This paper is an attempt to give an account of the various considerations which must be borne in mind in fixing the terms which can be quoted for the alteration of a policy. It is divided into various sections as follows:

A. The formulae which are theoretically suitable.

B. The modifications which can be made to the formulae for use in practice.

C. The points to be considered in choosing the actual basis used.

D. The various types of policies and of alterations not dealt with in the preceding sections.

E. Points of procedure and the method of dealing with altered policies for valuation, etc.

Only ordinary life business will be considered: Industrial Assurance is outside the scope of the paper.

For the purpose of sections A and B only non-profit policies are considered, and the formulae apply to an alteration from a whole of life policy to an endowment policy. With suitable changes they can be used for other alterations.