New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-10-06

policies upon which the premiums are fgy paid ana
which are therefore, no longer source OF revenue az
though they constitute present shd ea of the
company. THIS description OF their chhracser ~, ~,
ever. sui ject to some quail lns r,ion of The
quite large number OF ~, So puces ~ hoLs ~
premium I'm fact left unpaid although uon wv a, a. NOT
eons,dered and does not appear unpaid premm
at all but is treated precisely an, - '"oT aid m
cash and then loan, equal to the amount OF such w
Maid nrcmium. had been made 10 me ihHucu ul ~
security Of bis pocv THIS unpaid pr UNI Nnch'
takes the name ard the form 81 a peIpcual oah lI
ming with the policy, and tue anoUht o. WITT "a w
ancc wherever tins becomes claim TINS ioaH or ~,
bcarapce OF premium, hears luieres' PA -, ,or
upon the anniversary OF The policy, ara failure 10 10y
this interest when que OF Wlihlh lne sare u.s. ,o,
dcrs the uoiicV liable e. forfeiture tac sane rs .p
mcnt Of premium would DO; and It IL herein that tn
device partakes Of tue nature OF prem ,'m eiu be
a loan. TO the extent, therefore, 0l TIE interest," lf"
t"t ave mo- paid do contribute TO the OF the
company TIE total amount OF tIese loalS ~ o = ,,"b
Sl663s And tins SG63s 10 the entire sum o0ntFnueu
nv this cafs of policies to the expense ca go 55
OF Ioans-a future contingent liability OF 30
703 800, and requiring reserve 81 $ i,yDo. -, ~
force Is upon policies winch call for the payment OF re-
ular annual premiums OF course tue amount oi
ance borne bv THESE paving policies Is sioy ;o 81
Tue amount 81 ti'se annual 30 si,aii have
which upon the condition Of the company We 'nae ~
which with the interest from padup policies oil $1,000
make total of S1s3GS6 This constitutes the enure
snd" t -, aTsr Of carving the Whole s. O32sO0 Of
assurances IN force These plIdup policies. aud prem UNI
them are dv ded between the registered ana thc non
registered policy accounts respectively as lch""s'
sssurauce under Paid REGISTERED Policies s4sUa99
Asnfsuce under Premium Paying Policies 2Co2 f8S
,.,., rod A.srroncs. ,5i00Il
,.s,rarce Non Registered Pad-up $3OS2 3lO
As.uranco Registered. Prem Paying '''' "a so'o
ro,., ,or ,e,s,er,a Assurance $50
As regards the income from premiums ana 9m l1,er
est on loans 10 derived from the registered ana Tue
policy accounts. respectively as Ioo"s
REGISTERED policy account q,
from lol on paid policies ---.----> 100 -
Premiums receivable ''''----
Total inc IN nom registered lO22C2
[ unregistered policy account - 90 40
Premiums receivable oi''l
Total income from cgstered policies ...-.-s slis4
H. INQUIRED AND MATURING OBLIGATIONS.
Measure Of LiaBuiiy-We are now preplrcd 10 con-
slider the nature form and amount of the liabilities OF the
North America Life Insurance Company, expressed IN
the terms OF an sting obligation, whio II VIII require
given SUN 10 discharge The chief liability OF NE
insurance counauv arises under contracts to pay fu
turo assurances these sL1 mature Dv the DEAN uI
sir ,h ccT6ition of Inc maturity OF the contract
TIE gross amount Of assurances we have already
fouDd and have stated TO BE- 9S032sOO. our pfooi'u
is 10 gscrrain what sum- exprss fixed. defined md
rt iah nv viii be- theOTet cally 81 least, te exact
equivalent Of this future contingent ahh4 III "thg'
yors Ne ust uni the present value, under the cOud-
TONS gwen ~ these gToss assurances payable a uc
t,i" .-iod. n rne remote future This difficult
problem ard that value. when found, VIII prove 10 p'
st,r vyIcl invested at an assumed rate Or u"fe~i-n
tals state 40 ger ceut~hOuld 10 ether WIN premiums
receivable from policies M io.c', Dr. suhfi 10 ,o ID tt
an these policy obligations as they -hall mature,
u is his sum, CORES Ouda- VIII TINS present lu Vl
gro>a future assurances Invested so rs 10 pro nee le
assumed rate Of interest which j. Known ~ the r.
