Important Points for IC 83 - Group Insurance and Retirement Benefit Schemes Exam
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Miscellaneous charge is a charge levied for any alterations within the contract, such as, increase in sum assured, premium redirection, change in policy term etc. The charge is expressed as a flat amount.
Rider charge is the rider charge which is exclusive of expense loadings and levied separately to cover the cost of rider cover.
the mortality risk is that insurer expects say n deaths in the group but in actual the deaths are more than n.
An employees spouse and children can also be covered under the group life insurance scheme. This is often called dependent insurance and coverage levels are generally lower than for the employee.
The gross premium will be the total expected claim cost loaded for expenses, commissions, taxes, required risk and profit margin, and may include a discount for investment income on reserves or cash flow.
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