A rate of mortality was assumed greater than experience has shown to prevail among well selected lives.  The important element of lapses was not considered, an element so considerable in its practical bearing upon the requirements of the company to meet its liabilities, that of one million of assumed liabilities upon say one thousand lives, only about $77.000 become actual liabilities by reason of policies maturing by death of the insured.

Assessment insurance instructed by the experience of life companies, adjusts its plans and methods upon the natural basis of fact, and not the artificial one of supposition.  It tabulates its rates according to the combined experience of all American companies, requiring the insured to pay a sum proportionate to the amount assured, and to his life expectancy.

It places its risks upon carefully selected lives only, requiring a competent medical examination of the applicant, having regard to his previous health and habits, his occupation or profession, his family history, and such other circumstances as should properly be considered in calculating probable longevity.

We assert without fear, that we shall be successfully controverted, that there is as great care and discrimination exercised in the placing of risks by our representation assessment companies, as in any other form of insurance.  Time was when this claim could not have been supported by facts, but that time is not now.  Our conservative assessment companies,—­and there are many of them that can be fairly so styled, ignore none of the scientific principles upon which life insurance depends for its permanent success.  They do believe however that their methods of conducting the business will conserve the interests of a far greater number, and relieve them of a large proportion of the burdens imposed by the older and more cumbersome form.

Assessment companies call upon their policy-holders for such sums as are required to meet actual losses, together with a small amount for expenses and for an emergency fund.  Mortuary assessments are called only when there is an amount in hand on that account, insufficient to meet the maximum sum for which a policy is issued.  They may be called at stated periods, or as the exigencies of the case shall require.  Objection is made to this method that it is unreliable, and cannot be depended upon when the mortality is from any cause unusual or excessive.

It is not claimed by the best informed advocates of assessment insurance, that direct assessments should be the sole reliance of the company.  Some other provision should be made which is referred to later in this article, but the main dependence is upon assessments.