average exactly of the age at which they stand in the books of the Co., excepting always in the cases of add. for impaired lives. [AGE, PROOF OF.] Dr. Ward, in his Medical Estimate of Life for Life Assu., says, regarding age: The medical referee has nothing to do with actual proof of age, but only to remember that it is relative rather than positive; and that some persons from inherent weakness of constitution, bad habits, or other exhausting causes, grow old before the age of 40, while others far advanced in years are virtually young as regards effective performance of function and vigour of constitution. Where any great discrepancy exists between the real age and that apparent in the aspect, gait, and force, it will be necessary to ascertain if possible the cause of such, or, at any rate, to conduct a more searching examination as to health and habits. AGE ASSU. Co., founded in 1851, with an authorized cap. of £100,000, in 10,000 shares of 10. The prosp. said, "It has been calculated that not more than one in ten of the heads of families amongst those likely to ins. have yet availed themselves of the advantages of Life Assu.; and considering the fact, and the continued increase of pop., there is ample bus. for many new offices." Again, "The large profits which have been made by existing Cos. have been produced by a very limited amount of bus. compared with what might be obtained if more liberal principles were acted upon by the offices." Among the features of the Co. were these: A surrender value of "at least one half the prems. paid" was to be given on whole-term pol. Lapsed pol. might be renewed, "without proof of health," if the omission to pay had been "accidental." Married lives were to be ins. at lower prems. than unmarried ones. Policies indefeasible. Deposit Ins. granted. Policies payable to nominee of Ins., “thus saving the great expense and delay of attending the proving a will or obtaining letters of administration." It also paid "int. on all policies from the death of the Ins.' Finally (said the share prosp.), "there can be no doubt that the public will gladly avail themselves of these, and of the other advantages offered by this Co., and as they will give an ample profit to the office, a large and very remunerative bus. must be obtained." A considerable portion of the cap. was subs., but an obstinate or short-sighted public did not see all the advantages offered by the Co., or if it saw them failed to come in. The Co. in 1856 amalg. with the Engineers, and was afterwards known as the Engineers and Age; and in 1859 that Co. amalg. with the English and Irish Church, which see. Mr. William Owen was consulting actuary. AGE, OLD. See LONGEVITY, and OLD AGE. AGE, PROOF OF.-It is one of first essentials in Life Ins. and annuity transactions that the real age of the lives interested or put forward as the basis of the transaction should be correctly stated. In the case of endowments and reversions, and indeed in all contracts relating to the duration of life, the present age must become an important consideration as influencing not only pecuniary values, but even the very acceptance or rejection of the proposal. In Life Policies there is generally a condition to the effect that reasonable proof will be required of the date of birth, unless that fact shall have been previously estab. and the "age admitted." [AGE ADMITTED.] The usual evidence tendered is a baptismal certificate, extracted from the parish books by the officiating minister; or, in the case of Dissenters, of an extract from the registers of births and baptisms kept by those bodies; or, in the case of Jews, from the register of births and circumcisions kept at the synagogue; in every case signed and certified as a true copy, by the officer to whose custody the original is entrusted. Parish registers are not evidence of the time of birth, but of baptism only; since it is not the duty of the minister to register the former. A person may be baptized when considerably advanced in years; many registers do profess to give the date of birth, and where they do such a circumstance should be regarded. Since 1837 in England the General Registration Act has been in force. It will soon begin to bear fruits in the direction we are now speaking of. Similar Acts have since been passed for Scotland and Ireland. [GENERAL REGISTRATION.] When the registers, under the old system, do not contain the necessary proof, recourse must be had to secondary evidence; such is the production of an entry in the family Bible or Prayer-book, or even in an almanack. A statutory declaration made by some member of the family or other person who can speak from personal knowledge of the fact testified will sometimes suffice. Mr. Bunyon says: It is notoriously true that evidence on