Wit   TABLE OF CONTENTS.

INSURANCE OF IMPAIRED LIVES    Page 123

First tried in United States in 186. Elizur Wright's comments. Failure of company. Discrimination among "good lives." Lien system introduced by Actuary Fouse in 1892. Now taken up by several companies. Classification. "Rating-tip" and "extra premiums." Uses of various plans. Lien plan preferred for ageney reasons. Success of "rating-up" alone demonstrated.

DEPARTMENTAL VALUATIONS    Page 127

Original form of company statement. Usually "gross" premiums valued. Sometimes provision made for expenses. Elizur Wright's modification. Simplifieation by offset. Valuations on December 31st. :Approximation. Mean for year. Reserve for excess guaranties or deficient premiums. Valuing policies with impairment liens. Valuing "rated-up" polieies. Net unpaid and deferred premiums. Preliminary term valuation. Industrial policy values. Valuing policies "dated back with liens." Correct offsets. Reality of loan. Elizur Wright on the same issue. Abuses of "dated back with liens." Is not excess all "impairment lien?" Absorbs future cash payments. Comity in accepting valuations. Elizur Wright on this. Some advantages of duplication. Loans against renewal commissions onee aecepted, later thrown out. Not net valuation. Effect on small companies. Changes of standards.

THE POLICY CONTRACT    Page 137

The application. Effect of a warranty. What constitutes fraudulent misrepresentation. What is breach of warranty. Waived by incontestable clause. The promise to pay. Au unilateral eontract. Explanations. Place of payment. Convenience of insured and beneficiary really consulted. Annual or more frequent premiums. Prepayment of premiums, two modes. Time of payment of premiums. Graee. Time insurance is payable. Usually at onee. To whom payable. Various plans. Privilege to change beneficiaries. Conditions of payment. Usually unconditional after one year or more. In-