The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-10-21
History of Life Insurance

Darby A.. Day. rnanager OF the Mutual
Life OF New York. gave an instructive
lecture on ths History or Life insur-
ance' last Tuesday evening before the
FIRE Insurance club or Chicago. Said
Mr.. Day:
In commencing my discourse on
facts, must first call your attention
70 what ] am pleased TO term the
foundation o! life insurance. The
true founders OF the science OF lie
Insurance were John Dewitt anu
Captain John Gaunt, for they were
certainly The first 10 apply mathe-
Inatical calculations tO fix tnv rates
or anDuitlcS ana govern the prob
abilities Of life. I'D 10 the end OF
tho seventeenth century, as there
were no laws to calculate the chances
OF mortality, life annuitics were
granted according 10 the caprice OF
the usurcr or monoy lender, o. the
ignorance or crcdulty OF the pur-
chaser,
Continuing, the speaker gave an ac-
count Of the smallpox plaques years age
in London and other parts OF the wor,d
and sald the plaques Themselves found
the first principle which governs life IN
surance. In 1892. be said. 5v.o,I person;
died Of the SCourSc An attempt Was
made to quiet public feeling by correctly
Indicating its progress. and there re
suited the bills oi mortality which nccos.
Stated recording the death aud cause oi
death, At first they wera not complot'
IN detail or quite accurate in cxtcnt
They We're found so useful however
that from December 20. 1905, they wore
officially adopted and continued dowr
TO tho present day
Commenting oil this point Of history
Mr.. Day sald:
Thus il viii be seen that tho NOR
tality bills, the rorerunnor of tho
mortality tables arc cve1I older then
the science of medicine. Skipping
period Of nearly a hundred wears
and coming down to the end OF the
seventeenth century, tho first policy
OF which have read was issued
upon the life OF Sir Robert Howard,
September 2, 1907. On the same dsy
the following year he died and tho
merchant lnsurinS refused payrnrpt.
Tho court fLord TTolG ruled that tho
policy reading from date did not In
cludc the day Of writing. and that
the underwater. was liable,
SO much for ths origin of the busi-
ness. Now to the modern methods
and manner Of finding Insurance pre-
mlums or rates. II it wcro known
Just how long the pollcyholder WOMB
live, anyone could compute the
amount of tho necessary premium
but lives vary Expenses must be
mot, interest earnings vary. All Ilfe
insurance companies pre-suppose
therefore an intcrost rate that can
safely he depended upon-lets as
sumo per cent. Although il is i'm
possible To predict the exact length
q amy Individual life. II Is possible
10 determine the average lifetime of
a large number Of lives, Ia this
manner the mortality tables haVo
been constructed. showing how many
out of 100000 born this year will
reach age 10, ago 90. age 80, ur any
other aSe, showing likewise tho sv-
"ragc lifetime remaining to those
still alive,
The American Table of Mortality
was constructed by Sheppard Lfo-
mans. the then actuarS OF the Mu-
tual J!ffo. and Is based mainly upou
lives Insured In that company Tho
table begins with 100 600 persons ut
ege or 10, and fixes the limit Of Ilre
At age, 90, when the last three Of
| The original Group arc assumed TO
die. The premium rates OF nearly
| an American companies arc based
| upon this table. It is therefore my
reference
| In, conclusion. Manager Day doscrTbc
IN detail the computation OF premiums
! reserves, etc.