July 16, 1942 (19th Parliament, 3rd Session)


Ralph Maybank



The execution date of any document which established the existence of that condition; that is, the fact that the man committed himself, or any evidence which would definitely show that a man had entered into an arrangement such as I have described.
There is only one other point I should like to mention, and that is a minor matter with regard to insurance premiums. Take the case of a man whose insurance falls due in March. A great many men do not pay promptly, nor do they arrange any loans to take care of the premium. They just let it run for two or three months. Almost always their policies contain extended insurance clauses, or whatever they may be called, under which the policies carry on automatically. Then let us say that in June the individual makes the payment that was due in March. His receipt will not show that he paid the premium; it will show that he repaid a loan. If a man repays a loan on his policy, I do not know whether it is intended that this shall be treated as though it were a refundable payment. If it is, all right; but if it is not, I wish to draw to the minister's attention the fact that many people pay their premiums a little late. They do not make any arrangement for loans when the premiums fall due; they just let it ride, knowing the policies to be all right by reason of the deferred payment provisions. But when they pay the premium they do not get a receipt showing payment of the premium itself; the receipt shows repayment of a loan, because automatically, in the bookkeeping of the company, when the premium was not paid on the due date it became a loan, though no special action was taken by the policyholder to obtain that loan. I submit that in such instances these payments should be treated as payments of premiums, which would relieve the individual of the payment of tax on that portion of the refundable deposit.
I think these are the only questions I had in mind. I thought it well to place these various matters on record at the one time rather than speak three or four times during this discussion.

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