Licentiate Exam - IC 02 Practice of Life Insurance Exam - Important Points
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Material facts - It has been defined as a fact that would affect the judgment of an insurance underwriter in deciding whether to accept the risk and if so, the rate of premium and the terms and conditions
Material information is that information which enables the insurers to decide: Whether they will accept the risk? If so, at what rate of premium and subject to what terms and conditions?
Insurable interest refers to Financial interest of the person in the asset to be insured. It makes an insurance contract valid and enforceable under the law.
Insurable interest can be in Self (Own life), Spouses life, Childrens life, Assets owned
In Life insurance, insurable interest should be present at the time of taking the policy. In general insurance, insurable interest should be present both at the time of taking the policy and at the time of claim with some exceptions
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