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Life Office Solvency and Insolvency

Published online by Cambridge University Press:  11 August 2014

D. G. R. Ferguson
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Abstract

It is quite impracticable to devise an equitable mode of winding-up an insolvent life insurance company (5).

A company being found to be insolvent, what is to be done with it ?… The actuaries have unanimously recommended a reduction of the sums assured, the same premiums being paid, but the lawyers have agreed that this is impracticable … The actuaries are able to take a much higher view; they need not consider what is the law, but what is most consistent with real and substantial justice to all parties. In fact, we may sum it up by saying that the courts of this country are not courts of justice but courts of law (4).

[In relation to a method of treating insolvent life insurance companies as a closed fund] Its simplicity, and the entire absence of opportunity for the kind of deception and fraud usually committed by those who manipulate the assets of insolvent companies, are its most striking merits, and are certainly merits of a high order (1).

Type
Research Article
Information
Journal of the Staple Inn Actuarial Society , Volume 22 , June 1978 , pp. 1 - 44
Copyright
Copyright © Institute of Actuaries Students' Society 1978

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References

REFERENCES

(1) Bunyon, C. J. (1870) ‘On the liquidation of an insolvent life office.’ Pamphlet reprinted in J.I.A. XX, 281.Google Scholar
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(16) N.A.I.C. Model Life and Health Insurance Guarantee Association Act. December 1975.Google Scholar