National Westminster Bank known as NatWest, is a major retail and commercial bank in the United Kingdom. It was established in 1968 by the merger of National Provincial Westminster Bank. Since 2000, it has been part of The Royal Bank of Scotland Group. Following "ringfencing" of the Group's core domestic business, the bank became a direct subsidiary of NatWest Holdings. NatWest is considered one of the Big Four clearing banks in the UK, it has a large network of over 960 branches and 3,400 cash machines across Great Britain and offers 24-hour Actionline telephone and online banking services. Today, it has 850,000 small business accounts. In Ireland, it operates through its Ulster Bank subsidiary. In 2017, NatWest was awarded Best Banking App in the British Bank Awards; the bank's origins date back to 1658 with the foundation of Smith's Bank of Nottingham. Its oldest direct corporate ancestor, National Provincial Bank, was formed in 1833 as the National Provincial Bank of England, it acquired Union of London and Smith's Bank in 1918 to become National Provincial and Union Bank, shortening its name back to National Provincial in 1924.
National Provincial bought District Bank in 1962, but continued to operate District's branch network separately. Westminster Bank was founded in 1834 as London and Westminster Bank dropping the "London" portion in 1923; the creation of the modern bank was announced in 1968, National Westminster Bank Limited commenced trading on 1 January 1970, after the statutory process of integration had been completed in 1969. The famous three arrowheads symbol was adopted as the new bank's logo; the District, National Provincial, Westminster Banks were integrated in the new firm's structure, but private bankers Coutts & Co. Ulster Bank in Northern Ireland and the Isle of Man Bank continued as separate operations. Westminster Foreign Bank was restyled International Westminster Bank in 1973. Duncan Stirling, outgoing chairman of Westminster Bank, became first chairman of the fifth largest bank in the world. In 1969 David Robarts, former chairman of National Provincial, assumed Stirling's position. In 1975 it was one of the first London banks to open a representative office in Scotland.
It was a founder member of the Joint Credit Card Company which launched the Access credit card in 1972 and in 1976 it introduced the Servicetill cash machine. The same banks, excluding Lloyds, were responsible for the introduction of the Switch debit card in 1988. Deregulation in the 1980s, culminating in the Big Bang in 1986 encouraged the bank to enter the securities business. County Bank, its merchant banking subsidiary formed in 1965, acquired various stockbroking and jobbing firms to create the investment banking arm County NatWest. National Westminster Home Loans was established in 1980 and other initiatives included the launch of the Piggy Account for children in 1983, the Credit Zone, a flexible overdraft facility on which customers only pay interest and the development of the Mondex electronic purse in 1990; the Action Bank advertising campaign spearheaded a new marketing-led approach to business development. Under the direction of Robin Leigh-Pemberton Lord Kingsdown, who became chairman in 1977, the bank expanded internationally, forming National Westminster Bancorp in the United States of America with a network of 340 branches across two states, National Westminster Bank of Canada and NatWest Australia Bank.
In 1982, the Frankfurt office of International Westminster Bank merged with Global Bank AG to form Deutsche Westminster Bank. In 1985, Banco NatWest España was formed and National Westminster Bank SA was incorporated in 1988, taking over the bank's six branches in France and Monaco. In 1989, International Westminster Bank was merged into National Westminster Bank by Act of Parliament. Completed in 1980, the bank built the National Westminster Tower in London to serve as its international headquarters. At a height of 600 feet it was the tallest building in the UK until the topping-out of Canary Wharf Tower 10 years later. Worthy of note is National Westminster House in Birmingham: the building was sold to British Land in 2007 and demolished in 2015; the bank's expansion strategy hit trouble with the stock market crash of 1987 and involvement in the financial scandal surrounding the collapse of Blue Arrow. The Department of Trade and Industry report on the affair was critical of the bank's management and resulted in the resignation of several members of the board, including chairman Lord Boardman.
