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The question has arisen whether, if the underwriter received information after the adjustment, which altered his views of the bona fide character of the loss, and therefore of his liability, he was at liberty to decline to pay. In the case of Hog v. Gouldney, which arose in 1745, the adjustment had been made and endorsed upon the policy as follows: Adjusted the loss on this policy at ninety-eight pounds per cent., which I do agree to pay one month after date.-Henry Gouldney. The plaintiff pleaded that after such adjustments the losses were always paid without further proof, and the Lord Chief Justice considered the endorsement as a note of hand, and said the plaintiff had no need to enter into proof of loss. Later decisions have modified this ruling; and in case of fraud the money can be recovered even after payment. The usual form of endorsement on the policy now is "Settled at £and signed by the underwriter, or in case of a Co.
by the duly authorized officer, or two or more directors.
In Life Ins. the term has no reference to claims.
In Fire Ins. complications equally great with those in Marine Ins. occur, more particularly in relation to "Floating Policies." But such adjustments are usually termed "apportionments," and under that head we shall speak of them. The officer making the apportionment is called an assessor. [ASSESSOR.]
In Hail and some other branches of Ins. the adjustment of the loss is termed an "assessment," and will be spoken of under that head.
In Cattle Ins. the losses are generally settled through the aid of an 'Inspector. ADJUSTMENT of Rights of Contributories, is a process which arises in the winding up an asso. either voluntary or under the Court. The debts being all paid, the surplus has to be disposed of to the contributories by this process. Cos. Act, 1862, secs. 109 and 133. ADJUSTMENT of Tables of MORT.-The process of adjustment or graduation by which a Life Table is made to represent as nearly as possible the progress of a human generation year by year through life, is employed upon the same principle that astronomers reduce,” as it is termed, all their observations to some common event or epoch. "By the term correcting or equating observations for nutation," says Herschel, is always understood in astronomy the getting rid of a periodical cause of fluctuation and presenting a result, not as it was observed, but as it would have been observed had that cause of fluctuation had no existence." The same process has to be employed in the construction of Mort. Tables. A simple instance may be furnished. Between the ages of 15 and 25, and indeed up to later ages, the mort. is kept down in towns by the influx of healthy people (chiefly females) from the country: thus in Lond. the annual mort. amongst young women, between the ages named, is only 6 per 1,000; while in the surrounding counties the mort. at the same age is from 7 to 8 per 1,000; and amongst young men in Lond., at the like age, it is 8 per 1,000; The solution is found in the fact that healthy young women of these ages go from the country into Lond., and other large towns, and obtain situations, and frequently, if they are taken ill, go back into the country to die. The effect is to make towns look more healthy than the country, at these ages. Mort. Tables, constructed upon extensive data from town and country life, would not be materially affected by such fluctuations. Those based upon town observations only are certain to be more or less so, unless subjected to the processes just enumerated. They would, in fact, exhibit fictitious decrements at the ages enumerated if this "correction "-which implies the preceding processes-were omitted.-Ins. Guide and Hand-book.
In 1857, a paper from Mr. Peter Gray on Mr. Gompertz's method for the adjustment of Tables of Mort., was pub. in the Assu. Mag. (vol. vii., p. 121), and therein the writer offered the following remarks:
When an observation has been made for the purpose of determining the mort, which has prevailed during a specific time in the community observed upon, it is usually found that the series of prob. of living a year at the various ages thence deduced is very far from conforming to our ideas of what an exponent of the law of mort. ought to be. Instead of a series exhibiting throughout its extent a gradual and progressive change of value in passing from each term to the next, we have one showing but a faint approach to the desired regularity. This is just what, from the circumstances in which such obs. are usually made, we ought to expect. It is not often that the community subjected to obs. is sufficiently extended to furnish us with such a series of average results as can alone fitly figure forth the law of mort. Now if our object is only to ascertain the mort. which has prevailed during the period to which our obs. has been restricted, nothing remains to be done-the series obtained as above is a correct representation of that mort. But there is usually another ulterior object in view. What we generally want is a series to serve as a basis of deductions for the future, and which consequently shall exhibit, not the incidental mort, of a limited period, but the normal mort. (so to speak), which would have been found to prevail had the observation been conducted on more extensive bases. Keeping in view then that we have no other means of arriving at, or rather of approximating to the series in question than by subjecting to treatment the series already obtained, it becomes a matter of importance to determine what is the mode of treatment likely to conduct us to the most satisfactory result. Various methods have been devised and employed by computors who have been engaged in the construction of tables for the adjustment of their results (for so the operation I speak of is termed), and it is one of these that it is the object of the present paper to explain and illustrate.