this point is often very difficult to obtain; as, for instance, in the case of children which have been born abroad, or those of dissenters, of whose baptism no evidence is preserved; or where they have been privately baptized, and no entry made in the parish books; or where the books themselves-and this is especially common in Ireland-have been imperfectly kept. After the death of the party the proof becomes doubly difficult. Secondary evidence which might have been suggested is then lost. It does not follow that because the evidence is difficult to obtain, that it should therefore in every case be dispensed with. Much must be left to the discretion and good faith of the officers of the company in which the life is insured. Mr. W. T. Thomson speaks upon the subject as follows. (Proof sheets): It has been the practice among some offices to require proof of age at death, if not previously afforded. This we conceive to be most unjust; it ought to be given or required at the commencement of the contract, and ought never to be delayed till a claim arises; both assurer and assured are wrong in not attending to this, but more particularly the office, if they consider themselves entitled to require it at death. One case has come under our notice lately, where proof of age was required thirty-two years after the policy was effected. The gentleman had been in the service of the Hon. East India Company, and it was discovered that in some official declaration to them he had made himself out four years older than stated to the office. The parties could procure no evidence to show that this was wrong, though they felt morally convinced that it was so, and were obliged to submit to a deduction from the sum assured. The amount assured was £6000, and the difference of premium, with compound interest, amounted to upwards of £2000, which the office held themselves entitled to deduct at settlement; but they did not insist upon their full rights, and gave a deduction of one-half. Still the case, although hard enough on the representatives, might have been worse, as the policy could have been reduced altogether, on the ground of mis-statement in the original proposal. Our advice is, that evidence of age should always be produced at first. It is usual, where the mis-statement in age is believed to have been accidental, to rectify the matter by deducting from or add. to the sum ins. No more reasonable method can be devised. AGE, "PUT UP."-In the case of impaired or diseased lives, it is usual where they are taken at all to make an add. of years, intended to be equivalent to the degree of impairment in each particular case. This is termed "putting up" the age. In actuarial valuations all such cases require special treatment. [DISEASED LIVES.] [VALUATION.] AGENCY.-Agency in a legal sense implies legal duties and responsibilities. These we shall speak of generally under AGENT. AGENCY COMMISSIONS.-As most of the Ins. Asso. other than Marine Cos. obtain the greater proportion of their bus. through the introduction of their agents, it follows that a commission must be allowed to such agents for their services. The rates of commission vary not only with the classes of bus. transacted, but in some instances amongst the offices carrying on the same bus. It must be understood therefore that the following are only approximate rates : Fire Ins. usually 10 p.c. on the prem. both new and renewal, with a procuration fee in add. for new policies. When the duty on Fire Ins. was in force, some offices allowed agents 2p.c. on the duty. Life Ins. usually 10 p.c. on the first prem. and 5 p.c. on renewals. District and general agents have larger allowances to cover expenses and time employed in their duties. Accidental Ins., generally 10 p.c. both on new prem. and renewals. Glass Ins. 12 p c. on new prems. and 10 p. c. on renewals. Hail-Storm Ins. 10 p.c. on new and renewals. Cattle Ins. 12 p.c. on new and 10 p.c. on renewals. Steam Boiler Ins. 10 p. c. on new and 5 p.c. on renewals. On Marine Ins. there is a brokerage of 5 p.c., and a discount for cash paid within a certain number of days, frequently 10 p. c. The foregoing commissions relate to ins. in England. On the Continent of Europe, and especially in France, the commissions range much higher. But the agents generally give up their whole time to the bus., and become much more proficient than ordinary agents in Eng. In the U.S. the commissions are much the same as in England. But there also the agents confine their attention solely to ins. bus., often acting for several large and important Cos. at the same time, and making princely incomes by reason of the enterprise they throw into the bus. [BROKERAGE COMMISSION.] The practice of giving commissions for the intro. of life bus. was first introduced