August 11, 1917 (12th Parliament, 7th Session)


Charles Joseph Doherty (Minister of Justice and Attorney General of Canada)

Conservative (1867-1942)


We are not introducing these provisions now, because they have been the law since 1910, and are applicable now to all companies under the jurisdiction of this Dominion Parliament. Moreover, may I say this, as a reason for differentiating between selling insurance and selling sugar and pork and other things of that kind? The insurance business, of course, has to be carried on in such a way that the premium charged shall provide the means to make up the losses; perhaps that is especially true with regard to life . insurance. Now, when you let one man contribute for the same risk less than another to the creation of that general fund that is to pay all the losses, you necessarily make the cost to that other man or men larger than it otherwise might be. The fact that you have given to one man insurance at a price less than it is necessary to charge in order that according to the actuarial calculations the business may be carried on so as to sustain itself, makes it necessary in order to make up that deficiency to Charge some other man something extra. It creates an absolute inequality between people, who-this is the case referred to in the section-are absolutely in the same class of risk, and enables one man to get covered at a price lees than be ought to
be charged on a business basis, inevitably necessitating that some other man be charged more than he ought to be charged.

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