lifting burdens: Martin v. Travellers' Co., 1 F. & F. 505. An accidental bodily injury may include a series of events, some of which, if considered separately, would not be regarded as accidental bodily injuries : Mallory V. Travellers' Co., 47 N. Y. 52, 2 Ins. L. J. 839, where a wound did not of itself cause death, but did cause the assured to fall into the water where he was drowned. So also bodily disease ma}' be a link in the chain of circumstances, though such disease or condition of the body itself does not come within the definition of accident: Isitt v. Kailway Passenger Co., L. E. 22 Q. B.D. 504, in which "death from the effects of injury caused by accident," was held to include death from pneumonia caused by a cold that would not have happened but for the weakened condition of the assured produced by the accident ; so also of apoplexy resulting from injuries: National Benefit Assoc, v. Grauman, 107 Ind. 288; see also Snyder v. Travelers' Co., 7 Ins. L. Jour. 23; Sinclair v. Maritime Passengers' Co., 3 E. (fc B. 478, in which it was held that sunstroke was not an accident ; so also, Dozier v. Fidelity & Casualty Co., 20 Ins. L. Jour. 794. If the injury happens as the indirect result of the assured's intentional act, such act must not, under the above section, amount to voluntary or negligent exposure to unnecessary danger. The following have been held to be within the exception of voluntary expo- sure to danger: — Driving alone on dark night in a ' Exposure to dauRer. Accident Insurance. 271 /ompany happen- krthy v. le lifting F. 505. series of )arately, injuries : LIS. L. J. e death, le water sase may Ligh such loes not Isitt V. . 504, in used by ^umonia ned but odueed ng from an, 107 7 Ins. rs' Co., n stroke eUty & injury sured's e above i^posure ,x been expo- it in a network of railway tracks: Neill v. Travelers' Co., 12 secwon 8. C. K. ^y^:>\ crossing railway track on a dark rainy night : Travelers' Co. v. Jones, 80 Ga. 541 ; walking on railway track : Tuttle v. Travelers' Co., 134 Mass. 175; crossing railway track in front of approaching train: Cornish v. Accident Co., L. R. 23 Q. B. D. 453; being thrown while standing on steps of a railway car in motion: Box v. Railway Passenger Co., 5() Iowa, 664 • riding on the platform of a rail- way car, biit otherwise if impelled by nausea or overcome b}^ heat within the car : Marx v. Travelers' Ins. Co., 18 Ins. L. Jour. 727; injury by breaking of rope by which assured was escfiping from police officers : Shaffer v. Travelers' Ins. Co., 19 Ins. L. Jour. 285; see also Tucker v. Mutual Benefit Co., 50 Hun. 50; National Benefit Assoc. V. Jackson, 114 111. 533, a case of death in course of employment ; Mair v. Railway Passenger Co. , 37 L. T. R. 356; in Schneider v. Provident Co., 24 Wis. 28, exception was held not to include injury while getting on train in motion at a rate of speed less than that of a man walking; see also Provident Co. V. Martin, 32 Md. 310; but see Badenfield v. Massachusetts Mut. Ace. Ass., 20 Ins. L. J. 710; nor death from stepping from train through hole in bridge, Burkhard v. Travelers' Co., 102 Pa. St. 262 ; see Reynolds v. Equitable Accident Assoc, 17 N. Y. St. Rep. 337, as to injury from lifting or over-exertion ; Stone v. U. S. Casualty Co., 34 N. J. Law, 371, as to fall from building. Whether the assured voluntarily exposed himself to unneces- sary danger is a question for the jury: Cotten v. Casualty & Fidelity Co., 20 Ins, L. J. 8. In cases o 272 Iiifnirdiice Corpuyatio}^ Act. c ' X O 00 0» Section 36. Burden of proof and evidcncii. where the defence is set up that the uct of the assured amounted to vohnitary exposure to unnecessary danger the hurden of proof is on the insurer: Freeman v. Travelers' Co., 144 Mass. .572. Evidence of external injuries unsupported by proof how they were received is admissible in an action on an accident policy. The presumption is that such injuries are accidental and not intentionally inflicted by the insured or another. Hence proof of external injuries resulting in death establishes a [irhna facu' case of death from bo lily injm'y through accidental means, even though it be claimed that they were intentionally inflicted: Cronkhite v. Travelers ('o., 19 Ins. Law Jour. 267. In McCxlinchy v. Fidelity and Casualty, 18 Ins. Law Jour. 128, it was held that the dead body is sufficient visible injury. So where the assured died from rupture of a blood vessel due uo the physical and mental strain of a runaw^ay it was held that this was death from bodily injuiy hap- pening through accidental means. Where evidence as to suicide is conflicting and evenly balanced, death from accident wdll be presumed: Ingersoll v. Knights of Golden Eule, (U. 8. C. C), 21 Ins. Law Jour. (1891) 270. When the accident policy contains a condition vacating the contract in the event of "suicide" siuiply, the current of recent decisions Hows stongly towards limiting suicide to what is termed ^'^ sane suicide;" and some companies, therefv^re, add to "suicide" the words "sane or insane," wdth the view of excluding f om the risk self-destruction Accident Insurance. 273 t of the sure to is on the ass. o72. orted by le in an ^n is that Litionally ice proof Wishes a r injiu'Y jh it be inliicted : L.ur. 2(57. 18 Ins. i body is assured 1)0 the J it was iiy hap- vidence alanced^ ersoll V. ns. Law )ndition micide" stongly add to [ith the ^ruction committed under any circumstances whatsoever. See form of accident policy in Appendix C. i?ifra. Any variation of the obHgation of the insurer as defined by this section is void as against the assured except in so far as such variation is by the court or Judge, before whom a question relating thereto is tried, held to be under the circumstances of the case just and reasonable. So also in the case of policies of fire insurance issued with variations in the statutory conditions, the variations have validity so far as by the court or Judge, before whom a question is tried relating thereto, held to be just and reasonable to be exacted by the company: E. S. 0. c. 167, ss. 115, 117. In Parsons v. Queen Ins. Co., 2 O. R. 45, fol- lowed in Smith v. City of Lon,don Ins. Co., 11 O. R. 38, it w^as laid down generally that any vari- ation of the statutory conditions is iirivia facie unjust and unreasonable. In the latter case it was pointed out that " unjust and unreasonable " is not an equivalent expression to " more onerous and burthensome." A varied condition must not, how- ever, be more stringent than the statutory condi- tion: Ballagh v. Royal, 5 A. R. 87, in which case it was held that the reasonableness of a condition is to be tested \vith relation to the circumstances of each case at the time the policy is issued: see also, Butler v. Standard, 4 A. R. 391 ; Peoria Sugar Refining Co. v. Canada Fire & Marine Ins. Co., 12 A. R. 418. In May v. Standard, 5 A. R. 622, Patterson, J. A., laid dow^n that " conditions deal- ing with the same subjects as those given by the il.I.C.A. — 18 Section 3«. Just and reasonable. 274 Insurance Corporations Act. 86, t c ' CO 00 Sections statute and being variations of the statutory con- — ditions should be tried by the standard afforded by the statute and held not to be just and reasonable if they impose upon the insured terms more strin- gent or onerous or complicated than those attached by the statute to the same subject or incident." The Divisional Court may determine whether the condition was a just and reasonable one; it is not necessary that the question be first raised at the trial: Eeddick v. Saugeen Mutual Fire, 15 A. K. 363. How far the ratio decidendi in cases of varia- tion of the statutory conditions of fire policies will be applicable to terms and condition of acci- dent policies must hereafter be determined by the court. Insubance foe Benefit oj? Wives and Children. Wives' and Children's Act to apply. 51 V. c. 22, ss. 1 and 2. 3T. (1) The Act to secure to Wives and Children the benefit of Life Insurance shall apply to all lawful contracts of insurance made by friendly societies registered under this Act. In re O'Heron, 11 P. E. 422, it was held that the Act to secure to Wives and Children the benefit of Life Insurance did not apply to insurances in societies incorporated under The Benevolent So- cieties Act. The Statute 51 Vic. c. 22 in terms declared society insurance to be within the protec- tion of the Act ; and in Swift v. The Provincial Provident Institution, 17 A. E. 66, the decision in re O'Heron was overruled and society contracts, apart from the declaratory sections of 51 Vic. c. 22, were held to be within the intent of E. S. 0. 1887, c. 136. Now it is enacted that chapter 136 tory con- forded by easonable ore strin- attached dent." I whether one ; it is raised at Fire, 15 of varia- e poHcies 1 of acci- ed by the HILDREN. he benefit of insurance leld that ]ie benefit ances in lent So- in terms e protec- rovincial cision in )ntracts, ic. c. 22, m. S. 0. ter 136 Insurance for Wives and Children. 275 s. o. 1»I87. c. 172, s. 11. shall apply to all lawful contracts of insurance ^g'J.^IJ? made by registered friendly societies, and sections ' 1 and 2 of 51 Vic. c. 22 aie repealed; see the next sub-section. For the text of chapter 136, as amended by later statutes, see Appendix A. The question has arisen when the rules of the f^ society are inconsistent with the provisions of K. S. 0. 1887, c. 136, which should govern. For section 11 of The Benevolent Societies Act enncts that, ''when under the rules of a society, money becomes payable to or for the use or benefit of a member thereof, such money shall be free from all claims by the creditors of such member; and when, on the death of a member of a society, any sum of money becomes payable under the rules of the society, the same shall be paid by the treasurer or other officer of the society to the person or j^er- sons entitled imder the rules thereof^ or shall he applied by the society as may be provided by such rules; and such money shall be, to the extent of $2,000, free from all claims by the personal repre- sentatives or creditors of the deceased ; and in case any sum is paid in good faith to the person who appears to the treasurer, or other officer to be entitled to receive the same, or is applied in good faith for the purposes by the rules provided, no action shall be brought against the treasurer, or other officer, or the society in respect thereof; but nevertheless if it subsequently appears that the money has been paid to the wrong person, the person entitled thereto may subsequently recover the amount with interest from the person who has wrongfully received it." '•iA_.-=iijiS8 270 Insurance Corporations Act, I t C ' a: »~ o en 8j«won In Mingeaud v. Packer, et at., 21 0. K. 2 67, thd Mingeaiui ^eceased was insured in a society incorporated V. Packer, ^^^der TJic Benevoleyit Societies Act; his wife being dead, he caused the certificate to make the insur- ance money payable to his children. Upon the occasion of his marrying again a new certificate was issued at his request making the money payable to his second wife. On an interpleader issue, it was held by the Divisional Court reversing the de- cision of the trial Judge, that the effect of 51 Vic. c. 22 (Ont.) was to make the first certificate subject to the provisions of E. S. 0. 1887, c. 180, and that the rules of the society, in so far as they were inconsistent with such provisions, were modified and controlled by them; and that the certificate became a trust for the children under section 5 of chapter 130, and so long as the objects of the trust remained, ceased to be under the control of the deceased, except only in accordance with sections 5 and 0, which did not authorize him to revoke the certificate and replace it by the sub- sequent one. On appeal to the Court of Appeal, the Court was equally divided, and therefore the appeal was dismissed. Now, by the first sub-section of this section, chapter 136 is declared to apply to all lawful con- tracts of insurance of registered friendly societies ; and section 03 (2) expressly repeals all prior incon- sistent enactments. Discrimination. 'Ill 2 67, the rporated ife being ifc insur- pon the sate was ^yable ta e, it was the de- : 51 Vic. i subject and that ley were moditied 3rtificate ection 5 s of the control ice with ; him to ;he snb- e Court appeal section, ful con- (cieties ; r incon- (2) Sections 1 and 2 of the Act passed in the 51st year of Her Sectloni 37 (3), 38(1) 61 V. c. ■a. Majesty's reign and chaptered 22 are hereby repealed; alsoss. i .2 section 4 of the said Act is amended by striking out therein 'J.^^'* '^ thewords " of the said Act " wherever they occur and inserting ''""'"''i'*- ill lieu thereof the words ** of chapter 13G of the Kevised Statutes." Provided that nothing herein contained shall be construed Proviso, to exclude from the benefit of chapter 180 of the Revised Statutes any contract heretofore made by a friendly society. The followin«,^ Acts with respect to insurance for benefit of wives and children have been passed by the Legislature of Ontario: — 29 Vic. c. 17; 88 Vic. c. 21, ss. 1, 2; 35 Vic. c. 10; 80 Vic. c. 19; 40 Vic. c. 7; The Revised Statutes, 1887, c. 129; 41 Vic. c. 8; 44 Vic. c. 15; 47 Vic. c. 20; 48 Vic. c. 28; The Revised Statutes, 1887, c. 180; 51 Vic. €.22; 53 Vic. c. 39; The Insurance Corporations Act, 1893, s. 37. For the text of the law now in force, with annotations, see Appendix A. Discrimination between Assured. 38. (1) This section shall apply only to corporations AppUca- licensed by competent authority to undertake the contracts or s. m. any of the contracts enumerated in the sub-divisions lettered {(i) and (,^)<)<), for if the a^'f:;regate of the smns amount to 5!i>5,()00 the con- tracts are within the terms of the prohibition. So also a refund of part )f the premium would be such a discrimination between the assured; but not a honajide change in the table of rates, taking effect as to all policies of the same class issued after the adoption of the new tariff, A corporation which " rebates" in contravention of the section is liable tc have its registry sus- pended or cancelled. For upon proof that a corporation has wilfully, and after notice from the Registry Officer, contravened any of the provisions of this Act, the registry of the corporation may be suspended or cancelled. A contravention of this section is an offence : sub-section 13 of this section, infra. Every offence committed by a corporation is deemed to have been also committed by every officer of the corporation bound by virtue of his office or otherwise to fulfil any duty whereof such offence is a breach : section GO, infra. A discrimination which is within the intent of K'^°ct"»» the con- this sub-section is prohibited, and is made an*''"'^*' offence. A contract of insurance made in con- sideration of such an unlawful agreement is itself unlawful. Two consequences would seem to fol- low : — First, that the balance of premium, if any, is not recoverable from the assured by the com- pany ; second, that the contract is not enforceable i 280 Insurance Corporations Act, 38(2)-(3r ^y *^^ assured : Mellish, et al. v. The Shirley and Freemantle Board of Health, L. K. 16, Q. B. D. 446; followed m Whitley v. Bailey, L. R. 20, Q. B. D. 201 ; see also notes under section 8, supra. (3) No agent, sub-agent, broker, or other person acting for, e g c ' h- o Zj CD •>— CD Th« policy to set out theactuai or solicitinsT or procuring business for the corporation shall contract o r o r aud true considera- tion. And no rebate or make any contract of insurance or agreement as to any contract of insurance other than that which is expressed in the policy issued, or to be issued, nor in the case of any contract of insurance for $5,000 or upwards shall any corporation, agent, sub-agent, broker, or other person, pay or allow, or offer to pay rate to be or allow, directly or indirectly, as inducement to insurance any rebate of premium, or any special favour or advantage whatever other than is specified in the policy issued or to be issued. This sub-seution also came into force on and from the date of the passing of the Act, viz., the 14th April, 1892 : sub-section 14, infra. This sub-section enacts that whatever the contract may be the policy shall set out the actual cOxitract and consideration. It does not follow, however, if a rebate of premium has been allowed the assured, that the fact of setting it out in the policy legalizes the contract or condones the offence. It would seem rather to afford cogent evi- dence that the second sub-section of this section had been contravened. For that sub-section for- bids any discrimination to be made between the assured when of the same expectancy, and whose lives are otherwise equally eligible, and who are insured on the same plan. But see State v. Schwarzchild, Me. S. J. C. 1891, 20 Ins. L. J. 861. Discrimination. 2Hi irley and Q. B. D. . R. 20, sction 8, acting for, atioii shall Qy contract I the policy contract of .ion, agent, )ffer to pay infiurance advantage d or to be e on and viz., the ver the e actual follow, .s been g it out ines the ent evi- section on for- en the whose ho are late V. IJ. 8()1. (4) No person, not being the chief agent or the chief manag- ing officer of the corporation, shall, directly or indirectly, act as insurance agent, sub-agent or broker, or shall in such capacity under any other designation, solicit or procure any insurance, or application or proposal therefor, for any corporation, without having first obtained an agent's certificate of registry from the Provincial Department of Insurance as hereinafter provided. Section 38 (4). Duly per- sons hold- ing cer- tificates of agency to act as agents of life insur- ance coni- lianies. This sub-section takes effect on the 1st day of January, 1893: sub-section 14, //z/ra, and like the other provisions of this section, has no application to friendly societies: sub-section 1^ supra. By sub-section 1 of this section, " insurance " means any or all of the contracts enumerated in section 2 (12), sub-division (a) and(d). An uncertified agent is prohibited under penalty, as in sub-section 18 of this section provided, from soliciting insurance for any corporation. Whatever be the designation a person may work under, if in the capacity of agent he canvasses for insurance, he is within the prohi- bition. Remuneration would seem here to be the test of agency. The chief agent, i.e., the chief officer of the corporation in Ontario, if the princi- pal office or place of business of the corporation be not in Ontario, cf. section 2 (21), supra, or the chief managing officer of the corporation, is exempt from the requirement of registry. The corpora- tion is, also, prohibited from accepting from an unregistered agent or person any application or proposal for a policy of insurance other than a policy insuring such unregistered agent or person himself: sub-section 12 of this section, infra. \ to 282 Insurance Corporations Act. c ' 3: o oa Section 38 (6!-(7). Insurance Af^ents' Re^ifiter. Particular registered (5) The Registry Officer shall on or before the first day of July, 1892, cause to be opened and kept a register »vhich may be known as the Insurance Agents' Register, and therein he shall cause to be entered the name and address of every person whom ne shall find legally entitled to registry, together with the date of his finding ; also the term for which, in the absence of sus- pension, revocation or cancellation, the registry is to endure, • which term shall begin as from the date of the said finding, and shall end not later than the 30th June then next ensuing ; also, if, during the term, the registry has been suspended, or revived or revoked, or cancelled, the date and authority for such suspen- sion, revivor, revocation, or cancellation. Persons desiring to register on the Insurance iVgents' Register must make application for regis- try. (For form of Application see Appendix B, infra.) With his application, the applicant must produce a recommendation from the manager of a Canadian, or from the chief agent of a foreign insurance corporation legally authorized to transact insurance in Ontario : sub-section 6 of this section, infra. The form of application has indorsed upon it \\ form of recommendation ; see Appendix B, infra. The registry of an agent is revoked if the agent is convicted of an offence against this Act : sub-section 11 of this section, infra. Material on which register may l)e granted. (6) Every applicant, at his first application to be registered as an insurance agent, shall produce, to the satisfaction of the Registry Officer, a recommendation from the manager of a Canadian, or from the chief agent of a foreign insurance cor- poration legally authorized to transact business in Ontario ; but, having once been registered, the agent may transfer his services to another corporation without renewal of the certifi- cate then unexpired. Discrimination. 283 it day of I may be he shall )n whom the date e of sus- endure, ling, and ig ; also, I' revived I suspen- urance r regis- dix B, b must r of a foreign ansact ction, upon ix B, if the Act : If the agent, after initial registry, has not been gJ^J^Jg convicted of an offence against the Act, he obtains renewal of registry from year to year as of course. (7) To all persons registered as in sub-section 5, the Registry issue of Officer shall issue under his hand and the seal of his office a cortiflcate certificate of registry, or of renewed registry as the case may be, setting forth that it has been made to appear to him that the person is entitled to registry as an insurance agent and that he is accordingly registered for the term stated on the certificate. The certificate of registry so granted states the term for which the registry is to endure. If the registry is an initial one such term begins as from the date of the finding, and ends not later than the 30th June then next ensuing : sub-section 5 of this section, supra. Other certificates also expire on the 30th June in each year, but are re- newable from year to year. (8) The fee payable in respect of each certificate shall be as Fee. hereinafter prescribed. In all cases the fee is $2.00: section 62, sub- section 2 of Division I.; sub-sections 1 (h) and 2 (h) of Division II. ^ / 99 J I yrima facie evidence of the same legal • effect as the original in any court or elsewhere : sub- section 7. Discriminatton. 285 Section (11) If any registered agent is convicted of an offence against — ■ - ' ' this Act, it shall be the duty of the Registry Officer upon proof of offence of such conviction, to revoke or, pending an appeal from the as revoca^ conviction, to suspend, and if the conviction is affirmed on registry; appeal, then to revoke the registry of the person convicted ; and "0° three '^ the person so convicted shall not be entitled to apply for revivor ^®'"^'" of registry for the term of three years from the date of the conviction. The revocation of registry is in addition to the penalty enacted by sub- section 13 of this section, infra. Notice of revocation of registry is given in the Ontario Gazette by the Eegistry Officer: sub- section 9, supra. (12) No corporation, nor any officer, agent or employee of a corporation, nor any person canvassing or soliciting for inf ' '- ance shall accept from any unregistered agent or person any application or proposal for a policy of insurance other than a policy insuring such unregistered agent or person himself. While it is unlawful for others than persons holding certificates to act as agents of life insur- ance companies (sub-section 4, supra), it is equally unlawful for the company to accept proposals for insurance from uncertificated persons. An offence by a corporation is an offence by the officers thereof: section 60, infra. No iusur- u,nce ot}ier than per- sonal to be taken from i unregister- ed agents. • 2 I i (13) Any person who contravenes any of the provisions of Penalty this section shall be guilty of an often ce and, upon summary JtWcUon^ conviction thereof before any police magistrate or justice of the peace having jurisdiction where the oftence was committed, shall be liable as for an offence committed against section 27 of of 8^2710^ this Act, and all the provisions of the said 27th section shall '^^*^''*' equally apply in the case of an offence committed against this section. 280 Insurance Corporations Act. H UJ a: O 38a3)Ti4) "^^^ '"^ ^^^* offence the penalty enacted in section ■: 27, supra, is a fine not exceeding $200 and costs, and not less than $20 and costs; in default of payment the offender shall be imprisoned with or without hard labour for a term not exceeding three months and not less than one month. On a second or any subsequent conviction, the offender shall be imprisoned with hard labour for a term not exceed- ing twelve months, and not less than three months, section 27 (2) supra. Any person may be pro- secutor; ai>d one-half of any fine shall, when received, belong to Her Majesty for the use of the Province, and the other half shall belong to the prosecutor: section 27 (3), supra. Any person appealing from a conviction must, before being released from custody, give satisfactory security for the amount of the penalty, costs of conviction, and appeal: section 27 (4), supra. In any trial the burden of proving registry is on the person charged: section 27 (5), supra. Informations or complaints must be laid or made in writing within one year after the commission of the offence-: section 27 (6), supra. Proviso. Provided, that when, by virtue of reciprocal legislation any other Legislature in Canada accepts as valid within its jurisdic- tion the insurance agents' license of Ontario, the Registry Offi- cer shall have authority to indorse as valid for Ontario the like licenses of such Legislature. At present no such reciprocal legislation exists and agents who are within the intent of this sec- tion must make application for registry. Liahilltij of Members. 2S7 11 section id costs, Bfaiilt of with or ng three a second • shall be t exceed- months, be pro- 11, when se of the g to the r person re being security iviction, my trial person ions or within offence-: (14) This section shall take effect as to sub-sections 1, 2 and Sections 38 (14)39 a) ation any jurisdic- istry Offi- io the like 11 exists his sec- tiua. 3 on and from tlie passing thereof ; and as to sub-sections 4, 5, ^aeliw 6, 7, 8, 9, 10, 11, 12 and 13 on and from the 1st day of January. S' "' 1893. The Insurance Corporations Act, 1892, became law on the 14th day of April, 1892. Liability of Members of Society. SO. (1) The liabilities of any member of a friendly society under his contract shall at any date be limited to the assess- ments, fees and dues of which at that date notice has been actu- ally given by the society. In the case of Angus McDonald, receiver of the Mutual Benefit Asso. of Eochester v. Eoss Lewin, 29 Hun. 87, the Supreme Court of New York decided that the neglect of the defendant to pay an assessment for thirty days after notice thereof had ipso facto under the rules of the society deter- mined his membership; but that he was, neverthe- less, liable for certain assessments previously made, and also for all losses happening prior to the time when he ceased to be a member, though no assess- ment therefor had then been made : see, also, Korn V. Mutual Ass. Soc, 6 Craiich, 192; Iowa State Mutual Ins. Co. v. Prosser, 11 Iowa, 115. It is now enacted that the liabilities of a member of a friendly society under his contract are limited to the assessments, fees, and dues of which notice has at that date been actually given. The society's books are the evidence of member- ship, and for all whose names are standing thereon the certificate holder is entitled to the benefit of an assessment : Lender's Executors v. Ins. Co., 4 Limitation of uieui- ber's liability in friendly society. Books of society. 288 Insrcrance Corporations Act. Section 89(1). g C ' a: O 00 McCra. 149. So in an action against a member ' for assessments, where the defendant denies having the pohcy when called upon to produce it, the entries on the company's books, and the applica- tion for the policy, after the defendant's signature thereto hcs been verified, are competent evidence i/i- r nbership : New Era Life Asso. v. Rossiter, 1^ iviK Rep. 140. The Boa/d of Directors or its executive com- mittee are the proper parties to make an assess- ment : Dial V. Valley Mutual Life Ass., 18 1ns. Law Jour. 322. In New Era Life Assoc, v. Weigle, 19 Lis. Law Jour. 82, it was decided that the sol- vency of a company proposing to insure is a material consideration for the assured, and a mis- representation on that point by the agent which induces the applicant to insure in a worthless company, is a fraud which renders the contract voidable. Such fraud may be set up as a defence to an action to recover the amount of an assess- ment. And where the by-laws of a benevolent association stipulate that the members shall only be subject to one assessment for each death claim, and an assessment is made, but the claim is not paid in full, the members are not subject to a second assessment, whether the amount realized was sufficient or not: People ex reZ., Meyers v. Masonic Guild and Mutual Ben. Assoc, Court of xVppeals of N. Y. June 2, 1891, 20 Ins. Law Jour. 858. Liahilitf) of Members. 280 member s having it, the applica- gnature evidence lossiter, ^e com- L assess- 18 Ins. Weigle, the sol- re is a d a mis- t which orthless contract defence assess- levolent all only 1 claim, 1 is not 3t to a ealized ?3'ers V. oiirt of ^v Jour. (2) By paying or tendering payment of said assessments, fees and dues and giving notice thereupon of liis withdrawal by a writing delivered, or by registered letter to the society, any member shall become thereby released from all further liability under his contract. Under section 48, iitfrd, such notice of with- drawal may l)e given by letter, delivered at the chief otfice of the society in Ontario, or by regis- tered post letter addressed to the corporation, its manager, or agent, au such c' >ef ottice, or by written notice given in any otKer anner to an authorized agent of the corpor ti^ ii. In Borgraefe v. Knights of fisuc^r, 2() Mo. App. 218, it was laid down that 'v. entering into a voluntary association, the remaining in it and the performance of duties incumbent upon the mem- ber, by reason of his membership, are purely volun- tary. Consequently, the member may withdraw when he pleases without the consent of the asso- ciation, nor can it, after such withdrawal, impose any new obligation upon him. The by-laws of a life association provided that a member might at any time withdraw from the association by giving notice in writing of his intention and paying all assessments and dues to date ; in an action on a certificate after the death of the member, it was held that a notice of with- drawal by the deceased was a bar to the action, though the company had not assented or dissented thereto, nor had erased his name from the roll of membership : Cramer, et al. v. Masonic Life Assoc, of Western New York, 9 N. Y. Suppl. '^6^. H.l.C.A. — 19 Section 3» (2). 1. eane i-i uility. Whon witlidrawul coiiili'.ftt'. :ir^ 290 InHuranve Corpurdtions Act. Section 40(1). FoRi'EITrKK OF BKNKirrs. C ' a: o Notice AO. (1) No forfeiture or suspension shall be incurved l»y forfKituro any member of a friendly society, or person insured therein, by reason of any default in paying any contribution or assessment, except such as are payable at fixed dates, until after notice to the member stating the amount due by him, and apprising liim tliat in case of default of payment by him within a reasonable time, not being less than thirty days, and at a place, to be specified in such notice, his interest or benefit will be forfeited or suspended, and until after default has been made by him in paying his con- tribution or assessment in accordance with such notice. ' Notice j^o forfeiture is incurred 1)v a member of a friejully society by reason of any default in paying assessments, except such as are payable at fixed dates, until after notice to the member. The sum, payable on the monthly (or other recurring pay- day) may vary from month to month ; but the day of the month must be fixed, otherwise notice must be given as afterwards provided. It is law, apart from the statute, that, when the contract or by-laws of a society provide for notice, and such notice be not given, no tender of the amount of the assessment is necessary in order to prevent a forfeiture of membership. For the member is entitled to notice of an assessment before he can be declared in default for its non-payment: Hall V. Supreme Lodge K. of H., 24 Fed. Rep. 450 ; Covenant Mutual v. Spies, 114 111. 403. The giving of the notice in conformity with the laws of the society is a condition precedent : Farrie v. Supreme Council, 15 N. Y. St. Eep. 155; People ex rel. McQuien v. Theatrical Mechanical Asso. Forfeiture of Benefits. '2i)[ inctirvt'd l»y therein. l>y tissessnieiit, lotice to the ig liiiii tliiit (liable time, specified in suspended, mg his con- ce. iber of a in pacing at fixed rhe sum, png pay- the day ce must w, apart ract or lid such amount prevent mber is he can It: Hall p. 4o0 ; 13. The laws of 'arrie v. People 1 Asso. (IS(K)), H X. Y. Suppl. ()7H; Agnew v. A. 0. U. W., ^^^^^^^ 17 Mo. App. '254; (iellatly v. Mutual Ben. etc., N. W. Kep. ()*27. The proviso to this sui)-section enacts that in all cases notice may be etlectually given if a written or printed notice to the effect set out in the section is delivered or by registered post prepaid is sent to the memljer or left at his last known plai-e of abode by or on behalf of the society: see infra. The notice must state the amount due l)v the J-'orm ..n • contents member and must apprise him that in case of""^'*-" default by him within a reasonable time, not being less than thirty days, and at a place, to be speci- fied in such notice, his interest or benefit will be forfeited or suspended. In Siebert v. Chosen Friends, 23 Mo. App. 2G8, the general rule was laid down that where the special law of the notice prescribes the form and manner in which it is to be given, especially when a forfeiture may result, the party to be affected will not be bound by a notice given in any other form or manner. Thus a notice sent by a life insurance company to a policy holder stating when his next quarter's premium falls due and ohat members neglecting to pay when their premiums are due are carrying their own risk, does not comply with the provision of a statute (in this case, Laws, N. Y. 1877, c. 821) that a policy shall not be forfeited for the non-payment of the premium, unless a notice shall be mailed and addressed to the holder at his last known post- office address, informing him, among other things, that unless the premium shall be paid within thirty ii .if 9 2 I "Tnlmriltli Til 'w' 292 I HUH I'll nee Corporations Act. r c ' 3: 00 *^«*1?? keep the . x- tilicate in force though made by the beneficiary after the death of the member: Bankers & Merchants' Mut. Life Assoc, v. Stapp, 14 S. W. Rep. 1G8. i 294 Insurance Corporations Ad. s^tion ^o j.jso Shay v. National Benefit Society, 7 N. Y. Supp. 287. Waiver of forfeitni'e. o In Murray v. Home Benefit Life Assoc, 20 Ins. L. Jour. 905, it was held that notice of sub- sequent assessments constituted a waiver of the preceding forfeiture. So also, Shay v. National Benefit Society, 7 New York Suppl. 287. But see Mutual Protection Life Ins. Co. v. Lowry, 84 .Pa. St. ^48; Crawford Co. Mutual v. Cochran, 88 Pa. St. 280; Leonard v. Lebanon Co. Mutual, >3 W. Notes of Cases, 527. Demand for and retention of dues is a waiver of non-payment of previous dues, although the society may not have been aware of such previous non-payment, Tobin v. Western Mutual Aid Soc, 19 Ins. Law Jour. 849; Dial v. Valley Mutual Life Ass., 18 Ins. Law Jour. 822. The member's right to reinstatement is by the present section left undisturbed. See the second proviso to the sub-section, infra. In Chicago Life, etc. v. Warner, 80 111. 411, after the premium was past due, the company addressed a letter to the assured which contained the following: " The premium on your policy fell due June 28. If you wish to continue this policy in force, you will please remit above amount to this office by return mail and oblige." In an action on the policy, the Court held that this letter clearly showed that the company had not elected to forfeit the policy for failure to pay the premium when due, but that the right of forfeiture had been waived. So, also, a society is estopped from Forfeiture of Benefits. 295 claiiuing a forfeiture where it recognizes the eon- ^J5q°)° tinned existence of the certificate by notifying the member that "it is now Hable to immediate suspension, unless prompt attention l)e given to this notice; Ohnstead v. Farmers' Mut., etc., 50 Mich. 200. The promise of a society to receive past due assessments, if made without consideration and after the assessment is past due, is not binding on it. The promise to waive a right of forfeiture nuist either be supported by a vahiable considera- tion, or it must be made by or on behalf of the society, while the member still has time and oppor- tunity to make payment: Marvin v. Universal Life, etc., 85 N. Y. 278; Underwood v. Farmers, etc. Ins. Co., 57 N. Y. 500. The original contract is terminated by the non- payment of an assessment of which proper notice has been given to the member. Subsequent payment and receipt therefor constitutes a new contract whose terms bind the assured whether the condi- tions on the receipt are read or not. If such con- ditions are not complied with the original certifi- cate is not revived: Ronald v. Mutual Reserve Fund Life Asso., 18 Ins. Law^ Jour. 783. In Mandego v. Mutual Life Asso., 19 Ins. Law Jour. ()()0, a custom to accept drafts which, though dated prior to the day of payment, were received subsequently to such date, was held not to relieve against a forfeiture for non payment on the date when due. But in a case where a cheque was mailed within sufficient time to have reached the Payment after date. 29() Insurance Corporations Act. hi i C C • X V- o £2 ^40 m" coiiipHiiy when due, but was not received, it was left to the jury to find whether or not the contract was terminated; Kenyon v. Mutual Aid Assoc, 19 Ins. Law Jour. 1020. Teiidur assn red bv It is a general rule that for the purpose of avoiding penalties and forfeitures, or the loss of any right or privilege, that a tender of an assess- ment is the equivalent of payment. The tender need not be repeated. After the tender is made, the burden is on the society to demand the debt : People V. Mutual Life, 92 N. Y. 105; Hall v. Supreme Lodge K. of H., 24 Fed. Rep. 4o0. In the absence of notice of assessment no tender of the amount of such assessment is necessarv ii^ order to prevent a forfeiture: Covenant Benefit Asso. V. Spies, et al., 114 111. 4G7. The tender must be made to the officer autho- rized to receive payment. Thus, where the con- stitution of a society provided that the financial reporter of a subordinate lodge shall receive all money due the lodge, and shall give a bond for the discharge of his duties, and authorized no other person to receive, or decline, payment of assess- ments, and the notice of assessment stated that assessments are to be paid to the financial reporter only, a tender of payment to the secretary, an officer not under bond, and his refusal to accept it on the ground that the member was suspended, did not bind the society, although it was custo- mary for the secretary and other officers to receive payment of assessments : Lazensky v. Supreme Lodge K. of H., 3 N. Y. Suppl. 52. Payment, Forfeiture of Benefits. '1\)1 i, it was contract ssoc, 19 rpose of ( loss of L assess- ^ tender s made, lie debt: Hall V. too. In ^nder of ssary iii Benefit autho- le con- nancial ive all for the 3 other assess- ed that eporter try, an cept it lended, cnsto- eceive prenie 'ment, if made to an officer authorized to receive, may be section T • 1 • 1 1 -I ' ./ 40(1). made either in the lodge or on the street, any custom and usage to the contrary notwithstanding : Manson v. Grand Lodge, etc., 1() X. W. Kep. 395. If an expelled member, pending an appeal or J^:^i;j'J|*/jj|| legal proceedings for reinstatement, regularly ten- ^'len/u.r. ders his dues and assessments until his death, his beneliciaiy, on a reversal of the judgment of the society tribunal, or upon a reinstatement by tlu' court, will be entitled to the benefit : Marck \ . Supreme Lodge, etc., 29 Fed. Kep. 89(). So also, in Knights of Honor v. AYickser, 12 S. E. Rep. 175, where the suspension was illegal, it was held that the refusal of the society to credit the assured witli assessments paid thereafter, or to give to the proper officers the recpiired notice of his death, did not prejudice the right of his beneficiaries under the certificate to recover thereon. In another case it w^as held that a member actually suspended by the action of his lodge is not subject to assessment until his suspension is revei'sed, when he becomes bound to pay all assessments levied during his suspension : Yivar v. Supreme Lodge K. of P. (1S9;)), 20 Atl. Eep. 'MS. If, however, the dues or assessments are pay- able at a certain fixed time, it would be the safe course for a member seeking to rexerse a judgment of expulsion, or to be restored to membership, to tender the dues and assessments : cf. Nil^lack on Mut. Ben. Societies, § 805. Under the present section, if the assessments are not payable at fixed dates, notice is a condition precedent to forfeiture. > < 3 298 lusurance Corporatinn^, Act. Section 40 1>. P I t C ' h- o 00 on USllOllKlOll lod^e. assesfiiieiit Where the by-hi \'s o: ww ordy: provided that a default in making pavmeut of assessments during ilhiess would not work a forfeiture, the defendants were not allowed to forfeit a certificate for non- payment of assessments during illness: Grand Lodge A. 0. U. W. v. Brand (181)0), 4() X. W. Kep. The relations which sab )r.liQate lodges Ijear to the supreme lodge and to the members of the society are determined by the constitution and by- laws of the society. The right of the inembers when the lodge is delin(juent are governed by the laws of the society, but such laws av*' construed liberally in favour of the rights of the members : Supreme Lodge, etc. v. Abbott, 82 Ind. 1. When it appears tliat the default of the members is due to the default of the officers of the subordinate lodiJfe, wdierebv the uiembers were not notified of an assessment, tV; - su "'er of the supre'iie body sus- pending the subo; liiiate lodge on the ground that the members stood suspended because of their failure to pay such assessment was held to be void: Crowley v. Supreme Council C. B. L. (1890), 10 N. Y. Suppl. 