early in the present century, and then only by one or two of the more enterprising offices. Mr. Francis Baily, writing in 1810, thus expresses himself on the subject :— Many of the public cos. who do not make any return of the profits to the assured allow a liberal prem. (generally 5 p.c. on the payment made) to any person who will procure an ins. to be effected at their office; and this commission is also allowed to any person who makes the annual payment, provided it be not the party himself!! An artifice which is easily seen through: but which opens such a door to fraud and imposition that it cannot be too severely reprobated. And however much it may be sanctioned by the Directors in their public capacity; we are all aware what their emotions would be if they discovered any of their tradesmen tampering with their own servants in this opprobrious manner, since they must well know who would eventually pay for it. I omit to give the names of those cos. who have adopted this nefarious practice, under the hope that such a mean and improper artifice will not be encouraged in future. There are Life Offices which have never adopted the commission system, viz., the Equitable, Lond. Life, Metropolitan and Mutual; and there are some, as the various Legal Ins. Offices, which have no agents in the strict sense of the term, but allow a commission to all solicitors who introduce bus. [solicitors in the English, not the American sense.] Some of the non-legal offices also allow a commission to solicitors intro. bus., whether agents for the Co. or not. Several other offices, as the Economic and National Provident, have been contemplating the abandonment of the agency system; but we believe have come to no actual decision to that effect. AGENDA.-Lat. Things to be done. Hence the name of the book used by the Chairman of the Board. Most Ins. Asso. have "agenda books" prepared in relation to any special points in their bus., so that the board agenda assumes the character of a current report on the position of the asso. A most excellent method. AGENT. A person appointed to transact the business of another.-Law Dic. AGENT, DUTIES AND RESPONSIBILITIES OF.-In all questions arising upon the acts of agents, it is a settled rule of law that such acts are only binding upon the principal, to the extent of the agency or delegated power; and for any such act, the power may be either express or incidental to the office conferred. The employment of an agent in any particular capacity gives the necessary authority to act under ordinary circumstances only. If an emergency occurs, an act of agency in excess of authority is upon the agent's own responsibility, and he must take the chance of the approval or disapproval of his principal. So an action may be brought against an agent who, by making an inaccurate statement as to the extent of his authority, induces any person to enter into a contract. While the principal duties of an ins. agent are to obtain applications to ins., and to receive and remit the necessary prems., other duties often for convenience devolve upon him. The powers and responsibilities of an agent are hence frequently considerable. As a rule the agent can only enter into a temporary contract pending the decision of the Co., such as the accepting a Fire Ins. risk by deposit receipt until the office has determined upon the proposal. Where an agent is publicly advertised and officially accredited as the agent by the Co, he is assumed by the public to possess the powers customarily entrusted to Ins. agents. It is therefore essential that he should scrupulously keep within the instructions issued for his guidance.-Ins. Agent. Persons acting in the capacity of agents for Ins. Asso. must closely follow the instructions of their principals (the asso. and its proper officers), and by no means attempt to exceed the limits of the delegated authority. They cannot bind the Co. so as to alter the conditions of any contract of ins. or revive a lapsed policy without the express previous approval of the Directors; and cannot involve it in any fresh liability by pledging it to any new or additional ins. contract. Neither are they empowered, without express authority, to receive notices of assignment, notices of claim, or other notices on behalf of the Co., which shall be binding upon it.-Bunyon. 