CO129-346 - Governor Sir Lugard - 1908 [1-3] — Page 187

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what is technically known as a net premium valuation, which I

take it, is what is inferred when the Ordinance speaks in

Section No. 24 of "the net value" of a policy, is not a proper

basis to adopt in testing for selvency.

Mr. King goes on to criticise the provision

in Clause 24, that one or more policy holders or shareholders

may set the law in motion, thus leaving the companies open to

blackmail, and I would ask your careful attention to this

section of his Report.

The second part of the Report deals with

certain details in the Schedules, and I think it shows the

spirit which underlies the Report, namely, that his desire is

to obtain the best possible legislation.

ग्र Mr. Blount, .F.A., A.I.A., P.S.S., is the

Secretary for the Far East of the Standard Life Assurance

Company. A copy of his report is enclosed. His criticisms are

quite in accord with those of Mr. King, and I would draw

particular attention to his remarks on the rate of interest

involved in the Standard of Solvency, viz.:- 4 per cert.

december,

1907.

November

I enclose also a copy of the report from

Mr. Neill, 7.I.A., dealing particularly with the correct basis

of a valuation for solvency.

I enclose a copy of the Report on Life

Insurance Companies by the Select Committee of the House of

Lords. When this Committee was appointed, it was anticipated

by the public that drastic changes would be made in the English

Acts. I would call your particular attention to Page V paraTM -graph (2) and Section (V) and to Page VI paragraph (5).

Several British Actuaries were examined

besides Mr. King, viz.:- C. D. Higham, G. M. Low, N. B. Gunn,

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R. Lewis, T. G. Ackland, B. Wyatt. Of these Mr. Gunn and Mr.

Lewis, do not discuss a Standard of Solvency. Mr. Wyatt mentions it on Page 49 but without directly criticising it one way or the other. Mr. C. D. Wirham on page 25, Mr. G. . Low on pages 29 and 30 and Mr. ?. G. Ackland on page 37, all condemn the

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