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ACCIDENT Ins. Co. LIM. (No. 2).—This Co. was founded in 1870, with an authorized cap. of £50,000, in shares of £1. It is in fact a reorganization of Accident Co. (No. 1), consequent on its union with the General Accident and Guarantee Co. and the City Accident Co. Its bus. is sound, and its progress in every way satisfactory. It took over such of the policies of the several offices united with Accidental Death Co. (No. 2) as remained in force at that date. Policy-holders are entitled to participate in the profits on the following plan : a red. of prem. at the end of five years on all policies under which the ins. shall have made no claim during that period, "such reduction to be consistent with the surplus profit of the Co. made at the end of every quinquennial period dating from Ist January, 1870."
ACCIDENT RECORD.-A circular or newspaper under this title was pub. quarterly by the Accident Ins. Co. during the years 1868-9, and excited a good deal of interest. It was circulated chiefly among the agents of the Co.
ACCIDENTAL DEATH INDEMNITY INS. Co.-A Co. under this title was projected in 1849, Mr. George Sands Sidney being the promoter. Its objects were fully accomplished by the Accidental Death Co. projected the same year. ACCIDENTAL DEATH INS. Co. (No. 1), founded in Lond. in 1850, with an authorized cap. of £100,000, in shares of £20. It had been prov. regis. in 1849, under the title of the Accidental Death Indemnity Asso. ; but on the 24th Jan. 1850, took the title by which it afterwards became so widely known. Its first scheme was to insure against death from all accidental causes; but in a few months it matured a system of insuring against nonfatal injuries arising from accidents, and so it became the founder of the modern bus. of Accident Ins. We have given some details of this period under head of ACCIDENT INS., HIST. OF.
In 1852 the Co. took over the business of the Railway Assu. Co. which had been regis. as early as 1848; and the arrangement was carried out under the authority of a special Act of Parl., 15 & 16 Vict. c. lvi., "An Act for amal. Railway Ins. Co. with Accidental Death Co., and enabling the amalgamated Co. to insure against death or other personal injury." Hence the Co. obtained parliamentary powers at a very early date.
The progress of the bus. was during the first few years very slow, but that turned out to be mainly in consequence of the Co. having addressed itself to the manufacturing and industrious classes instead of to the professional and mercantile classes. After a few years the mistake was remedied, and the bus. progressed in a satisfactory manner until misfortune of another class overtook it, and it became the victim to a series of frauds already spoken of in the general Hist. of Accident Ins.
The result was that the Directors grew alarmed, and in 1857 entered into an agreement to trans. the bus. to the Travellers and Marine Ins. Co., which had been founded in 1854. This arrangement was sanctioned by Parl. 22 Vict. c. xxii. See Travellers and Marine. The shareholders received back all their capital, with a bonus of 25 p.c.; and with this satisfactory result the affairs of the pioneer Accident Ins. Co. were closed.
The special act of 1859, 22 Vict. c xxii., was intituled: "Act for dissolving the Accidental Death Co., and trans. the business to the Travellers and Marine Ins. Co., to be thereafter called the Accidental Death Ins. Co."
ACCIDENTAL DEATH INS. Co. (No. 2).—This Co. was founded in Lond. in 1854, under the title of the Travellers and Marine Ins. Co., with an authorized cap. of £100,000 (afterwards increased to £250,000), in shares of £5. It introduced some modifications into the bus. of Accident Ins. which we have noted in our general hist. In 1857 the Travellers took over the bus. of the Accidental Death (No. 1); and in 1859 obtained the authority of a special act, 22 Vict. c. xxii. : "An Act for dissolving the Accidental Death Co. (No. 1), and trans. the bus. to the Travellers and Marine, to be thereafter called the Accidental Death Ins. Co." The fact was, the Directors had discovered the mistake of discontinuing the original name, and had to go to Parl. to get the necessary authority to resume it. Hence the title of Accidental Death Co. (No. 2).