66 In the case of Acey v. Fernie, an agent issued a receipt after the lapsing of a policy, such receipt bearing on the face of it a clause to the effect that if the receipt was not taken up within 15 days of the prem. becoming due, it must be returned to the office, as after that period, the ins. being cancelled, the several receipts will be of no avail." It was held that the agent had no authority for what he had done, and that the receipt proved it. An agent cannot delegate his rights to another so as to bind the principal, unless expressly authorized to nominate a sub-agent. The insured is liable for any misrepresentation or concealment made by an agent acting under his orders, and who is in any wise instrumental in procuring the ins. ; and the concealment of any material fact known to the agent, even though not known to the insured, may avoid the contract. This principle was settled in the case of Fitzherbert v. Mather, by Lord Mansfield in 1785; and by Lord Ellenborough in Gladstone v. King in 1813. They were both Marine Ins. cases. Similar decisions have been given in the U.S. If the agent of the office act also as agent of the insured in effecting the ins., even an unintentional mis-statement through such agent may be a breach of warranty. This was decided by Lord Lyndhurst in Parsons v. Bignold, 1846. When an agent undertakes to obtain an ins. for a third party, he should execute the commission with diligence, for he may be liable to an action for neglecting to do so; and this is equally true whether the party undertaking the commission is an ins. agent or not, and although he may act gratuitously in the matter, as was settled in the case of Wilkinson v. Coverdale (1793). Should a discretion be allowed him, he will be liable if he deals with asso. or persons who are not responsible; and the measure of his liability will be that of the insurers. Should he be unable to effect the policy, to prevent any right of complaint or liability attaching against himself, he should give notice of his inability to the intending insurer. In the case of Linford v. The Provincial Horse and Cattle Ins. Co., which came before the Master of the Rolls in 1864, it was held that an ordinary local agent of an ins. co is not, without special authority, authorized to bind the Co. by a contract to grant a policy. The facts of the case will be given in more detail in the hist of that particular Co. The power of a general agent for a mercantile company must be ascertained by the usage of the trade; and the mode of transacting bus. in that department in which he is employed will, in the absence of express directions, often determine a doubt as to the liability of the principal. The principal officers of an Ins. asso., such as the managing director, sec., or actuary, fill the character of general agent, and possess all such powers as may be necessary for enabling them to conduct the buisness of their offices. They may be responsible for the fraud of the Co., and for false accounts issued by it, in like manner as directors may be, and that not only in damages at common law, but penalty by statute.— Bunyon. As between the agent himself and the Co. if the directors appoint him, and allow him to act as agent of the Co., and he does so act bonâ fide, and without notice of any irregularity in his appointment, the Co. will be liable to him for his salary, although he may not have been appointed precisely in the manner prescribed by the regulations of the Co. This was estab. in Browning v. Great Central Mining Co. Mr. Lindley, reviewing this and other decided cases, offers the following important observations: These cases, it is submitted, warrant the proposition that if the directors of a Co. permit a person to act as its agent in matters within the scope of the bus. of the Co., and in matters in which the directors have power to act by an agent, such person, whether irregularly appointed or not, is, as between the Co. and third parties, dealing bona fide with him, without notice of his warrant of proper authority, the agent of the Co. for all the purposes for which he is employed. But his authority does not extend beyond these limits; and the above proposition and the cases supporting it are in no way invalidated by others in which Cos. have been held not bound by acts done by their agents, when acting beyond the limits set by the nature of their employment. In the event of an agent subs. a policy of Marine Ins. on behalf of an underwriter for a sum in excess of a limitation imposed upon him by the latter, it has been decided that the underwriter is not liable for any portion of the sum affixed to his name, even although the insured be ignorant of this particular restriction, provided it is notorious in the place where the contract is entered into that some limitation is imposed by underwriters upon their agents. This was so determined in Baines 2. Ewing, Exchequer, June, 1866, a Marine Ins. case. It is seen therefore that the saying-almost a proverb-that the principal is liable for the acts of his agent-requires a very large amount of explanation and qualification. It is above all things the duty of an agent to keep regular accounts of all his transactions, and to pay over in due