Insurance suppliers incorporated under the Companies Act. This includes: 1. Proprietary companies, i.e. limited liability companies generally constituted under the Companies Act with a subscribed share capital. The shareholders have the ultimate rights to the profits, but in the case of a life insurance company provision has to be made for a share of the profits to go to ‘with profits’ policyholders. 2. Mutual companies. These are notionally owned by the policy holders who share in the distributable profits in proportion to the sums assured and conditions of their policies. Such companies have been common in life insurance but some have demutualised.
Tag: RAW
Insurance Companies (Legal Expenses Insurance) Regulations 1990
Provisions that state the insured person under a legal expenses policy has the right to choose his own solicitor. The regulations also deal with the conflict of interest that would arise if the legal expenses insurer acting for the claimant was also the liability insurer for the defendant sued by that claimant.
Insurance Company
An organization chartered to operate as an insurer. Any corporation primarily engaged in the business of furnishing insurance protection to the public.
***
Every Insurer seeking to carry out the business of insurance India is required to obtain a certificate of registration from the IRDA. (a) The applicant need to be a company registered under the provisions of the Indian Companies Act, 1956. Consequently any person intending to carry on insurance business in India would need to set up separate entity in India. (b) The aggregate equity participation of a foreign company (either by itself or through its subsidiary company or its nominees) in the applicant company cannot exceed twenty six percent of the paid up capital of the insurance company. (c) The applicant can carry on any one of the life insurance business, general insurance business or reinsurance business. Separate companies would be needed if the intent were to conduct more than one business. The name of the applicant needs to contain the words “insurance company” or “assurance company.” (d) A minimum paid up equity capital of rupees one billion in case of an applicant which seeks to carry on the business of life insurance or general insurance; two billion in case of a person carrying on exclusively the business of reinsurance. A promoter is not permitted to hold at any time more than 26 per cent of the paid up capital.
Insurance Comprehensive
A comprehensive Insurance Policy covers under a single insuring agreement all exposures within the general scope of the contract, except those specifically excluded.
Insurance contract
A legal document defining circumstances under which the insurer will pay, and the amount to be paid. Also see Insurance policy.
***
US: An insurance policy, cover note, certificate, or any other detailed evidence of coverage, including policy jackets, endorsements, audits, evidence of cancellation, and coverage parts.
***
Determines what insurance coverage is in place and determines the legal framework under which the content of an insurance policy is enforced.
***
Insurance is a contract by which one party in consideration of a price paid to him adequate to the risk becomes a security to the other that he shall not suffer loss, damage or prejudice by the happening of the perils, specified to certain things to which he may be exposed.”
Insurance Crime Prevention Bureau (I.C.P.B.)
An organization supported by property and casualty insurers that investigates fraudulent insurance claims and provides a deterrent to such losses. Loss prevention information is maintained by the Bureau for use by member insurers, independent claims adjusters, and government authorities across the country.
Insurance Density
Insurance density is defined as the ratio of premium underwritten in a given year, to the total population (measured in US Dollars for convenience). It thus represents premium per head of population.
Insurance department
A department charged administrating the laws that govern the insurance business. This also includes licensing, examining, and regulating insurance professionals. In the United States, this is a government bureau, or a division of another government bureau. In Canada, this is done by the federal government.
Insurance Desirable
Insurance that covers potential losses that would be financially serious but would not threaten the firm’s survival.
Insurance Directives
Three generations of both life and non-life directives The first directives paved the way for any insurer authorised in any Member State to set up a branch, agency or establishment in any other EC state, without restriction by the host, subject only to the host’s regulatory requirements, now largely harmonised. The second generation created free movement of insurance services within the EC by abolition of restrictions to sell across national boundaries. The third generation completed the move towards a single insurance market by abolishing the right of a host nation to insist upon authorising insurers established in other Member States. Authorisation in one state became a Single European Licence, allowing an insurer, without authorisation from any other state: (a) to establish elsewhere; and (b) to sell into other states from establishments outside those states. Post-authorisation regulation is carried out by the insurer’s home state to complete the twin aims of single licence and home country control. See FOURTH MOTOR INSURANCE DIRECTIVE.