The method in question is that which was devised by Mr. Gompertz, and given to the world in the Phil. Trans. for 1825. Although so long before the public, it is far from being so well known as it deserves to be.
In nearly all the methods of adjustment heretofore employed, with the exception of Mr. Gompertz's, the object chiefly kept in view has been, simply (doing, of course as little violence as possible to the orig. results), to secure some sort of regularity of progression in the series of prob. of living a year; and this without reference to any law in accordance with which this progression ought to be regulated. Mr. Gompertz, on the other hand, sets out by proposing for our acceptance a principle with respect to
the progression of the rate of mort., which, on its being admitted, leads to the method of adjustment of which we speak.
He then proceeds to explain Mr. Gompertz's Law of Mort., and to expound its formulæ, in which it is not necessary to follow him.
Two able papers On Interpolation, Summation, and the Adjustment of Numerical Tables, appear in vol. xi. Assu. Mag. by Mr. Woolhouse.
It will have been gathered from the foregoing that various methods of adjustment have been employed. A controversy has recently (1870) arisen between Mr. Woolhouse and Mr. Filipowski, as to the plan which was adopted in adjusting the NEW EXPERIENCE Tables. Mr. Woolhouse said on this occasion:
I have for many years made the adjustment of tables a special study, and the subject is one the investigation of which is beset by formidable difficulties, which still present to mathematicians an interesting field for future research. The particular method by which the New Experience Tables have been adjusted by me, and which I am assured will be practically useful in other departments of science, is mathematically satisfactory in principle, and the manipulation of the same has proved to be both effective and simple in practice, and such as to warrant its general adoption.
Mr. Filipowski advocated a method altogether different from that which he believed had been adopted. We cannot follow the controversy (see Ins. Record, December, 1870). [GRADUATION.] [MORT. TABLES.]
ADLARD, GEORGE, an English gentleman resident in New York. He has represented several English Ins. Cos. doing bus, in the U.S., viz., the Monarch, the Unity, and more recently the Queen. He has written some able papers on historical subjects, and to him we are indebted for the discovery, in the Register Books of the Privy Council, of the controversy between the two first English Fire Offices, which will be found detailed in our HIST. OF FIRE INS.
ADLER, MARCUS N., M.A., F.I.A., Act. of Life department of Alliance since 1867. Mr. Adler entered that office in 1857, for the purpose of acquiring a practical knowledge of ins. He had studied under the late Professor De Morgan, at University College, and had assisted a son of that gentleman in the estab. of the Mathematical So. In the Alliance he had the good fortune to come under the immediate notice of the then distinguished Act. of the Co., Mr. Gompertz, who discerned and appreciated his attainments. In 1858 Mr. Adler communicated to the Assu. Mag., "Formula for an Approximate Value of Annuities at Simple Interest."
In 1864 Mr. Adler prepared a paper :-Some Considerations on the Government Life Annuities and Life Assu. Bill, in which was contained many suggestions of a practical character. He had the satisfaction of seeing that most of his suggestions were embodied in the measure adopted by the Government. The paper is printed in vol. xii. of Assu. Mag. In 1865, he prepared a further paper :-On Government Annuity and Assu. Rates and Regulations, in which he answered some criticisms on the preceding measure (Assurance Magazine, vol. xii., p. 265).
