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Law No. 8, 1898.
For the Regulation of the Business of Insurance Companies in the
South African Republic. Whereas it is necessary and desirable to regulate by a Law the manner in which and the conditions on which Insurance Companies shall be allowed to carry on business in this State, it is hereby enacted as follows :
1. Every Insurance Company whose principal office or place of business is situated beyond the limits of this State, and every company established in this State, whether already established or carrying on business, or hereafter to be established and to begin business within this State, which is managed or represented by directors, a secretary, manager or agent, and which has carried on business before the coming into operation of this Law, or hereafter shall begin to carry on business within this State, such as Fire, Accident, or Life Insurance Company, if such a company, after the coming into force of this Law, shall continue or begin such business in this State, shall be bound to deposit, within three months after such continuation or beginning of such business, with the Treasurer-General of this State, securities, either in cash or other securities approved of by the Treasurer-General, Auditor-General and Registrar of Deeds, to an amount of £5,000 sterling for fire or accident insurance, or for both together, and of £10,000 sterling for life insurance, whether associated or not with fire or accident insurance or with both.
2. Every such company may, after proper notice to the Treasurer-General, Auditor-General and Registrar of Deeds, with the approval of the said officials, exchange any of the deposited securities for others of equal value or for cash, and such substituted securities shall be dealt with in every respect as though they had been deposited originally.
3. Every company which deposits the aforesaid sums in cash as security shall be entitled to receive from the Government interest at the rate of 3 per cent. per annum, on the sums deposited, payable at the end of each year.
4. The Treasurer-General shall give a proper receipt, in accordance with the forms hereunto attached, marked A and B, for the deposited securities mentioned in Art. 1.
5. Every such company shall be bound, before it shall be able to carry on business, to take out an annual licence of £20 sterling, ind no such licence shall be issued until proof has been given to the official charged with the issue of such licence, that the security mentioned in Art. 1 of this Law has been deposited.
6. Every such company shall be bound, before it shall be able to obtain such a licence, to deposit certified copies of its trust deed. with the exception of companies to be formed here under the already existing Laws, and shall further be bound to choose a “ domicilium citandi et executandi” in this State, and to give notice thereof in the Staatscourant.
7. Every Insurance Company as aforesaid shall, after each financial
year of such company, forward to the Treasurer-General, together with all the returns which may be required by this Law, a sworn return showing the total number of insurances in force, the total number of new insurances effected, with the premiums having reference thereto received during the year, and the policies which have lapsed during the said year, all having reference only to the business of the company carried on in this Republic, and shall further be bound to forward to the Treasurer-General a certified return showing the assets and liabilities of such company, together with copies of the balance sheet and revenue account for the rear, having reference to the entire business of the company, no matter where it is carried on.
8. Every company which does insurance business within this State shall, within three months after the coming into operation of this Law, or after starting its business, or when a change is made in its personnel, as the case may be, publish in the Staatscourant the name of its chief official, manager, secretary or agent in this State, and the place where the principal office of the company must be considered to be fixed, and where, moreover, the “ domicilium citandi et executandi” of such company shall be established.
9. Every such principal official, manager, secretary or agent, whose appointment as such has been published in the Staatscourant, may sue or be sued in the name of the company which he represents, and all notices, summonses or other legal proceedings shall be valid against such company if they are served on such principal official, manager, secretary, or agent, or are left at the principal office in the hands of any servant of the company there, or if, in the absence of such a person, they are attached to the front door of such principal office.
10. If any document which, under the provisions of this Law, is required to be deposited, is false in any important particular, the person who signed or delivered it shall be punished with a fine not exceeding £100, or imprisonment with or without hard labour for a period not exceeding six months.
11. Any company which neglects to deliver any returns required by this Law, for a period of three months or more, may, at the request of the State Attorney and after notice, be prevented by the High Court from carrying on business in this State, either for an indefinite time or for such period as the Court may deem fit to determine.
12. The Treasurer-General shall see, and it shall be his duty so to do, that every company falling under the operation of this Law properly complies with the provisions thereof, and he shall be bound to deliver annually to the Government a report setting out the particulars of the business of every
in accordance with the returns sent in under the Law.
13. All claims arising out of policies of life insurance issued in this State shall be paid, if such payment is desired, to the person in this State entitled to the insurance money, and the receipt of the
executor or other person entrusted with the administration of the estate in question shall be complete proof that such company has duly paid the amount of the policy.
14. The security mentioned in Art. 1 of this Law shall operate as a guarantee to the Government and the inhabitants of this State of the good faith of and the honest transaction of business by every such company, and such security may be taken in execution for any judgment of any competent Court against such company.
If an Insurance Company, as indicated in Art. 1 of this Law, desires to close its business within this State and to do no further business here, and has actually closed its place of business and has ceased to do business, it shall be entitled to get back the security mentioned in the said article, provided a sufficient portion thereof be left to satisfy all its obligations and debts due to persons within this State, and any probable expenses connected with such amounts due or to become due, everything to be determined by the TreasurerGeneral as he thinks fit. If payments are from time to time made to creditors and policy-holders within this State by the company the Treasurer-General shall be entitled to reduce and to return the deposited security proportionately, provided he takes care that sufficient security remains for the claims of the remaining creditors and policy-holders within the State. In carrying out this provision the Treasurer-General shall be entitled, before giving back the security or any part thereof, to demand affidavits from the officials and inspection of the books of the company, or such other proof as he may consider necessary.
15. No such company may include in any policy to be issued in this State any condition which may be in conflict with the provisions of the military or commando law, and such condition shall in no case be valid, and may not be pleaded in defence against a claim for payment of such policy if the person assured dies in the military or commando service.
16. If any agent, director, secretary, manager or representative of one of the herein-mentioned insurance companies contravenes or does not comply with one or more provisions of this Law, he shall be liable to a fine not exceeding £100 sterling, or to imprisonment, with or without hard labour, for a period not exceeding six months, or both together.
17. The Courts of Landdrosts and Mining Commissioners shall have jurisdiction over contraventions, with the exception of those mentioned in Art. 11.
18. Law No. 12, 1892, for the regulation of the business of Insurance Companies in the South African Republic, and also Law No. 4, 1896, amending Art. 7 of Law No. 12, 1892, are hereby repealed.
19. This Law shall come into operation immediately after publication in the Staatscourant.
RECEIPT FORM "A."
Received from the......
... through Mr....... ..the sum of...
..pounds sterling, being the security deposit mentioned in Art. 1 of Law 8, 1898, which amount the Government of the South African Republic hereby declares to have received from the......
.for safe keeping, and promises to pay back to the said Company at this office three months after written notice has been given by it to the Government of the South African Republic that it wishes to close its business in this State, and it has clearly proved to the satisfaction of the Government that it has no further current liabilities towards third parties resident within this State.
The interest of the amount aforesaid shall be 3 per cent., payable yearly by the Treasurer-General at his office, to the representative of the Insurance Company, on or before February 1st of each year.
The Insurance Company has the power, moreover, after giving three months' notice, to exchange this security deposit in cash for a security deposit in documents approved of by the Government, on receiving a receipt according to Form B, in accordance with the provisions contained in Art. 2 of this Law.
RECEIPT FORM “B."
Received from the...
..through Mr.. .the following documents, viz. :
.. being the security deposit mentioned in Art. 1 of Law 8, 1898, which documents the Government of the South African Republic hereby declares that it holds in safe custody for the said Insurance Company, and which it will return to the latter in exchange for other documents of equal value to be approved of by the Government or for cash, in case the Insur