Monzo Bank Ltd, is a digital, mobile-only bank based in the United Kingdom. Operating through a mobile app and a prepaid debit card, in April 2017 their UK banking licence restrictions were lifted, enabling them to offer a current account. Monzo was one of the earliest of a number of new app-based challenger banks in the UK, it was founded as Mondo in 2015 by Tom Blomfield, Jonas Huckestein, Jason Bates, Paul Rippon and Gary Dolman. The team had met whilst working at Starling Bank. In February 2016, Mondo set the record for "quickest crowd-funding campaign in history" when it raised £1m in 96 seconds via the Crowdcube investment platform. Two weeks prior to the name change, Monzo was granted a restricted banking licence, by the Prudential Regulation Authority and the Financial Conduct Authority and as of April 2017 these restrictions have been lifted. Monzo had a number of prepaid debit cards in operation which it issued to users for testing purposes; these cards were in use until current accounts were made available to all and the prepaid programme was closed on 4 April 2018.
On 16 May 2017, Monzo announced that over £250 million had been spent through its prepaid card, between 200,000 customers. Monzo is registered at Companies House under the legal name'Monzo Bank Ltd' and traded as Mondo. On 13 June 2016, a company blog post announced that the "Mondo" trademark had been challenged by an undisclosed company with a similar name; as a result, a naming suggestion contest was organised and the new name, "Monzo", was announced on 25 August 2016. In October 2016, Monzo announced an'interim' funding round valuing the company at £50M and raised £4.8M in the process led by Passion Capital. This round was followed by a second £2.5 million Crowdcube crowd-funding campaign with the total pledged hitting the target amount. On 17 July 2017, Monzo announced the current account preview and began inviting eligible customers to sign-up for a preview of the full current account. Customers attended events at the company's offices in London but cards have been sent out via post. In line with the company's general stance on transparency, the Monzo website includes a live counter showing progress on the rollout.
In October 2017, Monzo announced that it would be discontinuing free ATM withdrawals abroad, replacing them with a free monthly withdrawal of up to £200 and a charge of 3% on subsequent withdrawals. This change came into effect on 18 December 2017. On 7 June 2018 Monzo announced an integration with IFTTT which allowed users to connect their account to smart devices and services. For example, connecting Monzo to Amazon Alexa. During June 2018, Monzo gained significant public interest after fraud analysts with the bank spotted signs of and publicly announced a Ticketmaster data breach in April 2018, before Ticketmaster had spotted the breach themselves, two months before Ticketmaster admitted the breach had occurred. On 25 June 2018, Monzo announced their team up with TransferWise to provide international money transfers from within their Monzo app. Existing TransferWise customer can connect their account to use along Monzo app, it was announced in November 2018 that interest would be paid on savings in collaboration with Investec.
On 21 November 2018, Monzo added the functionality for users to pay cash into their Monzo accounts using PayPoint, charging users £1 for each deposit. On 5 December 2018, Monzo held another £20 million Crowdcube crowd-funding campaign with the total pledged hitting the target amount within 3 hours. On 28 January 2019, Monzo announced a partnership with Flux to add itemised receipts and loyalty points. In addition to this, the API to create receipts was published by Monzo. Monzo issued a variety of alpha and investor cards to its customers who wanted to be early adopters; these were prepaid Mastercards which the user could top-up via bank transfer or via an existing debit card. The balance on the card could be spent via contactless and pin, magnetic stripe or online. From early on, Monzo has issued cards in a neon "hot coral" colour - intended as a temporary measure during prototyping - but a deliberate decision arising from the success of the "eye-catching" design. In December 2017, Monzo issued new Debit Mastercard cards to all its existing and new customers as the bank began rolling out current accounts.
