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Weyman Lee, who wrote in 1737 and again in 1751, was the main disciple of this school; but the error is fallen into even at the present day.
Dr. Price, in a note to his Essay read before the Royal Society in 1769, said hereon: Were this true, an annu, on a life supposed to be exposed to such danger in a particular year as to create an equal chance, whether it will not fail that year, would, at the beginning of the year, be worth nothing, tho' supposed to be sure of continuing for ever if it escaped that danger: nor in general would the values of annu. on a set of lives be at all affected by any alterations in the rate of mort, among them, provided these alterations were such as did not affect the period during which they had an equal chance of existing.
The Baron Maseres, in 1783, speaking of the method propounded by Mr. Weyman Lee, says:
It is exceedingly erroneous, and gives the values of life annu. throughout the greatest part of human life, much greater than they should be. In the younger ages of life, the difference of the erroneous value from the true one amounts to about 3 years' purchase, yet the principle upon which Mr. Lee grounds this method has something in it plausible at first sight, and is apt to mislead the understanding with an appearance of truth and simplicity, unless it be examined with a great degree of attention.
The reason why the proposition is not true was explained in a clear and popular manner some few years since by Mr. F. A. C. Hare, of Manchester. ANNUITY. An annuity (as distinguished from a L. annu.) is a payment made ann. for a term of years; and the chief problem relating to it is to determine its present worth, that is, the sum a person ought to pay immediately to another upon condition of receiving from the latter a certain sum ann. for a given time. In resolving this problem, it is supposed that the buyer improves his annu. from the time he receives it, and the seller the purchase-money, in a certain manner during the continuance of the annu., so that at the end of the time the amount of each may be the same. There may be various suppositions as to the way in which the annu. and its purchase-money may be improved; but the only one commonly applied to practice is the highest improvement possible of both, viz., by Compound Int. As the taking of compound int. is, however, prohibited by law, the realizing of this supposed improvement requires punctual payment of int., and therefore the int. in such calculations is generally made low.
The words Annu. and Rent-charge are frequently used as convertible terms: but in reality they are not so.
ANNUITY ACT.-In 1777 the 17 Geo. III. c. 26, commonly called "The Annuity Act," was passed. Its intention was to suppress gambling and dishonest dealings in L. annu., and it appears to have been eventually successful. The subject is referred to in our Hist. of Annu. under this date, and the details of the Act are also given there. ANNUITY APPORTIONMENT ACTS.-In 1738, by the 11 Geo. II. c. 19, annuities arising out of rents and profits from real estate were to be so apportioned that the representatives of the annuitant received the due proportion from the last preceding payment up to the death of such annuitant; but the Act did not extend to annuities arising from other sources; and under the general law, rents, annuities, etc., were not apportionable.
In 1834, by 4 & 5 Wm. IV. c. 22, it was enacted that all rents, annuities, and other payments coming due at fixed periods be apportioned, subject to all just deductions; and remedies were provided at Law and in Equity for recovering the same. The Act will not apply where a stipulation has been made that there shall be no apportionment; nor does it apply to life premiums falling due annually or otherwise.
Sec. 2. All annu. made payable or coming due at fixed periods under any instrument executed after 16th June, 1834, shall be apportioned so that the annuitant's executors or assigns shall be entitled to a proportion of such annu. according to the time which shall have elapsed from the last payment, including the day of the death.
Sec. 3. The Act is not to apply to ann. sums payable in pol. of assu. of any description.
In 1870, by 33 & 34 Vict. c. 35, it was enacted:
Sec. 2. Annuities are to be accruing from day to day, and to be apportionable accordingly.
Sec. 6. Nothing in the Act contained shall render apportionable any annu. sums made payable in pol. of assu. of any description.
ANNUITY BOND.-The deed or legal instrument by which an annuity is sometimes secured to an annuitant. [ANNUITY POLICY.]
ANNUITY BUILDING AND GENERAL ASSU. Co.-A project under this title was prov. regis. in April, 1855. It never proceeded beyond this stage. Mr. Joseph Bentley, well known in the ins. world, was the promoter.
ANNUITY CERTAIN.-An annuity certain is one for a given term of years, not dependent upon any life or event. A perpetual annu. is sometimes called an annu. certain. ANNUITY CO. FOR PURCHASING OF GOVERNMENT SECURITIES, ETC., founded 1720. See BAKER'S ANNUITIES.
