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Show American Life Insurance Celebrates Its 100thAnniversary 100th 100thAnniversary 100thAnniversary Anniversary by Adopting a New Actuarial Table TableWhich TableWhich TableWhich Which Reflects Longer Life of Modern Citizen By ELMO EL1\1O EL1 1O \ SCOTT scon WATSONReleased WATSONReleased WATSON WATSONRelexud Relexud Released by Western Newpaper Newspaper Union . . VTINETEEN INETEEN forty five finds findsAmerzcan findsAmerican NINETEEN N findsJ . 1 American Amerzcan life hfe msurance insurance msuranceobservmg insuranceobserving insuranceobserving observmg observing its 1tS 100th lOath anniversary anmver anniver anmversary anniversary sary and byway by way of celebratIon celebratIon1t's celebrationIt's celebrationit's celebrationits 1t's 1ts It's Its ' beginning begmnmg to operate un tin under tinder under der a new set of actuanal actuarial actuanaltables actuarialtables actuarialtables tables Until this th1s year insur Insur- Insurance insurance insurance - ance companies compames have been been"bookmg been"booking been"booking beenbooking "bookmg bookmg "booking booking " " life hfe and death deathchances deathchances deathchances chances on the same basis bas1S as asthey asthey asthey they were figuredwhen figured when the thefirst thefirst thefirst first American Amencan ' life We " poltc1es policies poltc1eswere policieswere policieswere were written wntten away back m in m1845 1845 But this th1s year they are ared1scardmg arediscarding arediscarding d1scardmg discarding the old "odds odds " ta- ta table table ta table - ble " and putting puttmg into mto effect a anew anew anew new one and that's thats ' a matter matterof matterof matterof of prime pnme importance 1mportance to morethan more morethan morethan than 70 70000000 000 000 Americans Americanswho Americanswho Americanswho who own more than 125 bIllton billion bIlltondollars billiondollars bilhondollars dollars worth of life We insurance msurance insuranceAs msuranceAs As a matter of tact fact the adoption adoptionof adoptiono1 of o1 the new actuarial actuanal tables In to InAmerican toAmerican inAmerican American life We Insurance s centennial centennialyear centennialSear year ) ear is accidental and coincidental coincidentalrather coincidentalrather coincidentalrather rather than purposely planned Nineyears Nine Nineyears Nineyears years ago state insurance commis commissioners commisstoners commissioners sioners stoners and mathematical wizards of ofthe ofthe ofthe the insurance companies recogmzed recognized recogmzedI recogmzedthe recognizedthe recognizedthe the fact that the tremendous Im tin ImI Improvements tinprovements improvements I provements in medical science sclence had hadI hadmade hadmade hadmade I I made the old odds table obsolete obsoleteI obsoleteIn obsoleteIn I In the light of modern methods of ofprolongmg ofprolonging ofprolonging prolongmg prolonging human existence a newset new newset ; lIet set ot of life expectancy standards was wasneeded wasneeded wasneeded wasneededBut needed neededBut But figuring flgurmg out these standardsand standardsand standards | and fitting trem Item ti em to rates-cr rates cr rates-or or rates - - or fit fittlng fittang fitting tlng tang rates to them-wasn them wasn them - wasn t a sunple simple sunplematter simplematter simplematter matter For Instance they knew that thatyouif thatyouif thatyou you-if you if - if you are 30 years old-have old have old - have a afar afar afar far better chance of living livmg beyondthat beyond beyondthat beyondthat that age than you did dJd two decades decadesago decadesago decadesago ago It was only a few decades ago agothat agothat agothat that eight out of every thousand thousandpeople thousandpeople thousandpeople people died at that age Today Todaythanks Todaythanks Todaythanks thanks to more public pubhc enlightenment enlightenmenton on medical medJcal matters and improve improvements improvements improvernents ments in diet