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Insurance
A loss-sharing arrangement whereby individual losses are shared by members of a
group facing similar risk exposures.
Features of insurance
1. An economic institution
2. Based on the principle of mutuality or co-operation
3. Formed for the purpose of establishing a common funds to pay for claims
4. Only certain risks can be insured against, whose occurrence can be confidently
estimated with certain degree of accuracy
Classes of insurance
1. Life insurance
2. General insurance
Life insurance
A contract which pays an agreed sum of money on the happening of contingency
(event), or of a variety of contingencies, dependent on human life.
General insurance
Any other forms of insurance business other than life insurance business.
Perils
A cause of loss.
Risk
An uncertainty regarding loss.
Probability
The chance of occurrence of a particular event.
Priori probability
The total numbers of possible events are known, ex: dice.
Empirical probability
The basis of historical data. The underlying concept is law of large numbers.
Judgmental probability
The judgement of the person predicting the outcome. Used when there is a lack of
historical data or credible statistics.
Loss
A reduction or disappearance of economic value.
Hazard
A condition that increase the chance of loss.
Physical hazard
A physical chance that increases the condition of loss. Ex: poor mechanical condition
of a motor car.
Moral hazard
A character defect in an individual that increases the chance of loss. Ex: dishonesty,
carelessness and unreasonableness.
Fundamental risks
Affects the entire economy or large number of persons/groups within the economy.
Ex: earthquake, flood and typhoon (forces of nature), damages arising out of war, risk
of mass unemployment.
Particular risks
Affects individuals and not the entire community or country. Ex: damage to property
from fire, risk of death, injury resulting from road accidents.
Pure risk
The possibility of either loss or no loss. Ex: damage to property resulting from fire,
risk of premature death.
Speculative risk
The possibility of profit, loss or no loss. Ex: investment in share market, venturing
into business, betting in a horse race.
Risk avoidance
Avoiding the property, person or activity that produces the risk.
Loss control
Aiming to reduce the total amount of loss (frequency and severity of losses).
Frequency of loss
The number of times a loss producing event will occur over a given period of time.
Severity of loss
The cost or amount of loss, in money terms, arising from a loss-producing event.
Loss prevention
Reducing the frequency of loss. Ex: use fire resistant to help prevent fire.
Loss minimisation
Reducing the severity or amount of loss. Ex: installation of fire sprinkler system helps
to reduce the amount of fire losses when a fire occurs.
Risk retention
The losses incurred are borne by the party retaining the risk such as individual or
organisation.
Risk transfer
The transferring of risks to an organisation or individual. Ex: Insurance contract, non-
insurance contract.
Risk management
A systematic approach to dealing with risks that threatens assets and earnings of a
business or enterprise.
1. Financial value
Compensation can be given following a loss that is capable of being financially
measured.
4. No catastrophic losses
A catastrophic loss results in a huge loss that is too heavy to be borne by an
insurer. Ex: war, earthquakes.
5. Fortuitous losses
A fortuitous loss is one that is accidental and unintentional.
6. Insurable interest
A person who wishes to effect insurance must have insurable interest in the
property, rights, interest, life, limb or potential liability to be insured.
8. Reasonable premium
Premium must be reasonable in relation to potential loss.
Chapter 3 THE BASIC PRINCIPLE OF INSURANCE & AN INTRO. TO TAKAFUL
Insurable interest
1. The legal right to insure arising from the legitimate financial interest which
an insured has in a subject matter of insurance.
2. For general insurance – must exist at the beginning and at the time of loss.
For life insurance – must exist at the beginning only – Subsection 152(1),
Insurance Act 1996.
3. Subsection 152(2), Insurance Act 1996 – provide that a person have insurable
interest to: i. his spouse, child or ward under the age of majority
ii. his employee
iii. A person on whom, wholly or partly, dependent
Assignment
The transfer of all rights and liabilities of the insured to a new insured.
Prior consent
Insured cannot assign his right in the policy to another unless prior consent from the
insurer has been obtained.
Novation
When an insurer gives consent to the substitution of the insured by a new insured, a
new contract is created between the insurer and the assignee of the original policy.
Caveat emptor
Let the buyer beware – in commercial contracts.
Material fact
Important / Relevant facts
Principle of indemnity
Restore the insured to the same financial position as he had enjoyed immediately
before the loss
Principle of subrogation
An insurer who has indemnified an insured for a loss may exercise the insured’s
rights to claim from the third party in respect of the loss.