248. Assessments are valid only when made in strict conformity with the authority contained in the charter and by-laws of the society for the purposes named therein : Agnew v. A. 0. U. W., 17 Mo. App. '254. Id Bagley v. A. 0. U. W., 22 N. E. Rep. 487, it w^as held to be a question of law, and not a ques- tion for the jury, whether the constitution of the society w^as in force at a certain date and whether F(j rfe it lire of Ben eji is . :>i09 I that a ■i during eiidants (/]• non- Grand ^V. Kep. es bear i of the and by- leuiber.s by the nstrued ambers : Wlien s is due )rdinate ;ified of fly sus- nd that )f tbeir )e void : )0), 10 1 strict in the u'poses ). App. p. 487, I ques- of the hether certain assessments were made in accordance ^vit^ such constitution. It was also held that a certified copy of the records of the grand lodge is sullicient evidence of the facts therein stated, for the purpose of a defence on the ground of non-payment of assessments, and that it was not necessary to prove the death of the member, or that such person was a member: see, also, Williams v. (Ternifin Mutual, etc., ()H 111. 887. Assessments improperly made are not binding: Lamphere v. A. O. V. \V., 47 ]\Iicli. 429. The board of directors or executive connnittee are the proper parties to make an assess- ment: Dial V. Valley Mutual Life Asso., 18 Ins. Law Jour. 622. It is a general rule that whv n a society relies upon the failure of a member to pay an assessment as working a forfeiture of benefits, it must show affirma,tively that the assessir.ent was made by the proper authority, for a p>'op r purpose, in the manner indicated in the s^ im-e from w^hich it derives its power to make the asst ss- ment, and in accordance with the contract. An averment that the assessment \ is '' duly made" is insufficient: American Mutual, etc. v. Helburn, 2 S. W. Rep. 496; Mutual Ins. Co. v. Houghton, 6 Gray. 77. In Knight v. Supreme Council Order of C. F.,Ai)pi 6 N. Y. Suppl. 427, the application of a payment by a member of an assessment illegally exacted was coi.sidered and it was held t' at so long as such payment remained in the hands of the society and w^as sufficient to meet the demand upon the mem- ber for assessments which were properly made upon fund. ica- of ;-^oo Insurance Corporations Act. Yo^Sr ^^"^' ^^^ defence for non-pay tnent was available to the society. Provisos. Provided that notice may in any case be effectually given if written or printed notice to the effect aforesaid is delivered, or by registered post prepaid is sent to the member or left at his last known place of abode by or in behalf of the society. How notice may be served. iM r 1 ii O CO CO Notice by mail . Notice may be given in any way the by-laws may prescribe, for the pjirties may agree what shall or shall not be notice. But if the society relies on a notice given in any way other than the way allowed by the proviso to be effectual, it lies upon the society to prove that the member has received the notice. For, apart from statute or express stipulation, the member is not bound in the absence of express stipulation b}^ any notice until it is actually received by him, Mutual Reserve Fund Assn. v. Hamlin, 20 Ins. Law Jour. ()9(); Castner v. Farmers' Mutual, etc., 50 Mich. 273; Duriiaus v. Corey, 17 Mich. 282. It is competent for the parties to agree what shall be notice, and it is enough to conform to the agreement as con- tained in the contract, or by-laws, as for example, tliMt iMiblication in a newspaper shall be notice, NortliKmpton, etc., Ins. Co. v. Stewart, 39 X. J. L. 4!SrK \\ etmore v. ^lutual Aid and Ben. Assoc, 23 La. Ann. 770; Epstein v. ^lutual Aid and Ben. Assoc, 28 La. Ann. 938. In case of advertising the time runs from date of last publication, Apnrt from statute, in the absence of any stipulation regarding the method of notice mere mailing is not sufficient. It must be shown that Me to ■ given if vered, or ft at Ills )y-laws ! what :>ociety lan the , it hes >er has )ute or and ill notice e serve ()95 ; 278; jetent e, and s con- niple, lotice, J. L. )c., 28 Ben. tising any mere that Rei)idateme)it. 801 the notice was actually received, ^IcCorkle v. ^?^*J?^ •' ' 40 (1). Texas Benevolent Assoc, IS Ins. L. Jour. 81, 8 S. W. Hep. 51(). Under the statute it is sutU- cient if the notice he sent hy registered post prepaid to the nieniher or left at his last known place of abode hy or on behalf of the society. A change of residence, not made known to the society, does not etfect the validity of the notice. The society has performed its duty when it has sent a notice of assessment to the address of the member, as made to it, Lothrop v. Greenfield, etc., Ins. Co., Allen (Mass.), 82. When notice of mailing is relied on it must be afhrmatively shown that the notice was placed in the post properly directed, and stamped according to law, Haskins v. Ky. Grangers Mutual Ben. Society, 7 Ky. Lawliep.871. Each member is entitled to separate notice, Garretson v. Equit- able Mutual, etc., 88 N. W. Rep. 127. On personal service see Jones v. Sisson, (3 Gray 288; York County Mutual v. Knight, 48 Me. 75; see also, Frey v. Mutual Ins. Co., 48 U. C. R. 102. Reinstatement, Provided also that wliere under tlie rules or by4aws of the society a defaulting member is entitled to be reinstated on payment of arrears, after a stated number of days' default, this section shall not in any wise operate to prejudice the rights of such member. The by-laws of benefit societies generally pro- Keinstate- vide that a member, suspended for non-payment of an assessment, may be restored upon doing certain acts. On principle these laws receive a > y < 3 2 802 In.siirroice Corjjoration.s Act. 3: o CO 03 Section Jiljerul constniction. Thus, where the rights of a 40 (1). ' '~ susi)on(le(l ineiiiher were to he restored, upon pay- ment of arrears, it was held that he did not have to tender the amount at a meeting of tlie h)dge, but might pay to the proper financial officer at any place, and that no consent or action on the part of the lodge was necessary to liis restoration : Man- son V. Grand Lodge, A. O. U. W., IB N. W. Kep. 395 ; Gaige v. Grand Lodge, 15 N. Y. St. Kep. 455. If not stipulated for in the rule governing rein- statement, a condition in respect to good health cannot be imposed : Ingram v. Supreme Council, 14 N. Y. St. Rep. 600; Yan-Houten v. Pine, 38 N. J. Eq. 72. If the laws of the society provide that for valid reasons to the officers of the society (such as failure to receive notice of the assessment), the member may be reinstated by paying assessment arrearages, the contract, it was held, has con- ditional life after the expiration of the days of grace for paying the assessment until it shall be ascertained whether the assured had sufficient excuse for the failure to pay. The decision of the officers on the validity of the excuse may be reversedi n the courts : Dennis v. Massachusetts Benefit Assn., 19 Ins. L. Jour. 811, 31 N. Y. St. Rep. 652. A condition requiring a certificate of health prior to reinstatement is waived by a request to pay an overdue assessment, coupled with an assur- ance that if paid the membership will be con- tinued : True v. Bankers' Life Association, 20 ins. ts of a 311 pay- )t liMve lod^e, ' at any part of : Man- V. Kep. ep. 455. ig rein- 1 health IJoimcil, 'ine, 88 [or vahd isuch as t), the ssment IS con- lays of hall be fficient of the nay be hnsetts Y. St. health liest to assur- le con- >0 Ins. l{('iiisf(ifen:eitf. :M)H L. Jonr. 197 ; see also Millard v. Supreme Council ^®°"°5 American Legion of Honor, '2'2 Pac. Keporter, 8(34. (2) When the benerit of tlio contraot is stipulated to be sus- pended or reduced or forfeited for any other reason than for non- payment of premium moneys, or money in the nature thereof, no such additional condition suspendinf,', reducing or forfeiting the benefit shall be valid, unless it is held by the court or judge before whom a question relatir.g to the contract is tried, to be just and reasonable under all the circumstances of the case, such decision to be subject to review or appeal. The decision of the society tribunal may, under this sv.b-section, be reversed, if the decision of such tribunal affects the rights of the member under an insurance contract of the society. It has been held in many cases that before the member can resort to the courts he must exhaust the remedies provided by the society of which he is a member : Field v. The Court Hope Lodge of A. 0. F., 20 Gr. 467 ; Carlen v. Drury, 1 Ves. and B. 154; Karcher v. Supreme Lodge, etc., 137 Mass. 3()8 ; Dolan v. Court Good Samaritan, 128 Mass. 487. Where contractual rights are involved a different rule prevails. The courts do not favour such a construction of the powers of a society whereby societies doing a life insurance business can expel a member for some infraction of a by-law regulating personal conduct and thereby cause him to forfeit his insurance : see Otto v. Journeymen Tailors' P. and B. Union of San Fransico, 17 Pac. Rep. 217; Austin v. Searing, 10 N. Y. 112; Sauer v. Sampson Lodge, 102 Ind. 262 ; Mulroy v. Knights of Honor, 28 Mo. App. 468. CoiulitioiiH of I'orfuit- uro to 1)0 just ar.d roasoiiiililo I ao4 Inaunince Corporationa Act. iM C ' 3: Section 40(2). pnlHina. l(<'iiu,'(ly l)y IJIHIIllailHIK In Siiprt'iiie Lod^^e A. 0. U. W. ft <(l. v. Zalk : 111. App. Ct., 10 Li'^^il Adviser, 84, the rule was laid down tliat expulsion without notice to, or appearance l)y, tlie nieniher is void. If the expul- sion was ille'.'al, it is no delVnice to an action hrou^ht hy the ni( niber to rt^cover benefits that the plaintiff was in arrears for dues, if it appear that the plaintiff had paid his dues up to the time of his expidsion, a.nd that all sul)se({uent dues were tendered: Simmons v. The Syracuse, etc.. Society, (N. V. S. (\), \)'l N. Y. State Rep. 4-28. In case of illegal disfranchisement of a meml)er of an incorporated society, mandanms is the proper remedy for his restoration: Connnonwealth v. Mayor, 5 Watts, lo2; People v. Benevolent Society, 8 Hun. 301 ; People v. Medical Society, 24 Barb. 570; State v. Chamber of Commerce, 20 Wis. ()3. On "just and reasonable," compare R. S. 0. 1887, c. 107, s. 117; see also, note under section 30, ,siipra. Provided that in any contract of which total abstinence from intoxicating liquors is made an express condition, such condition shall b** deemed to be just and reasonable. In Van Valkenburg v. American Popular Co., 70 N. Y. 005, it was held that a statement by assured that he never Nses intoxicating liquors is not falsi- fied by proof of a single or incidental use, the expression having reference to a customary or habitual use; see also Moore v. The Connecticut Mutual Life Ins. Co., S. C. R. at 097; ^tna Life Ins. Co. v. Hanna, 20 Ins. Law Jour. 977. V. Zalk : Ilk' was i to, or e expul- i action fits that ] appear ( t(t the ['lit dues se, etc., ). 4-28. meuiber le proper ealth V. uevolent Society, lerce, 20 S. O. section lence from condition Co., 70 assured ^ot falsi- lise, the Inary or iiecticut ^tna 1977. Anion at Faijdhle inuhr (U)ntrnct. .305 Seotlon 41 (1). Amount P-VYAiiLH I'ndeh (>ontiiact. II. (1) Where the event has happened on the occurrence of ,Y,uuc!i\'n* which any henetit or insurance money is payahle under the con- JJi^Un"'^' tract, but the amount payahle is matter of dispute, the aiiiount{'g",|[*y^f,^"|f payable by the friendly society to the beneficiary shall /t////// I'ltcie be the maximum amount stated or indicated in the con- tract, and it shall lie on the society to prove the coDtrary. On the maturity, see section "2 (15) supni, of an insurance contract of a friendly society, the ainonnt payal)le by the society to the beneliciary is j)ritnn facie the niaxiniuiii amount stated or indicated in the contract. "Maximum " means the hirnient is given for such sum only. Ti i.r.A— 20 > t i t «3 ^, ^^^. ^ \^ ^ IMAGE EVALUATION TEST TARGET (MT-S) 1.0 I.I 11.25 U|2£ 125 1-4 11.6 V f. 73 /: ^ '^A^*' '> '/ M Hiotographic Sciences Corporation 23 WIST MAIN STREET WEBSTER, N.Y. USSO (716) S73-4S03 ^^^ '^ 306 Insurance Corporations Act. Section 41(1). Separate asseBs. ments. r I c ' i Where the policy of an assessment company provides that the beneficiary shall receive not ex- ceeding §8,000, provided the assessments on the policies in force at the time of death amount to that sum, it was held in an action brought to com- pel an assessment that the policy was entitled to the proceeds of a separate assessment. It was not sufficient that a round sum was assessed on the occasion of nine policies becoming claims, and that the proceeds were distributed pro rata among the beneficiaries under the nine : Kentucky Mutual Security Fund Co. v. Turner, 19 Ins. L. Jour. 565. On the other hand, when the by-laws stipulate that members shall be subject only to one assessment for each death claim, and an assessment is made, but the claim is not paid in full, the members are not subject to a second assessment whether the amount realized was sufficient or not. People e.r rel. Meyers v. Masonic Guild & Mut. Ben. Assoc, 20 Ins. Law Jour. 858. When the society refuses ta make an assessment in a proper case, the remedy is by an action for the breach of contract : Bentz V. Northwestern Aid Assoc, 19 Ins. Law Jour. 142. Gomputa- tion of amount. The amount which would have been realized by an assessment according to the terras of the cer- tificate may be ascertained by a computation based on the official statement made by the companj^ and filed in the Insurance Department: O'Brien v. Home Ben. Society, (N. Y. S. C.) 4 N. Y. Suppl. 275. The plaintiff may have an order for the examination of the officers of the association to Amount Payable under Contract. 307 )mpany not ex- on the Dunt to to coni- itled to tvas not on the nd that ong the Mutual ur. 565. ate that jssment s made, bers are her the ople ex Assoc, refuses se, the Litract : s. Law would realize: ^«^«° n ized by he cer- 1 based iiy and lien V. Suppl. for the iion to ascertain what an assessment Chaffey v. Equitable Reserve Fund Life Assoc, (X. Y. S. C.) 2 N. Y. Suppl. 48L When, by the contract, the society undertakes to pay *'an amount equal to ^1.50 for each certificate in force at the time such amount shall become due, but not to exceed $4,000," the society is bound to pay $L50 for each certificate in force, and not merely the amount which it has been able to collect : Kerr V. Minnesota Mutual Benefit Assoc, 18 Ins. L. J. 546 ; Supreme Commandery of the Knights of the Golden Rule v. Barrett, (Ky. S. C.) 12 Ky. Law Rep. 04. But where the certificate indicates a particular JJ^J^j,^^, fund whereout the amount is to be paid to the ** beneficiary, the beneficiary has no right of recourse to any other fund or to the assets generally of the association ; his right of recovery is limited to the amount in that fund and which could be brought into it by proper assessments according to the plan of the association: Hesinger v. Home Benefit Assoc, (Min. S. C.) 43 North West Rep. 481. The limitation of the member's right must appear by the certificate; it is not sufficient that an amend- ment is. made in the by-laws of the society: Old Wayne Mutual Life Assoc v. Nordby, 19 Ins. Law Jour. 793. If the particular fund is insufficient, it is the duty of the society to levy an assessment : Darrow v. the Family Fund Society, 19 Ins. Law Jour. 554. If the society offers the claimant under a con- rig*hu;o°* " tract a less sum than tjie maximum named in the LoTs?' 3 30H Insurance Corpordtioiis Act. c ' i ^ section contract and either offers no explanation, or alleges — : as a reason for not paying the niaxinunn, that the society's general fnnd, or some other fund, is insufficient, the claimant is, on written notice ta the society, entitled as of right to inspect person- ally or by agent, all books and documents relating to the contract funds generally, or the fund alleged to be insufficient: section 46 (1), infra. On the society refusing or neglecting to afford him a reasonable opportunity of inspection the claimant can obtain from the Eegistrar an order to inspect on a day named. After such order has been granted neglect or refusal to afford him an oppor- tunity of inspection is an offence punishable on snnnnary conviction by imprisonment: section 46 (2), infra. Every claim under any insurance contract of a friendly society is legally payable on the expiration of sixty days after reasonably sufficient proof has been furnished to the society of the happening of the event on which such claim was by the c(m- tract, to accrue. The society in its discretion may pay the claim at any time before the expiration of the sixty days: section 42 infra. Claiui when l)ayablo. Policies of corpora- tiiiiis licensed under 11. H. C. c. 124, 8. 39. (2) Where a corporation licensed or authorized under section 89 of 77*/' IiisuKouc Act of Canada is registered under this Act. every policy and certificate issued and used in Ontario sluiU conform and be sul)ject to the provisions of the said section ; and upon any contravention of the said section the corporation shall he liable to have its rejijistry under tbis Act suspended or can- celled. A)noU)it Paydble under Contract. 809 \4 r {illejj:es ihut the fuiul, is otice to person- relatin^? 1 alleged On the him a jlaiiiiant » inspect as been n oppor- lable on ction 4f) act of a :pi ration root' has ning of he con- iion may •ation of cr section this Act, ario sluill tion ; and ition shall 1 or can- Section 41 (2). The following is the t.^\t of section 'M) of Hie In.s/irdHce Act of Canada, K. S. C. c. 1'24. Any contravention of the section renders the corpora- tion liable to suspension or cancellation of registry : of. section (> (2) sn/ird : — ''89. The provisions of this section shall apply to " ** ^- ' *■ ... c i^ ^f 121, 8. 30. corporations or associations incorporated or legally formed elsewhere than in Canada for the purpose of carrying on the business of life insurance upon the co-operative or assessment plan : "2. Any such corporation or association may be licensed by the Minister under the provisions of this Act, to transact business in Canada upon depositing with him fifty thousand dollars, and thereafter shall have the right to transact business so long as it continues to pay its losses to the full limit named in its certificates or policies, and has complied with all the requirements of this Act and of the Superintendent of Insurance; " 8. In addition to such deposit of fifty thousand dollars, the Minister, upon the report of the Superintendent, approved by the Treasury Board, may, from time to time, require such other and further deposit as is recommended in such report and so approved, to be made by such companies or deposited with trustees to be named by the Minis- ter upon such trusts as are determined by the Governor in Council; ''4. Death claims shall be a first charge on all moneys realized from assessments, and no deduc- tion shall be made from any such death claims on anv account whatsoever; P 5 310 Insurance Corporations Act. Beetion 41(2). u r c ' o 5. No portion of any moneys received from assessments for death claims shall be used for any expense whatever: and every notice of any assess- ments shall truly specify the cause and purpose thereof; '*6. Every application, policy and certificate issued or used by any such company in Canada* shall have printed thereon, in a conspicuous place, in ink of a color different from that of the ink in the instrument, and in good sized type, the follow- ing words : *' ' This association is not required by law to maintain the reserve which is required of ordinary life insurance companies.' **7. Every certificate and policy shall contain a promise to pay the whole amount therein men- tioned out of the death fund of the association and out of any moneys realized from assessments to be. made for that purpose, and every such association shall be bound, forthwith, and from time to time to make assessments to an amount adequate with its other available funds to pay all obligations created under any such certificate or policy with- out deduction or abatement ; " 8. The condition embodied in the next preced- ing sub-section shall be inserted in every policy or certificate issued or delivered by any such company to any person insured in Canada ; \ '* 9. In every policy issued by a company licensed in accordance with this section of this Act in favor of a resident of Canada, a clause shall be either Amount Paijahle under Contract. 311 ed from for any f assess- purpose rtificate Canada^ IS place, ! ink in J follow- law to )rdinary Dntain a n men- ion and ts to be )ciation to time te with gations y with- 3reced- Hcy or mpany censed 1 favor either embodied therein or endorsed thereon, to the effect sections that an action to enforce the obhgation of such '-^ pohcy may be vahdly taken in any court of com- petent jurisdiction in the Province wherein the policy-holder resides or last resided before his decease, and such policy shall not contain any provision inconsistent with such clause, 49 V. c. 45, s. 39." •JLtt. Every claim umler a contract within the meaning? of <^\aii"« '' '^ when section 2 hereof accruing to a member of a friendly society, or to payable, his executors, administrators or assifijns, or to his nominees, where by the rules of the society nomination is permitted, shall become legally payable on the expiration of sixty days after reasonably sufficient proof has been furnished to the society of the happening of tl e event on which such claim was, by said contract, to accrue, and any rules or by-laws of the society to the contrary shall be void ; but the society may, in its discretion, pay the claim at any time before the expiration of the sixty days. Cf. Statutory Condition 17 of fire policies. R. S. O. 1887, c. 167, s. 114, Appendix A. A benefit under an insurance contract of a friendly society is legally payable, any rule or by- law to the contrary notwithstanding, on the expir- ation of sixty days after reasonably sufficient proof has been furnished to the society of the happening of the event on which such benefit was by said contract to accrue: cf. definition of ''maturity" of an insurance contract, section 2 (15), supra. Where a thing is to be done after so many days . the first day is to be excluded: Dickson v. Scott, 1 P. R. 366; Montgomery v. Brown, 2 L. J. N. S- I I i3 !i 312 Insurance Coiponitions Act. Section 42. C ' O H to 03 ^: P'l 72. So, CoininerciKl Bank v. Ives, 2 Hill. 885, if a tiling' is to be done after 80 days it cannot be done until after the 81st day: see, also, Judd v. Fulton, 10 Barb. 117. A writ of summons is not a judicial act or proceeding, therefore, if the cause of action arose before the hour of issuing the writ, the action is not premature: Clarke v. Bradlaugh, L. R. 8 Q. B. D. 08; Campbell v. Strangeways, L. R. 3 C. P. D. 105. Repudiation by the company of liability under the contract does not entitle the assured to commence his action before the expira- tion of the time allowed by the statute for pay- ment : Mutual Fire Ins. Co. of Co. of Wellington V. Frey, 5 S. C. R. 8' 'Cameron v. Monarch, 7 U. C. C. P. 212; Rice A^ovincial, 7 U. C. C. P. 548 ; contra, California Ins. Co. v. Gracey, 20 Ins. Law Jour. 28; Cascade Fire and Marine Ins. Co. V. Journal Publishing Co., 20 Ins. Law Jour. 895. The. proof required is such reasonable proof as will give assurance that the event has happened, and such as will satisfy the rules of evidence. What is due proof cannot be determined arbitrarily by the company, as, for instance, that a physician's certifi- cate shall be deemed an essential part of the proof : Taylor v. J^tna Life Ins. Co., 18 Gray. 484; O'Reilly v. Guardian Mutual Life Ins. Co., 60 N. Y. 169. The information is the main thing to be regarded in proofs of loss, the form is not impor- tant : Irwin V. Springfield, etc., Ins. Co., 24 Mo. App. 145. Notice of loss and particulars of it may be waived by the insurer expressly, or by con- duct in dealing with the assured: Lampkin v. Ont. M. & F. Ins. Co., 12 U. C. R. at 584. Amount Paijahle under Contract. 813 II. 880, if fiuiiot be , Judd V. IS is not Ale cause the writ, adlaugh, iigeways, company ititle the e expira- for pay- elHngton )narch, 7 C. C. P. S 20 Ins. Ins. Co. our. 395. )f as will ned, and What is r bv the s certili- e proof: ^y- 484; 60N.Y. 2r to be impor- 24 Mo. of it by con- pkin V. it 584. •s Delivery of proof of loss and particulars of loss to the local agent is sufficient delivery : Peppit ■ V. North British and Mercantile, 1 iiuss. ct (leld., (Nov. 8c.) 219; German Ins. Co. v. Ward, 90 111. 550. If the company, when notified of the death and requested to furnish blank proofs of loss, refuses to do so on the ground chat the policy is void, or that it is not liable for the loss, such con- duct will be held a waiver of proofs and they need not be supplied: Grattan v. Metropolitan L. Ins. Co., 80 N. Y. 281 ; Payne v. Mutual Relief Society, {) N. Y. St. Rep. 865. If the delay in furnishing proofs of loss, or giving notice is in any way attri- butable to the insurer, or caused by him, the delay will not be regarded: Little v. Phoenix Ins. Co., 128 Mass. 380; O'Brien v. Ohio Ins. Co., 52 Mich. 131. Thus, in Supreme Sitting Order of the Iron Hall V. Steen, 22 North East. Rep. 136, wdiere the pro- per officer refused to certify to his sickness. If no proofs of loss are furnished the liability of the insurer does not attach unless proof has been waived: Leadbitter v. ^tna Ins. Co., 13 Me. 265; Davis V. Davis, 49 Me. 282. Where defects are found in proofs of loss, capable of being remedied, if intelligibly pointed out, failure on the part of the insurer to make known to the claimant the defect wdthin a reasonable time, is deemed to be a waiver: ^lercantile Insurance Co. v. Holthaus, 43 Mich. 423: Titus v. Glens Falls Ins. Co., 81 N. Y. 410; Timayenis v. Union Mut. L. Ins. Co., 21 Fed. Rep. 223. What is a reason- able time is a question for the jury : Fire Insurance Companies v. Felrath, 77 Ala. 201. Section 42. h a 5 314 Innn ranee CorponitionH Aet. f < C I aa V . 'Va"?' ^'^^^ society may pay the claim at any time before the expiration of the sixty days. Apart from the statute, it has been held that a provision postponing the time for payment is simply for the benefit of the insurer. Thus, after notice, the insurer is not bound to wait the whole of the specified time before making payment, in order to give possible claimants opportunity to make known their claims : Home Mutual Assn. v. Seager, I'iH Pa. St. 583. On the other hand, waiver of proof does not create a liability to pay prior to the expiration of the specified time : McConnell v. Iowa Mutual Aid Assn., 7U Iowa, 757. Notices to CoRroHATioNs. 4S<. Delivery of any written notice to any insurance cor- poration for any purpose of this Act, where the mode thereof is not otherwise expressly provided, may be by letter delivered at the chief office of the corporation in Ontario, or by re so 3 324 Insurance Corporations Act. SectlouB 48(2)-(3),49 (2) The statement required by the preceding sub-section Who may may be sworn to before any Justice of the Peace, Notary administer "" , , , /-, , ,. , • . ^, , . oaths Pubhc or Commissioner of the High Court tor taking affidavits, Act. and every such person is hereby authorized to administer any oath required under this Act, except where otherwise expressly provided. Copy of (3) Together with the statement mentioned in sub-section 1 statement of this section the society shall file in the office of the Registrar a certified copy of the summary statement required by sub-sec- tion 1 of section 29. For the form and contents of the summary statement of the result of the annual audit, see under section 29 (1), supra. g a: I- o Registrar's annual return. 4tH. From the statements filed in his office, as aforesaid, the Registrar shall cause to be prepared, printed and distributed, a report, which may be known as the Friendly Societies' State- ments, for the year ending 31st December {namitui thr iicar)^ and such report shall include a list of registered societies brought up to its actual date of publication. It is enacted by section 22, sub-section 1 supra, that the printing of a society's annual state- ment in the Registrar's report shall not operate, or be in any way construed as a warranty of the financial basis or for the actual or actuarial sol- vency or standing of any society. A friendly society may, however, include in its annual statement to the Registrar a valuation, made by a competent actuary, and verified by his oath, of any or all of the contingent ^'-ibilities of the society; and the Registrar may in his annual report publish an abstract of such valuation as part of the society'^ statement. Susjievsioji or Cancellation of lief/isfn/. 325 Section *» (1). Suspension or Cancellation of Registry. <40. (1) The happening of any of the following events shall pv^ius'to insi) fncto, and without notice from the Registry Officer cancel cancel the registry of the corporation concerned: — {a) The repeal or the expiry without renewal of its charter, instrument of association, or deed of settlement, or of its act or acts of incorporation ; or In England a charter may be obtained from 5*,°^;*;*'^°^^ the Crown on petition to the Queen in Council ; cpn°or"-' when once obtained, the corporation can not be dissolved by exercise of the Royal Prerogative : 2 Kyd. 447; Lea v. Americpn, etc. Canal, 3 Abb. Pr. N. S. 10. But a charter which has been obta. led from the Crow^n by false and fraudulent statements may be formally annulled by scire facias. R. V. The Eastern Archipelago Co., 1 E. & B. 310; 2 E. & B. 856, and 4 DeG. M. & G. 199. A company Avhich is incorporated by charter may be dissolved bj' a formal surrender or cancellation of its charter and in such otlier way, if any, as is pointed out therein. tion. A company w hich is incorporated by Act of Par- liament can be dissolved only as therein provided, or by another Act of Parliament : Lindley Law of Companies, 5th ed. 610. There are two cases in which a corporation is Sfaffi-.''' dissolved by effluxion of time. First., if the cor-®**'' poration w^as chartered to exist during a limited period of time, or until a certain day, its existence will cease upon the expiration of the time or the 326 Insurance Corporations Act. Uuder Ont. Ins.Act *w *«• g r • i t b • , * ^ Cv ' Cj i, ^ E O ff *M u fiO ** 9» : ^|,: ., : Uuder ,'^^^^BP ' ' 7?w. 4c(. ^9*{if occurrence of the day prescribed by the charter: —People V. Walker, 17 N. Y. 502; Morawetz Law of Private Corporations, 2nd ed. 5^ 1005. Second, if the charter contains a proviso that, unless the company shall go into actual operation within a specified time, its corporate existence and powers shall cease, the corporation will lose its franchise if it does not go into actual operation within the time specified, and no judgment of forfeiture is necessary: Morawetz Law of Private Corporations, § 1006. The corporate powers of an insurance company incorporated under The Ontario Insurance Act or under any special Act of the Legislature of Ontario are forfeited by non-user during three years after the date of its incorporation ; or by discontinuance of business for one year; or by suspension of its license for one year; or, if the license is cancelled otherwise than by effluxion of time and is not renewed within the time prescribed by section 46 of The Ontario Insurance Act, R. S. O. 1887, c. 167, s. 7; compare R. S. 0. 1887, c. 157, s. 70. Similarly Acts of the Parliament of Canada incor- ofcanada. poratlng iusurauce companies expire at the end of two years from the passing thereof, unless the company obtains a license from the Minister under the provisions of The Insurance Act, R. S. C. c. 124, s. 24; compare R. S. C. c. 119, s. 83. Under If a body incorporated under R. S. O. 1887^ Societies' c. 172, docs uot go luto actual operation within two years after incorporation, or, for tw^o con- secutive years, does not use its corporate powers. Hnspensiun or Cancellation of liegistr!/. 327 for the purpose or for the chief purpose set forth ^^ in its declaration, such non-user ipso facto woiks a ' forfeiture of the corporate powers: 11. 8. O. 1HH7, c. 172, s. 1, as amended by 58 Vic. c. 89 (Out.), s. U, and by TJie Insurance CorjKtrations Act, 1S9'^, H. ()8 (1), infra. {!)) The revocation of its corporate powers ; or By 53 Vic. c. 39 (Out.), s. 10, the corporate powers of a body incorporated under 11. S. 0. 1SB7, c. 172, may be revoked, or suspended for a limited period, by the Lieutenant-Governor in Council if the body has used its corporate powers for a fraudu- lent or other unlawful purpose. The case provided for in this and the preceding clause of this sub-section is the destruction of the corporation itself either by repeal, expiry or revo- cation. In the next clause the case provided for is the loss of the particular franchise of the corporation, whereby it had authority to transact the business of insurance. } :i2 I I 5 ((•) The cancellation, or the expiry without renewal of the license or other document of authority by which the corporation was authorized to exercise its corporate powers for the transaction of insurance ; or To the same effect is sub-section 2 of section 19, supra. For cancellation or expiry of the license issued, under The Ontario Insurance Act, see R. S. 0. 1887, c. 167, ss. U, 46, 57, 104, 143; under The O OQ v«. 328 Insurance Corporations Act. ■JJ^** Insurance Act of Canada, sp*^ R. 8. C. c. 124, ss. 5, —8 (8), 9, 10, 21 (2), 25 (b' ^ 38 (2), 30 (2), 45. {'/) The passing,' of a resolution by the corpoidtion for its wiuiling up ; or For voluntary liquidation of Ontario corporations see H. S. O. 1887, c. 183; also, The Ontario Insur- ance Act, 88. 151 et seq.\ under The Winding-up Act of Canada, see R. S. C. c. 129 as amended by 52 Yic. c. 32 (D.) (/') The making of an order by any court for the winding-up of the corporation : For winding up under an order of the court : see Dominion Winding-up Act as amended by 52 Yic. c. 32 (D.); cf. R. S. 0. 1887, c. 183. In Douglas v. Atlantic Mutual, etc. of Albany, 28 Gr. 379, it was held that a company incorpor- ated in the State of New York and carrying on business in Ontario, cannot be allowed to do so after proceedings have been taken, according to the law of its domicile with a view of winding up the affairs of the company, and that irrespective of what the result of the proceedings may be as to solvency or insolvency of the company. And upon proof that any of the said events has happened, the Registry Officer, after notice to the corporation in cases where any dispute is likely to arise, shall cause the proper entry to be made upon the register. The happening of any of the said events ijyso facto cancels the registry of the corporation, with- out notice from the Registry Officer, although no Suspension or Cancellation of lieffistr/f. 829 ration for its entry of such cancellation may appear upon the rej^ister. An entry on the re«,nHter is made by the Ke^istry Officer upon proof that such event has happened. In a doubtful case no entry is made until after notice to the corporation concerned. If a written notice disputing,' that such event has happened is delivered on behalf of Jag corporation to the llegistry Officer, the Registry Officer decides both as to the law and the facts, but an appeal lies from his decision: sub-section 8, infra. Com- pare, re Outlay Assurance Society, L. K. 84 Ch. 1). 479. 8«CtlOD 49tiHai. (2) The happening of any of the foh wing events shall i}>sn certain fncto and without notice from the Registry Officer suspend the Riispond •' 1 ro^i'stry. registry of the corporations concerned ; — {ti) The suspension of any of the acts, instruments or docu- ments mentioned in the first and third subdivisions of the next preceding sub-section ; or (/>) The suspension of tlie corporate powers of the corpora- tion ; Similarly, suspension of the registry of a cor- poration occurs ij)so facto on the suspension of the charter, instrument of association, deed of settle- ment, or Act or Acts of incorporation, or of the license or other document of authority by which the corporation was authorized to exercise its cor- porate powers for the transactior of insurance. So, also, if the corporate powders of a corporation are suspended, the registry of the corporation is ipso facto suspended. 2 m) I HSU ni nee Corporations Act. g r i c CO ■jj^fj" After sunh suspension or cancellation of re<o nifii nil Ct'SXOl- Of roKiittry lutoi'lU'e- tiitiiiii. (5) In this section and subsequent sections, "Master" shall mean the Master in Ordinary in the case of a corporation having its head office in Toronto or in the county of York ; and in the M«-«tur. case of a corporation having its head office in any other county, shall mean the Local Master, or the otficer acting as Local Master in such county. The place where the corporation has its head office, i.e. the place where the chief executive officers of the corporation transact its business, section 2 (20) supra, determines the place where the proceedings are to be carried on. 2 832 Insurance Corj^orations Act. ^^m^Ib"" ^^ there is a vacancy in the office of Local ^ '^'•<^)- Master, the Judge of the County Court for the nSr. County acts as Local Master until and unless another person is appointed: C. R. 125 (2). £ ^. Decision 50. (1) Where the Registry Officer decides in any disputed Registry case that a corporation is, or is not legally entitled to registry, or hi writing^ to renewal of registry, or whero he suspends, revives or cancels delivered the registry of a corporation, the Registry Officer, except as corpora- otherwise herein provided, shall render his decision . in writing, **°" and shall cause a copy of his decision certified under the seal of his office to be delivered by registered post, or otherwise, to the corporation at its head office or chief agency in Ontario. Delivery to attorney. The power of attorney from a corporation hav- ing its head office elsewhere than in Ontario to an agent resident in Ontario expressly declares that receipt of notices from the Registry Officer at the head office or chief agency of the corporation in Ontario, or personally by the attorney at the place where such chief agency is established shall be legal and binding on the corporation to all intents and purposes whatsoever: section 14 (2) supra. Certified (2) A certified copy of any such decision of the Registry decision, Officer may be had on application at his office, and upon pay- ment of the fee hereinafter prescribed. For tariff of fees see section 62, infra. Affidavits (3) The affidavits and depositions received or taken by the tions to°bc Registrv Officer in any disputed case shall be filed in his office. filed See sections 7 (2) and 11 (2), snpra. Suspe?isiofi or Cancellation of Registry. md ™,. • 1 1 -1 • • , « , Sections (4) The evidence and proceedings m any matter before the C0(4),5i(i) Registry Officer may be reported by a stenographic writer who steno- has taken an oath before the Registry Officer to faithfully report repn-V^of the same. As to the oath to be taken by a stenographic writer of the High Court, Consol. Rule 146 (2) provides the form of oath as follow : — " I, A. li., do solemnly and sincerely promise and swear that I will faithfully report the evidence and proceedings at the trial in each case in which it may be my duty to act as shorthand reporter. So help me God." 51. (1) Upon the decision of the Registry Officer that the Appeals . . • 1 1 . trom deci- corporation is or is not entitled to registry, or upon any suspen- sion of sion, revivor, or cancellation of registry by him, an appeal may officer, be had to a Divisional Court of the High Court, the appellant having first given security for costs, in an amount to be deter- mined by the Court or a Judge thereof or by General Rules as hereinafter provided for. Two clear days' previous notice of the application to fix the amount of such security shall be given to the Registry Officer at his office. Cf. 88 & 39 Vic. c. 60 (Imp.), s. 11 (8); 89 & 40 Vic. c. 45 (Imp.), s. 7 (8). An appeal may thus be taken from any decision of the Registry Officer relating to the registry of an insurance corporation. No appeal lies from his decision that an insurance agent is or is not entitled to registry under section 88 (4) siipra^ or from suspension or revocation of the registry under section 88 (11) supra. Security for costs. — The Supreme Court of security. Judicature may make rules or orders as to the form of appeals under this section and the trying thereof and otherw^ise relating thereto, sub-section (4) of 5 334 Insurance Corporations Act. Section 61 (1). this section. If such rules do not prescribe the amount in which security is to be given the amount is to be determined by the Court or a Judge. The general rules governing the amount of security for costs are C. E. 1245-1250. Notice. Effect of Appeal. O fio to* 03 ^..' i ill' p.- if T'wo clear clays' notice. — In the computation of "clear days" both the first day and the last day are excluded, C. R. 475. The notice must be served oil the Eegistry Officer at his office, service else- where will not suffice. In the case of insurance corporations incor- porated by or by virtue of a statute of Ontario, suspension or cancellation of registry operates ipso facto to make the treasurer, or other officer of the corporation in Ontario, having in charge the accounts and insurance funds of the corporation, interim receiver: section 53 (1) infra. It is the duty of the interim receiver, forthwith to deposit such moneys and securities for money in a char- tered bank prescribed by the Rules (section 53 (2) infra), and to file an application, affidavit and bank receipts in the office of the Master : section 54 (1) (3), infra. The fact of the corporation taking an appeal from the decision of the Registry Officer does not avoid the necessity of these steps towards winding up. Neglect or refusal to comply with the Act in these respects would probably be held to disentitle the corporation from prosecuting the appeal. Appointment and Duties of Beceivers. 885 Sections SI l2)-(4) (2) At least ten clear days' notice of appeal, and of any sub- 82 (i). sequent proceeding on the appeal, shall be given to the Registry Nnt^^e to Officer at his office. Sr.