Licence required Application Issue Form of licence Term of licence Record of licences Suspension and cancellation of licences Notice of suspension or cancellation Foreign do certain acts before obtaining licence to carry on the business of insurance against loss or damage by hail, tornadoes, cyclones or hurricanes in the Territories whether incorporated under this Ordinance or not. 47. No company shall carry on business unless duly licensed as herein provided. (2) The first application for such licence shall be accompanied by a certified copy of all bylaws and regulations of the company then in force. (3) Such licence shall be issued or renewed by the Territorial secretary upon his being satisfied that the company has complied with the requirements of this Ordinance. (4) The licence shall be in such form as may be from time to time determined by the Lieutenant Governor in Council and shall specify the business to be carried or by the company. (5) Such licence shall expire on the last day of February in each year but shall be renewable from year to year. (6) A record of the licences as they are issued or renewed shall be kept in the office of the Territorial secretary and notification thereof shall be given in the official gazette. (7) Such licence may at any time be suspended or cancelled by the Lieutenant Governor in Council upon proof that such licence has been obtained by fraud or mistake or that the company has wilfully contravened any of the provisions of this Ordinance or that the assets of the company are insufficient to justify its continuation of business or that the company is unsafe for the public to effect insurance with. (8) Notice of such suspension or cancellation shall be published in the official gazette and shall be sent by registered letter to the head office of the company in the Territories or to the attorney appointed under the next following section hereof; and from and after such notice the company shall withdraw every offer to undertake contracts and shall absolutely cease to undertake contracts but without prejudice to any liability actually incurred by such company which may be enforced as if such suspension or cancellation had not taken place. 48. No company which is not incorporated under the companies to provisions of this or some other Ordinance of the Territories shall receive a first licence until it has deposited in the office of the Territorial secretary a true copy of its Act, charter or other instrument of incorporation verified in a manner which shall be satisfactory to the Territorial secretary, together with a duly executed power of attorney empowering some person therein named and residing in the Territories to accept service of process and to receive all notices and for the purposes aforesaid to do all acts and to execute all deeds and other instruments relating to the matters within the scope of the power of attorney; and such company may from time to time by a new or other power of attorney executed and deposited as aforesaid appoint another attorney within the Territories for the purposes aforesaid to replace the attorney formerly appointed. 49. It shall be the duty of the company to have at least Annual audit once in every year a bona fide and business-like audit of its books of record and account by at least two competent auditors, one of whom shall be appointed by the directors and the other by the members at the annual meeting. statement to to members (2) A summary statement showing as the result of such Summary audit or audits the company's actual assets and liabilities on be furnished the preceding thirty-first day of December and receipts and expenditure for the year ending on the said date, shall be furnished annually not less than fifteen days before the next annual meeting to each member of the company and a copy of the same signed and certified by the auditors shall be forwarded and to to and filed in the office of the Territorial secretary with the secretary statement in the following section mentioned. RETURNS. Territorial to Territorial 50. It shall be the duty of the company annually on the Annual return first day of January or within six weeks thereafter to prepare secretary and deposit in the office of the Territorial secretary a statement verified by the statutory declaration of two of the officers or directors thereof showing the condition of such company on the thirty-first day of December then next What returns preceding, exhibiting the following facts and items in the shall contain following forms: First, the assets of the company, specifying (a) The value of land; (b) The amount of cash on hand and deposited in banks. to the credit of the company, naming the banks and amounts in each; () The amount of cash in company's office and in agents' hands respectively; (d) The amount of the loans or investments and the nature of the securities held therefor, in detail, and what if any payment in arrears thereon; (e) The amount of assessment on premium notes or undertakings on hand ; (f) The amount still payable upon premium notes or undertakings on hand; (g) Other amounts due the company ; Secondly, the liabilities of the company, specifying (a) The amount of losses due and yet unpaid ; (b) The amount of claims for losses resisted; (1) Assets (2) Liabilities (3) Income of previous year (4) Expenditure of previous year Companies mentioned in 9.48 (c) The amount of losses incurred during the year, including claims not adjusted; (d) The amount payable for money borrowed and security given and interest payable; (e) The amount of other existing claims against the company; Thirdly, the income of the company for the preceding year, specifying (a) The amount of cash received on premium notes; (d) The amount of income from all other sources; Fourthly, the expenditure during the preceding year, specifying (a) The amount of losses during the year, stating how much of the same occurred prior and how much subsequent to the date of the preceding statement and the amount at which the losses which occurred prior to such preceding statement were estimated