Iv   TABLE OF CONTENTS.

RATE-MAKING. INSTALMENT AND CONTINUOUS INSTALMENT INSURANCES.

INCOME BONDS    Page 55

Ordinary instalments. Definition. Value of instalments. Commutation of instalments. Reversionary annuity. Definition. Net single premium. Rules, life annuity and joint-life annuity. Reversionary annuities favorites with actuaries but not with public. Defects. Continuous instalments. Definition. Advantages. Invented by Emory McClintock. Net single premium. Illustration. Rule. Continuous instalment provisions. Definition. Rule. Income bonds. When wholly interest income. Higher incomes. Illustration and rule. Alter-native rule. Special form. Income until death. Partly reversionary annuity. Rule for approximation net single premium. Annual premiums. When joint-life annuity due is used. Extra premium dropped if beneficiary dies first.

RATE-MAKING. JOINT-LIFE INSURANCES... Page 64

Definition. Called partnership insurances. Name not exclusive. Analogy to one life. Rule for net single premium. Rule for probabilities. Rule for net single premium joint-life pure endowment and endowment insurance. Present values, joint-life annuity and temporary joint-life annuity. Net annual premium, joint life; net annual limited premium, joint-life.

RATE-MAKING. LOADING. PRELIMI-

NARY TERM    Page 67

Meaning of "net premiums." Need for "loading." Premiums not always "loaded." Non-participating premiums. "Loading" not split into parts. Expense not limited to loading. Exceeds it for several years. Loading by percentage—by a constant. Uniform loading favored by some. Effect of commissions. Scientific loading in France. Separation by purposes. Modes of adjustment. First year's loading. Making loading function of cost of insurance. French plan explained. Effect on net premiums. Preliminary term plan. Its effect. Apparent net premiums. Modification of plan.