New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1859-12-06

Here the Actuaries rate gives the largest on
The whole The ratios might not obtain through
out the entire business of any company but as both
premiums aud annuities enter into the formula for
The valuation Of policies there be great varia-
ton from these ratios much left 10 choose between
these different rates for the purposes OF valuation for
reserve. In this state of facts and opinions, am
somewhat surprised that Prof Peirce should venture
TO ssy al win not criticse the iniudioious selection Of
"the Combined Experience Tables" / think he
should not have said this without better than
he could borrow from Nelson. In 1852, when l was
invited BY several of leading Life Insurance Com
panes 20 compute valuation tables for their use, sub
mitted plan of such tables based on the Com
bined Experience rate Prof PIERCE and solicited his
criticism. He very kindly gave me an opinion unqual
ifedly in favor OF the undertaking. closing in these
words:
am quite pleased with The form which your intimate
anowisass o. e sie Sss s y noas Il ssy bs, M
company honestly and st unde.ke to declare dividend
without knowledge Of the M extent Of s
and liabilities. large part which is involved in the policies
ard Of which the most recent nvestsons Of the London
do not rec why this opinion is not, at least,
good ss bis recent one, and especially since all
the light furnished by the last years has gone
TO establish the Combined Experience as better pIae-
teal rule than the Carlisle, which is used by Mr..
WoolhOuse. When / submitted the question TO Prof.
Peirce was well OF the theoretical objection
% the Combined Experience, having made elaborate
xesearches 10 test it's practical value, and. my men,
ory not at fault stated the objection 70 him. together
with NV reasons for nevertheless preferrng that rate
In this Office in order 10 ascertain what company
should have accumulated from It's premiums, sup
pose The premium every policy TO be divided Into
two Pare. One Of these is the net premium by the
Comhzed Experience Table ut per cent; the other is
she OF the actual premium this. The latter
quantity We do not seek 10 know. knowledge of it |
might be important and indispensable fOr some pur-
poses but is not for any purpose contemplated by the
hw Of Massachusetts,. Whether the excess be large |
small she risks the and the reserve should
be the same. The excess, loading" margin" or
charge, rs Il is technically called, after defrayng
the necessary expenses Of whatever Sort has no Just
deetny but 10 be returned 10 the polcy-holders or
divsed among the holders of the guarantee capital
But we assume thai tho whole of the net premiums
tConesned ESpe-ience), at per cent, after paying
current losses must be accumulated at that rate az
provs'on Tor future losses. The aggregate net value
Oh me p0eee Of any company Registry is pre-
cisey me amount of such hypothetical accumulation,
when y n our duty TO compare with the actual
accumulation nom year 20 year. The rule NAV
be arbitrary or lljudged; but il is the same for
one company as for another should the actual |
premiums OF any company but little exceed our hypo
thetcal ones the need has of care and economy
that is accumulation may run below the marx and
the more praise fit exceeds. should the premiums of
another company greatly exceed the less excuse for n
n lie accumulation is deficient We have never nre
tended that q company having its actual premiums 80