asked the Minister for Industry and Commerce if he can state (a) what sum was transferred by the transferring insurance companies to the Irish Assurance Company and how such sum was arrived at; (b) whether this sum was taken on an actuarial valuation of the existing membership at the ages on the books, and (c) whether in view of the fact that allegations have been made that many of the members were insured at much younger ages than they actually were, thus necessitating the transfer of a sum much larger than that alleged to have been transferred, any allowance was made to meet this additional liability caused by incorrect ages.
Ceisteanna—Questions. Oral Answers. - Assurance Arrangements.
Transfers of funds by participating companies and adopting companies, pursuant to the Insurance (Amendment) Act, 1938, have been or will be made, not to the Irish Assurance Company, Limited, but to the Industrial and Life Assurance Amalgamation Company, Limited. I am not in a position to say what the aggregate transfers of cash have been or will be. The aggregate transfer of assets in respect of each participating and adopting company must, however, be determined in accordance with the basis of valuation laid down in the agreement for transfer; this basis of valuation is identical for all transfering companies and will be found set out in the agreement scheduled to the Insurance (Amendment) Act, 1938. It provides for the transfer to the Industrial and Life Assurance Amalgamation Company, Limited, of assets sufficient to meet the entire liability on foot of the policies transferred, together with the liability for future bonuses, if any.
Should it be found that in respect of any of the policies transferred, the ages of the assured were incorrectly stated it would appear to be open to the Industrial and Life Assurance Amalgamation Company, Limited, to adjust the terms of the policies so as to make such terms conform to the terms applicable to the true ages, thereby providing against the contingency referred to in the latter part of the Deputy's question.
asked the Minister for Industry and Commerce whether in view of the fact that a very considerable amount of money, stated to be in the neighbourhood of £3,000,000, was handed over in cash to the new Irish Assurance Company, and taking into account the deplorable conditions under which many working class families in Dublin are forced to live, he will take the necessary steps to provide that this money be lent to the Dublin Corporation to assist that body further in the effective prosecution of its housing policy.
It is to the Industrial and Life Assurance Amalgamation Company Limited and not to the Irish Assurance Company Limited, that any transfers of funds under the Amalgamation Agreements have been or will be made. While I am entirely in sympathy with any measures designed to improve the housing situation, I have no powers to direct how the funds transferred to the company shall be used. The investment of the company's funds is a matter for the judgment and discretion of the board of directors who have been entrusted with the management of the company's affairs.
asked the Minister for Industry and Commerce if he will state (a) the duration of the period for which the directors of the Irish Assurance Company are appointed, and (b) the yearly salary of each director.
In accordance with the provisions of the Insurance (Amendment) Act, 1938, and the agreement scheduled thereto, it is provided in the Articles of Association of the Irish Assurance Company, Ltd., that the first directors of the company shall be appointed by the Minister for Industry and Commerce. The first directors were so appointed on the 20th March, 1939, the remuneration of the first chairman (who is now deceased) being fixed at £300 a year and of each of the other first directors (except the managing director) at £200 a year. I understand one of the directors does not draw his fees. The duration of these appointments is governed by the company's Articles of Association, which provides that the first directors shall retire at the first ordinary general meeting to be held in the year 1940, and that a retiring director shall be eligible for re-election. The position of the managing director is dealt with in my answer to a separate question by the Deputy.
asked the Minister for Industry and Commerce if he will state (a) the duration of period for which the managing director of the Irish Assurance Company is appointed; (b) the amount of his salary and yearly expenses allowance.
The managing director of the Irish Assurance Company, Ltd., was appointed on the 3rd April, 1939, for the period ending on the 16th November, 1944. He also holds the office of managing director of the Industrial and Life Assurance Amalgamation Company, Ltd., and it has been provided that while he holds this post he shall not be entitled to receive any remuneration or recoupment of expenses as managing director of the Irish Assurance Company, Limited. He is, however, entitled to receive the directors' fee of £200 per annum.