^ Cf. sub-section (1) snpra. (3) Upon the production of final judgment, on appeal, if Entries on any, admitting the corporation to registry, or disallowing registry granted, or reversing the suspension, revivor or cancellation of registry, the Registry Officer shall cause the proper entry to be made on the register together with a minute of the judgment authorizing such entry, and the Registry Officer shall thereupon grant a certificate of registry, or cancel the registry granted according to the tenor of such judgment. Cf. 38 & 89 Vic. c. 60 (Imp.), s. 11 (9) ; 89 ct 40 Vic. c. 45 (Imp.), s. 7 (9). (4) The Supreme Court of Judicature may make rules or i^uies as to appeals. orders as to the form of appeals under this section and the try- ing thereof and otherwise relating thereto. Cf. 89 & 40 Vic. c. 45 (Imp.), s-s. 8, 9 ; Jnrlica- ture Act, R. S. 0. 1887, c. 44, s. 105. i n I Appointment and Duties of Receiyees. 52. (1) Sections 53 to 59 inclusive shall apply only toAppHca- insurance corporations incorporated bv or by virtue of a statute sections „ ,, . ' 52 to 59. 01 Ontario. In the case of insurance corporations incor- porated by or by virtue of a statute of Canada, recourse must be had to the Winding-tip Act, R. S. C. c. 129. ^ i 386 o fiQ "^.. Sections 62(2)03(1) Case of two or luore custodiauB of funds, etc. Effect of certain events or of non- registry. Insurance Corj^o rat ions Act. (2) To such corporations the said sections shall equally apply where the accounts, account hooks, and insurance funds are in the charge, custody, possession or power of two or mote persons : and in such case the words '• receiver " and '• interim receiver " shall include all of such ptrsons unless and until other appointment or other disposition of the matter is made by the Court. From the moment of suspension or cancellation of registry of a corporation to which these sections are applicable there is an ascertained person upon whom the duties of interim receiver are imposed. If the accounts, account books and insurance funds of the corporation are in the charge, possession or control of two or more persons, all of such persons are meant by the words " receiver " and '' interim receiver" : cf. The Interpretation Act, E. S. 0. 1887, c. 1, s. 8 (24). JS3. (1) Upon the happening of any of the events mentioned in sub-sections 1 and 2 of section 49, cr upon notice given by the Registry Officer of the corporation's rpgistry being sus'oended or cancelled, or where a corporation after the 31st December, 1892, neglects to register or to renew its registry, the treasurer or other officer of the corporation in Ontario having in his charge, custody, possession or power the accounts, account books and iuFurance funds of the corporation shall ipso facto and during the pendency of an action or appeal, if any, or the liquidator appointed under chapter 183 of the Edvised Statutes of Ontario^ 1887, if any, shall ipso facto and during the pendency of a'l action or appeal, if any, become interim receiver for the cor- poration and an officer of the High Couri subject to its control and direction, and he shall so remain unless and until other appointment or other disposition of the matter is made by the Court. Under section 49 {supra), suspension or cancel- lation of registry occurs ipso facto upon the happening of one of the events therein specified,. A])pointfnent atul Viitie.i of lleceivera. 337 shall equally lurance funds two or mote and " interim nd until other made by the ancellation se sections n'son upon B imposed, ance funds ssession or ch persons i " interim S. 0.1887, ts mentioned tice given by iig suspended t December, Ithe treasurer n his charge, t books and and during e liquidator Is of Ontario > dency of a'l for the cor- its control until other ade by the )r cancel- ipon the [specified, without notice from the Registry Officer. In other ^5*3^^5° cases suspension or canceUation of registry follows the decision of the Registry Officer ; in such cases notice of the fact is given by the Registry Officer to the corporation concerned : section 50 (1). Where a corporation neglects after the 31st day of December, 1892, to register or to renew its registry, or where the registry of a corporation is cancelled or suspended, then if the corporation is incorporated by or by virtue of a statute of Ontario, section 52(1), the treasurer or other officer of the corporation in charge of the nisurance funds, or the liquidator, if any, appointed under R. S. 0. 1887, c. 183, becomes ipso facto interim receiver for the corporation and an officer of the High Court subject to its control and direction. The interim receiver remains in office until other appointment or disposition of the matter is made by the court : see s. ^^^ (9), uifra. The offices of receiver and liquidator may be united in the same person : King v. Oriental Hotels Co., L. R. 5 Ch. App. 420; see, also, re Oriental Hotels Co., L. R. 12 Eq. 12(5; Boyle v. Bettws ColHery Co., 2 Ch. D. 72(3; in re Pound, Sons, ct Hutchins, L. R. 42 Ch. Div. 412. There is no general rule that a receiver already appointed must be displaced by the liquidator: re Pound, etc., L. R. 42 Ch. I)". 402, citing re Lloyd, etc., (i Ch. ]). 339; Bartlett v. North Avenue Co., 53 L. T. N. S. ()11, 012; but the ordinary course taken is to con- tinue the receiver as liquidator: see Introductory Chapter, supra. - H.I.C.A. — 22 % 888 Insurance Corpoi'ations Act. Section ^ '' (2) The interim receiver shall forthwith deposit in the char- deposir '° tered bank prescribed by rules 168, 104 and 165 of the Consohd- hnVank^'' ated Rules of Practice of the Supreme Court of Judicature, all moneys and securities for money in the charge, custody, pos- session or power of the corporation, or of himself as officer of the corporation, and shall, from time to time, so deposit all fur- ther moneys or securities that come into his possession or power as receiver unless and until other\vise ordered by the Court. C. R. 164. " A person desiring to pay money into court shall pay the same into the Canadian Bank of Commerce at Toronto, or at some branch or agency thereof, or as mentioned in Eule 165, and in no other way. C. R. 165. " Money required to be paid into Court in any of the following places (so long as the Canadian Bank of Commerce shall have no branch office thereat) shall be paid into the branch or agency office of the Bank set opposite the said places respectively : — St. Thomas The Merchants Bank. Kingston The Bank of Montreal. Owen Sound The M jrchauts Bank, Milton The Bank of Hamilton. Perth The Bank of Montreal. Brock viiiLE The Bank of Montreal. Napanee The Merchants Bank. ConouRG The Bank of Montreal. Whitby The Dominion Bank. Brampton The Merchants Bank. PiCTON The Bank of Montreal. . Pembroke The Bank of Ottawa. Cornwall The Bank of Montreal. LiNDs.u- The Bank of Montreal. Welland , The Imperial Bank. Port Arthir The Ontario Bank. Appointment and Duties of lieceiverH. 889 , in the char- the Consolicl- udicature, all custody, pos- f as officer of eposit all fur- possession or 'dered bv the pay iiione)' 3 Canadian )me branch lie 165, and paid into long as the ' no branch branch or e the said lank. htreal. lank. lilton. htreal. itreal. sank, htreal. lank, lank. itreal. . Lwa. itreal. itreal. ik. Sections 63 (S)-;4) g4 (1). Bank to Rivi> leci'iptH. (8) On receiving from the interim receiver the moneys and securities for money of the corporation, together with his written notice that by virtue of this Act, the insurance corporation {nniiiiuii it), has become unregistered, and that he is interim receiver for the same, the bank shall give the interim receiver a receipt for the moneys and a separate receipt for the securities, specifying each security, each receipt being in duplicate; and the .said receipts shall acknowledge the moneys ancf the securi- ties respectively to have been deposited by the interim receiver, {uiimiivi him) to the credit of the unregistered corporation (till III 1)1(1 it), and as subject to the order of the High Court. This written notice of the interim receiver to the bank is the bank's authority to receive the money and securities. Cf. the Direction to the Bank to receive money, obtained under C. R. 166. The receipts are in duplicate, one of each of the duplicate receipts must be filed with the other documents specified in section 54, infra, in the office of the Master. (4) The pavment of interest on the moneys so deposited in i"'«>^est ou the bank shall be governed by the same rules as in the case of tiepositeri. money received by the bank to the credit ol a cause. Cf. C. R. 146, 147. 54. (1) After depositing the moneys and securities in theAppHca- . 1 . „. tion to bf bank as requu'ed by sub-section 2 of section 53 the interim ftied by ititeriin receiver shall forthwith file an application in the office of the veceiver lu Master to the following effect : — office. THE INSURANCE CORPORATIONS ACT, 1892. In the High Court of Justice, Division. ^""^r^} of " apphca- In the matter of (Name of corporation) an unregistered insurance cor- tion for poration. ^.A^- discharge. i 3 6 840 Section 64(2H3i. 1 i .*i ■I #w ■f ■ J«l ■-■ j, "^ r ", 1 t b • . •• -. t^ ' '^- Vj 1- O n '^ 03 OQ ■'!* Insurance Corporations Act. I, C\ D,, by virtue of The Innurance Corporationn Act, IS'J'J {ur of order made thereunder, as the case may be) interim receiver for the above-named corporation, do on the grounds set forth in the annexed atHdavit apply to the Court for confirmation of me in my office of receiver (or for discliarge of me from my office of receiver, accordiwj an the interim receiver oftplieH to be confirmed or discharged), and for an appointment of a day on which my application shall be considered. Dated at this day of 18 C. 1). In the case of a corporation having its head office at Toronto or in the County of York this apphcation must be filed in the office of the Master in Ordinary. In case of other corporations the apphcation nuist be filed with the Local Master or officer acting as Local Master for the county in which the head office of the corporation is situate: section 49 (5) supra. (2) The foregoing application may be entitled in any Division of the High Court ; but every subsequent proceeding shall be entitled in that Division wherein the application was entitled. The appointment of receivers, which was for- merly exclusively within the jurisdiction of the Court of Chancery, may now be made by any Division of the High Court, R. S. O. 1887, c. 44, s. 6H (8). See Introductory Chapter, supra. ilii Hauk receipt and affidavit to be filed with the applica- tion (B) Together with the foregoing application the interim receiver shall file in the office of the Master, one of each of the duplicate receipts given by the bank as aforesaid, and also an affidavit to the following eflect, the necessary variations being made where by operation of this Act, two or more persons are made interim receiver, and join in the affidavit. Aj>jn>intmenf mul Duties of lieceirers. :U1 Dersons are THE INSUHANCP: corporations act. 1892. In the High Court of Justice, l>ivi8ion. In tlif matter of [name of the corporotion] an unrej^istered insurance ccvporation and the application of C I> , interim receiver, bearint^ date the day of 18 . I, C. I>., by virtue of The Insurauce CurporatinnK Art, JS!r*. interim receiver for the \nnmitifl the coiporition] make oatli and say: — 1. That the {naming the corporation ceased to be registered under The Iiii'iiniih-e Corporntions Act, 189'i, on the day of 18 and that tliereupon by virtue of the said Act I became interim receiver for the said corporation. 2. That, when the said corporation so ceased to be registered, I held therein the office of treasurer 'or uk the cokc may lie] and that as such officer I had in my custody, possession or power of the funds [or if a cor- poration having fnndu xeparate and distinct from the funds of the insurance branch then say insurance funds of the corporation. 3. That all the moneys and securities for money in my custody, possession or power when the said corporation ceased to be registered or subseciuently and up to the time ot making deposit in the bank as required by the said Act, are fully and truly set out in the schedule A hereto ; also that ♦^lie said deposit thereof is correctly vouched for by the bank's receipt? aereto annexed. 4. That the other assets of the said corporation including moneys or securities for money that have come into my charge, custody, possession or power since the time of making the said deposit are fully and truly set out in the schedule B hereto. 5. That, as treasurer [or other ojficer, as the ease may he] of the said corporation, I gave securities for the faithful performance of my duties to the corporation as follows : — [Here specify the securities give-: . if bonds, give names and addresses of the sureties and the sums in which they are severally bound.] 6. That the said securities are still in force and are now in the cus- tody, possession or power of [here give the name and address of the custodian or bailee.] 7. That I have filed herewith an application in the Master's office, praying the Court to confirm me in my office of receiver [or to discharge me of my office as receiver, as the case may be] and that the following are the material facts in support of the said application, [here state shortly ■the material facts.] Sworn at \ • tliis day of 18 , j- (Signature.) t»efore me, etc. Section 84(3). Form <>( iillidftvit. .V 'J B42 Insitrauce Corj>oratio)ts Act. Beotloa (4) Such affiilavit may be sworn to before any porsjoii duly -i- authorized to administer oaths in any legal proceeding. Before rffldalit* Cf. section 47 (2), supra. may be Bworn. Securities (5) Until the interim receiver is discharged of his otlice, or previously ^ ' o > given by until new securities are taken from him by order of the Court, receiver to •* remain jn the securities given by him to the corporation and in force at the cesser of registry, shall continue in as full force and validity as if the corporation had continued to be registered. Under the next sub-section the securities given by the interim receiver as one of its financial officers to the corporation are to be filed in the Master's office forthwith after notice to the persons in whose custody, possession or power such securi- ties are: see paragraphs 5 and 6 of the affidavit, supra. The Master to issue his certificate of the filing and call in the securi- ties. Non-deliv- ery punish- able as a contempt. (6) On the filing of the documents specified in this section the Master shall issue to the interim receiver his certificate of the filing, and shall issue his order to the person or persons having in his or their charge, custody, possession or power the securities mentioned in the next preceding sub- section, to deliver the same forthwith at the Master's office to be filed, and on any refusal, neglect or delay to obey the order, such person or persons shall be liable to be committed for contempt of court as provided in section 58. By paragraph 6 of the affidavit of the interim receiver, supra, the persons to whom this order is to be directed are ascertained. Disobedience to the order of the Master to file the securities is a contempt. A motion to commit such defaulter may on two clear day's notice be made before a Judge of the High Court in Chambers: section 58 (2), infra. Appoiutnu'iit ((}ii1 Duties of Receive r.s. 34H Sections (7) If no such securities as mentioned in sub section 5, or if M(7). . M (i)-(a) the existing securities are not in the opinion of the Master, satisfactory or sufficient, the Master may order the interim s.curiticH receiver within a time hmited to give securities or to give other sccuViueH'*' or additional securities; and on the interim receiver's default ofsati"fac- compliance, the Master may remove him and appoint another 'Hint'ipn, interim receiver. The amount of the security required will vary according to circumstances. Usually security will be required to be given by the receiver and at least two sureties in double the amount of the probable annual rents of realty, and double the probable amount of personal estate, likely to come to his hands: Holmested and Langton, 219. Under sub- section 3 of section 5G, infra, the Master may accept as a receiver's security the bond of any guarantee company duly registered under this x\ct. 55. (1) The Master in and by his certificate of filing, or hy JJ^^^^j^"^^^ e.r jitirte order or otherwise, may appoint a place and a time, such J;5'rP^"j[*®,'J time being not less than twenty-one days from the date of the application certificate or order, at which time he will hear the application of the interim receiver, and Avill confirm the interim receiver in his office, or appoint another receiver, or make such other dis- position of the matter as shall appear proper. Until the receiver is discharged of his office the Registry Officer is a competent party for tak-ug or commencing or prosecuting any proceeding relative to a receiver or his sureties: section o6 (10), infra. r (2) Public notice shall be given by the interim receiver of Public ... -, -111 UOtlCJOf his application, and of the place and tun 3 appointed by the application 7 and of the Master for the hearing of the same ; such notice shall be pub- hearing. m 344 Insurance Corjnn'otion.s Act. Section! lislied in two issues of tlie (hitmin thizfttc, and once a week for . -^ L .' two weeks in u newspaper published in the count'* where the head oftice or chief otVice of the unregistered corporation is situ- ated, mid a copy of the notice shall be delivered to the Hem'islry Orticer at liis ottico at least ten days before the day appointed for the hearing of the application, and the notice shall be to the following effect : — r I 5; e o to Form (' notice IN8URANCE COHrOUATIONS ACT, IH'J'i. In tilt- lUnh Court of Just'ce, I)iviHion. In the matter of tlie [naming the corporation^ an unreKisterccl inuuraiice corporation. Take Notice, that C. D., interim receiver of the said corporation huH filed in the Master's office at an application to be confirmed in his office [or to be discliarj^ed of his office] as receiver, and that the Master has appointed phici', day and hour] for the hearing of the said application, at which place and time the Master will make such disposi- tion of the matter as shall appear proper. Dated at the C. D. day of 18 Cf. C. K. 110. Disiiosai of 36. (1) At the time and place appointed the Master may by^ Master, confirm the interim receiver in or discharge him of his office, or may appoint another receiver, or, generally, may make then or afterwards, such disposition of the matter as will best expedite the beneficial realization of the assets, the discharge of the lia- bilities, and the distribution of the surplus among the persons entitled. Cf. C. R. 119, 120. Powers of the Master, (2) The Master shall decide upon the security or securities to be given by the receiver, upon the mode and amount of his compensation, shall fix the times for the submission and passing of his accounts, shall settle advertisements deemed to be neces- sary, and schedules of creditors and contributories, direct tb*- ce a week for itj' wheiv the mtion is siUi- tlu' Hej^'islry appointed for all be to the »2. 1. iered inuuraiice lorporation \u\n )e confirmed in . anvi that the in>i of tlie said e such disposi- \Iaster may lis ofKce, or lake then or est expedite of the ha- the persons >r securities ount of his md passing be neces- direct tb*- Ajn>(i'nifnn'nt and Duties of Ufceircrs. .'Mo reali/.ation of assetw, the discharcfe of liabiHties and the distribu- 8«cuon tion ot the surpnis. and sliail uiak»' such ordt-rs and issue sueh — directions as shall best ctlV-ctuatf the provisions of this Act; and generally shall havi- all the powers which nii^dit be exercised on any reference to him under tv judgment or order of the High Court. In West V. Sinclair, (14 Jan. JH{)2), the Master in Ordinary held that under 58 Vic. c. 87 (Ont.), an ori<,qnal and special jurisdiction is f^iven to certain judicial oflicers who, therefore, come under the rules ^'overnin^' statutory powers conferred upon a jud^e or officer as perHaiui ficsif/ndfa. It has been held that in such case no jurisdiction other than that ^iven by the Act, or necessarily incident to it, can be exercised; and that statutes creating' special jurisdictions are not to be extended beyond the fan* import of the statutory ^'rant, and that presump- tions which are incident to the ordinary tribunals are not allowable in importing powers in the jurisdiction other than those specially t^dven by the Legislature. (8) The Master may accept as a receiver's security the bond^"^*"""^'!^ of any guarantee company duly registered under this Act. se'uriT Cf. Stokes in horns, L. R. 7 P. Div. 235; Seton, 4th ed., p. 426; Archbold's Practice in Judges' Chambers, 297. (4) The Master may appoint as receiver any trusts company Trusts approved by the Lieutenant-Governor in council and accepted as receiver. by the High Court as a trusts company. Cf. C. R. 191, re Toronto General Trusts Com- pany. The Trusts Corporation of Ontario has also been approved by the Lieutenant-Governor in ?3 S i li-ni ,1 I 34() Insurance Corporations Act. eM-(8) Council and accepted by the High Court as a trusts company. (5) Orders and certificates made by the Master under tliis Master's Act, sliall be appealable to a Judge of the High Court in like Appeal from decision. manner as other orders and certificates of the Master. dateT ^' (^) ^^ ^^^ ^^ ^*^^ inconsistent with the provisions of this Act, app^y ^" *^^^ Rules of the Supreme Court of Judicature shall apply to all proceedings under this Act. See C. R. 116-123. g O OQ ■i Books, etc. (7) The books, financial statements, schedules, accounts and of receiver ^ ' to be vouchers of every receiver under this Act shall be accessible ta accessible to Registry the Registry Officer, or to any person authorized under his hand and seal as is, in the case of friendly societies, enacted by section 45 ; and if any receiver refuses or neglects to afford such access, Penalty or if lie makes a wilfully false statement or untrue entry, he access"^'"^ shall be guilty of an offence as against sub-section 5 of section 30, all the provisions of which sub-section shall equally apply in the case of an offence committed against this sub-section. Upon summary conviction before any police magistrate, or justice of the peace, having jurisdic- tion where the offence was committed, the offender is liable to be imprisoned in the Central Prison, or in any gaol of the Province, with or without hard labour for a period not exceeding twelve months : section 30 (5) supra. Receiver to" deposit moneys in bank (8) Unless and until otherwise ordered by the Court, the receiver shall forthwith deposit in the bank prescribed by sub- section 2 of section 53, to the credit of the unregistered insur- ance corporation all moneys by him from time to time received, and, ten days before the time appointed for the passing of any account, he shall deliver a certified copy of the account to the Court as a ter under this Court in like iter. ns of this Act, ill apply to all , accounts and 3 accessible to ader his hand ted by section 1 such access, rue entry, he I 5 of section Lially apply in jction. my police g jurisdic- e offender Prison, or lout hard montlis : Court, the ibed by sub- tered insur- ne received, sing of any 30unt to the Appointment and Duties of Receicers. 347 Registry Officer at his office and obtain his receipt therefor ; and section within five days after the passing of any account, the receiver ' '' shall in like manner deliver to the Registry Officer a certified copy of the account as passed. The Registry Officer is a competent party for taking or commencing or prosecuting any proceed- ing relative to a receiver or his sureties: sub- section (10) of this section, infra. (9) In case of default by any receiver in leaving or passing Default of ... 1 •! Oil receiver in any account, or in making any deposit or payment, or oi laches leaving or or negligence in performing any other duty devolving upon the accounts, receiver by virtue of his office under this Act, or of any order or direction of the court, the Master either without motion, or on motion by the Registry Officer or any person interested, may deal with the receiver as provided in Consolidated Rule 123, or may remove the receiver and appoint another, or may make such other order as shall best eflfectuate the purposes of this Act. Cf. Consolidated Order (England), xxxv. 23. By Consolidated Rule 123, in default of com- pliance with a direction of the Master, the receiver may, on the passing of his accounts, be disallowed any salary or compensation for his services, and may be charged with interest upon his balances. « (10) Until the receiver is discharged of his office, the Regis- Jj^^'^^y try Officer shall be a competent party for taking or commencing party or prosecuting any proceeding relative to a receiver or his sureties. When a receiver has passed his final accounts," and paid his balances as directed by the court, an application may be made to discharge the bond; all parties interested are entitled to notice of the application: Brown v. Perry, 1 Chy. Ch. 253. . - ■4 It 5 m III 348 Insurance CorjwratiouH Act. Sections 67 (1).;2), g8(l ). On delault of interim receiver Master may appoint anotlier. ^9. (1) If the person or persons made intoi'iiii receiver by this Act or order liereunder, fail to comply with tlie provisions of section 58 within eight days after becomiu. — Corporations or incorporated Branches having in On- tario more than 2,500 members : {a) AppHcation for original registry, s. 12(1) 5 00 (/') Extension of time for making application. 3. 12 (2) 5 00 ((•) Certificate of Registry, original or renewed 25 00 {i\) Interim Certificate or extension of cer- tificate, s. 21 5 00 (() Revivor of Registry after suspension 10 00 ( /■) Change of name 10 00 Diiisiiin II. — Corporations deriving their powers from an J^-^P*^'g^^^j_ Act of Canada or from a document of authorization issued under I't^wereti by .\cta ot Thv Insnrnnrc Art of Canada. Canada. ^ 1. In the case of corporations deriving their powers from licensees, a license or document of authorization issued „ „ ,, K. a. C. c under The Inmnoire Art of Canada, except cor- 1-^- porations included in section 38 thereof, the fees shall be as follows : {(i) Application for initial registry, s. 12 $5 00 (h) Extensionof time for making applications. s. 12 (2) 2 00 ('•) Filing power of attorney in case of extra- Provincial corporations, s. 14 5 00 ((/) Change of attorney, s. 16 5 00 ((•) Certificate of registry, original or renewed 100 00 {/) Interim Certificate of Registry, or exten- sion of certificate, s. 21 5 00 (//) Revivor of Registry after suspension, ss. 6 (3), 44 25 00 {/>) Life Insurance Agent's Certificate of Agency, original or renewed 2 00 H.I.C.A. — 23 5 ■Q 2 15 r- o CQ V> /^^ 354 Insurance Corporations Ad. Section ;i'. In tlie case of corporations empowered under section 8S L. of I'lie Imnranri Act of Canada, the fees shall be tion''8''eni- aS follows : poweioil j^"^^'-'^^ . ((/) Application for initial registry, s. 12 S5 00 ^^■*' "■ '**^' (/') Extension of time for making application. 8. 12 (2) 2 00 /t4^ 00 (<) Certificate of registry, original or renewed. 7o 00 {f) Interim certificate of registry, or exten- sion of certificate, s. 21 5 00 (//) Revivor of rei^istry after suspension. ss. 6 (3) 44 20 00 (A) Life Insurance Agent's Certificate ot Agency, original or renewed 2 00 Corpora- j'. In the case of the corporations mentioned in sub -sections tious eui- ijDweredby 1, 2, and 4 of section 9 of this Act, the fees shall sundry . , -. . . i i. 7 other Acts be as lu sub-division 3 7> oi J >i vision 1 of this of Canada, section. Union** ^' ■"•" ^^^^ ^^^'^ °^ ^^■'^ corporations mentioned in sub-sections Insurance 3 of section 9 of this Act, the fees shall be as Societies. follows : . , {(() Application for initial registry '$2 00 (/') Extension of time for making p.pplication. s. 12 (2) 1 00 {(■) Filing power of attorney in extra-Provin- f^ial corporations, s. 14 2 00 ( of Pivision I of this societies. i)*a o section. > * " hici.sion IV. — Miscell'imous. IV. Miscel- laueous. Office copy of decision of Registry Officer $1 00 Certified copy of entry on register .'jO Copies of, or extracts] from documents filed with Registry Officer, per folio of 100 words 10 Examination of mortgages tendered as deposit under The ontdiin Insurtince Ad, for each mortgage 5 00 2 00 .... 2 00 sd. 5 00 m- . . . 2 00 44 3 00 «». (1) Section 72 of The Onturio Imunnicr Act ia amended J^^j^g-^^tat^ by adding thereto the following sub-section : amended. "(2) Where a policy on the premium note plan is made to two or more persons, the person whose name stands first on the register of policy holders, and no others shall be entitled to vote.' A similar rule prevails in share holding com- panies where stock is held in the name of two or more persons: 25 & 26 Yic. c. 89 {Companies Ict^ 1862, Imp.), s. 15, Schedule I, Table A (46); Thring, p. 319. The Ontario Insurance Act, section 81, makes the right of voting in meetings of mutual fire insurance companies a personal franchise exer- cisable only by such members "as attend for that purpose in their own proper persons;" consequently no corporation can vote at such meetings. Also sub-section 1 of section 5 of the said Act is amended by aisob.5(1) amendti striking out the word " nine " in the third line, and inserting the word " fifteen " in lieu thereof. ! :5 ;-i.5() Inmirance Corj)ur(ition.s Act. Section 63. hi g AIho. s 130 (2) aiiituided. Kov. Stat, c. 172, -^.l, anioiulod. s. 17 re- liealed. The nunil)t,*r of directors that any ooiupany incorporated under The Oktario Iiisurdiuc Act uiay have is now fixed at fifteen. Also sub-section 2 of section 180 of the said Act is luneiitled by striking' out all the words after " tiust money " and insertiiii^ in lieu thereof the following words : "or shall remain deposited at interest in the name of the company in a chartered bank of Ontario, or in any building society or loan company in Ontario, by an Act of Ontario or of the Dominion of Canada duly author- ized to receive deposits." Cf. xitimi, s. 20 (2). Also section 1 of '/'/eale<1. 857 Tlie certiticatu of tho Kc^'istrur of Fiioiidly ^Jj^"* ♦Societies as to any society within the intent of ~ TJie Insurance Coi'iiorationH Act, 189^, is, subject to appeal, conchisive of the right of the society to undertake contracts of insurance in Ontario. (2) All Acts or parts of Acts inconsistent with this Act are Ii'cohsIh- ^ ' '■ tent prd- lierebv repealed. » visions SUMMARY Ok ENAfTMENTH AMENUKIi OK RkI'KALKI> IIY THE iNSl'ltANtK CoKFORATIONS Act, 1892. (55 Vic. c. 3'J.) 55 V. c. 39, Ameni.- EXACTMENTS AMENDED OR REPEALED. ISO OR ReI'EAMNU Same. R. 8. O. 1887, c. 107, s. 3 (2) amended by Sectiou 27 (7) s. 5(1) " " «3 (1) 8. 20 repealed by " 24 (3) 8. 22 " '• 24(3) 8. 23 '• " 24 (3) 8. 65 •• " 27(7) 8. 50 " " 27 (7) 8. 72 amended by " 03(1) s. 100 repealed by " 28 (2) 8. 130 (2) amended by " 03 (1) c. 172, 8. 1 " " 03(1) 8. 11 superseded by " 37 (1) read with 03 (2) 8. 17 repealed so far as re- lates to any friendly society within the in- tent of the Insurance Corporations Act " 03(1) 8. 19 (1) amended " 24 (3) SlVic.c. 22, 8. 1 repealed " 37(2) 8. 2 " " 37 (2) • 8. 3 amended " 37(2) s. 4 repealed " 37 (2) All prior enactments inconsistent with The Insurance Corjiorations Act repealed -. " 03 (2) 5 uj :; vj s APPENDIX A. SUBSIDIARY ACTS (as apkected bv .suusE«nENT knactment-s) WITH ANNOTATIONS : 1.— R. R. O. 1H87, c. 130 (as amended or affected by Hubsequeut enact- ments), An Act to secure to wives and chiklren, the Benefit of Life /«««raHct'.— Applicable to all contracts of Insurance, (Life, Accident, dtc), based on the expectation of human life, whether made by Insurance Companies, or by Friendly Societies. 2.— R. S. O. 1887, c. 167, sections 114-119, Statutory Conditions and Pro- visions relating thereto, together with subsequent auxiliary or declaratoryenactments,— Applicable to all Fire Insurance Con- tracts whatsoever in Ontario. 3^ .a •5 g Mj 5:. S.i OQ %» APPENDIX A. E. S. 0. 1887. c. 136, AS AFFECTED BY SUB- SEQUENT ENACTMENTS. An Act to Secure to Wives and Children the Benefit of Life Insurance. 1. The provisions of tliis Act shall apply to every lawful contract of insurance in writing now in force or hereafter effected which is based on the expectation of human life, and shall include life insurance on the endowment plan as well as every other, and shall also extend to the said contracts of insurance where any declaration indorsed thereon or attached thereto, though made before the 25th day of March, 1884, would have been or be within the operation and provisions of this Act, if the same had been' made subsequent to the said date. 47 V. c. 20, s. 1; 48 V. c. 28, s. G. Cf. Swift V. Provincial Provident Institution, 17 A. R. C6; but see section 37 (1) page 274, sui>ra ; 51 Vic. c. 22 (Ont.) ss. 1 and 2, repealed by section 37 (2) suprn. *2, It is hereby declared to have been lawful for any person on or before the 18th day of September, 1866, to endorse upon or attach to any policy of insurance on his life effected and issued before the 18tli day of September, 1865, whether the policy was issued before or after marriage, a written declaration that the insurance was for the benefit of his wife, or of his wife and children, or of his wife and some or one of his children, or of his children only, or of some or one of them, and to apportion the amount of the insurance money as he deemed proper where the insurance was declared to be for tlie benefit of more than one. 47 V. c. 20, 8. 2. R. S. 0. 1887,c. 136. s.l.amend- ed by 63 Vic. c. 39, s. 1. Applica- tion of Act. S. 2. lusurauces effected be- fore 18th April, 1&G5. might within oue year be declared in favour of wife and children- 3** :5 362 Insurance Corporations Act. "Wife" and "children" are interpreted by section?. If the person assurc^d under a policy in existence prior to 18th Sept., 1865, did not, on or before the 18th Sept., 1866, make a declaration as to the policy, he may do so now under section 5 {infra), s. 3 3« Any person may insure his life for the whole term thereof, or for Persons auy definite period, for the benefit of his wife, or of his wife and for the ^^ children, or of his wife and some or one of his children, or of his children benefit of only, or of some or one of them, and, where the insurance is effected for children, the benefit of more than one, he may apportion the amount of the insur- ance money as he may deem proper. 47 V. c. 20, s. 3. B. 4- 4. The insurance may ba effected either in the name of the person How iusur- whose life is insured, or in the name of his wife, or of any other psrion be effected, (with the assent of such other person) as trustee. 47 V. c. 20, s. 4. 1 C:' E O »-. 00 1- ■I, Vj B. 6 (1), as amended by 53 Vic, c. 39, B. 2. Insured may de- clave policy for the benefit of wife and children. a, (1) In case a policy of insurance effected by a man on his life is expressed upon the face of it to be for the benefit of his wife, or of his wife and children, or any of them, or in case he has heretofore endorsed, or may hereafter endorse, or by any writing identifying the policy by its number or otherwise, has made or may hereafter make a declaration that the policy is for the benefit of his wife, or of his wife and children, or any of them, such policy shall enure, and be deemed a trust for the benefit of his wife for her separate use, and of his children or any of the.n, according to the intent so expressed or declared, and so long as any object of the trust remains, the money payable under the policy shall not be subject to the control of the husband or his creditors, 'or form part of his estate when the sum secured by the policy becomes payable; but this shall not be held to interfere with any pledge of the policy to any person prior to such declaration. 47 V. c. 20, s. 5. See Scott, ct al. v. Scott, 20 0. R. 313; re Lynn, Lynn v. The Toronto General Trusts Co., 20 0. R. 475; Mingeaud v. Packer, 21 O. R. 267 ; re Cameron, 21 0. R. 634. "Wife" and "children" are interpreted by section 7 infni. The declaration may be in the following form: "Know all men by these presents, that I, A. B., the person assured by policy number , issued by the Insurance Company, do hereby, pursuant to the statute in that behalf, declare that such policy shall be for the banefit of {net out names of intended beneficiaries, and otiier jiarticulars, as) my wife {name), and my children {namimi the children) or, my children of my present marriage {natitintj them) ar, my children of my former and present Appendix A. S6S action 7 . If I'ior to 18 th 866, make a der section 5 marriages {namimj tlum) as the cost' mai/ he, in the following pro- portions : Dated this day of A.D. 189 . A.B." thereof, or for his wife and of his children is effected for t of the insur- of the person y other person . 20, 8. 4. on his life is wife, or of his •fore endorsed, e policy by its a declaration and children, trust for the en or any of d so long as er the policy creditors, *or icy becomes )ledge of the s. 5. in, Lynn v. ingeaud v. Wife" and declaration by these icy number Company, eclare that iif intemh'd ), and my ay present nd present (2) In the case of a policy or written contract of life insurance a. 6 (2), effected before marriage, a declaration under this section shall be, and hy^M yig shall be deemed to have been as valid and effectual as if such policy or c. 39, s. contract had been effected after marriage, but nothing herein contained 2 (2). shall affect any action or proceeding now pending. Passed in consequence of the decision in Toronto General Trusts Co. V. Sewell, 171 0. R. 442. 1. (2) In the principal Act (R. S. O. 1S87, c. 136) and in this Act 83 Vic c. "maturity of the policy" or "maturity of the contract" meani. the ' ^" . ^ '' happening of the event or the expiration of the term at which the benefit of the liolicy, meauiiig of under the policy or contract accrues due. 3. (1) When a contract of life insurance is effected by an unmarried 53 Vic. c. man, for the benefit of his future wife, or future wife and children, but *^'®" ^**' the contract does not designate by name, or otherwise clearly ascertain f^v benefit a specific person as such intended wife, the contract (not being within of future the intent of sub-sections 2 or 3 hereof) shall be construed as provided in section 7 of the principal Act. (2) When a contract of life insurance is effected as in sub-section 1, y6t'/. s.3(2) but at the maturity of the contract the insured is still unmarried, or is a widower without issue, the insurance money shall fall into, and become part of the estate of the insured. (3) When a contract of life insurance is effected by an unmarried //-/.j (2) Whatever, under the principal Act, a man may lawfully do in respect of insurance effected upon his life, may also, under the like circumstances, be done by a woman in respect of insurance effected upon her life, and the like rules of construction shall prevail. 6. (1) The insured may by an instrument in writing attached to or indorsed on, or identifying the policy by its number or otherwise, vary a policy or a declaration or an apportionment previously made so as to restrict or extend, transfer or limit the benefits of the policy to the wife alone, or the children, or to one or more of them, although the policy is expressed or declared to be for the benefit of the wife and children, or of the wife alone, or for the child or children alone, or for the benefit of the wife for life, and of the children after her death, or for the benefit of the wife, and in case of her death during the life of the insured, then for the child or children, or any of them, or although a prior declaration was so restricted ; and he may also apportion the insurance money fimong the persons intended to be benefited ; and may, from time to time, by an instrument in writing attached to or endorsed on the policy, ./ / or referring to the same, alter the apportionment as he deems proper ; he may also, by his will, make or alter the apportionment of the insur- ance money ; and an apportionment made by his will shall prevail over any other made befoi'e the date of the will, except so far as such other apportionment has been acted on before notice of the apportionment by the will. (2) This section applies to policies heretofore issued, as well as to fufure policies. .50 V. c. 7, s. 14. Scott V. Scott, 20 0. R. 313; re Cameron, Mason v. Cameron, Ch. Div. Feb. 1892, 21 0.ii. 634 ; z.' Lynn, Lynn v. Toronto General Trusts Co., 20 0. R. 475 ; Mingeaud v. Packer, ct ah, 21 0. R. 267 ; see also, Portland v. Topliam, L. R. 11 H. of L. 54; Thacker V. Key, L. R. 8 Eq. 414 : The assured may at pleasure vary the trusts and reapportion the policy moneys, always subject to this reservation, however, that he cannot so deal with the trusts under the policy as to convert them into resulting trusts for himself. 53 Vic. c. 39, s. 6. Life insuT' aiice for benefit of moiher. Insurance moneys to be a trust for the mother a. Any person, either by the original contract of life insurance, or by indorsement thereon or otherwise, as provided in section (J of the Principal Act, may make his or her mother a beneficiary or the sole beneficia."y, under the contract, and may, as in the said section provided, vary the itpportionment; and such contract shall create a trust in favor of the mother accordingly; and the moneys payable to the mother under any such contract shall not, so lo.ig as the trust remains unperformed, form part of the estate of the insured or be subject to his or her debts. Appetulif A. 8()5 lawfully do in under the like ce effected upon attached to or otherwise, vary made so as to [icy to the wife ;h the policy is nd children, or r the benefit of »r the benefit of B insured, then •ior declaration 3urance money y, from time to d on the policy, deems proper ; nt of the insur- lall prevail over tr as such other )ortionmeut by I, as well as to I V. Cameron, ronto General 210.R.267; 54; Thacker easure vary lys subject to al with the mlting trusts insurance, or 3tion () of the ry or the sole jtion provided, trust in favor mother under unperformed, r her debts. 