^{page 333 note *} See Report on application of the “Equitable” for a charter, Vol. I., page 89.

^{page 334 note *} p_x here denoting the premium for the risk; Φ_x, the difference between it and the premium charged; c and e, the claims and expenses respectively; and being f used as a symbol of summation merely.

^{page 334 note †} There are, no doubt, others of an accidental description—such, for instance, as the abandonment of assurances by their owners; but although this was a matter of frequent occurrence formerly, it is no longer so at the present day; and it is very important to bear in mind, that it is only the value of the policy which in such cases fells into the general fund, not the amount of the premiums paid in respect of it, as the statements frequently put forth would seem to imply.

^{page 341 note *} Take, for instance, the generally prevailing method of dividing the surplus in the proportion indicated by the difference between the amount of premiums paid at compound interest and the value of the assurance. Tha t is to say, in the proportion shewn by ∫.p _x-∫.l.

Since ∫.l= ∫.p_x-∫.c, the former expression is equal to ∫.p _x- (∫. p_x-∫.c)= ∫Φ_x+∫.c; so that the surplus is thus actually allotted amongst the assurances by this method, not simply in the proportion in which each has contributed thereto, but in the extraordinary ratio of its contribution to surplus, and to the payment of claims.