Customers signing up for the current account are issued a Debit Mastercard. Like all card providers, Monzo enforces a range of limits on ATM withdrawals, top-up amounts, single payments and the overall balance on the card. Monzo has released mobile apps for both Android phones. Payments made with the Monzo cards will trigger push notifications in real-time to phones running the apps, where historical transactions can be viewed. Users can categorise their transactions, freeze the card, mark company expenses and view an overview of their spending habits. Where available, the apps will show a map depicting the location at which the transaction took place, along with the company's logo. Transactions will be auto-categorised based on the company involved in the payment, with data accuracy improved via crowd-sourced suggestions. A roadmap for Monzo's mobile apps and related services is publicly available to view and vote upon on Trello. On 29 September 2016, Monzo made the Android app publicly available for anyone in the UK to use.
This was preceded by a private beta with consumers who visited the office in-person to collect a card. Banks in the UK offer customers limited or no programmatic access to their financial data. Whilst the UK Government is looking into legislation to require existing banks to comply and adopt standards for secure and open APIs, Monzo has released a prot
Royal Bank of Scotland
The Royal Bank of Scotland (Scottish Gaelic: Banca Rìoghail na h-Alba, Scots: Ryal Bank o Scotland abbreviated as RBS, is one of the retail banking subsidiaries of The Royal Bank of Scotland Group plc, together with NatWest and Ulster Bank. The Royal Bank of Scotland has around 700 branches in Scotland, though there are branches in many larger towns and cities throughout England and Wales. Both the bank and its parent, The Royal Bank of Scotland Group, are separate from the fellow Edinburgh-based bank, the Bank of Scotland, which pre-dates The Royal Bank of Scotland by 32 years; the Royal Bank of Scotland was established in 1724 to provide a bank with strong Hanoverian and Whig ties. Following ring-fencing of the Group's core domestic business, the bank is expected to become a direct subsidiary of NatWest Holdings by 2019. NatWest Markets comprises the Group's investment banking arm. To give it legal form, the former RBS entity was renamed NatWest Markets in 2018. Drummond and Child & Co. businesses in England.
The bank traces its origin to the Society of the Subscribed Equivalent Debt, set up by investors in the failed Company of Scotland to protect the compensation they received as part of the arrangements of the 1707 Acts of Union. The "Equivalent Society" became the "Equivalent Company" in 1724, the new company wished to move into banking; the British government received the request favourably as the "Old Bank", the Bank of Scotland, was suspected of having Jacobite sympathies. Accordingly, the "New Bank" was chartered in 1727 as the Royal Bank of Scotland, with Archibald Campbell, Lord Ilay, appointed its first governor. On 31 May 1728, the Royal Bank of Scotland invented the overdraft, considered an innovation in modern banking, it allowed a merchant in the High Street of Edinburgh, access to £ 1,000 credit. Competition between the Old and New Banks was centred on the issue of banknotes; the policy of the Royal Bank was to either drive the Bank of Scotland out of business, or take it over on favourable terms.
The Royal Bank built up large holdings of the Bank of Scotland's notes, which it acquired in exchange for its own notes suddenly presented to the Bank of Scotland for payment. To pay these notes, the Bank of Scotland was forced to call in its loans and, in March 1728, to suspend payments; the suspension relieved the immediate pressure on the Bank of Scotland at the cost of substantial damage to its reputation, gave the Royal Bank a clear space to expand its own business—although the Royal Bank's increased note issue made it more vulnerable to the same tactics. Despite talk of a merger with the Bank of Scotland, the Royal Bank did not possess the wherewithal to complete the deal. By September 1728, the Bank of Scotland was able to start redeeming its notes again, with interest, in March 1729, it resumed lending. To prevent similar attacks in the future, the Bank of Scotland put an "option clause" on its notes, giving it the right to make the notes interest-bearing while delaying payment for six months.
