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ually secures better results. It especially avoids the danger of slackness and failure on the part of the insurer. It leads to closer scrutiny of actual losses, and helps the insurer to more carefully measure his interest, since he already has an investment in the business. Any overestimate of expected losses may be returned in dividends to the insured, or may be retained as a surplus for security against losses above the average of experience. The only weakness of this method is in the power entrusted to individual officers, elected on the ground of popularity by comparative strangers. Even when a board of directors chosen from well-known business men is added to the machinery, the dangers from incompetent and dishonest management are not avoided. Such directors are too prone to consider their names their only contribution to the welfare of the association. A joint stock company, insuring with definite premium, is likely to bring the best business management, the quickest though not always the fairest adjustment of losses, and the confidence of the business community. Its prosperity, however, is hindered somewhat by the common judgment that the interests of the stockholders must be against the interests of the insured. The actual cheapness of insurance depends not so much upon the amounts paid from time to time as upon the actual quality of the insurance purchased. Assessment companies of all kinds, without a legal lien upon definite property, are decidedly lacking in quality, since their guaranty of payment involves the financial credit of every person insured. No one should be deceived by the promise of insurance at cost, until he knows exactly how genuine that insurance will remain during the period of years for which he desires it. _Governmental control of insurance._--The essential importance of insurance and the difficulties of providing against fraud and mismanagement have led naturally to government inspection, and in some countries to government control of insurance agencies. The laws of various states provide differently for inspection and reports, and restrict the action of companies in various directions. It is probable that time will develop the necessity of greater uniformity of insurance laws and more definite requirements in the way of published reports and expert inspection. At present, insurance commissioners often have the confidence of neither companies nor people, and no expert knowledge is deman
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