18. How often does the Company declare dividends or bonuses of surplus, and when and in what manner are the same paid?-and are such Dividends made upon the basis of an equal percentage upon premiums or how otherwise, and upon what principles? ANSWER-Bonuses are declared quinquennially out of profits of the life branch, and are allotted, according to the previous determination of the assured, in one or other of the following ways, viz.: 1, by an increase of the sum assured; 2, by reduction of the future premiums; or, 3, by an immediate equivalent cash payment. The basis of the apportionment is an equal percentage per annum of increase to the sum assured for the five years elapsed since the last preceding division of surplus in the case of policies which benefited by that division, and a similar percentage per annum in the case of participating policies which have not received a previous bouus, for the number of entire years they have been in force, provided their duration has not been less than two entire years at the date to which the valuations for bonus apply. 9. What proportion of the net present value of a Policy (calculated on the Company's assumptions of Mortality and Interest) is given as a surrender value? ANSWER-From sixty-five per cent to the entire value according to the nature of the assurance and the peculiar circumstances affecting the risk attaching to the policy. 10. Within what period, and upon what terms, may Policies lapsed by the non-payment of premium be revived, and what is the established practice and rule of the Company in reference to this class of Policies? ANSWER-Within three months after date when last premium became due, if proof be given that the life is in good health, and a fine, to be fixed by the directors, but not exceeding 10s. per cent, be paid; or, should the directors think fit, a policy may be revived at any time after the expiration of three months on the payment of such fine or additional premium as the board of directors may deem proper. This is the official rule; but if the assured has continued in good health it is liberally departed from in practice, as the fine is very seldom exacted, and policies have even been revived after a lapse of more than twelve months. 11. What are the limits of travel and residence allowed by the Company without extra premium? ANSWER-The whole of Europe; in North America, north of thirty-six deg., thirty min., north latitude, and east of the Rocky Mountains; in the southern parts of Australia, in New Zealand, and the Cape of Good Hope. 12. What is the largest amount insured by the Company on any one life, and are insurances allowed in other Companies to an unlimited amount? ANSWER-Largest amount retained, £5,000; and no stipulations made as to the amounts which may be assured in other offices. 13. What is the largest percentage of Premium allowed to be taken in Notes or other wise on credit? ANSWER-None. 14. How many "days of grace," if any, are allowed for the payment of premiums? ANSWER-Thirty days. 15. Are policies ever issued under an assumed age, differing from the real age of the party insured? ANSWER-Policies are occasionally issued for an age assured higher than the real age of the assured. 16. Are policies ever issued for the benefit of persons having no legal or actual interest in the lives insured, or in excess of such interest? ANSWER-Not knowingly. Every precaution taken to prevent the possibility of persons having no legal interest obtaining assurances on lives. 17. What amount, if any, of existing policies were issued on diseased, unsound or impaired lives? ANSWER-About 248, for £130,780; special diseases limited almost entirely to cases of gout and hernia. 18. What is the estimated number of Female lives insured by the Company? ANSWER-Seven hundred and sixty. 19. Does the Company issue Fire, Marine, Accident or Casualty policies of any kind, and if so, what kind? ANSWER-The Company issues policies insuring against loss by fire. 20. Is the business of the Company transacted on the purely Mutual, the strictly Proprietary or the mixed plan? If on the mixed plan, what proportion of the profits are apportioned to stockholders besides legal interest on their capital? ANSWER-On the mixed plan. Hitherto two-thirds of the life profits have been apportioned in bonuses to the policyholders, and one-third in dividends to shareholders. The shareholders receive no other interest on their capital. By a resolution, however, passed at the annual meeting of the shareholders held in August, 1867, an enhanced proportionviz., three-fourths of the profits realised up to 31st December, 1874-will be apportioned to policyholders then entitled to participate in profits, and only one-fourth to the shareholders. 21. What amount or proportion of the outstanding Policies of the Company were issued on the non-participating scale? ANSWER-Non-participating: assurances policies 1,874, sum assured £1,111,015 9s. 6d. ; endowments to children policies 169, sum assured £30,525 78. 4d. Participating: assurances policies 10,478, sum assured £5,062,671 1s. 11d. Total policies in force at end of the year.. 12,893 £6,229,011 14 6 270,647 11 0 Deduct policies decreased in amount and ceased to be in force during the year, as per schedule D .... Deduct amount re-insured in other companies.... Total net No. and amount in force Dec. 31, 1867....... 12,893 £5,958,364 36 2. Number and amount of policies which have ceased to be in force during the year, with the mode of their termination, as per Schedule D: 3. Statement of all the dividends, bonuses, apportionments, or distributions of surplus, made since the organization of the Company, and of the mode and manner of paying the same :— 4. Upon what Table of Mortality and rate of Interest are the Company's premiums based? ANSWER-Life assurance, premium on the Equitable Experience (Davies), interest, three per cent. Annuities, premium on the Equitable Experience (Davies), interest, thre and a-half per cent. Children's endowments, three per cent, and Carlisle table, thre and a-half per cent. 5. Is the Loading calculated in ali cases by the addition of an equal percentage to th net premiums-and what is the average percentage of Loading on the participating, anʼ also on the non-participating scale of premiums? ANSWER-Not by the addition of an equal percentage. Loading on non-participating from ten to fifteen per cent; on participating premiums, from twenty to thirty per cent being different according as the class of assurance is characterised by a more or less immi nent degree of risk. 6. Has the annual Mortality experienced, or the expenses of management, exceeded the assumptions on which the Company's premiums were based? ANSWER-No. 7. Who made the last valuation of your outstanding Policies, as detailed above under the heading of Liabilities, and upon what principles and in what manner was the same made, whether by valuing the gross or net premiums, by grouping the policies, or by seriatim calculations, or how otherwise? ANSWER-By the Actuary and his assistants; net premiums only were taken into account, and the calculations were made both seriatim and by grouping the policies. 