Both banks decided that the policy they had followed was mutually self-destructive and a truce was arranged, but it still took until 1751 before the two banks agreed to accept each other's notes. The bank opened its first branch office outside Edinburgh in 1783 when it opened one in Glasgow, in part of a draper's shop in the High Street. Further branches were opened in Dundee, Dalkeith, Port Glasgow, Leith in the first part of the nineteenth century. In 1821, the bank moved from its original head office in Edinburgh's Old Town to Dundas House, on St. Andrew Square in the New Town; the building as seen along George Street forms the eastern end of the central vista in New Town. It was designed for Sir Lawrence Dundas by Sir William Chambers as a Palladian mansion, completed in 1774. An axial banking hall behind the building, designed by John Dick Peddie, was added in 1857; the banking hall continues in use as a branch of the bank, Dundas House remains the registered head office of the bank to this day.
The rest of the nineteenth century saw the bank pursue mergers with other Scottish banks, chiefly as a response to failing institutions. The assets and liabilities of the Western Bank were acquired following its collapse in 1857. By 1910, the Royal Bank of Scotland had around 900 staff. In 1969, the bank merged with the National Commercial Bank of Scotland to become the largest clearing bank in Scotland; the expansion of the British Empire in the latter half of the nineteenth century saw the emergence of London as the largest financial centre in the world, attracting Scottish banks to expand southward into England. The first London branch of the Royal Bank of Scotland opened in 1874. However, English banks moved to prevent further expansion by Scottish banks into England. An agreement was reached, under which English banks would not open branches in Scotland and Scottish banks would not open branches in England outside London; this agreement remained in place until the 1960s, although various cross-border acquisitions were permitted.
The Royal Bank's English expansion plans were resurrected after World War I, when it acquired various small English banks, includin
Virgin Money UK
Virgin Money plc is a UK-based bank and financial services company founded by Sir Richard Branson in March 1995. It was known as Virgin Direct, pioneered index tracking by launching a value Personal Equity Plan into the market. In the 2000s Virgin Money expanded its operations around the world. Virgin Money announced plans to become a retail bank, attempted to purchase Northern Rock in 2007 before it was nationalised by the British Government. Virgin applied for its own banking licence from the Financial Services Authority in 2009, gained one through the acquisition of Church House Trust the following year. Virgin rebranded the business as Virgin Money. In June 2018, Virgin Money agreed to a takeover by CYBG plc, completed in October 2018, it launched as Virgin Direct Personal Financial Services Limited in partnership with Norwich Union on 3 March 1995 offering PEP's and launched Virgin One, in a partnership with The Royal Bank of Scotland, in 1997. That year, Australia's AMP bought Norwich Union's 50% stake in Virgin Direct.
In 2000, virginmoney.com was launched as a price comparison website. RBS bought out Virgin's stake in the One Account joint venture in 2001. In 2002, Virgin Direct merged with virginmoney.com to form the current company. Virgin Money expanded its operations around the world in the 2000s; the Virgin Group took 100% ownership of Virgin Money in April 2004, buying the remaining 50% stake for £90 million from AMP's HHG arm. In 2007, Virgin made a bid to acquire the Northern Rock bank. In an interview with The Times on 9 March 2009, Branson stated that he still hoped that Virgin Money would expand its operations into the banking sector, saying "We are going to get back into the mortgage business and we will become a bank either by acquisition or by getting our own banking licence. You will see us become a consumer bank within the next couple of years." In October 2009, Virgin Money applied to the FSA for a full banking licence. In February 2011 they announced their intention to lease a large office in Edinburgh.
On 8 January 2010, Virgin Money announced the acquisition of Church House Trust for £12.3 million, giving Virgin a small foothold in the UK banking market. Although Church House Trust had no branches, it provided Virgin with a banking licence; as part of the acquisition, Virgin agreed to invest a further £37.3 million of new capital into the business. On 26 January the deal was declared unconditional. In late January Sir Brian Pitman became the Chairman of Virgin Money. In February Pitman stated that the company was interested in acquiring some branches of other banks which lie in good locations. Following Pitman's death Sir David Clementi was appointed Chairman. In April 2010, WL Ross & Co. LLC invested £100 million in Virgin Money for a 21% stake in the company. WL Ross had supported Virgin Money in its previous bid for Northern Rock. James Lockhart, Vice Chairman of WL Ross, joined the Virgin Money board. On 13 October 2007, Sir Richard Branson announced that Virgin Group were putting together a consortium of financiers to propose to plough millions into the troubled Northern Rock bank and in return take an approximate 30% stake in the business, bringing the current financial products offered by Virgin and combining them with Northern Rock's own financial products.
