Life Insurance Background Information M-Z
Married Women’s Property act 1882
Married Women’s Property act 1882 Life Insurance ; Married Women’s Property act 1882 Section 11 of the act enables a person to create a trust over a life insurance ...
Maturity claims
Maturity claims Life Insurance ; Maturity claims When an endowment policy matures there is a maturity claim which is usually initiated by the life office. The life office ...
Medical factors
Medical factors Life Insurance ; Medical factors If the proposal form indicates that a medical condition exists or may exist then the underwriter may require more information.
Mentally disordered people
Mentally disordered people Life Insurance ; Mentally disordered people Generally a contract with a person in unsound mind is binding on that person if the other person ...
Methods of dealing with under-average lives
Methods of dealing with under-average lives Life Insurance ; Methods of dealing with under-average lives Proposer’s accepted at ordinary rates are considered average ...
Money laundering regulations
Money laundering regulations Life Insurance ; Money laundering regulations The Money laundering Regulations where made under the proceeds of Crime Act 2002 and came into ...
Morbidity reinsurance
Morbidity reinsurance Life Insurance ; Morbidity reinsurance Morbidity risks can also be reinsured. The most common example is income protection insurance which can be ...
Mortgages
Mortgages Life Insurance ; Mortgages A mortgage is a type of assignment. Where a property is used as security for a loan, that property is assigned by the borrower to the ...
Natural premiums
Natural premiums Life Insurance ; Natural premiums Using the mortality rate the actuary can calculate the premium rate to be charged for any one age group for that year.
Need for reinsurance
Need for reinsurance Life Insurance ; Need for reinsurance The basic principal of reinsurance is to spread the risk further than just the life offices own life pool of ...
New business strain
New business strain Life Insurance ; New business strain New business strain is the affect of claims during the early years when the fund has not built up and especially ...
New firms and activities
New firms and activities Life Insurance ; New firms and activities Any new firm wishing to carry on a regulated activity must apply to the FSA using the correct application ...
Non statutory trust policies
Non statutory trust policies Life Insurance ; Non statutory trust policies A life policy can be written as a trust even though it is not under the act. These are then ...
Northern Ireland
Northern Ireland Life Insurance ; Northern Ireland The law reform (Husband and Wife) ( Northern Ireland) Act 1964 repealed section 11 of the Married Women’s property ...
Office of fair trading
Office of fair trading Life Insurance ; Office of fair trading The Fair Trading Act 1973 set up the office of Fair Trading (OFT) but is now comes under the Enterprise Act ...
OFT and Life Insurance
OFT and Life Insurance Life Insurance ; OFT and Life Insurance The OFT on occasion reports publicly on matters connected with the life insurance industry. An example was ...
Ordinary rates for limited types of life insurance policy for under-average lives
Ordinary rates for limited types of life insurance policy for under-average lives Life Insurance ; Ordinary rates for limited types of life insurance policy for under-average ...
Original terms insurance
Original terms insurance Life Insurance ; Original terms insurance Under this basis a proportion of the original business is accepted on the same terms and conditions as ...
Other unlawful acts
Other unlawful acts Life Insurance ; Other unlawful acts The general rule that a person should not benefit from their own criminal act also prevents a person who commits ...
Paid-up policies
Paid-up policies Life Insurance ; Paid-up policies If the policy holder can no longer afford to pay the premiums he may request that the policy be converted into a paid ...
Partnership share protection
Partnership share protection Life Insurance ; Partnership share protection Many firms are set up as partnerships. When one partner dies his part of the business passed ...
Policies of insurance act 1867
Policies of insurance act 1867 Life Insurance ; Policies of insurance act 1867 This act regulates the assignments of life insurance polices and states that a person who ...
Power of appointment trusts
Power of appointment trusts Life Insurance ; Power of appointment trusts Under this trust the trustee is given power to appoint or vary the beneficiaries. A typical wording ...
Premium collection
Premium collection Life Insurance ; Premium collection Unless the policy is a single premium contract, then a system will need to be set up to enable premiums to be collected ...
