Premium

“ This premium (as it is called) the buyers are willing to pay, because they must otherwise go to the expense of remitting the precious metals themselves, and it is done cheaper by those who make doing it a part of their especial business. But though only some of those who have a debt to pay would have actually to remit money, all will be obliged, by each other's competition, to pay the premium; and the brokers are for the same reason obliged to pay it to those whose bills they buy. ”

“ The theory of a mutual insurance company is, that the premiums paid by each member for the insurance of his property constitute a common fund, devoted to the payment of any losses that may occur. Now, the cash premium may as well represent the insured in the common fund as the premium note; and this class of companies has been so long engaged in the business of insurance, it may well be that they can determine, with sufficient certainty for all practical purposes, the just difference in the rates of premium between cash and notes. ”

“ Notwithstanding these varied materials, and although they were quoted as authorities for maintaining a high rate of premium, the societies in existence were well aware that their rates were fixed on too ascending a scale. ”

“ One half the surplus of the year’s premium will be applied to the reduction of the next payment of those whose losses have not equalled their annual premium; and as a similar society has been in operation in France for the last five years, which has met with signal success, there appears every reason to believe that [285] this society will prosper. ”

“ Your observations upon the manufacturers of paper, respecting the intrinsic value of a premium, are equally applicable to this proposition, because, should the collodion prepared by any of the various dealers who at present advertise in your columns be deemed to be the most satisfactory, your sanction and that of your friends alone would be an ample recompense. ”

“ But, however instructive these details, it may be well, to avoid confusion, to sum up the whole process in the statement that the annual premium is a device to collect a larger amount than the death-rate in the earlier years of insurance, and to use these over-payments, improved at compound interest, to meet the deficiencies which arise in later years. The premium and reserve are so nicely adjusted that they are strictly equitable for the living as well as the dying at every year of life. ”

“ When the discount has ceased to exist through its absorption against premium on stock or the general surplus, it should no longer be reported because it is then a matter of ancient history with which the present is not concerned. ”

“ It might be supposed at first sight that when the exchange is unfavorable, or, in other words, when bills are at a premium, the premium must always amount to a full equivalent for the cost of transmitting money. ”

“ The premium in personal insurance (life, accident, sickness, invalidity, old age pensions) is in almost all cases paid out of some current income. The premium paid is just so much subtracted from the amount available for present direct use and applied to the purchase of future incomes for one's self or family. ”

“ But if it invests the premiums with good judgment, it will make more than the interest rate required. Its premium prices, for example, may be based upon a three per cent, investment rate; three per cent, that is, is all it must earn to pay obligations. But by carefully making investments it may actually earn four or five or even six. That is, it earns one, two, or three per cent, more than it needs. ”

“ By deducting the percentage necessary to cover their risk from the price they pay to the farmer. The farmer flatters himself that if gold goes up he gets for his products the benefit of the higher premium of gold. But the risk of the tradesman who buys from him being deducted, he gets a considerable percentage less than the full premium; while on the price of the goods he buys the risk of the tradesman is added to the premium, and the farmer has to pay a very considerable percentage over and above that premium. ”

“ A more accurate adjustment of the rates of premium to the several ages.
3. A principle in the division of the surplus more safe, equitable, and favourable to good lives.
4. Exemption from entry money.
(*) Annual Premiums for 100l., with Whole Profits.
(*) Annual Premiums for 100l., with Whole Profits, payable for 21 years only.
All policies indisputable unless obtained by fraud.
Forms of proposal, prospectus containing full tables, copies of the Twelfth Annual Report, and every information, will be forwarded (gratis) on application at the London Office, 12. Moorgate Street. ”

“ Authority to base premiums on product risk.— In establishing any premium under paragraph (1) , the Secretary may provide for variations in such rates according to the credit risk associated with the particular troubled asset that is being guaranteed. The Secretary shall publish the methodology for setting the premium for a class of troubled assets together with an explanation of the appropriateness of the class of assets for participation in the program established under this section. ”

“ The advocates of the stock plan contend that, by a low rate of premium, they furnish their assured with a full equivalent for that division of profits which is the special boast of other companies. In a corporation purely mutual, the whole surplus is periodically applied to the benefit of the assured, either by a dividend in cash, or by equitable additions to the amount assured without increase of premium, or by deducting from future premiums, while the amount assured remains the same. ”

“ Nondiscriminatory premium.— ``The total premium (as determined without regard to any subsidies) with respect to a qualifying individual may not be greater than the total premium (as so determined) for a similarly situated individual who is not a qualifying individual. `` (IV) Same benefits.—Benefits under the coverage are the same as (or substantially similar to) the benefits provided to similarly situated individuals who are not qualifying individuals. ”

“ And we, of the Salamander, want a man qualified to turn the company into a money maker, and who can assure us at the same time of a reasonable increase in our premium income—say in the five years, from two and a half up to three millions. ”

“ The agent, who must now get back the policy from the assured, must not be offended, or his more desirable business will be placed in some rival and more liberal company. If, on the other hand, the rate of premium seems adequate, but the amount at risk is too great, the underwriter reinsures or cedes a part of his line to another company, paying it a proportionate part of the premium, and holds only what he thinks safe. ”

“ Were I to dispose of them at present, I should lose a great deal of the premium I paid for them: perhaps they may fall lower, but I cannot prevail with myself to sell them. The rogueries that have been discovered in some other companies, I believe, make them all have less credit. I find myself dispirited, for want of having some pursuit. ”

