This clause has reference to the question of license. Before an insurance company can do business, it must deposit with the government $50,000. That is the first thing. Then it must keep up its reserves. There is $152,000 in the hands of the government for the benefit of these policy-holders. The alternatives which the policy-holders may select are as follows :
Those who accept proposition one, receive so much paid up insurance.
Those who accept proposition two, receive a certain reduction in the rate of premium.
Those who refuse either and do not ask for either of these two propositions at the end of four months will get a policy paid up for the amount of their interest in this $152,000.
The money having been divided among the policy-holders in that way is in the hands of the government and becomes a reserve that must be maintained and kept there for the benefit of these policy-holders, and I assume that when a man dies his share of that reserve is paid to his heirs. In that way only can this money be got from the government. I have endeavoured to explain this thing and we have on the floor of the House to-day the representative of the Insurance Department. His opinion is official, and I may say that I got iyy information from Mr. Fitzgerald who sqid that he has the money and will not give up a cent.
Topic: EFFECT OF THE BILL.