Principle of contribution
An insurer who has indemnified an insured may call upon other insurers liable for the
same loss to contribute proportionately to the cost of the indemnity payment.
Takaful
Insurance based on a system of operation that is in accordance with Islamic religious
law.
Syariah
Islamic religious law.
Tabaruk
Means to donate (same as contribution/premium payment in commercial insurance).
Aqad (Agreement)
Agreement to deposit as donation a certain proportion of takaful contributions or
installment into a risk fund.
Syura
Mutual consultation and agreement, which are not based on decision by majority.
Takaful Act 1984
Passed by Parliament on November 15, 1984 and used to govern the operations of the
takaful companies.
Proprietary company
Owned by shareholders and profits earned belong to them.
Co-operative society
Owned by the policyholders and profits earned may be shared by policyholders in the
form of lower premium or policy bonus.
Insurance agent
Represent an insurance company in the performance of any functions covered by the
terms of the agency agreement. Agents are remunerated through payment of
commission by the insurer.
Insurance broker
Act on behalf of the insured and normally not tied to any one insurer. Brokers are
deemed to be experts in insurance and remunerated through payment of brokerage
that is usually a percentage of the premium.
Self-regulation
1. To instil discipline and promote healthy competition in the industry.
2. To provide some element of protection to insurance consumers.
Advantages: 1. Instil self-discipline among insurance companies.
2. Avoids the need to introduce legislation.
3. No bureaucratic back up will be required.
4. Respond to changing needs faster.
Disadvantages: 1. Do not have the power of law.
2. The statements of practice view consumers’ needs from
insurance companies’ own perspective.
3. The statements of practice are interpreted by the insurance
companies.
Purpose of regulation
1. To protect the policyholders’ interest and the general public.
2. Enforced through Insurance Act, 1963 by the Director General of Insurance.
Scope of regulation
1. Financial solvency of insurer
a. Registration of insurer
All insurers must be registered by the DGI before they can transact
insurance business.
b. Compulsory deposit
Cash deposit of not less than $300,000 with the Accountant General.
c. Maintenance of a Register of Policies
To maintain a register of all the insurance policies issued and keep the
register at an office in Malaysia.
d. Solvency margin
To maintain at all times a surplus of assets over liabilities:
- RM 5 million for life insurance business
- RM 5 million or 20% of net premium income, whichever is
greater, for general business
- RM 10 million or 20% of net premium income, whichever is
greater, for composite business
e. Approval and disqualification of managing director, directors etc.
Any person holding a key posts in an insurance company will require
prior approval from the DGI for appointment and disqualification.
f. Insurance fund and investment
i. Establish and maintain an insurance fund for each class of
insurance business.
ii. At least 80% of the investment should be in Malaysian assets and
not less than 25% in Federal Securities.
g. Submission of accounts and returns
Prepare and submit annually:
- A revenue account for each class of insurance business.
- A balance sheet.
h. Reinsurance
Required to make reinsurance arrangement consistent with sound
insurance principles.
i. Insurance Guarantee Scheme Fund (IGSF)
i. Established to meet the liabilities of any insolvent insurer.
ii. Financed through a levy imposed on all general insurers.
j. Power of the DGI
i. Inspect books and other documents.
ii. Investigate into the business.
iii. Issue directions regarding the conduct of business.
iv. Remove certain employees or directors.
v. Assume control over the business.
vi. Appoint a receiver or manager to mange the business.
vii. Present a petition to the court to wind up the business.
2. Fair trade practices
To protect consumer from unfair trade practices, the Act provides:
a. DGI has control over the proposals, policies and brochures
b. Any person induces another to enter into an insurance contract is guilty
of an offence and shall be liable to a fine not exceeding five thousand or
to imprisonment not exceeding one year or both.
c. The knowledge of an authorised agent is deemed to be knowledge of the
insurer.
3. Competence of brokers and loss adjusters
All insurance brokers and loss adjusters must be licensed by DGI. Furthermore,
all insurance brokers must be a member of Insurance Brokers Association of
Malaysia (IBAM).
Contract
· A legally binding agreement made between two or more parties
· All contracts are governed by the general principle of the law of contract as
specified in the Contracts Act, 1950
Counter offer
Insurer is not accepting a proposal on its original terms but may offer to provide
insurance on different terms.
