保险学笔记

Speculative risk投机性风险--involves three possible outcomes:loss,gain,or no change. Stocks Pure risk纯粹风险--involves no possibility of gain;either a loss occurs or no loss occurs. An example is the possibility that you may become disabledThis possibility of financial loss without the possibility of gain----pure risk----is the only kind of risk that can be insured.Risk management--avoiding Risk most obvious one; controlling Risk--prevent and reduce risk; accepting Risk transferring RiskSelf-insurance is a risk management by which a person or business accept financial responsibility for losses associated with special risks.The most common way to transfer risk is to purchase insurance coverage.Policy保单is the written document that contains the term of the agreement between the insurance company and the owner of the policyPolicy benefit保单收益is a stated amount of money an insurance company agrees to pay under an insurance policy when a specific loss occurs.Premium保费is a specified amount of money an insurer charges in exchange for its promise to pay a policy benefit when specific loss occurs.Three type of Risk--Property damage risk /Liability risk /Personal riskPersonal risk--the risk of economic loss associated with death, poor health, and outliving one's savings.Characteristics of Insurable Risks--The loss must be occur by chance, definite, significant, predictable(the law of large numbers), not be catastrophic灾难性的to the insurer.A contract of indemnity(赔偿) is a insurance policy under which the amount of the policy benefit payable for a covered is based on the actual amount of financial loss that results from the loss,as determined at the time of loss.A valued contract specifies the amount of the benefit that will be payable when a covered loss occurs,regardless of the actual amount of the loss that was incurred.Applicant is the person or business that applies for an insurance policy.Insured is the person whose life or health is insured under the policy.When one person purchases insurance on the life of another person, the policy is known as athird-party policy.Beneficiary is the person or party the policyowner named to received the policy benefit. Insurable interest--when the policyowner is likely to benefit if the insured continues to live and is likely to suffer some loss or detriment if the insured dies,the owner of a life insurance policy has an insurable interest in the insured.Insurable interest可保利益laws don't require that the named beneficiary have an insurable interest in the policyowner-insured's life. In other words, the laws allow a policyowner-insured to name anyone as a beneficiary.For disability income insurance purposes, businesses have an insurable interest in the health of their key, employees.Antiselection(adverse selection)逆向选择-- those individuals who believe they have a greater than average likelihood of loss tend to seek insurance protection to a greater extent than do those who believe they have a average or a lee than average likelihood of loss.Moral hazard道德风险is the likelihood that a person may act dishonestly in the insuranceUnderwriting--the process of identifying and classifying the degree of risk represented by a proposed insured.Standard risk标准风险, substandard risk低于标准风险, declined risk拒受的保险风险, preferred risk. 优良风险You should be able to 1 Distinguish between speculative risk and pure risk. 2 List several ways to manage financial risk. 3 Identify the five characteristics of insurable risk. 4 Insurable interest 5 antiseletion2 Meeting Needs for Life InsuranceAPersonal needs met by life insurance and annuity products:1 Final expenses and Estate Planning 2Dependents' Support 3 Education Costs 4 Retirement Income 5 Other Personal Needs For Life InsuranceOnly 70% of the wealthiest American household have an estate plan, and, despite life insurance’s estate tax advantage,only 30% say that they have purchased life insurance specifically to pay for estate taxes.A policy beneficiary who receives policy death benefits is not required to pay income taxes on the policy proceeds.Government retirement income is often insufficient Life insurance policy guarantee that the policyowner will earn at least a specified interest rate on those funds. Life insurance policy provide income tax advantages.Donate the proceeds of the policy to a charitable organization,such as a church or a education institution.BBusiness Needs Met by Life Insurance ProductsBusiness continuation Insurance plan is a insurance plan designed to enable a business owner(or owners) to provide for the business's continued operation if the owner or a key person dies.A key person is any person or employee whose continued participation in the business is necessary to the success of the business and whose death would cause the business a significant financial loss.A closely held business is a sole proprietorship,a partnership, or a corporation that is owned by only a few individuals.Any closely held business may need to establish a business continuation insurance plan in order to ensure that the business will continue if an owner or key employee dies.Buy-Sell Agreement--an agreement in which one party agrees to purchase a second party's financial interest in a business following the second party's death.The employee purchases an insurance policy on the life of the sole proprietor. The employee owns the policy, and is the named beneficiary.Cross-purchase method--Each of the three partners bought two policies.the partners had to purchase a total of six individual life insurance policies.Entity method收购协议--the partnership(rather than the individual partners) agrees to purchase the share of any