8. How often does the Company declare dividends or bonuses of surplus, and when and in what manner are the same paid?-and are such Dividends made upon the basis of an equal percentage upon premiums or how otherwise, and upon what principles? ANSWER-Bonuses are declared quinquennially out of profits of the life branch, and are allotted, according to the previous determination of the assured, in one or other of the following ways, viz.: 1, by an increase of the sum assured; 2, by reduction of the future premiums; or, 3, by an immediate equivalent cash payment. The basis of the apportionment is an equal percentage per annum of increase to the sum assured for the five years elapsed since the last preceding division of surplus in the case of policies which benefited by that division, and a similar percentage per annum in the case of participating policies which have not received a previous bonus, for the number of entire years they have been in force, provided their duration has not been less than two entire years at the date to which the valuations for bonus apply. 9. What proportion of the net present value of a Policy (calculated on the Company's assumptions of Mortality and Interest) is given as a surrender value? ANSWER-From sixty-five per cent to the entire value according to the nature of the assurance and the peculiar circumstances affecting the risk attaching to the policy. 10. Within what period, and upon what terms, may Policies lapsed by the non-payment of premium be revived, and what is the established practice and rule of the Company in reference to this class of Policies? ANSWER-Within three months after date when last premium became due, if proof be given that the life is in good health, and a fine, to be fixed by the directors, but not exceeding 10s. per cent, be paid; or, should the directors think fit, a policy may be revived at any time after the expiration of three months on the payment of such fine or additional premium as the board of directors may deem proper. This is the official rule; but if the assured has continued in good health it is liberally departed from in practice, as the fine is very seldom exacted, and policies have even been revived after a lapse of more than twelve months. 11. What are the limits of travel and residence allowed by the Company without extra premium? ANSWER-The whole of Europe; in North America, north of thirty-six deg., thirty min., north latitude, and east of the Rocky Mountains; in the southern parts of Australia, in New Zealand, and the Cape of Good Hope. 12. What is the largest amount insured by the Company on any one life, and are insuranees allowed in other Companies to an unlimited amount? ANSWER-Largest amount retained, £5,000; and no stipulations made as to the amounts which may be assured in other offices. 13. What is the largest percentage of Premium allowed to be taken in Notes or other wise on credit? ANSWER-None. 14. How many "days of grace," if any, are allowed for the payment of premiums? ANSWER-Thirty days. 15. Are policies ever issued under an assumed age, differing from the real age of the party insured? ANSWER-Policies are occasionally issued for an age assured higher than the real age of the assured. 16. Are policies ever issued for the benefit of persons having no legal or actual interest in the lives insured, or in excess of such interest? ANSWER-Not knowingly. Every precaution taken to prevent the possibility of persons having no legal interest obtaining assurances on lives. 17. What amount, if any, of existing policies were issued on diseased, unsound or impaired lives? ANSWER-About 248, for £130,780; special diseases limited almost entirely to cases of gout and hernia. 18. What is the estimated number of Female lives insured by the Company? ANSWER-Seven hundred and sixty. 19. Does the Company issue Fire, Marine, Accident or Casualty policies of any kind, and if so, what kind? ANSWER-The Company issues policies insuring against loss by fire. 20. Is the business of the Company transacted on the purely Mutual, the strictly Proprietary or the mixed plan? If on the mixed plan, what proportion of the profits are apportioned to stockholders besides legal interest on their capital? ANSWER-On the mixed plan. Hitherto two-thirds of the life profits have been apportioned in bonuses to the policyholders, and one-third in dividends to shareholders. The shareholders receive no other interest on their capital. By a resolution, however, passed at the annual meeting of the shareholders held in August, 1867, an enhanced proportionviz., three-fourths of the profits realised up to 31st December, 1874-will be apportioned to policyholders then entitled to participate in profits, and only one-fourth to the shareholders. 21. What amount or proportion of the outstanding Policies of the Company were issued on the non-participating scale? ANSWER-Non-participating: assurances policies 1,874, sum assured £1,111,015 9s. 6d. ; endowments to children policies 169, sum assured £30,525 7s. 4d. Participating: assurances policies 10,478, sum assured £5,062,671 1s. 11d. 22. What is the estimated amount of Cash premiums received by the Company on exist ing policies? ANSWER-About £1,000,000 within a few hundreds of pounds sterling. 23. What is the aggregate amount of Premiums received in cash, and also of Losses and Claims paid since the organization of the Company? ANSWER-Amount of premiums received, £1,235,205 58. 11d.; amount of losses and claims paid, life claims, £466,213 4s. 10d., including £13,987 78. 11d. bonus additions to sums assured. 24. What amount of stocks and other securities are deposited in various States and Counries, under the laws thereof, for the protection of policyholders, and where have such leposits been made? ANSWER-In the United States, $416,950; Brazil, 20,000 rs.; Canada, £11,000. 25. What amount has been Credited and Debited during the year to Profit and Loss account? ANSWER-No amount carried to profit and loss account. The total amount of credits in the accounts for the year is £250,811 38. 5d., and of debits is £126,645 16s. The balance£124,165 78. 5d. -is added to the fund provided for life liabilities. 30. Do any of the officers of the Company receive a commission or percentage on any of the business of the Company, or retiring allowances, annuities or any other remuneration besides a fixed and regular salary? ANSWER-No. The principal Office of the Company is located at Liverpool, England; the Company was incorporated on the 31st May, 1845; commenced business 13th June, 1845; the duration of its charter is under Joint-stock Companies' Act, and Company's Act, 1862. |