A Few Thoughts On Commission Divisions of Profit Selection of Lives the Morta

Samuel Brown

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The ex- cess above the average number of policies, written off from the oldest 5000 policies in seven years, is not equal to 7 per cent, in any one year. These two latter statements are taken from printed documents of the Society ; the first from the publication to which we referred in a former letter on the selection of lives, and the latter from a paper given away with the Prospectuses. The general conclusion then is, that as the assurers increase in number, the fluctuations of mortality dimi...nish or become contracted.
There remains yet another point in favour of the office, and that is discrimination in the selection of lives. Most of the tables of premiums, except those formed from the actual experience of the offices, are formed on the supposition that the tables of mortality from which they are drawn, represent the average rate of mortality in the population, from whom the assurers are selected. If the Directors, therefore, by the skill of their medical officers, are en- abled to choose only those lives which are above the average degree of health, it results, both in theory and practice, that the mortality in the first few years at least should be considerably in favour of the company.

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