The Co. between 1857 and 1859 had absorbed the businesses of the following offices: Maritime Passengers founded 1851 General Accident Compensation founded 1855 Marine and General Travellers 1854 Times and State (accident depart.) 1851 The income of the Co. was now considerable, and occasion was taken to investigate the results of the bus. Various changes were made, all of which have been referred to. In 1859 the business was on a sound basis; and had up to that date been confined to accident bus. pure and simple. The Maritime Passengers, which it had absorbed, had a department for insuring the baggage of passengers, and the effects of captains and mariners from loss by marine casualty. This, in an evil day, led the Directors into the idea of extending the bus. to ordinary Marine Ins. The cap. was increased to £250,000, and underwriting was commenced. Never was a greater mistake. The two businesses have no sort of analogy-or only this that they are each made the vehicle of considerable frauds: marine ins. more especially. The result may be soon told. The profits of the accident portion of the bus. were absorbed by the marine; and the cap. was also being steadily trenched upon. The Directors were advised to enlarge the marine bus. This they did in 1865, by a union with the Accidental Marine Ins. Corp. founded in that year. This union continued until October, 1866, when the last-named Co. passed into liquida
tion; and the Accidental Death Co. (No. 2) again resumed control of the bus.—that is, the accident portion of the bus. But the Co. was not in a position to carry on the same successfully. Hence the Accident Ins. Co. (No. 1) was founded; and the affairs of this Co. passed into liquidation in the early part of 1868. The accident policy-holders were fully protected throughout these changes.
ACCIDENTAL INJURY AND DEATH ASSU. Co.-A Co. under this title was projected in 1850 by Mr. Wm. Campbell Sleigh, Barrister-at-Law, but its objects had already been accomplished by then existing Cos. It did not proceed.
ACCIDENTAL AND MARINE INS. CORP. LIM., founded in Lond. in 1865, with an authorized cap of £1,000,000, in 40,000 shares of £25 (of which a portion only were subscribed), for the purpose of taking over the bus. of the Accidental Death (No. 2) and extending the operations of the Marine Ins. department. The Co. continued in bus. little more than twelve months, during which period it lost the whole of its paid-up cap., incurring liabilities which absorbed the whole of the subscribed cap., over £300,000, and left a considerable amount of liability unpaid. That the losses were occasioned by an almost systematic series of frauds cannot be doubted. But in this the Co. only shared the too general fate of young Marine Ins. offices. The Co. passed into liq. in Oct., 1866, the accident portion of the bus. being resumed by the Co. from whom it was originally taken.
ACCLIMATIZED LIVES.-These are lives which, from long residence in climates supposed, or known, to be prejudicial to human life, have become in a measure proof against the deleterious influences there prevailing. Life offices take this circumstance into account in fixing rates of prem. for residents abroad; and especially make a distinction between such acclimatized persons, and others going for the first time to reside in such places. [FOREIGN RESIDENCE.]
ACCOMENDA, a contract whereby a person entrusts property to the master of a vessel to be sold for their joint profit. It is a term orig. in Italian mercantile law. The venture bears analogy to what is known here as "captain's venture." ACCOMMODATED RATIOS.-This was a term applied to Life Ins. calculations by the late Mr. B. Gompertz. He prepared Tables intended to expedite the operations required for assuming the number of persons living at equal intervals of successive ages to be in geometrical progression, and the periods taken sufficiently short to permit this assumption to be a near approximation to the truth. See Mr. Gompertz's paper, Phil. Trans. 1825. ACCOUNTS OF LIFE OFFICES.-When the practice of pub. annual accounts first commenced we cannot precisely determine. Sir Fred. Eden in 1806, contrasting partnership Ins. Asso. with Trading Corporations, says the former might as easily as the latter show the soundness of their position, by (inter alia) pub. an annual account of their receipts and payments-"though it is believed no office in Gt. Brit. does so." This statement was made by one of the best informed writers of that period. In 1826 Mr. Babbage recommended Life offices to pub. their accounts. In 1841 there was some agitation upon the subject. The Joint Stock Regis. Act, 1844, did require all Cos. regis. under it to make returns-other offices escaped. The Parl. Com. on Assu. Asso., 1853, took evidence upon the subject. [LIFE INS., HIST. OF.] Since then the subject has constantly engaged attention. At length came the Life Assu. Cos. Act, 1870, the 33 & 34 Vict. c. 61, which contains the following requirements :
SEC. 5.-Every Co. shall at the expiration of each financial year of such Co. prepare a statement of its revenue account for such year, and of its bal. sheet at the close of such year, in the forms respectively contained in the First and Second Schedules to this Act.
To prevent any misapprehension, we give these schedules entire as follows:
NOTE 1.-Companies having separate accounts for annuities to return the particulars of their annuity business in a separate statement.