Consensus ad idem
The meaning is of one mind.
Consideration
A benefit which one party gives to another or a burden which one undertakes for the
other.
Void contract
One which the law held to be no contract at all, a nullity from the beginning.
Voidable contract
Remain valid until the aggrieved party exercises the option to treat it void.
Unforceable contract
Contract which are unforceable are without being void are often referred to as
unforceable contracts.
Chapter 7 LAW OF AGENCY
Agent
A person who acts on behalf of another person.
Principal
The person whom an agent represents is called the principal.
Intermediaries
The middleman of the insurance market may be term as insurance agents or brokers.
Agency
The relationship which arises when the agent is engaged by the principal and the
agent is given power to affect the principal’s relationship with third parties.
Express authority
May be given to an agent orally or in writing.
Implied authority
Not expressed to the agent either orally or in writing.
Usual authority
When an agent carries on a particular trade on profession, his express and implied
authority carry with them a usual authority.
Ratification
When an agent performs an act, which is not within his actual authority, but later
becomes binding on the principal because the principal agrees to accept the act as
having been done on his behalf. It may be expressed or implied.
Special agent
Appointed to do a specific act or transaction.
General agent
One who does anything for his principal within the limits of general authority
conferred upon him.
Universal agent
One who has unlimited authority to do anything for his principal which the principal
himself was competent to do.
Duties of an agent
1. To render accounts to the principal as required.
2. No interest conflict with his principal.
3. Not to disclose confidential information.
4. Not to take any secret profit or bribe.
5. Not to delegate his duties to sub-agent without authority, expressed or
implied.
6. To comply with his principal’s instructions.
Rights of an agent
1. Reimbursement of money which he has expended with the express authority
of his principal.
2. To perform his duties in the manner which he considers to be appropriate.
3. May reject any attempt by his principal to control the manner in which he
works.
Termination of agency
1. Notice of revocation – by the principal to the agent.
2. Notice of renunciation – to the principal by the agent.
3. The completion of the transaction – where the authority was given for that
transaction only.
4. Expiration of the period stipulated in the contract of agency.
5. Mutual agreement.
6. Death, lunacy or bankruptcy of the principal or agent.
7. Operation of any law – which renders the contract of an agent illegal.
Marketing
The management process responsible for identifying, anticipating and satisfying
customer requirements profitably.
Selling techniques
1. Order processing
2. Creative selling
3. Missionary selling
Benefits of after sales services
1. The chance of lapse or business flowing elsewhere could be minimised.
2. The client’s new needs could be recognised and a sale quickly made.
3. The reputation of the insurer as a service-oriented organisation is enhanced.
Modes of payment
1. Banker’s order
2. Home service
3. Payroll deduction scheme
Premium notice
A notice sent to policyholder as a matter of courtesy to remind the policyholder, three
or four weeks prior to the due date.
Grace period
A provision that provides premium payment made usually within 30 days after the
due date. Benefits: a. no interest charges.
b. The policy is still enforceable.
Premium receipt
Official receipt for payment of premium, provides the policyholder with evidence of
the premium payment.
Insurable interest
The purchaser of a life insurance policy must stand to suffer a financial loss on the
death of the person on whose life insurance policy has been bought.
Ex: a. own life.
c. Spouse’s life.
d. Parent and life of children under the age of majority.
e. Creditor and life of a debtor.
f. Employer and lives of the key personnel.
g. Partner in business and life of other partners.
Insurable interest needs to exist only at the inception of the insurance.
Non-participating contracts
Mainly for protection purposes. The main benefit is generally guaranteed.
Participating contracts
Mainly for saving purposes. The benefit is generally made up of a guaranteed benefit,
regular bonuses and a final bonus.
Deferred annuity
When annuitant a specified age or survival until a defined period, annuity will be paid
until death
Reversionary annuity
Annuity commences at the death of the assured person to be paid
throughout the lifetime of the annuitant (nominee).
Annuity certain
The insurer returns the payment (purchase money), after a fixed term.
Group insurance
Insure lives in large groups at low rates of premium and often without medical
examination
It covers all or a certain class or classes of employees of a company
Group term life insurance is a yearly renewable term insurance
It may extend to cover employee’s spouse and eligible children
Requirements: -
Minimum number must be 10.
