Εικόνες σελίδας
PDF
Ηλεκτρ. έκδοση

Insurance on property is of two kinds: Fire Insurance, and Marine and Inland Insurance.

660. Fire Insurance is indemnity for loss of property by fire.

661. Marine and Inland Insurance is indemnity for loss of vessel or cargo, by casualties of navigation on the ocean, or on inland waters.

Transit Insurance refers to risks of transportation by land only, or partly by land and partly by water. The same policy may cover both Marine and Transit Insurance.

Stock Insurance is indemnity for the loss of cattle, horses, etc. Most insurance companies will not take risks to exceed two-thirds or three-fourths the appraised value of the property insured.

When only a part of the property insured is destroyed or damaged, the insurers are required to pay only the estimated loss; and sometimes the claim is adjusted by repairing or replacing the property, instead of paying the amount claimed.

662. The operations are based on the principles of Percentage, the corresponding terms being as follows: 1. The Base is the amount of insurance. 2. The Rate is the per cent. of premium. 3. The Percentage is the premium.

ORAL EXERCISES.

663. 1. How much must be paid for insuring a house and furniture for $4000, at 11% premium?

ANALYSIS. Since the premium is 11%, or 45, equal to of the sum insured, the premium on $4000 will be of $4000, or $50. Hence, etc. (510.)

2. What will be the annual premium of insurance, at 2%, on a building valued at $8000 ?

3. What will be the cost of insuring a quantity of flour, valued at $1500, at %?

4. What must be paid for insuring a case of merchandise, worth $640, at 21% ?

5. A man owns of a boat-load of corn valued at $1800, and insures his interest at 1%. What premium does he pay?

6. Paid $6 for insuring $300; what was the rate?

ANALYSIS. Since the premium on $300 is $6, the premium on $1 is of $6, or $.02, equal to 2%. Hence, etc. (513.)

7. Paid $12 for an insurance of $800; find the rate. 8. Paid $24 for an insurance of $1000; find the rate. 9. At 2%, what amount of insurance can be obtained for $30 premium?

ANALYSIS. Since 2% is 18 or of the amount insured, $30, the given premium, is of the amount insured; and $30 is of 50 times $30, or $1500. Hence, etc. (516.)

What amount of insurance can be obtained,
10. On a house, for $75, at 3% premium?
11. On a boat load of flour, for $150, at 4%?
12. On a car load of horses, for $90, at 41%?
13. On a store and its contents, for $105, at 13%?

WRITTEN EXERCISES.

664. Find the Premium

1. For insuring a building for $14500, at 11%. OPERATION.-$14500 x .015 = $217.50. (512.) FORMULA.-Premium = Amount Insured x Rate.

Find the premium for insuring

2. A house valued at $5700, at 4%.

3. Merchandise for $2750, at 3%.

4. A fishing craft, for $15000, at 11%.

5. If I take a risk of $25000, at 13%, and re-insure of it at 21%, what is my balance of the premium?

665. Find the Rate of Insurance,

1. If $36 is paid for an insurance of $2400. OPERATION.-$36 ÷ $2400 = .015, or 1%. (515.) FORMULA.-Rate of Insurance = Premium ÷ Sum

Insured.

What is the rate of insurance,

2. If $280 is paid for an insurance of $16000? 3. If $4.30 is paid for an insurance of $860 ?

4. A tea merchant gets his vessel insured for $20000 in the Royal Company, at %, and for $30000 in the Globe Company, at 1%. What rate of premium does he pay on the whole insurance ?

666. To find the Amount of Insurance.

1. A speculator paid $262.50 for the insurance of a cargo of corn, at 11%. For what amount was the corn insured?

OPERATION.-$262.50÷.015= $17500, the sum insured. (518.) FORMULA.-Sum Insured Premium ÷ Rate.

2. If it cost $93.50 to insure a store for one-half of its value, at 13%, what is the store worth?

3. Paid $245 insurance at 43% on a shipment of pork, to cover of its value. What was its total value?

4. A merchant shipped a cargo of flour worth $3597, from New York to Liverpool. For what must he insure it at 31%, to cover the value of the flour and premium?

OPERATION.-$3597 ÷ (1 − .031) or .9675 = $3717.829. (520.)

5. An underwriter agrees to insure some property for enough more than its value to cover the premium, at the rate of 26 cents per $100. If the property is worth $22163, what should be the amount of the policy?

6. For what sum must a policy be issued to insure a dwelling-house, valued at $35000, at 1%, a carriage-house worth $9500, at %, and furniture worth $4500, at %, 10% being deducted from the premium, which is to be covered by the policy?

7. A person insured his house for of its value at 40 cents per $100, paying a premium of $73.50. What was the value of the house?

8. A dealer shipped a cargo of lumber from Portland to New York; the amount of insurance on the lumber, at 12%, with the premium paid was $25200. What was the value of the lumber?

9. A merchant had 500 bbl. of flour insured for 80% of their cost, at 31%, paying $107.25 premium. At what price per barrel must he sell the flour to gain 20%.

LIFE INSURANCE.

667. Life Insurance is a contract by which a company agrees to pay a certain sum, in case of the death of the insured during the continuance of the policy.

668. A Term Life Policy is an assurance for one or more years specified.

669. A Whole Life Policy continues during the life of the insured.

Premiums may be paid annually for life, or in 5, 10, or more installments (called 5-payment, 10-payment policies, etc.), or the entire premium may be paid in one sum in advance.

The premium is computed at a certain sum or rate per $1000 insured, the rate varying with the age of the insured at the time the policy is issued.

A policy of endowment is not in all respects an insurance policy, but is rather a covenant to pay a stipulated sum at the end of a certain period to the person named if living.

Most companies issue a form of policy that combines the principles of Term Life Assurance and Simple Endowment, called for brevity Endowment Policy. Hence,

670. An Endowment Policy is one in which the assurance is payable to the person insured at the end of a certain number of years named, or to his heirs if he die sooner.

An endowment policy is really two policies in one, and the assured pays the premiums of both.

671. A Dividend is a share of the premiums or profits returned to a policy-holder in a mutual life insurance company.

672. A Table of Mortality shows how many persons per 1000 at each age are expected to die per annum.

673. A Table of Rates shows the premium to be charged for $1000 assurance at the different ages.

Such a table is based upon the table of mortality, and the probable rates of interest for money invested, with a margin or loading for expenses.

674. The following condensed table gives data from the American Experience Table of mortality, and the annual premium on the kinds of policies most in use.

« ΠροηγούμενηΣυνέχεια »