́12. A cargo of coal was insured at 3%, to cover of its value. The premium paid was $191.84; if the cargo be lost what loss will the insurance company sustain ?

13. On May 1, 1877, Mr. Dunn insured his house for $12000, for 10 years, at 11%; what was the value of the unearned premium, May 1, 1884 ? Ans. $540. 14. A quantity of merchandise valued at $120000 and insured for $50000, is damaged to the amount of $40000; supposing the policy to contain the "average clause, how much of the loss does the insurance company pay ? Ans. $16666.

NOTE.-A policy containing the “ average clause," entitles the owner only to such a proportional part of the loss as the insurance is of the value of the property.

15. A laboratory worth $15000, and insured for of its value, at an annual premium of 21%, was burned at the end of 4 years; what was the owner's loss? Ans. $6000.

16. For an insurance of $5000 on my house, and $960 on my barn, I paid for 3 years, a premium of $156.45. What was the annual rate?

SOLUTION.-$156.45 ÷ 3

=

$52.15; and $52.15 ÷ $5960 %.

17. What amount of insurance may I receive on my hotel, for a premium of $337.50, at 21% ?

18. A merchant had his store and goods insured at 23%, paying $570 premium; what was the value of the policy? Ans. $24000. 19. J. C. Bryant pays a premium of $187.50 for insuring his house for of its value, at 31%; what is the value of his house? Ans. $8000.

20. What amount is covered by an insurance, the premium of which is $42 for 3 years, at an annual rate of Ans. $1638.

£%?

75. Life Insurance is a contract by which a company agrees to pay a person, if he survive a specified age, or his heirs, if he die before attaining that age, a certain stated sum of money.

76. The Policies of life insurance are:

1. Endowment Policies, which are payable at a specified age, or at death, if it occur before that age.

2. Term Policies, which are payable at death, provided that event happens within a certain period.

3. Ordinary Life Policies, which are payable at death, without regard to time.

77. The Premium for life insurance is at fixed rates, determined by a table of mortality, the probable value of money, and a margin for expenses.

In the endowment policies, the premium is payable annually, or in one, five, or ten annual payments; in term policies, it is payable annually; and in life policies, it is payable annually during life, or in one, five, or ten annual payments.

1. What annual premium must I pay for a life policy of $10000, if I am 30 years of age?

OPERATION.

$22.70 x 10.000 = $227.

SOLUTION.-On examining the table, we find the premium for life policies, at the age of 30, to be $22.70 for $1000 insurance. Hence, for $10000 insurance the premium will be 10.000 times greater, or $22.70 × 10.000 = $227.

RULE.-Multiply the premium for the given time and age, by the amount of the policy, and divide the product by 1000.

This table indicates the maximum rates of premium charged by the principal Insurance Companies of New York.

2. If a man is 29 years old, what annual premium must he pay for a life policy of $20000?

Ans. $441.40.

3. What annual premium will a man, aged 42 years, pay to receive an endowment policy for $1200, payable in 10 years? Ans. $129.18.

4. A lady, 28 years of age, takes out an endowment policy for $4000, payable in 15 years; how much does she receive more than she pays ? Ans. $13.60. 5. A gentleman, aged 32, takes a life policy for $20000. He lives 20 years after insuring; how much will his heirs receive more than was paid? Ans. $10380.

6. What is the semi-annual premium on a 10-year endowment policy for $8000, age 50? Ans. $450.72.

7. A clergyman, aged 29, takes an endowment policy for $6000, payable in 15 years. If the dividend increases his policy $3000, how much more will he receive than he has paid the company? Ans. $3006.

8. Mr. Mackay, at the age of 37, took an endowment policy for $13000, payable in 10 years. When he died his family had a net gain of $4732; how many payments had he made? Ans. 6.

9. A lawyer had his life insured at the age of 35, taking a life policy, payable in 20 years. How old will he be when the amount of the premium paid shall exceed the face of the policy? Ans. 64 years.

TAXES.

78. A Tax is a certain sum of money assessed on persons and property in order to defray the expenses of a city, county, or State.

79. There are two general classes of taxes; viz., those levied by a State, county, or town; and those levied by the General Government.

80. A Property Tax is a sum assessed, at a certain rate, on the estimated value of real estate or personal property.

81. A Poll Tax is a sum levied on each male citizen, without regard to his property.

CASE I.

82. To find the tax, when the rate and the value of the taxable property are given.

1. The rate of taxation of a certain county was 21 mills, and the value of the property $864000; what was the tax?

OPERATION.

$864000 × .0021 = $2160.

SOLUTION. At the rate of .002

on a dollar, the tax on $864000 will be .002 times $864000 = $2160.

RULE.-To find the amount of tax, multiply the value of the taxable property by the rate.

2. The taxable property of a certain town is valued at $182540, and taxed at the rate of 4 mills on a dollar. If there are 140 polls, at $1.20 each, what is the whole tax?

Ans. $898.16. 3. What is the tax of a person whose property is assessed at $24800, if he pays 2% town tax, and 11% school tax? Ans. $868.

4. The real estate of a certain town is valued at $1400000. There are 960 polls, at 75 cents each; what is the whole tax, the rate being 5 mills on the dollar? Ans. $7720. 5. In No. 4, what is B's whole tax whose property is valued at $8000, and who pays for 3 polls? Ans. $42.25. 6. A tax of $11004 is to be assessed on a certain vilvage; the value of the taxable property is $1800000; and there are 340 polls to be assessed 60 cents each; how