Full resolution (JPEG) - On this page / på denna sida - Second part - XIV. Credit and Insurance Establishments - 5. Insurance. By J. Leffler, Ph. D., Stockholm
<< prev. page << föreg. sida << >> nästa sida >> next page >>
Below is the raw OCR text
from the above scanned image.
Do you see an error? Proofread the page now!
Här nedan syns maskintolkade texten från faksimilbilden ovan.
Ser du något fel? Korrekturläs sidan nu!
This page has never been proofread. / Denna sida har aldrig korrekturlästs.
1042 XIV. CREDIT AND INSURANCE ESTABLISHMENTS OF SWEDEN.
director and two members, with a secretary versed in jurisprudence, a registrar,
and other assistants. For covering the expenses of the Inspection each insurance
company shall contribute with, at the most, a fifth per cent of the company’»
entire income of fees for the previous calendar year for insurances here in the
kingdom. The Insurance inspection which shall, among other things, issue an
annual report concerning insurance business in the kingdom, and has verv
extensive powers with relation to the supervision of the accounts and management
of the home companies, shall also manage the estate in the special
administration which ensues for the preservation of the rights of the policy-holders, in
the event of life insurance company having come under liquidation or in state
of bankruptcy, for which case detailed provisions are introduced in the law.
If company carrying on life insurance business desire to transfer its life
insurance stock or certain portion thereof, also when two or more companies
desire to combine to form a new company with the object of taking over their
obligations in consequence of life insurances, sanction shall be applied for at
the Insurance inspection, which application, however, is not accepted for
consideration if, within a certain time after announcement has been inserted in
public journal, sanction has been opposed by at least one fifth of the
policyholders, the policies of whom are intended to be transferred to an eventual new
company. Different from the corresponding Royal ordinance of October 22, 1886,
the new law contains specified provisions relating to responsibility for violating
its provisions. The penalty for various offences varies between fines of 5 to
5,000 kronor, when punishment for the offence is not stated in the common
penal code.
Tho law cannot be applied to: — a) institution established by the State;
b) institution which only grants insurance against loss on money claims or other
values; c) »interest and capital insurance institution»; d) mutual insurance
company for insuring property in country districts where the field of activity is less
than a hundred (härad); e) sick and burial fund or other such mutual help
society whose activity has not for its object the carrying on of an insurance
business as a commercial undertaking. And in the question of reinsurance the
Government may admit of certain deviations.
The law of July 24, 1903, mentioned above, relating to foreign insurance
institutions differs slightly from the corresponding Royal ordinance of October
22, 1886. The following are, however, important additions: — Among the
documents which shall accompany the application for permission from the Insurance
inspection to carry on an insurance business in the kingdom, is also a
testimony to the fact that the institution, in the manner and under the conditions
acknowledged by tho Insurance inspection, has deposited with the Bank of
Sweden, in money or securities, a sum of 100,000 kronor for life (including
life-annnity and endowment) insurance, the same amount for fire insurance or
for marine insurance, and 50,000 kronor for every other kind of insurance.
Amounts thus deposited may only be employed for payment of claims in
consequence of insurance agreements belonging to the business of the institution in
the kingdom, as well as fines, fees, and compensation which on account of the
same business may be imposed upon a general agent or the institution; and the
right of carrying on business in the kingdom is forfeited, if upon the reduction
of the amount the discrepancy be not filled within four weeks after intimation
to that effect has been received from the Insurance inspection. It is expressly
forbidden to foreign company directly or indirectly to state itself as having, in
consequence of said deposits, placed reliable security for its Swedish jwlicy-holders
or in any way to give to understand that it is under the control of the Swedish
State as to its entire activity. Permission to carry on business shall be denied
if the principles for the activity of the institution be ascertained to be based on
<< prev. page << föreg. sida << >> nästa sida >> next page >>