ANNUITY POLICIES, STAMP DUTY UPON.-10s. for each £100 of the purchase-money. For sums below 100 the following is the scale: Not exceeding £5, 6d. ; exceeding £5 and not exceeding 10, Is. ; £10 and not exceeding £15, Is. Ed.; £15 and not exceeding £20, 25.; £20 and not exceeding £25, 2s. 6d. ; £25 and not exceeding £50, 5s.; £50 and not exceeding £75, 7s. 6d. ; £75 and not exceeding 100, 10s.
The Act fixing the above is the last general StampAct, 33 & 34 Vict. c. 97 (1870). The following sec. governs the scale :
75. Where upon the sale of any annu. or other right not before in existence, such annu. or other
right is not created by actual grant or conveyance, but is only secured by bond, warrant of attorney, covenant, contract, or otherwise, the bond or other instrument, or some one of such instruments, if there be more than one, is to be charged with the same duty as an actual grant or conveyance, and is for all the purposes of this Act to be deemed an instrument of conveyance on sale.
The 3rd portion of sec. 72 bears upon life annu. not granted under pol. :
Where the consideration, or any part of the consideration, for a conveyance on sale consists of money payable periodically during any life or lives, such conveyance is to be charged in respect of such consideration ad valorem duty on the amount which will or may, according to the terms of sale, be payable during the period of 12 years after the day of the date of such instrument.
ANNUITY POLICY.-Annu. like other pol. are various in form, as they are designed to cover various contingencies. An ordinary policy for an annu. during the life of one person granted by an ins. office is generally after the following form:
etc., is desirous, and hath proposed to effect an assu. with the
Ins. Co. for an annu. of
to be payable to him, or his assigns, during his life, and hath caused to be delivered into the office of the said Co. a declaration or statement in writing, bearing date the day of 187, signed by him, whereby it is declared amongst other things that his age did not at his last birthday exceed years; which declaration or statement he hath agreed shall be the basis of the contract between himself and the said Co. And whereas the said hath paid to the Directors of the said Co. the sum of £ as the prem. or consideration for the proposed assu. of the said annu. Now this indenture witnesseth, that the cap. stock, funds and property of the said Co., shall be subject and liable, according and subject to the provisions of the D. of Sett. of the said Co., to pay to the said or his assigns, from the .. day of henceforward during his life, an annu. or clear yearly sum of ., to be payable at the times and in the manner mentioned at the back of this pol. Provided nevertheless that in case any untrue or fraudulent allegation is contained in the declaration or statement, so as aforesaid delivered into the office of the said Co., or if any fact which ought to be stated therein has been omitted therefrom, then this pol. of assu. shall be void. Provided also that in case of this pol., or the moneys hereby assu. to be paid, becoming the subject of any trust whatsoever, the receipt of the trustee for the time being of the said pol. or moneys may be accepted as an effectual discharge to the said Co. for any moneys payable by the Co. under such pol., without the Co. being bound to see to the application of such moneys, or answerable or accountable for the misapplication or non-application thereof. In witness whereof, the Common Seal of the said Co., etc.
In the case of asso. not formed under the Lim. Liability Law, or the F. Sos. Acts, the usual "Limitation Clause" adopted in its other contracts would be inserted in its proper place in the pol. This is a matter of great importance.
It has always appeared to us desirable to embody a covenant that reasonable proof shall be afforded at any and all times of the continued existence of the annuitant. Also that proof of "identity" may be called for when deemed necessary by the Co. ANNUITY SOCIETY OF ROMSEY, HANTS.-This So. was estab. in or before 1770. In that year its principal articles were printed: and from these it is clear that the So. was founded upon the model of some of those existing in Lond. at that date. The So. was estab. at the Dolphin Inn, in Romsey; and its constitution very much resembles that of the local friendly sos. of a later date. We have spoken of this So. more at large in our hist. of ANNUITIES ON LIVES.
