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