dJet ( mclud includ ng more morekno.ledge moreknowledge moreknowledge kno.ledge knoledge knowledge . of vitamin Vltamm reqUJrements requirements requirementsonly ) only moor two or three persons per thou thousand thousand thousand sand are dead at the age of 30Rates 30Rates 30 30Rates Rates About the tbe Same SameBut SameBut SameBut But e\ e e\en e en een \ en though the improve improvement improvement improvernent ment m our life We chances seemed to toindJcate toindicate toindicate indJcate indicate much reduced rates this thiswas thiswas thiswas was offset over the years by the de deteTioration deterioratron detenoration teTioration terioratron of our interest rates andthe and andthe andthe the Increased cost of o1 doing busmessThe businessThe business busmess businessThe The problem of adjustment was wasthreefold wasthreefold wasthreefold threefold (1) 1 ( ) rates according accordmg to toI toImproved toimproved toimproved I Improved life We probability (2) 2 ( ) com corn company cornpany cornpany pany income mcome according accordmg to lowered loweredreturn loweredreturn loweredreturn return on investments mvestments and (3) 3 ( ) com corn company cornpany cornpany pany expenses as compared to the thegood thegood thegood good old days when breakfast cost costa a nickel and the company preSident preSidentdrew presidentdrew presidentdrew drew a salary of o1 $ $30 30 $ per weekThe weekThe week weekThe The insurance commissioners had hada a major mathematical problem be before before betore fore them For the latter two pomtslowered pointslowered points pomts pointslowered -lowered lowered - lowered earnings earnmgs on invested investedfunds investedfunds investedfunds funds and sharply rising rlsmg costs of ofdoing ofdoing ofdoing doing business busmess - more than cov coy covered coyered covered ered the slight break they showed showedon showedon on their theJT books because the doctors doctorswere doctorswere doctorswere were keeping keepmg us ahve alive longerNevertheless longerNevertheless longer longerNevertheless Nevertheless they went ahead AI Al AIfred AlFred Alred fred ( N Guertm Guertin of New Jersey was wasmade wasmade wasmade made chairman of a commiSSIOn commiSSIOners commissioners commissioners ers group to recommend the new newlife newlife , We life tables Five other state com corn cornmissnoners cornmissioners 'missIOners missIOners com'missIOners ' missnoners sat with him mm John SThompson S SThompson SThompson Thompson mathematician and VIce VIceI VIcepres vicepres vicepres pres dent of o1 the Mutual Benefit Life LifeInsurance LifeInsurance LifeInsurance I Insurance company of ot Newark N J J'I Jwas Jwas ' was a committee member represent representIng representbig representtng 'I I 'Iwas Ing big America the Actuarial Society of ofAmerica ofAmerica ofAmerica ofAmericaSixteen AmericaSIXteen Sixteen states enacted the so socalled socalled socalled called Guertm Guertin law which willch meansthat means meansthat meansthat that the insurance msurance companies compames domg doing domgbusiness doingbusiness doingbusiness business in t those ose states can in 1945 1945adopt 1945adopt 1945adopt adopt the re recommendation 'ommendatlon ommendatlon 'ommendation ommendation < ' ' of o1 the theGuertin theGuertin theGuertin Guertin committee into their future futurepolJcles futurepolicies futurepolicies polJcles policies The law became effective effectiveJanuary effectiveJanuary effectiveJanuary January 1 of o1 this year on an op11onal optional op11onalbasis optionalbasis optionalbasis basis but it becomes mandatory mandatoryafter mandatoryafter mandatoryafter after three years in m December 1948 1948Bow 1948How 1948low ) Bow How low It All Bcgan Began BcganCenturies BeganCenturies BeganCenturies Centuries before Messrs Guertm Guertin Guertmand Guertinand Guertmand and associates took on their her herculean herculean herculean culean job a Roman named Ulpl Ulpn Ulplanus Ulpnanus Ulpianus anus devised an odds table for a afew afew afew