A beneficiary is a person who stands eligible for receiving benefits or distributions from a trust, will or insurance policies. He/she is either specifically named in these documents or are most eligible as per the speculations. The eligibility is determined either by the documents or the legal norms which will define a legal heir. The
Brokerage or Commission is the incentive in terms of cash or other perks which an insurance agent earns for every sale or sales made in a particular period. The commission is received by a person acting on part of another person for rendering various services to make the transaction successful. Thus, there are three parties
Capacity Cost is known as the fixed expenditure faced by a company to expand its business reach and its potential to spread its operations. This does not change as the levels of production change and can only be slashed when the business is shut or is outsourced. These costs are usually fixed in nature and
Actual Cash Value refers to the monetary worth of a damaged or stolen property just before the loss took place. It is the amount equal to the replacement cost after depreciation is subtracted. Thus, it stands for the value at which the property can be resold and it is usually less than the amount required
The value used to measure the value of an insurance company is known as the appraisal value. It is also called the actuarial appraisal value. It is comprised of the following: Present value of current business which is also known as Embedded Value, Value of new business, present value of future business profits and finally
Bancassurance is a term which means selling of insurance products through banks. Various banks and insurance companies enter into a partnership and the banks then sells the company’s insurance products to its clients. It is a win-win situation for both the parties as the bank earns non-interest income in form of fee amount from the
An Actuary is a person who has expertise in the fields of economics, statistics and mathematics and helps in assessing risks and estimation of premiums for insurance firms. Advanced techniques, statistical and analytical skills are needed for evaluating risks and returns related to every proposal. They have a vital role in the operations and profitability
Actuarial Science is a discipline which assesses financial risks in both finance and insurance streams with the help of many mathematical principles of probability and statistical methods. The professionals who take up such tasks are known as actuaries. Actuaries are instrumental in helping gauge future uncertainties and financial risks along with providing solutions for the
Accidental death benefit or dismemberment is the extra benefit which is being given to the policyholder in case of his death due to an accident. The benefit of dismemberment is even paid in case of death of the insured person or the latter loses his limbs or his sight during the accident. Furthermore, in case