partner who dies, the partnership also agrees to distribute a proportionate share ofthat ownership interest to each of the surviving partners.The partnership purchase an insurance policy on the life of each of the partners, pays the premiums, and is the named beneficiary of each policy. If the partner dies, the partnership uses the life insurance policy proceeds to purchase the deceased partner's share in the business from the deceased's estate.Key Person Life Insurance--a insurance that a business purchase on the life of a key person.The business owns, pays the premiums on, and is the beneficiary of the insurance policy.CLife Insurance as an Employee BenefitThe most common way in which employers provide these employee benefits is by establishing group life and health insurance plans.Split -Dollar Life insurance Plans保费分摊寿险计划--an agreement under which a business provides individual life insurance policies for certain selected employees, who share in paying the cost of the policies.Those employees are generally owners, officers, executives, or other key employees.Deferred Compensation Plans递延补偿计划--A plan established by an employer to provide income benefits to an employee at a later date, such as after the employee's retirement, if the employee does not voluntarily terminate employment before that date.To fund a deferred compensation plan, the employee usually agrees to defer a portion of her salary. The employee agrees that at the time they retire, the policy's cash value will be used to fund an annuity, which will provide the employee with a retirement income. If the employees died, the annuity will provide income benefits to the employees' spouse and family.1 Identify the personal needs that life insurance can meet2 Identify the reasons that business purchase life insurance products.3 Recognize situation in which individual life insurance can be used to fund a business continuation plan3 The insurance PolicyFundamentals of Contract LawA contract is a legally enforceable agreement between two or more parties.The two parties to an individual life an health insurance contract are insurance companies that issued the policy and the individual who purchased the policy.Type of Contract--1 Formal contracts and informal contracts 2 Bilateral contracts and unilateral contracts3 Commutative contracts and aleatory contracts 4 Bargaining contracts and contracts of adhesion1 In theory, life and health insurance contracts, as informal contracts,could be made in either written or oral form. But in some countries, insurance contracts are required to express in written form..2 Life and health insurance policies are unilateral contracts. The insurance promise to provide coverage in return for a stated premium. The purchase of the policy does not promise to pay the premiums and cannot be compelled by law to pay the premiums.3 A conditional promise is a promise to perform a stated act if a specified,uncertain event occurs. Life and health insurance policies are aleatory contracts.4 Individual life and health insurance policies are contracts of adhesion. If any policy provision isambiguous,the courts usually interpret that provision in whatever manner would be most favorable to the policyowner or the beneficiary.Valid contract 有效合同--a contract that is enforceable at law.V oid contract 无效合同--a contract that was never enforceable at law.V oidable contract 可撤销合同--a contract in which a party has the right to avoid her obligations under the contract without incurring legal liability.Requirement for a valid informal contract:1 The parties to the contract must be manifest their mutual assent to the term of the contracts.2 The parties to the contract must have contractual capacity.3 The parties to the contract must exchange legally adequate consideration.4 The contract must be for a lawful purpose.Mutual assent 互相同意 is met when the parties reach a meeting of minds about the terms of their agreement.Contractual Capacity 履约能力the legal capacity to make a contract.The majority of people who have limited contractual capacity--minors 未成年人；lack mental capacityGenerally, contracts entered into by a minor are voildable by the minor. The insurance company have to return the premium the minor had paid on the policy.A person's lack of mental capacity may affect his contractual capacity in two situations. A court declares the person to be insane or mentally incompetent. The person's mental competent is impaired as a result of being drunk, drugged, or insane. A contract entered into by a person who has been declared insane or incompetent is usually void. Contract entered into by someone whose mental competence is impaired are generally voidable.Contractual Capacity of Organization--A company that is not licensed or authorized to do business as a insurance company does not have the legal capacity to make a insurance contract. The legal effect of such a contract depends on the laws of the particular jurisdiction.Legally Adequate Consideration 合理合法的定价each party must give or promise something that will be of value to the other party. The parties to the contract must exchange consideration. The consideration exchange must be legally adequate.The application and the initial premium are given by the policy owner as consideration for a life or health insurance contract. If the initial premium is not paid, then no contract has been formed because the applicant has not provided the required consideration. Renewal premiums are a condition for continuance of the policy and are not consideration for the policy. The application Type of Contract Applies to an Insurance Contract Formal Contract Informal Contract √Bilateral Contract Unilateral Contract √Commutative ContractAleatory Contract √Bargaining contractContract of Adlhesion √and the initial premium are given by the policyowner as consideration for a life or health insurance contract. This consideration is given in return for the insurer's promise to pay the benefit if the conditions stated in the policy occur.Lawful purpose--No contract can be made for a purpose that is illegal or against the public interest. The requirement of lawful purpose in the making of an individual life or health insurance contract is fulfilled by the presence of insurance interest.Insurance policies are a type of property. An insurance policy is a intangible personal property无形资产, it represents intangible legal rights that have value and can be enforced by the court. The owner of an insurance policy holds these ownership right in an insurance policy.The owner of a life insurance policy has a right to name the policy beneficiary, to change the beneficiary designation at any time while the policy is in force.Right to dispose of property处分财产权1 Distinguish the type of contracts2 Define valid,void,and voidable contracts3 Identify the four requirement for a contract4 Identify the property rights that a policyowner has in the insurance policy he ownsSection 2 Life insurance and annuities人寿保险和养老金Lecture 4 Pricing Life InsuranceMethods of funding life insuranceMutual benefit method摊付法--a method used in the post to fund life insurance in which the members of a mutual benefit society agreed to pay a equal, special amount of money after the death of any other member.Major Problems:1 Mutual benefit society often have problems collecting the money to pay the benefits. 2 As a society's membership declined, the society either had to reduce the amount of the death benefit paid or increase the amount each surviving member was required to pay for each death. 3 As the cost of membership in a society increased, attracting new members became more difficult for the society.Assessment method--a historical method of funding life insurance in which the participants in an insurance plan prepaid an equal portion of the estimated annual cost of the plan's death benefits.If actual costs were less than expected, then participants received refunds. If costs were more than expected,then participants paid an additional amount.Although prepayment of assessment solved the major collection problem that mutual benefit society had faced,collection of any additional assessments was still difficult.Not solve the problems caused by the aging of the group of insureds. Some organizations did charge somewhat higher assessments for older members.Legal Reserve System法定准备金制度--the modern system used to price life insurance evolved from these early funding methods. The amount of death benefit payable under a life insurance policy should be specified or calculable in advance of the insured's death. The money needed to pay death benefits should be collected in advance so that the insurer will have funds available to pay claims and expenses as they occurs. The premium an individuals pay for an insurance policy should be directly related to the amount of risk the insurance company assumes for that policy Premium Rate Calculations费率计算Actuary精算师Policy reserves保单准备金Policy dividends保单分红Premium 保费Rate of mortality 死亡率Investment earnings 投资收益率expenses 费用The premium rate is often expressed as the rate per thousand.Mortality table; Women lives longer than men, and the mortality rate of females at any given age is lower than that for man; Smokers and nonsmokers; sexual discrimination.The money that an insurance company earns from its investment of premium dollars. The longer a policy is in force, the greater the effect investment earnings will have on premium rate calculation. They invest premium dollars in many ways--in government and corporate bonds, mortgages, real estate, and corporate stock.Net premium净保费--the amount of money the insurer承包人needs in order to provide benefits for the policy. Loading附加保费--the total amount added to the net premium to cover all the insurer's cost of doing business. Gross premium总保费--the net premium with the loading added Level premium system--a life insurance pricing system that allows the purchaser of a policy to pay the same premium amount each year the policy is in force.Policies with Nonguatanteed Elements--Insurance companies primarily use two methods of changing the price of a policy after it has been issues.1 Policy dividends--A participating policy( par policy ) is one in which the policyowner shares in the insurance company's divisible surplus. A nonparticipating policy( nonpar policy ) is one in which the policyowner does not share in insurer's surplus. Policy dividend a policyowner's share of the divisible surplus.Generally, the premium rates for nonparticipating policies are lower than the premium rates for equivalent participating policies. Policy dividends are considered premium refunds, and, unlike dividends earned on shares of stock, they usually are not considered taxable income to the policy owner.2 Changes in pricing factorsLife Insurance Reserves寿险准备金--1 Policy Reserves represent the amount an insurer estimates it will need to pay policy benefits as they come due.Conservative mortality table稳健生命表--a mortality table that shows higher mortality rates than the insurer anticipates for a particular block of policies.Net amount at risk = face amount - policy reserveContingency Reserves应急储备金--reserves against unusually conditions that may occur.1 Three methods that organizations have used over the years to fund life insurance and distinguish among those methods.2 Three factors insurance companies use to calculate life insurance premiums under the legal reserve system3 Recognize the features of the level premium pricing system.4 Policy reserves and contingency reserves5 net amount at riskLecture 5 Term Life InsuranceCharacteristics of term Life Insurance productsTerm Life Insurance--provides a death benefit if the insured dies during a specified period. Policy term--all term life insurance products provide coverage for a specified period of time. Policy anniversary保单生效对应日-- the anniversary of the date on which coverage under the policy became effective.Term life insurance protection is usually provide by an insurance policy, but it can also be provided by a rider added to a policy.