few of his friends Ulpianus Ulplanus Ulpnanus was a alawyer alawyer alawyer lawyer with a flair tor for figures As a amatter amatter amatter matter of fact his life expectancycharts expectancy expectancycharts expectancycharts charts were so good that they re remamed remained remained mamed mained unchallenged from 220 A D Dfor Dfor Dtor for atmost almost almost 15 centuries Even as aslate aslate aslate late as 1814 the Tuscan government governmentused governmentused governmentused used his rus figuresNot figuresNot figures figuresNot Not content with Lawyer Le-wyer Le wyer - Ulplanus Ulplanusfind Ulplanusfind Ulpianusfind find ngs however Edmund Fdmund mund Halley Halleyknown Halleyknown Halleyknown known as the English EnllJsh ( astronomer astronomerwhd astronomerwhd astronomerwild whd discovered the famous Halley s scomet scomet scomet comet undertook the job of com corn computmg cornputing cornputing putmg puting modern mortal ty tables m in m1693 1693 His method was the basis basJs for forpresentday forpresentday forpresent-day forpresent day present-day present day - - - computations namely namelythat namelythat namelythat that of using usmg accurate vital stahs states stahstics statestics statistics tics Halley selected the city of Bres Breslau Breslau Broslau lau ( you ve ye been read ng about it m in mthe inthe mthe the war news from Silesia Silesla ) tor for hisguinea ms his msguinea hisguinea guinea pig from 1687 92-observing 92 observing 92 - - observing i ; kL'v'3 kLv3 ' ' a , < s rt rtk rtI rtj rt.I k .I I . ; j I 5t1 5t1r : $ 4a ' r ' sk skr r , d M Msk . a k r , A view on Broad street in front of the Stock Exchange and Sub- Sub SubTreasury SubTreasury - - Treasury ( then the Customs House ) in New York City in 1845 when We life Weinsurance lifeinsurance insurance had Its beglnnmgs beginnings births and deaths for a five year pe period penod period periodHis riod nod riodHIs nodHis His tables were the precursor precursorfor precursorfor precursortor for many others-such others such others - such as the Eng EnglIsh Englfsh English lIsh lfsh tables of 1762 But all such Im tin Improved tinproved taiproved ImI I proved tables over the last two cen centurles centunes centuries turles tunes failed to keep pace with medi medical medical ! cal sCienceOur scienceOur science scienceOur Our first actuarial brainchild was wascalled wascalled I Icalled called the American Experience ta to table toble table ble which was brought into II1to usage usageright usageright usageright right after the Civil war With mmor minor minorchanges minorchanges I Ichanges . changes it has continued contmued to be the theaccepted theaccepted accepted base tor for computing computmg life and anddeath anddeath anddeath death chances up the present timeMeanwhile timeMeanwhile time timeMeanwhile Meanwhile the M D s were busily busilyengaged busilyengaged busilyengaged engaged m in making mamg our AmericanExperience Amencan American AmencanExperience AmericanExperience Experience figures look sick TheJT Their TheJTsuccess Theirsuccess Theirsuccess success in m keeping keepmg the lower age agegroups agegroups agegroups groups alive ahve longer is directly dlTectly re- re res responsible re responsible - - s sponsible Onslble for this thJs thus major effort to re reframe reframe reframe frame the basic structure of all allWe alllife allhfe We life insurance m in the United Umted States StatesJust StatesJust StatesJust Just by way of proving provmg the pomt point pomtin pointin pointin in 1900 the U S average age was49 was 49 24 A couple of years ago it stood stoodat stoodat stoodat at 64 82When 82When 82 82When When it all began back in 1845 1845thiS 1845this 1845this thiS was a husky hushy young nation nabon But Butmany Butmany Butmany many of its huskiest husl.1est husl1est . young clbzens citizens clbzensfeU citizensfell citizensfell feU fell victims VlCtlffiS to one disease or an another another another other dipthena diptherra and tuberculosis be being betog