ANNUITY TABLES.-Annu. T. are the foundation on which all the subsequent monetary T. for life ins. calculations are built. Their peculiarities must therefore affect the whole structure. This was forcibly pointed out by Neison in his Contributions, etc., 1857. It is in view of this fact that we have endeavoured to furnish means of comparison of the results of the various annu. T. already pub., in our hist. of life annu. And further, in this view we shall be careful to give, in our hist. of each individual mort. T. from which annu. values have been deduced, an exact account of the materials upon which the same was based. By such means alone can the student obtain a complete mastery of the subject. Our art. on MORT. T. will contain much add. information. All we can do in the present art. is to indicate the nature of the lessons to be drawn from the facts hereafter to be supplied.
Speaking of the Tables of Halley, Simpson, Dodson, Dupré, St. Cyran, the Northampton Table, and Duvillard's-all without distinction of sex-Mr. Milne points out that these were all deduced from B. of mort. alone, and in places where the pop. was variable, and the numbers of the people at the different ages were not ascertained. Therefore, notwithstanding the attempts to supply their defects which were made by the eminent mathematicians who constructed them, none of them represented truly the laws of mort. in the places where the respective obs. were made. Consequently the values of annu. derived from them cannot be correct; but will in general be considerably less than the truth, even for the general average of the whole pop. of the places in which the obs. were made.
Mr. Milne offers the following additional and important obs. on the same tables : But those values of annu. are also objectionable on this ground—that the places they were intended for, and understood to be adapted to, were generally populous towns, containing a large proportion of poor persons dependent upon their daily labour for their supply of food from day to day, often with little forethought, and many of them engaged in unwholesome employments, amongst whom great distress is often endured by the comparatively high prices of bread and potatoes, or the low rate of wages when the scanty food they are reduced to produces typhus fever, and sometimes the dysentery among them, which carry them off in great numbers. And these visitations were much more common at the times when the obs. were made from which most of these tables were constructed than they have been of late years.
None of those causes of mort. operate sensibly upon the general average of those persons upon whose lives leases, or annu., and rev. or assu. depend: they being generally in the higher and middle classes. Neither do they produce much effect among the more deserving persons in the lower classes,
such as the members of friendly sos., and others who are both industrious and frugal enough to live within their incomes; nor indeed upon any who are in comfortable circumstances.
Hence it follows that the values of life annu., and consequently those of any pecuniary interests dependent upon the continuance or the failure of human life, cannot be correctly determined from obs. made on a whole pop. similar to those of the places these tables were constructed from. But this was not distinctly seen till of late years, and appears to be very imperfectly understood at present (1830), even by some who might be expected to possess correct information on the subject. The tables constructed by Dr. Price, both from the Swedish obs., and those made by Dr. Haygarth at Chester, throw valuable light on this subject.
It is to be remarked that while the English compilers of annu. T. have nearly always arranged them in the form of showing the number of years' purchase that the annuities are worth-a method having many advantages, since it facilitates the solution of various problems that arise in practice-the French writers almost invariably give the reciprocals of those values: that is, they form their tables so as to show the annu. which I will purchase. This is not so convenient for general use, nor so easy to be dealt with by persons not familiar with the working of decimals. We are glad to observe that many of the English ins. offices are now pub. the tables in both forms.
ANSALDIS DE ANSALDUS, pub. in Geneva, in 1698, De Commercio et mercatura descursus legales. To an ed. of this work in 1751 Straccha added two tracts. The work will be quoted in these pages. ANSELL, CHARLES, F. R.S., Consulting Act.—Mr. Ansell may be regarded as the father of the actuarial profession at the present moment. He was born in 1794, and entered the Atlas office as a junior in 1808, being then fourteen years of age. In 1810 he was regularly appointed on the staff. On the 19th June, 1823, he was appointed Act. of the Co., which position he held down to 12th April, 1864, a period of 41 years, when he retired from the active duties of the appointment; but still remains Consulting Act. Mr. Ansell also is or has been Consulting Actuary to the following offices: National Provident, Friends' Provident, Clergy Mutual; and during its short career of the Halifax, Bradford, and Keightley; and also of the Customs Fund. He has from time to time been called in by the Gov., or by different members of various Govs., to advise on proposals affecting the National finance-notably on the Gov. Superannuation Scheme, which in the end fell through. In 1864, when Mr. Gladstone was introducing the Gov. Life Ins. measure, he spoke of Mr. Ansell in terms of considerable commendation.
