MTHEL131 Study Guide - Midterm Guide: Tax Shelter, Demutualization, Maximum Risk
19 Oct 2016
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The story of richard martin and william gibbons. Richard martins was a successful business owner that started his company from scratch and gibbons was his general manager. This was the first life insurance: the country club guys were underwriters -> a person that creates policies of insurance, 383 was the face value of the insurance, 8% was the premium, 12 month was term. London 1757 petition started in london to start life insurance by rich merchants, but was rejected at first. In 1762 the legislation was finally passed and the first life insurance company, called the old equitable , was formed. Created to prevent their love ones from being thrown into poverty after they die. Why did it take until 1757 before life insurance was commercialized. Fluctuated too much to determine life insurance policies. Plagues killed too many and the death rate didn"t become stable till the 1750"s. There was a confusion between insurance and gambling.
