3. Capital and Reserves of Japanese Life Insurance Companies: There were 33 Japanese life insurance companies in Japan with an authorized capital aggregating ¥45,550,000 at the end of the year 1938, of which ¥22,462,500 was paid up. Current and liability reserves were, at the end of the year 1938, ¥38,160,000 and ¥3,185,576,000 respectively, and there were other undivided profit reserves, including ¥10,708,000 for legal and ¥36,413,000 for special accounts, etc. Details of the capital and reserves of each company are as follows: CAPITAL AND RESERVES OF JAPANESE LIFE INSURANCE COMPANIES Note: Current Reserves refers to the amount reserved to meet maturing insurance. Liability Reserves refers to the amount which the Government requires each insurance company to reserve for the protection of policy holders. Such funds may be deposited only in the banks specified by the Government. 4. Conscription Insurance: A conscription insurance policy is written for a boy during his boyhood, nominally for ¥1,000 to ¥2,000. If he is drafted into the Army at the age of 20 or dies before reaching that age, the full amount of the contract is paid to him or his beneficiaries; and if not, the amount of premium paid, plus interest is refunded to him. There are 4 domestic companies in Japan, engaged in this kind of insurance. Conscription insurance written by Japanese companies and in force on December 31, 1938, was as follows: Number of policies, Amount of contracts, 2,294,454 ¥1,683, 246,000 New policies written during the year of 1938 numbered 500,589 and amounted to ¥426,376,000. 5. Government Insurance: Japanese Government life insurance is conducted through post offices for small amounts, the maximum amount of a contract being limited to ¥700. The premiums are paid monthly. No physical examination is required. Government life insurance policies in force on December 31, 1938, were as follows: Number of policies, Amount of contracts, 31,804,311 ¥5, 140, 158,000 The above figures do not include Government insurance in Chosen which numbered 1,839,065, and amounted in value to ¥339,917,000. New policies written during the year of 1938 were as follows: Number of policies, Amount of contracts, INSURANCE, OTHER THAN LIFE 5,110,925 ¥1,216,935,000 Insurance, other than life, written by Japanese companies and in force on December 31, 1938, including both domestic and foreign business, was as follows: Note: Amounts of re-insurance are included in all insurance, except in steam boiler insurance. The aggregated totals of new contracts written by Japanese companies and increases by other causes during the year of 1938 were as follows: Note: Amounts of re-insurance are not included in all insurance, except in steam boiler insurance. Details of insurance, other than life, written by American companies and in force on March 31, 1938, were as follows: Fire1 Kind (Value in ¥1,000) 1 Note: Re-insurance numbered included. amounted to ¥6,673,000, not 2 Note: Re-insurance numbered 41 and amounted to ¥588, 000, not included. Details of insurance other than life written by foreign companies other than American and in force on March 31, 1938 (those as of December 31, 1938, are not yet available), were as follows: (Value in ¥1,000) Kind Firel Automobile. 1 Note: included. 2 Note: cluded. Re-insurance numbered 10,739 and amounted to 170,885,000, not Re-insurance numbered 119 and amounted to ¥2,899,000, not in Details of new insurance policies, other than life, written by American companies during the fiscal year ending March 31, 1938, were as follows: 1 Note: included. 2Note: cluded. Re-insurance numbered 1,345 and amounted to ¥9,206,000, not Re-insurance numbered 344 and amounted to ¥4,770,000, not in Details of new insurance policies, other than life, written by foreign companies other than American, during the fiscal year ending March 31, 1938 (those for the year of 1938 are not yet available), were as follows: 1 Note: included. 2 Note: cluded. Re-insurance numbered 16, 151 and amounted to ¥242,491,000, not Details of insurance, other than life, written by American companies and in force on December 31, 1938, were as follows: Details of new insurance policies, other than life, written by American companies during the year of 1938, were as follows: 1. LAWS AND TRENDS Name and Title of Official Supervising Insurance Business, Publications, Etc.: Name: Narao Maki. Title: Chief of the Department of Insurance, in the Bureau of Administration, Ministry of Commerce and Industry. PUBLICATIONS: The Insurance Year Book compiled by the Department of Insurance, Ministry of Commerce and Industry, and published by the Life Insurance Companies Association in 3 volumes. The first volume is released in January or February; the second and third volumes, about May. Subscription is ¥2.70 for 3 volumes. The Insurance Business Year Book compiled and published by the Songaihokenjigyo Kenkyusha (Non-Life Insurance Business Research Bureau) in 2 volumes. One covers life insurance; and the