Premiums and Reserves for Deferred Payment Protection [Discussion]

Mr. Powell's paper very adequately covers the technical background of the rating and rating factors. In computing rates on deferred payment insurance we are dealing with a subject, which even more than most insurance rating, combines the mathematical and actuarial rating with the judgment factors that must temper the rate. Mr. Powell has wisely left out several minor refinements which from a strictly technical standpoint might be considered essential, but it would be fool-hardy to consider the exact mathematical factors when we are, to a great extent, purely estimating the class of risk that we are writing. We have taken the ordinary classification as applying, but for all we know, the medium class or possibly the extra preferred class would more nearly be justifiable.