Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-10-04
Life Assurance Com ment.

The extraordinary prominence given tC
life assurance BY reason of the energetic
field work, mas led to wider appreciat ion
by business men of the advantages sur.
rounding the system and its applicab Y
to their needs, present and future. As the
value OF life assurance has become more
and more recognized demand for larger
amounts of assurance has been created.
The companies have met this, aud three of
them will carry 100000 on a single life,
while eight others exceed the average of
the forty-four companies whose figures
were furnished US, which is nearly ST 800.
CurlouSly enough mutual companies grant
the highest and the lowest sums under or
binary policies, viz: 500, 900 and $1,000. The
question rs been raised as to the maxi
mum amount any company can carry On in
diVidual risks, and at the last meeting of
the Actuarial society, Clayton Hall of the
Maryland Life read paper on the subject,
IN which he dealt with the mathematical
side OF the case, showing that it was af-
fected by the probable error in the mortal
lty value. Hypothetical cases We're taken
for illustration where the expected number
OF deaths ranged from 100 to 1000. The
probable variation is the square root
of the anticipated decrement, and this
Is lessened in the per cent as the mem
bers increase. For instance out of 100
looked for deaths the probable error is ten,
AVN
against 10 per cent in the first case. II
would appear, therefore, that where large
risks are obtained in considerable mum berS,
as they certainly can be, the safety of the
company Is not assaulted when taking into
consideration the loading. Mr. Hall, pre-
sumaDly, would recommend an increased
charge where company issued an amount
beyond the usual limit on a single risk, so
as to meet the contingency possible by the
liability OF variation in mortality. The
matter at large is one to be grappled with
as practical business, and if the experience
OF company shows the mortality and lapse
rate among persons assured for greater sums
to be favorable, it is commemorate and
iustifiable to make a bid for such patronage,
due precaution being taken to obtain mem
bershlp of standard character. 1t would be
interesting to have the experience of COM
panles with regard TO deaths and with
drawats under policies where the assurances
were $1,000 and over collected, for such
statistics, if dealing with sum assured and
policies for increasing amounts of 5000,
would form valuable contribution to life
assurance literature.
The report Of the Clergy Mutual Assur-
ance society (England) dealing with the
mortality experience for nearly sixty years,
has just been made public, statistics of this
character are always valuable, serving as
they do, to confirm or otherwise opinions
which may have gained ground. The ex-
perience OF this Office is like that of some of
our companies in that the highest mortality
was found among persons insured for small
sums and wee versa. 1t is also made appar-
emit that the clerical brethren appreciate
the wide sphere of usefulness covered by
life assurance, for the mean term Of their
assurance was seventeen years. while with
the lay members it ran up to 80 only. The
average age at entry of the clergy was 36.3
as against 27.S with the laity The entire
among the clerical element was
more favorable than expected. although it
54lculated to be lower than that con-
sidered in making the premium rates. 1t
is claimed that very large per cent of the
died from senile decay.
One Of the British offices, the United
Temperance and General Provi-
Dent institution. divides its business in such
as to keep the records of temper
ance risks apart from those in the general
section. The mortality statistics of the
Institution are valuable, for they indicate
he variations in mortality experience from
hat assumed in calculating the premium
'ates, according as the assured claimed TO
De drinkers or otherwise Of intoxicants
The larger bonuses to policy holders In the
temperance section attracts a number Of
applicants who. under other circumstances,
night seek assurance in ths general sec