ACTUARIAL MODULE

The system handles conventional, universal life and unit link life policies. There is full support for Term, Endowment, Pure Endowment and Whole Life covers. A policy has one and only one product but under a given product we can have any combination of covers;For example it is possible to have under one policy a Term cover, a Whole Life cover and an Endowment cover.

Value Generator

The actuarial calculations are triggered on specific events. The events are inside the LIRIS Programs but the calculation needed for the event is outside the LIRIS programs thus allowing to add new productsalong with their calculation formulae without changingthe core system since the calculation formulae are 'plugged-in' and not hard coded in the programs.

Reserves

The Commercial, Net, Expense loaded, Zillmerised and Investment premiums are calculated by cover using either user defined tables, standard calculation routinesor even customized routines.The Surrender Value at Last Anniversary, Last Anniversaryprofit sharing, Reserves before Alteration and Reservesafter Alteration and the Guaranteed Maturity Values arecalculated on-line when applicable.

Products and Covers

Covers validation rules like minimum age at entry, maximum sum insured, cover type, period of premium payment, etc. can be specified for every newly introducedcover. There are primary covers and secondary covers. Secondary covers can exist on their own on a policy (example:Accidental Death Benefit) and they can also exist as riders on primary covers (Premium restitution on a Pure Endowment).

A product will contain one or several covers and riders. Not all the covers of a product are mandatory (they may not all exist on a specific policy).

THE COMPANY

LIRIS

BML Istisharat was founded in 1972 . Its main activityis to develop and support application software gearedtowards Insurances, Banks, Manufacturing and Distribution firms.BML Istisharat products have penetrated ”Fortune 500”companies and are up and running in the United States,Western Europe, the Middle East and Africa.

The Life Insurance and Reinsurance Integrated System (LIRIS), was developed in cooperation with severallife insurance companies and was designed from the start to handle both traditional and unit link products. The firstinstallation dates from 1990.

LIRIS is a full enterprise system covering all company operations including:

Clients Administration Policy Administration Actuarial Commissions Premiums and Accounts ReceivableUnits Accounting (for unit link policies)

Claims Reinsurance General Ledger

Front OfficeBancassurance

Loans

UNDERWRITING

COMMISSIONS AND OVERRIDES

BANCASSURANCE

Age and range of sum insured can define medicalrequirements and insurability requirements. Using thetotal sum insured on a given life, the system willsuggest the appropriate medical examinations to befollowed, showing also the exams already performed.

Commissions rates are defined by source of business (commission agreement), product and cover. There maybe up to 9 intermediaries on a policy each having up to4 levels of overrides. The splitting of both the initial and renewal commissionis defined on the source of business level. The initial commission can be calculated by the value generatorwhere several parameters for a given intermediary orsource of business can be taken into account.The above system allows the full support of bank warm leads commission, where a source of business is defined for each bank deal. In the source of business, will be defined the commission percentages as well as the splitting rules between the bank and the intermediary (if any).

The initial commission and overrides can be paid and earned in several ways. As a matter of fact, the initial commission and overrides can be paid and earned by user-defined schedules.

The payment and earning of the initial commission overrides can

andalso be defined by type of intermediary.

Liris has being extended to operate in a Bancassurance environment.This resulted in a definition of the Front Office functions at Bank Branch level, the Bank Office functions and the exchange of data between the Banking & the Insurance system.The end result is that LIRIS can be integrated in a banking environment, in a way that the same bank employee can handle banking & insurance products on the same workstation.

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LIRIS Life Insurance and

Reinsurance Integrated System by BML Istisharat SAL

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The reinsurance is done by product/cover using the aggregate retention on a life insured. There can be a quotashare treaty followed by several surplus treaties or an automatic treaty. Facultative and Financing Reinsurance are also supported.There can be an unlimited number of reinsurers on a treaty. For each product/cover the following can be defined:

LIRIS supports different claims types: Death, Maturity, Critical Illness and Invalidity claims. The user can define as many claims nature as needed but each claim nature must have one and only one of the following types: Death, Accidental Death, Suicide, Maturity, Critical Illness (dread decease) or Invalidity Settlement of claims can be done by lump sum or annuities.

The first year commission rate The renewal commission rate The exception by insurance risk code The way the premium and ceded amount should be calculated

Reinsurance risk premiums can either be calculated by using formulae or tables and they are defined in the valuegenerator (described earlier).

CLAIMS

REINSURANCE

BusinessPartner

Partner NetworkCERTIFIED PARTNER

CIRIS : General Business Insurance ICBS : Retail and Corporate Banking IMAD : Manufacturing and Distribution

OTHER BML Istisharat PRODUCTS

CONTACT POINTS

INFOEL SA102, Avenue des Champs Elysées75008 PARIS (France)Contact : M. Jean Claude YazijiTel : 33-1-42895828Fax : 33-1-42895829E-Mail : infoel-sa@infoel-sa.com Website BML Istisharat SALRiad El Solh Street - A.Razzak BuildingP.O.Box 11-5191 BEIRUT(Lebanon)Contact : Ms. Pascale SalmehTel/Fax : 961-1-983208E-Mail : ist@istisharat.com

: www.infoel-sa.com

Website : www.istisharat.com

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