- Non -contributory
- Contributory
Eligibility: -
All full time employees between the ages of 16 and 55 and actively at work on the
effective date of the plan are eligible to join
Evidence of Insurability: -
If individual amount of insurance is less than the Free Cover Limit, no medical
underwriting is necessary
Amount of insurance: -
- Fixed amount for all
- Classified according to salary or occupation
Calculation of premium: -
- By age and sex
A master policy is issued to the employer. A certificate of insurance is issued to
each employee
“Experience Rating” is applied for large schemes of 2000 lives or more
Disability Benefits
Before attainment of age 60, the assured become disabled and unable to engage in
any occupation or perform any work for remuneration or profit, the insurer will
· waive all future premiums
· pay the sum assured together with any bonus attached
Sickness Benefits
· Hospitalisation Benefits
· Surgical And Nursing Fees Benefits
Children’s Insurance
a) PROTECTED EDUCATIONAL POLICIES
It provides for an education fund when child reaches the age of majority.
b) CHILDREN’S DEFERRED ASSURANCE
To start a permanent insurance program for a child at a low premium rate and to
ensure that the child will have some life insurance even if he or she later becomes
uninsurable
Contract
An intangible thing, a legally binding agreement between the concerned parties
Policy
The written document which embodies that agreement is in concrete form
Privileges
Adding to the benefits of the assurance
Conditions
Limiting the scope of assurance and explaining the nature of the contract
Privileges
1. Days of Grace
· Thirty days are allowed as days of grace
· Cover under the policy continue during the days of grace
2. Surrender Value
· Value which attaches to a policy of life insurance after premiums
have been paid for a certain minimum number of years.
· Section 43, Insurance Act, 1963 regulates the basis of surrender
values: i. Home service policy – six years
ii. Ordinary policy – three years
3. Policy loans
Granted up to 90 percent of the acquired cash value of a policy
4. Paid-up Policy
Cash value available is used as a single premium to provide for an insurance
on the original terms, but for a reduced sum assured
5. Non-forfeiture Conditions
i. Automatic Premium Loan
Each premium is paid automatically as it falls due after the grace
period, by the creation of a loan
ii. Paid-up Policy
Exchange the net amount of the cash value for a paid-up insurance of
the same type as the original policy for a reduced face amount
iii. Extended Term Assurance
Exchange the acquired cash value for a paid-up term insurance for
the full sum assured
6. Reinstatement Condition
Enables a person to apply for the reinstatement of the contract,
notwithstanding that he days of grace and the period of non-forfeiture have
both expired
Restrictive Conditions
1. Suicide Clause
If the insured commits suicide within a stated period of time (usually a year
to two years) from the date of inception or reinstatement of the policy, the
policy become void and the insurer is not liable to pay the claim, except to
refund all premium paid
2. Foreign Travel & Residence
Most policies do not impose any restriction on travel or foreign residence
3. Occupation and Dangerous Hobbies
Additional premiums may be charged for occupational or avocation risks
Policy transactions
1. Duplicate policy
· When a policy document is lost, a duplicate policy may be issued by
the life insurance company
· The duplicate policy would be stamped “Duplicate Policy”
2. Assignment of a life policy
The legal rights vested under a life insurance policy may be transferred
through: - i. Absolute – does not leave any right with the assignor
ii. Conditional – assignor can revoke the assignment
3. Reassignment
The assignee, having acquired the legal rights under the policy, is free to
reassign these rights to the original policyholder or to some other party
Policy alterations
The most common forms of alterations are: -
· Change of address
· Change of name
· Change in the mode of payment
· Change in the sum insured
· Change in beneficiary
· Change in the terms of insurance
· Policy altered to paid-up
· Change of class of policy
· Removal of extra premium when the life assured is no longer
exposed to an extra risk
Chapter 19 PRACTICE OF LIFE INSURANCE – NEW BUSINESS –
SELECTION OF LIVES AND OTHER ISSUES
Risk factors
1. Age
· A well-known fact that mortality increases with age
· Life insurance companies select the lives to be insured and lives who
have a slim chance of surviving even for a short period would be
definitely excluded
2. Sex
· Female mortality is lower than male mortality
· Lower life insurance premiums for females
· Female morbidity is higher than male morbidity
3. Occupation
Use broad categories of occupation to arrive at a loading to the normal
premium rates due to additional risk posed by different occupations
4. Social status
A person’s social status is largely determined by his/her income
5. Ethnicity
The race of an individual has an important bearing on mortality and
morbidity, which can be largely attributed to the cultural heritage as eating
habits and attitude towards other aspects of life
6. Geographical location
Those staying in urban areas usually have easy access to better medical
facilities, while those in rural areas may not be fortunate to have these
facilities readily available
7. Marital status
Statistic have shown that single males experience higher mortality than
married males
8. Personal habits & family history
· Personal habits such as smoking and consumption of alcohol have a
definite influence on mortality and morbidity
