Insolvent Insurance Co's.

Chap. 21.—Provides for the winding up of Insolvent Insurance Co's. applying the Insolvent Act of 1875 to insolvent Fire & Marine Insurance Cos. The judge or pro-thonotary of a Superior or County Court, is judge having primary jurisdiction. Proceedings cannot be had till after an undisputed claim or a final Judgment on a disputed claim has remained unpaid for 60 days. And notice must be served on the M. of F. under 38 V., c. 20, s 10. The judge may adjourn proceedings for six mos., and no assignment can meantime be made without his consent. He may order a preliminary enquiry under the 147th section of the Insolvent Act, by a person other than an Official Assignee, to be named on application of the parties. And he may extend the time of inquiry to 30 days. The Co. can issue no policy after issue of writ, or assignment. Another Ins. Co. may be named as receiver or creditor's assignee, and act through an officer approved by the judge. Notice alter first call of creditors' meeting need only be given in the Canada Gazette and two papers at place of head office. Appeals under is. 128 may be had from all orders. Judgments and decisions. Assignees are to have powers of receivers under is. 117, and may be given any others which judge may legally grant. Holders of policies may claim for all losses accrued within six mos. after assignment or writ, if they do not meantime re-insure without leave of the Co. In case they do or no loss accrue in the six mos., they are only entitled to claim a return of the proportion of the premium for the unexpired period. If either party cancel the contract in accordance with its terms the claim is on the same basis as if insolvency had not supervened. The moneys deposited with the R. G. are to be applied in satisfaction of claims,—the assignee, court and Judge having the powers for that purpose conferred by the Insurance Act, the claims being limited as above. Claims accrued in the six mos. rank on the deposits with judgments obtained and claims previously accrued. Assignees under this Act supersede those appointed after 5th April last under Insurance Act. The Assignee is further to make up a list of claims from the books of the Co. and collect them for dividends,—the collection, however, being open to disputes; and further claims may be filed. The Assignee may, pursuant to a resolution of creditors, re-insure the unaccrued claims with another co. certified in good standing by the Superintendent, using the assets of the Co. for the purpose. The remaining assets may be retained as security for claims accruing till the court orders their delivery to the Co. The Assignee, if the co. be licensed, reports each six mos. or oftener, if required, to the Superintendent.