附加险Policy rider ( an endorsement批单) is an amendment to an insurance policy that becomes a part of the insurance contract that either expands or limited the benefits payable under the contract.Plans of term Life Insurance CoverageLevel term life insurance定额定期寿险保单--provide a death benefit that remains the same amount over the term of the policy 保额不变.Decreasing term--life insurance provides a death benefit that decreases in amount over the term of coverage.保额逐减Decreasing term insurance--(1)mortgage redemption insurance (2)credit life insurance, and(3)family income insurance.Mortgage redemption insurance抵押贷款偿还保险is a plan of decreasing term insurance designed to provide a death benefit amount that corresponds to the decreasing amount owed on a mortgage loan. Joint mortgage redemption insurance联合抵押贷款偿还保险provides the same benefit as a mortgage redemption policy except the joint policy insures the lives of two people. Credit life insurance信贷人寿保险is a type of term life insurance designed to pay the balance due on a loan if the borrow dies before the loan is repaid.Family income coverage家庭收入保单is a plan of decreasing term insurance that provides a stated monthly income benefit amount to the insured's surviving spouse if the insured dies during the term of the coverage. Family income policy--a whole life insurance policy that provides family income coverage.Increasing Term Insurance--provides a death benefit that starts at one amount and increase by some specified amount or percentage at stated intervals over the policy term.保额逐减上升The premium for increasing term insurance generally increases as the amount of coverage increases.One-third of new ordinary life policies sold in the U.S. In 1997 were term life insurance.Features of Term Life Insurance1 Renewable可续保term life insurance--include a renewal provision that gives the policyowner the right, within specified limits, to renew the insurance coverage at the end of specified term without submitting evidence of insurability.Evidence of insurability可保证明--proof that the insured person continues to be an insurable risk. Yearly renewable term insurance one year term life insurance that is renewable at the end of the policy term.In many cases, the renewable provision places some limit on the policyowner's right to renew. The coverage may be renew only until the insured attains a stated age./The coverage may be renewed only a stated maximum number of times.Why do the restrictions exist ?1 Antiselection 2 the premium for a renewable term life insurance is usually slightly higher than the premium for a comparable nonrenewable term life insurance.2 Convertible可转换term life insuranceConvertible term life insurance Policies contain a conversion privilege that allows the policyownerto change -convert- the term insurance policy to a permanent plan of insurance with out providing evidence that the Insured is an Insurable risk.The premium for the permanent coverage cannot be based on any increase in the insured mortality risk, except with regard to an increase in the insured's age. 到达年龄转换方式Prevent AntiselectionInsurers usually charge a higher premium rate for a convertible term life insurance.Insurers usually limit the conversion privilege in some way.Does not permit conversion after the insured has attained a specific age, such as 55 or 65.Or after the term policy has been in force for a specified time.Be limited to a amount that is only a percentage of the original face amount.1 Identify three different plans of term life insurance coverage and give an example of each.2 Renewable term life insurance and convertible term life insuranceLecture 6 Permanent Life Insurance and Endowment InsurancePermanent Life InsuranceCharacters 1 offer lifetime coverage 提供人生保障2 provide Insurance coverage and contain a savings element.储蓄因素Whole life insurance--provides lifetime insurance coverage at a level premium rate that does not increase as insured ages.Cash value--the savings element of a permanent life insurance policy, which represents the policyowner's ownership interest in the policy.Policy loan保单贷款--a loan that an insurer makes to the owner of a permanent life insurance policy and that is secured by the policy's cash value.Premium Payment Periods1 Continuous-premium policies--Premium are payable until the death of the insured.2 Limited-payment policies--a whole life policy for which premiums are payable only until some stated period expires or until the insured's death.Examplea 20-payment whole life insurance is a policy for which premiums are payable for 20 years.A paid-up-at-age-65 whole life insurance policy provides that premiums are payable until the insured reaches the policy the anniversary closest to or immediately following her 65th birthday. Paid-up policy缴清保单--a policy that requires no further premium payments but continues to provide coverage . Cash value--generally build more rapidly under