1 Extension of purposes for which policies may be issued. C1
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F2Subject to the provisions of sections one and two of the M1Industrial Assurance and Friendly Societies Act 1948F3as amended by the M2Industrial Assurance and Friendly Societies Act 1948 (Amendment) Act 1958 amongst the purposes for which . . . F4 industrial assurance companies may issue policies of assurance, there shall be included insuring money to be paid to the . . . F4 person assured on the duration for a specified period of the life of his parent, child, grand-parent, grandchild, brother or sister either with or without provision for the payment of money in the event of the death of any such person before the expiration of the period:
Provided that no such . . . F4 company shall insure or pay on the death of any person under such a policy as aforesaid, issued after the commencement of this Act, any sum of money exceeding a reasonable amount for funeral expenses.
2
3
. . . . . F5
2 Provisions as to repayment of premiums.
For the purpose of calculating the maximum sum which may be insured or paid under the last foregoing section or under section sixty-two of the M3Friendly Societies Act 1896, no account shall be taken of any repayment of the whole or any part of the premiums paid in respect of any endowment policy, and sections sixty-three to sixty-six of that Act and subsection (2) of section four of the M4Industrial Assurance Act 1923 shall not apply as respects any such repayment.
3 Rights of owners of certain endowment policies.
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Where under any policy to which this section applies not less than one year’s premiums have been paid, the owner of the policy shall be entitled at any time within one year from the date on which the last premium was paid or, if no premium has been paid since the date of the commencement of this Act, within one year from that date, to surrender the policy and to claim either—
a
a free paid-up policy in conformity with the rules contained in the Schedule to this Act; or
b
payment of a surrender value equal to ninety per cent. of the value of the sum or sums payable under such a free paid-up policy as aforesaid, calculated in accordance with the last four rules contained in the Fourth Schedule to the Industrial Assurance Act 1923,
. . . . . F6
2
This section applies to any policy issued, or deemed under this Act to have been issued, in accordance with the provisions of section one of this Act and to any other endowment policy issued on the life of a child under ten years of age, being in either case a policy in force at some time after the thirty-first day of December, nineteen hundred and twenty-three.
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. . . . . F7 every premium receipt book in respect of such a policy, being a. . . . . F7 book issued after the thirtieth day of September, nineteen hundred and twenty-nine, by. . . . . F8 an industrial assurance company, shall set out the provisions of this section, and of the Schedule to this Act, printed in distinctive type, or, if the Industrial Assurance Commissioner consents, a statement in lieu thereof which, in the opinion of the Commissioner, sufficiently sets forth the effect of those provisions;. . . . . F8
4
. . . . . F9
5
. . . . . F10
4 Retrospective operation of Act.
Any endowment policy issued before the first day of January, nineteen hundred and twenty-four, which would have been in force on that date if this Act had been in operation on and from the date on which the policy was issued shall be deemed for the purposes of this Act to have been in force on the said first day of January and, in the case of a policy of the description mentioned in section one of this Act, to have been issued in accordance with the provisions of that section, and as respects any endowment policy in force on, or issued since, that date, this Act shall be deemed to have been in operation on and from the date on which the policy was issued.
5 Short title, citation, construction and extent.
1
2
For the purposes of this Act—
“Policy” includes any contract of assurance and the date of the making of any such contract shall be deemed to be the date of the issue of a policy; and
“Endowment policy” means a policy issued or deemed under this Act to have been issued in accordance with the provisions of section one of this Act, or a policy insuring money to be paid on the duration for a specified period of the life of the member or person assured, either with or without provision for the payment of money in the event of the death of that person before the expiration of the period F12and either with or without provision for the payment of money before the expiration of that period and during the life of that person in the event of the marriage of that person or otherwise.
3
References in this Act . . . F11 to the M8Industrial Assurance Act 1923, shall be construed as references to those Acts as amended or applied by any subsequent enactment, and this Act in its application to . . . F11 industrial assurance companies shall be construed as one with the M9Industrial Assurance Acts 1923 and M101926, . . . F11
4
This Act shall extend to Great Britain, the Isle of Man and the Channel Islands.
C5SCHEDULE Rules as to Free Paid-up Policies
Sch. modified by S.I. 1977/1143, Sch. 3 paras. 1–3; 1977/1144, Sch. 3 paras. 3–5; 1980/1947, Sch. paras. 1, 2 and by 1980/1948, Sch. paras. 3, 4
1
The free paid-up policy shall assure payment on the events on which the sums assured by the surrendered policy were payable, of sums bearing the same proportion to those sums (including any addition by way of bonus) as the amount of the premiums actually paid under the surrendered policy bears to the amount of the premiums which would have been payable under the surrendered policy had the full number of premiums become payable thereunder:
Provided that, where any sum has been paid by the society or company under the surrendered policy, before the surrender thereof, the sums assured by the free paid-up policy shall be computed on such basis as may be approved by the Industrial Assurance Commissioner.
2
Where the surrendered policy provided for payment of a sum by way of return of premium on any event, the free paid-up policy shall provide that on that event such part of the premiums actually paid under the surrendered policy shall be repaid as would have been repayable on that event if the surrendered policy had remained in force.
Act repealed (1.1.1994) by 1992 c. 40, s. 120(2), Sch. 22 Pt.I (with ss. 7(5), 93(4)); S.I. 1993/2213, art. 2(1), Sch. 6,Appendix.