THOUSAND DOLLARS, upon satisfactory proofs of the death of said Joseph W. O'Brien, of Grand Haven, in the county of Ottawa, State of Michigan.

New York, the 17th day of March, A. D. 1891.

J. B. LORING, Registrar.

H. B. HYDE, President.

New Free Tontine. No. 89. Second Edition.

Examined by......

NOTICE.-No person except one of the executive officers named above is authorized to make, alter, or discharge contracts or waive forfeitures.

[On the back of policy, in red.]

List of privileges, the details of which will be found in the application.

This policy becomes incontestable two years from its date of issue. It provides for a paid-up policy after three years for as many twentieths of the original policy as complete annual premiums have been paid. It grants freedom of residence, travel, and occupation after one year. It gives to Joseph W. O'Brien a choice of six methods of settlement upon the completion of the tontine period, on the 10th day of March, 1911 (March 10, 1911) namely:

1. The surrender of the policy for its full value consisting of the entire reserve, amounting to $2,335.00, twenty-three hundred and thirty-five dollars, together with the surplus then apportioned by the Society, either in (1) cash; (2) paid-up assurance; (3) a lifeannuity, or

2. The continuance of the policy and the withdrawal of the accumulated surplus, either in (1) cash; (2) paid-up assurance; (3) an annuity.

W. ALEXANDER, Secretary.
H. B. HYDE, President.

[On the front of the policy, in red.]

No. 520,424.

The Equitable Life Assurance Society of the United States.

120 Broadway, New York.

Free Tontine Policy.

Assurance on the Life of J. W. O'Brien.

No dividend will be declared on this policy until the 10th day of March, 1911.

Amount $5,000.

Term, life, 20 A. P.

First payment, $155.50.

Premium due 10th March, $155.50.

Register date of policy, 10th March, 1891.

American Bank Note Company, New York.

"William Halsey," at the bottom, written on the bottom of the policy, and the indorsement, indorsed at the bottom, "William Halsey."

EXHIBIT II.
[Front.]

For Use in 1891.

FREE TONTINE ILLUSTRATION BLANK.

For 10, 15 or 20 Payment Life Policies, with Corresponding Tontine Periods.

2. Paid-Up Value (see note on other side)

$9,700.00

N. B.-The foregoing blank must be filled up from the Book of Tables issued during the current year by the Equitable Life Assurance Society of the United States, and based on the Society's actual experience up to 1891.

[Back of Exhibit II.]

THE ADVANTAGES OF A FREE TONTINE POLICY SHOWN BY AN ILLUSTRATION BASED ON ACTUAL EXPERIENCE.

The fund belonging to the policy holder at the end of the tontine period, consists of two parts: (1) The Reserve, which is a fixed quantity, may be stated in advance, and, if desired, may be written in the policy. (2) The Surplus (popularly known as "profits" or "dividends"), which is a varying quantity, depending on future

experience. One of the chief recommendations of the Free Tontine Policy is that the Society guarantees the payment of the Entire Reserve at the end of the tontine period. The Surplus is guaranteed also, but its amount cannot be determined in advance. Calculations, however, based on the experience of the past, show approximately the surplus profits which would be payable with such a policy, if it had been issued by the Society 10, 15, or 20 years ago, and ended its tontine period today. While the results of the future must necessarily depend on the experience of the future, figures based on past experience furnish the best attainable data upon which to judge of the management of the Society, and the value of the policies now offered.

The Free Tontine Policy grants many benefits denied under all older forms. It gives absolute freedom as to travel, residence and occupation after one year, and becomes incontestable after two years.

NOTE.—Where the paid up value of the policy, at the end of the tontine period, exceeds the face value of the original policy, the assured has the privilege of taking a paid-up policy for the full amount of the original policy, drawing the excess on the cash basis; or the paid-up policy may be issued to include this excess subject to a satisfactory medical certificate of good health.