By February 2008, Virgin were the favoured bidders for the bank and announced in its official submission to the government that, if successful, they would have merged Northern Rock and Virgin Money, naming the new company "Virgin Bank". The initial bid was not successful, Northern Rock was nationalised. During 2011 the Government again asked suitors to come forward with proposals for Northern Rock. On 17 November 2011, it was announced that Virgin Money were to buy Northern Rock plc for £747 million, with other potential payments of up to £280 million over the next few years. By July 2012, a further £73 million was paid as deferred consideration. W. L. Ross increased his stake in Virgin Money, owning 44% of the combined business by putting £260 million into the deal. Both Abu Dhabi-based Stanhope Investments and Branson's Virgin Group invested £50 million in the Northern Rock deal. In 2014, Virgin Money repaid a further £154.5 million that it had received as part of the refinancing package. There were to be no further job losses, except for those announced.
Virgin has pledged to keep the headquarters of the savings and mortgages business in Newcastle upon Tyne. On 9 January 2012, Richard Branson visited the Gosforth site and some branches of Northern Rock around Newcastle, including one with temporary Virgin Money branding. On 22 June 2012, Virgin acquired the remainder of the Gosforth site from Northern Rock plc, the "bad-bank", split from Northern Rock prior to the sale of the bank to Virgin. On 23 July it was announced that Virgin would be acquiring £465 million worth of mortgage assets from Northern Rock. On 12 October, Northern Rock plc was renamed Virgin Money plc and the Northern Rock brand was phased out. In January 2013, Virgin agreed to buy £1 billion of assets from MBNA; the credit card book was integrated into Virgin Money's operations in 2014, was expected to create 150 jobs at the Gosforth offices. The former Vice Chairman of MBNA Corporation, Lance Weaver, became Virgin Money's President of Virgin Money Cards. A further £363 million credit card asset portfolio was purchased from MBNA in 2014.
A bank is a financial institution that accepts deposits from the public and creates credit. Lending activities can be performed either indirectly through capital markets. Due to their importance in the financial stability of a country, banks are regulated in most countries. Most nations have institutionalized a system known as fractional reserve banking under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are subject to minimum capital requirements based on an international set of capital standards, known as the Basel Accords. Banking in its modern sense evolved in the 14th century in the prosperous cities of Renaissance Italy but in many ways was a continuation of ideas and concepts of credit and lending that had their roots in the ancient world. In the history of banking, a number of banking dynasties – notably, the Medicis, the Fuggers, the Welsers, the Berenbergs, the Rothschilds – have played a central role over many centuries.
The oldest existing retail bank is Banca Monte dei Paschi di Siena, while the oldest existing merchant bank is Berenberg Bank. The concept of banking may have begun in ancient Assyria and Babylonia, with merchants offering loans of grain as collateral within a barter system. Lenders in ancient Greece and during the Roman Empire added two important innovations: they accepted deposits and changed money. Archaeology from this period in ancient China and India shows evidence of money lending. More modern banking can be traced to medieval and early Renaissance Italy, to the rich cities in the centre and north like Florence, Siena and Genoa; the Bardi and Peruzzi families dominated banking in 14th-century Florence, establishing branches in many other parts of Europe. One of the most famous Italian banks was the Medici Bank, set up by Giovanni di Bicci de' Medici in 1397; the earliest known state deposit bank, Banco di San Giorgio, was founded in 1407 at Italy. Modern banking practices, including fractional reserve banking and the issue of banknotes, emerged in the 17th and 18th centuries.