In 1866 Mr. Adler communicated to the Assu. Mag. (vol. xiii) a very interesting memoir of Mr. Gompertz, F. R.S., which we shall have occasion to notice hereafter. It seemed only appropriate that the man who was ultimately to succeed to the chair of that distinguished mathematician should write his memoir.
In 1868 Mr. Adler read before the Institute an instructive paper on "Ins. bus. in Germany ;" and in 1870, he read before the Working Men's Club Union (under the presidency of Lord Lichfield), an interesting paper on F. Sos.
ADMINISTER (To).—To dispose according to law of the estate and effects of a person who who has died intestate—that is, without leaving a will. This is done under the authority of a legal instrument called "Letters of Administration." If these be granted to a male, he is called "Administrator," if to a female she is called "Administratrix." Where there are any legal difficulties as to who shall administer, the process is effected through the aid of the Court of Chancery, in what is termed an "Administration suit." ADMINISTRATION. See LETTERS OF ADMINISTRATION.
ADMIRALTY COURT.-This is a Court of great antiquity. In the reign of Edward I. it was said to have existed "time out of mind." All things arising upon the sea, as causes of merchants and mariners, and whether civil or criminal, were tried before the Lord High Admiral, who was to judge them in a summary way according to the laws of the sea then known. Edward III. appears to have placed the Court upon a better footing in 1357. The rules by which it then came to be governed were the ancient laws, customs, and usages of the sea, including such selections from the laws of Rhodes and Oleron, the Waterrecht of Wisbey, the Hanseatic Ordinances, the Consolato del Mare, the Marine Ordinances of Louis XIV. (1681), and others, which from their natural justice and sound policy obtained generally in the Admiralty Courts of Europe.
Richard II. limited the jurisdiction of the Court. It is probable that previously the Court took cognizance of all causes of a maritime nature, whether arising within the king's dominions or out of them. It would seem to be the proper province of the Court to deal with causes wholly arising upon the main sea, and not within the precincts of any country so that being out of the reach of ordinary Courts of Justice, they are to be remedied by a peculiar court of their own. The judgeship of the Admiralty was constituted in 1514: the judge being styled the Lieutenant of the High Admiral.
By 2nd of Henry IV. c. 11 (A.D. 1400), an Act was passed: A remedy for him who is wrongfully pursued in the Court of Admiralty. This Act was repealed in 1861.
The High Court of Admiralty was formerly held at St. Margaret's Hall in Southwark. During the plague of London it was held at Jesus College, Oxford; the principal of that College being judge of the Court. After that it was removed to Doctors' Commons. Blackstone says its proceedings were according to the civil law, and therefore the Court was held with the Superior Ecclesiastical Courts in Doctors' Commons. In later times the judge has generally been an eminent Doctor of the Civil Law. Before the Revolution there appears to have been two judges; afterwards but one.
At the present time there are two divisions of the Court-the Prize Court and the Instance Court. In the Prize Court the judge has jurisdiction, by virtue of a Commission issued under the Great Seal, at the beginning of every war, to proceed upon all and all manner of captures, seizures, prizes and reprisals of ships or goods which are or shall be taken, and to hear and determine according to the course of the Admiralty and the law of nations. In the Instance Court also the jurisdiction exercised by the judge is conferred by a Commission under the Great Seal. This is a municipal tribunal; it is a court of record, and its decrees and orders for the payment of money have the same effect as judgments in the Superior Courts of Common Law.
This Court has jurisdiction in cases of private injuries to private rights arising at sea, or intimately connected with maritime subjects. Its jurisdiction in cases of torts is confined to wrongs committed at sea, or at least on the water, within the jurisdiction of the Admiralty. Such are suits for (1) Sea batteries; (2) Collision of ships, for which there is also remedy at common law; (3) Restitution of possession of a ship where there is no bona fide claim to withhold her; and (4) Piratical and illegal takings at sea.