7. (1) Where no apportionment is made, all persons entitled to be benefited by the insurance shall be held to share equally in the same; and where it is stated in the policy or declaration that the insurance is for the benefit of the wife and children <^enerally, or of the children generally, without specifying the names of the children, the word "children" shall be held to mean all the children of the insured living at the maturity of the policy, whether by his then or any former wife, and the wife to benefit by the policy shall be the wife living at the maturity thereof. For definition of "niuLurity of the policy," see 55 V. c. 39, s. 2 (15) sKjini. Soe Dale v. Ontario Mutual Life, in Chambers, Dec. 15, 1891, as to two Avomen claiming each to be wife of assured. In Mearns v. Ancient Order of United Workmen, the assured while a widower with two children made the policy pay- able to his "legal heirs." On a special case stated (before Ferguson, J., April 19, 1892), held that the children took the entire fund to the exclusion of the plaintiff who married the assured subsequently. (2) Any such policy may be surrendered or assigned (a), where the policy is for the benefit of children only, and the children surviving are all of the full age of twenty-one years, if the person insured and all sucli surviving children agree to so surrender or assign ; or (//) Where the policy is for the benefit of both a wife and children, and the surviving children are all of the full age of twenty-one j^ars, if the person insured, and his then wife (if any) and all such surviving children agree to so surrender or assign ; or ((•) Where the policy is for the beilefit of a wife only, or of a wife and children, and there are no children living, if the person insured, and his then wife agree to so surrender or assign. 47 V. c. 20, s. 7; 4S V. c. 28, s. 1. §. Where an apportionment, as in sections 2, 3 and fi provided for, has been made, if one or more of the persons in whose favour the appor- tionment has been made die in the lifetime of the insured, the insured may, by an initrument in writing, attached to or endorsed on, or other- wise referring to and identifying the policy of insurance ; declare that the share formerly apportioned to the person so dying shall be for the benefit of such other person or persons as he may name in that behalf, not being other than the wife and children of the insured, or one or more of them ; and in default of any such declaration, the share of the person so dying shall be the property of the ins'ired, and may be dealt with and disposed of by him as he may see fit, und shall at his death form part of his estate. 47 V. c. ^.0, s. 8; 48 V. c. 28, s. 5. R. S. 0. C. 136, 8. 7. Where no npiiortioii- !i:i'iit is iiiado 4 2 •5 : s. 8. Provision as to sbaro of any beuertciary dying where apportion- ment made. mi) Insurance Corporations Act. R. s. 0. <\. 136, B. 9. Provision in case of death of pevnons entitled wdere no apportion- ment made. Apportion- ment after death of all persons entitled. 9. Where no apportionment, as in sections 2, 'A and 6 provided fur, has been made, if one or more of the persons entitled to the benefit of the insurance die in the lifetime of the insured, and no apportionment is subsequently made by the insured, the insurance shall be for the benefit of the su'-vivor, or of the survivors of such persons in equal shares if more than one ; and if all the persons so entitled die in the lifetime of the insured, the policy and the insurance money shall form part of the estate of the insured; or after the death of all the persons entitled to such benefit, the insuved may, by an instrument executed as aforesaid, make a declaration that the policy shall be for the benefit of his then or any future wife or children, oi some or one of them. 47 V. c. 20, s. 9; 48 V. c. 28, s. 5. M. effected a policy on his life for benefit of a daughtei" who married plaintiff, and predeceased M., bequeathing ner interest in the policy to plaintiff. M. married defendant and died intestate. Held, affirming the judgment of Ferguson, J., 10 0. R. 283, that the insurance money formed part of the personal estate of M., and as such was payable to the defendant. Wicksteed v. Munro, 13 A. R. 486. 3: \- o CQ v^ jQ 10* (1) When the insurance money becomes due and payable, it Insurance shall be paid according to the terms of the policy, or of any declaiation money not or instrument as aforesaid, as the case may be, free from the claims of ■creditors, any creditors of the insured, except as herein provided. (2) Where the insurance money, or part thereof, is for the benefit, [u whole or in part, of the children of the insured, and the children are mentioned as a 'lass and not by their individual names, the money shall not be payable to the children until reasonable proof is furnished to the company of the number, names and ages of the children entitled. 47 V. c. 20, s. 10. s. 11. Appoint- ment of trustees. II. The insured may, by the policy or by his will, or by any writing under his hand, appoint a trustee or trustees of the money payable under the policy, and may from time to time revoke such appointment in like manner, and appoint a new trustee or new trustees and make provision for the appointment of a new trustee or new trustees, and for the invest- ment of the moneys payable under the policy. Payment made to such trustee or trustees shall discharge the company. 47 V. c. 20, s. 11. On the appointment of a trustee to receive insurance moneys for infant, see re Thin, 10 1 . R. 490. The following form of appointment may be used : Appendix A. MSI 1 provided fur, the benefit of ipportionment all be for the sons in equal led die in the ney shall form ,11 the persons it executed as the benefit of them. 47 V. aughtei' Avho ner interest It and (lied uson, J., 10 the i:,ei'sonal defendant. d payable, it ly declaiation the claims of the benefit, children are money shall nished to the Ititled. 47 V. any writing' ayable under ment in like ,ke provision r the invest- lade to such s. 11. ice moneys Iff form of I, A. B. , the person insured by poHcy nmnber issued by the Insurance Company, do hereby, pursuant to the statute in that behalf, appoint and ■ trustees to receive all money-s payable under said poHcy to my children who may be under age when the same becomes payable Witness: i Executed in duplicate this ) day of 180. 12. If no trustee is named in the policy, or appointed as mentioned R- S. 0. in section 11, to receive the shares to which infants are entitled, their '^''^ shares may be paid to the executors of the last will and testament of tnisteo the insured, or to a guardian of the infants duly appointed by one of 1'?"^ 'i'"^^"*^ the Surrogate Courts of this Province, or by the High Court, or to a I'f infants. trustee appointed by the last named Court, upon the application of the ^<-;;C-*.^ wife, or of the infants or their guardian ; and such payment shall be u ^ good discharge to the insurance company. 47 V. c. £0, s. 12. See ^lerchants Bank v. Monteith, e,v jxtrte Standard Life Ass. Co., 10 P. R. 588. The following provisions govern the payment of life insur- ance moneys where the beneficiary is resident elsewhere than in Ontario: d'/6 R. s. 0. 1887, c, 167, 8. 137 (1). as amended by 51 Vic. c. 25 and by 52 Vic. c. 32, s. 7. 137. (1) Where, under a policy of life insurance issued by an insur- ance company 'hose head office is in this Province, the money is pay- able to the representatives of a person who at the time of his death was domiciled or resident in any part of the Dominion of Canada other than Ontario and Quebec, or in the Province of Newfoundland, and no person has become his personal representative in this Province, the money may, after the expiratiim of two months after such death be paid to the personal representative appointed by the Court of the Province in which the deceased was resident or domiciled at the time of his death ; provided it appears upon the probate or letters of administration, or other like document of such Court, or by a certificate of the Judge under the seal of the Court, that it had been shewn to the satisfaction of the Court that the deceased at the time of his death was domiciled or resident at some place within the jurisdiction of such Court. (a) Where the policy provides that the insurance money may be paid (a) added to the persom^l representative appointed by the Court of the Province in ^V^} Vic. which the dectased was resident or domiciled at the time of his death, the money may be paid to such representative accordingly at any time after the dpath aforesaid, or according to the terms of the policy. I (■a :3 C. 25. 8()8 1)1 fill }'(if tee Corporations Aet. (b) added by 62 Vic. c. 32, s. 7. (h) Where, uniler a contract of life insurance mado in this Pi'ovince, tlie insurnnco money is payable to the representatives of a person who, at the time of his death, was domiciled in the Province of Quebec, and died intestate, the money may — after the expiration of three months after such death, if no person has become his personal representative in this Province — be paid to the person or persons entitlexl, according to the laws of the Province of Quebec, to receive the money and give a discharge for the same, if such money were by the terms of the contract payable in Quebec. Cf. Boyce v. Pluunix Mutual, 14 S. C. R. 723 ; Pritcliar.l v. Stantlard Life Asso., 7 0. R. 18H. (CI added by 62 Vic. c. 32, s. 7. {(•) Where, in the case of a contract such as in sub-division {h) men- tioned, the deceased disposas of the money payable under the contract by a will, valid according to the laws of the province of Quebac, then such money may be paid at any time after death, or according to the terms of the contract in that behalf, to the person or persons entitled under such will to receive and give a valid discharge for money payable in Quebec. o OQ OQ V> m s. 137 (2). (2) This section applies to policies heretofore issued as well as to policies to be issued hereafter, and whether the death has occurred before the passing of this Act or not. 50 V. c. 7, a. ]0. R. S. 0. 13. Any trustee named as provided for in the last preceding two c. 136,8. 13. sections, and any executor or guardian may invest the money received Invest- in government securities, or municipal debentures, or in mortgages of shares of real estate, or in any other manner authorized by the will of the insured, infants. q^ ^^y the Act respectinrj Trmteeg and Executors and the administration of Extuten, and may from time to time alter, vary and transpose the invest- ments, and apply all or any part of the annual income arising from the share or presumptive share of each of the children, in or towards his or her maintenance and education, in such manner as the trustee, executor or guardian thinks tit, and may also advance to and for any of the children, notwithstanding his or her minority, the whole or any part of the share of the child of aud in the money, for the advancement or preferment in the world, or on the marriap;e of such child. 47 V. c. 20, s. 13. The Truster Act 1891, 54 V. c. 19 (Ont.), repeals, s. 30 of R. S. 0. 1887, e. 110, and makes new provision for the invest- ment of trust funds. Compare /«.s-. (\irp. Aet, sections 29 (2) G3 (1). Append Lv A. 369 Pritchanl v. 14. A fiuardiau t.ppointecl undei' section 12, Bhall give fieourity to the satisfaction of tlieCourtor Ju(lj«efor the faithful performance of his duty a-) fiiuvrdian, and for tlie proper appliction of the money which he may receive. Where the amount of the insurance money payable to a guar- dian of infants does not exceed §400, and probate is sought in respect of a will for the sole purpose of obtaining insurance money to an amount not exceeding 8400, the fees payable on the appointment of said guardian or executor shall be 84 and no more, and such fees shall be regulated in the manner jn-escribed by section GU of The Surrogate Coiirtu Act. 47 V, c. 20, 8. 14. On security, see re Thin, 10 P. R. 490, 8. 14. Security by guardian. Fees where iu- Ruraiice tiot more tbau i^lOO. Kev. Htat. c, 00. Court. \!i, (1). If there is no trustee, executor or guardian competent to re- b. 15 (1). ■ceive the share of any infant in the insurance money, and the insurance power to company admit the claim, or any part thereof the company at any time to^j}!?'"* after the expiration of two months from the date of their adiuission of the mouey iuto c'aim, or part thereof, may obtain an order from the High Court for the jiayment of the share of the infant into Court ; and in such case the costs of the application shall be paid out of the share (unless the Court otherwise directs), and the residue shall be paid into Court pursuant to the order ; and such payment shall be a sufficient discharge to the com- pany for the money paid ; and the money shall be dealt wit'i as the Court may direct. 47 V. c. 20, s. 15. McElheran v. The London Masonic Mutual Benefit Assoc, 11 P. R. 181, a case of interpleader as to amount due by a bene- fit society. X 5 (2) If the company does not within four months from the time the g. jg (2). claim is admitted, either pay the same to some person competent to receive the money under this Act, or pay the same into the High Court the said Court may upon application made by some one competent to receive the said money, or by some other person, on behalf of the infant, order the insurance money, or any part thereof, to be paid to any trustee, executor, or guardian competent to receive the same, or to be paid into Court to be dealt with as the Court may direct, and any such payment shall be a gojd discharge to the company. . {o shall apportion among the parties entitled any sum directed to be paid, and shall give all necessary directions and relief. 47 V. o. 20, «. 11>. Cf. Campbell v. National Life Ins. Co., 34 U. C. R. 35; see also Fraser v. Phoenix Mutual Life Ins. Co., 3G U. C. R. 122. "20, The provisions of sections 12, 15 and ID of this Act, shall extend, b. 20. and are hereby declared to have been intended to extend, and apply to Applica- cases where the insured died before the 25th day of March, 1884, as well I2,l5aiuliu as to cases arising subsequent thereto. 48 V. c. 28, s. 4. *Il, No declaration or apportionment affecting the insurance money, s. 21. or any portion thereof, nor any appointment or revocation of a trustee ^"^'^o o' made after the 25th day of March, 1884, shall be of any force or effect otc. re- as respects the company, until the instrument or a duplicate or copy ''"""' " thereof, is deposited with the company. Where a declaration or endorsation has been heretofore made, and notice has not been given, the company may, until they receive notice thereof, deal with the insured or his executors, administrators or assigns, in respect of the policy, in the same manner and with the like effect, as if the declaration or endorsation had not been made. 47 V. c. 20, s. 20. 'i*!. If the policy was effected and premiums paid by the inaufed, s. 22. with intent to defraud his cre.iitors, the creditors shall be entitled to Fraud in receive out of the sum secured, an amount equal to the premiums so J,'f'p"em' paid. 47 V. c. 20, s. 21. imna. *iS» Nothing contained in this Act shall be held or construed to s. 23, restrict or interfere with the right of any person to affect or assign a policy for the benefit of hia wife or children, or some or one of them, in any other mode allowed by law. 47 V. o. 20, s. 22. Act not to atfect order modes of assign- ment. 24. Where all the persons entitled to be benefited, whether by orginal insurance, by written declaration, or variation or instrument of apportionment, under any policy, are of full age, they and the person insured may surrender the policy, or assign the same, either absolutely or by way of security. 47 V. c. 20, s. 23. . 8. 24 as amended by 81 Vic. 0. 22, B. 4, and by 63 Vic. c. 89, s. 8. Power of assured and adults to deal with policy :i 5 372 Insurance Corjwrations Act. I 0- I £; o OQ ^j s. 20, aB amended byOJ Vic. 0. 39, B. 7. Who civuiiiod porrtoii oti- tltled to liuiiotlt of policy for purp'iKosof Hoctioii 21. *i.\, Wliore any pilioy of lnnir.\a33, or tin djclftratioii onJoised up:)it or nttached to, or i.le'.itifyin { by its lui.nbor or otlierwiso, any policy of insiirauco to which this Act applies, wliether 8ii:h cleciaration Ims ii trotoforo bejii, or Hliall hero.vftor l)j imvrle, provides that the policy shall hi! for the benefit of a pjrtj')n, an 1 in tlio event of tho death of such porHon, for the beneiu of another person, Biich first mentioned person shHll. if livin;^, bo deemed for tho purposes of section 24 of this Act, tiie person e)ititled to be benefited under such policy. iS V, c. 2!^, a. 2 ('2) This section shall apply to policies heretofore issued as well as to future ))olicie8. R. 8. O. 1887, c. 107 {The Ontario Insurance Act) sections 114-119; STATUTORY CONDITIONS. AND PROVISIONS RELATING THERETO. R. 8. 0. c. 167. Statutory concUtious to be part of every contract unless variel. Applicable to all fire insurance contracts whatsoever in Ontario. See notes under section 83 (1) of TJf Insnrnm-e Corpoiatiom Art, s}l]>rrjior(itioni i a^ainat the lied, written or otherwise )r in transit icy with the rary, or pro- iding on the sections 115 acts: -^ - ■ ix has limited Efected bj- sub- '9i, and fuller HJJ. (1) Where any insuninee contract made by any cor- ini. Corp. poration whatsoever within tho intont of section 2 of tliis Act(ii. ' is eviilenced by a sealed or written instrument, all tho terms '•'"«■">•'■ ''to. ' of (•(iiitriiot and conditions of tho contract shall be set out by tho corporation invalid un- in lull on the face or back ol the instrument forniinj^ or evidenc- 1" full, ini,' the contract; and iniless so set out, no term of, or comhtion, stipulation, warranty or [iroviso moihfying or impairing tho ottectof any such contract niaile or renewed after th'j commonco-' mentof this Act shall bj j;ood or valid, or admissible in »;videnco to the prejudice of the assured or beneficiary. Provided also tlrit nothing in sub-sections 1, 2 and H of I'loviao. this section contained shall bo leemed to impair tho effect of the provisions contained in sections 111 to llH inclusive of 'i'lif Ontiirin hisiinnicr .let, or the effect of the provisions contained in j-ection 5G of an Act passed in the fifty-second year of Her Majesty and chaptered HH. The latter Act here referred to enacts conditions binding contracts for the insurance of live stock. Statutory condition 2, inj'ri, in effect, makes the applicuuon for insurance part of the contract, so far as description and particulars of the property are concerned ; but nothing amounting to a variation, addition, or omission, or stipulation contrary to the Statutory Conditions can be imported into the contract riit the application. This T/n- In-^nrnncc ( 'nip'ir itioxx Ait leaves unaltered. .^tatutoru Conditions. As provided by section 114 of 'J'/ir Ontinin Insurunc Art (see sni)r.i), the following 28 Conditions bind, as against the insurer, every contract of fire insurance, sealed, written or oral, entered into or renewed, or otherwise in force in the Province of Ontario. If the insurer desires to vary or omit any of these conditions, or to add new conditions, it must be done as prescribed by section 115 of 77/(' Ontario Imuntme Act; see infra. The effect of not 374 Insurance Coiyorations Act. i Vj printing the Statutory Conditions upon the instrument of con- tract, or printing upon the contract different conditious, except as permitted by the 115th section, is to make the contract, as against the insurer, subject to the Statutory Conditions only. Parsons v. Citizens, L. R. 7 App. Ca. 96. -,. . I. If any person or persons insures his or their buildings or goods, eentation and causes the same to be described otherwise than as they really are, oromission ^^ ^^^q prejudice of the company, or misrepresents or omits to communi- cate any circumstance which is material to be made known to the company, in order to enable it to judge of the risk it undertakes, such insurance shall be of no force in respect to the property in regard to which the misrepresentation or omission is made. See notes to section 83 (2) of The Insurance Coqiorations Act, "Which is material." The Insnnince (Joriiorationn Act, s. 33, (2), s'^e supra — now enacts: Ins. Corp. Act, s. 33 (2). Contract] not to be invalidated by erron- eous state- ment in application unless material. (2) No contract of insurance made or renewed after the com- mencement of this Act shall contain, or have endorsed upon it, or be made subject to any term, condition, stipulation, warranty or proviso, providing that such contract shall be avoided by reason of any statement in the application therefor, or inducing the entering into of the contract by the corporation, unless such term, condition, stipulation, warranty or proviso is limited to cases in which such statement is material to the contract, and no contract within the intent of section 2 of this Act shall be avoided by reason of the inaccuracy of any such statement unless it be material to the contract. The proviso cited above under sub-section (1) applies also to this sub -section. As to determining what is material — that is to say, whether this is a question of law for the Judge or of fact for the jury, — our Courts have held that materiality is a question for the jury. Parsons v. Citizens Ins. Co., 43 U. C. R. 271; Klein v. Union Ins. Co., 3 0. R. at 256 ; Samo v. Gore District Ins. Co., 2 S. C. R. 411 ; so that the following provision of Tiu InHuruncc Voqiorntinns Act, s. 33 (3), only declares the law as settled by the foregoing and other cases : nent of con- iioiis, except contract, as itioiis only. ngs or goods, ey really are, to communi- nown to the iertakes, such in regard to mitions A rt, >• Act, s. 33, er the corn- ed upon it, 1, warranty avoided by )r inducing mless such limited to itract, and Qt shall be statement ies also to y, whether le jury,— : the jury. V. Union 2S. C.R. >r})ortithtns foregoing Appendix A. ' 375 (3) The question of materiality in any contract of insurance Avhatsoever shall be a question of fact for the jury, or for the court if there be no jury; and no admission, term, condition, stipulation, warranty or proviso to the contrary, contained in the application or proposal for insurance, or in the instrument of contract, or in any agreement or document relating thereto shall have any force or vahdity. tl. After application for insurance, it shall be deemed that any Policy policy sent to the assured is intended to be in accordance with the terms deemed as of the application, unless the company points out, in writing, the par- applied for ticulars wherein the policy differs from the application. This condition has been judicially considered in a number of cases. Among the most recent is Smith v. City of London Ins. Co., 14 A. E. 328, affirmed by Supreme Court (1888) 15, S. C. R. 69. As to the effect of the Iiisuranci' Corporations Act upon the ■condition, see note to Statutory Condition 1. 3. Any change material to the risk, and within the control or know- ledge of the assured, shall avoid the policy as to the part affected thereby, unless the change is promptly notified in writing to the company or its local agent ; and the company when so notified may return the premium for the unexpired period and cancel the policy, or may demand in writing an additional premium, which the assured shall, if he desires the con- tinuance of the policy, forthwith pay to the company ; and if he neglects to make such payment forthwith after receiving such demand, the policy .shall be no longer in force. "/!«// Chfaif/c.'' "Change" here means increase of risk. Gill V. Canada Fire and Marine Ins. Co., 1 0. R. 341, per Boyd, •C., following Wilson, C.J., in Ottawa Forwarding Co. v. Liver- pool, etc. Ins. Co., 28 U. C. R. 522. " Material to the rish-.'" This Statutory Condition cannot be so varied under section 115 of the Ontario lnsur((nic Act as to omit these qualifying words; Butler v. Standard Fire Ins. Co. 4 A. R. 391, affirming Spragge, C, (26 Grant 641); as to the determination of the question of materiality, see notes to Statutory Condition 1. variance pointed out. a When a J change as to risk S shall avoid 2 a policy. Notice of change.etc. 376 Insurance Corporations Act. Oh&nge of property. 4t If the property insured is assigned without a written permissioir endorsed hereon by an agent of the company duly authorized for such purpose, the policy shall thereby become void ; but thi] condition does not apply to change of title by succession, or by the operation of the law, or by reason of death. M ■i •« 1 g ■M C '^> 1 1 % ( ■•.. U; I) '* c' C:' ^ c ^^ ^. yi E •^' ■' O ;>!, •»-< ^ •L to •ki Partial damage- salvage. Money, securities, etc. 5. When property insured is only partially damaged, no abandonment of the same will be allowed unless by the consent of the company or its agent ; and in case of the removal of property to escape conflagration , the company will contribute to the loss and expenses attending such act of salvage proportionately to the respective interests of the company or companies and the assured. "Ao abandonment of the same trill he tdloxced,'" etc. But by- taking "the disposition, control, occupation, or possession of the insured property, or of the remains or salvage thereof," the insurer (in the absence at all events of special agreement to the contrary) will be held to have either undertaken reinstate- ment or accepted abandonment of the property. Insurance Corporations Act, s. 33 (4), see snpr(i with notes thereon. 6. Money, books of account, securities for money, and evidences of debt or title are not insured. •7. Plate, plate glass, plated ware, jewelry, medals, paintings, sculp- QQ Plate, paintings, clocks, etc. tures, curiosities, scientific and musical instruments, bullion, works of art, articles of vertu, frescoes, clocks, watches, trinkets and mirrors, are not insured unless mentioned in the policy. Prior or 8, The company is not liable for loss if there is any prior insurance insurance ^^ ^^~^y other company, unless the company's assent thereto appears herein or is endorsed hereon, nor if any subsequent insurance is effected in any other company, unless and until the company assents thereto, or unless the company does not dissent in writing within two weeks after receiving written notice of the intention or desire to effect the subsequent insurance, or does not dissent in writing after that time and before the subsequent or further insurance is effected. Case of assent to other iusurance. 9. In the event of any other insurance on the property herein described having been assented to as aforesaid, then this company shall, if such other insurance remains in force, on the happening of any loss or damage, only be liable for the payment of a ratable proportion of such loss or damage without reference to the dates of the different policies. 11 permissioiT ized for such ondition doea •ation of the ibandonment mpany or its jonflagration, ling such act ! coinpauy or 'c. But by )sse.s3ioii of e thereof," freement to 1 reinstate- Insnrance ion. evidences of tings, sculp- n, works of mirrors, are or insurance eto appears !e is effected 13 thereto, or weeks after subsequent d before the rty herein pany shall, of any loss iion of such policies. ^1 Appendix A. ^11 10. The corapany is not liable for the losses following, that is to say : -j / I (a) For loss of property owned by any other party than the assured. Liability unless the interest of the assured is stated in or upon the policy; uon-owuer- sbip, {h) For loss caused by invasion, insurrection, riot, civil commotion, Kiot, lu- ...^ , vasion, etc. military or usurped power ; (c) Where the insurance is upon buildings or their contents — for loss Chimueya. caused by the want of good and substantial brick or stone chimneys ; stoves. or by ashes or embers being deposited, with the knowledge and consent of the assured, in wooden vessels ; or by stoves or stove-pipes being, to the knowledge of the assured, in ",n unsafe condition or improperly secured ; Goods to which tire heat is boiuf* applied. Repairs by carpen- ters, etc. [d) For loss or damage to goods destroyed or damaged while under- going any process in or by which the application of fire heat is necessary ; (e) For loss or damage occurring to buildings or their contents while the buildings are being repaired by carpenters, joiners, plasterers or other workmen, and in consequence thereof, unless permission to execute such repairs had been previously granted in writing, signed bj a duly authorized agent of the company. But in dwelling houses fifteen days are allowed in each year for incidental repairs, without such permission; (/) For loss or damage occurring while petroleum, rock, earth or Gmipow- coal oil, camphene, gasoline, burning fluid, benzine, naphtha or any oji^'etcT liquid products thereof, or any of their constituent parts (refined coal oil for lighting purposes only, not exceeding five gallons in quantity, or lubricating oil not being crude petroleum nor oil of less specific gravity than required by law for illuminating purposes, not exceeding five gallons in quantity, excepted), or more than twenty-five pounds weight of gun- powder is or are stored or kept in the building insured or containing the property insured, unless permission is given in writing by the company. 11. The company will make good loss caused by the explosion of Explosiou. coal gas in a building not forming part of gas works, and loss by fire LiigUtuiu«. caused by any other explosion or by lightning. 1*2^ Proof of loss must be made by the assured, although the loss be Proof of payable to a third party. iSJable^"©. other than assured. 13* Any person entitled to make a claim under this policy is to uirectious observe the following directions : - to be ob- served on making {a) He is forthwitli after loss to give notice in writing to the ** ^*'"' company ; X) 5 378 Insurance Corjwratioiis Act. N *•-, *« 11 g r 11 i ' :il; e !5! J*" b •«l » * ^rl f:' '' »2' lij li, -S; 3: ^^ •■4^ >- '•Ml o :S! •»ti to •4 « (^) He is to deliver, as soon afterwards as practicable, as particular an account of the loss as the nature of the case permits ; (c) He is also to furnish therewith a statutory declaration, declaring, (1) That the said account is just and true ; • (2) When and how the fire originated, so far as the declarant knows or believes ; (3) That the fire was not caused through his wilful act or neglect, procurement, means or contrivance ; (4) The amount of other insurti'ices ; (5) All liens and incumbrances on the subject of insurance; /w (C) The place where the property insured, if movable, was deposited at the time of the fire. (- ovable, was racticable, to , and furnish w portion of maged from hat remains be hand of a s, or muni- led, and not stating that or damage mstances of assured has ed loss and ured, after e precisely follows : the insur- 3y a duly 3 sufficient stimate of id to the e insured nless the >nment of After any loss or damage to insured property, it is the dutyOuty of of the assured when, and as soon as practicable to secure the after loss. insured property from damage, or from further damage, and to separate as far as reasonably may be, the damaged from the undamaged property, and to notify the insurer when such separation has been made ; and thereupon the insurer shall be entitled to entry and access sufficient to make an appraisement or particular estimate of the loss or damage: Provided that at any time after the loss or damage the I'voviao. insurer and the assured may, under a term of the contract of insurance or by special agreement, make a joint survey, exam- ination, estimate, or appraisement of the loss or damage, in which case the insurer shall be deemed to have waived all right ■ to make a separate survey, examination, estimate, Oi. appraise- ment thereof. For notes see the Act, .supnt. The Act does not make these provisions a Statutory Condi- tion; it is not therefore obligatory upon a Fire Insurance Com- pany to print them upon its policy. But it is important for many reasons to bring under the attention of the assured, the duty cast upon him by the law. This may be done (Avhere new forms of policies are being prepared) by printing the above sub- section up(Mi the policy after the Statutory Conditions (and ** Variations " thereof, if any). When the assured has wilfully neglected or unreasonably refused to furnish necessary information, the Act, 52 V. c. 31, now enables (s. 4), the insuring company to counter-claim as follows : — • (4) "If in any action or proceeding upon a contract of fire insur- 52 Vio. c. ance, the insured being plaintiff in such a claim or proceeding, ' ^\ ' has in the opinion of the Court or Judge, wilfully neglected or fo^' coats ^ . . occasioned unreasonably refused to furnish necessary information respecting •^y'^efauii; the property for which the insurance money is claimed, and if as a consequence of such neglect or refusal the defendant company has been at expense in obtaining information or e\idence, the Court or Judge may in disposing of costs, take into consideration ihe expense so incurred by the defendant company." f't 380 Insurance Cotyo rat ions Act. i- ( I For the case of deficiency of proof arising not from wilful I neglect or unreasonable refusal on the part of the claimant, see section 118 of the (hitario Imnrdncc Art, infr'i. Proof of j4 xhe above proofs of loss may be made by the a<'ent of tlie loss may ^ j j n be made assured, in case of tlie absence or inability of the assured himself to- )y ageu . ,-,-if^ijg ^jjg gm^-ie, such absence or inability being satisfactorily accounted for. ■I Fh-lsestate- l,"5. Any fraud or falsa statement in a statutory declaration, in fraud viti- relation to any of the above particulars, shall vitii;te the claim, ates claim. Where suflicient reason exists for suspecting fraud, or for impeaching the claimant's statement of his loss, proceedings may be taken under the following provisions of The (httn-in Insnramr Art, R. 8. 0. 1887, c. 1G7, s. 120: Out Ins. 120. (1) Any Justice of the Peace, or any one having .° '.^" /lawful authority to administer an oath or affirmation in any Justices of •' "' Peace, etc , legal proceeding, may examine on oath or solemn affirmation may swear, o l o» ./ aii<^exam- any party or person who comes before him to give evidence touching any loss by fire in which any Fire Insurance Com- lue wit- nesses regarding , . ... . . loss. pany is mterested, and may administer any oath or affirmation required under this Act. May hold (2) On receiving a written request from any officer or agent investif!G- of any insurance company with security for the expenses of request, ail investigation, any Justice of the Peace may at once proceed to hold an investigation as to the origin or cause of any fire that has happened within his county or district, and as to the persons, if any, profiting thereby. Powers. (3) The Justice of the Peace shall have power to send for persons and papers, and to examine all persons that appear before him on oath or solemn affirmation ; and he shall keep a record of all such proceedings and of the evidence given before him." A statute of 1891, o-l V. c. 37, gives the Justice of the Peace, acting under the above section, power to summon, bring before him and examine any person whom he deems capable of giving information or evidence concerning the fire. The statute also- empowers the Lieutenant-Governor in Council to appoint from wilful ainiiuit, see a^ent of the d himself to ily accounted slarntion, in im. •aud, 01' for proceeding.'? riie (hit irin me bavin" ion in any aftirmation ,'e evidence ance Com- affirmation er or ayent xpenses of ice proceed )f any fire as to the send for lat appear all keep a nee given the Peace, ing before of giving atute also- 1 appoint Appendix A. 881 special functionaries, known as Provincial Coroners, for the purpose of holding fire investigations; but before the coroner can enter on any investigation under the Act, he must obtain the consent in writing of either the Attornev-General or €ounty Attorney for the County wherein the investigation is proposed to be held. The text of these provisions is as follows : 1. (1) It shall be lawful for the Lieutenant-Governor in 5i V. c. 37, . 8. 1. Council to appoint from time to tniie, under the Great Seal, Appoint- Provincial Coroners, each of whom shall be, by virtue of his pif^viiJcja, appointment, both a coroner and a justice of the peace for every f,^'Jf^'}fj:g'*i|," C3unt,y and pari of Ontario, for purposes of holding fire investi- [j'^.'^J^''''^' gat ions. (2) The fee? payable to a Provincial Coroner shall b^ as Fees of enacted by section 7, of chapter 217, of the Revised Statutes of coroners. Ontario, 18S7. (3) Before any Provincial Coroner shall enter on any investi- Assent of gation under this Act, he shall obtain the consent in writing of cr county" cither th3 Attorney-General or county attorney for the county ryqiiire'c^. wherein the investigation is proposed to be held. • . (4) This section shall be construed as one with chapters 80, lucorpora- ^ tion of pro- ^8 and 217. and section 120 of chapter 1G7 of the Revised visions _ , *■ wit»' prior Statutes of Ontario, 1887. .■ enactment. [^) For purposes of any investigation held under the last- named s action, the Provincial Coroner, or a justice of the peace may summon and bring before him any person whom he deems capable of giving information or evidence touching or concerning ihe fire, and may examine such persons on oath ; and he shall reduce such examinations to writing, and return the same to the clerk of the peace for the district or county within which they have been taken, and the fees payable to a justice of the peace in respect of such investigation shall be as herein enacted for a Provincial Coroner. .... . . - ^ . See also R. S. 0. 1887, c. 217, An Act respectinri the Investi- (lation of Accidents by Fire, which is to be read with the above provisions. Powers of provincial coroners , etc. 11 382 Insurance Corporation^ Act. oncos. Arbltra- 10* If any differenco arises as to the value of the property insured,. of (litrer- of the property saved, or amount of the loss, such value and amount and the proportion thereof (if any) to bo paid by the company, shall, whether the rij^ht to recover on the policy is disputed or not, and independently of all other (juestions, be submitted to the arbitration of some person tO' be chosen b> both parties, or if they cannot aj^ree on one person, then to- two persons, one to be chosen by the party assured and the other by the company, and a third to be appointed by the persons so chosen, or on their failinf^ to agree, then by the County Judge of the county wherein the 'oss has i i,pptned ; and such reference shall be subject to the pro. visi > o'' ( laws applicable to references inactions; and the award shal :.' I..; . "Tipany is in other respects liable, be conclusive as to the amour -' 'oss and proportion to be paid by the company; where the full aiiiount > 'lo claim is awarded the costs shall follow the event and in other cases, aii questions of costs shall be in the discretion of the arbitrators. *w *m \l ■k c f ! i ;:::ii ':'::■ b » » C' 'v ■ Lj :; •»»Ml a: ' '^■' •«.„ h- , , Si li.J •f. tt) •> . • j. which written notice pursuant to sections 124 and 126 has been given to the maker of the premium note or undertaking during the currency of the policy or within the said period of forty days ; and, on the expiration of the said period, the premium Appendix A. 38S ?erty insured^. \ amount and ihall, whether ndeponclently )mo iieraon to arson, then to ) other by the chosen, or on unty wherein it to the pro. nd the award ive as to the pany ; where ow the event :retion of the days after id for by the cash mutual )r companies, had ninety a gave their Bcl to most the law is npany, and e company. I. 44, s. 4, is repealed ^2. On the- ended, the 1 be abso- iistalments ssments of 3 has been ing during of forty ; premium note or undertaking shall, upon application therefor, bo given up to the maker thereof, provided all liabilities with which the premium note or undertaking is chargeable as aforesaid have been paid." Tlie same Act by s. 2 greatly facilitates in mutual companies the payment of fixed premiums instead of resorting to tlio un- certain expedient of intermittent assessments : — " 2. Section 123 of the said Act is amended by adding thereto 53 vie. c. 44 s 2 the following sub-section : — ' " ' (2) Instead of requiring the whole of tl first payment to be made in cash at the time of insuring, th di ^tors may make the said sum payable in annual instalm its, ; first of which shall be payable on the day of insui" -^j and the remaining instalments shall be respectively payabi or the first day of each subsequent year of the term of in 'irance. Rev. Stat, c. 167, 8. 123, am- ended. Kiist pay- lili-lU <>u pioiiiimu note may lio minle it* iiisial- IIUMltS. Provided that non-payment of any of the instalments subse- Proviso, quent to the first shall not forfeit the insurance unless thirty days' notice of the instalment due, or to become due, has been mailed to the person by whom the instalment is payable, directed to his post office address as given in his original application, or otherwise in writing to the company. 18, The company, instead of making payment, may repair, rebuild Couipauy or replace, within a reasonable time, the property damaged or lost, place giving notice of their intention within fifteen days after receipt of the [Ja'^yhf^. proofs herein required. The company unintentionally becomes hound to reinstate if it undertakes " the disposition, control, occupation or possession of the insured property, or of the remains or salvage thereof"; or by such dealing with the property the company may be held to have accepted abandonment, and may thus become liable as for a constructive total loss: hisurance Corpordtiom Act, 1892, s. 83 (4); see the section, sujim, and notes thereon. 19. The insurance may be terminated by the company by giving insurance notice to that effect, and, if on the cash plan, by tendering therewith a otf^j^Uce'^ ratable proportion of the premium for the unexpired term, calculated 2 ir •'»-, 384 Insurance Corporations Act. u o S from the tormination of the notice; in the case of personal service of the notice five days' notice, excluding Sunday, shall be given. Notice may be f^iven by any company having an a^'ency in Ontario by registered letter addressed to the assured at his lant post-office address notified to the company, and where no address notified, then to the post-oftice of the agency from which application was received, and where such notice is by letter, then seven days from the arrival at any post-oftice in Ontario shall be deemed good notice. And the policy shall cease after such tender and notice aforesaid, and the expiration of the five or seven days as the case may be. (a) The insurance, if for cash, may also be terminated by the assured by giving written notice to that effect to the company or its authorized agent, in which case the company may retain the customary short rate for the time the insurance has been in force, and shall repay to the assured the balance of the premium paid. 20f No condition of the policy, either in whole or in part shall be deemed to have been waived by the company, unless the waiver is clearly expressed in writing, signed by an agent of the company. Officers 21, Any officer or agent of the company, who assumes on behalf of to asree in the company to enter into any written agreement relating to any matter writing to connected with the insurance, shall be deemed prima facie to be the agent be deemed ' x- .' n agents. of the company for the purpose. Waiver of condition. 