NOTE 2.-Items in this and in the accounts in the Third and Fifth Schedules should be the net amounts after deduction of the amounts paid and received in respect of re-assurances.
• NOTE.-These items are included in the corresponding items in the First Schedule. Sec. 6 of the same measure enacts the following:
£ s. d.
Every Co. which, concurrently with the granting of policies of assurance or annuities on human life, transacts any other kind of assurance or other business, shall, at the expiration of each such financial year as aforesaid, prepare statements of its revenue account for such year, and of its balance-sheet at the close of such year, in the forms respectively contained in the Third and Fourth Schedules of this Act. These forms are as follows: we give them in extenso, for the purpose of future reference, and with a view to avoid mistakes.
NOTE.-Companies having separate accounts for annuities to return the particulars of their annuity business in a separate statement.
NOTE.-When Marine or any other branch of business is carried on, the income and expenditure thereof to be in like manner stated in a separate account.
NOTE.-This account is not required if the items have been incorporated in the other accounts of this Schedule.
If the life assurance fund is, in accordance with section 4 of this Act, a separate trust fund for the sole security of the life policy-holders, a separate balance-sheet for the life branch may be given in the form contained in Schedule 2. In other respects the company is to observe the above form. See also note to Second Schedule.
The following sections of the Act also relate to accounts:—
9. The Board of Trade, upon the application of or with the consent of a company, may alter the forms contained in the Schedules to this Act, for the purpose of adapting them to the circumstances of such company, or of better carrying into effect the objects of this Act.
10. Every statement or abstract hereinbefore required to be made shall be signed by the chairman and two directors of the company, and by the principal officer managing the life assurance business, and, if the company has a managing director, by such managing director, and shall be printed; and the original, so signed as aforesaid, together with three printed copies thereof, shall be deposited at the Board of Trade within nine months of the dates respectively hereinbefore prescribed as the dates at which the same are to be prepared. And every annual statement so deposited after the next investigation shall be accompanied by a printed copy of the abstract required to be made by section seven. 11. A printed copy of the last deposited statement, abstract, or other document by this Act required to be printed shall be forwarded by the company, by post or otherwise, on application, to every shareholder and policy-holder of the company.
The Board of Trade is to lay before Parl. annually the "statements and abstracts of reports deposited with them under this Act during the preceding year.' We understand that the accounts before being presented to Parl. are to undergo the process of examination by an Actuary specially selected for the purpose. In making this appointment it is of the utmost consequence that the selection should fall upon a man enjoying the widest confidence.
It seems desirable to draw attention to the fact that the provisions of the Companies Act, 1862, relating to Ins. Asso. have not been repealed; and sec. 44 of that Act requires that (inter alia) every Ins. Co. and Deposit, Provident, or Benefit So. regis. under that Act, before it commences business, and also on the first Monday in February and the first Monday in August in every year in which it carries on bus. shall make a statement in the following form, or as near thereto as circumstances will admit, and a copy thereof shall be put up in a conspicuous place in every office and branch office or place where the bus. of the Co. is carried on. Penalty on director or manager of Co. failing to comply, £5 per day. Copy of statement to be supplied to shareholder for sixpence :—
The cap. of the Co. is shares issued is
which the sum of £
divided into Calls to the amount of £ has been received.
The liabilities of the Co. on the 1st of January (or July) were :-Debts owing to sundry persons by the company: On judgment, On notes or bills,
£ On simple contract, £
On estimated liabilities, £
The assets of the company on that day were :-Government Securities (stating them),
This return will therefore have to be made as heretofore.
Under ACTUARIAL REPORT we have detailed the other returns required under the "Life Assu. Cos. Act, 1870."
