ABSTRACT
A Policy of life insurance is a contract agreeing to pay a certain sum upon the death of a specified person, provided death occur within a specified period. In practice the business is carried on by aggregations of policy-holders called “companies,” and the guarantee of the sum assured rests upon the obligation of the mass of policy-holders to contribute for death-claims the equivalent of the aggregate amounts which the company is obligated to pay to the individual policy-holders. In addition to this the policy-holders must pay the cost of transacting the business.
