MANAGEMENT OF AN INSURANCE OFFICE. 283 



miums, there are offices which will, in consideration of 

 the surplus aforesaid, pledge their proprietary capitals 

 for the satisfaction of your ultimate demand upon them. 

 Secondly, if, being of the opinion aforesaid, you think 

 the whole surplus too much to pay for the guarantee, 

 there are proprietary offices which retain a part of the 

 profit in consideration of the risk of their capital, and 

 return the remainder. Thirdly, if you wish the surplus 

 premium, as fast as it is proved to be such, to be ap- 

 plied in obviating the necessity of any further over- 

 charges, there are offices which divide the profits during 

 the life of the insured, by means of a reduction of pre- 

 mium. Fourthly, if you wish the surplus to accumulate, 

 and, feeling confidence in your own life, are willing to 

 risk losing it (the surplus, remember) entirely if you 

 die young, on condition of having it proportionally in- 

 creased if you live to be old, there are offices which 

 divide all or most of the profits among old members. 

 Fifthly, if you would prefer a certainty of profit, die 

 when you may, there are offices which at once admit 

 new members who die early to a full participation in all 

 advantages. The choice between these several modes 

 must be made by yourself, according to your own 

 inclinations, views of fairness, or particular circum- 

 stances. 



There are three modes of division which deserve par- 

 ticular notice; namely, periodical additions to the policies, 

 periodical diminutions of premium, and addition to the 

 policy at death to an amount depending upon the assets 

 of the office, without reference to the time during which 

 the insured has paid premiums. I may, perhaps, be 

 thought to treat this subject with prolixity ; notwith- 

 standing, knowing that this part of the subject has 

 created more discussion of late years than any other, I 

 think an attempt to compare the principles of different 

 plans not out of place. 



The considerations which follow will apply to all 

 offices which divide any profits whatever : the inquiry 

 being, not how much surplus should be divided, but in 