· Some forms of ailments are heredity, and to this extent the family
medical history is an important factor
9. Avocation
Motor racing and hang gliding are dangerous and those involved in such
sport can be expected to experience a higher than average mortality rate
10. Foreign residence
Residences in unhealthy areas or in areas prone to civil strife naturally have
the effect of increasing mortality and morbidity
Selection of lives to be insured
1. Financial underwriting – seeks to discover the presence of moral hazard
· The existence of insurable interest
· Whether the amount of insurance applied for is commensurable with
the financial standing
· Whether the insured maintains multiple insurance policies with other
insurers
· Whether other insurers have turned down the proposer’s application
for insurance coverage and the reasons
2. Medical underwriting – reveal sub-standard life for extra risk
· Charge an extra premium
· Charge a debt or a lien – reduce the amount payable in the event of
death
· Offer an alternative form of contract
· Decline or postpone coverage
3. Non-medical underwriting – protect the offices against any severe form of
anti-selection
· A non-medical proposal form which is carefully designed to elicit
information on personal and family history, weight, height and habits
· Insurers rely on the integrity, loyalty and good judgement of their agents
to ensure that the proposers for non-medical coverage disclose all
material information honestly
Commencement of risk
1. Proposal is submitted without the initial premium
· If the proposal is approved by the company, the proposer is requested to
make the necessary payment of premium within a certain number of days
(often 90 days)
· The insurer will be on risk immediately upon receipt of the first
installment premium after the issuance of the acceptance letter
2. Proposal is submitted together with the initial premium
· When a binding receipt is issued, the applicant is insured for accidental
death only and only for a short, stated period of time
· The insurance coverage begins immediately and remains in effect until
the insurer approves the application and issues a policy
Loading letter
A letter indicating there is an extra loading
Methods of payment
1. Banker’s order
2. Home service
3. Payroll deduction scheme
Premium receipt
Official receipt provides the policyholder with evidence of the premium payment
Policy register
An official record of policies issued by insurer
Section 9, Insurance Act 1963
Every insurer shall maintain an up-to-date register of all policies issued and none of
these policies shall be removed from this register as long as the insurer is still liable
for these policies
Investment returns
· Future investment returns are subjected to a whole host of factors, economic,
political and social
· If the insurer choose to ignore investment returns, the ensuing premium rates
would be higher than those if his competitors who takes into consideration the
rate of investment returns factor in their premium calculation
Categories of expenses
1. Initial expenses
· advertising costs
· first year commission
· medical examination expenses
· policy issue expenses
2. Renewal expenses
· renewal commissions
· expenses of collecting the premiums
· expenses of servicing the policy
3. Termination expenses
· claims payment expenses
· litigation expenses
Bonus loading
Additional premium is charged for enjoying the right to share in the profits of the
operations of life insurance company in the form of bonuses
Chapter 21 PRACTICE OF LIFE INSURANCE - MONITORING THE INSURANCE
FUND
Valuation of liabilities
The present value of the benefits payable
plus
the present value of expenses
less
The present value of the future premiums receivable
Valuation of assets
· Cash in hand and at the bank
· Investment in Government and Semi-Governemnt securities
· Shares in corporate bodies
· Loans and debentures in corporate bodies
· Properties, land and building
· Loans to policyholders
· Furniture, fittings, motorcars and other office equipment
Cost price
Price at which the assets was acquired
Book value
Value placed on the assets in the company’s account books, may appreciate or
depreciate
Market value
Value for which the assets can be sold in the open market
Surplus
The difference between the value placed on the assets and the value of the liabilities
and it will vary according to the bases chosen for these valuations
Sources of surplus
1. Interest – when market rates of interest are high
2. Mortality – difference between the actual mortality experienced by the office
and the mortality basis assumed in the valuation
3. Expenses – excess of the allowance made for expenses in the valuation over
the actual expenses incurred
4. Miscellaneous – surplus arises from sources such as surrenders, lapses, new
business and alterations
Distribution of surplus
1. Contingency reserves
2. Participating policyholders - bonuses
3. Shareholders - dividends
Chapter 22 PRACTICE OF LIFE INSURANCE – POLICY DOCUMENTS
Proposal form
Contains: 1. Personal particulars
2. Details of insurance
3. Occupation, residence, travel, and hazardous pursuits
4. Personal and family history
5. Declaration and authorisation
Medical reports
The examining doctor reports his findings besides recording the applicant’s answers
concerning medical history
Agent report
Furnishes the agent’s impression about the applicant’s habits, appearance, character
and financial status
The preamble
Introduces the parties to the contract and states that the proposer has submitted an
application for insurance
The proviso
A declaration that answers given in the proposal and medical report forms shall form
