INSURANCE

INSURANCE, in law and commerce, though an
excellent institution, is not of high antiquity. The
oldest laws and regulations concerning insurance, with
which the indefatigable Beckmann is acquainted, are
the following:

On the 28th of January 1523, five persons appointed
for that purpose drew up at Florence some articles
which are still employed on the exchange at Leghorn.
These important regulations, together with the pre-
scribed form of policies, which may be considered as
the oldest, have been inserted, in Italian and German,
by Magens, in his Treatise on Insurance, average, and
bottomry, published at Hamburg in 1753.

There is still preserved a short regulation of the 25th
May 1537, by the Emperor Charles V. respecting
bills of exchange and insurance, in which the strictly
fulfilling only of an agreement of insurance is com-
manded.

In the year 1556, Philip II. king of Spain, gave to
the Spanish merchants certain regulations respecting in-
surance, which are inserted by Magens, with a German
translation, in his work before mentioned. They con-
tain some forms of policies on ships going to the Indies.

In the year 1598, the Kamer von assuranzie, cham-
ber of insurance, was established at Amsterdam. An
account of the first regulations of this insurance office
may be seen in Pontanus's History of the city of Am-
sterdam, and in other works.

In the year 1600, regulations respecting insurance
were formed by the city of Middelburg in Zeeland.

It appears that the first regulations respecting insu-

rances in England, which may be seen in Anderfon's Insurance
History of Commerce, were made in the year 1621. We
find by them, that insurers had before that period con-
ducted themselves in such a manner, that the utmost
confidence was reposed in their honesty, and that on
this account few or no disputes had arisen.

Of the various policies for insurance in England, a
pretty accurate account will be found in the Encyclopaedia;
but there is one of them, of which our account
must be acknowledged to be now defective. This is,

INSURANCE on lives; which is a policy that has greatly
increased, in consequence of its utility being more
generally understood. Of the two offices for life as-
surances, noticed in that article, the former, entitled
the Amicable Society, has extended the number of its
shares to 4000; but, as we have already observed, the
nature of the institution is too limited to become of ge-
neral importance. The latter, entitled, the Society for
Equitable Assurances on Lives and Survivorship, is un-
doubtedly one of the most important institutions of
the kind, as will appear by the following account, with
which we have been favoured by an obliging correspond-
ent, and upon the accuracy of which our readers may
depend:

The members of the equitable society, finding, in
June 1777, that their affairs were in a flourishing situa-
tion, resolved to reduce their annual premiums one
tenth; and in 1782, adopted new tables agreeable to
the probabilities of life at Northampton, in lieu of those
they had hitherto used, formed from the London bills
of mortality. But though it was evident, that the new
tables were much better adapted for assuring promis-
cuously persons residing in the country, or in large
towns, it was thought proper, for greater security, to
make an addition of 15 per cent. to the real value of
the assurances, as computed from the table of mortality
at Northampton; and with the view of making an ade-
quate compensation to the assured for their former
payments, which had been so much higher than would
be required by the new rates, an addition was made to
their claims of L. 1: 10s. per cent. for every pre-
mium they had paid. The consequence of these mea-
sures proved highly favourable to the society; for its
business increased so fast, that in 1785 it was nearly
doubled; the sums assured amounting to upwards of
L. 720,000. At this period, the favourable result of
a minute and very laborious investigation of the state
of the society, induced them to take off the 15 per
cent. charged upon the premiums in 1782; and make a
further addition to the claims of L. 1 per cent. for every
payment made prior to the 1st January 1786. A still
greater increase of successful business determined them,
in 1791, to make another addition of L. 1 per cent. to
the claims; and in the following year, a further addition
of L. 2 per cent.; by which the claims upon assurances
of the year 1770 were more than doubled; and those
of an earlier date increased in a still higher proportion.
By these advantages to its members, and the honour-
able and truly equitable manner in which the concerns
of the society are transacted, the augmentation of their
business has been so great, that on the 31st December
1794, the sums assured (without including the addi-
tions made to them) amounted to upwards of
L. 3,000,000; and on the 31st December 1795, to
about L. 4,000,000.

Insurance. The rates of assurance, as reduced to their real values in 1786, and according to which the society now transact business, are as follows:

The other offices in London for the assurance of lives are, the Royal Exchange Assurance, the Westminster Society, and the Pelican Life Office.

The corporation of the Royal Exchange Assurance was empowered to assure lives by its second charter, dated 29th April 1721; but the original object of the company being sea assurances, and the true principles of assuring on lives being at that time little understood, this branch of their business was at first comparatively small: they generally required a premium of five or six guineas per cent. without any regard to the age; and the assurance, which was usually for a small sum, was seldom for a greater term than one year. In this manner they continued to assure upon lives till the end of the year 1783, when the increasing importance of this part of their business, which they had some years felt, induced them to adopt a regular table of rates of assurance, according to the Northampton registers of mortality, but with a greater addition to the real values than had been made by the "Society for Equitable Assurances on Lives and Survivorship." This was thought proper, from the consideration that the assurers with the Royal Exchange company are not in any case liable to a call upon them beyond the premium they engage to pay, and have the security of the capital and funds of the company arising from the other branches of their business; however, the company, finding themselves successful in their life assurances, determined, in 1790, to reduce their premiums; and in 1797 made a still greater reduction, by which they are brought very near to those above stated. This company have agents in all the principal towns of Great Britain, and are empowered to assure lives in all parts of the world.

The Westminster Society was established in 1792, for assuring lives, and granting annuities. Their terms are nearly the same as those of the Royal Exchange Assurance; but not being a corporate body, every person assuring signs a declaration, that he accepts the joint stock of the society as his security.

The Pelican Life Office was instituted in 1797, by some of the principal proprietors of the Phoenix Fire Office. The rates which they have published vary considerably from those of the other offices; but whether they are founded on more just principles, time and experience must determine. This society also makes a new species of assurance, by way of endowment for

daughters, or for children generally, when they shall attain the age of twenty-one years.