Mr. HETD.

Yes, and if they increase the policy-holders in Canada they would have to keep on increasing the reserve. The judgment referred to was in connection with a peculiar policy. It was taken out for fifteen years under the ordinary conditions, but this gentleman had a letter from one of the directors of the company stating that his premiums would not increase, and the court therefore held that this was a special contract and that the extra premiums must be refunded with 4 per cent. If we have in Canada any policy-holders who have a similar letter from one of the directors, I assume they would be in the same position. But even if there were a thousand of such it would not affect the money in the hands of the government. If the annual dues are paid this company has to give to our government such a reserve as will enable our government to reinsure them in another company. I assume that the Insurance Department of the government will see that the reserve required by law is kept intact, and if the government allow the reserve to go under the safety limit the government is responsible.

Mr. HEYD.

What ?

Mr. HEYD.

You can't wind them up.

Mr. HEYD.

But does not the hon. gentleman notice that, while it reduces its policy from $5,000 to $1,425, if he accepts the option, yet, nothing is forced upon him, and he has the right to remain as he is with his policy of $5,000. Or, he can keep his policy at $5,000 and pay on the level premium plan, and while the premium under this Bill, age 52 would be about $400 a year, it wrould be less than the man is paying now probably. According to the hon. member for Grey (Air. Sproule) he would be paying about $500 per year. Is it not a relief for a man if he gets his insurance for less money ?

Mr. HEYD.

There are 3,600 policy-holders in this class in Canada, representing $8,000,000.