Presumption of death
Presumption of death Life Insurance ; Presumption of death Some times circumstances are such that a person might disappear and there is no body found. For example if it ...
Proof of age
Proof of age Life Insurance ; Proof of age Proof of age is required on all death claims and it is wise to state against any quote relating to the amount to be paid, that ...
Proof of title
Proof of title Life Insurance ; Proof of title Proof of title to the life policy will be required before the claim is paid. If payment is being made to trustees or the ...
Proposal procedure
Proposal procedure Life Insurance ; Proposal procedure First the proposal is checked to make certain all the questions have been answered and then against previous insurance ...
Pure endowments
Pure endowments Life Insurance ; Pure endowments A pure endowment is not a true life insurance policy as it provides no life insurance cover. The standard pure endowment ...
Pure protection contracts
Pure protection contracts Life Insurance ; Pure protection contracts Originally these did not fall under the FSA rules, but where brought into the rules ion the 14th January ...
Real time financial promotions
Real time financial promotions Life Insurance ; Real time financial promotions Authorised firms need to make certain, as far as they reasonably can, that persons who make ...
Reassignment
Reassignment Life Insurance ; Reassignment On repayment of the mortgage the mortgagor has the right to have the mortgage reassigned at his expense. Many banks have the ...
Records within COB
Records within COB Life Insurance ; Records within COB Period for keeping records under the COB rules (firms may well be advised to keep items for longer periods) are as ...
Regular premium unit linked whole life insurance
Regular premium unit linked whole life insurance Life Insurance ; These are now one of the most common types of regular premium whole life insurance policies. These policies ...
Reinstatement
Reinstatement Life Insurance ; Reinstatement Once the policy has lapsed the life office is off risk. There is a possibility that the policyholder may then contact the ...
Requirements of an assignment
Requirements of an assignment Life Insurance ; Requirements of an assignment In the case of Howes v Prudential it was agreed that assignment had to be in writing and that ...
Residential factors
Residential factors Life Insurance ; Residential factors In the past residential factors and climatic conditions were considered to have an impact of life expectancy, but ...
Responsibilities of regulated firms
Responsibilities of regulated firms Life Insurance ; Responsibilities of regulated firms Regulated firms have the responsibility, To make certain that they are authorised ...
Revenue act 1889
Revenue act 1889 Life Insurance ; Revenue act 1889 If the life insured dies domiciled abroad then anyone entitled to his estate as a general rules must obtain an English ...
Rights of a mortgagee
Rights of a mortgagee Life Insurance ; Rights of a mortgagee The objective of the mortgage is to give security to the lender. At any time after the date that the repayment ...
Rights of a mortgagor
Rights of a mortgagor Life Insurance ; Rights of a mortgagor The mortgagor retains the right of redemption and has the following rights. The right to repay of the loan ...
Rules for IFA’s only
Rules for IFA’s only Life Insurance ; Rules for IFA’s only Some rules apply only to IFA’s and these are listed below. Client money rules These apply to ...
Second hand polices
Second hand polices Life Insurance ; Second hand polices Endowment life insurance policies build up a surrender value and have a maturity date when payment will be made ...
Service risks
Service risks Life Insurance ; Service risks Members of the armed forces can bear an above average risk of accidental death but generally life offices do not set extra ...
Single life polices
Single life polices and joint life policies Life Insurance ; Single life polices These are the most common, where there is only one 'life insured' and on whose death the ...
Single premium unit linked whole life insurance
Single premium unit linked whole life insurance Life Insurance ; The policy holder pays a single premium which purchases units in the selected fund at the price of the ...
Special conditions
Special conditions Life Insurance ; Special conditions The life office may have felt obliged to apply special condition to the life policy either because of the risk involved ...
State benefits
State benefits Life Insurance ; Up to the Second World War the Government provided little in the way of state benefits. That changed after the Second World War with the ...
Suicide
Suicide Life Insurance ; Suicide Claims which might involve suicide should be looked at with greater care. Prior to the Suicide Act 1961, for a person of sound mind to ...