Mr. Ansell has been called before various Select Committees and Royal Commissions to give evidence. We may specify a few of these, viz., the Select Committee, which sat in 1841-3, to consider the law of Joint-Stock Cos.; before the Lords' Committee on Provident Asso. in 1848, and before the Select Committee on Friendly Sos. in 1849, and various other Committees on Friendly Sos.; also before the Select Committee on Assu. Asso., 1853.
It is, however, in the matter of F. sos. that Mr. Ansell has rendered the most important services in his day and generation.
În 1835 he pub. A Treatise on Friendly Societies, in which the Doctrine of the Int. of Money, and the Doctrine of Prob. are practically applied to the affairs of such Sos. numerous Tables, and an Appendix containing the Acts of Parl. relating to F. Sos.
This work was really issued under the direction of the So. for the Diffusion of Useful Knowledge, and attracted very considerable attention. It was one of the first efforts which had been made to impart an accurate knowledge of the scientific principles necessary to the proper conduct of these sos. to the persons mainly instrumental in their manage
A large professional practice in relation to the affairs of F. sos. at once resulted from the pub. of this work. We shall have occasion to speak of the work itself more at large under F. sos. We believe it was in relation to the affairs of one of these sos. that the following characteristic incident occurred. Mr. Ansell had been instructed by a late Bishop of London (Dr. Blomfield) to make certain calculations; and when they were completed he named as his fee 100 guineas. "A hundred guineas, Mr. Ansell!" the Bishop exclaimed, in surprise. Mr. Ansell replied that it was the usual fee in such cases. "Why," exclaimed the Bishop, "there are many curates in my diocese who don't get more than that for a year's services!" "That may be," quietly remarked Mr. Ansell, "but Actuaries are Bishops." "And," rejoined his Reverence, "know how to make a charge!" The fee was paid.
Mr. Ansell was one of the first to discover that the extended benefits conferred by the F. Sos. Acts some twenty years since, as to nomineeship, life pol., etc., etc., might be extended with great advantage to L. ins. asso. Accordingly several of the offices of which he was Consulting Act. regis, under the F. Sos. Acts, and so secured the full benefit of these advantages. About this, however, there arose a great outcry; and the Acts were ultimately modified so as practically to exclude such ins. asso. [FRIENDLY Sos.]
Mr. Ansell has within the last few weeks completed the Bonus Investigation of the National Provident a heavy task, conducted on the laborious method of English actuaries, and a notable feat, at an age approaching 80. He still remains active alike in body and mind. Mr. Ansell is or recently was High Sheriff of one of the Welsh counties. ANSELL, CHARLES, JUN., son of the above, Act. of the National since 1852.
trained in the Pelican, which office he entered in 1843: passing from there to his present position. Is Consulting Act. of Marine Casualty.
ANSTON, EDWARD, was Sec. of London Assu. Corp. from 1777 to 1787.
ANTEDATE. To date a document before the day of its execution. This is sometimes done with life proposals to bring them before a recent birthday. without the full consent of the office.
It should never be done
ANTE-NUPTIAL.-Before marriage, as an ante-nuptial settlement. ANTHONY, WILLIAM, blacksmith, aged 21, was apprehended in Oct. 1871, charged with wilfully and maliciously setting fire to the St. George Sufferance Wharf, Wapping; and was supposed to have set fire to 150 other buildings, houses, factories, and premises in the metropolis within the two preceding years. It was charged that this extensive incendiarism had been merely occasioned for the purpose of obtaining the fee, ranging from Is. to 5s., paid to persons giving the first information of a fire to the fire-engine and fire-escape stations. The prisoner had received more than 150 payments for giving the first information as to as many fires. There were various witnesses, who swore positively as to his identity. He was tried at the Central Criminal Court in Dec. 1871, and sentenced to 12 years' penal servitude. It is to be hoped that on his release he will take to a more honest vocation. It was stated at the trial that since his apprehension, the fires in Lond. from "unknown causes " had decreased about four-fifths. ANTICIPATION.-Doing or taking a thing before the appointed time; as sums lodged in anticipation of calls; or sums deposited with an office in anticipation of future prems. ANTILOGARITHM.-In its most common acceptation denotes the number to a logarithm. Thus, in the common system of logarithms, 100 is the antilogarithm of 2, because 2 is the logarithm of 100. Sometimes the term is used to denote the complement of the logarithm, or the difference of the logarithm from the next higher term in the series I, 10, 100, etc. Brande. ANTWERP.-We have occasion in several parts of this work to make reference to Antwerp as the great centre of maritime affairs some three centuries since. In the Memoirs of Dutch Commerce, a work attributed to the Bishop of Avranches, the meridian glory of this city is stated as having been about 1550, and is thus accounted for: The persecutions raised in Germany on account of religion in the reign of the Emperor Charles V.,—in France, under King Henry II.,-and in England, under Queen Mary, forced much people to settle in Antwerp, where a vast concourse of all European nations was to be seen: it being then the most celebrated magazine of commerce in all Europe, if not of the whole world; it having been at this time a common thing to see 2500 ships in the Scheldt, laden with all sorts of merchandize.-Anderson.