33* Every action or proceeding against the company for the recov- ery of any claim under or by virtue of thib policy, shall be absolutely stitutes written notice. ActiouB to be brought witliin one barred, unless commenced within the term of one year next after the y°°'^' loss or damage occurs. What con- 23. Any written notice to a company for any purpose of the stat- utory conditions, where the mode thereof is not expressly provided, may be by letter delivered at the head office of the company in Ontario, or by registered post letter addressed to the company, its manager or agent, at such head office, or by such written notice giv3n in any other manner to an authorized agent of the compfiny. 50 Vic. c. 26, s. 114. Variations, 115. If a company (or other insurer) desires to vary the said condi- i^at^d tions, or to omit any of them, or to add new conditions, there shall be added on the instrument of contract containing the prnited statutory conditions words to the following effect, printed in conspicuous type and in ink of different colour : — .. .^, •*■ . " VARIATIOI^S IN CONDITIONS. " This policy is issued on the above Statutory Conditions, with the following variations and additions : — " These variations {or as the case may he) are, by virtue of the Ontario StatQte in that behalf, in force so far as by the Court Or -Judge before whom a question is tried relating thereto, they shall be held to be just and reasonable to be exacted by the company." 50 Vic. c. 2*5, s. 115. ervice of the Notice may y registered 3 notified to ost-office of such notice 3st-oftice in I cease after ive or seven the assured authorized y short rate jpay to the irt shall be er is clearly n behalf of any matter e the agent the recov- absolutely t after the )f the stat- ided, may ario, or by ;• agent, at manner to aid condi- ) shall bs statutory 1 type and with the e Ontario ge before to be just 115. 885 VarlfttlouB not liiudiu^' unless clearly iudicatod. Append ir A. " /// i)il( of iliifiirnt rolour." It is the custom to print the Statutory Conditions in black, and the Variations in red ink. '• Vakiations in Conditionh." Here the title "variations" in- cludes ikIiIkI r/ irh,n,* ually oi'- . ' . 1 ^ I • f . I gauizedor irhere, and bu what instrument or instruments, the Applicant Bodf) incornora- . . . . ,, . , ted. ivas for inirposes oj insurance orit/inalli/ orf/amzed or incor- jiorated.] (h) p IK r I c cr.iii I "i^"!,' % t::>iii C;' ' Clili; i' *■ - 1- O 'At •J •«.;!'.; 00 00 '■ji Schedule of docu- ments, and the documents evidencing the same are filed or deposited in the at of which the documents enumerated in the Schedule to this paragraph and annexed to this Applica- tion as Exhibits, numbered from to are hereby declared to be true copies. SCHEDULE OF DOCUMENTS. Exhibit No. Title oe Description OF iNSTUrMENT. Date of Instrument. Remarks. Bywbiit 3. The said [organization or incorporation, r/s the case ma ij organiza- he^ was [effected, or validated or aided, r/s iucoriioi-a- the case man ''<^] by or under the following eifected. sfJecial or private Acts and public general Statutes respectively: — («) Section 12 (1). (o) Every licensee licensed under or by virtue of Tha Insurance Act of Canada is deemed to be a corporation for the purpose of registration. Section (2). i" the pro- hereinafter fulh/ irlit'i), Hcant Biidji or inor- • deposited numerated 3 Applica- iie copies. ARKS. ense Diiii/ aided, as following ctively: — 'Alive Act of ''istration. Appendix B. 891 Leoislatubk. Year AND Chap- ter. Title of Enactment. Whether Special Act or Public General Act. Whether Stjll in Force • S3 Of the foregoing enactments (not being expired or repealed, nor being enactments of the Province of Ontario, nor of the Dominion of Canada, nor public general statutes of the United Kingdom) the annexed Exhibits numbered to are hereby declared to be true copies. 4. The Legislative enactments by which the powers, duties, Euact- ^ ./J. meiits now rights and obligations of the Applicant Body are now declared, goveruiug ft p I U 1 C fl.ll 1 1 defined, limited or governed are the following : — Legislature. Year AND Chap- ter. Title of En.\ctment. Whether Special Act ou Public General ' Act. Whether Still in Force. CJ5 5 Of the enactments in this paragraph mentioned (not being enactments already specified in paragraph 3, nor enactments of the Province of Ontario, nor of the Dominion of Canada, nor public general statutes of the United Kingdom) the annexed exhibits numbered to are hereby declared to be true copies. 5. The original corporate or collective name of the Applicant oriKiimi „ T name. liody was G. I If name has been (dtered, exjnDii/e tJiis jiarai/raph and Jill ?<7' No change jiaraiiraph 7.'] The said original corporate or collective name of the Applicant Body has remained unaltered to the date of this application. I m2 Change in name. Insurance Corporations .-id. 7. [(/' iKime has not been altered, expuniie this /larmirajih.] The original corporate or collective name of the Applicant Body was successively altered as follows : — Date op Alteration, New Najie. Authority foi. Change OF Namk. o fc r i t laiii'i u £™:in « c :::iii i;;:^ (.-» 3; ' '-^ »:■„>,> w- o :Sl!i: >u •41,;;;: 03 •»•.■.. •»^ QQ Present g. The present fall corporate or coller^tive name of the tull name. _ ^ , '• Applicant Body is Registry 9. The Applicant Body hereby applies to be registered, sub- ject to the Act, upon the Insurance License Regitirv under the following name : — (c) Head 10. The Head Office {d) of the Applicant Body is at Oltice. . ,1 ni the of and the Applicant Body can at the said Head Office lawfully sue and be sued in the name of [Here insert the jiropcr corpn>ute name fur ptirposes of Action : or if the Apjdicant Jjodi/ r'orno^ sue and be sued under a corporate name, then insert the dL'.-'jnaiion or desit/nations of the officer or persons bij or against whom, action can lawfullij be broui/ht.] 11. [If the head office is elsewhere than in the Province of Ontario, fill in the particulars required by this and the next paragraph.] ciiief The Chief Agency {e) of the Applicant Body in the Province gency. ^^ Ontario is at in the of (c) No corporation shall be registered under a name identical with that under which any other existing corporation is registered, or so nearly resembling such name as to be likely, nor under any other name likely, in the pinion of the Registry Officer, to deceive the member* or the public ;s to its identity. Section 23. ^c[) "Head Office" means the place where the chief executive officers- of the corporation transact its business. Section 2 (20). {e) " Chief Agency " means the principal office or place of business in Ontario of an extra provincial corporation. Section 2 (21). : — — -y^-.. licant Body FOT. Change Nam... ,me of the stered, sub- .' under the is at. jodv can at he name of Action : or a corporate 'le officer or >ht.] I'ovince of the next e Province ...in the entical with itered, ov sa other name le members itive officer* business in Appendix B. 80 H and the name and address of the Chief Agent for Ontario are ^'ij'''^ as follows : Name. Address. Ontario. 12. [See last paragraph.] The Attorney (./') in Ontario Attovneyin duly empowered by the Applicant Body to receive service of process or accept notice in its behalf as required by the Act is : — Name, Address. Ontario. Power ot .\ttonicv. Kula'ion of tlic uie: 1- liDiS of t 'e applicaiii bodv. nitrr HI', •• li' Wlit-r c shra-e J '. apital ^J And the Power of Attorney duly executed by the Applicant Body in this behalf is hereto annexed as Exhibit No ; a duplicate also of the said Pov/er of Attorney has been duly filed in the office of the Clerk of the Process at Osgoode Hall, in the City of Toronto. (//) 13. The members of the Applicant Body are related inter sc. as follows : {{) [Uliere tJtere is h share capital, sai/ : The members ■>' certain of the members are related as shareholders in an incorporated joint stock company, or a.-< the case maij he, >■•■■ I> li((rticul(irs] . And the liability of the members is \sai/, lim cd to the amount L'-" -n-y \ L ./' liinin 1 or remaining unpaid upon tlie shares held by tl.i'in, or other wise, asnnUwutea. the case mat/ he; state particulars,'] Or (ii) [Wfiere the Applicant Ihxlii is a partnersfn'n (jr in ^'/.■ 'i' '^^iien; nature thereof, sj)lica)it Jjodj/ ((re related as tnemherHof ti Mutunl ( (mijianij: state company, the jiarticub(rs.\ Ths members are : and the Hability of the members is [Hmited to or is 'Unlimited, as the case maij be ; state particulars.'} t it •s;:;;ai ^ c;:;!iii:: T' t~;iii:. Im •■<>i ■ ._v"W> 3- **' v> O •.!;■;!■■ *^^ *.! to •mi\i.»' on i;- (iv)\Vueie Or (iv) \\Vhere the members of the A iivUeant liodn are related ot iiu as- ,/.s members of an assessment (h) societii, association or comtHinii ; state societj-.etc, particulars.] The members are : and the liability of the member is [hmited to. or is unlimited, as the ca.,e may be.] (V) Where Or (v) {Where the members of the Ajiplicant Bodi/ are related unshissi- . , , it-.,," ■ , lied. in such manner as cannot be accurately classi/ied under any oj the foreffoiny heads; state particulars.} Guarantee 14, \ Where (luarantee canif : utate hj arc related r anij oj the ; state par- Xicense (/), jiarticnlar.s] . issued by day of said License )win? Insur- ance. under either action 4 (1). Appendiv B. 80; o And by virtue of the said license the Applicant Uody in fact now transacts in the Province of Ontario the following insur- ance : (/i) The Exhibit numbered annexed to this Application is hereby declared to be a true copy of the said License (/). 16. The documents enumerated in the Schedule to this i"o»'>'^ •'**"! para^raph, and annexed to this application as Exhibits, num- fna tor bered respectively from to comprise all forms inMnaiuc of application and of contract (»/), and all instruments intended to bind the insurer or the assured, now used by the Applicant Body or by any of its agents in Ontario. SCHEDULE OF FORMS USED BY APPLICANT BODY FOR APPLICATIONS, CONTRACTS, Etc. Exhibit No. Title or Description of Document. Remarks or Exi-laxation. 17. Assets of the Applicant Body are deposited and held in Ai^s^ts various states or countries as special security for the policy 5^ -^^'^'in'ty '■ •' 1 .' f,,j. policy- holders respectively therein as follows: — for iiolic, lioktcrs. (1) In Canada: Deposit accepted at the value of Assets other than Deposit - (2) In other states or countries, vi/.. In Deposit accepted at 3. a. .held by. .held by. S held bv Assets other than Deposit S held by. (k) Section 18 (2). (1) Section 6 (1). (in) Sections 2 (14), S'd (1), 35 (•_>), m). ■2 ■J 5 89G Insurance Cotjjo rat ions Act. .Turat. p r :!|'. I c ;a«M»M £::.':in;; •s;;;3|i ^■=. . criiiK;; a; vj • •»iiow< K •ifii: >^ *«;;;ti;ai 03 •*>IINM> ^> QQ In Deposit accepted at - ^ held by. Assets other than Deposit ^ held by. In Deposit accepted at - !? held by. Assets other than Deposit !? held by. In Deposit accepted at - J^ held by. Assets other than Deposit :? held by. 18. In respect of this Application the application fee (») of iij) has been duly paid to the Provincial Treasury, and the [duplicate — original or a true copy, an the case ituiij />(■] of the Treasury Receipt therefor numbered and dated 189 , is hereto annexed as Exhibit No. Provin'ce of Ontario. CdHlttl/ of. I, of duly appointed to and now holding the office of in the aforesaid Applicant Body, make oath and say that the present Application is made by me honu jide in behalf and by authority of the said Applicant Body ; also that I have the means of verifying the correctness of this present Application ; and that the facts and documents by the form of Application required to bo stated and exhibited, are herein truly and fully stated and exhibited ; also that no fact nor document material to be disclosed has been concealed or withheld. Sworn he/ore me {o) at the \ in the Counti/ of the (Ian of J A J). 189 (' (h) The application fees must be p.iid before the application is con- sidered. For tariff of fees, see section H2. (()) Affidavit may be sworn to before a Justice of the Peace , Notary Public or Commissioner of the High Court for taking affidavits. Section 47 (2). A)>i>endi,r B. :VM FORM NO. 2. TREASURY RECEIPT FOR AITLICATION FEE. rOKIGIXAL TO BE KETAINED MY API LICANT.] EiKuirancc OTorporations let, 1892. RECEIPT FOR APPLICATION FEE. No «... Tri'dir)l(/l r B. • WW) of Ontario tor any liabilities incurred by the Corponition therein, and a'so to receive from the Registry OfHcer all notices which the law ve(juire« to he given, or which it is thought advisabU* to give, and tlie Corporation hereby expressly dedans that the chief agency of the Corporation within the said Province is at the (f) of in the County of in the said Province, itnd the Corporation further expressly declares that service of process for or in respect of such liabilities as aforesaid and receipt of such notices as aforesaid at such Othce or Chief Agency, or service personally on, or receipt by such Attorney at the said ( /) shall be legal and binding on the Corporation to all intents and purposes whatsoever. In Witness Whereof the (//) '•• of the Corporation have subscribed these presents in triplicate, and affixed the Seal of the Corporation at (•■) City. Town, t'to. the (//) in the (/) day of In Prksence of of this A.I). 1H<) (' I'hicf wllOTL' lllf CI I iff A;^eiicy in Ontiirio ift t'stal)lirtliiHl (//iTlio I'resiiloiit or I'rfsiil- iiit; olticer 1111(1 SULTO- tlll'V (/'I City, 'I'owii, fti;, I' I State, etc. I .;) Desi^'- uivtioii of ottict'. AFFIDAVIT. VEKIFYINfi THE OFFICIAL POSITIONS OF THE HKiNATORIES TO THE FORE«0IN(t POWER OF ATTORNEY. ^ of in the (/) of in the {in) To Wit: / ' (") li Section 2 (21). • Section 14 (1). § Section l\ (1). (,/■) state, IMAGE EVALUATION TEST TARGET (MT-3) .^/ h ^ (/.. % 1.0 I.I IL25 nil 1.4 I ■ 1.6 0% ^ '/a ^^f Photographic ^Sciences Corporation 33 WIST MAIN STRiET WEBSTER, N.Y. MStO (716) «73-4S03 ■^ iV ^\ <^ 400 Insurance Corjjomtions Act. ' i r I ' ( >.- Citr b te. 3i' ) 3. That (r) 4. That the said (0 of the (7) is the {i>) , is the (.s) of the said Corporation. are hy law and by virtue of the respective offices now legally held by them entitled and empowered to execute the foregoing Power of Attorney, in the name and on behalf of the said Corporation Sworn before me at in the of and of this day of 1892. - SEAL, r { ) a Notary Public. ) and (h) * Section 14 (1). hereinafter •ation. ty virtue of ititled and ley, in the AND Say : jhe within elivered by at Appendix B. 4. That I am a subscribing witness to the said Power of Attorney. Sworn before me at in the of this day of A.D. 189 \ SEAL. \ a Notary PubUc. FORM NO. 4. TREASURY RECEIPT FOR CERTIFiCVTE FEE. [ORIGINAL FOB INSURANCE CORPORATION.] Ineunittcc Corporations Jlct, 1892. A'o. RECEIPT FOR CERTIFICATE FEE. Treasury Department, Ontario, Toronto, 189 Received from being Fee for Registry as an Insurance Corporation. .Dollars, Attistant Treasurer. [duplicate ORIGINAL TO BE DEPOSITED WITH REOI8TRT OFFICER.! RECEIPT FOR CERTIFICATE FEE. Treasury Department, Ontario, Toronto, 189 Received from being Fee for Registry as an Insurance Corporation. .Dollars, H.I.C.A. — 26 Assistant Treasurer. 401 s 3 J 402 hisu ranee Corjwrativns Act. FORM NO. 5. r i t i m c; ^j CERTIFICATE OF REGISTRY AS INSURAxNX'E COMPANY. o.'>'^"^'*'''J'^"T'' °'^-^'>„ o. CERTIFICATE OF REGISTRY AS ^" INSURANCE COMPANi^. Whereas, by the Application of the made pursuant to The Insurance Corporations Act, 1892, it has been made to appear to the undersigned, the Inspector of Insurance for the Province of Ontario, that the said Applicant is entitled to registry as an Insurance Company. Now. therefore, this is to Certify that the said Company is accordingly registered for the transaction of in the Province of Ontario, for the term beginning on the day of 189 . and ending on the day of 189 , subject to the provisions of the aforesaid Act. Entered on the Insurance Licence Uegixter, Folio. i SEAL. .Entry Clerk. The above certificate follows the terms of Section 21. Ajijiendi r B. 403 FORM NO. (3 ANCE f/o STRY t, 1892, it IS pec tor of Applicant ompany is 'tig on the nd ending , subject - SEAL. TREASURY RECEIPT PRKLIMINARY TO REGISTRY AS PROVINCIAL LICENSEE. [ORIOINAL.] (Dntiirio .^Insurance ^ct. Hi,. <♦ ... Trenitiiry Department, Ontario, Toronto K^g, . Received from , _ the sum of Dnllarx, mm- due and paifalde bij rirtiie of the Ontario Ingiirance Act. Ai>»ittant Tn^aturer. 'dcplicatk-ohioixai,.] Ontario En!?iuancc ^ct. Treanurif Department, Ontario. Toronto, J89. . Received from ''"' ■<«'« '"' Dollrrs, note due and payable by rirtue of the Ontario Injiurance Act. t Afninttnt Treasurer. f Clerk. 404 Insurance \^ovporations Act. FORM NO. 7. < £l| ^ PROVINCIAL LICENSE TO INSURANCE COMPANIES INDORSED AS REQUIRED BY INSURANCE CORPORATIONS ACT, [S. 5 (1)]. PROVINCE OF ONTARIO. g I r X % c >. u ■- X >":::: Z r. b C':::, ^j I. ■•• • 1— 1 h- oj : 9 •^ : :3 ^ i CQ •••■"■" '^ • 03 ^- .2 S i c : 1 i S : C <5 i 1 ^ 1 ? « i •I- Ao .A.o. A'o. A'. .V. ^nmtnntt ttttUM^^ 18 -18 DEPOSIT made unth the Government of Ontario DOLLARS. THIS IS TO CERTIFY, that, pursuant to The Ontario Insurance Act the . IS HEREBY Licensed to carry on in the Province of Ontario 4i the business of. for and during the term beginning on the day of A.D. 189..., and ending on the day of A.D. 189... Dated at the City of Toronto, this day of A.D [Signature of Provincial Secretary.] ( Seal of \ - Prov. [ \ Secrty ) Inspector of Inguratiee for the Province of Ontario. The endorsement on the Insurance License is by virtue of Section 5 (1). Appendix B. 40/ FOllM NO. 8. JMPANIES lANCE A'. S. ario OLLARS. le Ontario the of Ontario ind ending ( Seal of - Prov. Iseci-ty of Ontario. of Section ANNUAL DOCUMENT OF AUTHORITY ISSUED TO DOMINION LICENSEES AFTER FIRST LICENSE. [See Sujn-- o •I .1' „l :3 S --h: 03 ^••-*' the required exhibits annexed thereto, after being properly marked by the Notary or Commissioner before whom the afiidavit is taken. (2) Application or Registration Fees are not receivable at the Insurance Department, but are to be paid to the Treasury Department. Letters transmitting such fees should be addressed to the Assistant Provincial Treasurer, Parliament Buildings, Toronto, and the remittance should be made by Post Office order, bank draft, or accepted cheque, payable to the order of the Provincial Treasurer of Ontario. The Provincial Treasury will issue a receipt in duplicate ; the duplicate is to be annexed as an Exhibit to the Application for Registry. (3) The following Application is to be made in duplicate, and the Dupli- cate original should be marked "Duplicate."] PROVINCE OF ONTARIO. application for U^gistr^ as a Jfrienbl^ ^ocictp. Made to the Registrar of Fr! 'v Societies for Ontario. PCB8CA »u THE INSURANCE CORPORATIONS ACT, 1892. By this Applicaiion {n) made in duplicate this Name of , . . -r^ .1 Applicant day of A.U tne. Society. hereinafter called the Society hereby applies for admission to registry under the provisions of the Insurance Corporatinns Art, 1892, hereinafter called the Act. 2. The Society was lawfully How incor- ,, -, e poiated. or on the day of soctionio 18 and the documents evidencing the same are filed or (Dof .\ct) -1. J • Ai howreRis- deposited m the at of which the documents enumerated in the Schedule to this paragraph and annexed to this Applica- tion as Exhibits numbered to are hereby declared to be true copies. (a) Section 12 (1). Appenilix B. 407 perly marked vit is taken. the Insurance Department, the Assistant >to, and the mk draft, or Treasurer of in duplicate ; pplication for id the Dupli tario. 1892. [mission to rations Art, e filed or snumeratefl is Applicfu SCHEDULE OF DOCUMENTS (Incokporation, Etc.) ExHiniT Nu. Title or Description or Instrument. Date of Inhtrvment. Remarks. • DocuttietitH 3. The said [incorporation or registration, as the case may be] w^atonacft' was [effected, or validated, m- aided. [JJcorpoJi^ as the case nun/ he] by or under the ^©'^"gtm- foUowing special or private Acts, and public general Statutes *^"' effect- respectively : Legislature. Year AND Chap- ter. Title of Enactmekt. Whetbeb Special Act or Public General Act. Whether Still lu Force. Of the enactments in this paragraph mentioned, (not being expired or repealed, nor being enactments of the Province of Ontario, nor of the Dominion of Canada, nor public general Statutes of the United Kingdom) the annexed Exhibits, numbered to are hereby declared to be true copies. 4. The Legislative enactments by which the powers, duties, Enact rights and obligations of tlie Society are now declared, defined, which the limited, or governed, are the following :— KT^**' ' Society are now Kov- erned. i s 408 Insurance Corporations Act. hi r I f O fia N, 'nJ r«:r::i LEOtRLA- TVUE. Year and Chaptkh Title of Enactment. Whktheh Hpk- ciAL Act OM Pub- lic Genrrai. Act. WHHTHRn HTILL IN FOIICK. Exhibit No. Of the enactments in this paragraph mentioned, (not being enactments already specified in paragraph 8, nor enactments of the Province of Ontario, nor of the Dominion of Canada, nor pubUc general Statutes of the United Kingdom) the annexed Exhibits, numbered to are hereby- declared to be tru<^ copies. OriKiuai 6. The Original corporate or collective name of the Society curporatti u i. j or collect- or of the Provincial division of the Society now applying for ive name. . .' tr ./ o registry was When n 'T • 11 f I f . oriRiual 6. [// name has been alterea. expiuvje this paraijraph and fill unaltered, up paragraph 7.] The said original corporate or collective name of the Society has remained unaltered to the date of this Application. When original 7. [//" mune has not been altered, expunye this paraijraph,] ed!"**"*'^' The original corporate or collective name of the Society was successively altered as follows : Date op Alteration. Authority for Change OF Name. Aj>j)t'H(li.r B. A0\} 8. The present full corporate or collective name of '^Je |[^^^'"j|;';|j Society is socu-ty. 9. The Society hereby applies to be registereil upon the i* s°«'«'y- can at the said Head Office lawfully sue and be sued in the name of [here insert the itroiwr cnr/Htrate udiiie for the purfithses of actio}) : or if the Society cannot sue and he suetl under a coritorate name, then insert the desiijnation or desiifnations of the o^icers or fiersons hi/ or aijainst whom action -f/t lawfully he hrouyht] 11. [//' the Head Office is elsewhere than in the Province of Ontario, fill in the jxirticulars reifuired hy this and the ne.it l>arayraph.] The Chief Agency of the Society in the Province of Ontario is at in the of and the name and address of the Chief Agent (d) for Ontario are as follows : — Xante Address 12. [See last narai/raidt.] The Attorney in Ontario dulyi'oworof -. 1 I n ■' • 1 • Attorney. empowered by the Society to receive process and accept notice in its behalf as required by the Act is : — Xtnne... Address. (h) No Corporation shall be registered under a name identical witii that under which any other exiL>ting Corporation is registered, or so nearly resembling such name as to be likely, in the opinion of the Registry Officer, to deceive the members or the public as to its identity, section 23. (c) ' Head Office ' means the place where the chief executive officers of the Corporation transact its business, section 2(20). ((/) Chief Agency means the principal office or place of business in Ontario of an extra provincial corporation, section 2 (21). 410 Insurance Corporations Act. Finnncial Atnteiiioiit. And tho Power of Attorney (i) duly executed by the Society in this bclmlf is lieruto annexed as Exhibit No ; a dupli- cate alsu of the said Power of Attorney has been duly filed in the oftice of the Clerk of the Process at Osgoode Hall, in the City of Toronto. IH. The B'inancial Statement (,/) annexed hereto as Exhibit No , sworn to by the Presiding Officer and the Secretary of the Society, is a full, true and complete shewnig of the Insurance Fund of the Society (as defined by section 2 (IH) of the Act), as tho said Fund stood on the day of 18 r I c 5^'^ .«3 iDOrastbe case may CoUNTY OF (1) be. ^ ' <-2) Name of applicant body. The following is the form of affidavit rei]uired by para^fraph IH. The athdavit is to have annexed to it the Financial Biatement, the latter liav- inK been properly marked and authenticated by the signature of the Commiaaioner before whom the affidavit is taken. The Financial State- ment and affidavit then constitute together tho exhibit necessary for pur- poses of para>{raph 18. FORM OF AFFIDAVIT REQUIRED BY PARAGRAPH IH. Province of Ontario (1) ^ In the Matter of the Applica- tion for Registry under Tin' Insur- iimr Corjwrntiims Act, 1802, made by the (2) bearing date the day of 189 . We, of the of in the County of duly appointed to and now holding the office of President (1) in the aforesaid Association, and duly appointed to and holding the office of Secretary (1) in the said Association, severally make oath and say, and each for himself says, that we are the above described officers of the said Association, and that we have each of us individually the means of verifying the correctness of the statement hereto annexed and marked "A," and that the said statement is a full, true and complete showing of the Insurance Fund of the (2) ■,' When the Head Office of the Society is elsewhere than in Ontario, add these words in writing : — " and a dupli "te of the said Financial Statement has been duly filed in the office of the CUerk of the Process at Osgoodo Hall, in the City of Toronto."] ((') Section 14 (1) ; for form of power of attorney see supra. (t) This Financial Statement must show the Society to be solvent, section 13; solvency in the case of a Friendly Society means that the Society has either no present liabilities, or has immediately realizable assets adequate to dischai'ge its present actual liabilities, section 2 (1()), Aj>i>en(Ji r B. Ill B Society in ... ; a clupii- duly filed in Hall, in the o as Kxhibit :er and the c shewnig of action 2 (18) raph IH. The iho latter hav- nature of the nancial State- iBsary for pur- GRAPH 18. the Applica- r Tfn' Insiir- 1802, made bearing date 189 . duly t (1) in the y (1) in the nd each for icer.s of the vidually the lent hereto ent is a full, f the (2) ,n in Ontario, lid Financial he Process at pra. be solvent, 3ans that the !ly realizable ction 2 (1»)), as defint'd by subsection 18 of section 2 of 7'/««' Inminnne Cm- l>orr ivhether Inj the uieudien in ijeui't'ol mtetimj or othcni-ixc] and the said Iff) Section 2 (K)). (/() Insurance Funds include all moneys, securities for money and assets appropriated by the Constitution of the Society to the piymeut of insurance liabilities, or appropriated for the manajjement of the in- surance branch of the Society, or otherwise le^jally available for insurance liabilities. 412 Insurance Corporations Act. t J executive officers hold office under the constitution, by-laws or rules of the Society for the following terms respectively : — (/) Dkhgisation OF Office. Name of Officer Port Offick i Tenure op ' BEFEiiKNtFR to Constitu- Address, j Office. tion, Hy-Laws and Kules. FumiViM ^'^" ^^^^ Society has in Ontario [a or no, -;:r!: • \i C»:::;::' 2 •.J pi m*'' « ^ « » ■* ■< ^ ■*? H W > - 3 .S a " 8.2 M *=< -is- X = a o 'So a Ji-s t3 X 8 5^ :>: a ^ 5 a ga* -< ^ a y gj S a z ^ ^ » o H O C. The said Reserve Fund is in the possession or control of the following officers : — Def hnation Name of Post OifFicE Tenure op OP Office. Officer Addre&s. i Office. References to Constitu- tion, By-Laws or Rules. (') The persons insured in or by the Society must have effective con- trol, either directly or through representatives elected for a term not exceeding three years, over the insurance funds of the Society section ft (2). Ol See section 17 (3). (k) i or permissible investments, see section 29 (2). , by-laws or vely :— (/) S TO COXSTITU- WS AND IULKS. nisc )inii/ he\ of insuranco hi : The said >5 X < % N o « U H < O EH O h3 a o introl of the TO CONSTITU- OR Rules. jffective con- a term not ety section ft Appendix B. 418 18. The Society, bv itself or its Lodges or Divisions, under- ^"^'^ of in- • , * ° sura lice takes exclusively with members of the Society the followini; in- "uii.Ttakeu ^ by Society. surances (/) : — \Hert' enuiiierutc hnrn!/ tlic himl or kin'h or iiisur- omeunderttiken, f.ff.jfiownil lu'nefitx ; nr insunimr mininst sirhuss, oicithnt, tlisohiliti/, intiniu'ti/ or ohl Xfie : or vontnicts fnr the riihUtii of mcnihers as financial oftivers of the Sitcietif or of ant/ hninch or loihff thereof: or emloirment insurance paj/ahle ilurino lifetime "f the \ («) As to society incorporated under Benevolent Societies' Act, see section 8 ; as to foreign society, see section 10. (o) A corporation which has less than fifty members in good standing on its books, is inelegible for registry as a Friendly Society : section 4 (2) D ; if the applicant be a foreign society, it must have at the date of application a subsisting membership of at least five hundred persons, such persons beinj^ ^onafide residents of Ontario: section 10 (1). (p) The material required of a Friendly Society includes duplicate certined copies of the constitution, laws, rules and regulations of th« society, and also of Ontario branches thereof : section 12 (1). 5li, 1890, an in 2 (13), of operation in corporation, mbersliip of y in Ontario s under the its branches, facts in this ig evidence: 0, and up ta . and active an insurance tion, in good irance certifi- Constitution, es, lodges or is paragraph [Here state IS dule to this Exhibits, are hereby By-laws and or divisions ids or to the Ontario; {i>) ieties' Act, see good standing iety : section 4 at the date of ndred persons, 10(1). ades duplicate lations of the ;i)- AppemUc B. and the documents enumerated in paragraph 19 and in this paragraph, taken together, exhibit all rules, regulations, pro- visions, terms or conditions now in force, declaring, defining or limiting the insurance or insurance benefits undertaken by the Society or any sub-division thereof in Ontario : SCHEDULE OF DOCUMENTS (CONSTITUTION, BY-LAWS, ETC.) 415. EXHIRIT No. Title or Description of Document. Date of Document. Remarks. 23. The Society hereby applies to be registered for the lusuranco transaction of the following insurance : [line set nut .sjnrifirdlh/ acted. the hind or kinih <>f in.siinnKr, lieiui/ a kind nr kinds within the jic'.cefs of the Soci^'tj/ and the jirori.sions nf the Act.'\ 24. In respect of this Application the application fee ofxheAppii- $ has been duly paid to the Provincial Treasury, (7) hts beeif ^ and the [duplicate-original, or copy as the cane ma if he] ^'* " of the Treasury Receipt therefor, numbered and dated 189 , is hereto annexed as Exhibit No Province of Ontario, ) CoHnti/ 0/ j I, of duly appointed to and now holding the office of in the aforesaid Society, make oath and say, that the present ((/) The application fee must be paid before the application is con- sidered ; for tariff of fees, see section 62. 416 Insurance Corporations Act, |-'- s £ S.J ». O'' — :-Si Application is made by me hi nm tide in behalf and by authority of the said Society ; also that I have the means of verifying the correctness of this present application ; and that the facts and documents by the form of Application required to be stated and exhibited are herein truly and fully stated and exhibited ; also that no fact nor document material to be disclosed has been concealed or withheld. Sworn hefore me {r) at. in the Count ij of this day of A.D. 189 . \ / (r) Affidavit may be sworn to before a Justice of the Peace, Notary Public, or Commissioner of the High Court for taking affidavits : section 47(2). EECEIPT FOE APPLICATION FEE. See S2ipra p. 397. POWEK OF ATTORNEY. (Where Head Office of Corporation is else- where THAN IN Ontario.) See supra p. 398. RECEIPT FOR CERTIFICATE FEE. ^ee snpra p. 401. )y authority erifying the le facts and e stated and libited; also jed has been Peace, Notary lavits: section FEE. IS ELSE- FEE. Appendix B. FORM NO. 11. CHANGE OF CORPORATE NAME. Form of Direction made by Registry Officer as to Notice of Application for Change of Name, (see Section 24,sj/y•-••■ b at ^ 9 5;- S;: 13 i^a^ to ^- -j;i •»« 0) No. DEPARTMENT OF INSURANCE, ONTARIO. CERTIFICATE OF REGISTRY AS FRIENDLY SOCIETY. Whereas, by the Application of the. made pursuant to The Insurance Corporations Act, 1892, it has been made to appear to the undersigned, the Registrar oj Friendly Societies for the Province of Ontario, that the said Applicant is entitled to registry as a FRIENDLY SOCIETY, now, therefore, This is to Certify, that the said Friendly Society is accordingly registered for (a).. in the Province of Ontario, for the term beginning on the day of. 189. . .and ending on the day of •. . . 189..., (b) subject to the provisions of the aforesaid Act. No. Entered on Friendly Society Peghter, Folio. .Entry Clerk. (a) The insurance that may be undertaken by the Society is set out in the Certificate of Registry, section 18 (2). * (b) The Corporation is deemed to be registersd from the commence- ment of the first day to the end of the last day specified, section 26 (6). to have its Ap^pendix B. FORM NO. 14. 419 RIO. ^Y 1892, it Jias 'oj Friendly d Applicant ETY, now, accordingly on the y of e aforesaid \ Clerk. ety is set out e commence- tion 26 (6). [ORIOINAIi — TO BE RETAINED BY APPLICANT FOR LICENSE.] INSUKANCE COEPORATIONS ACT, 1892. RECEIPT FOR AGENT'S LICENSE FEE. iV(J Trcatiunj Department, Ontario, ^ 'Toronto 189 RECEIVED from Tuo Dollar.^, in full of Agent's License Fee for term endino 30tk ^unc, 189 . A«8istant TrfaiXircr. [duplicate ORIGINAL — TO BE PRESENTED AT IN8CBANCE DEPARTMENT.] INSURANCE CORPORATIONS ACT, 1892. RECEIPT FOR AGENT'S LICENSE FEE. ^0 ■ Treasury Department, Ontario, ^ Toronto 189 RECEIVED from Two Dollars, in full of Agent's License Fee for term ending 30th June, 189 . Assistant Treasurer. 420 Insurance Corporations Act. FORM NO. 15. PROVINCE OF ONTARIO. Insurance Corporations Act, 1892. No. mm i ' '!' a: ^' -^j -." -* K- 2 r^3 •») No. , dated 189 for the sum of Two Dollars, being the fee payable under the said Act in respect of the Registry hereby applied for. (2) 0) (3) The post-office address of the applicant is {Signature of Applicant) (a) Section 38 (4). \ (b) Section 62; see also section 2 (22). (<) The application must be accompanied by a recommendation from t"he manager of a Canadian or from the chief agent of a foreign insur- ance corporation legally authorized to transact business in Ontario: section 38 (6). Appendix B. 421 , 1892. FORM NO. IG. ,189 :ant] Corporatiom 3r the term Ilexes hereto , dated allars, being he Registry ndation from oreign insur- in Ontario: RECOMMENDATION FOR REGISTRY. Pumuoit to Inmrance ('orporatmis Act, 1892, Sec 38, (6). The undersigned, the {<.'> of the (//) having a (r) acquaintance with the within mentioned {>!) hereby recommends the said Applicant as a person suitable be registered as an Insurance Agent under the provisions T/tt' Inmrance Corporations Act, 1802. Dated at 189 (ffl) "Man- ager" or "Chief Ageut for Ontario." as the case may bo. (6) Cori)or- atenanieof . luBurance CO Company. of (c) "I'ersou. al" or "buBinesB" or as the case may be. • • • (d) Name of Applicant for registry FORM NO. 17. DEPARTMENT OF INSURANCE, ONIARIO. Ao. INSURANCE AGENT'S CERTIFICATE OF REGISTRY.* For the term beginning 189. .and ending 189 S Whereas, pursuant to The Insurance Corporations Act, 1892^ it has been made to appear to the undersigned, the Insurance * Section 38 (7). § Section 26 (6). 422 Insurance Corporations Act. Registry Officer under the sdid Act fur the Province of Ontario, that of is entitled to registry as Insurance Agent under the provisions of the said Act. Mow, therefore, (his is to Certify that the aforesaid is accordingly registered as an Insurance Agent for and during the term beginning on the , day of 189, , . and ending on the day of 18U... Kntered on the Insurance Agents' Iie()ister an No. , Entry Vlerh I C!;: .:! FOliM 18. Wliere the Heftistry Officer has received intimation of intention to contest the registry of any appUcant, the folhnvin}^ notice requiring statement ojf objections has been employed by tlio Department : — NOTICE TO STATE OBJECTIONS. Department of Insurance, Ontario, Parliatiwnt Baihlinns, Toronto, 189 Sir, — In the matter of the Application of for Registry A., you are hereby notified that the above has filed in this Department an Application for Registry with exhibits. If you desire to take objections to the granting of the re- gistry thus applied for, a statement setting out particularly the objections intended to be raised, and the grounds of such objec- tions, must be filed with the undersigned on or before If before the filing of objections it is desired to inspect the Applicant's application and exhibits, permission to inspect may, on request in writing, be granted to your Solicitor or other duly accredited egent. lieijistrii Officer. ce of Ontario, ..is entitled to s of the said said urance Afrent day of ^ utry Clt'i'h. ition to contest )tiee requiriuK partment : — Ontario, ruiito, 189 , notified that I Department g of the re- ticularly the such objec- re ) inspect the inspect may, r other duly APPENDIX C. POLICIES AND FORMS OF CONTRACTS ILI-USTliATIVK OF THE PU(niSIONS OK THE INSURANCE CORPOKATIONS ACT. try Ojficer. mm i*4 0':: -» '.. M tQ APPENDIX C. POLICIES AND FOKMS OF CONTRACTS. EEDUCIBLE TERM ENDOWMENT POLICY. (see page 46, supra.) Sutnber. Amount. Age Premium $ . THE PEOPLES LIFE INSURANCE COMPANY. HEAD OFFICE, TORONTO, CANADA. Incorporated by Special Act of the Legislature of Ontario. The Peoples Life Insurance Company, (hereinafter called the Com- pany), in consideration of the application for an insurance upon h •ife by (hereinafter called the Assured) of in the County of and of the agreements and statements contained in such application which are hereby made part of this contract and of the premium of Dollars to be paid in advance to the Company at its Head Office in the City of Toronto, on or before the delivery of this Policy, and thereafter on the day of in every year during the term of years ensuing the date hereof, agree to pay to the assured the sum of Thousand Dollars on the day of , ..one 'v.> -■• 426 Insurance Corporationn Ac t. thoasaml eijjlit huudred and or in case of the death af the assured before the said date to pay to the sum of Thousand Dollars, (first deductinj^ therefrom the balance of the current year's Premium, if any, and all loans on account of this Policy), upon satisfac- tory proof at its Head Office of the death of the assured during the continuance of this Policy under the following conditions: 1. This policy Khali be crccliturt, during the continuance of the same, with its allotted share of the profits of the Company ascertained and declared by the Directors of the Company at each (piinquennial period after the date hereof, the amount of such profits to be applied in reduction or extinction of PiPuiiums payable for the latest year or years las the case may be), of the endowment period, so that the termination of the endownaeiit period shall bo thereby accelerated and the said in.surance money payable at an earlier date than that herein fixed. 2. Thirty days' finvee will be allowed for payment of premiums ; after the expiration of thirty days from the time any premium is payable, if the same bo unpaid, this policy shall be void, except as provided in the following clause hereof. 3. After three full annual premiums have been paid upon this Policy, the Com- pany will, upon the legal surrender thereof before default in payment of any premium, or within four months thereafter, issue a non-participating jiolicy for the full proportion of the n.mount of this Policy which tlie number of full years' premiums paid ';,)ars to the total number required by the term for which this Policy is issued or for the assured's expectation of life. ■1. If the assured shall die by his own hand, or by the hand of Justice, or in the Military or Naval service of any foreign power, or if there be any untrue state- ment material to this contract in the application for this insurance, or in the answers to the Medical Examination relating thereto, this Policy shall be void, and all payments made thereon forfeited to the Company, and the Company shall pay to the assured or the beneficiary named in tliis Policy the surrender value hereof only. But after two years this condition shall be void, and provided the age of the assure! has been admitted by the Company and the assured be not in arrear of any premium thereon, the liability of the Company under this Policy shall be unconditional, fi. No paynant of pre uiu'Ji shiU be effectual or binding upon the Company (notwithstanding that the usual receipt may have beeu given therefor), if the same be made by cheque or note and such cheque or note be not paid according to the exigency thereof. C. No condition of this contract can be changed, waived or altered except in writing, signed by the President or Manager of the Company. — ' In Witness Whereof, the said Company has hereunto I affixed its Corporate Seal, and by its President Seal. V and Manager si>;ned and delivered this contract at the City of Toronto, this day of 189. . Manager. President. • in case of the Thousand current year's upon satisfac- ed during the e same, with its iloclared by tlio date liereof, the n of Pieuiiuius lowmeiit iioriocl, eby accelerated It liei-eiu fixed. uius; after the , if the same he ig clause hereof. .'olicy, the Coui- )aynieiit of any ting policy for or of full years' for which this astice, or in the y untrue state- .•ance, or in the V shall be void, Company shall iirreuder value d provided the Hired be not in der this Policy the Company lierefor), if the mid according 31'ed except in has hereunto . . President ct at the City 189.. President. Ai^])en(lic C. 427 No , Sum Assured §■ . Life, Special Reduced System with Profits Established in 1847. THE CANADA LIFE ASSURANCE COMPANY. Incorporated by Act of Parliament. Subscribed Capital One Million Dollaks. Chief Office— HAMILTON, ONT. Dated. Annual Premium for first five years $. thereafter - - . Payable Issued in terms of " An Act to secure to Wives and Children the benefit of Life Insurance."