Lectures on Elements of Political Economy (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1903 Excerpt: ... interests ana look upon their prop rty as one for certain uroses, the case is greatly altered. By such poolin0 of the interests of a nunc red householders we are able to ascertain the chances of loss to a greater certainty. Py the study of the statistics of the loss by fire of houses unde certain conditions we can settle positively that in a course of certain time three p r cent, will be destroyed. Of course we cannot say which articular one. The certainty is not absolute but nearl;/ so. The pooling of these risks reduces the elements of uncertainty in the case, we get in the place of the certainty of losing the whole the certainty of loosing a little of it. If he bears the risk alone he might during the course of a year loose five thousand dollars the v.hole of his property by fire, but if he pools his interests with the others he knows for.'. certainty that he will loose a small part of it, say six dollars which goes towards paying for the losses sustained by those whose houses have been destroyed during, the year, and who were in the pool. I had better charge the certain loss of six dollars to fifty dollars so: .s to correspond better with a total loss of so much money as five thousand dollars. Ke p may not loose five thousand durin. the year but you substitute the small certain loss of fifty dollars for the possible loss of five thousand. This relies to other kirns of insurance cs well as fire insurance. So much for the general character of insurance. I will now consider the special types of insurance. Vie have seen thet there is insurance against fire, insurance against cyclones, insurance against loss by lightning etc. e usually h. ve two general tyres known cs C0-0PTMR/TI7E and SPECULATIVE insurance. In a certain w: y all insurance is cooperative ins...