course all monies received by him on behalf of his Co. Should he mix the monies received by him on the agency account with his own, paying them to the same account with a banker, he must bear the loss of the failure of the latter. This was settled in Massey v. Banner; and he may even become liable for interest on a balance when improperly retained. Should he presume to speculate with the sums received, he will be liable to account for the profits; and such investments even in stock may be subject to a specific lien on the part of the principal. He will not, however, be liable for unavoidable losses, as the failure of a banker in whose bills he may have made a remittance, or in whose hands, in the absence of directions, he may have deposited the money received to a separate account (Massey v. Banner); or where he is robbed of the specific monies, whether the felony is committed in his house or upon his person.-Bunyon. These rules also generally apply to agents of Friendly Societies. In the U.S. the powers of agents are much larger in some cases, as they not only accept Fire risks, but fill up blank policies supplied them for the purpose. Their responsibilities generally follow the law here laid down. AGENTS' BALANCES -Comment is frequently made at the ann. meetings of Ins. Asso. as to the largeness of the "agents' balances" as shown by the accounts submitted. In a great measure the complaint results from the want of knowledge of the persons making it. The system upon which most Ins. offices proceed is to debit the agents at the end of each month with the renewals falling due in the course of the next succeeding month. The policy-holders have in some 15, in most 30 days' grace for payment of prems. ; and the money does not come into the hands of agents until the policy-holders take up their receipts. The agents having received the prems., should at the earliest moment remit to the office, that the accumulated sums may be placed at int. by the asso. The system could be altered by adopting a system of "renewal suspense account." AGENTS, KNOWLEDGE REQUIRED BY.-With agents of ins. asso. the proverb that "knowledge is power" applies with peculiar force. The man who knows most of the theory and practice of the particular branch of ins. which he is engaged in advocating, should, all other things being equal, be the most valuable agent to his particular Co. In add. to a general knowledge of the bus., the agent requires to know not only every point concerning his own office, but also a great deal concerning others; by these means only will he be able to make way in these days of increasing competition. It is within the scope of the present work to afford much of the general information spoken of; while it also affords much information concerning individual offices-not derived from the offices themselves, but from altogether independent sources- "never before made public." We enumerate in a separate art. the chief pub. which have been specially addressed to agents. Ins. literature generally abounds in the moral elements, but is wanting in facts. The facts will be supplied in the present work. AGENTS, LITERATURE FOR.-Numerous pub. have of late years been specially addressed to agents with a view to their encouragement and aid. The following may be specially mentioned as among the more prominent : 1848. Agents' Hand-book of Life Assu. and a few remarks on Fire Ins. Life Assu. Record, intended more particularly for the use of provincial agents of assu. offices of Lond. 1849. Agents' Hand-book of Fire and Life Ins. 2nd ed. 1852. Ins. Agents' Assistant. Popular Essay on Life Assu. Gilbert Currie. 1854. Life Agents' vade mecum, and practical guide to success in Life Assu. bus. J. Baxter Langley. 1857. Insurance Guide and Hand-book. Cornelius Walford. 2nd ed. 1867. [Layton's and Goodsell's.] Life Ins. Agency, Practical Instructions. John Brokenshir. 1869. Handy Book for Life Ins. Agents. H. R. Sharman. 10th ed. 1870. Practical Aids for Life Ins. Agents. Philip Sayle, jun. 2nd ed. 1871. 1871. The Life Agent, by the same author. [Layton's and Goodsell's.] In the U.S. are some excellent pub. addressed to ins. agents; Mr. C. C. Hine, of the Ins. Monitor, pub. the following: 1. Hine's Instruction Book for Agents. 2. Agents' Advertiser. 3. Life Agents' Aid, by Henry W. Smith. 4. Agents' Monetary, Life, and Valuation Tables, by D. P. Fackler, actuary. 5. The Duties of Agents of F. Ins. Cos. in regard to losses (a most excellent publication). 6. Agents' Manual of Life Assu., by Dr. Fish. The Messrs. Goodsell, of the Spectator, pub. the following: 1. Practical Hints to Life Agents, by an Old Workman. 2. Agents' Manual of Life Ins., English and German. 3. Life Agents' Arithmetic: an easy, clear, and comprehensive solution of the actuarial mysteries of Life Ins., by John Maurice, actuary. 