— 47 & 48 Vic. Cap. 20 and 28, and amendments. 1. WiiEKEAs, the person assured by this Policy, hatli proposed to effect an assurance with The C.vxada Life Assuuance Company, in the sum of Dollars, on the life of himself for the benefit of his for the remainder thereof, and has caused to be delivered into the 0.ffice of the said Company a declaration sij^ned by the said Assured bearing date the day of in the year of our Lord one thousand eight hundred and containing with the relative papers the several particulars requisite for such assurance, which declara- tion and relative papers the said assured hath agreed, shall be the basis of the contract between him and the said Company. 2. And whereas, the said assured hath paid the sum of Dollars as a premium for said assurance for twelve calendar months from the day of one thousand eight hundred and 3. Now THIS Policy Witnesseth, That if the assured shall die before the expiration of twelve calendar months from the said last mentioneeen in existence two years shall l»e indisputable on any ground whatever. Policies of less than two years" standing on the lives of persons who sli.all die Ijy suicide, duelling or by the han Is of justice, shall be void, excepting in those ca.ses where the Policins have been effected by one party on the life of another, or where they have been assigned to third parties for valuable consideration. 3. Policies of not less than three years' standing will l)e purchased at a fair valuation, according to the rides and regulations of the Company for the time being. 4. Residence is ]iermitted within any part f)f the Dominion of Canada and of the United States, as far south .as to hiclude the States of Virginia, Ken- tucky, Missouri, Kansas, Colorado, Utah, Nevada, and California, if the jierson on whose life the Jissm'ance dejiends be not engagefl in mining jmrsuits and al.so in any part of Europi'. Travel only — not permanent residence — is pennitted in any part of the United States between 1st Novemln-r and 1st June in any year. Per.sons may voyage a.s passengers in g(KKl seaworthy vessels in time of peace, fnjm any ])r)rt within tlie said limits of residence, to any other port within the same, either in America or in Europe; excejiting, however, voyages from ports on the Pacific coast to others on the Atlantic coast of America, or vice verm, and also excepting voyages from the said Pacific coast to Europe, or vice vcr.fd. If tlie person or i)j'rsons assured shall reside beyond the boundaries thus described, or travel beyond the limits thus fixed, without i)r?viou8ly obtaining permission by the Directors fo. the time being, this Policy shall be inunediately forfeited, and all assurance thereon shall cease; excepting in cases where Policies have been effected by one party on the life of another, or where they have been assigned to third i)arties for valuable consideration, when forfeiture shall not take place, if satisfactory evidence be given to the Directors that the facts were communicate d to the Office as soon as they were known to the parties interested, and j)ayment Ije moAe of the extra premium required to cover any additional risk incurred. 430 Insurance Corporations Act. This condition No. 4 shall bo altogether cancelled and dispensed with after two years from the date of this Policy, provided the person whose life is assured shall not, during that time, have resided or travelled beyond the boundaries and limits specified. President and Managing Director. 1 c ...^ l '-5 l> c jv^ ^.3 ?; ^• \^ r-j* 1^ o «^.-k ^-* •>^ ji.' t^ to « TJ^ June, 1887. Secretary. Printed in Accordance with the Statute 52 Vic. Cap. 32, Ontario. The declaration mentioned in the Policy, and contained in the appli. cation for assurance, is in this form : I the above designed, do hereby declare that to tlie best of my knowledge and belief, I am at present in good health, not being afflicted with any disease or disorder, extei'nal or internal ; and that the above statement of my age and other particulars is true. And I (the party in whose favor the assurance is to be granted), do hereby agree that this declaration shall be the basis of the contract between me and The Canada Life Assurance Company, that I will accept and take up the Policy hereby applied for, when issued by said Company, and that if any untrue averment has been intentionally made, or any material inform ttion has been wilfully withheld in this declaration, or in the replies to be given to the Com- pany's medical adviser in connection herewith, all sums which shall have been paid to the said Company upon accouu^ of the assurance granted in consequence thereof, shall be forfeited, anJ; the assurance be absolutely null and void; and further, that the continuance of the assured in the same state of health at the time of the payment of the first premium, is a condition of the assurance taking effect. Appendix C. 431 nsed with after I whose life is ^ beyond the lag Director. Secretary. 32, Ontario. cl in the appli- hereby declare esent in s^ood r, external or ler particulars hose favor the ration shall be jife Assurance by applied for, averment has ; been wilfully to the Com- which shall jhe assurance the assurance nuance of the yment of the 20. PAYMENT LIFE— SEMI-TONTINE POLICY. (See pa^e 48, Supra.) Sum Insured $ No Annual Premium Age THE NORTH AMERICAN LIFE ASSURANCE COMPANY. Head Office, 22 to 28 King St. We t, TORONTO, ONT. In Consideration of the Application for this Policy and of the statements and agreements therein contained, hereby made a part of this contract, and of the annual premium of Dollars to be paid in advance to the Company, at its Head Oftice, in the City of Toronto, on the delivery of this Policy, and thereafter on the day of in every year during the term of years insures the life of of in the County of and Province of and promises to pay to h . . . . executors, administrators or assigns, the sum of Dollars, first deducting therefrom tlie balance of the current year's premium, if any, and all loans on account of this Policy, upon satisfactory proof at its Head Office, of the death of the insured during the continuance of this Policy, under the following provisions : 1. That, if after being in force three full years, this Policy shall lapse for the non- payment of any premium, note, cheque or other obligation given on account of a premium, the Company will, upon application of the insured and the surrender of this Policy within three months after such lapse, issue at insured's then age, a non-partici- pating paid lip Policy with the same provisions as tins Policy, for such sum as the legal net reserve thereon at the time of lapsing (less any indebtedness] hereon) will purchase as a single premium at the Company's published rates; or if, after the payment of three or more annual premiums hereon, this Policy is surrendered while in force, the Company will pay its equitable caih value, according to the rules of the Company ; 2. That the insured may, without previous notice to the Company, travel beyond the limits of ordinary hazard, in wliich case an extra premium shall be charged for the extra risk, equal to that usually charged in similar cases by other first-class Companies ; but, if the extra premium be not paid at tlic time the extra risk begins, it shall not invali- date THIS POLICY, and the Company shall have a lien hereon for such extra premium ; 3. That, after being in force three years, the only conditions which shall be binding upon the holder of this Policy, are that he shall make the payments hereon as herein provided, and that the provisions as to residence, travel, occupation, proofs after death, and limitation of time for action or suit, shall be observed. In all other respects, after the expiration of the said three years, the liability of the Company under this Policy shall not be disputed. 4. This Policy is issued and accepted under the Company's Semi-Tontine Dividend Plan upon the following special provisions printed and written, and also those on the back hereof, all of which are hereby incorporated herein and made part hereof : 432 Insurance Corporations Act. I ( >:5f t o^^ ^ «-*r5 ^, 0^-3 K- O SI 5: •k. 5' ^ »"rcti) the siirjilas apportioned by this Company to this Policy; or secondly, to convert the said reserve and surplus into a paid-up Policy with- out profits for an oiiuivalenf amount, provided always that if the amount of said paid-up I'olicy shall exceed the original amount of the insurance, a certificate of good healtli from a medical examiner of the Company, and subject to its approval, shall be reciiiired ; or tliirdly, to continue the insurance for the original amount without further payment of premiums, the Policy being paid-up by its terms, and apply the entire Tontine Dividend to the purchase of an annuitj', which, together with the dividends on this Policy shall be paid in cash to the legal holde. uf holders of this Policy; or fourthly, to withdraw In cash tho share of the accumulated surplus apportioned by said Company to this Policy, wliicli remains in force as a fully paid-up participating Policy for the sum named herein ; but if no notice in writing shall be given to the Company of the way elected in which to applj" the Tontine Dividend, within sixty days after the com- pletion of th-' Tontine Period, then the Tontine ])ividend shall be applied in the third way Just mentioned. Prot'ision /<■".— That after the completion of its Tontine Dividend Period, while thia Policy shall remain in force, it shall be entitled to all the rights and privileges of ordinary Policies of the same age and kind. Prnvinion fr'.— A graci of one month will be allowed in payment of Premiums on Policies in this class, at the expiration of which time if said premium remain unpaid this Policy shall thereupon become Void. But n re-instatc7nent will be permitted, if application therefor be made in writing to the Company at its Head Office within two montliB alter the expiration of the month of grace, accompanied with a certificate of good healtli from a medical examiner of this Company, on the Company's Form No. 24, subject to its approval, provided always that wheiiON er advantage is taken of this grace or of the privilege of re-instateinent, interest shall be paid to the 'Jompany at the rate of seven per cent, per annum for the time deferred. No provision of this contract can be changed, waived, or modified, or permit granted, except by a written agreement signed by the President, Vice-President, or the Managing Director of the Company. — — ' In Witness Whereof, the said Company has here- I unto affixed its Corporate Seal, and by its Se.\l. President and Managing Director signed and delivered j this contract at the City of Toronto, this day of A.D. 18.. Manaijing Director President. Appendix C. 488 lall 1)0 t'oinpli'ted liis Policy unless 1 ol' its Tontiiin rce. cies on the Semi- mpletiou of their ly among such Period, as afore- sly by Hurroiuler, e option upon its are of the assets, Company to this l-iip Policy witli- [\t of said paid-up :e of good healtli ihall bo required ; further payment e entire Tontine iivideiuls on tliis y ; or fourtlily, to by said Company ig Policy for tlis e Company of tlie ya after tlie com- iplied in the third nd Period, while and privileges of of Premiums on remain unpaid be permitted, if Office within two ;h a certificate of ly's Form No. 24, ken of this grace pany at the rate Dr modifiecl, or the President, my has here- and delivered President. This Pnlicfj is issued, and also the contract, be untrue; or if any premium, note, checiue, or other obligation given on account of a i>remiiim, be not paid wlien due; or if, witliout a i)ermit, the insured engage as an occupation ; (1) in blasting, mining, aubmarinc labor, the production of any explosive material, or in any naval or military service (except in the militia or volunteer corps in defence of Canada) or (2) engage in a-rial or arctic voyages or in employment on a railroad, a steamboat or other vessel, or (3) reside elsewhere than in Canada, Newfoundland, Kurope or the United States, or (4) between tlie 15th days of June and November in any year, reside in any part of the United States south of the- .'inth degree of North Latitude, or in Europe south of the 42nd degree, tliis Policy sliall be void, and all payments made upon it aliall be forfeited to the Company. II. — The Company does not insure against self-destruction in any form, or against death in conseiiucnce of the violation of law, should the deat'i of the insured occur within three years of the date hereof. III.— Upon the death of the insured, the claimant shall make proof thereof in writing by oath or solemn declaration, including such further information about the said death, the claim, and the ago of the insured, it not previously admitted, with duly authenti- cated evidence establishing each claimant's interest in this Policy, as the Director.-t shall think reasonable, and no suit or action shall be brought against the Company on tliis Policy after one year from the said death. The age of the insured will be admitted by the Company on due proof, but if under-stated and not so admitted, the amount of the insurance payable under this Policy at its maturity, shall in no case be more than tlie premium charged would have j)urcliased, by the Company's rates in use at the date hereof for such person's true age. IV. — That no information or statement not contained in the application for this Policy, no notice of any facts touching said application or tliis Policy, however made, given, received or acquired, shall affect the Company, unless forthwith communicated in writing l)y the insured to the President, or Managing Director, at the Company's Head Office, and assented to by him in writing for tlie Company. v.— That under no circumstances shall this Policy be held to be in force iii-.til the actual payment to, and acceptance of the first jiremium due tliereon, by an authorized :igent of tlio Coni])any and the delivery to tlio insureil of tlie necesMaiy receijit signed hy tlie JtannKing Director, the life of the person proposed fr>i' insurance l)eing at the time of Huch paymtnt and delivery in tlie same condition of iicaltli as stated in the iiiiplica- tu)ii for this Policy. VI. — Should the Company itjem any occasion ciuisent to lenew or revive n Voliey at'tiT the same has become null and void every such renewal or revival shall always be understood as in iiowisv' creating any precedent fcU' waiving, and not as a waiver of, hii<- conditicm or tigreement in tlie I'oliey or Apjilication. /^^^Thc Followinj/ Certi/ie(des{\ to i inrhL^irr) xhonid he xirora to Ix/ort' <( Nottirji Publie or other offieer hdvinr/ a serd, ijudlifled to (tdminister un oath, (((fir mat ion or statutory declaration, and ((eeoinprtni/ the notice of death, to enable the Company to act upon the claim as itrumptly (is possible : 1.- A certificate from the physician who attended the insured during his last sick- ness, stating i)articularly how long he attended him and the nature of the disease, witli its duration, and the time, place and other circumstances of the death. 2. —A certificate of a disinterested acquaintance of the deceased, certifying to the time, place and fact of the death, and that tiie deceased was the jwrson insured by that name in this Company. H.I.C.A. — 28 434 Insurance Corpurations Act. 3 —A certifleate from tJie undertakiT, sexton or clerttyman who offlciatrd at tlip funeral of the dcceaeed. and eaw tlie bo••••••■••■■ his executors, administrators or assigns, the sum of first deducting therefrom the balance of the current year's premium, if any, and all loans on account of this Policy, upon satisfactory proof at its Head Office, of the death of the insured during the continuance of this Policy, under the following provisions : 1. That, if after being in force three full year.?, this Policy shall lapse for the non-payment of any premium, note, cheque or other obligation given on account of a premium, the Company will, upon application of the insured and the sm-render of this Policy within three months after such lapse, issue at insured's then age, a Don-participating paid up Policy with the same provisijus as this Policv, for such Sum as the legal net reserve thereon at the time of lapsing (less any indebtedness liereon, will purchase as a single premium at the Company's published rates ; or if, after the payment of three or more annual premiums hereon, this Policy is surrendered while in force, the Company will pay its equitable cash value, accord- ing to the rules of the Company; D offlciatrd at tlio icy, duly authcnti- policy in the Coin- voto in person for >NTINE. COMPANY, ad of the state- a part of this Dollars, , in the City of I the ft premiums for d Company no the County of jrorrises to pay r's premium, if actory proof at continuance of all lapse for the given ou account Lud the sui'reuder red's then age, a Policy, for such any indebtedness blished rates ; or lu, this Policy is sh value, accotd- Appeiiflix C. 485 2. That, after being in force two years, proridins the age of Iho insured has been admitted, the only conditions which shall be binding upon the holder of this Policy are that be shall make the payments hereon as herein provided. In all other re- spects, after the expiration of the said two years, the liability of the Company under this Policy shall not be dispdtkd. 3. This Policy is issued and accepted under the Company's Nou-Forfeitable Tontine In%-e8tmeut Plan upon tho further following provisions printed and written, and also tliose ou the back hereof, all of which are incorporated herein and made part hereof. Proci«ion 4.— That the Tontine Dividend Period for this Policy shall be com- plete ou the day of A.D rruvition /?.— Thatno dividend shall be allowed or paid upon this Policy unless the person whose life is hereby insured shall survive the completion of its Tontine Dividend Period as aforesaid, and unless this Policy shall then be in force. I'nn-usUm C— That ninety per cent, of the surplus or profits derived from such Policies on the Non-Forfeitable Tontine Investment Plan as shall not be in force at the date of the completion of their respective Tontine Dividend Periods, shall be apportioned equitably among such Policies as shall complete their Tontine Dividend Periods. Proiuion D.— That upon the completion of the Tontine 'Jividend Period, as aforementioned, provided this Policy shall not have been terminated previously by surrender, lapse or death, the legal holder or holders of this Policy shall have the option upon its then surrender, either, first, to withdraw in cash this Policy's entire share of the assets, that is the accumulated reserve which shall be Dollars, and in addition thereto the nurpliw apportioned by this Com- pany to this Policy ; or, secondly, to convert the said reserve and surplus into a paid-up Policy without profits tor a,n equivalent amount, provided always that if the amount of said paid-up Policy shall exceed the original amount of the insur- ance, a certificate of good health from a medical examiner of the Company, and subject to its approval, shall be required ; or thirdly, to withdraw in cash the share of the accumulated surplus apportioned by said Company to this Policy, and. in addition, to continue the insurance for the original amount (the Policy being paid up by its terms), participating in future profits : but if no notice in writing shall be given to the Company of the way elected in which to apply the Tontine Divi- dend, within two months after the completion of the Tontine Period, then the Company may apply the Tontine Dividend in the third way just mentioned. Provinion G.— That after the completion of its Tontine Period, while this Policy shall remain in force it shall be entitled to all the i ig); ts aud privileges of ordinary Policies of the same age and kind. Provision H.—\ grace of one month will be aliowed in payment of Premiums, at die expiration of which time if said premium remsin unpaid this Policy shall thereupon become void. But a re -instate )nent will be permitted, if application therefor be made in writing to the Company at its Head Office within two months after the expiration of the one month grace, accompanied with a certificate of good health from a medical examiner of this Company, subject to its approval, pro- vided alwa3's that whenever advantage is taken of this grace or of the privilege of reinstatement, interest shall be paid to the Company at the i"ate of six per cent, per aiiuum for the time defei'red. No provision of this contract can be changed, waived, or modified, except by a written agreement signed by the President, a Vice-Presidentf or the Managing Director of the Company. 430 Insurance Corporatlom Act. ^\ In Witness M'/zereo/, the said Company lian hereunto attixed „ _ [its Corporato Seal, and by its President and Mana(,'in^^ Director ni^ned and delivered this contract at the City of Toronto, this day of A.D Examined hij . Ri'ijixtered hij . Mdnai/inji Director. Pri'nident. [Endorsed jan Policy. \ PnOVISIONH WHICH KXPIUK AT THK END OF TWO YEAH8 FHOM THE COMMENCE- MENT OF THE INSURANCE. I V.i S5 If within TWO years from the date named from the connnencomeut of this lusinance, the insured shall die by any act of solf-dostructiou whatever, whether he be saue or insane at the time, or if any statement made in the application or the answer given to the Medical Examiner and therein decli rod to be material to the contract, be untrue: or if any note, cheque or other obliBntion given on account of the first or second year's premium, be not paid when due ; or if , without a permit the insured engage as an occupation : (1) in blasting, mining, submarine labor, uhe production of any explosive material, or in any naval or military servicu (except in the militia or volunteer corps in defence of Canada) or (2) engage ni lerial or arctic voyages or in employment on a railroad, a steamboat or other vessel , or(3) reside elsewhere than in Canada, Newfoundland, Europe or the United States or (4) between the 15th days of June and November in any year, reside in any part of the United States south of the 36th degree of North Latitude, or in Europe south of the 42nd degree, this Policy shall be void, and all payments made upon it shall be forfeited to the Company; Provided liowever that tlio insured iimy, witliout. previous notice to the Company, travel beyond tins above liinitH, but in such case an extra premium shall be cliarged tof the extra risk, eiinal to that cliarged in similar eases by other tirst-class Comitanies in Canada, but, if the extra premium be noti)ai(lat the time theextiM risk begins, it shall not invalidate this Policy, but the Company shall have a lien hereon for such e\tra iintniMiii. lereuiito aflixed .President and contract at the , ..A.IJ PicHident. THE COMMENCE- oncoLueut of thJH hatover, whether ho application or to be material to icntiou given on ue; or if, without ining, submarine r military servico I or (2) engage ui iter other veBsel, ;lje United States reside in any part in Europe south ade upon it sliall •ed nm\ , witliout but in such ciis<' D tliat charged in e extra preniium tliis Policy, but A/tj)('n(Ji.r C. VM ACCIDENT INSUKANCK POLICIES. (See Section B(i, paf,'e 207). ACCIDENT POLICY. Principal Sum $. Premium 9. THE TRAVELERS INSURANCE COMPANY. HARTFORD, CONN. In coNsinKRXTioN OF the warranties in the application for this Policy and of Dollars, does hereby insure of County of State of under classification bein^ a by occupation, for the term of months from noon of 18 .... in the sum of Dollars per week, against loss of time not exceeding 2C consecutive weeks, resulting from bodily injuries effected during the term of this insurance, through external, VIOLENT and accidental means, which shall, independently of all other causes, immediately and wholly disable him from transacting any and every kind of business pertaining to his occupation above stated ; or if loss by severance of one entire hand or foot results from such injuries alone within ninety days, will pay insured one third op the principal sum herein named, in lieu of said weekly indemnity, and on such payment, this Policy shall cease and be surrendered to said Company ; or in event of loss by severance of two entire hands or feet, or one entire hand and one entire foot, or loss of entire sight of both eyes, solely through injuries aforesaid within ninety days, will pay insured the fcll principal scm atoresaid, provided he survives saiil ninety days ; or if death results from such injuries alone within ninety days, will pay Dollars to if surviving ; in event of prior death, to the legal representatives or assigns of insured ; provided : 1. If insured is injured in any occupation or exposure classed by this Company as more hazardous than that here given, his insurance shall be only for such sums as the premium paid by him will purchase at the rates fixed for such increased hazard. 2. This Policy shall not take effect unless the premium is paid previous to any accident under which claim is made ; and the Company may cancel it at any time by refunding said premium, less a pro rata share for the time it has been in force. 488 Insurance Corporations Act. c S5 o3 H. Thi' Company '« total lialtility h*T. No claim shall be valid in excess of 810,()0<) with §50 per weekly indem- nity under accident policies, nor for indemnity in excess of money value of insured's time. All premiums paid for auoh excess shall be returned, on demand, to insuretl or his legal representatives. 7. Any medical adviser of the Company shall be allowed, as often as he requires, to examine the ^lerson or body of the insured in resiiect to alleged injury or cause of death. 8. Any claim hereunder shall be subject to proof of interest. A cojiy of any assignment shall be given within thirty days to the Company, which shall not be responsible for its validity. No agent has power to waive any condition of this policy. In witness whereof, The Travelers Insurance Company has caused this policy to be signed by its President and Secretary, and counter- signed by District Agent at Toronto, Ontario, this day of 18. . . . (Signed) (Signed) Secretary. President. (Signed) District Agent. Apj}en(Jic C, 480 rHluiII nut «',\fff>nt and >ni tini)) (if Hiicli Company. N'n lit within tlirt'f M'^tin within 'iih» Hiiicidi', Hunt' or i bfKly (the hinly ident, norcloath, iirtly, flin-ctly or pred or nffrott'd : :ing, ni«'dioaI or by injuries und uoticM, voluntary t Muh.-itanct'M. or or Hsrhting ; war y other pf-rson) ; a corporation ; ning Hteam as a conveyance not I)? on a railway • weekly indem- money value of )e returned, on as often as he «I)ect to alleired •est. A copy of lompany, which r to waive any iNY has caused and counter- rio, this President, strict Agent. Amount, 9 Premium, 9 THE ACCIDENT INSURANCE COMPANY — OF III- AD OFFICE : NOKTII AMERICA. MOSTIiFAL,CAS'Al>A. Deposited at Alhany, N.Y., !?1(K),000. In CON8IUKHATIOS of the warrantifH in the application for this luHur- luice and the payment to thia (Jompany of Dollars, the Company does hereby insure (subject to conditions on back) of in the County of and fitate of by occupation a under Classification , for the term of months, ending on the day of 180. . . ., in the sum of Dollars per week (not exceeding? 2(\ consecutive weeks) for loss of time arising from injuries received to the person of the insured during the term of this Policy, resulting from or caused by violence, accidentally occasioned, of which there shall be external and ctHible Ki;in, and not otherwiHO, and which shall, independently of all other causes, immediately and wholly disable him from the performance of his usual business or occupation, under the Classification in which he ia insured hereby, or should death result from such injuries within ninety days from the d iteof the accident will pay, within thirty days after receipt of satisfactory proof thereof, the sum of Dollars to the beneficiary named in the application, if surviving, or, if dead, to the legal representatives of the insured. Prwidef, that if tha insurdd b3 injured while engaged temporarily or otherwise in any occupation rated higher than that insured under, the amount of insurance or weekly indemnity payable, shall be in amount proportionate to that which the premium which has been paid would in- sure under such higher classification. Also, that if the insurance under this Policy be for both death and indemnity, the insurod shall have the option of receiving one- half the principal sum insured in the event of the accidental loss of both eyes or of two complete limbs (legs or arms), insteal of weekly indemnity as provided herein ; and in casa of such piyment being accepted and re- ceived by him. the Company shill not b^ subject to other or further demand hereunder, and this Policy shall be delivered up for cancella- tion. In Witness Whereof, The Accident Insurance Company of North America has caused this Policy to be signed by its President and Man- aging Director, and countersigned by Agent, at this day of 18.. (Signed) (Signed) President. Managing Director. .Agent. 440 Insurance Corporations Act. This policy is issued and accepted subject to the followiu}^ conditions, VIZ. ( >2 ctf ^ Ci' '' bj ^ ors O to Vi :3i ^ s «n QQ 1. That no claim shall be payable hereunder, unless the premium due shall have been actually paid to a duly authorized Agent of the Com))any previous to the happening of any accident causing injury to, or the death of the party named in this Policy : and the Company may cancel this Policy at any time by returning said premium, less ai»'o rata part thereof for the time it has been in force. 2. That the age of the insured is not under 18 years, and shall not exceed 65 years luiless additional premium is paid. 3. The amount payable in the event of death shall be minus such sums paid AS indemnity within the policj' year. 4. Immediate written notice shall be given to the Company at Montreal, or to the Agent who countersigned this Policy, of any accident, with full par- ticulars th'Teof, so that the Company may, if it sees fit, cause the injury or body of the insured to be examined by its own medical representative. Failure to give such notice shall invalidate all claim under this Policy. This Policy shall not be valid if any post mortem or coroner's inquest has to Ije held without the Company being duly notified in time to have its medical repre- sentative present. 5. Any question as to the liability of the Company to pay any claim under this Policy shall, if the Company require, be referred to arbitration, the ex- pense of such arbitration to be borne equally by the Company aid the claim- ant, and no suit or proceeding at law shall be brought, or arbitration required to recover any moneys hereunder, unless the same is commenced within one year from the time of such accident, and unless affirmative proof of death be furnished within seven months from date of accident, no claim shall be valid hereunder. 0. It is distinctly understood and agreed by the insured that he shall u.se and observe due diligence for his personal safety and protection, and in no case •shall this insurance cover disappearances nor injuries of which there is no visi- ble external mark or sign upon the body; nor will it cover death or injury, resulting from or attributable to any of the following causes : Disease or bodily infirmity, hernia, fits, vertigo, sleep walking, medical or surgical treatment, taking of poison, contact with poisonous substances, blood poisoning (except in the case of physicians and surgeons), inhalation of gas, duelling, fighting, quarrelling, feud, wrestling, unnecessary lifting, over exer- tion, suicide (sane or insane), freezing, sunstroke, self-inflicted injuries (or in- juries inflicted by or at the instance of any beneficiary by this insurance), war, reljellion, riot, racing, voluntary exposure to unnecessary or obvious danger or perilous venture (unless in the humane effort to save human life), violating the rules of any company or corporation, intoxication, gymnastic sports (except for amusement), or being engaged in any unlawful or vicious act, entering or trying to enter or leaving any railway train or other conveyance using steam as a motive ix)wer, while the same is in motion : or walking or being on the road-bed or bridge of any railway (unless the party is a R. R. employee). vin<,' conditions, emiuni due shall umpany previous eath of the party 'licy at any time ' time it has been shall not exceed 8 such sums paid ny at Montreal, it, with full par- se the injury or representative. s Policy. This t has to be held '■i medical repre- ny claim under ;rarion, the ex- lud the claim - ration required ced within one ■oof of death be ti shall be valid lat he shall u.-ie , and in no case here is no visi- iath or injury, ng, medical or Dstances, blood lalation of gas, ing, over exer- njuries (or in- surance), war, ious danger or , violatmg the sports (except it, entering or e using steam being on the iployee). Appendix C. 441 7. Travel and residence beyond the civilized limits of Canada, United States, Republic of Mexico, West Indies and Bermudas, Sandwich Inlands Europe, Africa north of the Tropic of Cancer, the Nile, Asia Minor, and Palestine, require a written permit by the Company. Travel by rt-giilar I>assenger or mail lines on sea between such limits is permitted. 8. The risk taken by this Company on any one life is limited to ten thous- and dollars and fifty dollars weekly indenniity ; and no insurance to any further amf)unt whether affected by policy or ticket shall hold gootl against the company. 9. No assignment of this policy shall be valid unless endorsed hereon and a copy furnished to the Company immediately after execution, and any claim shall be subject to proof of interest. 10. That notice shall be given to the Company of any additional insurance effected (whether life or accident) subsequent to the date of this policy. NOTICE OF INJURY.— To be detached from Policy and forwarded immediately to the Accident Insurance Company of North America at Montreal, Canada, or to Agent, at In the event of the insured meeting with accidental injury, for which he intends claiming for indemnity, the Company must have immediate notice of such accident and injury, with full particulars of the same (see conditions of Policy). Name of injured Post-office address Date of payment of premium Date of accident hour State particolarly what you were doing, and how the accident happened '. State the nature of injury State the length of time you will probably be disabled days. Give the name and address of your medioal attendant : When did he first treat the injury ? (Sign.). Dated at this dav of is. 442 Insurance Corjjoratioiis Act. Amouat, I. Policy No. THE MANUFACTURERS ACCIDENT INSURANCE COMPANY. HEAD OFFICE : TORONTO, ONT. O •^j s :::3 In coNsii>EiiATioN OF the statements made in the apphcation for this Policy and warranted to be true and of the sum of Dollars, The Manofacturebs Acciusnt Insurance Company, (hereafter called the Company) hereby agree with of in the County of Province of by occupation (hereinafter called the insured) and who is classified by said Company according to their rules, as That (subject to the stipulations and conditions of this Policy con- tained in and indorsed hereon which are not waivable or alterable by agents, and all of which are to be read as part of this Policy), in case by reason of external, violent and accidental means occurring during the continuation of this Policy, the said insured shall die within three months after tlie occurring of such accident, they, the said Company, will pay to the sum of Dollars. Or if the said insured shall sustain any bodily injury caused by such accident as aforesaid, which injury shall by itself cause the irrecoverable loss of sight of both eyes, or loss of both legs above the ankles, or both arms above the wrists, or one leg above the ankle and one arm above the wrist, within three calendar months from t\e date of the said accident, then the said Company shall pay the insured the sum of One Thousand Dollars for each thousand dollars of insurance ; or if the said insured shall sustain any bodily injury caused by such accident as aforesaid, which injury shall by itself cause the loss of one leg above the ankle or one arm above the wrist within three calendar months from the date of the said accident, then the said Company shall pay to the insured the sum of Three Hundred and Thirty-three Dollars for each thousand dollars of insurance ; or if the insured shall sustain any bodily injury caused by such accident as aforesaid, which by itself shall totally disable him and incapacitate him from attending to his ordinary business or avocations, then the said Company shall pay the ins':red the sum of Five Dollars per week for each thousand dollars of insurance so long as he shall be totally disabled for business and for his ordinary vocations provided, however, that the period during which compensation for the total disablement is to be paid shall not for any single accident exceed twenty-six consecutive weeks in any one year. Ajjpendix C. 443 URANCE cation for this Dollars, iter called the E by e insured) and .as is Policy con- r alterable by olicy), in case ng during the within three id Company, t used by such irrecoverable ikles, or both rm above the aid accident, ne Thousand said insured as aforesaid, the ankle or 1 the date of insured the ch thousand odily injury tally disable business or the sura of e so long as ry vocations lion for the dent exceed This Policy is in force for twelve months, ending at noon of the day of 189 Provided always that if this Policy or any renewal thereof is obtained through any material misrepresentation or concealment by or on behalf of the insured, then this Policy shall become absolutely void, and all premiums paid in respect thereof shall be forfeited to the Company. Provided also that all sums that may be paid to the Company in virtue of this Policy shall be accounted in diminution of the sums insured, and the total amount payable by the Company shall not in any case exceed the sum of Dollars. In Witness Whereof the said Company have here- unto set their Corporate Seal at the City of Toronto Seal. S- this dayof 189.. (Countersigned by) Provident. (Signed) Examined by Managing Director. Conditions referred to in the loithin Policy : 1. This Policy shall not take effect unless the premium Ije paid prior to any accident on account of which claim is made. 2. Due notice must be given by the insured to the Company at its Head Office, of any change in his residence or occupation. 3. If the insured meet with an accident while engaged temporarily or IJerraanently in any occupation of a more hazardous classification than that under which he is insured (or approximating thereto, if not mentioned in the Company's Schedule of Rates), the principal sum or weekly indemnity pay- able, shall be such proportion of amount herein mentioned, as the premium paid by him would insure him for under such higher classification. 4. In the event of injury, within the meaning of this Policy, occurring to the insured, notice thereof shall be given to the Company at its Hea^l Office with full particulars both of the accident and the injury within ten days after the occurrence thereof ; and in the event of an accident to the uisured tenninating fatally, notice as aforesaid shall be given to the Company not later than twenty-one days after the occurrence of such accident ; and it shall not be sufficient compliance with this condition if such notice as aforesaid shall Ije given only to an agent of the Company. 5. The accidents insured against by this Policy are only such &i arise directly and immediately from external visible cause, capable of direct proof, and shall not include any that may arise wholly or partially from fits, hernia, orchitis, vertigo, sleep-walking, inhalation of gas, sunstroke, freezing, disease or illness of any kind, or physical infirmity, or medical or surgical treatment, O as IS \i 90 25 444 Insurance Corporations Act. or injury by attempted Huicide (sane or insane at the time), fighting, wrestling, unnecessary lifting, over exertion, or any breach of the law on the part of the insured, or by war or invasion, or occasioned by the irisured being in a state of intoxication, or committing a breach of railway Ijy-laws, or otherwise wilfully or wantonly exposing himself to any unnecessary danger. (5. No comi)ensation shall lie payable hereunder unless any medical or other agent of the Company shall be allowed to examine the jjerson of the insured egree member Order, located tied to all the cient Order of ntario, and to )usand Dollars )rder, shall at said member of .saiil of. And upon s appointed by Two Thousand nd to no other could or mi>?ht ayable to him- Appendix C. It in also understtxxl and agreed upon, that the truth of the statements and conditions set forth in the medical examination and application fur tiiis Certificate, and which formi a part henof, are the conditions upon wiiich Brother is entitled to all the rights, l)enefits and privileges of the Order. And that any untruthfulness or violation of said statements and conditi."), 01!, (W, 01), 70 (and its sub- sections 1, 2, 3, and 4), 71 (and all its sub-sections), 72 (and all its sub-sections), 73, 74, 75, 70, 77, 82, 84, 85 (and all its sub-sections from 1 to 5 inclusive), 8(5, 87 (and its sub-sections 1, 2 and 3), 88, 81), 1)0 and 1)2 (and all its sub-sections) of the Constitution for the government ul Sul)or(linate Lodges now in force, and any lawful amendments or additions that may hereafter be made thereto. Conditions No. 5.— Article I, Sections 1, 2, 4, 5, (5, 7, 8, 1), 10, 11, 12, 13, 15, 10, 17, 18, 19, 20, 21, 22, 23, 24, 25, 2(5, 27, 21) (and all its sub-sections from 1 to 14 inclusive), 30 (and all its sub-sections from 1 to 8 inclusive), 31 (and its sub-sections), 32, 3,3, 34, 35, 30, 37, 38, 39, 40, 41, 42, 43, 44, 45, 4(5, 47, 48, 49. Articles II, III, IV, V, VI, VII, VIII, IX, X and XI of the General Laws now in force, and any lawful amendments or additions that may horeafter be made thereto. Conditions No. 6.— Sections Nos. 1, 2, 3, 4, 5, (5, 7, 8, 9, 10 and 11 of the Standing Regulations now in force, and any lawful amendments or additions that may hereafter be made thereto. Apiteiidi.r C. 451 l)y till- jiHsvirod in ion. (Hub-sfctionH 13, to suHpt'UKiim), 35 itH 8nb-«octif2 % s ti :^ CO E ' ^^ n s i§s g 3 ,«J GENERAL INDEX. [The references are to pages.] A. ABANDONMENT— 249 ABATEMENT- of cl-Im, where assessments do not realize " maximum." 