2. Nature of life insurance Peculiar nature – event bound to happen Covers death due to natural causes and accidents It’s a long term contract A contract of assurance Can’t be indemnified (subrogation and contribution doesn’t apply) It is an a long term investment
3. Features and principles Nature of a general contract agreement Competency (eligibility) of parties Free consent of parties Legal consideration -valid from 1st premium Legal objective - support the family
7. Aleatory Insurance contracts are aleatory There is no equal value exchanged Either insurer collects premium and if there is no loss doesn’t pay back (or) The insured pays small premium and collects huge amounts as compensation.
8. Types of life insurance Duration of the policy payments Method of premium payments Participation in profits Number of lives covered Method of payment of claim Unit linked insurance
9. Classification of policies Duration of policy - whole life policy - limited payment whole life policy - convertible whole life policy
10. contd On the basis of Term Insurance policies - Temporary Assurance Policy - Renewable Term Policies - Convertible Term Policies
11. contd On the basis of Endowment Policies -pure endowment policy - ordinary endowment - joint endowment - double endowment - fixed term (marriage) - educational annuity policy
20. Deals in financial security systems like, Asset management Liability management Analytical skills Business knowledge, etc.,
21.
22.
23. Deal with catastrophic, unnatural risksProducts – auto, home owners, communal property, workers compensation, title insurance, malpractice, environment/marine, terrorism,..
24. Appointment: An insurer registered to carry on business in India shall appoint an actuary – APPOINTED ACTUARY for IRDA act. A resident of India Fellow member of actuarial society of India and possess certificate of practices issued by the society. Not above 70 years
25. Duties Render actuarial service to insurer. Product design and pricing/wording of contract investments and re-insurance. Ensuring the solvency of insurer firms.
26.
27. Give interim bonusTo ensure policy holders responsible expectations been considered. To ensure premium charged are fair
28. Cover notes/Binders Temporary document sent to the insured, till permanent certificate of policy issued In life insurance cover notes are not issued, but letter of acceptance is issued after the first premium received as binders.
29. Process of Assignment Procedure Notice Priority Acknowledgement Recognition Conditional assignment