limited payment policies than they do under continuous premium policies.3 Single-premium Policies--a type of limited-payment policy that requires only one premium payment.The shorter the premium payment period, the more quickly the reserve builds.Modified whole life insurance--Functions in the same manner as a traditional whole life policy except that the policy’s annual premium changes after a specified initial period, such as 5, 10, 15 or 20 years. The face amount of a modified-premium whole life policy remains level throughout the life of the policy.A modified coverage policy provides that the amount of insurance will decrease by specificpercentage or amount either when the insured reaches certain stated ages or at the end of stated periods.Joint Whole Life Insurance(夫妻间常见)1 has the same features and benefits as individual whole life insurance,except that it insures two lives under the same policy. 2 First-to-die life insurance Last survivor life insurance--a variation of joint whole life insurance under which the policy benefit is paid only after both people insured by the policy have died.Family Policies家庭组合保单--a whole life insurance that includes term life insurance coverage on the insured's spouse and children. The amount of term insurance coverage is generallyone-fourth or one-fifth of the amount of the insured's whole life insurance coverage.Monthlly Debit Ordinary 简易人生险--a whole life insurance policy that is marketing under the home service distribution system and is paid for by monthly premium payment.Pre-need Funeral Insurance丧葬费用险a Newer Generation of Permanent ProductsUniversal Life insurance 万能寿险--list choice of 3 pricing factors(mortality, interest, and expenses)Expenses1 a flat charge the first policy year to cover sales and policy issue costs2 a percentage of each annual premium to cover expense3 a monthly administration fee4 specific service for coverage changes, cash withdrawals, and policy surrenders.Effects of Regulation on Universal Life Products1 Insurance product or investment product2 tax treatment3 Policy's cash value and the face amount4 surrender chargesPeriodic reports定期报告--Sample annual report or a universal life insurance policy Indeterminate Premium Life Insurance 不确定保费的寿险保单Is a type of nonparticipating whole life insurance that specifies two premium rates-both a maximum guaranteed premium rate and a lower premium rate.Variable Life Insurance 投连险Separate account.Variable Universal Life Insurance变额万能寿险Endowment Insurance--provides a specified benefit amount whether the insured lives to the end of the term of coverage or dies during that term./Maturity date.1 Identify the features of whole life insurance, modified whole life insurance, and joint whole life insurance and recognize how these plans of insurance differ from one another.2 Identify the characteristics of Universal Life Insurance3 distinguish between universal, variable,and variable universal life insurance4describe the characteristics of endowment insuranceLecture 7 Supplementary BenefitsSupplementary Disability BenefitsWaiver of Premium for Disability BenefitsWhat is Total Disability?The insured's inability to perform the essential acts of her own occupation or any other occupation for which she is reasonably suited by education, training ,or experience.A juvenile insurance policy儿童保险单--a policy that is issued on the life of a child but is owned and paid for by an adult, usually the child’s parents or legal guardian.Disability Income Benefit--1 Provides a monthly income benefit to the policyowner-insured if she becomes totally disabled while the policy is in force. 2 The monthly income benefit is a stated amount.Accident Benefits最常见的附加险种意外险Accidental Death Benefit意外死亡双重赔偿保单If the insured dies as a result of an accident, the insurance company will pay the named beneficiary an amount of money in addition to the basic death benefit provided by the life insurance policy.Dismemberment Benefit 肢体残疾保险Accelerated Death Benefits提前支付寿险--Provide that a policyowner may elect to receive all or part of the policy's death benefit before the insured's death if certain condition are met.1 Terminal illness benefit终末疾病保险单a benefit under which the insurer pay a portion of the policy's death benefit to a policyowner if the insured suffers from a terminal illness and has a physician-certified life expectancy of 12 months or less.2 Dread Disease Benefit重大疾病保险单The insure agrees to pay a portion of the policy's face amount to a policyowner if the insured suffers from one of a number of specifieddiseases,including 1 life-threatening cancer 2 AIDS 3 end-stage renal failure 4 myocardial infarction(heart attack) 5 stroke 6 coronary bypass surgery3 Long-term care benefit长期医疗护理保险--is payable as a monthly benefit to a policyowner if the insured requires constant care a medical condition.Benefits for additional insureds1 Spouse and Children's insurance rider配偶及子女保险附加条款2 children's insurance rider3 second insured rider附加保险人条款Insurability benefits可保保险权益1 Guaranteed insurability benefit 2 paid-up additions option benefit增额交清选择权益Lecture 8 Policy Provisions保单条款、Standard Policy Provisions1 Free-look Provision 犹豫期可退保2 Entire contract Provision--Defines the documents that constitute the contract between the insurance company and the owner of the policy. The entire contract provision states that the entire contract consists of the policy, any attached riders, and the attached copy of the application for insurance.3 Incontestability Provision不可抗辩条款That describes the time limit within which the insurer has the right to avoid the contract on the ground of material misrepresentation in the application.。