“ That the insiders of these insurance companies, not one but several of them, have accumulated fortunes in the past few years, of from one to twenty millions, while at the same time premium-rates have advanced and dividends decreased. ”

“ In the ordinary affairs of life, no one stops for refined analysis of the nature of a premium, or considers that the periodic payment universally called 'interest' is in part something wholly distinct ”

“ The 'premium,' as defined by the early writers, 'is a sum of money paid by the assured to the underwriters, in consideration of his taking upon himself a risk the risk of having to indemnify the assured from any loss that may be sustained by an exposure to the perils of the sea, and to fire upon land, or the event of death.' Lord Mansfield says: 'The underwriter receives a premium for running the risk of indemnifying the assured.'
Tyne v. ”

“ Under ordinary circumstances, the high price occasioned by deficiency in the supply of any article in general demand, operating as a premium upon increased production, has a direct and natural tendency to remedy its own evils. ”

“ The level premium system is a combination of insurance and investments. The hundred millions are investments, and are necessary for the integrity of the level premium contracts. Any assessment company in which the rates do not increase as the members grow older should be compelled to have the full premium reserve required by state law and actuarial science to be held on level premium contracts. ”

“ Evidence was introduced by the plaintiff that the premiums specified in the body of running policies are nominal, and that the true premiums to be charged are fixed by increasing or reducing the nominal premium when the risks are reported. Premium notes were given by the plaintiff in this case at the policy rate of one and one-half per cent., and were paid by him to the defendants at their maturity, long before the loss in this case. ”

“ The property pledged is merely security for the loan, or, in the case of insurance, the premium paid is a per cent. of the amount insured. The margin between the valuation and the loan is established to make the loan abundantly safe. The policy is safely written through the same expedient. The empirical standard of value has a needful compensation about it which the yardstick or other measure neither has nor needs,—viz., the valuing goods does not deliver them. ”

“ These vast sums of money are paid in by policy-holders without any knowledge of, or means of knowing, the uses to which they will be applied. They know, in a general way, that a part of the premium will be used for reserve, a part for expenses, and a part for losses, but how much will go for each purpose they have no means of ascertaining. ”

“ The man on the brink of the grave, and the youth on the verge of manhood, paid the same premium; and for £5 per cent. per annum, and £7 10s. per cent. entrance-money, every one was enabled to insure his life. ”

“ The concept of discount or premium as altering the effective rate of interest is not to be rejected as an 'esoteric concept derived from subtle and theoretic analysis.' Old Colony R. Co. v. Commissioner, 284 U.S. 552, 561, 52 S.Ct. ”

“ In the Solaris Farm colony a very comprehensive scheme of insurance against accident, poverty, sickness and old age is the binding [Pg ii] principle. The premium is the profit which the co-operators collectively make by producing what they want (or by buying at wholesale what they cannot produce) and selling the same to themselves individually at regular market rates. The excellence of their wares attract many purchasers from the outside and the profits resulting therefrom also tend to swell the insurance fund of the co-operators. ”

“ Inasmuch as the net premium for an abstainer at age 35, under an average distribution of endowment and whole-life policies, would be $3.03 per thousand of insurance in force less than for a non-abstainer, we have here a figure representing the actual saving on such lives, the net premium being comparable to the cost of manufacture in trade. ”

“ In taking out an insurance policy one pays for it in dollars and cents, always at liberty to discontinue payments. If, however, woman's premium is her husband, she pays for it with her name, her privacy, her self-respect, her very life, "until death doth part." ”

“ If a person be sufficiently interested in the prices of miscellaneous companies’ shares, to run his eye down a list of, say, a hundred and fifty of the new Limited Liabilities, he will be surprised to find how few out of the number are quoted as being at par, to say nothing of at a premium. ”

“ If you have a number of clerks and your business will admit of it, offer a monthly premium to the one who brings into the store the largest number of new buyers or into the cash-drawer the heaviest receipts. ”

“ Bounties are applicable to the whole quantity of an article produced or manufactured or exported and involve a correspondent expense. Premiums serve to reward some particular excellence or superiority, some extraordinary exertion or skill, and are dispensed only in a small number, of cases. But their effect is to stimulate general effort; contrived so as to be both honorary and lucrative, they address themselves to different passions—touching the chords as well of emulation as of interest. They are, accordingly, a very economical means of exciting the enterprise of a whole community. ”

“ Goschen, when Chancellor of the Exchequer, to 23⁄4 per cent., are now selling at a much higher premium than formerly; the smaller amount of money paid in interest will purchase a very much larger amount of commodities than the former larger interest did. ”

“ All the immense profits of this speculation in land will go to the Company, which is bound to receive this indefinite premium in return for having borne the risk of the undertaking. When the undertaking involves any risk, the profits must be freely given to those who have borne it. ”

“ If premiums are collected at the beginning of the year and losses are paid at the end of the year, and if interest can be earned meantime at the rate of 3-1/2 per cent, the natural premium for a one year term policy is about $8.64, that being the present worth of $8.95 due a year hence, interest being 3-1/2 per cent. ”

“ Beverly told me that he should not sell his mother’s unless they went to 110. ‘In that case,’ said he, ‘it might be worth while to capitalise her premium.’”
“I liked the idea of capitalising one’s premium. If you had fifty bonds that cost you par, and sold them at 110, you would then buy at par fifty-five bonds of some other rising kind, and go on doing this until—I named no limit for this process; but my delighted mind saw visions of eighty and a hundred thousand a year—comfort at least, if not affluence in New York—and I explained to Ethel what the phrase capitalising one’s premium meant. ”