Important Points for IC 26 - Life Insurance Finance Exam
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Under this method, as soon as a claim arises, the total amount payable less all deductions i.e. policy loan, interest on policy loan, due premiums etc. is treated as an outstanding claim.
In Loan Against Policy (LAP), policyholder can apply for loan against his insurance policy. The loan amount depends upon the surrender value of the life insurance policy.
When an insurance company provides loan to policyholder against his insurance policy, policy needs to be
The total of loans disbursed and collections are posted to general ledger control accounts.
Policy Loan ledger sheets must be prepared for every loan and would contain following details; the amount of loan disbursed interest due and paid and policy loan repayments.
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