Some time ago, the writer had occasion to examine the principal methods adopted by life assurance companies in the distribution of surplus, and particularly the plan which is known as “Sprague's Method”, from the name of its inventor, Dr. Sprague, or the “Equity and Law Method”, from the name of the company to which it was first applied. The plan is at present employed by comparatively few British offices, but it has recently been adopted by several companies in substitution for systems previously in vogue, and it appears to be rapidly growing in theoretical importance as a standard by which to test the effect of other systems of distribution. Nevertheless, it would appear that, apart from the brief description of the method originally given by Dr. Sprague (and quoted below), there is no systematic discussion of the principles of the method in the pages of the Journal of the Institute of Actuaries, and it is therefore thought that a few notes respecting some of the points which arise in connection with the practical application of the method may be of service to those who are studying the subject, but who may share the experience that little information is to be gleaned from the Journal.