4. The Life Agents' Canvassing Cupons, an excellent contrivance. Some of the works in the Monitor list are also in Messrs. Goodsell's list [Goodsell's are agents for Layton's, and vice versa]. All we have seen of the above works are clear, concise, and practical; in a word, admirably adapted to their purposes. AGES AT DEATH.-It is important, especially from a Life Ins. point of view, to know the ages of the people at their death. It is still more important to know their ages in relation to the causes of death. The reports of the Registrar-General furnish us with the most authentic general information which can be obtained. They have the further advantage An abstract of these Tables will be given under DEATH, of distinguishing the sex. CAUSES OF. AGES IN REGISTERS OF DEATHS.-It was not until 1728 that the ages of persons dying were generally inserted in the parish registers. This improvement was introduced on the suggestion of Smart, the author of the Ins. Tables bearing his name. [PARISH REGISTERS.] AGES OF INSURED LIFE.-This subject has to be divided under two heads-first, the age at which lives become ins. ; second, the age at which ins. lives die. Mr. Babbage said in his Comparative View (1826) that he found the average age at which persons then ins. was 47. Mr. Arthur Morgan said in 1834: "The lives ins. in the Equitable were found 66 35 is the to have been admitted generally between the ages of 30 and 50, a very large proportion between 30 and 40, comparatively few under 28-30." In 1843 he said, Dr. Farr said in 1853 (12th Report In the U.S. average period at which people ins. with us.' Reg.-Gen.), "The average age at which ins. is effected is about 35 years. It is a healthful sign of the business when the average is as nearly as possible the same. young lives ins. in greater numbers than the older ones. Such ins. indicate investment for the benefit of families. We may offer the following details concerning the ages at which ins. lives die. In the Equitable So. during a period of over 60 years, 1762-1828, out of 21,398 members, of whom, however, 9,324 had discontinued their ins. mostly before they arrived at a very old age, therefore we may say out of 12,074 members, 17 reached 90 and upwards, of whom 4 died at 90, 3 at 91, 2 at 92, and I at 94, leaving living 3 at 90, I at 91, 2 at 92, and I at 93. Thus 10 died at 90 or over, I dis. his policy, and 6 were living. On the occasion of compiling the data for the 17 Offices Experience Table, 1841-3, it was found that out of 62,537 lives ins., but 5 had reached the age of 90 and upwards. These were all "Irish males," one of whom was living aged 95. The data for the New Experience Table (1869) furnishes the following details. Out of 157,993 persons ins., 95 had reached the age of 90 and upwards; of these 58 were males and 29 females of the healthy class, and 8 were males and females of diseased classes, sexes not distinguished. Of such total numbers 24 had died at the age of 90, and 5 were living at that age; 16 had died at 91 and 2 were living at that age; 13 had died at 92, and 2 were living; 12 had died at 93, I was living, and I policy had been dis. at that age; 8 had died at 94; I at 96 and I policy dis. ; 6 had died at 97, and I was living; I died at 98, and I at 99. The We may add a few facts about individual offices. The R. Exchange in a period of 135 years had no life which survived 96. It had a policy upon which 73 ann. prem. had been paid. The Lond. Assu. during the same period had no life that survived 90. The Sun had a claim at 92; Equitable since the date of the preceding obs. has had one life die at 95. The Rock had a claim on age 94; the Union and Imperial the same. In the case of Annuitants and Tontineers greater ages the Atlas and Law life the same. A female life in the English Tontine of 1693 died at the age of 100, and are reached. In the Perth Tontine one of the nominees died aged 122; another was living at that age. another aged 107; of these statements there is, we believe, abundant proof. AGES OF PARENTS AS INFLUENCING THE SEX OF CHILDREN.-M. Hofacker first drew attention to this subject in the Annales d'Hygiène, 1829, and stated the result of his inquiries to be that when the mother was older than, or of equal age with the father, more girls were born than boys; but the greater the difference of age on the side of the father, the more the number of male children predominated. Mr. Sadler in his Law of Pop., 1830, pursued the same subject. M. Quetelet has also investigated the question. Mr. Samuel Brown gives in vol. iii. of Assu. Mag. a most interesting summary of the result of their several inquiries. AGIO. Ital. Gain or profit.-The term frequently arises in connexion with Marine Ins. |
