The life insurance industry is one of the last examples of unrestricted capitalism in this country. Despite some regulation by various government agencies, life insurance remains a largely uncontrolled financial giant. It is the life insurance plan, how it works, that shields this industry. The Mortality Mortgage, the source of the Barnes Standard is an explanation of life insurance pricing, and a call for full financial disclosure through regulation of the industry. It is intended for financial consultants, tax attorneys, CPA's, life insurance agents, and other groups who advise consumers on financial matters. Insurance buyers supply this industry with millions of dollars in premiums each year. Consumers deserve a truth in lending law and an appraisal process for this financial service. Life insurance is not a product, it is financing. Four factors denote financial quality: price or principal, rate, term and closing costs. Consumers understand these financial elements for homes and bonds, but they do not equate the fundamentals of financial quality with life insurance. The life insurance industry, through marketing and advertising, has taught the public to focus on premiums, death benefits, and cash values; financial elements are ignored. The Mortality Mortgage compares and contrasts three financial models: the home mortgage, the bond or debt security, and life insurance. Additionally, it provides the formulas necessary for appraisal of a life insurance plan. With an appraisal, a comparison of insurance policies is possible. Once pricing is understood, consumers will demand full financial disclosure through regulation of the life insurance industry.
The death of Professor Arthur Wright in the summer of 1996 deprived me of a friend and a colleague whose judgement and experience shaped this book. I pay tribute to his contributions to protection and electrical engineering education. In the five years since the first edition appeared, many developments have taken place and it is now necessary to update the book. The use of digital communications and advanced signal processing techniques is now widespread and several fully numeric relays are available from manu- facturers. Two new Chapters 13 and 14 have been added to introduce readers to these concepts and associated techniques. Artificial intelligence is making its impact in all engineering applications and power system protection is no exception. Expert systems, fuzzy logic, artificial neural networks, adaptive and integrated protection, synchronized measurements using the global positioning system, genetic algorithms, flexible a.c. transmission systems, are some of the techniques considered in connection with protection. Although many of these techniques have not yet found major application in protection, it is nevertheless essential for the educated protection engineer to have a basic understanding of the underlying principles and methodology so that he, or she, can evaluate their suitability for new relaying problems and applications. Chapter 15 was therefore added to guide readers through this developing area. I have also added some new material in other chapters to reflect changes over the past years.