GIPE-PUNE-OIIOI2 - DSpace@GIPE

8 PRINCIPLES OF CONTROL OVER
consists of. two parts: 7
(i) GrundkOJUtion, basic caution or
fixed deposit, of the minimum value of 500,000 Rm.; {ii}
Bewegliche. Kaution~ elastic or mobile deposit, which is 50
pet cent of·. the gross premium ~ncome of the company
derived from its direct business in Germany. The two
caution moneys ·together constitute the total security . For
life 'insurance. the security is a fixed deposit consisting in
10 per cent of the premium reserve. . On the question of
these deposits, again, there is hardly any uniformity.
Each company is treated by the A mt on 'its
own merits, and n.o company is bound by law to announce
publicly the exact amount of deposits demanded by the'
Amt. -
The A mt has the right to nominate the auditor who
is to examine tbe book-keeping, accounts, balances. etc.,.
(sec. 58). This right can be exercised in ·regard to the
foreign companies also, should the Ami so desire (sec.
110).
The "premium reserye fund", the most important
among the several funds of the'life offices from the standpoint
of the insured, is to be collected and booked by all
companies, home and foreign, according to the officially
standardized system (sec. 110, 65, 11). It has to be
administered separately from all other funds and must
be conserved at the domicile itself, i.e. within the boundaries
of Germany. The A mi must· be informed as to
h~w this fund is being preserved and a~ministered and if
necessary may permit other alld more appropriate methods
(see. 11O, 66). The different items of the pre~ium reserve
are to be shown in a special register individually in details.
7 Konige.Petersen. 179·180 ..