serve" and this assumed COINCIDENCE htlNtrh ..e
amount OF TINS reserve and tAe sun cxpF'.s tlg
value og tie assuranc frequently tends lo CONFUSION
IN tlr Use Of terms, reserve beng sunsu t'A oi
value" aud rice rcrsr Ing "rtse,'e' should or
O. ID ID o. e
but Whether any given ease, 10 s equal 10 snrh 'aiN.
u.s. a. now, question % be tcrmned Toe premium
assumed some certain raic Tor TIE faf"n. dt'7 AA
classes Of aocrs to Ice considered. which rate ao nos
however embrrc. any provision Tor the general rAcn
SECS Of conducting r business. az these are "ioNh "-
The net nreniu"~. and ne quite rent lf"h que pre-
which IonIrd bg add 20 tie nee premium, ''4u
called "iua ..us,' from wlcn to de.'y lue cNNeuo l
he business, Ius "lOadug" varies iT0m - tO I'D ler
cent. and tie net premiums tlu- Iy'o,u
constitute the gross or table premiums OF 1l'
tious wiz auqea more clearly, perhaps. hereafter
UUuu Us poaca- NOT uatui,d sd sui n Ircr. tA,ie-
con-! spends vita Tbs rtiHed present value OF lis
Assurances wDch arr TO mature in tr D. ar ana remote
iuiCie. inst tlls present or eNis Ing apy, tnrtt
mas ur-, Doe INSET any i sent or tA's lh- lhNeoi
cii ees tie 'u-uf On account oi thcH o1.ys' 9n,S
indebtedness commonly take, one or t+c ON p ana
sometimes both oI Two foru,-jO vii; Loans anl d
l,ucf prom iems Tie nature OF Ioah7. upon P.i,.-Ip
policies has aIlcsdv been considered. Upon WeAu'n-
yus policies t4"y are mucn tue s1mr neinE lhe Ioi-
heirauce n each y-lr of some agreed lolucn %. We
annual premium, Which Uoruon 80 remaining mp no is
car4d y.ensf policy, and Is 90 be Gee not nom
thc amount assured Whenever the pc'cf Dec",he0
clm. lCu .As uup M "0ri)n ~ prtuLt DO a.su' lu-
Z, rrSt Be- cEUaIly caar-cd aHd PAID WIN Gle premium
Deferred premiums arc the portion oI aunua' pre-.
mIus DIE al TIE tcgnung OF each pocy year NOT ped
when due. Uut a matter OI CONVENIENCE t' tHe
. red md - grace aud favor mart OF the company
deferred aud paid Oy insta.meutsH ar intervals % hre
fouf, or six months, may be agreed AS the fu.
tue noy year. portion deferred II IN tie nature of
Temporary loan, and Like tie permanently unpaid pre-
IN - sal luau-, is charged as lien a-1insi tlc pol
icy until PAID, ri Is deducted IRON IL Whenever TIC po-
icy becomes q cialW.
PRisEST VALUE OF POLICIES IL FORCE.
We prepared To consider and TO set loth what
constitute the liabilities Of the North America Lie lnsl
anca Company We comm with that more formula
Bile item the present value OF its policies To obtain ths
the value OF every policy AMI annuity IN
force upon tie 8ih Of March, has been COM
puted by the actuary. under his direction
with the exception Of q few OF the less usual
tusrv Az hms- OF the services and sup nor rae IT,
lies for keen iona work. OF the Insurance Depait men
For the courtesy extended bv the department. ~ inns
and i'm ofppr ma connected with aud In ald of THIS
investigation Poe desires 10 express Ms acEho"ieH
menta The following u the result;
Value of oil policies and annutes, with additions go o
REGISTERED policies Ia 6q
Total va nc and measure OF liability sll227l
The following Table scfs fprth the amount ami d.st
button Of DO. loans and deferred premiums ani Tie bal
ance OF liability after these are deducted.
Value OF policies and annuity bonds. nom
which there are no loans OF deferred
premiums To De- deducted: -
h0nTegistered .-.......,.......... LO47,-SI -l .,
value Of policies from which deferred
premiums are 70 be deductea as iolo"si 1890
49, ~, 81 ,,,s ---'''''. 5i'Gs4