CHAPTER IX
SELECT AND AGGREGATE TABLES

1. Although we have referred to different mortality tables which may have been made for each sex or for different races or classes, we have regarded the rate of mortality in each table as being wholly dependent upon the age attained. A table formed on this assumption is called an aggregate table. Tables produced from population data are aggregate tables.

2. In dealing with assured lives or annuitants we have to contend with an additional factor called "selection". Selection may be briefly defined as the attempt by one party to a contract to protect himself against an undue advantage which might under certain circumstances be realized by the other party.

As examples:

1. applicants for life assurance or assurance against disability are generally subjected to a medical examination by an assurance company before a policy is issued.

2. applicants for assurance without medical examination are limited in the amount of assurance which may be taken out, say $5,000 at one time, and satisfactory evidence of general insurability is demanded.

3. evidence of selection has been found in the choice of the type of assurance taken out. Other conditions being equal, lives who take out endowment or limited payment life policies have been shown to exhibit lighter mortality rates at the outset than those who choose whole life or term policies.

4. the person who contemplates purchasing an immediate annuity on his own life would only do so provided he felt that his health was very good.

3. Select tables have been deduced to exhibit the mortality after the act of selection in such cases where sufficient data can be obtained. Select tables are really a set of tables—one for each age at entry.