In cases of contract its jurisdiction is confined to those of a maritime nature, as (1) Between part-owners of a ship-Equity has a concurrent jurisdiction in this case; (2) Mariners' and officers' wages-also recoverable by action at law, or before a magistrate; (3) Pilotage; (4) Bottomry and respondentia bonds; and (5) Salvage-which is also recoverable by action at law, or a summary hearing before magistrates, or the Cinque Port Commissioners; (6) Whenever any ship is under arrest by process issuing from the High Court of Admiralty, or when the proceeds of any ship having been so arrested have been brought into the registry, the Court has jurisdiction to take cognizance of all claims and causes of action of any person in respect of any mortgage of such ship, and to decide any suit instituted by any such person in respect of any such claim or causes of action respectively (see 3 & 4 Vict. c. 65).
The Court now sits at Westminster, and its proceedings are still greatly conformable to the Civil Law in conjunction with Marine Customs. There is a Court of Admiralty in Ireland, but the Scotch Court was abolished by 1 Wm. IV. c. 69. The practice of the Admiralty Court in England has been much modified by recent enactments-24 & 25 Vict. c. 10 (1861), and 27 & 28 Vict. c. 25 (1864).
It appears at first a little remarkable that, while so many questions incident to Marine Ins. fall within the jurisdiction of the Admiralty Court, no action upon a policy of Marine Ins. can be brought there. Blackstone shadows forth the reason for this: "and indeed it hath been further holden that the Admiralty Court cannot hold plea of any contract under seal." This rule, as we have seen, has been modified in recent practice; but actions on policies of Ins. still have to be brought in the ordinary Courts. [POLICIES OF INS. COURT.]
ADMISSION OF AGE. The technical process of endorsing on the policy "age admitted" after proof has been supplied. [AGE ADMITTED.] [AGE, PROOF OF.] ADMISSION OF CLAIM.-In Life Ins., after all the required evidence and proofs have been sent in to the office, and the directors have become satisfied of the bona fides of the case, the next process is to "admit the claim," payable at 3 or 6 months-as the policy shall provide. In Accident Ins. death claims are dealt with in the same manner; while in cases of non-fatal injury the admission is in the form of a letter to the claimant, telling him to call upon the agent of the Co. where he will find a cheque for the amount, on signing the form of discharge.
ADULTERATION OF FOOD was prohibited in England as far back as 1267. Much attention was called to the subject in 1822, through Mr. Accum's book called Death in the Pot; and in 1855, through Dr. Hassell's book, Food, and its Adulterations. In 1836, by 6 & 7 Wm. IV., c. 37, adulteration was made a criminal offence. It is now provided by 23 & 24 Vict. c. 84 (1860), that every person who sells any article of food or drink, with which, to the knowledge of such person, any ingredient injurious to health has been mixed, or sells, as pure, any such article adulterated, and not pure, shall, on summary conviction, forfeit a sum not exceeding £5. On repetition of the offence, offender's name may be pub. at his expense in newspapers. Parochial chemical analysts may be appointed. See Baker's Laws relating to Public Health.
ADULTERY: its Effect on Lond. Marriages. Gregory King, who wrote in 1696, gave as one reason why Marriages in Lond. produced fewer children than country marriages, "the more frequent fornications and adulteries. [MARRIAGE.]
ADULTS, DEVELOPMENTAL DISEASES OF.--These rank as order 2 in the Class of DEVELop
MENTAL Diseases, and embrace Paramenia and Childbirth. The deaths in England from these causes show but very slight fluctuations. In 1858, they were 2114; in 1862, 2198; and in 1867, 2461. Over a period of fifteen years ending 1864, they averaged about 118 per million of the population living.
The deaths in this order are limited to females, and in 1867 were 2461. Of these, 5 took place at ages between 10 and 15; 141 between 15 and 20; 361 between 20 and 25; 1006 between 25 and 35; 865 between 35 and 45; 80 between 45 and 55; and 3 between 55 and 65.