second, insurance other than life. Both volumes will be released in August. Subscription is ¥20 for the 2 volumes. The Insurance and Banking Reports weekly publication, published by the Insurance and Banking Report Publishing Company. is ¥12 per year. Covers life insurance only. Subscription It The Annual Statistical Edition of the Insurance and Banking Reports, compiled and published by the publisher of said weekly reports. covers life insurance only and will be released in March or April. Subscription is ¥1. The Censure of Life Insurance Companies a special annual edition compiled and published by the Oriental Economist Publishing Company. It covers life insurance only and will be released in May. Subscription is ¥1. Partial publication of insurance statistics appear often, but not regularly, in the Government Gazette. 2. Development of Probable Interest to American Companies: Two American life insurance companies who previously operated in Japan have withdrawn from the field, leaving the business of outstanding contracts in the care of one of the Canadian life insurance companies now operating in Japan. Due chiefly to higher operating expenses for foreign life insurance companies and also to the rapid development of Japanese life insurance companies, there is little room for American companies in the life insurance business in Japan. Two American companies are doing a fair amount of business in the fire and marine re-insurance field; however, plans are now on foot by Japanese insurance companies to handle this business themselves. 3. Proposed or Enacted Legislation, Regulations, Taxation, Etc.: A general revision of the Insurance Law was approved and the New Insurance Law No. 41, dated March 28, 1939, was enacted by the 1939 session of the Diet. An Imperial Ordinance must be issued to enforce this law and it is rumored that this new law may become effective in January, 1940. This new law covers only domestic insurance companies, but additional laws and regulations converning foreign companies may be enacted by an Imperial Ordinance. The principal object of the changes effected in this new law are to modernize the insurance laws to cope with present conditions and also to bring the insurance business more rigidly under Government control. The brief changes are as follows: 1. More intensified Government control. and 2. Life insurance companies are required to have an actuary, their qualifications and obligations are specified by this law. 3. In appraising the valuation of bonds and debentures, the "amortization" methods are adopted. 4. Reserves against profits arising out of sales or appraisals of properties are required in the new law. 5. If necessary for the benefit of the public, the Government may order insurance companies to discontinue their business or transfer outstanding contracts and the supervision of business and properties, whenever insurance companies are found to be in difficulties in carrying on their business or their business is found to be unsatisfactory. 6. Incorporated insurance companies may be changed to mutual insurance companies. 7. Laws regarding the merger of an incorporated insurance company and a mutual insurance company are enacted. 8. Laws relating to the rights or preference of insurance policy holders are revised in order to make them more effective. 9. The transfer of business of the insurance company is prohibited. Important points in the changes effected in the laws relating to Government life insurance by Imperial Ordinance since October 1, 1938, are as follows: 1. The maximum amount of Government life insurance is ¥700 for one person. (Previously ¥450.) 2. Rates of the insurance premiums were lowered. 3. A new Child Life Insurance policy can be taken out on a child from 1 to 12 years old. (Previously 3 to 12 years old.) 4. Only 4 kinds of endowment insurance are allowed, those covering the duration of 15, 20, 30 and 40 years. INSURANCE OF SOCIAL NATURE National Health Insurance Law. This insurance covers expenses in case of sickness, accidents, child-birth, and funeral service. It is obtainable through associations organized by (1) family heads in a district, (2) by persons engaged in a s ame kind of business. The families of the member of said association are eligible to join. The Government may provide financial assistance to the association. This law became effective July 1, 1938. Health Insurance Law. This insurance covers expenses in case of sickness, accidents, child-birth and funeral service. Workers who are employed in a factory, mine or in the business of land transportation, are eligible as also are their families. The operating expenses are partly subsidized by the Government. This law became effective July 1, 1926. Laborers' Accident Liability Insurance Law. The employer of laborers makes a contract with the Government to insure accident liability for his employees. This insurance covers expenses of medical treatments not exceeding a certain amount, limited compensation while a |