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PRE CONTRACT EXAMINATION
o The law of large numbers.
o Life Insurance.
o General insurance.
o Peril.
o Risk – selection of lives / anti selection.
PRE CONTRACT EXAMINATION
Physical hazard
Moral hazard
Occupational hazard
Standard lives, Sub standard lives * impairment
Insurable Interest
Utmost good faith, ubrina fides
PRE CONTRACT EXAMINATION
Indemnity
Subrogation * to prevent making money out of insurance. Contribution * call upon the other insurer to share the lost proportionately.
Proximate cause
Subject matter of Insurance * motor insurance – car’s , motorcycles, etc,….. * marine – ship’s, cargo’s * personal life – lives, limbs, etc,….. * aviation – airplanes, lives, etc,….. * fire – buildings, goods, etc,…..
PRE CONTRACT EXAMINATION
Assignment - transfer of rights. * conditional. * absolute Assignor , Assignee.
Takaful . * the takaful act 1984. * concept of tabarru- means donation, gifts or contribution.
Centralization and Decentralization.
Insurance mediation Bureaus.
PRE CONTRACT EXAMINATION
Intermediaries * insurance agents * insurance brokers.
Underwriter
Loss adjuster * investigating the cause and circumstance.
Loss assessor * to assess the extent of damage or loss settlement.
PRE CONTRACT EXAMINATION
• Actuary
• Reinsurer
• PIAM
• LIAM
• ASM
• NAMLIFA
• MII
PRE CONTRACT EXAMINATION
Code of Ethics
Solvent
Insolvent
Common law , Equity law , Statutory law - Life insurance contract * intention to create legal relationship. * offer and acceptance. * consent- consensus ad idem. * consideration. * legal capacity to contract. * legality of the contract.
PRE CONTRACT EXAMINATION
o Material fact
o Disclosure
o Non disclosure
o Duty of disclosure
o Principle
PRE CONTRACT EXAMINATION Express Authority * given orally or in writing
Implied Authority * not expressed either orally or writing
Special agent, General agent , Universal agent
Mode of payment
Method of payment
PRE CONTRACT EXAMINATION
Grace period
Pre-existing
Exclusions
Co-insurance
Deductibles
PRE CONTRACT EXAMINATION Proposal E-forms
Policy document * evidence of a contract.
Endorsement
first life insurance policy- 1583 in England by William Gybbon.
Mortality
Morbidity
Mortality , expenses , rate of return and tax
Premature death, total permanent disability and old age.
PRE CONTRACT EXAMINATION Term insurance * convertible term. * renewable term. * guaranteed insurability option. * Level Term * Reducing Term * Increasing Term Whole Life
Endowment, anticipated end policy * pure endowment policy.
Annuities MRTA policy
Permanent Health Insurance * income during sick or disability on
long term notice.
PRE CONTRACT EXAMINATION
dread disease
Investment linked
home service.
Takaful
Joint life or last survivor
Group insurance
A master policy
PRE CONTRACT EXAMINATION
Privileges and conditions
Surrender value and cash value
Paid up value
Extended term assurance
Policy loans - 92% on the cash value.
Non – for forefeiture conditions * section 156 of the insurance ACT 1996 ( PG 324 ).
PRE CONTRACT EXAMINATION
• Automatic premium loan .
• Sold not bought.
• Suicide clause ( PG 326 ).
• Incontestability clause ( PG 326)
* section 147(4) of the Insurance ACT 1996.
PRE CONTRACT EXAMINATION
Age admission * proof of age section 146 on the infers act 1996
Duplicate policy
Alterations
Replacement of life insurance policies
Loading letter
Backdating
Method of payment
Mode of payment
PRE CONTRACT EXAMINATION
tax relief- (PG 340)
Initial expenses (PG 351)
Gross premium
Net premium
Bonus loading
Surplus
Interim bonus (PG 366)
PRE CONTRACT EXAMINATION
o Heading
o Preamble
o Operative clause
o Proviso
o Schedule
o Attestation
PRE CONTRACT EXAMINATION
Condition privileges
Death claim
Maturity claim
Proof of death
Proof of title and Ownership
Deed of assignment
Probate of the will
PRE CONTRACT EXAMINATION
letter of administration
effected under section 23 of the civil law ACT 1996 * proper claimant act
coroners inquest statutory presumption of death
cooling of period , free look period .
4% on claims after 60 days.
PRE CONTRACT EXAMINATION
Testate
Intestate
Settlement options
ALB, ANB , ANB * 16 years old to take up for traditional life * 18 years old for investment link.
Ethics and code of conduct.
PRE CONTRACT EXAMINATION
Twisting
Rebating
Inducing
Breach of utmost good faith
Caveat emptor(let the buyer be aware).
Risk Base Capital- Jan 2009
CEILI- INVESTMENT LINK
INVESTMENT CHOICES• Cash and Deposits.• Fixed Income Securities.• Shares.• Unit Trusts.• Investment Trusts.• Properties.• Derivatives.• Commodities.• Life Insurance.• Annuities.• Exchange Traded Funds.• Sukuk Bonds.• Real Estate Investment Trusts.• Capital Guaranteed Funds .
CEILI- INVESTMENT LINK
Diversification.
Switching.
Premium Holiday.
Top- Ups.
High Risk- High Return.
Low Risk- Low Return.
Bid Price.
Offer Price.
CEILI- INVESTMENT LINKTYPES OF CHARGES
Policy fee.
Annual fund management fee.
Bid- offer spread.
Reduction in allocation of units- Unallocated premiums.
Initial Units.
Mortality charges.
Surrender charges.
CEILI- INVESTMENT LINKINVESTMENT LINKED- FUNDS
o Cash funds
oEquity funds
oBond funds
oProperty funds
oSpecialized funds
oManaged funds
oBalanced funds
CEILI- INVESTMENT LINK
Single premium plans
Regular premium plans
Accumulation of units
Distribution of units
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