1. Differentiate the following: Life insurance, Fire Insurance and Marine Insurance.

2. What does Life insurance cover?

3. Discuss fully the nature of business Insurance.

4. What happens when an insurance firm becomes insolvent? Explain.

5. What constitutes the assets of an insurance firm? Can a domestic insurance business
include foreign capital?

6. Discuss “Reinsurance” of an insurance business.

REINSURANCE is “a transaction whereby one insurance company (the 'reinsurer')
agrees to indemnify another insurance company (the 'reinsured', 'cedent' or 'primary' company or
ceding company) against all or part of the loss that the latter sustains under a policy or policies
that it has issued.”

7. Enumerate the different kinds of life insurance.

Life Insurance:
a. Individual Life (sec, 179-183, 227) - is a policy that is paid by one person and
covers a single person. ... This insurance is intended to meet the financial
needs of a surviving spouse or family members in the event of
the insured's death.
b. Group life (sec. 20) - is a type of life insurance in which a single contract
covers an entire group of people. Typically, the policy owner is an employer
or an entity such as a labor organization, and the policy covers the employees
or members of the group. ... Term insurance is the most common form
of group life insurance.
c. Industrial Life (sec. 229-231) - life insurance which is written upon individual
lives in small amounts and for which the premiums are collected weekly or
monthly by agents

8. Summarize the provisions of Industrial Life Insurance – Refer to sec. 230 and sec. 231
Every insurance company authorized to issue, deliver or use variable contracts shall
annually file with the Commissioner separate annual statement of its separate variable accounts.
Such statement shall be on a form prescribed or approved by the Commissioner and shall include
details as to all of the income, disbursements, assets and liability items of and associated with the
said separate variable accounts. Said statement shall be under oath of two (2) officers of the
company and shall be filed simultaneously with the annual statement required by the preceding
section.
 Within thirty (30) days after receipt of the annual statement approved by the
Commissioner, every insurance company doing business in the Philippines shall publish in a
newspaper of general circulation, a full synopsis of its annual financial statement showing fully
the conditions of its business, and setting forth its resources and liabilities in accordance with
such form prescribed by the Commissioner.

The Commissioner shall have the authority to make, amend, and rescind such accounting
rules and regulations as may be necessary to carry out the provisions of this Code, and define
accounting, technical and trade terms used in this Code: Provided, That such shall be in
accordance with internationally accepted accounting standards. 

9. Summarize the provisions of variable contracts – Refer to sec. 232, 233, 234, 235 to 240
Variable contracts are any policy or contract on either a group or individual basis issued
by an insurance company providing for benefits or other contractual payments or values
thereunder to vary so as to reflect investment results of any segregated portfolio of investment or
of a designated separate account in which amounts received in connection with such contracts
shall have been placed and accounted for separately and apart from other investments and
accounts. This contract may also provide benefits or values incidental thereto payable in fixed or
variable amounts, or both. It shall not be deemed to be a security or securities as defined in the
Securities Act, as amended, or in the Investment Company Act, as amended, nor subject to
regulations under said acts.

No insurance company authorized to transact business in the Philippines shall issue,

deliver, sell or use any variable contract in the Philippines, unless and until such company shall
have satisfied the Commissioner that its financial and general condition and its methods of
operations, including the issue and sale of variable contracts, are not and will not be hazardous to
the public or to its policy and contract owners. No foreign insurance company shall be authorized
to issue, deliver or sell any variable contract in the Philippines, unless it is likewise authorized to
do so by the laws of its domicile.

10. Explain the meaning of “Unfair Claim Settlement”

Unfair claims-settlement practices is defined through an enumeration of five acts
committed by the insurer in Section 247 of the Amended Insurance Code. These five acts are: 1)
knowingly misrepresenting to claimants pertinent facts or policy provisions relating to coverage
at issue; 2) failing to acknowledge with reasonable promptness pertinent communications with
respect to claims arising under its policies; 3) failing to adopt and implement reasonable
standards for the prompt investigation of claims arising under its policies; 4) not attempting in
good faith to effectuate prompt, fair and equitable settlement of claims submitted in which
liability has become reasonably clear (although the first sentence of Section 247 already states
refusal, without just cause, to pay or settle claims); or 5) compelling policyholders to institute
suits to recover amount due under its policies by offering without justifiable reason substantially
less than the amounts ultimately recovered in suits brought by them.

11. What are the checks on the accountability of an insurance company?

12. What are the circumstances when a domestic or foreign insurance maybe suspended r
its authority revoked. – Refer to Sec. 247

13. What is meant by Conservator in insurance?

14. Discuss freely the following:

1. Proceedings in insolvency
2. Consolidations or Mergers of Insurance Companies

15. What is an “incorporated mutual life insurance”?

16. What are the functions of Professional Reinsurers? Discuss

17. Discuss the role of “Holding Companies”

18. Explain the following:

a. Agents and brokers
b. Reinsurance brokers
c. Resident agents
d. Non-life company underwriters
e. Adjusters
f. Actuaries
g. Rate Organization and Rate Making
h. Security Fund
i. Liability insurance of motor vehicle
j. Mutual benefit associations
k. Trust and Charitable Uses

19. What constitute the administrative the adjudicatory powers of the insurance
commissioner? Summarize

20. Where do funds to govern insurance companies come from? Enumerate.