Some other provision should be made which is referred to later
in this article, but the main dependence is upon assessments.
If companies are honestly and capably conducted, and risks judiciously
selected, there is nothing in the experience of life companies to
indicate that mortality assessments on the _average_ will be
sufficiently burdensome to seriously threaten the permanence of the
institution. Where disaster has been visited upon assessment companies,
the cause has been easily traceable to incompetent or dishonest conduct
of the business, and utter disregard of the foundation principles of all
insurance. It has in no instance been fairly chargeable to defects in
the system. With the record before us of our best assessment companies,
faithfully and competently administered, paying their losses promptly,
at a cost to the insured for a term of years, of one third to one half
only, of that in level premium companies, what reason is there for the
insuring public withdrawing their patronage.
But we admit that it is not sound policy to depend upon assessments
alone, and this view is held by most if not all, who have studied the
subject in its various aspects.
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