Important Points for IC 26 - Life Insurance Finance Exam
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Amounts appropriated towards premiums or deposits require reversal when those amounts are received by cheques and the cheques are subsequently dishonoured.
Insurance companies have to maintain two types of books: Statutory books and Subsidiary books.
For reconciliation, classification and posting to control accounts, the following primary books of accounts are used: Deposit Cash Book, Deposit Adjustment Book, Premium etc. Cash Book, Cash Paid Book.
In Unit Linked Policies, policyholder can pay premium via Cash, Local Cheques, Pay order or Draft Payable at per at the place where the premium is received.
Insurance Companies don't accept outstation cheques / outstation demand drafts in the case of ULIPs, because in unit linked policies, NAV is given of the same day if premium is collected before 3pm and if premium is collected after 3pm; then NAV is given of the next day.
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