Hostname: page-component-cd9895bd7-8ctnn Total loading time: 0 Render date: 2024-12-23T10:25:55.011Z Has data issue: false hasContentIssue false

On the Valuation of Claims upon current Policies in the Liquidation of a Life Office, with reference to the Decisions in Bell's and Lancaster's Cases

Published online by Cambridge University Press:  18 August 2016

C. J. Bunyon*
Affiliation:
Institute of Actuaries

Extract

The question which it is proposed to consider in the present paper is the correct mode of valuation of current policies, or true measure of proof to which claimants thereon are entitled in the liquidation of a Life Office. The subject is of especial interest at the present time, because its solution is even now waiting settlement by the Court of Chancery; and the interest is heightened by the fact, that conflicting judgments have been delivered by two eminent equity Judges, namely, by Lord Justice James, in Bell's case, when sitting as Vice-Chancellor in the Court of Chancery, and by Lord Cairns, in Lancaster's case, when sitting as Arbitrator in the Albert Arbitration. It does not appear that among actuaries there is a complete agreement. Nevertheless, the case ought not to present any great difficulty, and whether among actuaries or in a Court of Equity must be decided by argument alone. It is therefore proposed to consider the question, in the first instance, upon principle; and secondly, with reference to the doctrines laid down in the cases to which we have referred.

Type
Research Article
Copyright
Copyright © Institute and Faculty of Actuaries 1873

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

page 2 note * Bell's case, 9 Eq. Ca., 719.

page 3 note * Bell's case, p. 721.

page 3 note † Albert Arbitration, Minutes of Proceedings, p. 681, Lancaster's case.

page 8 note * See vol. x p. 312, and Me Sprague's recent admirable paper on the Liquidation of an Insolvent Company, which is in itself a complete refutation of the proposal to apply a pure premium estimate in such a case.