A Suggestion for a Modified Form of Amortization, with a Brief Memorandum of the Applicability of that Principle to the Bonds of Miscellaneous Companies

As long as bonds are bought above or below par the properly managed insurance company must have recourse to some form of amortization or accumulation. Unfortunately the present method, although it is the one used in text books and prescribed by the laws of some of the states (see § 18 of the Insurance Law of the State of New York), is based upon hypotheses which never exist and in consequence produce theoretical results only. I am sure that this thought must have occurred many times to those who have considered the question of investment accounts, and the object of this paper is merely to suggest a form of relief for insurance companies.