J. G. VAN CISE, Asst. Actuary.

120 Broadway, N. Y., Jan. 1, 1891.

Plaintiff did not know whether or not the green slipExhibit II-was attached to the policy when issued by the defendant. The written portion of the slip was in the handwriting of Halsey. Plaintiff testified that Exhibit II contained the figures and representations upon which he made the application for the policy; that when he received the policy, and the green slip, he read the policy all over, and that he read the front of the green slip sufficiently to verify the fact that the figures given in the green slip were the same that Halsey had previously given him. On cross-examination the plaintiff testified as follows:

66

"When I got this policy I presume I read all of it over, the face of it and the back of it. I presume I took the policy and the green slip together, and understood from them both that I was to be paid $2,210.05. I knew nothing of this policy that they were going to pay me the surplus until it was handed to me. I never saw these figures on the back

of it, until after it was handed to me. I presume I examined the policy, and it was stated on the back of the policy that the surplus was to be, the amount apportioned by the society in 1911; but that was a condition afterwards, after the policy was paid for, and after the other contract had been entered into. I think I read the green slip while it was attached to the policy. I do not think I read the back of the green slip at that time. We had talked over what was on the front of the green slip before he had filled it in, and I knew what he was going to put in there. I read over the front of the green slip at the time, to verify what he had said to me during his conversations. I noticed at that time that there was a statement on the front of the green slip that it was an 'illustration blank '; but I did not notice at that time the statement on the front that the results given were given on the basis explained on the other side of the sheet. I presume that is stated very plainly on the front of Exhibit II. I have read over the back of the green slip. I presume I read it over about the time it matured. cause the figures had been talked over with Mr. Halsey and myself for several meetings when he solicited my insurance, and when I saw the figures verified that he willingly put in there, I took it for granted that that was all there was to it. I don't suppose I paid very much attention to it."

Be

It is conceded by counsel for the defendant that the figures in the green slip were undoubtedly correctly inserted by Mr. Halsey; that they were correctly computed from the agents' book of the Equitable, and were inserted in the green slip under exactly the conditions which they were given in the agents' book, and were authorized to be used. The application signed by the plaintiff provided, among other things, as follows:

"VI. Tontine Profits.

"At the end of the tontine period, if the person proposed for assurance be then living, and the policy in force, the policy shall participate in the accumulated surplus derived from the policies on the free tontine plan, both existing and discontinued, as may then be apportioned by the society.

"VII. Choice of Privileges at the End of the Tontine

Period.

"The policy may then be surrendered for its full value, consisting of the entire reserve and the surplus then apportioned by the society."

Certain free tontine tables contained in the agent's book in use by defendant's agents in 1891 were offered in evidence by plaintiff and received, from which the following are extracts:

"Tables for 1891 to illustrate the advantages of tontine policies and bonds based on the results of tontine policies maturing in 1891."

Important.-The society issues official illustration blanks. The figures in this book are to be used in filling up these blanks. They are to be used in no other way. In no case are they to be given in letters, or on slips of paper, or on any but the society's official blanks. See that in each case the appropriate figures are correctly_given on the proper blank. This book is to be used only during the year 1891, in filling up blanks dated 1891."

"Note.-The amount of profits which will be distributed among the holders of the free tontine (and semitontine), policies and bonds of the Equitable Life Assurance Society of the United States cannot be stated in advance, but calculations based on the experience of the past under tontine policies which have matured show approximately the surplus profits which would be payable with such policies and bonds if they had been issued in the past and matured today. While the results of the future must necessarily depend on the experience of the future, figures based on past experience furnish the best attainable data upon which to judge of the management of the society, and the value of its policies. These tables are prepared annually to enable agents to give illustrations based on the actual result of policies maturing during the year in which the illustrations are given. This book is to be used only during the year 1891 in filling up the society's official blanks issued for 1891. Dated January 1, 1891.”

Counsel for the defendant concede that the agent, Halsey, was authorized to fill in the blanks in the green slip from the book in the manner which he did, but claim that