Jan. 29.] THE NEW ZEALAND GAZETTE. 133

To make rules generally for the purpose of carrying the Act into effect, and to impose penalties not exceeding twenty pounds for breach of such rules;

To make rules respecting the loan of moneys under the Act on the security of the surrender value of policies, and for the effectual recovery of principal and interest accruing on such loans:

And whereas, by an Order in Council dated the sixth day of September, one thousand eight hundred and eighty-seven, certain of the holders of policies issued by the Government Insurance Commissioner were permitted to join together for the purpose of creating a Tontine Savings Fund, and certain rules were prescribed with respect to such Fund:

And whereas the date up to which policyholders can be permitted to join such Tontine Savings Fund was fixed in the said rules as the thirty-first day of December, one thousand eight hundred and ninety, and it is expedient to create a new Tontine Savings Fund which shall be open to holders of policies issued subsequent to the date of the publication hereof:

Now, therefore, His Excellency the Governor of the Colony of New Zealand, in exercise and in pursuance of the powers and authorities vested in him by the said Act and “The Government Insurance and Annuities Act, 1874,” and of all other powers and authorities in this behalf vested in him, and by and with the advice and consent of the Executive Council of the said colony, doth hereby make and prescribe the rules set forth hereunder; and doth hereby declare that this present Order in Council shall take effect as from the date of the publication thereof in the New Zealand Gazette.

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RULES.

1. In these rules, and in all policies or instruments issued or made thereunder, if not inconsistent with the context,—

“Commissioner” means the Government Insurance Commissioner holding office for the time being:

“Policy” means an endowment-insurance policy, the sum assured by which is payable at a certain date, or upon the death of the person whose life is insured if it happen before such date; or a whole life-insurance policy, the sum assured by which is payable upon the death of the person whose life is insured whenever that event may occur:

“Assurance Fund” means the amount of funds as shown by the revenue account of the department:

“Premium” means the periodical or other payment for any policy:

“Tontine Savings Fund No. 2” means the Tontine Savings Fund created by these regulations:

“Tontine Savings Fund No. 2 policy” means a policy the holder of which is permitted to join the Tontine Class No. 2:

“Tontine Class No. 2” means the whole of the policyholders who are permitted to join together to participate in the Tontine Savings Fund No. 2 as provided in these regulations:

“Tontine period” means the period extending from the 29th day of January, 1891, to the 31st day of December, 1910, both days inclusive.

2. The amount of the Tontine Savings Fund No. 2 shall be invested in the same manner as other funds of the Government Insurance Department, and shall receive credit for interest on its accumulations proportionately to that made on the whole of the funds of the department.

3. The period of the Tontine Savings Fund No. 2 shall be completed on the 31st December, 1910.

4. Any policy which may be taken out after the date on which this present Order in Council shall take effect, and on or before the 31st day of December, 1900, may be placed in the Tontine Class No. 2: Provided—

(a.) That application to join the Tontine Class No. 2 be made in the form prescribed in the First Schedule hereto at the same time as the proposal for insurance is made; and provided further that the Commissioner indorses the policy (if issued) in the manner and form prescribed in the Second Schedule hereto:

(b.) That no endowment-insurance policy the date of maturity of which will occur on or before the 31st day of December, 1910, may be placed in the Tontine Class No. 2.

5. No Tontine Savings Fund No. 2 policyholder shall be allowed during the tontine period to surrender for cash any bonus which may have been allocated in respect of the policy.

6. In the event of a Tontine Savings Fund No. 2 policyholder desiring to effect a loan from the Commissioner on such policy during the tontine period, he shall not be allowed to borrow on the security of any bonus allocated in respect of such policy.

7. In the event of the termination of a Tontine Savings Fund No. 2 policy by death during the tontine period, and while it is in full force, any reversionary bonus which may have accrued shall be forfeited, and be transferred from the Assurance Fund to the Tontine Savings Fund No. 2. The executors, administrators, or assigns of the deceased insured shall receive the full sum assured; but such policy shall not participate in the Tontine Savings Fund No. 2.

8. In the event of a Tontine Savings Fund No. 2 policy being surrendered, either for cash or for any other purpose whatsoever, or becoming lapsed and void during the tontine period, the cash value of any reversionary bonus which may have accrued shall be forfeited, and shall be transferred from the Assurance Fund to the Tontine Savings Fund No. 2, and such policy shall not participate in the Tontine Savings Fund No. 2.

9. In the event of a Tontine Savings Fund No. 2 policy which has acquired a surrender value becoming overdue during the tontine period, the surrender value, which shall be applied to the payment of overdue premiums and interest thereon, and other charges (if any) on such policy, shall not include the surrender value of any reversionary bonus which may have accrued in respect of such policy; and should such policy become lapsed and void on or before the 31st December, 1910, the cash value of any reversionary bonus which may have accrued in respect of such policy shall be forfeited, and shall be transferred from the Assurance Fund to the Tontine Savings Fund No. 2, and such policy shall not participate in the Tontine Savings Fund No. 2.

10. If at the 31st December, 1910, the premiums on a Tontine Savings Fund No. 2 policy shall be overdue, and the surrender value shall have become exhausted by the amount of the premiums overdue, and interest thereon, and other charges (if any) debited against such surrender value, but the year during which the policy may be revived (subject to proof of health to the satisfaction of the Commissioner, and to the payment of the arrears of premiums and interest thereon) has not expired, the cash surrender value of any reversionary bonus which may have accrued in respect of such policy during the tontine period shall be forfeited, and shall be placed in the Tontine Savings Fund No. 2 in the same manner as if the policy had lapsed, and such policy shall not participate in the Tontine Savings Fund No. 2, nor in any bonus allocated in respect of the tontine period.

11. At the expiry of the tontine period policyholders participating in the tontine distribution, in addition to receiving their shares of the Tontine Savings Fund No. 2, shall have full control of the bonuses allocated to them during the time they were included in the Tontine Class No. 2.

12. The whole of the Tontine Savings Fund No. 2 shall, after the termination of the tontine period, be divided amongst the surviving Tontine Savings Fund No. 2 policyholders whose policies shall be in full force on the 1st January, 1911 (either by reason of the premiums not being in arrear or by the policy being kept alive out of surrender value as aforesaid), according to the method to be determined by an actuary or actuaries to be appointed by His Excellency the Governor of New Zealand.

13. The shares of profit being determined as aforesaid, each Tontine Savings Fund No. 2 policyholder will be allowed the following six options, on giving notice of his intention three months previous to the expiration of the tontine period, viz.:—

(a.) To terminate his assurance by receiving in cash the surrender value of his policy, and the value of his bonuses, together with his share of the Tontine Savings Fund No. 2;

(b.) To surrender his interest for a paid-up policy of such amount as the total cash receivable under option (a) will purchase;

(c.) To withdraw in cash the value of his bonuses and share of the Tontine Savings Fund No. 2, and continue the original policy by payment of premiums at original rate:

(d.) To continue the original policy, and convert the sum receivable in cash under the last preceding option into an annuity for the remaining currency of the assurance;

(e.) To terminate the assurance and convert the whole of the cash receivable under option (a) into an annuity for life;

(f.) To continue the original policy with its accrued bonuses as reversionary additions, and apply share of Tontine Savings Fund No. 2 to the purchase of additional assurance without additional premium.

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FIRST SCHEDULE.

I, A.B., of __, hereby request the Government Insurance Commissioner to include in the Tontine Class No. 2 of the Government Life Insurance Department the policy issued in respect of a proposal for insurance made by me to the said Commissioner this day; and I do hereby agree that the said policy, if issued, shall be subject to the rules and con-