ACCOUNTANT-GENERAL OF CHANCERY is an officer appointed by Act of Parl. to receive all the money lodged in Court. He keeps his account with the Bank of England, which is responsible for all sums lodged there by him. This is the officer with whom the Deposit required under the "Life Assur. Cos. Act, 1870," (sec. 3) is to be made. [DEPOSIT.] ACCRUE. To grow to, or to arise. As an "accruing bon. ;" viz., the next bon. which is to be declared. ACCUMULATED FUNDS OF LIFE OFFICES.-The accumulated fund of a Life Asso. should at all times be sufficient at least to re-insure the outstanding risks under its various classes of Annuity, Endowment, and Life policies, together with any Bonus additions already declared or guaranteed. In the case of a Co. having a proprietary capital, the accumulated fund should be sufficient for the purposes just indicated, plus the paid-up capital and all accumulations thereon. This subject will be dealt with very fully under Finance of LIFE INS. The "surplus funds" will be only the portion of the accumulated funds, beyond the purposes already named. In the case of a small office, liable to fluctuations in the actual, as against the expected, number of deaths, and also in the amount of the policies affected by such deaths, prudence will suggest the necessity of the accumulated fund being kept at a higher standard than that here indicated. The fund should never be lower. ACCUMULATION.-For statutory limitations as to the period during which trust monies and property may accumulate, see THELLUSSON ACT. ACCUMULATIVE LIFE ASSU. Co., founded in 1853 on the proprietary plan. The Earl of Devon was stated to be one of the promoters. In the same year of its birth it became united with the Anglo-Australian, and by other amalg. its surviving pols. ultimately merged into the European.
In a case arising out of the affairs of this Co., it was held by the Court of Common Pleas, King v. Accumulative, etc. (tried 1857), that a contract to pay a pol. out of particular funds did not amount to a contract to carry on bus., nor a contract not to hand over the funds to other persons; and that a pol.-holder whose pol. is not due cannot support an action for damages which he fears he will sustain, but which possibly he will not. [AMALGAMATION.]
ACCUMULATIVE INSURANCES.-See DEPOSIT INS.
ACHILLES BRIT. and Foreign Life Assu. Asso. AND LOAN BANK, founded in 1840, with an authorized cap. of £500,000, in 20,000 shares of £25. The prospectus spoke of the inestimable benefits of Life Ins., but estimated that only 88,000 persons had at that date availed themselves of its advantages. The loan feature was put forward as affording to the policy-holder a means of advantage while living. The general features of the scheme were reasonable and good. Mr. Adolphus Courvoisier was the first Sec., and afterwards Mr. George Henry Brown became Superintending Director. In 1844 the bus.
was trans, to GT. BRIT. MUT.
ACHILLES INS. Co. for Life, Fire, Loans, and Annuities, was projected in the first instance under the title of the Indisputable; and was founded in 1853 under the title above given. Its authorized cap. was £100,000, in 10,000 shares of 10. The prospectus estimated the number of persons whose lives were ins. at 200,000. Its policies were "strictly Indisputable except in cases of intentional and proved fraud." One-third of prems. were allowed to remain unpaid. The fire bus. was not long continued. The Co. at a later date took up the bus. of Fidelity Guarantee, and the ins. of Impaired Lives. Mr. Edward Miall, M.P., the eminent Nonconformist, became Chairman of the Co. Mr. H. B. Taplin was its Sec. In 1858 the life bus., which was considerable, was trans. to City of Lond., and so passed on to the Eagle, to the great advantage of the policy-holders. ACKNOWLEDGMENT OF NOTICE.-An admission by the chief or other duly authorized officer of an Ins. Co. of the receipt of a notice affecting the interest in a Life Policy. It is under the Po. of Assu. Act, 1867 (30 & 31 Vic. cap. 144, sec. 6), obligatory on an Office to give such acknowledgment on payment of a fee of 55.; but this fee is not always insisted on. The acknowledgment is to be conclusive evidence against the office of the receipt of the notice. Notices rank in order according to the order of their receipt by the Office.
ACKWORTH, YORKS. Its salubrity. See mort. observations under date 1767. ACLAND, REV. JOHN, Rector of Broad-Clist, and one of His Majesty's J.P.s for the County of Devon, pub. at Exeter in 1786, "A plan for rendering the poor independent on public contribution; founded on the basis of the Friendly Societies, commonly called Clubs." To which is added, a Letter from Dr. Price, containing his sentiments and calculations on the subject. ACQUIESCENCE.-Consent either expressed or implied. Questions of acquiescence arise not unfrequently in cases of amalg. and also in reference to the acts of agents. The subject is ably discussed in Bunyon's Law of Life Ins. [AGENTS.] [AMALGAMATION.] ACQUITTANCE.-In law, the discharge in writing for a sum of money due. An acquittance not under seal is admissible only in evidence, and is not pleadable. An acquittance in full of all demands is an answer to all debts, except such as are in specialty. ACTION, conduct, something done; also the form prescribed by law for the recovery of