Some Reasons for thinking the System of Reassurance undesirable

Extract

It has become the practice of late years for Assurance Companies, when applied to for a policy of very large amount, to issue such an one as is required and to reduce the risk within the limits they have prescribed for themselves by effecting reassurances of portions of it with other Companies. The only alternative proceeding would of course be to issue a policy for the amount to which the Company limits itself, and to leave the applicant to effect the remainder of his proposed assurance where he may. Mr. Newbatt's paper, which, as having reference to a matter of official practice merely, is not inserted here, advocates the latter mode of procedure in preference to the former, and adduces a variety of arguments in support of that view.