The assurance of diseased and doubtful lives on a new principle, more advantageous and equitable to policy-holders than the system hitherto adopted / by Morrice A. Black ; with observations on the characteristics of assurable and non-assurable lives, by A.P. Stewart.

  • Black, Morrice A.
Date:
1862
Catalogue details

Licence: Public Domain Mark

Credit: The assurance of diseased and doubtful lives on a new principle, more advantageous and equitable to policy-holders than the system hitherto adopted / by Morrice A. Black ; with observations on the characteristics of assurable and non-assurable lives, by A.P. Stewart. Source: Wellcome Collection.

Provider: This material has been provided by The Royal College of Surgeons of England. The original may be consulted at The Royal College of Surgeons of England.

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    '• 4 . I CHAPTER m. ■ ; ; ?n . ■ ' • The New System proposed for the Assurance of Diseased and Doubtful Lives. We have already seen that the extra premiums charged for the Assur- ance of Diseased and Invalid Lives are assured without reference to system, and on principles arbitrary and hypothetical. A plan that would remedy the errors and inequalities of the method referred to in the preceding chapter, need only deal with the interests of those who are required to pay extra premimns. For it has been already stated that on the business transacted in the aggregate, the extra premiums charged have been sufficient, oyer a series of years, to protect Companies transact- ing that description of business. If then we can ehow that the rate of premium charged at the time the Policy is taken out may subsequently be more equitably adjusted, the grounds of, complaint against the present method, if, riot wholly removed, .would be gi-eatly mitigated. A plan that would make it absolutely , certain that a single extra pre- mium would be paid in the event of death occurring before a given age, and a plan that would make if , also certain that the single extra premium would be cancelled in the event of surviving a given age, w'ould evidently be a great desideratum. Such a scheme we shall presently show would be decidedly more equitable to individual assurers. To show how such a method can be carried out> let us suppose a num- ber of individuals desirous of forming themselves into a Society for the purpose of assuring their lives, Preparatory to their becoming members, they of course agree that each will submit, to a Medical examination. The results of the examination ai-e, that three-fourths of the intending members are passed as first-class lives, and the remaining fourth are rejected as being Diseased or Doubtful Lives. But, that tliey may not be excluded from the benefits of Life Assurance, the Society compound
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