LLQP

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Author:
hunny.xx0
ID:
296321
Filename:
LLQP
Updated:
2015-02-19 14:33:32
Tags:
CHAPTER1
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Description:
Overview of the Canadian life insurance industry
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  1. Insurance contract
    An insurance contract is a contract that obliges the insurer to fulfil the terms of the the contract as long as premiums are paid
  2. Policy owner
    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.
  3. Policy premiums
    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.
  4. Claim
    When the beneficiary of a life policy or insured of an insurance policy seeks the benefit from the policy.
  5. Face amount
    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.
  6. Life insured
    The life insured is the person on whose health, gender, and age the premiums are based.
  7. Beneficiary
    This is the person or people to whom the proceeds of a life policy are paid when the insured dies.
  8. Disability Income Insurance
    It pays a monthly benefit to the insured who is sick or injured and unable to work.
  9. Health Insurance
    The broad term used to describe a number of policies that provide health coverage such as dental insurance or prescription drugs.
  10. Coverage
    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.
  11. 6 key players in the life insurance profession
    • 1. Agents
    • 2. Brokers
    • 3. Insurers
    • 4. Regulatory agencies
    • 5. Courts
    • 6. Governments
  12. Agency contract
    The contract between the agent and the insurer or insurers whose policies the agent will sell
  13. Agents
    Able to sell insurance to individuals, groups, businesses after signing an agency contract with the insurer.
  14. Broker
    • 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
  15. Insurance companies
    Insurance companies issue the insurance policies
  16. Fraternal Organizations
    Provide insurance to their members. used to be based on religion, profession etc. Now anyone can basically join who is interested
  17. Benefits consultants
    • 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
  18. 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
  19. Regulatory Bodies
    • 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)
  20. OSFI
    Federal agency established under the Financial Institutions and Deposit Insurance System Amendment Act to supervise all federally regulated financial institutions.

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