Cumulative Bulletin Income Tax Rulings Volume 1-5

Cumulative Bulletin Income Tax Rulings Volume 1-5

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This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1920 edition. Excerpt: ... interest assumed. The end to be reached in life insurance is to mature the policy by building up a reserve. The basis of arriving at that desired end is the table of mortality and the rate of interest assumed, and by the use of them the net preaiium is fixed and the reserve is built up from net premiums. Repeating the process of making the terminal reserve from year to year until the time when the payment of premiums ceases matures the policy. The net premium coming due is the foundation of the reserve. Actuary Evans states it thus: The reserve is the balance of cash that the company must have on hand in order to pay out the contract, aNumlng that the future premiums under the IKtlicy are paid to the company, or, in other words, the increase in the reserve on the policy would be, sieciHcally, the amount of the premium for that year paid in, interest on the entire sum, and the cost of the insurance deducted. The assistant secretary (Anderson) explained that--When the policy becomes a claim, it is charged oft in the death loss account as a disbursement - for the All amount of the policy. When asked what, if anything, is deducted from the general reserve fund when death occurs, he answered: A corresponding amount to the death loss which was taken out of disbursements--the reserve--is held on that policy. I mean that one part of reserve account is wiped out and another created. Just here is the misconception as to what is a life insurance reserve. The reserve meant in the law is that fund which is built up to mature the policy. Of course, at the time when the money is taken out of the reserve account and is not used for Immediate payment it must be held somehow. In other words, it is reserved for the purpose of future payment. The full amount...show more

Product details

  • Paperback | 962 pages
  • 189 x 246 x 48mm | 1,683g
  • Rarebooksclub.com
  • Miami Fl, United States
  • English
  • black & white illustrations
  • 1236491572
  • 9781236491572