The Queensland Government acting under the Insurance Act passed in 1916 have required marine and general insurance companies carrying on business in Queensland to deposit in cash the amount of deposit required under that Act.

It has been represented that the payment of the deposit in cash would be detrimental to the War Loan, and that the companies in question are desirous of depositing War Loan Bonds to the amount of the deposit required.

The Secretary, Prime Minister's Department, has referred the file for advice as to the powers of the Commonwealth in the matter.

The Queensland Insurance Act 1916 requires all persons carrying on marine or general insurance business in Queensland to take out a licence (see section 10).

Before a licence is granted the applicant must deposit with the Treasurer a sum of money to be determined as follows:

(a) Where the income from marine and general insurance premiums in Queensland after deducting local reinsurances during the twelve months preceding the date of the application-

does not exceed £10,000........................................	£5000
exceeds £10,000 ................................................	£10000

(b) Where the applicant transacts marine insurance only the deposit is to be £1000 until the annual premium income amounts to £1000, when the above provisions apply (see section 11).

The sum deposited is to be invested by the Treasurer in debentures of the Government of Queensland (see section 12).

The Act gives the Treasurer of Queensland no power to accept the amount of the deposit in War Loan Bonds. The Act requires the deposit to be paid in cash.

The Queensland Parliament has not exceeded its constitutional powers in passing the Act in question.

The Commonwealth has power to legislate on the subject of insurance, and a Bill dealing with this subject is at present before Parliament. Upon that Bill becoming law insurance companies and the deposits to be made by them would come under the control of the Commonwealth.

In my opinion, until the Commonwealth Parliament legislates on the subject of insurance, the Commonwealth has no power to permit an insurance company carrying on business in Queensland to pay its deposit in any other way than that required by the Queensland Insurance Act 1916.

[Vol. 15, p. 28]

(1)Date in opinion Book Incomplete.

(2)This opinion is unsigned in the Opinion Book, but it is attributed to Sir Robert Garran.