61 ot beneht, where error in stating age, 250 ACCIDENT— defined, 39, 40, 269 kinds of, 208 (1) hapijening wituout human agency, 268 ' (2) napijenmg with human agency, 268 (h) through the unintentional act of party injured, 208 b) through the unintentional act of another person, 268 (c) through the intentional act of another person causinu unintentional injury, 268 ^ (d) intentional injury by another, 269 examples l;, ^ j , by jumping from platform, 270 by exercising with Indian clubs, 270 by lifting burdens, 270 may be caused by series of events, 270 by disease, 270 or cause disease, 270 sunstroke is rot, 270 ^"^^.gTItO ''^"^^^ ^^ voluntary exposure to unnecessary danger, e.f/., driving on railway tracks at night, 270 standing on steps of car in motion. 271 presumption that injury is caused by, 272 insurance against, included under "Insurance "39 insurance, requiring license, 83 ' not requiring license, 84, 90 by friendly society, Iv, 90 included under life insurance, 256 what "bodily injury," included by, 267 (a) one happening without direct intent of nerson injured, 267 (b) or happening as the indirect result of his inten- tional act, not amounting to exiwsure, 267 stipulation to contrary must be just and reasonable, 267 462 Index. 8 li 'f V-: 'J M'A ACC0UNTANT-8fe Auditor ACCOUNTS- Hoparate, to be kejit by insumnce branch of society, 13 audit of, sec Audit Heparat*!, of tontine and other iwlicies, 49 right of policy holders to, 41) ACTIONS- against corporationH, see ProceBS ACTUARIAL- liabilitit'H, defined and explained, 01, 163, 106 solvency, defined, (53 not warranted by registry, 78, 187 a ground of distinction of mutual from friendly societies, 122 statement may be sent in by friendly society, 66, 187 ACTUARIES- In!*titutc of, Tables, 6(5, 231, 253 ACTUARTLY— solvent, what companies must be, 62, (>5 ' ADJUSTMENT— of errors in life insurance before maturity of contract, 255 ADMINISTRATOR— included under " Bcaieficiary," 33 benefit payable to, 51 ADVERTISEMENT- effect of, by corporation, 11 of assessment company uuist bear words " assessment system," 62 AFFIDAVIT— evidence before Registry Officer may be by, at his discretion, 70, 111, 1(55 before whom taken, 165, 324 where filed, 232 AGE— ^ a material fact, 243 effect of bona fide error in stating, 243, 250 abatement of benefit on account of, 2^0 no increase on account of, 252 material in fidelity insurance, 251 erroneous statement of, in claim, 252 fractional part t>f year in error of, 255 wliere, taken for puri)oses of contract as greater than true age, 255 children under, insurance of, 203, 204, 2(55, 200 of ten years, maximum insurance of, 263 [_of twenty-one, but over fifteen years, insurance of, 2(50 AGENCY— tffc Chief AGENT— defined, 28 general, of foreign corporation, authority of, 173 penalty on, for unauthorized insurance, 201 of illegal corporation, i)ersonal liability of, to assured, 203 penalty on, f(jr false statements or obstructing audits, 220 knowledge of, that statements of assured in application are false, 236, 237 . . . . sometimes described in apjilication as agent of ajiplicant, etc., 237 making unauthorized misstatements in application, 238 must not rebate or discriminate, 280 no person to act as, (except chief agent or manager), unless registered, 281 test of i>erson being, 281 no a])phcation to be received from unregistered, 281 Index. 4G3 dly societies, em,"G2 ion, 70, 111, iimt of, 2^0 52 i.ge, 255 mce of, 2G(> false, 236, !., 237 • egitetered, A(JKNTS- i-eKister of, 2S, 2S2 durution of registry of, 2ft liow reigntry ol)tained, 2!) revocation of registry, 2!>, 28o certificate of registry of, 281, 283 AMBIGUOUS- ixjlicy construed in favor of assured, 231 AMENDMENT— of constitution to be filed with Registrar. Ku, 17(5 effect of, on certificate, 1(17 ,, , . t" be mentioned in annual statt-nient, 170 of declaration of benevolent society, 88, 140 AMOUNT OF BENEFIT payable, 305, 300 ANCIENT ORDER OF FORESTERS' Beneficiary Fund 15 ANNUAL STATEMENT— (See Statement) ANNUITIES— on lives, included under " Insurance," 45 license to grant, 81 APPEAL- from Insi)ectf)r of Insurance, 75 Registrar of Friendly Societies, 78, 105, 220, 333 convictions under this Act, 203 security for costs of, 203 notice of, to Registrar, 335 entry of decision on, in registers, 335 from Master in Ordinary, 340 APPLICATION— for Assessment In-urance tf) l)e stamped Child Insurance, what it must bear. 2()5 Insurance, misstatements in, must be material, 232 need not be false or frauflulent, 2.33 burden of pHMjf as to, 234 distinction between warranty and mis- representation in, 234 sometimes descriVjes agent filling in as agent of applicant, 237 spurious, sent in by agent, 2.30 descrijition in, limited to date of. 240 is medical examination part of ''. 244 not to^ be recei\ed from unregistered agent, 281, registry, due, defined, 09, 106 material on, 77, 135, 100, 107 duplicate coi)ies of "rules," 77 financial statement, 77 power of attorney, 78 of Dominion Licen.see, 100 time for, 100, 100 to be made according to form, 165 extension of time for, 100 to be Jiccompanied with financial statement in certain cases, 10!) by corporation with head oflfice out of Ontario, 172 4P0PI F YV *"*^ sections of same society, 100 as an accident, 270 APPRAISEMENT— of loss, 248 entry for purposes of, 249 insurer and assur^jd may make joint, 250 Assessment System," (5: 464 Index. S I ASSESSMENT- t'liduwiiU'iit iiiclu(U'(l in inwiiranc(>, 45 coiniiiiny, foreiprn, 7!) l)usin(;HM, Hocietit'M that may tran.sact, 90 insurance (U'fiiied, 58 In't'uiium for, consiHtH in uncertain «uma, 58 lenofit under, t fn>m deponit, 62 not required to keep a reserve, t»2 system to Iw stammd at head of documents, 02 ASSESS.NlENTS- misan|)licati()n of, ground for winding up, 223 member only liable ft)r those, of which he has notice, 287 may withdraw after payment of, 28!) validity of, a question for jury, 298 illegal, effect of, 298 application of, 299 i forfeiture for non-jjayment of, 290 notice of, see Notice liability of suspended member in respect of, 297 who competent to make, 288 frauds in connection with, 288 may be levied instead of impairing reserve, 67 levied for profit of trustees or officers are breaches of trust, 138 when sei)arate, to be made to meet policy, 300 remedy for refusal to make, 306 ASSIGNS- included under " Beneficiary," 33, 256 benefit payable to, 51 do not need to have insurable interest, 250, 258, 261 ASSOCIATION-«ee Society ASSURANCE— distinguished from Insurance, 57 ASSURED— definition of, 57 rights of, under contract of illegal insurance, 72 after loss, 248, ATTENDANCE- medical, may be material fact, 242 ATTORNEY— foreign corporation must be represented by power of, ()9>, 158, 172, 173 AUDIT— duty on insurance corporation to have, 20, 208 siiecial, by registry officer. 18, 20, 207, 210, 216 not binding on members, 210 default (jf, suspension of society for, 211 requisition for, by 25 members, 216 security for costs on, 219 AUDITOR- apyointment of, by registry officer to audit books of insurance cor- poration, 18, 20, 207, 216 expenses of, 18, 21, 207, 218 • V what his right extends to, 21, 210 how accredited, ?A obstruction of, fjl, 211, 218, 220, 221 report of, 21, 221 decision of registrar on, 221 of corporation not to be an officer, 208 duties of, 20',) .1* urns, 58 H, 5H iinada, 58, 82 e, Ix, (i2 hia Act, G2 in deixwit, G2 irve, t)2 t, 138 ?, 158, 172, ranee cor- Index. B. BALANCING— day of corporatitjn, lO'J BANK OF MONTRKAL— Vension Fund Society, 148 BENEFICIARY- connnittee of Ancient Order of Foresters, IG department of fraternal order ; si'e Brandt fund of Ancient Order of Foresters, 15 definition of, 33 benp:fit- definition of, 32 payment of, not voluntary, 33 insurance founded on contract, 37 see Society or Friendly Society, forfeiture, etc. BENEVOLENT SOCIKTY- included under " Society," 11 meaning of, 11 proviso respecting, 11 legislation, history of, 111 »er Friendly Society see R. S. O. 1887, c. 172 BOARD OF TRADE OF TORONTO— entitled to registry, 155 organization of, 155 BODILY INJURY-sce Accident BOILER INSURANCE, 44 BONDS— insurance on, 44 . . BONUS- ' included under Benefit, 33 BOOKS— separate, to be kept by insurance branch of society, 15 what, to be kept, 18, 207 appointment by Registry Officer of accountant to audit, 18, 207 the property ef the society, not |)iiHit of HiirpliiH fiiiulH with, 212, 21.") LUKDEX OK I'UOOK- i\■^ to amount of Ixniflit, on society, 35, 3().j as to n>f,'iHtrv, 71, 2(11 RH to tnitii or falsity of Htiit"ni«>ntH in application for insiiranco, 231 of oxpoMuro to unnccosMary diUK'T, 272 BURGLARY - insuranco against Iohn from, 44 BUSINESS- not incliulod among objocts of friendly society, IIT), 110 BY-LAWS- arc Rules, fiH of railroad n-liof associations protecting Co. from claims, 147 how far now, affect existing contracts, 108 c. s 3 CANADA GAZETTE- notice in by Superintendent, 108 effect of, 108 CANADA— societies incorporated imder special Acts of, 141 CANADIAN— Iblvitiial Life Association, 102 Order of Hume Circles, 125 Pacific Railway Employees' Relief Association, 147 CANCELLATION- of license, 20, 98, 99, 105, 184 pnxseedings after, 108 of registry, 21, 20, 98, 105, 184, 193, 310 notice of, 193 ipso facto by certain events, 325 CARD- effect of, with corporate name, 11 CASHMUTUAL- fire company, insurance by, is not "assessment insurance," 58, 59 CASUALTY— insurance against, included under Insurance, 39 re-insurance value in, 65 under life insurance, 356 CENTRAL— governing body treated as society, 22 CERTIFICATE- of registry, 75, 77, 182 under cap, 124 : 101 good for 1 year, 101 what it specifies, 182 ^^ what it is evidence of, 199 * beginning and end of term in, 197 interim, 185 as agent, 281 of membership, see Membership of revivor of registry, 310 Index. 407 raiic»\ 231 11< ice," 58, 59 CKKTIKIKDf'Ol'lKS- of fiitritH ill K««>fiHt»T.s, 71, 77, HW, ;»32 of ciinstitiition, hy-hiWH, otc, 77 CIIANiJK - of nimi«-of tMUPonitioii, I'.tf ItliyHicul and iiiciittU ennilicion, iiiHuranco it^'aiuHt, 3U CHAKITIKS - K(i(i»!) to !»• «nttTo|M)iiitnicnt and nowors of, 177, 173 clmn^'f of, j)roc('»'(liiiK« to he tiikt'n after, 170 to b»' t'nt»'ri'(l on KfKisttr, IHO n('*>(l not rfgiHtoraH agont, 2^1 C'lIILDHEN— fndownn-nt insurai.-o of, xxxix, 47 under ten, niaxiniuui insurance of, 203 except (a) exi^tine inHurnnoo, 204 (')) in ease tin- heiieficiary lia.s a ))ecuniary interest, 2(>4 where niaxinmm exceeded, i>reiniiun lo bo n-coverable, 2()4 what must he printed on p;>licie.s of insurance of, 205 and wiveH, insurance for heiiefii, of, 3()1 CHOMAGE INSURANCE- , development and peculiaritieH of, 42 CIRCULAR- in name of insurance corj)oration, effect of, 11 of assBHsment company must Ix-ar words "assessment system," 02 of child insurance must bear section 35 printed on it, 205 CLAIM- payment of undisputed, within 00 days, 20, 217, 305, 311 unless a shorter j)eriod contracted for, 317 forfeiture of registry otherwise, 107 renewal of registry m such cases, 1LI8 amount of, 305, 300 how computed, 306 on particidar fund, 307 right of person having, to inspect books, 308, 319 affidavit by, 320 •CLERK OF PROCESS— filings with, 175 COLLECTION- of premiums, effect of, 11, 67 COLLECTIVE- policies against accident, 52 COLLECTOR- defined, 67 penalty on for unauthorized insurance, 201 COMMENCEMENT— date of, of Act, 9 COMMERCIAL— gain, society for purposes of, not entitled to register, 94 Travellers Mutual Benefit Society, 102 468 Index. :,|i I ( , t q2 5 •! ^■i i. CD E^' 3 B ^ 1 3 COMMISSIONS- insurance of, 42 COMMITTEE- beneficiary, of Ancient Order of Foresters, 16 of G. T. R. of Canada Superannuation and Provident Fund, 17 sec Branch COxMPANIES ACT 1862 (Imp.), 94 COMPANY— definition of, in Ontario Insurance Act, 14, 79 sec C >rp(5ration, Joint Stock, License COMPLAINANT— 5ec Prosecutor COMPROMISE— and adjustment, 255, 256 COMPUTATION— of amount of benefit, 305, 306 of time of payment, 311, 312 CONDITION— insurance against change of, 39, 256 CONDITIONS— sec Policy, Statutory Conditions CONSIDERATION— true, must apiiear in contract, 280 CONSTITUTION OF SOCIETY— provisions of, are "rules," 68 certified copies of, 77 when important to be considered, 84 ""c "amendment," "rules," etc. CONTINGENT— event, contract for benefit payable on, is " Insurance," 54 CONTRACT— definition of, 30 oral, 30 CONTRACTS- of Insurance, offering to undertake, 11, 14 definition of, 80 by telephone, 30 under seal, estoppel by, 31 not under seal, company cannot set up lack of seal, 31 of insurance not always contracts of indemnity, 35 of iissessment insurance, must bear words " assessment system," 62 lawful, before passing of Act not afi'ected, 72, 93 of friendly society, legislative recognition of, 117 are benefits of friendly society equivalent to ? 123 how far affected by new by-laws, 168 material terms of, how to be set forth, 227, 231 . CONTROL— over subordinfite lodges, what constitutes, 22 CONVICTION— penalties on first and second, 201 CO-OPEIiATl 7E ASSOCIATION— included under society, 11 COPIES- by Queen's Printer, 1)6 see certified CORPORATE POWERS- conferred on benevolent societies, 113 revocation of, 118, 134, 222, 327 Index. 4G9 id, 17 ered, 84 etc. CORPORATION— meaning of, 56 what included under society, 11 effect of sign or circular with name of, 11 compared with " Company " under Ontario Insurance Act, 14 registered, meaning of, 24 unregistered, meaning of, 124 insurance by, 25, 70 Dominion licensee is a, 71 transacting insurance without authority, 71 registers, see " Registers " requiring license not entitled to register as friendly society, 78 wliat, requires license, 81 name of, not conclusive as to its objects, 88 having less than 50 members not entitled to register, 1)5 when a person is deemed a, 101 forfeiture of powers by non-user, 102 with insurance company amiexed, when entitled to i-egister, 145 having authority to create a fund for relief, entitletl to register, 154 not to be registered under misleading name, iSi) nor under unauthorized new mime, 190 change of name, l)y order-in-council, 11)1 notice to, how served, 314 COSTS- of proceedings by registry officer, or receiver, 351 security for, on appeal from conviction, 203 COURTS- how far they y'^M reverse decisions of society's tribunal, 303 COVENANT MUTUAL BENEFIT ASSOCIATIOX— of Illinois, 104 CREDITORS- protection from claims of, on insurance moneys, 91 first provision for, 115 have insurable interest, 258 CUSTOM— insurance against loss of, 41 tern," G2 D. DAMAGES— will action for, lie against Registry Officer, etc. , 110 DANGER— see Voluntary Exposure DATE— of commencement of Act, 14th April, 1892 : 9 Avithin which unregistered Cos. to cease business, 31st December, 1892 : 70 before which society had to be organized to effect insurance, 10th March, 1890 : 87, 118, 127 of opening registers, 1st -Fuly, 1892 : 97 expiry of insurance license (Out), SOtli .Tune in every year, 07 of applications, before 30th .lime, 1892 ; 100 before whicli society must have obtained Dominion Special Act, 1st Jan., 1892: 141 after which furtlier penalties on unauthorized insurance, 31st Dec. 1892 : 199 after which no rebating or discrimination, 14th April, 1892 : 280, 287 after which unregistered agent cannot act, 1st Jan., 18J>3 : 287 I ( I' ' I 470 Index. ,;;i DAUGHTER- insiinib.le interest of, 2G0 DEATH- insurance against included in Insurance, 39 PEBENTURES— power of friendly society to borrow on, 119 DECLARATION OF BENEVOLENT SOCIETY— changes in, 88, 89 origin of, 113 contents of, 114, 115 how filed, 114, 115 where insurance mentioned in, 128 operation according to, meaning of, 128, 186 cannot be amended to include insurance, 128 must include insurance, 130 when and how amendable, 140 DEFALCATIONS - legislation to check, in Benevolent Societies, 112, 113 DEFINITIONS AND INTERPRETATIONS, 1-70 DEPARTMENT OF SOCIETY, see Branch DEPOSIT— by Insurance Co., 103 none by Friendly Society, 104, 187 depreciation of securities on, 105 DEPRECIATION— of securities on deposit, 105 DEPUTY- registry officer includes, when, 11, 199 DIFFERENTIAL RATES- not to be given, 280 DIRECTOR— penalty on, for unauthorized insurance, 201 DISABILITY— insurance against, included in Insurance, 39 " Life Insurance, 23G meaning of, 40 total, 40 temporary and jiermanent, 41 friendly society insurance against, 90 DISCRIMINATION BETWEEN ASSURED- prohibited, 277 to what companies, 207 as to what amount, 278 what constitutes, 278, 279 rebating is, 279 effect on contract, 279 consequonces cif — (1) balance of premium not recoverable from assured, 279 (2) contract not enforceable by assured, 279 DISEASE- meaning of, 242 DIVISION OF SOCIETY-scc Branch DOCUMENT OF AUTHORITY-sce License DOMICILE— uf corporation, 68 Index. DOMINION— Bank Guarantee and Pension Fund, 148 Building and Loan Associatitjn, form of certificate, 50 see License, Jurisdiction, etc. DONATION COMPANIES, 85 how far benefits of society are equivalent to, 123 DUE APPLICATION— defined, GU, 100 471 E. ed, 27!) EDUCATIONAL ENDOW.MENT INSURANCE, 47 ELECTION OF OFFICERS— fraud in, a ground for winding up, 224 EMPLOYEE OF CORPORATION— penalty on, for unauthorized insurance, 201 EMPLOYERS' LIABILITY INSURANCE, 51, 52 collective policies of, 52 varieties of policies of, 52 against costs of actions, 52 against actions under statute, 52 at comm(m law, 52 i premiums for, and mode of payment, 53 and servants, insurable interest of, 259 EMPLOYMENT— insurance against loss of, 41 ENDOWMENT INSURANCE— included under Insurance, 45 ordinary, 45 limited payment, 45 reducible term, 46 whether a contract of insurance proper or of investment, 46 how far friendly societies may transact, 14, 46. 1)2, 127 infant, 47 by friendly society, 92 ENTRANCE FEE— when equivalent to premium, ENTRIES- on register, 180 see Register ENTRY— after loss, 246 insurer has immediate right to, but not to salvage, 246 refusal to allow, effect of, 247 after separation of damaged property, 249 ERROR— see misrepresentation, age, etc. ESTIMATE- of loss, 248 ESTOPPEL- of company by knowledge or error of agent, 2^ 472 Index. ini • : ■ l;l i EVASION— attempted, by Insurance Co. calling itself a benevolent societj', 88, 9G EVIDENCE- reqnired by Registry Officer, 00, 70 may be made on oath, or by affidavit, etc., 70, 111, 165, 221 of DomiTiion license, 100 of registry, official lists. 195, 190, 283, 284 copies by (Queen's Printer are, 190 seal or signature of Registry Officer, 596 certificate of registry officer is, of contents, 197 of incorporation of extra-provinciiil corporation, 199 of hai)pening of events that cancel registry, 331 of membership, 287, 288 of default of receiver, 348 of loss or happening of event, 312 what is sufficient, 312 form of unimportant, 312 delay in furnishing, 313 waiver of, 313, 314 EXAMINATION— of the proi)erty, insurer's right to, after loss, 240 EXCLUSIVELY— company not organized, for insurance, 15 contracts not made, with members, 90 EXECUTIVE OFFICERS- head office follows, 68 EXECUTORS- included under beneficiary, 33 benefit payable to, 51 EXPECTANCY OF LIFE— contract based on, 51 EXPOSURE— to unnecessary danger, 40 EXPULSION— illegal, 304 nnnedy for, 304 EXTENSION— of time for registry, 108 of registry, 180 F. FATHER— insurable interest of, 250, 265, 200 FALSE— numbering of certificates of membership, 225 FAMILY— materiality of statements as to, 243 FEE— membership or joining, is a premium, 30, 201 FEES- payable by Provincial licensee, 97 Dominion licensee, 100, 105 under this Act, tariff of, 351 FIANCEE- insurable interest of, 259 Index. 473 jociet}-, 88, 9G J21 riDELITY- a subjocc matter of insurance, 51 insurance, by bonds, 52 re-insurance value in, G5 age material in, 251 bondn, duration of, 32 riLINGS- with Clerk of Process, 175 FINANCIAL— loss, insurance against, 3!) basis of society not warranted by registry, 78, 187 statement of society, 130 FINE— sPf! jH-nalty FIRE INSURANCE, 44 i-e-insuranct alue in, 05 under R.S. C, c. 124 : 81 statutory conditions in, 227 FOREIGN— cori)oration must be represented by attoi'ney, 08, 172 cliief agency of, 0!) resident of Ontario may contract with and send premium to, 72 must li.ave 500 resident members, 95 under s. 3t», R. S. C. c. 124 : 104 status of, 150 may sue and be sued in corporate name, 150 can it contract out of its own territory ? 157 service on — sec process evidence of due incorporation, 199 Assessment Endowment Co. not entitled to register, 79 friendly societies see Fiiendly Society, Mutual Life Co. not entitled to license under c. 107 : 7S FORESTERS— sec Ancient Order sec- Independent Order FORFEITURE— sfc Lapses of benefits, 290 no, for non-payment of assessments, 2!)0 unless jiayable at fixed dates, 290 or notified to member, 290 not favored by Courts, 290 waiver of, 2!)4 when it requires consideration, 293 conditions of, to be just and reasonable, 303 court to decide on, 303 may reverse decision of society's tribunal, 303 FORM— printed in name of corporation, effect of, 11, 15 FORMS AUTHORIZED BY INSURANCE DEPARTMENT— (1) Application for registry as insurance licensee, 389 (2) Treasury receipt for ajjplication fee, 397 (3) Power of attorney, 398. (4) Treasury receipt for certificate fee, 401 (5) Certificate of registry as insurance company, 402 ((?) Treasury receipt preliminary to registry as Provincial licensee, 403 (7) Provincial license to insiu'ance companies, 401 (8) Annual document of authority luider Insurance Act, 405 (9) Ai)plication for registry as friendly society, 405 (10) Form of affidavit verifying financial statement, 410 (11) Change of corporate name, form of direction, 417 (12) form of notice in Uazcttc, etc., 417 (13) Certificate of registry, 418 (14) Receipt for agents' license fee, 419 *w ' '}■ *« ' :l ■i r I ■■'■ c J b fe «i ^"^i ''l ^ " c> ■> ;w ^^■ ^ kJ fe- '^^ i 3 tt) :: ^ ,1 474 Index. FORMS AUTHORIZED BY INSURANCE DEPARTMENT- (15) Ai>i)licati()U for registry as agent, 420 (10) Rcconiinendation for repintry, 421 (17) Agent's certificate of registry, 421 (18) Notice t(j state objections to regi.stry, 422 FORMS OF POLICIES AND CONDITIONS— reducible tenn endowment policy (People's Life), 425 life, with profits, (Canada Life), 127 20 payment lifi— semi-tontine policy (Nortli American Life), 431 limitt'd payment life, 20 year tontine (Manufacturers' Life), 434 accident policy (Travellers of Hartford), 437 (Accident Ins. Co. of N. A.), 439 (Manufacturers' Ace. Ins. Co.), 442 friendly .society contracts, certificate S. O, E. B. S.. 445 A. O. Foresters, 451 A. O. United ^V()rkmen, 448 Independent Order of Foresters, 451 Royal Arcanum, 452 Canadian Home Circles, 455 FRATERNITY— wc Society, Friendly Society FRAUD— registry obtained thi'ough, may be revoked, 193 special audit where, alleged, 210 FRIENDLY SOCIETY— meaning of, 11 meaning of, in Imperial Acts, 11 distinction between, and licensed company, 12, 95 benefits how far affected by insurance legislation, 13 with whom, may imdertake, 39 what contracts, may undertake, 39 liability of member of, (50 not affected as to life insurance by R. S. C. c. 124 : 83 no Government inspccti(m of, (!2, 187 not permitted to make a deposit, 02, 104, 187 ' reserve fund of, is matter of internal regulation, 6G will not be interfered with by court m its methods of insurance, 66 may require members to pay assessment before it impairs reserve, 67 Register, 76 not entitled to license imder Ontario Insurance Act, 78 company reijuiring license cannot register as, 79 incorporated before 10th March, 1890, under c. 172 may insure, 87, 88 incorporated after lOth March, 1890, under c. 172 cannot insure, 88 name of, not conclusive as to its objects, 88, 90, 123 change of declaration of, 89 limit t(> insurance by, 90-92 impediments to registry of, 92 legislation, history of. 111 legislative recognition of contracts of, 117, 123, 126 revocation of corporate powers of, 118 ))ower to borrow on debentures, 119 distinguished fi'om mutual company, 119 priiiia facie solvency only inquired into, 122 primary object is not insurance, 123 does Act to sejure to Wives and Children the benefit of Life Insur- ance apply to? 120 incorporated in.der Benevolent Society Acts, registry of, 128 acting ultra vires, 131, '■32 quo warranto against, 133 can members a|)ply for quo warranto, 134 tenn of office in, 136 powers of officers of, 137 must be under control of members, 138 Index. :nt- 1 Life), 431 Life), 431 15 451 oricmen, 448 ler of Foresters, 451 452 Circles, 455 FRIENDLY SOCIETY- control of, by proxies, 138 incorporated by special Act of Dominion is entitled to registry, Inrlep.mlent Order of Foresters entitled to register as, 141 jT'''!i^^U^''''!"8't' Lodge entitled to register as, 143 475 141 su ranee, 66 rs reserve, 67 ■ insure, 87, 88 t insure, 88 G. T. R, Superannuation Fundentrtled^rregister as. 145 foreign, registration of, 158 ^ ' requisites : — (a) must be solvent, 158, 159 (b) must have autliorized attorney in Ontario, 158, 151) 172 (c) must have been in />ou«/,Vc oimration in Ontario' before lltli March, 1,S!)0: 158, 160 (d) must liave 500 Ontario members, 15S, 160 "S ^"' ''''*''"" ""''''""^' ^^ l^Mievolent Society Act, 158, (f) must pay fees, 102 when ineligible, 161 f , , . _ . organization of, 162 reserve fund of, m Ontario, 171) registry does not authorize, to un"?« <'i«l "gilts not affected by change in, 191 default or, is default of officers, 211 mus|deliver copy of its rules to anyone tendering twenty-five cents. does 14 Geo. III. c. 48, apply to? 262 minor may be mem'oer of, 2()6 l ' tribunals of, attitude of courts to, 303 rUND- beneficiary, of xVncient Order of Foresters, 15 ■r.TT.. endowment, on prohibition of business to be distributed, 93 FUNDS— separate, to be kept by insurance branch of society 15 insurance, are trust funds, 96 reserve, in Ontario, 179 FUNERAL BrNEFITS-90 G. if Life Insur- , 128 GOOD FAITH- required in all contracts of insurance, 241 GOOD STANDING- meaning of, 16 GOVERNING BODY— central, treated as the society, 22 within Province, when so treated. 23 GRACE- days of, 30 allowed to pay assessments, 290 effect of death during, 293 payment after, 295 60, allowed society to p-^y claims, 211 now affected by repudiation of contract, 312 «w ■ ' :■ *« .1 I ( I B^ ^ ^■^5 1 * ' C:' ^ Q? '' : bj ^ i ^! K ■^^ ^ s ^ :: i S ■:; ai 'll i : i! \'\ ill 47G Index. f, 14(5 manage '. 'd, 140 by-law p. ) ji Jo from claims, 147 GRANDDAUGHTER— insurable interest of, 200 ORANDSON— insurable interest of, 259 GRATUITIES- couii)anies engaged in distributing, 85 GREAT WESTERN RAILWAY SUPERANNUATION AND PROVI- DENT FUND. 147 GUARANTEE CAPITAL- provisions relating to, 121. GUARANTEE COMPANY— as security for recf " .er, 345 GUARANTEE INSURANCE- re-insurance value in, 05 GUARANTEE AND PENSION FUND— of Dominion Bank, 148 H. HAIL STORM INSURANCE, 44 HEAD OFFICE— defined, OS to be entered on License Register, 73 elsewhere tlian in Ontario, application by corporation with, 172 see Governing Body HEALTH- as a subject-matter of insurance, 51 insurance of, included under life insurance, 250 office, 3!) good, meaning of, 241 sound, meaning of, 242 ^ Hm TABLE, 251, 253 ' \ HOME BENEFIT— Associatioi of Massachusetts, 104 HOME CIRCLES- Canadian Order of, 125 HURRICANE INSURANCE, 44 r neglect, 64 "UND, 17, 145 \ND PRO VI ■ ith, 172 Index. HURT- meaning of, 242 HUSBAND- inmirahlf? intorost of, 2fiO and, children, insurance for benefit of, 3G3 477 I. ILLEGAL PLTRPOSE- TT T ^^^f °'"P"'''**'on existing for, registry of, may be vovokeu i93 severe, meaning of, 242 serious, meaning of, 242 nonpayment of dues during, 298 IMPRISONMENT-sec penalty. INCENDIARISM- risk of, a moral risk, 240 INCOME- insurance against the loss of, 41 INCORPORATION- what is sufficient evidence of, 195, 199 INDEMNITY— insurance not always a contract of, xlv, 36 or re-instatement, 44 INDEPENDENT ORDER OF FORESTERS— words required to be printed on their iwlieies 63. 14a penalty for neglect, 64, 143 ' limit to insurance by, 92 incorporati(m of, 141 objects of, 141 head office of, 142 powers of branches of, 142 disposition of surplus fund, 142 certified copies of constitution, etc., 143 INDIAN CLUBS- ^^^ »'«8rister as friendly society, 144 accident from exercising with, 270 INDIVIDUALS- undertaking of insurance by, 200 INDUSTRIAL ASSOCIATION- included under Society, 11 INDUSTRIAL LIFE INSURANCE, xl INFANT ENDOWMENT INSURANCE, xl. 47 INFIRMITY— insurance against, included under Insurance, 39 INFORMATIONS- - ""der life insurance, 256 to be laid within 1 year, 204 INJURIES- intentional, 40 INSANITY— insurance against, 39, 41 meaning of, 41 , 478 Index. «• g r I t 5; i INSOLVKXCY— int'iiMiii>^ of, iw riMpcotn frii'tully society, 00 Hpcciiil audit, in cme of, 'JKi when allt'^^fil, what iiKjiiircd into, 217 by non-payiuL'iit of claiiiiH for (U> days, 2L'.5 Mii.speiiHion of registry for, 315 INSPECTOR- lueans IiiHiMictor of Insurance, I) of Insurance, duties of, 10 to keep insurance license reffister, 73 duty on, of determining what companies entitled to re^'ister, 7">, 1<>'.» appeiil from, to hivisional Court, 75 certificate issued iiv, 7''> duty of, as tocancellatiim of license, Di) will mandamus lie a^'ainst? 10!) will action for dama^'es lie a^^'ainst? 110 powers of, under this Act, iire additional, 110 may examine witnesses on oath, 111 remuneration of, 111 origin of office, 122 INSURABLE INTEREST, 51 necessary to life insurance, xxxvii, 250 effect of, 14 (ieo. III., v.. 48: 250 attempted evasitm. 258 assignee of policy does not need, 258, 201 only neec'ssai'y in original parties, 258 of trusti-es, 258 oi creditors, 258 unless debt illegal, 258 employer and servant, 259 fiancee, 251) father, 259 sister, 259 grandson, granddaughter, son-in-law, 259 mere relationship is not, 2.50 is evidence of, 200 of husband and wife, 200 brother, 200 nephew, imcle, adult son, stepson, mother and daughter, 200 > person by whom premiums paid, 201 in case of children under ten, 203, 204 mider twenty one, xlii, xlvii, 205 INSURANCE ACT, The Ontario,— sp*- R. S. O., 1887, c. 107 INSURANCE ACT of Canada— see R. S. C, c. 124 INSURANCE AGENTS-5ee agents. INSURANCE CORPORATION— meaning of, 50 Corporations Act, 1892— see 55 Vic. c. 39, and various titles. INSURANCE- effect of undertaking, 11 ^ what constitutes " ofjfering to undertake," 11 fund, definition of, 57 see also Branch 1 definitions of, 35 includes " primary " and " re-insurance," 35 not always a contract of indemnity, 30 terms, how interpreted, 55 distinguished from assurance, 57 on the assessment system defined, 58 Inile registry for, 315 nies entitled to al, 110 i, 250 158 25S, 2«}1 I, 258 fi-law, 259 in, mother and 1, 261 2(34 xlii, xlvii, 265 'JL\ INSURANrK-r,,,,/,',,,,,,/. unautliorizi'd, avoidH ooiitriict, 72 |»n'inium ciiiiiiot l)t> recovt-rt'd, 72 unless (Mint met cxfeutorv, 72 T . ,. . l"'''>'iiiiiii iK.ti-also v()i(l,"72 LiccnHf 1{« ^,'iMttr, 7',\ Act of r'lui.ida, HK' i{. H. r. (• l'»i At'X, Ontario, ,,,v If. S. (). iH.sV, c, ]r>7 IS a contract, not iMMicvolcncc, 86 for l...n<.(it of \viv<.s and children, .ire Wives meaning of, under section H8: 277 INHUHKU - definition of, 57 INTEMPKKATE- nieaniii).; of, 245 INTENpKI) VTKK- insurai)le interest of, 250 bent^Kt paid to representatives instead of "6" INTENTIONAL IXJUH IKS, 40 INTEHEHT— ,we Insurable Interest INTERIM KEOEirr, ;m receiver, treasurer as, 73, 100 certificate of registry, 10!), 185 intj:rnati()nal- Fraternal Alliance, 83, 202 . INTERPKET ATK )N- and definitions, 1-70 INTOXICATING LIQUORS- uso of, materiality of, 244, 304 INVALIDATED- INVESTMENT-'^"'' '^' ''"'"'"^ "^ *^''" ^°* ""*' "'^ contracts of, involving life contingencies, 45 50 of surplus insurance funds, 212 > . -" (a) first mortgage on fee simple h) registerfid debentures, under 54 Vic. c 1<» (c) municipal debentures (d) securities of Dominion or Province (e) on deposit at bank or building society, etc 215 ^lo 479 J. arious titles. JOINING FEE, 30 JOINT APPRAISEMENT- effect of, 250 JOINT STOCK CO.— requires license, 81, 94 definition of, 94 JURISDICTION— of Dominion, xxiii, 80 of Province, xxiii, 82 JUST AND REASONABLE, 273 variation in statutory conditions h prima facie not 27'i variation more stringent than provision "s not, 274 ' who determines whether variation is, 274 condition as to abstinence is, 304 480 Index, K. KNIUHTS- of the ]Nraccul)et'H, ct'itifioate of, 34 (.f Honor, " 34 KNOWLKIXJK- (if Htjciil or iiiHurcr that HtHtciiHsnt in aiiplication for insurance \» fttlHc, 230 L. II LANDTlTLr:S ACT- iiiHuranco uialer, 70, 71 LAPSES- inchided under Insurance, 53 exoei)tion, 53 meajiincrof, 53 in Bnildiiip Society, 53 in Joint Stock Company, 53 LEASE rOLTCIES, 42 LEGISLATIJKE- means Lepislature of Ontario, U LIABILITY— throupii the death of another, insurance against, 51 of member of friendly society, 60 determination of, by withdrawal, 289 of policy holder in mutual, GO LICENSE— under Insurance Act of Canada, effect on registry of, 26, 71, 76, 100, 183 contents of, 75 Ontario Insurance Act, effect on registry of, 97, 12G contents of, 74 cancellation t)r suspension of, 26, 97-99, 105, 327 company requiring, cannot register as society, 79 Kegister, 73 definition of, includes Dominion License, 76 jniblicans', insurance against loss from non-renewal, 44 LICENSED COMPANY— distinguished from Friendly Society, 12 definition of, 76, 277 required by law to be, meaning of, 81 IICENSEP]— of Province, registry of, 97 of Dominion, registry of, 100, 101, 183, 184 every, deemed a corporation, 101 need not file financial statement, 169 policies issued by, mu&t not contravene this Act, 308 LICENSEES— definition of, 101 . r insurance is lidrawal, 289 ri, 7G, 100, 183 |G Is Act, 308 Index, 481 LIFK - wliftt it iii<;lum discharge by, for benefit is valid, 2G(i MISAPPLICATION- of assessments, 223 MISDESCRIPTION - by aesured, see Misrepresentation agent, 237, 238 MISREPRESLNTATION- in application for insurance must he material 23-> burd, n of proof of, 234 """'^ ""* ^ ^"^'" orlnuiduleiit. 233 distinguished from warranty 234 MISSTATEMENT-.,ce Misrepresentation MISTAKE- MORTGAGEE POLICIES-42 MOTHER— insurance for benefit of, 364 MUTUAL- benefit insurance, 37 founded on contract, 37 insurance, meannig of term in l^S., oi) distinction of, from " assessment." GO fire companies, insurance by, not •' assessment," Tx^ 59 history of, 120 ,. ^ , i"f turns to be made by, 122 live stock companies, 58, 5!) history of, 121 companies, reserve required' to be kept by, CI subject to Government inspection and audit f2 principle of, 94, 120 ' position of policy holders in, 94 shareholders in, 04 now far mercantile concerns, DG distinguished from friendly societies, 119 , ,, stock company, 120 origin of, 119, 120 society, included under Society. 11 MUTUAL RELIEF- Society f)f Nova Scotia, incorporation of, 10'> Reserve Fund Life Association of New York, 104 483 N. NAME OF CORPORATION- not conclusive as to its objects, 88, 9G 123 must not be likely to di,ceivo public as to its identity ISO new or changed, no registry under, 189 '"«»"^y' ^-^ change of- ""less nainf authorized, 189 by Order in Council after nf)tice in Chitario Gazette, 193 . proceedings and rights not affected by, 191 ' right to use of— ^ > -^ decision of Registrar, 192 how far decision conclusive, 192 how far right exclusive, 192 484 Index. 9 # Vj NEGLECT— to register, 73 NEPHEW— insurable interest of, 2G0 NOMINEE— of insured, payment to, 51, 25G NON-COMMUNIOATlON-see Omission NON-PAYMENT— see Claim NOTE— payment of, at maturity a subject matter of insurance, 11 Hce Premium NOTICE— of suspension, when sent by Registrar, 27, 103 when unnecessary, 2!), 98, 105 in Camidd O'lizcttc, 108 how to be served on foreign society, 174 corporations, 314 official, in Ontario Gazette, 1!I5, 283 of loss, when to be given to insurer, 246 or happening of event, 312 waver of, 312, 313 to whom given, 313 delay in giving, 313 of separation, v;hen to be given to insurer, 24'J of withdrawal of member, 289 of assessment, 290 form and contents of. 291 statutory requirements of, must be fulfilled, 291 defects of, form in, 292 waiver of, 292 apijlication for re-instatement is not, 293 how served, 300 - by advertisement, 300 when time runs, 300 by mail, 300 by registered letter, 300, 301 whither addressed, 301 0. OATH— Registrar may axamine upon, 70, 165 •3it Inspector " " 111 OCCUPATION- is it a material fact ? 244 no right of, in insurer after loss, 246 ODLFELLOWS'- Fraternal Accident Association, IC, 84 Index. 485 OFFEXCES— against the Act, l)y an ajrent, 29 effect of conviction and appeal, 29 OFFERIXa TO UXDk'S^aKE C^XTKlc^in? ^^T'' "" by suspended cumi.any, 135 ^^^^' ^^' ^^' ^'^' ^^^ OFFICE R- defiiied, 08 owning tlie company, requires license, 68 of .society, term of office of, 13i;-7 man laniu.s to conip;-! nieetin.' to elect VV) peaalty oyH..,ul.orize I i„s.Il.anJ:: 1^^: 201 iuible for default of .society, 211, :m penalty on, refusing to shoV b^oks, 211 flection of, fraud in, 224 OFFICIAL NOTICES-^.. Notice OLD AGE- in.surahce against, 90 OMIS.SIOX- in application for insurance, when it avoids the contract ^y, OXrARIOGAZETTE-wXotice, Evidence etc evidence of Registry, 19(5 ' who]e copy of, .must be produced, 190 OXTARIO MUTUAL LIKE ASSURANCE COMPANY Po ONUS OF PROOF--.C. Burden of Proof ' " '''^^'''^^^tCl^'' ^'' ^^^^^^'-^ '' declaration, etc., 135 ORAL CONTRACTS- of in surance, 31 evidence to prove, 31 construction of, 31 merger of, 31 ORAXrTE-.src Gr«id Orange Ljlge ORGAXIZER- penalty on, offering to undertal OTHER IXSURAXCE - meauii OWNERSHII Ice without authority, 201 ling and effect of, 241 a material fact, 2W Pi^RENT- insurable interest of, 26) PECUNIARY INTEREST— benoticiary to have, 256 not necessary in parent, 205 486 Index. c I ( C ' "■ D % 3 PENALTY- for not nainp words "assessment system," 62 transacting insurance without authority, 71, 199 misrepresenting effect of registry, 89 remission of, 202 application of, 203 under Ontario Insurance Act, 205, 206 Insurance Act of Canada, 206 for refusal to shew books, 211, 220, 318, 320 obstructing audit, 220 making false statements of i:he society's finances, 220 untrue entries, 220 delivering false copy of rules, 226, 227 not printing certain sections on circulars of child insurance, 205 rebating and discrimination, 285 agent acting without registry, 285 receiving application from unlicensed agent, 285 on receiver for default, 340 PENSION FUND SOCIETY— of Bank of Montreal, 148 how established, 149 form of declaration of incorporation, 149 organization, 150 powers, 151 may be registered, when,'152 PERSON— registered and unregistei'ed, 24, 28 insurance by, 70, 71, 200 when deemed a corporation, 101, 105, 200 PHYSICAL CONDITION— insurance against change in, 39 risk, 240 PHYSICIAN— attendance of, may be « material t ■. r Ai PLATE-GLASS INSURANCE, 44 rfdnstatement in, 45 salvage in, 45 PLATFORM— accident through jumping from, 270 POLICY, 30, 277 conditions in, all to be set out on face or back, 227 otherwise of no effect, 227, 230 may be indicated by reference, by-laws, etc., if copy delivered, 231 ,_] as to fire insurance, 227 ',' '^ see statutory conditions ' "^ mist set out true contract and true consideration, 231 FO^JCY-HOLDER- right of, to r.n account, 49 <\ ere u or, not a testui que. trust 49 POH&ESinON— re rii'Jit of, iaages insurer after 1oj;s, 240, 247 gainst insurer for keeping, 247 lance, 265 Itc, if copy Index. 487 POWER OF ATTORNEY— foreign corpoiation represented by, 68, 172 contents of, 61), 172 execution of, 172, 173 to be verified, 172, 173 where filed, 175 duplicates of, to be filed, 175 to be filed when change of chief agent, 176 PRACTICE— insurance against loss of, 41 PREMIUM— collection of, effrct of, 11 what eonstitutf J a, 11, 14, 201 definition, 29 notes, 29 restricted sense of, to net anmial premirnn, etc., ,30, 252 may or may not he certain in amount, etc., 35, 38 contract in consideration of, 51 Note plan, insurance on, distinguished from assessment insurance, 15, 58 due foreign corporation, may be remitted to it, 93 but not collected in Ontarioi 93 calculation of, in certain i-iases, 251 insurable interest of persMU ptiying, 261 recovti..ble where excessi\c insurance of children, 264 rebating of, jirohibited, 277-286 PRINTED FORM- of insurance corporation, effect of, 11 PRINTED— included under " written," 32 controlled by written portions, 32 PRIVATE PERSON- insurance by, 70, 71 PROCEEDINGS- to obtain registr}^ see Application PROCESS— service of, on foreign corporations, 173 after change of agency, 177 on corporations generally, 178 substitutional, 178 see Clerk PROFITS— insurance against loss of, 41, 43 PROMOTER— penalty on, offering to undertake without authority, 201 PROOF- upon, meaning of, 69 see Evidence PROPERTY— insurance of, 44 meaning of, 246 examination of, after loss, 246 no right of control over, l.>y insurer, 247 PROPRIETARY COMPANY— requires license, 81, 94 m ft-]'. V M t- 488 Index. PROSECUTOR- wlio maybe under this Act, 203 sliare of penalty, 203 PROVIDENT SOCTETY- included under "Scxsiety," 11 PROVTNCE- means Province of Ontario, t) out of. .V'C Foreiprn juriwl lotion of, xxiii, 82 PROVINCIAL— rejiresentative of corporation, 22, 23 extra, aec Foreign PROVINCIAL PROVIDENT INSTITUTION, 102 PROXIES- attem]jtod control of society by means of, 13S, 224 PUBLICATTONS- of As.sossment Co. must bear words • "aAsessment .system," (52 1- 1' l*^ li r c ■^ c qS % ^ 5' ^ 0/ > 1 '>J k 3 Co ^^ Q. QUALIFICATIOX- for meinborshij) in "society," 91 QUEEN'S PRINTER— copie.s, etc., [trinted bj', 190 QUESTION— material mis.statement in answer to, 235 none asked, omission to give infor.nation does not affoct contiact, 236 QUO WARUANTO- against society acting ultra vires, 133 R. RAILROAD— relief associations, 145-147 accideii ; s, 271 EEBATINO- priihibited, 27?^ to whom, 277 to what extent of insurance, 278 sec Discrimination RECEIPT- endorsed on policy, prima facie evidence, 32 of p jlicy, sliould be taken fron» assured, 222 ct contiact, 236 Index. RECEIVf:R- treasurer of society becomes interim, 73, 135, 33(> appointment and duty of, Ivii, 335 wlu'i-e more tlian one custodian of funds, 331) to make deposits in bank, 338, 34(i and get receipt, 339 interest on dcjKHits by, 331) application to be confirme.l, 33!t, 343 form of, 33!) hearing of, 3-13 jiiiblic noticf^ of, 243 how to be entitled, 340 to file receipt and affidavit, 340 form aTid contents of affidavit, 341 who may take affidavit, 342 securities by, 342, 343, 345 connuittal of, 34!) trusts CO Tipany may be ai)i)ointed as, .342 books of, to be accessible to Registrar, 340 accounts to be passed by, 347 Registrar may take i)roceedings relative to, 347 on default of interim, another may b;_' appointed. 