In making a valuation of the ordinary whole-life assurance contracts of a company according to the methods in general use at the present day, there are two separate sets of questions to be considered.

In the first place, the basis of valuation has to be chosen; that is to say, we have to select the table of mortality and the rate of interest which are to be employed. The questions that arise in this connection are of great importance, and for their settlement we have the assistance of the powerful instrument devised by Mr. King—the Model Office and its Valuations by various Tables of Mortality and at various Rates of Interest.