Surrenders
Surrenders Life Insurance ; Surrenders Whilst a surrender is not a claim, it must be treated in the same way when considering proof of legal title. Money is going to be ...
Term Insurance
Term Insurance Life Insurance ; Term insurance This is the most basic form of cover and provides for payment of the sum insured if the life insured dies during the period ...
The ABI Life Insurance Selling Code of Practice
The ABI Life Insurance Selling Code of Practice Life Insurance ; THE ABI LIFE INSURANCE (NON-INVESTMENT BUSINESS) SELLING CODE OF PRACTICE This Code of Practice covers ...
The assets recovery agency
The assets recovery agency Life Insurance ; The assets recovery agency The Proceeds of Crime Act set up the Assets Recovery Agency (APR) to confiscate the proceeds of ...
The FSA’s powers of intervention and control
The FSA’s powers of intervention and control Life Insurance ; The FSA’s powers of intervention and control The FSA has wide powers of intervention and control ...
The FSA’s principals for approved persons
The FSA’s principals for approved persons Life Insurance ; The FSA’s principals for approved persons The FSA has set out the following principals for approved ...
The FSA’s scope and powers
The FSA’s scope and powers Life Insurance ; The FSA’s scope and powers The FSA has the following scope and powers in relation to firms carrying on regulated ...
The legal principals surrounding life insurance
The legal principals surrounding life insurance Life Insurance ; The legal principals surrounding life insurance Before starting this section we would remind you of the ...
The objectives of the FSA
The objectives of the FSA Life Insurance ; The objectives of the FSA Under section 2 of the FSMA 2000 the FSA’s objectives are listed as follows, Market confidence ...
The unfair contract terms act
The unfair contract terms act Life Insurance ; The unfair contract terms act The EU unfair contract terms directive was established into UK law by the Unfair Terms in Consumer ...
Trustee Act 2000
Trustee Act 2000 Life Insurance ; Trustee Act 2000 Came into force on 1 st February 2001 and applies to England and Wales only. This act sets out some duties and powers ...
Trusts
Trusts Life Insurance ; Trusts The legal definition is “an equitable obligation binding the trustee to deal with property over which he has control (called the trust ...
Types of life insurance policy arrangements
Types of life insurance policy arrangements Life Insurance ; There are three basic types of arrangement. Term insurance Whole life assurance Endowment assurance Term life ...
Types of life insurance
Types of life insurance Life Insurance ; Here we look at the different basic types of life insurance that exist. The insurance market is always moving and there will always ...
Underwriting for early life insurance polices
Underwriting for early life insurance polices Life Insurance ; Ill health and hazardous occupations were soon recognised as factors which increased the risk of an earlier ...
Underwriting life insurance
Underwriting life insurance Life Insurance ; Underwriting life insurance This is the process of assessing the proposal and deciding whether to accept the risk and the terms ...
Underwriting of group life insurance
Underwriting of group life insurance Life Insurance ; As there is a group being insured underwriters can be more lenient than with an individual. To some extent they can ...
Unethical practices
Unethical practices Life Insurance ; Unethical practices There are a number of unethical practices which are considered unethical. Failure to disclose It is important that ...
Unit linked life insurance polices
Unit linked life insurance polices Life Insurance ; Unit linked life insurance polices These polices started to be introduced in the late 1950’s and gave policyholders ...
Units linked funds
Units linked funds Life Insurance ; Life offices commonly offer several fund types from which units can be purchased and the policy is linked to. Common examples are; Ordinary ...
Universal life insurance policies
Universal life insurance policies Life Insurance ; These are basically standard unit linked whole life policies with lots of bolt on extras. The idea is that policy holders ...
Whole life insurance policies
Whole life insurance policies Life Insurance ; Whole life insurance policies These are one of the simplest policies, since they pay out the sum insured when the life insured ...
Widows and orphans pension schemes
Widows and Orphans Pension Schemes Life Insurance ; As an alternative to a lump sum the employer may offer the benefits package where a pension may be paid to the widow/widower ...