Merchants started to store their gold with the goldsmiths of London, who possessed private vaults, charged a fee for that service. In exchange for each deposit of precious metal, the goldsmiths issued receipts certifying the quantity and purity of the metal they held as a bailee; the goldsmiths began to lend the money out on behalf of the depositor, which led to the development of modern banking practices. The goldsmith paid interest on these deposits. Since the promissory notes were payable on demand, the advances to the goldsmith's customers were repayable over a longer time period, this was an early form of fractional reserve banking; the promissory notes developed into an assignable instrument which could circulate as a safe and convenient form of money backed by the goldsmith's promise to pay, allowing goldsmiths to advance loans with little risk of default. Thus, the goldsmiths of London became the forerunners of banking by creating new money based on credit; the Bank of England was the first to begin the permanent issue of banknotes, in 1695.
The Royal Bank of Scotland established the first overdraft facility in 1728. By the beginning of the 19th century a bankers' clearing house was established in London to allow multiple banks to clear transactions; the Rothschilds pioneered international finance on a large scale, financing the purchase of the Suez canal for the British government. The word bank was taken Middle English from Middle French banque, from Old Italian banco, meaning "table", from Old High German banc, bank "bench, counter". Benches were used as makeshift desks or exchange counters during the Renaissance by Jewish Florentine bankers, who used to make their transactions atop desks covered by green tablecloths; the definition of a bank varies from country to country. See the relevant country pages under for more information. Under English common law, a banker is defined as a person who carries on the business of banking by conducting current accounts for his customers, paying cheques drawn on him/her and collecting cheques for his/her customers.
In most common law jurisdictions there is a Bills of Exchange Act that codifies the law in relation to negotiable instruments, including cheques, this Act contains a statutory definition of the term banker: banker includes a body of persons, whether incorporated or not, who carry on the business of banking'. Although this definition seems circular, it is functional, because it ensures that the legal basis for bank transactions such as cheques does not depend on how the bank is structured or regulated; the business of banking is in many English common law countries not defined by statute but by common law, the definition above. In other English common law jurisdictions there are statutory definitions of the business of banking or banking business; when looking at these definitions it is important to keep in mind that they are defining the business of banking for the purposes of the legislation, not in general. In particular, most of the definitions are from legislation that has the purpose of regulating and supervising banks rather than regulating the actual business of banking.
However, in many cases the statutory definition mirrors the common law one. Examples of statutory definitions: "banking business" means the business of receiving money on current or deposit account and collecting cheques drawn by or paid in by customers, the making
HSBC Private Bank
HSBC Private Bank is the principal private banking business of the HSBC Group. HSBC Private Bank's holding company is HSBC Private Banking Holdings S. A.. The holding company is wholly owned by British HSBC Bank plc and its subsidiaries include HSBC Private Bank S. A. HSBC Private Bank Limited, HSBC Private Bank Limited, HSBC Private Bank S. A. HSBC Private Bank S. A. and HSBC Financial Services Limited. HSBC Private Bank, together with the private banking business of HSBC Trinkaus & Burkhardt AG known collectively as Global Private Banking, provides services to wealthy people and their families through 96 offices in some 43 countries and territories in Europe, the Americas, the Asia-Pacific region, the Middle East and Africa. At 31 December 2008, profits before tax were US$1,447 million and combined client assets under management were US$352 billion. HSBC Guyerzeller Bank AG was a subsidiary HSBC Private Bank. In 2009 the HSBC Guyerzeller business was re-branded HSBC Private Bank. In October 2012, HSBC Private Bank sold Property Vision Holdings Limited to PV Acquisition Limited in a 100% management buyout.
