Office Premiums should fulfil the following conditions:—

(1) They should be adequate. Whatever the method of construction, the premium must be sufficient to cover the risk and expense, and leave a reasonable margin of profit.

(2) They must be reasonable from a competitive standpoint.

(3) They must be consistent with one another.

The premiums should be based on select rates of mortality, and our decision of the table of mortality to be used for the premiums for particular classes of risk should be based on—

(1) The experience of the class of assurance.

(2) Possible variation in that experience in the future.

(3) The special conditions of the particular office.