therein; (b) The amount of expenses during the year; (c) The amount of taxes; (d) The amount of all other payments and expenditures under their appropriate heads. (2) In the case of companies mentioned in section 48 hereof the following particulars shall also be furnished: (a) The corporate name of the company; (b) The manner in which the company is incorporated; (d) The place or places where or from which the under- (e) The name, residence and post office address of the president, the secretary and the treasurer of the company; (f) The name, residence and post office address of each of the directors of the company; (g) The date upon which the last annual meeting of the company was held; (h) The amount of the capital of the company and the (i) The number of shares subscribed for and allotted; (k) The amount issued subject to call; (1) The number of calls made on each share; (m) The total amount of calls received; (n) The total amount of calls unpaid; (0) The total amount of shares forfeited; (p) The total amount of shares which have never been allotted or subscribed for; (9) The total amount for which shareholders of the company are liable in respect of the unpaid stock held by them; (r) In a concise form such further information respecting the affairs of the company as the directors may consider expedient; (s) Particulars of all bylaws and regulations and all amendments or repeal of bylaws or regulations made during the then preceding year. inquiries of 51. Any company shall when required make prompt and Companies explicit answer in reply to any inquiries in relation to its to reply to transactions which may be required by the Lieutenant Lieutenant Governor in Council. Governor in neglect of duty 32. Any company which fails to make and deposit such Penalty for statements so verified or to reply to such inquiry or to do any other act by this Ordinance required, and its directors shall be subject severally for each offence to a penalty of fifty dollars and the licence of the company shall be liable to suspension or cancellation. The Governor in appoint examine into companies EXAMINATION INTO AFFAIRS-RECEIVER-DISSOLUTION. 53. The Lieutenant Governor in Council whenever he shall deem it expedient may appoint any one or more qualified Lieutenant persons to examine into the affairs of the company; and it Council may shall be the duty of the officers or agents of any such company persons to to cause their books to be opened for inspection by the person the affairs of or persons appointed and otherwise facilitate such examination; hail insurance and for that purpose such person or persons shall have power to examine under oath such officers and agents; and whenever it shall appear from such examination that the assets and financial position of such company are such as not to justify the continuance in business of such company the Lieutenant Governor in Council may suspend its licence; and the attorney general may apply in a summary manner on motion of the supre me court to any judge thereof for an order requiring such company to show cause why the business of the company should not be closed; and the court or judge may thereupon proceed to hear the allegations and proofs of the respective parties; and in case it shall appear to the satisfaction of the court or judge that the assets and funds of the company are wind up companies are in an Proceedings to not sufficient as aforesaid or that the interests of the public so require the court or judge may decree a dissolution of the whose affairs company's affairs and may appoint a receiver to take possession unsatisfactory of, collect and get in the assets and effects of the said company and may order and direct that the affairs of the said company shall be wound up under the order and direction of the court and do all other matters and things necessary or requisite in the premises. condition Powers and rights of the receiver appointed by the court Powers of 54. The receiver shall have full power under the authority of the court or any judge appointing him to make all such assessments on the premium notes or undertakings held by the said company as may be necessary to pay its debts and claims against it as the directors would have authority to make; and the notice of assessment may be given in such manner as hereinbefore provided; and the said receiver shall have the like rights and remedies upon and in consequence of the nonpayment of such assessments as are given to the company or the directors thereof; and such receiver may receive a surrender of any policy of the said company or cancel any policy in all cases where the directors are authorised so to do. 55. The court or judge by whom such receiver is appointed court or judge may also upon his application examine (by a reference or otherwise as the court or judge may deem proper) into the proceedings and acts of the said company; and if it shall appear upon such examination that the directors or officers of such company or any of them have in any manner misapplied or improperly disposed of the funds, property or effects of such company it shall be lawful for the court or judge to order and decree that such persons as may be found guilty of such misapplication or improper disposition shall pay the amount thereof to such receiver and to enforce such order or decree by execution or attachment or by such process of the court as shall seem expedient. Only licensed company to transact business of hail insurance Penalty for insuring without licence 56. No insurance against loss or damage by hail, tornadoes, cyclones or hurricanes shall be transacted or undertaken in the Territories except by a company duly licensed as herein provided. (2) Any person who undertakes or offers or attempts to undertake any such insurance either in his own name or on his own behalf or in the name or on the behalf of any other person or persons, society, association or company other than a company duly licenced under this Ordinance shall be guilty of an offence and shall be subject to a penalty of twenty dollars for each such offence. |