Property Vision was acquired by HSBC in 2001 and specialises in managing and providing advice on property purchases. Property Vision's exit from HSBC was part of wider restructuring by the bank, which made 36 disposals of “non-core operating assets” in 2011-2012. HSBC has announced the transfer of the bulk of its private banking business in Monaco to CFM Indosuez Wealth Management; the current HSBC private banking business employs 200 people. Those assets and parts of the business that do not transfer will be wound down. Swiss Leaks Official website
Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of an insured person. Depending on the contract, other events such as terminal illness or critical illness can trigger payment; the policy holder pays a premium, either or as one lump sum. Other expenses, such as funeral expenses, can be included in the benefits. Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are written into the contract to limit the liability of the insurer. Modern life insurance bears some similarity to the asset management industry and life insurers have diversified their products into retirement products such as annuities. Life-based contracts tend to fall into two major categories: Protection policies – designed to provide a benefit a lump sum payment, in the event of a specified occurrence.
A common form—more common in years past—of a protection policy design is term insurance. Investment policies – the main objective of these policies is to facilitate the growth of capital by regular or single premiums. Common forms are whole life, universal life, variable life policies. An early form of life insurance dates to Ancient Rome; the first company to offer life insurance in modern times was the Amicable Society for a Perpetual Assurance Office, founded in London in 1706 by William Talbot and Sir Thomas Allen. Each member made an annual payment per share on one to three shares with consideration to age of the members being twelve to fifty-five. At the end of the year a portion of the "amicable contribution" was divided among the wives and children of deceased members, in proportion to the number of shares the heirs owned; the Amicable Society started with 2000 members. The first life table was written by Edmund Halley in 1693, but it was only in the 1750s that the necessary mathematical and statistical tools were in place for the development of modern life insurance.
James Dodson, a mathematician and actuary, tried to establish a new company aimed at offsetting the risks of long term life assurance policies, after being refused admission to the Amicable Life Assurance Society because of his advanced age. He was unsuccessful in his attempts at procuring a charter from the government, his disciple, Edward Rowe Mores, was able to establish the Society for Equitable Assurances on Lives and Survivorship in 1762. It was the world's first mutual insurer and it pioneered age based premiums based on mortality rate laying "the framework for scientific insurance practice and development" and "the basis of modern life assurance upon which all life assurance schemes were subsequently based". Mores gave the name actuary to the chief official—the earliest known reference to the position as a business concern; the first modern actuary was William Morgan, who served from 1775 to 1830. In 1776 the Society carried out the first actuarial valuation of liabilities and subsequently distributed the first reversionary bonus and interim bonus among its members.
It used regular valuations to balance competing interests. The Society sought to treat its members equitably and the Directors tried to ensure that policyholders received a fair return on their investments. Premiums were regulated according to age, anybody could be admitted regardless of their state of health and other circumstances; the sale of life insurance in the U. S. began in the 1760s. The Presbyterian Synods in Philadelphia and New York City created the Corporation for Relief of Poor and Distressed Widows and Children of Presbyterian Ministers in 1759. Between 1787 and 1837 more than two dozen life insurance companies were started, but fewer than half a dozen survived. In the 1870s, military officers banded together to found both the Army and the Navy Mutual Aid Association, inspired by the plight of widows and orphans left stranded in the West after the Battle of the Little Big Horn, of the families of U. S. sailors. The person responsible for making payments for a policy is the policy owner, while the insured is the person whose death will trigger payment of the death benefit.
The owner and insured may not be the same person. For example, if Joe buys a policy on his own life, he is both the insured, but if Jane, his wife, buys a policy on Joe's life, she is the owner and he is the insured. The policy owner is the guarantor and he will be the person to pay for the policy; the insured is a participant in the contract, but not a party to it. The beneficiary receives policy proceeds upon the insured person's death; the owner designates the beneficiary. The owner can change the beneficiary. If a policy has an irrevocable beneficiary, any beneficiary changes, policy assignments, or cash value borrowing would require the agreement of the original beneficiary. In cases where the policy owner is not the insured, insurance companies have sought to limit policy purchases to those with an insurable interest in the CQV. For life insurance policies, close family members and business partners will be found to have an insurable interest; the insurable interest requirement demon