Where there are no such companies, as those just named, then private citizens of known responsibility must be secured to go on the bond.
In every case the amount of the bond or security is measured by the responsibilities of the man from whom it is required.
CHAPTER XIX
LIFE INSURANCE
Life insurance may be defined to be "A contract for the future payment of a certain sum of money to a person specified in the body of the policy, on conditions dependent on the length of some particular person's life."
There are two parties to this contract—the insured and the insurer.
The purpose of the insurer, if he take out the policy in his own name, is to provide in a measure for the care of his family, or other dependents, in the event of his death.
After a long experience with the death rates in all lands that keep mortuary statistics, the actuaries of insurance companies can now estimate with surprising accuracy the probable length of life before any man of any age.
The methods of insurance companies mean to be scientific, but be that as it may, they are certainly interesting.