In vol. vi. of the Assu. Mag. (1856) will be found an abstract of an able paper by Professor A. Buchanan, M.D., On the Physiological Law of Mort. and on certain Devia tions from it observed about the commencement of adult life.
AD VALOREM, according to value.
ADVANTAGEOUS AND GENEROUS SO., LIMITED : founded in 1711, for Ins. on Marriage. [MARRIAGE INS.]
ADVANTAGEOUS INSURERS, "upon the lives of men, women, and children, for the benefit of themselves and posterity for ever." An asso. under this title was projected in October, 1712, in printed "proposals," after the manner of the time. The following is an outline of the scheme in the projector's own words:
If such an ins. can be estab. as that a man by paying 255. per quarter, and never more, to a jointstock for 9 years only, can secure to himself, his heirs, executors, or whomsoever he pleases, upon the decease of the person insured upon, whether himself or any other, from £50, if that life drops the first year, to £75 if the second, and so £25 increase every year, till it comes to £250 or more the 9th year, about which time all payments to the stock will cease, and so every year after for ever £250 to the claimant of each person insured upon who should happen to die, would it not be deemed a noble invention, since every contributor, his heirs, etc., could receive £50 for the first £5 he pays, and about £25 for every other £5 he is out of pocket to the stock, whenever the person insured upon dies; and also have an interest in the joint-stock, so as himself, his heirs, etc., for ever to have liberty to nominate another life to be insured upon, and have a like sum paid unto his family again, when that life drops; and then insure again as before, and so on perpetually, without paying the sums mentioned for more than 9 years, which amounts in the whole but to £47 10s., that any one man will pay to the stock for insuring upon one life, to secure a good estate to his family for all succeeding generations.
The projector continues:
And that such a Co. for Ins. upon lives for the benefit of posterity may be solidly founded, and fairly governed by its own members, more advantageously for all and every one of them than any other yet estab., the author of these papers conceives the following articles and scheme annext will truly demonstrate to all that peruse them.
A most elaborate scheme, with tables of calculations, was annexed, and there is the following intimation:-The scheme was calculated and the articles drawn up above a year since, but not pub. till now, by reason of the many fallacious projects (before taken notice of and justly put down by Act of Parl.) that were then offered to the public. [L. INS., HIST. OF.]
ADVANTAGEOUS SO.- This So. was constituted out of several Subs. for Birth, carried on at Parr's Coffee House, Broad-street, Ratcliffe, early in 1711. It afterwards amalg. with the Generous So. and became known as Advantageous and Generous So. [BIRTH INS.] ADVANTAGES OF INS.-These will be made apparent in many parts of this work; especially under the head of FINANCE OF LIFE INS., and in a selection of notes from various writers under INS. and LIFE INS.
ADVENTURE.—The sending to sea of a ship or goods at the risk of the sender.—Lex. Merc. An adventure is now more generally understood as a speculation in goods sent abroad under the care of a supercargo, to be disposed of him to the best advantage for the benefit of his employers. ADVERTISEMENT.-Any Co. regis. under Cos. Act, 1862, must give notice by adv. "in some newspaper circulating in the district in which the regis. office of the Co. is situate" before closing the register of members. In all adv. the Co's. name and full title must be inserted. ADVERTISING.-It has long been a problem in the conduct of the affairs of an ins. asso., What benefit is to be derived from advertising? We think the answer may be rendered as tersely as the question. It familiarizes the name and bus. of the office in the minds of the public-that is all. The bus. resulting directly from advertisements is frequently of such a character that it had better be avoided. Advertisements may be properly regarded as seed sown; the harvest follows at an appropriate distance of time, and can only be effectually garnered by experienced workmen. Mr. Langley put the case very well in his Vade mecum:-" Boards and door-plates and wire-blinds are of little value to an agency; and advertisements are scarcely worth the expense, unless backed up by diligence and intelligent activity." The real problem is, How to obtain the largest return for a given sum of money expended? That depends upon the nature of the bus., and a variety of circumstances, regarding which experienced advertising agents may be consulted with great advantage. Advertising is a science. ADVOWSON.-The right of presentation to a church or benefice. Advowsons are of two kinds; appendant, and in gross. Appendant is a right of presentation dependent upon a manor, lands, etc, and passes with and as appendant to the same. Advowson in gross is a right subsisting by itself, belonging to a person, and not to a manor, lands, etc.
