[CHAPTER 12]
PRINCIPLES OF INSURANCE
References.
Gephart, W. F., Principles of insurance. 1913.
Gephart, W. F., Insurance and the state. 1913.
Huebner, S. S., Life insurance. 1915.
Huebner, S. S., Property insurance. 1913.
Statistical Abstract of the United States.
Valgren, V. N., Farmers' mutual fire insurance in Minnesota. Q. J. E., 25: 387-396. 1910-1911.
Willet, A. H., Economic theory of risk and insurance. 1901.
Zartman, L. W. (Ed.), Fire insurance. Ed., 1915.
Zartman, L. W. (Ed.), Life insurance. Ed., 1915.
Questions.
1. What are the conditions of economically sound insurance? Give at least two examples.
2. What is the essential economic difference between gambling and insurance?
3. Give examples showing the difference between a gambling house and an insurance company?
4. Investors in Russian bonds are said to take out policies of insurance payable to themselves in the event of the Czar's death, their object being to guard themselves against loss by the depreciation of their Russian securities in case of political disturbances that might emerge upon a change of rulers.