GIPE-PUNE-OIIOI2 - DSpace@GIPE

10 'PRINCIPLES OF CONlROL OVER
to meet. the clairps of the insured of anyone section from
the liquid assets of some other section .
. All 'these regulations have reference to the premium
reserve fund '~nly and they are considered by the GerJ;Ilan
Government to be sufficient to protect ~he interests of the
citizens who insure with foreign companies (sec. 110,
56~6:4, 65~69). Indeed, foreign companies are on exactly
the same footing as the indigenous. It "is interesting to
observe that in German law, contrary to the laws in certain
other countries, there is no regulation to the effect that the
premium reserve fund or any part of it must be invested in
home Government securities .
. The crucial consideration in the eye of German
insurance legislation is embodied in the item that .. der
Deckungsstock luer diese Versicherungen ist nach
naeherer Bestimmung des Reichsaulsichtsamts so
3icherzustellen dass nur mit seiner Genehmigung darueber
:oerfuegt werden kann" (sec. 110). This is the most
fundamental law in regard not only to the investments of
the premium reserve but in regard to all other investments
as well. The reserves for all risks in connection with life
as well as accident a~d liability insurance are to
he secured in such a manner that they cannot
be disposed of by the companies themselves without'
the previous sanction of ,the Amt {sec. 11O}.1I No
matter in what manner or what country the invest~
ments. are made, foreign companies· doing business
in G~rmany are thereby constantly under the control
of the Germa~ Government. The Amt is systematically
to be consulted by the companies, home and foreign, in
11 Konige.Petersen, 578. 761.