M. ins. was in practice here at a very early period. Malynes, and other writers, say that it had been learned from England. Their authority on this point does not seem very clear. Yet it is quite possible that some of the Lombards and others who had practised ins. here at an early period had afterwards settled in Antwerp. The earliest M. Ins. Ordin. promulgated in Antwerp is under date 1537. We have it upon authority that in 1620 M. pol. issued in Antwerp were expressed to be made "according to the custom of the Lombards in Lombard-st., Lond." But we suspect these words may only have been introduced into pol. issued to merchants and others residing in England.
The rate of int. for money in Antwerp in the 16th century was 12 p.c. p.a. We are told that, towards the end of this century, both Lond. and Amsterdam began to exceed this city in the greatness of their commerce. This was prob. after the sacking of Antwerp by the Spaniards in 1585. The most recent returns we have regarding M. ins. in this city in modern times are for the year 1847-8. Ten M. ins. offices ins. during the year £2,800.735, receiving in prems. therefor £61,392; paying for commission, £2524; for losses, 28,932; and for expenses of management, £5005. From these figures it appears that the average prems. for the year were nearly 2.19 p.c. on the sum ins.; that the losses were rather more than 103 p.c. on the sum ins, or 47.13 p.c. on the prems. received; that the profits were 24'575 p.c. on the prems.; and the average expenses of management about £500 for each co., or 815 p.c. on the prems. Two of the cos. combined F. ins. with M. bus. There is still in force in this city a code for the regulation of M. ins. bus.
There prevails in Antwerp an excellent regulation in regard to fires. If there be any suspicion of incendiarism, or any irregularity, the circumstances are reported to the officers of justice, and they investigate the matter. If the report be unfavourable to the parties concerned, they may be imprisoned and tried.
There have been several very serious fires here. In 1858 the Exchange was burnt, and the archives of the city destroyed. In 1861 the Great Napoleon Wharf was destroyed, involving destruction of property about £400,000, and 25 lives. Later, we believe, there was a petroleum fire, which greatly damaged the shipping.
ANTWERP, INS. ORDIN. OF.-The first document we have to notice under this head is an Ordin. under date 1537, addressed to the Bailiff of Antwerp. A portion thereof only applies to ins., to the following effect: Everybody who has given letters of assurance or surety, whether for a ship or for merchandizes at sea or by land, must satisfy his obligations, and pay the sums stipulated within two months after the loss occurs. It also pro
vided for the payment to the insured, on his giving security of the sum ins., subject to
litigation afterwards if there be a dispute on the production of a certificate in good form, or the testimony of two respectable men, that the ship, merchandize, or goods enumerated in the letters of assu. have become liable to average, or have been lost.
The next Ordin. is dated 29th Jan., 1549, and is much more in detail than the preceding. We can only deal with it in abstract. The preamble sets forth, that the Emperor had received frequently reiterated complaints respecting the ever-increasing losses and accidents at sea; that he had nominated commissioners to make an inquiry into the subject; and the result of their inquiry showed that losses must be attributed to the following
1. That each one as he pleased, shipowners had sent into distant and foreign countries dilapidated vessels of defective construction and small dimensions, insufficiently manned, ill-equipped, and badly
2. Voyaging in company had been neglected even in time of war.
3. Loans à la grosse had often been taken on ships equal to and even exceeding their values.
4. Ships had been ins. in excess of their value, and even the wages of every one employed in the service of the vessel.
5. The shippers had caused their merchandize to be assu. to its full value, and even the gain expected; not only against losses proper, but also against captures by the enemy.
6. Goods had frequently been shipped on board foreign vessels, which vessels were sometimes sold in advance to the enemy.
7. Some have thought to place themselves in surety by procuring safe conducts from the enemy, which has only served to give pirates a pretext to go on board and search the vessels.
The object of the Ordin. was to remedy these abuses. It contained various regulations, as to apparel, crew, arms, description of merchandize, mutual succour, bottomry; and 4 articles specifically on ins. designed to keep the sum ins. below the value of the ship or merchandize, and seems (says Pardessus) to have been made principally with a view to enforce self-defence against the "Scotch and other pirates.'
This last-named Ordin. prob, extended to the whole of the Low Countries, having been proclaimed by the Emperor Charles V. of Germany. In 1551 another Ordin. was proclaimed, which had nothing new as to ins.
We now reach the Ordin. of Philip II., under date of 1563. There has been some question about the proper date : Magens and Stevens each agree with the date here given, as indeed does Pardessus: only that he refers to the earlier Ordin., of which we have just given an account, while the other writers do not. Cleirac speaks of this Ordin. as of Philip II., pour les assurances de la Bourse d'Anvers. It was upon this Ordin. and that of Brussels that Adrian Verwer wrote his learned annotations. The Ordin. itself is said to have been drawn, or edited, by the great Siglius. We can only refer to the more special provisions of this Ordin., which is very voluminous. The first two sections are as follows:
I. All masters of ships and seamen shall be obliged to look well after and take due care of ship and cargo; and in case the same should run any risk or suffer any damage by their fault, negligence, ignorance, connivance, or means, they shall be bound to make the same good again.
II. In case the master, seamen, or other person, receives any hurt, is wounded, maimed, or killed, in resisting of or fighting against enemies or pirates, or in any other service of the ship, such losses and damages of the hurt, wounded, or maimed, together with the full wages, passage, and burial of the dead, shall be paid as a general average by the ship and cargo, for the defence whereof such accident happened: and that according to an award of arbitrators well versed in such affairs.
Here is a remarkable provision:
XI. In order to avoid all dangers and losses, the master shall be obliged, before he gets under sail, to ask the advice of the ship's company, and to follow the opinion of the majority of them, on penalty if he acts otherwise, and any damage happens by that means to ship or cargo, that he shall be obliged to make the same good again, if he be able: if not, his owners for him.
XIII. Should any person be guilty of embezzling or concealing any shipwreck'd goods, they shall be punished with fire, if it be the master of a ship, or a seaman; and any other person with the gallows; and be obliged to make restitution for the goods concealed besides.
Then follow a series of regulations regarding ships which damage one another; of ships' laws, breaches thereof, and other things relating to justice; then we arrive at what is termed the "Ordin. of Assurances," which embraces some 20 sections, some of them of considerable length. We can only give the more important: many of the others will be noticed under specific heads in various parts of this work.
I. No person shall make assu. upon any goods of value and importance which are not prepared, or are shipped on board vessels that are not fitted out, or are not of the burden, or do not go in the company, as is prescribed in this present Ordin. of Navigation.
II. All assu. upon goods and merchandize shall for the future be made after the custom of the Exchange at Antwerp; and the pol. shall be of the following tenor or substance, without adding of more clauses thereunto:
Tenor of the Policies.-Nicolas van Eemeren, dwelling in Antwerp, causes himself to be ins. according to the usage and custom of the Exchange at Antwerp, and the Ordin, of the King's Majesty, upon merchandize or goods shipped or to be shipped by him, or others for him and in his name, upon the ship called the St. Jacob, whereof Pieter Heerinck, of Amsterdam, is master, or any other, from the port, harbour, or road of Sevill, till and unto the aforesaid city of Antwerp, against all risks, dangers, or accidents, that may happen; which shall run at the risk of the assurers here underwritten, from the hour and date that the said goods and merchandize shall be brought to the above-mentioned port, harbour, or road, in order to be shipped on board the said vessel, or to put them into boats, lighters, or hoys, to be carried to this ship and laden on board of the same, to make the voyage aforesaid. And this above-mentioned assu. is to continue until the said goods shall be arrived at Antwerp, and be there brought ashore in good condition without any loss or damage: and