the basis of the contract
Attestation
The policy is singed by certain officers of the company authorised to do so
Notification of death
1. Policyholder’s name and identification card number
2. Policy number
3. Address
4. Date and cause of death
Proof of death
1. Death certificate
2. Coroner’s report
3. Statutory presumption of death
4. Certificate evidencing the death of service personnel and war death
5. Certificate showing that death has occurred at sea
6. Medical certificate by last medical attendant.
Maturity claims
Maturity amount is payable in the event the policyholder survives to the end of the
term of the contract
Proof of claims
1. When the policyholder is the life insured
· proof of age
· proof of survival
· discharge voucher completed by the policyholder
· the policy document
2. When the policyholder is not the life insured
· a deed of assignment or any other title document
· a simple statement that the insured is alive if he is unable or not
available to sign the survival certificate
Settlement options
1. Cash maturity proceeds
2. Convert the maturity proceeds into an annuity
3. Leave the maturity proceeds as a deposits
4. Draw the cash by installments
Chapter 24 SOME MATHEMATICS
Calculation of Age
Age is a key factor in calculation under taken in life insurance, and the 3 most common ways
of calculation is: - e.g. life born March 21,1965.
Premium charges for various policies are stated in the rate book and are only applicable for
standard lives.
Impaired or sub-standard live may be subjected to extra premiums and a detailed under
writing guideline required.
Annual Installment calculation for male and female, which will include discounted premium
rate and non discounted. 3 examples are available. (PLEASE REFER TO pg. 24/3-24/5).
If payment of premium is other than annualised, then further calculation is done before
arriving to the actual premium payable in whichever mode.
Lapsed policy can be reinstated providing good health by policyholder and full payment made
with accumulated interest.
Cash value policies often carry the right to a policy loan, and should a loan be granted for the
policy which a claim arising, then the policy pay out will less after deduction of loan amount,
should the loan not be settled prior to claim arise.
Statement of Philosophy
Life insurance business is based on risk sharing. Therefore, business must be
operated, administered and upheld to the: -
1. Highest degree of integrity and ethics.
2. Full responsibility and professionalism.
3. Honesty and safeguard.
4. Soundly managed.
5. Ability to assist and advice in the aim of promoting goodwill.
Coverage
Minimum standard- conduct set out with guidelines expected of all employees of
insurers.
Monitoring devices.
Guideline of management procedures: -
1. Signed declaration of employees.
2. Signed declaration of intermediaries.
3. Ensure compliance by heads of department.
4. Breach/fraud reported respectively and action taken.
5. Maintain centralised records of breaches.
Seven Principles
1. Avoid conflict of interest.
2. Avoid misuse of position.
3. Prevent misuse of information.
4. Ensure confidentiality of communication and transaction of p/holders.
5. Ensure fair and equitable treatment of p/holders.
Term Life insurance code of ethics & conduct covers all types of:
1. Home-service
2. ordinary Life insurance
3. Annuities
4. Pension contracts
5. Permanent Health Insurance.
The onus is placed on member companies of LIAM which is particular the audit/Disciplinary
committee and the correctional/punitive actions taken by them, should breaches been done.
Underwriting information: -
1. Ensure that information provided is true and to the best knowledge and
interest.
2. Highlight the consequences of non-disclosure and in accuracy.
Proposal form: -
1. Have all declaration disclosed and prominently displayed.
2. Have made known the consequences of non-disclosure and warn of doubt in facts of
disclosure.
3. Provide copy of policy condition upon request.