Crossref Citations
This article has been cited by the following publications. This list is generated based on data provided by Crossref.
Berger, Alfred
1923.
Die Prinzipien der Lebensversicherungstechnik.
p.
112.
Article contents
On the Distribution of the Divisible Surplus of a Life Assurance Company, with special reference to the Method originated by Dr. Sprague and other Methods derived therefrom
Published online by Cambridge University Press: 18 August 2016
Extract
Some time ago, the writer had occasion to examine the principal methods adopted by life assurance companies in the distribution of surplus, and particularly the plan which is known as “Sprague's Method”, from the name of its inventor, Dr. Sprague, or the “Equity and Law Method”, from the name of the company to which it was first applied. The plan is at present employed by comparatively few British offices, but it has recently been adopted by several companies in substitution for systems previously in vogue, and it appears to be rapidly growing in theoretical importance as a standard by which to test the effect of other systems of distribution. Nevertheless, it would appear that, apart from the brief description of the method originally given by Dr. Sprague (and quoted below), there is no systematic discussion of the principles of the method in the pages of the Journal of the Institute of Actuaries, and it is therefore thought that a few notes respecting some of the points which arise in connection with the practical application of the method may be of service to those who are studying the subject, but who may share the experience that little information is to be gleaned from the Journal.
- Type
- Research Article
- Information
- Copyright
- Copyright © Institute and Faculty of Actuaries 1896
References
page 77 note * It may be of interest to remark, in passing, that the average amount of the additional reserve thus made, in the case of an office valuing at 3 per-cent, will be about 1 per-cent on the sum assured. This may be shown by the use of Mr. King's hypothetical office. Thus, in the case of an office 10 years old, we find from Mr. King's tables:
page 86 note * This is not the game as the average premium in respect of new policies effected. It will be found that as the average duration of the policies increases the average premium decreases, because the entrants at the higher ages die off more rapidly than the younger entrants. The following figures, based on Mr. King's hypothetical office (J.I.A., xx, 233) will illustrate this point:
page 89 note * See some very interesting remarks by Mr. T. G. C. Browne on this subject (J.I.A., xxx, 148).
page 105 note * In the case of a compound status, p + q will not necessarily be equal to unity.
page 106 note † In reckoning the years 1, 2, 3 … the starting-point is the date on which the present value is to be calculated, which need not be the date of the commencement of the assurance.
- 1
- Cited by