The document discusses the key concepts and principles of life insurance. It covers the nature of life insurance as a long-term contract that provides financial protection to beneficiaries in the event of death. It also discusses the various types of life insurance policies based on duration, premium payments, participation in profits, number of lives covered, and payment of claims. Finally, it outlines some important aspects like assignment and nomination procedures, surrender and loan values, age and death proofs, and payment of claims.

1. Life insurance

2. Nature of life insurancePeculiar nature – event bound to happenCovers death due to natural causes and accidentsIt’s a long term contractA 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 contractagreementCompetency (eligibility) of partiesFree consent of partiesLegal consideration -valid from 1st premiumLegal objective - support the family

4. Insurable interest (Pecuniary interest)

5. Utmost good faith (indisputable clause) Warranties Informative warrantyPromissory warrantyBreach of warranty

6. Proximate causeAssignment and nominationReturn of premiumAlaeatoryIndemnity/subrogation (N/A)

7. Aleatory Insurance contracts are aleatoryThere is no equal value exchangedEither 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 insuranceDuration of the policy paymentsMethod of premium paymentsParticipation in profitsNumber of lives coveredMethod of payment of claimUnit linked insurance

9. Classification of policiesDuration of policy - whole life policy - limited payment whole life policy - convertible whole life policy

10. contdOn the basis of Term Insurance policies - Temporary Assurance Policy - Renewable Term Policies - Convertible Term Policies

11. contdOn the basis of Endowment Policies -pure endowment policy - ordinary endowment - joint endowment - double endowment - fixed term (marriage) - educational annuity policy

12. contd - triple benefit policy - anticipated endowment - multi purpose policy - children’s deferred endowment assurance

13. On the basis of premium paymentSingle premiumLevel premium

14. On basis of participation of profits Participating policyNon participating policy

15. On the basis of number of persons insuredSingle life Multiple life

16. On methods of paymentLump sum policiesAnnuity policy - immediate annuity - deferred annuity - fixed and variable annuity

17. Money back policiesMoney back policySinking fund policy

18. (Contd)Unit linked policiesGroup insurance schemes

19. Actuaries A business professional who deals with financial impact of risk and uncertainty

20. Deals in financial security systems like, Asset management Liability management Analytical skills Business knowledge, etc.,

21. Types of actuariesLife , health and pension actuariesDeal in mortality risk, consumer choice, morbidity,…Products – deal with life insurance, annuities, pension, mortgage and credit insurance, long and short term disability, medical, dental and health care.

22. Casualty actuariesNon-life/general insurance act.

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. DutiesRender actuarial service to insurer.Product design and pricing/wording of contract investments and re-insurance.Ensuring the solvency of insurer firms.

26. contdTo comply with provisions of act to,Fix premium

27. Give interim bonusTo ensure policy holders responsible expectations been considered.To ensure premium charged are fair

28. Cover notes/BindersTemporary 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 ProcedureNoticePriorityAcknowledgementRecognitionConditional assignment

30. Surrender valueAmount the insurer decides to pay on surrendering the policyPaid up valueIf assured discontinues premium payment after 2 years