being ing tog the most activeIany activeMany active activeMany ! \ Many \Iany Iany Hazards HazardsEven HazardsEven HazardsEven Even as late as 1900 more than 40 40out 40out 40out out of every 100 000 people suc sue succumbed suecumbed suecumbed cumbed to d pthena ptheria Today it s only onlyonly onlyonly onlyonly only one per 100000 100 000 Europe s black blackplague blackplague blackplague plague of the early 17th century centurywasn centurywasn centurywasn wasn t much worse a scourge than thanthe thanthe thanthe the horrors ot at of pulmonary pulmonarr , tuberculosis tubercu tuberculosls tuberculosis losls losis over the last century Stabs Status Stabsbcs Statustics Statistics bcs tics for fot fof 1900 show that this killer killertook killertook killertook took 173 out of every 100000 100 000 Today Todayless Todayless Todayless less than 40 per 100 000 die dJe of the thedisease thedisease thedisease disease each yearFor yearFor year yearFor For these reasons coupled with all allthe allthe allthe the other hazards of living lJvmg a cen century century century tury ago the old boys scratched scratchedtheir scratchedtheir scratchedtheir their heads twice before msurmg insuring msurmgthelT insuringtheir insuringtheir thelT their fellow men promIscuouslyWhen promiscuouslyWhen promiscuously promiscuouslyWhen When Ben Miller bought the first firstWe firstlife firsthfe We life policy issued by Mutual Benefit BenefitLife BenefitLife BenefitLife Life Insurance m in Newark in m 1845 1845there 1845there 1845there there were many don ts is tied bed to the thepolicy thepolicy thepolicy policy Ben bought $1 1 $ 500 worth of ofInsurance ofinsurance ofinsurance Insurance on his life We at a premium premiumof of $51 51 $ a year with the prOVlSJon provision prOVlSJonthat provisionthat provisionthat that (1 1 ( } (1) 1 ( ) He didn dldn t die on the seas seas(2) seas2 (2) 2 (2 2 ( ) he didn dldn t leave the country country(3 country3 (3) 3 (3 3 ( ) he didn dldn drdn t go south in m the sum summertlme summertime summertime sumI I mertlme mertime (4 4 (4) 4 ( ) he didn dldn t ( without withoutI withoutconsent withoutconsent withoutconsent I consent ) ) join Jom the army (5 5 (5) 5 ( ) he hedidn hedidn , ' dJdn didn t cut his own throat to 1m im improve improve prove his w wife e s finances (6) 6 (6 6 ( ) he hedldn hedidn hedidn heI I dldn didn t expose h s insured IDsured and valuable valu valuable valuable able carcass by duelling (7 7 (7) 7 ( ) he hereligiously hereligiously hereligiously religiously avoided the gallows or orguillotine orguillotine I gUillotme guillotine and so on tor for quite quitesome quitesome , some d stance m in slightly slJghtly more tech techmcal techmeal techmeal mcal meal verbiageBen verbiageBen verbiage verbiageBen Ben verbiageI it might be remarked was wasone wasone wasone I one of the hard er sort tor for he hved lived hvedto livedto livedto to collect his hJS own insurance msurance at theage the theage theage age of o1 96While 86While 65 96 86 65While theI I While the early directors dJrectors of msur msurance msurance insurance ance companies compames had no worne wornes worries wornesabout worriesabout ; about clients being bemg killed in m an anautomobile aiautomobile I IautomobJle automobJle automobile or airplane the 1845 CJ11 citi CJ11zens citizens citizens zens of o1 Pres James Polk s nation nabon of of27 27 states were liable to find fund them themselves themselves themselves selves without a scalp if of they took tookthe tookthe tookthe the covered wagon trail westLife westLife west westLife Life insurance companies compames also alsocould alsocould alsicould could discount thi the th . . , probability of the themsured theinsured thinsured ( msured insured dying from heart failure failurebecause failurebecause tailunbecause because of the then modest 15 mil milhon million million hon lion dollar publ pull c debt Perhaps it Is Isorth isworth I ; \ worth \\orth orth noting notmg that over the years the theIncrease |
