The document outlines the application process for a life insurance proposal, which includes submitting a proposal form with personal details, a personal statement of health history and habits, proof of age, medical and agent reports. The insurance company will decide within 15 days to accept or reject the proposal based on underwriting. If accepted, a first premium receipt is issued upon payment and the policy document is then issued, containing the terms and conditions of the insurance contract. Other documents include cover notes, endorsements, and prospectuses.

2. 1. Application in a proposal form
 Application in the prescribed
proposal form – which
contains all relevant information to
process the life insurance.
 True and fair information in the
proposal form – Any misstatement
will lead to make the contract
voidable – applicant must not
conceal any information.

3. 1. Application in a proposal form
 Name & Address of the proposer
 Name & Address of the insured, if
different
 Details of nomination
 Employment details
 Riders, SA, DoB
 Mode of premium payment

4. 2. Personal Statement
 A personal statement is also required
along with the proposal form.
 Details of health statement
 Personal habits
 Life History
 Medical consultations and illness

5. 3. Proof of Age
 A proof of age is also required
along with the proposal form.
 Copy of School Certificate
 Certified copy of an entry in the
birth register maintained by the
government

6. 4. Special Reports
Medical Report
a) Medical report is a confidential report.
Insurance is given to a person of sound
health and sound mind. Therefore,
insurers insist for a medical examination
of the proposer.
b)Proficient and qualified allopathic doctor
c)Past present health conditions are
examined
d)At the end of the report the examiner will
give his final opinion

7. 4. Special Reports
Agents Confidential Report – Agent is
the link between insured and the
insurance company
a)He can be remarked as the first
underwriter
b)ACR is the property of the insurer and it
is confidential
c)The agent must verify the correctness of
the details before the giving the report

8. 4. Special Reports
Moral Hazard Report – It is prepared by the
an officer of the insurer
a)It contains the details of moral hazards
associated with the insured
b)Moral hazard means the risk to the insurer
due to the dishonesty of the insured
c) MHR must be observed if it is suspected that
the proposer is likely to be dishonest or the
proposer intends to make profit out of the
policy.

9. 6. Acceptance of Proposal
After underwriting, the company makes a
decision to accept or reject the proposal.
IRDA Regulations- decision on the
proposal in 15 days from the proposal
Proposal is accepted if the conditions are
favourable to the insurer
Then an acceptance letter is sent to the
insured

10. 7. First Premium Receipt (FPR)
FPR is the evidence that the
contract has begun
It is issued by the insurer after
receiving the first premium from the
insured
This is the effective date on which
the liability of the insurer
commences.

11. 8. Issue of the Policy (Policy
Document)
On the payment of first premium,
the contract of insurance comes
into existence.
Most important document in the
insurance contract
Document is to be stamped in
accordance with the Indian Stamp
Act, 1899

12. 8. Issue of the Policy (Policy
Document)
Recital Clause/ Preamble – Opening
section- recites the parties to the
contract- proposal and declaration
signed by the party
Operative Clause – Circumstances in
which insurers agree to make
payment or its equivalent to the
insured (Mutual Obligations)

13. 8. Issue of the Policy (Policy
Document)
Attestation Clause – Signature of the
policy and its wordings
Conditions
Schedules
SA, Mode of premium payment,
riders, exclusions, special clauses

14. 9. Other Insurance Documents
a) Cover Note– Cover note is issued
in advance of the policy.
It is issued when the policy cannot
be issued straight away
When negotiation are in progress
Its necessary to provide cover on a
provisional basis

15. 9. Other Insurance Documents
b) Endorsements–
Policies are issued in a standard format
covering certain perils and excluding
certain others. If it is intended to
modify the terms and conditions of the
policy, its done by setting out the
alteration in a memorandum.
Its attached to the policy and forms part
of it. This memorandum is called
endorsements.

16. 9. Other Insurance Documents
b) Prospectus–
Brochure issued by the prospective
buyers of insurance
Scope of benefits, conditions,
warranties, bonus etc.
What are guaranteed / what are not
guaranteed.

18. As the name says, it is the closure or
writing off the policy before its maturity.