EXAMINATION QUESTIONS. 1. Give some account of the history and development of the insurance business. 2. To what extent is insurance a compulsory element of the government of Germany and other European countries? 3. How is it possible for insurance companies, especially those doing a life and accident business, to estimate in advance with any degree of accuracy their losses? 4. Enumerate a few of the many systems of insurance now in operation in this country. 5. Distinugish between mutual and industrial companies. 6. Why is it that the mutual insurance company needs no capital stock? Give instances of mutual companies. 7. Name three leading 1. life insurance companies. 2. fire insurance companies. 3. accident insurance companies. 8. What is the surplus fund of an insurance company? How is it applied in mutual companies? How in industrial? 9. What is the policy? What is the premium? 10. The death rate of a community or nation is doubled. How will it affect (1) mutual life policy holders, (2) industrial life policy holders? II. What is necessary, when a fire occurs, to secure the insur ance? 12. Quote the average clause usually found in fire insurance policies. 13. Goods worth $50,000 are insured for $20,000 and are damaged by fire to the extent of $30,000. Will the company be obliged to pay the full $20,000 ? 14. How do marine insurance companies secure ratings as to the seaworthy character of vessels? 15. Is it customary to insure a ship's cargo for more than its value? 16. Enumerate some of the economic advantages of life insurance. LIFE, FIRE, MARINE, AND INDEMNITY INSURANCE. 181 17. From what is the income and resources of a life insurance company usually derived? 18. From the table given find the quarterly premium for a $5,000 life policy payable in 10 years taken at the age of 48. 19. Distinguish between annuity insurance and life insurance. 20. What general name is given to insurance company associations? 21. Distinguish between "straight" life and endowment policies.' 22. What is meant by tontine as this term is applied to life insurance? 23. A building is valued at $400,000. It is insured in A for $20,000, in B for $30,000, in C for $40,000, and in D for $60,000. A fire damages the building to the extent of $10,000. How much will D be required to pay? If the building were totally destroyed how much would A be required to pay? 24. Stock valued at $40,000 is insured for $12,000. It is damaged by water to the extent of $4,000. Find the loss. 25. A dry goods house had stock on hand January 1, valued at $500,000. Expect average profit of 20 per cent. Bought between January and July 1 $100,000. Salesbook shows sales of $360,000. Stock insured January 1 for $400,000. Burned July 1; one-half totally destroyed; balance damaged fifty per cent. Find the owner's loss. 26. The following items are taken from the yearly statement of a life insurance company: Stocks and Bonds, $103,705,308.67; Policy Reserve, $139,620,188.00; Surplus due Policy Holders, $20,249,307.73; Unpaid dividends, $147,437,07; Loans on Policies, $4,231,852.93; Accrued Interest Receivable, $,405,663.08; Premiums paid in advance, $157,415.68; Real Estate Sinking Fund, $200,000; Loans on Collaterals, $579,922.00; Premiums due, $5,571,397.74; Mortgages, $26,349,724.84; Real Estate, $14,675,478.98; Death Claims due, $1,550,382.62; Policy Trust Fund, $87,039.83. Arrange these items in a statement showing assets and liabili ties which should balance. 27. How is the name Lloyd's associated with marine insurance ? Foreign Trade Importing, Exporting, Shipping, and Ware. housing. Foreign Commerce. Commerce primarily means the interchange of property. We, however, call local commerce, business, and the general term is applied more to our trade with other nations. Commencing in the earliest ages, commerce extended as nations grew in intelligence and civilization. It has vastly increased during the last half-century. More than 2,000 years ago the Phoenician and Carthaginian traders visited England and carried away tin from Cornwall, bringing in exchange earthenware, brass manufactures, and salt. Modern commerce necessitates the existence and employment of numerous classes of people and a vast machinery of conveyance and communication. The entire world is the field of the modern merchant. He buys raw and manufactured products wherever he can buy cheapest and he ships to whatever market pays him the highest price. Our corner grocer or produce dealer may furnish us with beef from Texas, potatoes from Egypt, celery from Michigan, onions from Jamaica, coffee from Java, oranges from Spain, and a hundred other things from as many distant points, and yet so complete is the interlocking of the world's commercial interests and so great is the speed of transportation that he can supply us with these necessaries under existing conditions more easily and readily than if they were all grown on an adjoining farm. Chambers of Commerce. Chambers of Commerce and Boards of Trade are voluntary local institutions whose object is to promote the domestic or foreign trade of the cities in which they are located. They collect, classify, and dis tribute information regarding their city and its peculiar industries and advantages. They co-operate in promoting, opposing, or amending measures touching their interests. The formation of such associations is left entirely to the private enterprise of the trading community of the |