GIPE-PUNE-OIIOI2 - DSpace@GIPE

16 PRINCIPLES OF CONTROL OVER
:are governed by the laws and decrees of 1921, 1922,
1923 and 1925. The authority of cont~ol for all offices
is vested in the minislero per l' economia n~zionale.
In order to carryon insurance business, whether (i)
for life or (ii) for property i.e. industry ~nd commerce or
{iii) for reassurance, every company has to obtain a license
from the ministry of national economy. The general
agent for all foreign companies in Italy must be an Italian
.CItIzen. While applying for permission the companies
must produce certificates testifying to the Italian
nationality of the· chief responsible officer. On this point
,the !talian law is more explicit than t1;le German and the
French and necessarily more strict. A concession tax
has to' be paid by all compan.ies, home and foreign.
For life insurance an initial deposit of 2,000,000 lires
.(Re. 1 = 7 lires approximately) has to be made. The payment
must be made in cash or state bonds. Only the
Cassa dei deppsiti e prestiti (Bank for deposits and loans)
or an istitulo di emissione (industrial bank) is authorized to
receive this deposit. In the case of property insurance the
initial deposit is 200,000 lires if only one line is transacted.
But if more than one class of industrial and commercial
insurance be attempted the initial deposit is to be 500,000
lires.
Regarding other deposits the regulations are precise
too. Life offi~es must invest t~.e· mathematic,al reserve in
{1)ltalian state bonds, (2) non-mortgaged properties, (3)
-other approved securities, or'(4) cash deposits. Only the
,Cassa depositi or a cassa di'tisparmio (savings bank) has
the authority .to accept these investments. Not more than,
5 per cent of the mathematical reserve need however be
.invested in this m~nner. While determining this 5 per