Advowsons are either presentative, collative, or donative. Presentative is where the patron does present or offer his clerk to the Bishop of the Diocese to be instituted in his church. Collation differs from institution in this, that institution is performed by the Bishop upon the presentation of another, and collation is his own act of presentation. advowson Donative is when the King or other Patron, in whom the advowson of the church is lodged, does, by a single donation in writing, put the clerk into possession without presentation, institution, or induction. Advowsons were formerly mostly appendant to manors, and the patrons parochial barons. The lordship of the manor and patronage of the church were seldom in different hands till advowsons were given to religious houses. Now they are generally divided and dealt with separately. It is in reference to valuations of advowsons that the above definitions become important. [NEXT PRESENTATIONS.]
There are many Tables extant by which advowsons may be valued, as will have been seen by our list of ACTUARIAL TABLES. Of the modern Tables, Willich's has probably been more generally used than any other. But in 1864 Mr. Samuel Brown prepared two valuation Tables, based on a Mort. Table, deduced from observations amongst the clergy over a period of a century—1760 to 1860—made by the Rev. J. Hodgson, late sec. of the Clergy Mut., which will probably supersede all others. The Table as to Advowsons is as follows. That of Next Presentations will be given under that head. Table showing the present Value of an Advowson; the Incumbent in possession being at any age from 24 to 90. Interest at 5 per cent.
Example.-Required the value of an advowson where the age of the present Incumbent £8 os. 1d.; therefore of £1,000
is 50, and the net ann. income £1,000; value of £1
£8,005 145., and so in proportion for any greater or lesser amount. Note. Before using this Table, all charges, etc., must be deducted from the Income of the Living, and it is here that the experience of an actuary is sometimes of great importance. ÆGIS FIRE AND DILAPIDATION, AND ENGLISH AND CAMBRIAN INS. Co., founded in 1825 with a proposed cap. of £1,000,000. The F. and L. branches appear to have been worked distinctly; but the capital applied to each. The Dilapidation branch was worked with the former. In the F. branch there was no special feature, except that "floating policies" on goods and merchandize were put prominently forward.
The distinguishing feature of the Co. was its Dilapidation department, and here we shall quote the language of the prosp. :
This branch of the Co. is entirely orig., presenting a mode of ins. of the utmost importance. To indemnify parties from the charge of repairs and dilapidation in buildings of every description is the plan proposed to be adopted.
It is sufficiently obvious that although a small ann. sum can usually be spared from the income of every individual, yet a heavy demand occasioned by the necessity of putting a building in thorough repair, at the termination of the lease, is often the means of involving a tenant for life or lessee in difficulty. The advantages to landlords, patrons of livings, colleges, and other ecclesiastical corps., of having thus the means of compelling tenants and incumbents to ins. against the dilapidation of the buildings they occupy at the expiration of a given period, are obvious.
Then follows a Table of "Dilapidation rates," rates for ins. £100 payable for dilapidation at the end of a Lease, which will terminate in not less than, 40 years and upwards £1 0 3
1 6 3
I 14 3
20 years and upwards £3 4
4 16 3
12 3 6
The Table in the prosp. is given for every year from 40 down to 7. The next Table is-Rates for ins. £100 payable for dilapidations on the death of an Ecclesiastical Incumbent, or of a Tenant for Life, or on the death of a person on whose life a Lease depends: