An insurance contract is a contract that obliges the insurer to fulfil the terms of the the contract as long as premiums are paid
The policy owner applies for the policy and makes the premium payments. The policy owner is also called the insured. He or she may also be the life insured.
The premium is the periodic payment made by the policyholder or his/her legal representative that is required to keep an insurance policy in force.
When the beneficiary of a life policy or insured of an insurance policy seeks the benefit from the policy.
The basic amount of insurance payable on the event covered in the contract. This is the amount stated on the Face page of the policy.
The life insured is the person on whose health, gender, and age the premiums are based.
This is the person or people to whom the proceeds of a life policy are paid when the insured dies.
Disability Income Insurance
It pays a monthly benefit to the insured who is sick or injured and unable to work.
The broad term used to describe a number of policies that provide health coverage such as dental insurance or prescription drugs.
Coverage in an insurance contract is the face amount of a life insurance contract or the benefit received from a disability income insurance contract or the reimbursement amount of a health insurance contract.
6 key players in the life insurance profession
4. Regulatory agencies
The contract between the agent and the insurer or insurers whose policies the agent will sell
Able to sell insurance to individuals, groups, businesses after signing an agency contract with the insurer.
Able to sell insurance to individuals, groups, businesses without signing an agency contract with the insurer.
Provide consulting or advisory services for insurance/reinsurance.
Brokerage=A bunch of brokers banded together
Insurance companies issue the insurance policies
Provide insurance to their members. used to be based on religion, profession etc. Now anyone can basically join who is interested
Advise employers about the management of their group insurance.
GOAL is to fully understand their client's business objectives to enhance their investment in human resources
Employee Assistance Programs (EAP)
Provides by employee assistance firms; they work hand in hand with insurers
Not an insurance product; an employee benefit*
Provides consultation to employees and their families
Organizations such as the Canadian Life and health Insurance Association
Transform laws that are passed by the government and turn into rules for the industry to follow
There are 18 separate regulatory bodies in Canada (12 provincial/territorial, 5 provincial insurance councils, and federal government)
Federal agency established under the Financial Institutions and Deposit Insurance System Amendment Act to supervise all federally regulated financial institutions.