34S duties of new receiver, 'M'A not complying with orders, 348 REGISTER- Insurance Agents', 282 when to ba o])ened, 282 entries in, 282 RETGISERED— meaning of, 24 REGISTERS- three, under tlie Act, 6!) ' Corporation, 73 (1) Under Ontario Insnrancs Act, 73 or Insurance Act of Canada, 73 known as Tiic Insurancf License Register, 73 kept by Insj)ector of Insurance, 73 wliat entries on, 73, 180 evidence of contents of, 74 entry of, I'rovincial licenses, 74. 9( 0 (d) proprietary or J. S. Cos., 94 of benevolent societies, 128 interim, 169, 185 extension of time for, 1G8, 109 renewal of , 183, 185 does i\ot authorize corporaticm to undertake outside of Ontario, 188 penalty on misrepresenting the effect of, 189 obtained by fraud, etc., may be revoked, 193 duty of determining right to, is on Insj)ector of Insurance, 109, 233 profif of, by official lists in Ontario Gazette, 195, 190 as agent, material on which granted, 282 recommend.ation required, 282 certificate of, 282 contents of, 283 fees for, 283 otticial list of those who have obtained, 283 where published, 283, 324 official notice of revocation of, 283 suspended where agent convicted of offence, 285 no revivor for three years, 29, 108, 285 notice of suspension of, 285 reciprocity with other legislatures as to, 286 REGISTRY OFFICER— meaning of, 10 when, includes deputy or assistant, 199 RE-INSTATEMENT— (Pw/)erfrs/it». as member, 301 application for, is not a waiver of notice of assessment, 293 by-laws generally provide for, 301 ccmstruction of such by-laws, 301 conditions of, 302 RE-INSURANCE- included under Insurance, 35 definition and exj)lanation of, 38 value, the basis of reserve, 05 how calculated, 65 none against members of prohibited society, 93 REJECTION- of applicant by another office, is material, 243 evidence of, 244 Index. 491 1 certain oon- RELATIONSHIP- of assured, not material, 244 REMISSION OF PKNALTIES-202 REMUNERATION- officers entitled to what ? 1 ,J RENEWAL— of registry, 74, 78, 183 of Dominion licensee, 183, 184 RENT- insurance against the loss of, *'*. by tenants, 43 REPEAL CLAUSES, 204, 208, 277, 355 siunmary of, 357 REPORT- of Inspector, on comi)any, (insolvent). '.)'.) registrar no warranty of solvency, l>i7 superintendent on company, (insolvent). 107 REPRESENTATIVE- in Prov-' je of corporation, 22, 23 REPRESENTATIVES— inau ranee may be payable to, 51, 256 REPUDIATION— of contracts, special aud it when, 216 REQUISITION- for audit, 217 security for coats on, 219 RESERVE— mutual companies required to maintain, 61 amount of reserve required, 61 what reserve may consist of, 61 how calculated, 65 amount of reserve of friendly society a matter of internal regulation, 6t> officers of society may use, to [)ay losses, 67 or may make assessment, 67 to be deemed a trust for members in jurisdiction, 179 REVENUE— insurance against loss of, 41 REVIVOR— of registry of agent, 29 license, 108 registry of corporation, 108, 316 REVOCATION— of license, 25, 98, 99, 105, 135, 327 registry, 21, 25, 98, 105, 135, 193 corporate powers, 118, 134. 222 cancels registry, 327 RISK— moral and physical, 240 RULES- of insurance society, copy of, may be demanded on tender of twenty five cents, 18, 226 effect of falsified, 18, 226 definition of, 68 certified copies of, 77 new, how far existing contracts affected by, 168 changes in, filing power of attorney after, 176 492 Index. S. r I £;^ i I m •I >i \U 3 HAFKTY— 11 Huhjcot of iiiHurnncp, HI « ALAR IKS of otticerH of H()ci duty on asnun-d of, 2W ^'SANK or INSANE," 272 HANITATION- iiiHuranco aj^ainst loss from, 44 SEAL-sfc " Contracts undf-r Seal." of registry officer, how i)ruved, VM\ SECRETARY of SOOT ETY - inolud.id under "Officiir," 08 SECURITY for COSTS- on appeal from conviction under this Act, 203 from decision of Registrar, 3'33 on requisition for audit, 21U SEMI-TONTINE- includod imder " Insurance," 45 nature of, 48 lapse of, policies, 48 separate accounts of, 49 SEPARATE FUNDS, etc.— to be kept V)y insurance branch, 1"), 17 what are deemed, 17 uivestnient of, 17, IH accounts of tcmti'" lul other policies, 49 SEPTENNIAL BENEVOLENT SOCIETY, 134, 223 SERVANT— insurable interest of, 259 SERVICE- of process on foreign corporations, 173 after change of chief agency, 17' on corporations generally. 178, 314 substitutional, by publication, 178 SHARES - insurance of, 44 SHORT- Title of Act, 9 Index. 493 SICKNEKS- iiiHun^MCH ftffiviiiHt, iiiclucU'd in " InHurance," 3'J iiifliid.d 111 "Lifj. Insurance," 25() ii«'tiniti(m of, ;d, VM\ SINKTNC Firxh- [lolicifii providing, 44 SISTER - insurable intorest of, 250 SON- insurable interest of adult, 260 SON-IN-LAW- insurable interest of, 200 STEPSON- insurable interest of, 2(J0 SOOIETY- nicaiiiiip of, 11 l)en(|fits, how far affected l)y insurance legislation, 13 a-'e " I nendly Society." SOLICITING— insurance is "offering to inidertake," 11 wiien conii)any implicated by, Ifi SOLVABILIT\^~ of debtor, a subject matter of insurance, 41 SOLVENCY— actuarial and |U'iW(./Vrri>, 122 not warranted by registry, 187 SOLVENT- license withdrawn from company not actuarilv G2 dehnition of, G6, 163 STATEMENT— annual, of insurance corporation, 19, 172, 208, 321 of friendly s(jciety may include actuarial statement, 166 before renewal, 171, 321 not a government warranty of solvency, though printed i« l-ifcgiHtrar s report, 187 right of member to, 208 n . liow served on member, 210, 212 to be filed with application for registry. 109 contents of, 170, 322 by whom signed, 169, 170 must shew society solvent, 170 false or erroneous, 171 duplicate to be filed, 171 as evidence for claimant against society, 171 must state all changes in the constitution, 176 IMAGE EVALUATION TEST TARGET (MT-3) ^/. /, {./ ^ / ■A 1.0 I.I £ l£ 12.0 IL25 i 1.4 I Uln: 1.6 V^A Va ^> ^ W /I ^ v^ ^^^ Photographic Sciences Corporation 23 WEST MAIN STREET WEBSTER, N.Y. USIO (716) •73-4S03 ^d\ iV 4 Li>' ;\ \ 4 4^ 404 Index. if STATUTES- 11 (ieo. II. c. 37 (Imp.), li. ll» Geo. II. c. 37 (Imp.), xxxvii. 38 14 Geo. III. c. 4S(Iinii.), xxxviii, xl, xli, li, liii, 13, 25«, 2(}1, 2()4 c. 7«(Imp.), 44 28 Geo. III. c. 5(5, liii 33G««). III. c. 54 (Imp.), 112 «J Wm. IV. c. 18 (Out.), 121 13 & 14 Vic. c. 32 (I'rov. (.f Can.), 112 1!)&20 Vic. c. 7!) (Imp.), llKi 21 & 22 Vic. c. 101 (Im|).), xli 22 Vic. c. 40 (Out.), 121 25 & 20 Vic. c. 8'.) (Ijnp.) (Companies Act, 1802), <,»4, 355 29 Vic. c. 17 (Gilt.), 277 30 & 31 Vic. c. 3 (Imp.), .w British N. A. Act 31 Vic. c. 53 (Out.), xxiv 32 Vic. c. 17 (Out.), 120 ;i3 Vic. c. 21 (Out.), 277 34 Vic. c. 32(Ont.), 113 35 Vic. c. 10 (Out.), 277 30 Vic. c. l!l(Out.), 277 c. 44(()nt.), Iviii, 11.5, 122 36 & 37 Vic. c. 00 (Imj).), s. 3, 1!»C J», 220, 227 10, 209 37 Vice. 34(Ont.), 1, 114 c. 45(Dom.) 17 c. 50(I)()m.), 210 0. 05 (I)om.), 145 38 Vic. c. 05 (Out.), XXV 38 & 39 Vic. c. 00 (Imp.) Friendly Soci- eties Act, 1875, xli, 50, 200 s. 4, 23, 24 07, 08 11, 12, 13, 14. 39 Vic. 39 & 40 Vic. 40 Vic. 41 Vic. 42 Vic. 43 Vic. 11, 39, 201 1!»0, 333, 335 193, 194 22(>, 227 102, 209, 217, 321, 351 B. 15, .33 8. 10, 102, 103 8. 21, 102, 103 R. 30, 209 8. 28, xliv 8. 32, 220, 221 8. 35, 217, 219 8. 39, 196, 198, 199 c. 23(Ont.), Iviii, 122, 124 c. 24(Ont.), XXV, 228 c. 45 (Imp.), 199, 333,335 c. 55 (Imp.), 33 c. 7(Ont.), 277 c. 49(Dom.), 216 c. 8(0nt.), 116 c. 25(Dom.), 145 c. 25(0nt.), 122 c. 49 (Dom.). 21« c. 20(Ont.), 207 c. 49 (Dom), 147 I STATUTES-Coti^nwfe/ I 44 Vic. c. 15(Ont.), 277 c. 20(Ont.), 207, 22S 45 Vic. c. 20 (Ont.), 30, 228 4(5 Vic. c. 15 (Ont,), Iviii 46&47 Vic. c. 47 (Imp.), 34 47 Vic. c. 20 (Ont.), 120, L77, 301 c. 27 (Ont.), 110 c. 40 (Dom.), 210 48Vic. C-. 28 (Ont.), 277, 361 48&49 Vic. c. 13 (Dom.), 148 c. 23 (Dom.), 147 49 Vic. c. 45, 311 c. 56 (Dom.), 89. 1,55 50 Vic. c. 7 (Out.), 304, .3(w) c. 26 (Ont.), 44, 119, 125, 384, 386 50 & 51 Vic. c. 21 (Dom.), 148 c. .55 (Dom.), 148 c. 56 (Imp.), 34 51 Vic. c. 5 (One), 202 c. 22 (Ont.), 117, 118, 126, 127, 274, 276, 277, .S61, 364 51 Vic. e. 25 (Ont.), 307 c. 20 (Ont.), 117, 190, 191 c. 28 (Dom.), 83 52 Vic. c. 31 (Ont.), 379 c. 32(Ont.),xxxvi,liv,22f>, 2.33, 2r,0, 252, 255, 307. 373 c. 32 (Dom.). 328 c. 33 (Ont.), liii, 59, 97,121 c. 104(Dom.), 03, 141, 143, 229, 232 53 Vic. c. 34 (Ont.), 220 V. 37 (Ont.), 345 o. 39 (Ont.), 277 3(n, 303 liii, 303 xlii,303 3()4 3(>4 372 371 88, 89, 117, 128, 222, 327, 356 Iviii, 118, 134, 327 223 118, 126 c. 44, (Ont.), 60, 382 c. 105 (Dom.), 63, 143 54 Vic. c. 19, (Ont.), 212, 368 c. 37 (Ont.), 380 c. 38 (Ont.), 215 c. .59 (Ont), 119 55 Vic. c. 39 (Ont.), Insurance Corixjrations Act, 1892, xxxiv 8.1, 9 8.2, 227,229,250,311 .s. 1, H. 3, 8. 4, 8. 5, 8. 6, 8. 7, 8. «, 8. 9, 8. 10, B. 11, 8. 13, Index. 405 STATUTES-CoH«/uHf(;, itt, .sr>,iw,i4(;, i!»r), 2()i, 202, 208, 210 (5). 17,23 (0), 24, IHI, 18.3, l«li, ];)7, 31(i, 322, (7), 14, 2I» (»), li, 30, 33 (!)), 32, 22!) (10), 33,37,58 (11), 34, 305, 310 (12), 11,13,25,30, 33, 35-55,, 5 » 70, 02, 155, 2(H),2(»2,2ii(i, 277, 27S, 2.S1 (13), 17,24.5(>,71 322 (14), 30, 5H.(;4, 143, 205 (15), 04, 171, 305, 311, 305 (IG), 04-0(i, 151), 104, 170, 187 217 (17), 07, 1(5 (IH), 08. 05 (ID), 08 (20), 08,172,181, 331 (21), 60,174,181, 281 (22), (51), 100, 13(5, 100, 351 (23), 01), 130, 10.3, 1(54, 180 8.3, xxxix,25,70,200. 8. 4 280 73 (1) 10, 24, 73 (2) ixiii, 10, 24, 37, 76, 80, 352 (A) 13, 7!) (B) 13, 85, 89, 140, 152 (C)13, 30, 46, 47, 73, DO, 127, 129, 161 (D) 12, 13, 57, 68, 81, 93, 04, 97, 129 (3), 97 136, 161 55 Vic. c. 8 », H. 5 161), 185 (1), 20,74,97 (2), 20, 98, 194, 8. 0, xxxvi, 10!», 1S3, 1N4. 207 (1), 74, 100, im (2), 50, .-,8, (11, 02, 70, 101, 2)M) (3), 105, 184,194 353 8. 7 (1), 10, 109 (2), 70, 111, 332 (3), 111 K. 8(1), l.S, 81, 128, 172, .321. ;i')2 (2), 13, 8,t, 1)5, 135, VM\, Ifil 8. i)(l), 13, 85, 95. 128,1 41, ]r)8. 321 • (2), 13, 24. 14.5, 150, .354 (3), 13, 152, ir.8, 354 (4), 1.3, 24, 89, 154, l.-)8. 354 8. 10 (1), m, 95, 15 172. 321 )8, L'OO. (2), 60, 159, 163 8. 11 (1), 19, Ktt), 1(J4 (2), 70,111,104. 105, 332 (3), 165 8. 12 (1), 09, 77, 1)7, 100, 13.5, liii, 145, 152, 150, 100, 164, 165, 177, 352, .354 (2), 168,186,352, 354 8. 13 77, 100, 145 152, 1.56, 169, 17.5, • 189 8. 14 (1) 10, 69, 1.59, 172, 353, .•r)4 (2) 69, 160, 173, 170, 332 (3) 175 8. 15 156, \m, 174. 8. 16 175. 176 167, 173, 174, 176, 353, 354 400 Index. ,STArUTK8-C'on^H(»Y/. STATUTES -C'o;i/m««'f/. I c I' ^ is 5 ■t 55 Vic. c. 31>, H. 17 (I), xliv, 171, 170, 177 (2) 17H (.i) 18,23,67,17!> H. 18 (1) 10. 71, 7(), (2) 25. 77, 182, i*. V.) (I) 215, 10(», 1K3, if-5, :m (2) 2r,. in:,, 184 H. 20 2«, ISI, 185, 32:i H. L'l N), ir.i), ISl, lS."i, lS(i, 352. 353 s. 22 (I) 62, t;(), 104, 1H7, 322, 324 (2) 188 (3) 18!) s. 23 181,189 s. 1>M1) l".>l,;{52 (2) 1!)3 (3) i;t3 HI. 25 (1) 27, <•(;, 135, 171, 1!>3 (2) 13."}, 104 .'^. 2(5(1) 11, 1K2, 105, 28.3, 284. 3J0 (2) 181, 18(), 2S4 (3) 10(1, 284 (4) Km. lOrt, 284 (5) 2.-., 71. 77, 1.3.3, 1(15, 182 l!t7, 204, 284 ((J) 7-J, 182, 107 (7) 74, 77, l(i5, 182, ItIS, 284 (8) 11,100 «. 27(1) xxxvi, 14, 25, 03,71, 13."), 107,183 180, 10.5, 100 lOil, 205, 22(5 205, 2S5, 322 (2) 14, 201, 20.5, 2(55, 280 (3) 203, 28(5, 350 (4) 203, 28(5, ;^)0 (5) 71, 204, 28(5, 3.50 (0) 203, 204, 280, ;i50 (7) 201, 204 s. 28(1) 18,207 (2) 208 8. 20 (1) 18, 20, 172, n.'*, 170. 180 185,208,221, 321, 324 55 Vic. c. 30, N. 20 (2), H. 30(1), (2), (3), (4), (r.), M. 31(1), (2), (3), H. 32(1), (2), s. 33(1), (2), (3), (4), H. 34(1), (2S (3), {■i\ (5), H. 35(1), (2). (3>. (4), (•)) (0^ (7), 8. 30, 8. 37 (1), (2). (2\ (3), (4). (5), (0). 17), (8), m, (10), m\ (12), (13>, (14) 8. 30(1), (2), 8. 40(1). 17, (57, 212 21, 27, 211, 21(5. 318 21, 218 21, 218 10, 21, 08, 210 10. 20. 21, 211, 217, 220, 318, 320. 34(5 20, 21, 211, 221. 320 27. 170, 218, 221 27, 218, 221 221 li. IS. 220 18. 220 11 V, 227, .372 232, 372 215 240, 37(5, 378 383 liv, .30, 2.W 3, 02, 202, 274, 277, 3(51 10, 28, 277 3.-)2 278 280 2-t, 2S1, ?33 28, 20, 282 20, 282 283 283 283 284 29, 28', 3;« 281, 285 270,281,285 278, 280, 287 li, (50, 287 GO, 289 li, 200 (2), 303 8. 41 (1), 35, (1, 171, 305, 319 lii, .Ufti. 2), 17, (57, LM2 (1), 21, 27, L'll. 21ti. MH (2), 21, L'lS (3), 21, L'l.S (i), i;», 21, (W, 2r.> (r.i, 10, 20. 21, 211, 217. 220, .SIH, ;{2(). -.Wi («\ 20, 21, 211, 221, :}2() 1), 27. 170, 21H, ')OI **^ 1 2), 27, 21 H, 221 ;i). 221 I). li. 18, 22(i 2), 1."^. 220 1), liv, 227, 372 2), 232, :\72 31, 2i:> ■1), 24(), •A7t\ 37« liKi 1). liv, ;{(), 2r)0 2\ 3n, 2".2 3), 2r.a ■i\ i;5-) huh-r \\)1 .5), 2;k) 1), xx.\viii,xlviii Hv, 4S, 2.'iG HH, 25!) 2()3 XXX iv, lii, 2«a, 203, 205 li, 200 Iv, 40, 207, 304 00, y2, 202, 274. 2), 3', ■»), •')) 0^ 7), i). 2). 3)! 4), 5), R), 7), «), ^>), 9), l\ ^). 3\ 1) I), 2), L). J), 277, 3()1 10, 28, 277 a.~)2 216 280 2-!, 2S1, ?33 28, 2i), 282 2i», 282 2^3 283 283 284 29, 28-, 333 281, 285 270,281,285 278, 280, 287 li, 00, 287 GO, 289 li, 200 303 36, (1, 171, 305, 319 STATrTKS r„„thn,f.l. •"•5 \i... ... Mil (2). (11, 104,;{(»S, 3M ^- y^ 217, 22:.. ;•'> ( 1 ), 'X\:>, 'M:\ (2), 343 ■*■ ■''■' ( 1 ), 73. .3;{5. .344 (2), 344 (3), .345 (4), .345 (;■»), 340 (.8 (1), .3.35, 3 I.S (2), 312, .340 -■ -'O (I), .3.'{5, .3l8,:r,(t (2), ;c.o (3), .350 ^- '•" 71,201,211, (3), .324 s. 4S .'{24 ^- 49(1), 28, oil, 108, 184, 1!(4, 325, 330 (2), 28, 194,321>, 33() (3), 111, 104,. 3.30. (4), .331 (•■>), 331,. 340 •"•'"iOd), 102, 1(;4, 194 332, .3.37 (2), :«2 (3), .332 (4), ,333 ■'•'•Id), 111,135,102, 104. 105. s. 01 279, 285. .350 .351 I>'v Fl, 74, 1 '■'-' l>iv. [, 0!t, 1.30, 144, \:y^^, 102, 107. if'O, 174, 183, ISO, 283, .3.32, .351 C. S. V. C. C. S. C, 00, 105, 152, 151, 2S3, .3r,3 I'lv. I If. ;{;55 I>iv. fV. 182,198, 3.5;5 ''• ''3. \\), 10.3, 12!t, .327 355 (2). !»<». 91, 270, .357 5'» 221 317 (2), 105, .3.35 (3). 10.5, .3.35 (4), .3.35 H. 52(1), .-a^ .'{.37 (2), 330 ^••'^^3(1), 73, KMl, ].3i5. 104, 104, 223, 317, 3.35, 33(i, 348. 350 (2), 338 (3), .3.39 (4), .339 ■*-r.4(l), l(;j,.3.35.;i39, 318. .35(» (2), 310 (3). .340 .In' o?.'' I'"t''^'' N.' .\". A )2 11.- c. 71 113 ct R. S. ( ' c. Ill, c. 119. p. 124, H.I. ('.A. — 82 02,(151 xxiii, 202 54 UK), 220, .320. m) XX viv, 25 ,20. .-,0,70' 79, 141. 184, 185 200 -. 2 (i9, 70 3 83 4 81 5 328 8 105,328 9& 10 05, 100, 328. 12 172 14 170 18 108, 1!(5 21 ,328 22 xx\vi,04, 14.3, 201, 203. 205 204 IDS Infl c, r i ( I s I N, ^J 4.1 STATl'TIvS C»„ti,ut<ii \.\x 2H 2!» los :«»&;ii lu.s :{:( (it) V. !.>;!;< :{(i ;«i, r.s, c.i, s-_>, mi H7 c.i, fi-J, nil. lo.s :<■; r.(i,c.i, cj, 7('>, n>i. in;t, nil. 1().\ ls7. :«i J21, ^ NX\i\, C.I, t; r<;. lui, luj, lit:., .S'l'A'I'I'I'KS r,,„ii,ni.,l. K.S.O. JSS7. I'. US, -JIM 1.S7, IVi. 221, 277, :'.(>.s, ;{2s M CiM 42 ('•:{ r.\ 1(1. C.I, Si, s4, n;{. ■I.-) ic, i(»s, :ur., :i2s k; :;ic. 47 ;w ■1!) .'.2, H4 c. 1 •-'!•, h ii, los. 3ir., ;t2H. <•. i: 1!» 11(1 K.S.O. ,is.s7,c.l,f..(i. •) s. S (2(»), 204 (22), lil'.l (24), •,VM (:<7). lilC. (4«»), 11(1 (44), 2011 c. 44, s. 28 Ivii s. ;«) Ivii S. i>',\ :!4o s. lor. ;i:ir. c. r.i. 1 f. (■>( , 204, c. (il. T.Hl, IftS c. S(», ;-:si c. s:<, :vsi 202 1 c. .», u. 11(1, 180,214 c. IKi, 25, 70, 71 i\ VM, liii, S.s,'.IO,l Til (12 T.I5 72 .S55 SI ;{55 "12 HS 1(H) 20s, i>i7 io:{ H21 , H2:{ 104 H21,H27 1011 (11,(15 no HI 114 liii, HI, 45, 227, 2H2, 2Hil, 24(1, 241), Hll, HI 4, H17 (S..(. Ap- IK'udix A.) 115 22s, 27H 117 27H, H04 lis HSO 120 HSO 122 2'.>, 5!) 124 (.0 125 (10 IHO 212,H.')(; i;vj HS2 i;<7 H(17 IHS 10 140 (12, 1 '.)!), HIS 141 HIS 142 TI4, 220 14H (12, HI), H27 Kli), 14(1 217, 21s 350 T.»S 151 1(H), ;vjs l.HH Iviii 21 H .'Ill ■>\ I '.Ml. '2\'2, ;<"j(i. m.m; 7 •Id, '.IS, ;{27 a 15 172 7 ; 3S0 2'.l, .^)'.» CiO (;o 212, 3r.(l 3S2 3(;7 10 (12, I'.l'.l, 31K 31 S T.I4, 220 (•.2, '.!'.>, 327 217. 21 S I'.IS 100, 32S Iviii 1213 A,. .s'l'A'rr'I'K.s r.,„tu,,int. lltth'.i . ('<»ll-nl. Hnlcs V.)\) |{. s. (). is.H7.r. ic.'.i, s. .m;. 21.". c. 172, N7,ss,,s:i,ll(;, 127, 12S. i.-,s, ;;22 s. I 102, 117, 327. 3V, 2 137 J 137 .". 102, 137, 3.".r. (J 137 Kt I, 2(;<1 II '.II, 123,27.*. U 137 17 3.m; III S',1, l'.i:5 32S, 330 214 3S1 .-. 1S3, (•. ISO, *•. 217. fciis..]. KiiL.s lie, 341. 317. 11 '.I, .344 I20, 311 I2:«, 317 I2.'., ;U2 1 JO, 333, '.W.S 1 17. 3:v.i 1f.3, 'X\S It; I, 3;w \{\\ x\ '. Hit;, 330 101, 31.-. 2.-.3, 17'.l 2r.7, I7.H 2<;'.». 17« 47r.. :<.34 47'. >, 3 m 121".. :m x.v. i.iius, isrr, f. .H21, 1SS3, I!. 17.'.. 17 |SS7. V. 2^."., 17 .STATTTOKY (JONDITIONS til In- piiitof ((Very contrin't, ;<72 (.'xt.'iisinii of ijriiicipli', .373 (1 ) ;i-< to iiii--ii'|irc-ciitiit inn nr niniMsii.ii, .374 iii:iti'ri;ilir\ <.f, 374 (2) policy t't 1)1- (ifciiic'il ;\s ;i|i|i!ii(| for iinlfss vnriiint'c i.ointcil mii, 37."> (3) fiiaiiK'' iii;itcri;il \n risk ti. !.•• iii.tili'-d tn <-<>., 37."i ( H rli.Mi^c III' pr.»|i( rty, 370 (".) partial (laiiia','c, sal\a^'c, 371. no al.andonnifnt, 370 (0) ninnt'y, sccwritirn, imt insnrfil. .37'i (7) plate, ^.dass, etc., not insnrctl, .370 (S) clfci't i.f fnrtliir i.r prior insurancf, .37t'. [',)) Ass( lit tot. tiler insiiriiiice. 370 (Kl) iteil risks, 377 (11) explosion and li^ditnin^'. 377 (121 proof of loss l.y assured, 377 (13) direelio;is in inaUiii'.,' claim. 377 iiHiirers ri|;lit of entry after loss, 37s allowiinei- for c .sts occasioned l.y pl.iint itf's default, 37l> (11) proof l.y au'ent, 3S0 (ir.) frand in claim, ;{.S0 f .1: in\ estii^Mtion of elaim--. 3S(t I'oroner's infjiiest, 3S1 (10) arbitration, 3s2 (17) loss wlien payal.le, 3S2 iK rctnrn of pveminni not«', 3S2 (18) reinstatement, 3S3 (10) insurance terminable on notite, 3S3 (20) waiver, .3S4 (21) who deemed agents, 384 (22) .actions to l.c l.n.n^rlit wit.liin one year, 384 (23) what constitutes written notice \ariations in, liow iiiiiicated, 3S4 no t liindin;.' unless ele.irlv indicjitcd, 385 |H.licy containiii},' other than, 3S."» when due j.n.of Hircordinj,' to. not ^'iven, ihron^^h accideni. 3SJ appeal from decisions on, .'iSO in fire policies, 227, 23L' history of, 228 variations in. 22S descriptions of pi-opert.v ur.der, 24(1 r,()0 Jnd t'.r. 1^ I = STATIT* )ltY (•( )NI MTK >\S" iii lift' iiiHiiriiiuM', 228 in live Htix'k inHviruiicc, '-I'M, 'I'A'l in till cdutnustn of inHuiunuc, 227. 22t* > STKAM - l>, 2*iO elFect of, 2."H> SURVIVORSHIP prineiples, insurance on, 45, 5(( SUSPENSION of license, 25, 2\\, !W, KD, 105, 135, IKI re^'istry, 21, 25, !»H, 105, 135, 1S4, 103, 315 notice of, 103 for obstruction of auditor, 221 by certain events (}>»<> facto, 320 of c irporaie )>o\vers, 222 of uiendM-rs, 207 of subordinate KkI^'c, 20H T. TAHLK- Hni., I.\ per cent., 253 TELK PHONE - contracts by, 30 TEMPERATE— meaning of, 244 TENliEK of assessment before withdrawal, 2S0 forfeiture, 201, 21Mi htf/r.r. TKNhKlt will II iiiiinciK»arv, LIn; t" Wllniii iii;m|,.. L»tMi wImii tu \m- uituU; '.tt; • •y siis|M'ii*MNll<.r|K>iciii.\oI».|it H.K-ifty, |,">2 rf'K'ixtcnd rii]«'s of, ]:,'A' contracts of inm.nuic,. with, how t-nforuiKl, IM TKAI)I.\(; SOflKTY not cntithHl to rcffihttr, 'M of •soci.ay, iiK ln(!«»I )m(|,.r olfuvr. (W TKir.sT- If* intfrini ffccivti, win n •: 7.{ for hfiiffici ary, insnrjinci- money imyahlf ii fnnd TKUS'rKK of n-M'rvc fund icKaiil.-d un a, 17!) ■S niKuranc*' of. 4:i .f s<|fi.-ty indudf, VM nXArTHOKf/KD- UNfLK-"""'^''' ''*'""'*^'^'*' '»"' 1"<* ii:8uralil«- inten*Nt «»f, 2«M> UNDKRTAKI\(i- insuriuic.-, what conKtitut«'H 1 fffectuf, 11, ly, .% 502 I Itdf.f, irNDKUTAKTNC IM'iirtlty (HI, witliniit iuitimrity, xxxvi, IJMJ ffr n(Tciill(^ to llllilil tilkc UNDISPl'TKI) w. ••Cliiiiii." "UN.FUST and rXHKASONAr.rj-;- I'T.S irNNKCIOHSAUV DANCJKU- triiti<)ii, iiiHuniiu'i' l>v, 7<). 71 forci^'ii, n'MJili lit ill Ontiiriu iiuiy Mtiid |irt'iiiiuui tn, 72 pciLilty oniimuiaiKid liy, I'.M.t "UI'ON I'KOOK" ^ iiHiiiitiuii (if, fit), 18)i V. I i c 5;> I 5 VALl'AIJLK CONSIDKIIATION- ii tent (tf an inHuri*ncfi cui-pdratinn, 1 1 VARIATION - of olili^^ation uikKt uocidciit politiy niunt bo ju.it anil rfu^Dnablt', -07, .statutory uomlitions, 273 V(.LIFNTAKY t'X|)OHnr« to tinimceMBaiy tlaniftr, 40, L'(»7 wliat (:i)iiHtitiitt!s, 271 '- a(iii('Htiiiii for jury, 'J71 hin'tlcn of [trout of, 272 VOIICHKHS Hi'liaratf, to hv kept liy insurance braacli of sooioty, 15 refusal to exhibit, 20 w. WAGERING P()Ll('IKS-25r,, 257 14 Geo. III. c. 4S, effect of, on, 257 WAGES— inHurance aj;ain.st Iosh of, 41 set "Cliouiage." WAIVER- • - of (luestions by issuing jMtlicy. 23(5 of notice of asses.sment, 202 of loss, etc., 313 forfeitiu-e, 204 pHMif of loss, 313, 314 iiin to, 72 rfiiionablc, "Jli?, hiih-i-, r,,,.j NVAUIf.WTV '•'"'ijlr;''^ ' ''■"' ''"■•''" '"''**•"' *n .i,.;.li.-..HnnH f..r JMo.ni,,..., WIDOWKI; - ...,,.,. ■.fi'"«n'm tl.iif nppliiMnf \<, ni.it..n.ilitv >.f. :.'45 NV l.\|)|N(; i:i» _ »'tr«'ct oil ii'^'iMti\, us, ;to . ,, iiiirfj,'i.st»Tt>(i.stK;'iity, r.\, 7;{ WIM)IN(} ri' liioliiliittxl sdi'if'ty, \y,\ iiftiT u.niffllafioii of li.ciiHi,, lOH ofOiitiiiiolicciiHtiM, Ivii. :i;(') wiTiiiur\\\.\i. - of iiifiiilM IS from Mncicty, i»S!t notice of, •J,S!"( wli.'ii coiiiiilctc, L'SIt a liar to at on. U.V.) WIVKSaiHinilLDKKX insiiraiico for Ixiutfif ,,f, 274 A<;t n-latin- to, ..pplJoH to fiioii.lly Mo<.i,.ti,.« -71 (• intiol< l.y l:iWN of ^oi-iffy •>7:, •>7(; ,, . "Iii't All iii(lu IK.hcy may In. H.-claitd for lH.„,.Ht of, 3(J2 form of (Icclaratioii, .Tc' wlifn- policy Ittiforc iiiarriapc, ;{(;3 .ippoiiitmcnt nf hciicfit, aCJ where no ap|M.intm«'iit mudc, 3(m ;ini| licncficiary die, ;j(;;, andpcrsonscntitlcidics, aiw; moneys not Iial.Ic to crcpointmentof trnsKis, .'Uii; where m, tnistccH, payment to exttcutors and K'liardiann, 3C.7 i'ayment wliw licneHciary out of Ontario •W!7 ' investment of sharcM of infants, 3r,8 sccnrity l.y ^'iiardian, 'M\ payment of infants' Hhan H into Court. 3(;u dir<(!tion l)y ('oiirt as to payment, .%!» power to Hiuiender pohcy, 370 to borrow on itoIicV, 'AM msiirod may dire c""«iH<'rei iu-('iil)'iil, .VJ • •rKiiiiiKiititiiix (if, wIdii fX)-in|it fium Ad, 1.">J WOirxD- iiDiiuiin^ of, 'i\l WIU'I'TKN UiiIiIm (•(ilill'il |ilil|tl'(| nliiM, \\2 Y. YKAK i/niiiiiitii.iis fn Im- liijd wieliiin.iii., 'H\\ fr; c'tii.iiiil piirt «if. in crrnr nf jij^e, 2iVi ^j ^ [505] NOTB APPENDIX D TO n'TSTERH INSURANCE CORPORATIONS ACT. Th* amtmUng Act of 1893 {56 Vic e. Si). -Spare copies of thin Act (»rrMi«ed. as below, for convenient luBertfon in HiiuterB Insurance Corporatlouti Act) i-an \w had of tho C»r«wen Co., (Ltd.t, 30 Adelaide St. E.. Toronto. Price ton cent* each. Tki.s AnitNding Act, '' Appemlix />,'' printed on one .side onty that its sections lU he cut out and placed opposite the uses cuneuded. Interpret** 1 tion : Con- J Btruction generally. (2) The expression 'trade or labour union or orefaniza- "Trade or tion means such an organization oi wage-earners of a union or particular trade or industrial calling, as is primarily consti- "o°" tuted and is actually operated bona jide for the regulation of the wages and hours of labour as between employers and the employed ; but shall not be deemed to include co-oper- ative associations or societies. [56 V, c. 32, s. 1 (2).j 504 T)l(h'.i WORKMKN colh'ctivi' |M)li(;i«'s aRaiiHt accident, i^2 orj^anizatimis of, wlicn i-xcinpt fnuu Act. l."»t WUIIND- iimaniii^f of, '242 WRITTKN ~ •iii'aiiing of, 82 words control printed ones. !?2 <* ' \\>iVf v^ ^ [505] APPENDIX D TO HUNTER'S INSURANCE CORPORATIONS ACT. The amending Act of 1893 (56 Vic. e. 32). NoTB.— Spare copies of this Act (arrauged, as below, tor convenient insertion in Hunter's Insurance Corporations Act) can be had of the Carswell Co., (Ltd.), 80 Adelaide St. E., Toronto. Price ten cents each. 56 VICTORIA CHAPTER 32 (Ont.) {Assented to 27th May, 1893.) laoe le: 9 x\n Act respecting the Insurance Law. TTER MAJESTY, by and with the advice and consent of -^-■- the Legislative Assembly of the Province of Ontario, enacts as follows: — !• — (1) This Act shall be read and construed as one interprets- with The Insurance Corporations Act, 1892, hereinafter struction called " The Principal Act." [56 V. c. 32, s. 1 (1).] g«n«"»y. (2) The expression " trade or labour union or organiza- "Trade or tion " means such an organization of wage-earners of a un^ion'or particular trade or industrial calling, as is primarily consti- K."*^* tuted and is actually operated bona fide for the regulation of the wages and hours of labour as between employers and the employed ; but shall not be deemed to include co-oper- ative associations or societies. [56 V. c. 32, s. 1 (2).j ^ 2 B( i: 128 ) face age 57 [506] (3) The expression " insurance fund " or " insurance fund""?"* funds " shall not be deemed to include any fund or funds of " ^^^^'■" a trade or labour union or organization appropriated to or applicable for the voluntary assistance of wage-earnera unemployed or upon strike. [56 V. c. 32, s. 1 (3).] 58 m^Sun-' ^'^) " Endowment insurance " includes any contract of Burance." insurance which contains an undertaking to pay an ascer- tained or ascertainable sum at a fixed future date, provided the assured is then alive. [56 V. c. 32, s. 1 (4).] 11 (5) The word " lodge " includes a primary division (by "Lodge." whatever name known) of a friendly society. [56 V. c. 32, s. 1(5).] 128 frieSiy ^» — (1) Where a friendly society, registered under The fuco^ora- Principal Act, has its head office elsewhere than in the Provfnciai Province of Ontario, the Grand or other Provincial body, ^°^^' or the lodges or a majority of the lodges situated in the Province may file with the Registrar of Friendly Societies an application or applications for Provincial incorporation, setting forth the facts of the case and the proposed corpor- ate name, and head office and rules of the society; also naming those persons who are to be its first trustees or managing officers, and stating the mode in which their successors are to be elected; also furnishing such other information as the Registrar requires. [56 V. c. 32, 8. 2(1).J r i c ■1 3 5' 5 .«3 ^^^ 12 face [lage : 128 Hearing of applicn- tion and notice. [507] (2) Upon due application made the Registrar may name a day for the hearing of the application, and such public notice of the hearing shall be given in the Ontario Gazette and otherwise as the Registrar shall direct. [56 V. c. 32, s. 2 (2).] 128 Certificate of incor- poration. (3) If upon the hearing it appears to the Registrar in his discretion that such incorporation ought to be granted, he shall have authority to certify in duplicate, or in as many parts as may be required, unatx his hand and the seal of his office that he finds entitled to incorporation under the name and for the purposes specified in the certificate, the persons mentioned therein. 56 V. c. 32, s. 2 (3).] L28 Filing of artiflcate. Proviso. (4) One of the original parts of the certificate shall be filed in the office of the Provincial Registrar, together with such other documents as the Registrar of Friendly Societies shall by his certificate require to be filed ; and 'rom the day of such filing the persons mentioned in the Registrar's certificate and their associates and successors shall thence- for\\ard be a body corporate and politic, and shall have the powers, rights and immunities vested by law in such bodies ; Provided every body so incorporated shall forfeit its corporate powers by non-user as providea by section 1 oi the Act respecting Benevolent, Provident and other Societies as amended by section 63 of The Principal Act, and shall be liable to have its corporate powers suspended or revoked as provided by section 10 of the Act passed in the 53rd year of Her Majesty's reign and chaptered 39. [56 V. c. 32, 8.2(4).] o i c 11, s 3 .' I: Registra- tion. [508] J (5) Upon due application the Registrar of Friendly Societies shall have authority to admit to re^^stry as a friendly society the body so incorporated. [56 V. c. 32, 8. 2(5).j Inoorpcra' tiou of auxiliary bodiea. Registra- tion. 3* Where it is in the opinion of the Registrar of Friendly Societies necessary or expedient that an auxiliary, or local or subordinate body or branch of a registered society should be separately incorporated, or separately registered, or both, or that two or more Societies should be incorporated or registered as one Society, the Registrar may direct the like proceedings to be taken as in the next pre- ceding section enacted, and the filing of his certificate in the oflfice of the Provincial Regist ar shall have the same effect as therein enacted ; alto upon due application the Registrar of Friendly Societies shall have authority to admit to registry the body so incorporated. ^56 V. c. 32, s. 3.] -N Incorpora- tion of Bub ordinate lodges. 4.; — (1) Any unincorporated lodge or body controlled by a registered society, and operated under the uniform rules prescribes by the said society, and not contrary to law may, through the society, make application to the Registrar of Friendly Societies for incorporation ; if upon due appli- cation it appears to him that incorporation ought to be granted, he may certify the same under his hand and the seal of his office; and the filing of his certificate in the office of the Provincial Registrar shall have the same eflfect, and be subject to the same limitations as enacted in sub-section 4 of section 2. [56 V. c. 32, s. 4 (1).] 9m 11. i». > ?a To face page: 128 [500] DtMolu- tioii of the tiou°" the warrant or charter (2) If the registered society should at any time revoke under which th-^ body so incorjx)r- ated is operated, such invocation ahall be certified in [ duplicate by the presiding C)rticer and the secivttiry of the '^ society under the seal thereof : one of the said deplicatea shall be tiled with the Registrar of Friendly Societies, the other with the Provincial Registrar ; and this certiticate from the filing thereof in the office of the Provincial Registrar, shall ipno facto operate to dissolve the body so incorporated, and to vest the property, assets, funds and effects of the said body in the presiding officer and the secretary of the registei'ed society and their successors in office as trustees for the creditors and persons beneficially DispoBai of entitled; and the surplus (if any), after the liabilities are 81886161 satisfied, shall vest in the registered society to its own use absolutely. [56 V. c. 32, s. 4 (2).j 128 Super- ^. The officers of anv superannuation or benefit fund aunuatiou . " ^ orbeueflt authorized by sub-section 7 of section 504 of The Con- funds *' ^^f^^Q^^' solidated Municipal Act, 1892, or by sub-section 12 of c^Yw^B.^iS. ^^^^^^^ 496 thereof, or established by virtue of any prior or amending municipal Act, or by virtue of any Act authorizing the establishment of a benefit fund for police- men or firemen, and the officers of any benefit fund established by virtue of section 48 of chapter 145 of th© Revised Statutes, 1887, may, upon like proceedings taken as enacted in section 2 hereof, become incorporated with the same limitations of corporate powers ; and the body so incorporated may, upon due application, be admitted to registry. [56 V. c. 32, s. 5.] I ( a i 4. if 3 /■ I \ [510] Unincor. f|. Where a frieiully society has itn head ottice in Ontario I)<)rated _ j J •ocietieH ^u,! ^hc socletv' oi' tht' hxltTOH of the society were, on the eiitltlud at J ^^ J ' ibw.^'""*'t«"<^'» (lay of March, 181)0, an it • > .i-.*f I-,' 'U iMl" ;;v^ 41' i'llt lac* [511] of the foreij^ court, and that tlie proposed tnistee is a fit and proper person, and that the security has, in accordance with the practice of such foreign court, been given in respect of and for the due application and account of the money payable under the policy, [5G V. c. 32, a. 7.] f]4, 53 Vic. W — (1) Sub-section 1 of section 6 of tlie last-mentioned amended. ' Act as the sauie is amended by section 6 of the Act passed in the 53rd year of Her Majesty's reign and chaptered 39, is amended by inserting after the words " one or more of them," in the sixth line thereof, the following words: "or to the mother of the assured as a benenciary or sole benefi- ciary"; and the said section is further amended by adding at the end thereof the following words : " or for the benefit of any one or more of the above-mentioned persons for life, and, after his or their decease, for the benefit of any one or more of the survivors." [56 V. c. 32, s. 8 (1).] 53 V. c. 90, (2) Section 5 of the said Act is amended by striking B.j5.;meDd-Q^^ in the fifth and sixth lines thereof the following words : " and may, as in the said section provided, vary the apportionment." [56 V. c. 32, s. 8 (2).] Rev. Stat. O- The Ontario Insurance Act is hereby amended as c. 167. p 11 oraended. tollOWS : Rev. Stat. (1) Section 107 is amended by striking out all the words amended^' down to and inclusive of the word " period " in the second line, and inserting the following words in lieu thereof: " Any contract that may be made for one year or any shorter period on the mutual system, or for three years or 9^ *m g r i ( I* q3 % 'TC C' ' vr ^J ^ i^ £ ^ 3 -J ^ s 3 i \ i 03 fac« ge: Kev. Stat, c. 167,8.122, 8ub-8. 2, amended. [512] any shorter period on the cash system "; the said section is further amended bj' striking out the word " his " in the fourth line and inserting in lieu thereof the words " a new "; and is further amended by inserting after the words " cash payments " in the fifth line the words : " or premium notes." [56 V. c. 32, s. 9 (1).] (2) Sub-section 2 of section 122 as enacted by section 1 of the Act passed in the 53rd yeav of Her Majesty's reign and chaptered 44, is amended by adding at the end of the said sub-section the followinor words : " but the notice required by section 133 of this Act to be embodied in or endorsed upon the premium note shall not be deemed to be 'other matter' within the meaning of this sub-section." [56 V. c. 32, s. 9 (2).] (3) Section 123 is amended by striking out the word in the fifth line and insertir sixty." [56 V. c. 32, s. 9(3).] Eev. Stat c. 1C7, 8. 23, amended, "fifty," in the fifth line and inserting in lieu thereof the word Rev. Stat. " (4) Sectiou 80 is amended by insertino: after the word c. 167, 8. 80, ^ ^ . . . amended. " officer " in the fii-st line, the following words : " or the banker of the company." [56 V. c. 32, s. 9 (4).] 55 V. c. 39, s. 2, Bub-s.8 amended. Contracts to be deemed madj in Ontario. 1 0. The Principal Act is amended as follows : — (1) Sub-section 8 of section 2 is amended by adding thereto the following proviso : — " Provided that when the subject matter of the con- tract is property or an insurable interest within the jurisdiction of Ontario, or is a person domi- ciled or resident therein, any policy, certificate, interim receipt, or writing evidencing the con- tract shall, if signed, countersigned, issued or 1 To I" 161 5; 3 70 J "o face page : [513] delivered over in Ontario, be deemed to evidence a contract made therein, and the contract shall be constinied according to the law thereof ; and this proviso shall have effect notwithstanding any agreement, condition or stipulation to the contrary." [56 V. c. 32, s. 10 (1).] 64 f 7sui>9' (2' Sub-section 16 of section 2 is amended by inserting 10, amend- af^er the words "friendly society" in the seventh line the following words : " not undertaking endowment insurance or aiuiuities." [56 V. c. 32, s. 10 (2).] 163 Likewise sub-section 2 of section 10 is amended by ''^y• <^- ?^' J 8. 10, 8Ub-8. inserting after the word " society " at the end of the first '^' ameuded line the following words," not undertaking endowment insurance or annuities." l56 V. c. 32, s. 10 (2).] 70 £5 V. c. 39, 8. 3, amend- ed. Civil ser- vice fund of Canada. (3) Section 3 is amended b}' adding thereto the follow- ing proviso : " Provided that no superannuation or insurance or ' annuity fund, managed or controlled by the Government of the Dominion of Canada for the benefit of the Civil Service thereof shall require to be registered." :56 V. c. 32, s. 10 (3).] (4) Clause B of sub-section 2 of section 4 is amended ss v. c. 39, b. ^ ^ .4, 8ub-8. 2B by adding at the end thereof the following proviso : — amended. i ^ g 3 )8 )8 ice e; [514] i •' Provided also, in any case of doubt where the bona f^^^^^l^^, fide intention of a society is to afford charitable **b'« p"1[- •^ *' poses ouly. aid or relief, and not to create either any con- tractual right in the members or any contractual obligation against the society, upon the society making such intention apparent in its rules and publications (by such amendment, if necessary, as the Registrar shall direct), the Registrar may by writing, under his hand and seal of his office declare the organization exempt from the opera- tion of this Act, and such certificate shall remain valid until by like writing revoked, and the society so exempted shall not be subject to any penalty imposed by this Act." [ 56 V. c. 32, s. 10(4).J )8 (5) Section 6 is amended by adding thereto sub-sections 65 V. c. 39, B. 6 amend- ed- 4 and 5 as follows R s. c. c. 124. )8 Lloyd 8. " (4) Corporations, companies or insurers within the intent of sections 3 (a), 49 (4), or 32 of The Insur- ance Act of Canada, may, upon due application, be admitted to registry. (5) Upon due application of any underwriter of the establishment or society known as Lloyd's, and more flirticularly described in an Act passed by the Parliament of the United Kingdom in the thirty-fourth and thirty-fifth years of Her Majesty's reign, and chaptered 21, or upon due application of any such underwriter's broker, or broker's agent, the said establishment or society may for the undertaking and transac- tion of marine insurance be registered under '. ; i c >• I Qe 1 tj H 99 E^- V. 13 1 3 «3 to ') ■I . face ge: [515] i 08 Term of BegiBtry. the general name of Lloyd's, which shall include the corporation, all underwriters of Lloyd's for the time being and their brokers, and the agents in Ontario of the corporation or of the under- writera or brokers. In any action or preceeding against the corporation, or against any under- writer, or broker, or agent as aforesaid, for liabilities incurred in Ontario the Inspector of Insurance may receive and accept service of process ; and acceptance of service in waiting under his hand shall to all intents and purposes whatsoever be legal and binding upon the cor- poration, underwriter, broker or agent. For purposes of this and the next preceding sub- section the term of annual registry shall com- mence and end at the respective dates here- inafter prescribed in the case of insurance licensees of the Dominion of Canada. [56 V. c. 32, s. 10 (5).l to 55 v. c. 39, (G) Section 8 is hereby amended by adding thereto amended, sub-section 3 as follows : — Head o£9ce3 of Ontario societies. (3) No society applying for registry or renewal of registry by virtue of its incorporation under any Act of Ontario shall be deemed to be en- titled to be registered unless its head-oflSce is situated and maintained in Ontario, and unless the presiding officer, the secretary and the treasurer are bona fide residents of the Province. This sub-section shall take effect on, from and after the Ist day of January, 1895. [56 V. c. 32, s. 10 (6).] I I. ? .... I : •/ ,'■., ' 4 . I r I ^ 99 3 1 .1 •..•:'■. ',; .: ,. J '•l!'.!' -' i' ;.' .'- ■J « •-pt--;;( ■■'}>, , I : ■■ t •■•■■.: n . • 1 U^mV '», • ' ' • A >face 154 93 [516] (7) The proviso to sub-section 3 of section 9 is amended w^'- c- so, by striking out all the words after the word "any" in the »"'»"'^"'' first line down to and includino- the word " members" in the third line, and inserting in lieu thereof the following words : — " bona tide trade union or labor organization," and section 9 is further amended by adding thereto sub- section 5 as follows : — " (5) Any association of the civil servants or em- civii ser- ployees or the Dominion oi Canada, incorpor- atious. ated bv virtue of an Act of the Parliament of Canada may, upon due application be admitted to registry." [56 V. c. 32, s. 10 (7).] (8) Sub-section 1 of section 25 of The Principal Act is ^'jj; ^-^^^g amended by striking out the word "Registrar" w^herever it ^' »'"^"'^«'* occurs and substituting therefor the words " Registry Officer"; the said sub-section is further amended by insert- ing after " purpose " in the third line the words " is insol- vent, or is on the verge of insolvency. [56 V. c. 32, s. 10 (8).] |19 (9) Sub-section 4 of section 30 of the Principal Act is 55 v. c. 39, B. 30 3Ub-S. amended by striking out the word "or" in the first line and *. amended inserting the word "for" in lieu thereof, s. 10 (9).J [56 V. c. 32, ■\ ?a4". buE'b. (1^) Sub-section 2 of section 34 is amended by insert- 2, amended jjjg^ in the secoud line after the words "shewn in," the words " or deduced from " ; also, by striking out in the third line the word "table," and inserting in lieu thereof the word " tables." [56 V. c. 32, s. 10 (10).] I c I- s 1 3 [517] (11) Sub-section 5 of section 35 is aniended by adding « v. c. 3». thereto tlie following proviso : — ameuded. "Provided tliat, instead of printing the matter Jy««raaoo required by this sub-section, the company may '>«•"»'• "^«» with the consent in writing of the Inspector of Insurance print or stamp the following words in lieu thereof : — ' Any insurance undertaken or offered to be undertaken in the Province of Ontario in reppect of the lives of children under ten years of age is subject to the restrictions enacted by sub-sections 1 to 5 (inclusive) of section 35 of The Insurance Corporations Act, ISO^y 156 V.c. 32, 8. 10(11).: 55 V. c. 39, (12) Section 35 is further amended by adding thereto amended, sub-sectious 8 and 9 as follows: — Days of grace. (8) Where the money payable by way of premiums, dues or assessments, not being the initial pre- miums, dues or assessments, under any contract of life insurance w^hatsoever is in default, and the event upon the happening of which the insurance money becomes payable has not yet happened, any of the persons hereinafter men- tioned may within thirty days after the default, post by registered letter, or otherwise pay, deliver or tender to the company at its head office, or at its chief agency in Ontario, or to the company's collector or authorized agent the sum in default, and also a further sum by way of fine if the contract of insurance by express terms so requires, such fine however in no case to exceed the rate of five cents per week per r I c I- 00 3 . 1 • 1 ^ 1 1 ) . • - 1 s 1 1 1 i \ • f S • ■ 1 - " , , •' • 4 i ' . • ■ ( * - ^ •■ ! ' 1 % ' *■ ■ ■ I ■ ■ ■ ; ■ ■ i . - •' - ■' ! 1 ; • ' ' - . <- s ~ i ! ■ ■ '■ ■ • 1 26 I To fftc* 266 Limitation of actions. [518] 81,000 of iiiNUranco for each complete week i flapHi'd Hince the default, ami not more in any caHe tluin at the rate of twenty cents per !?1,000 for the whole period of default. On payment, deliv((ry or tender, as aforesaid by the iwHured, or by any of the heneHciaries inuler the contract, the contract HJiall be deeme i cr Division TV fiir. e.u ' , ^ "umng at the (;nd ofssv. c.:w. -1^1% ision 1 \ . the tollowinff words • " fVrf I'fino* . e »• 62 4.;^ c . * 'wiiia, vvercincate or evpmn. furthnr t on from reg.stry. ^.00: Hling of certiHcate of incoZa "'"™-"- t.on or any other separate document required In h s a1;