Licentiate Exam - IC 02 Practice of Life Insurance Exam - Important Points
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In life insurance the duty of disclosure operates until the risk commences, unless the conditions of the policy contract make relevant stipulations.
To take out a life insurance policy on someone else's life the proposer must have an insurable interest in that person, whereby they benefit from the safety and well-being of the subject matter of insurance and would be prejudiced by its loss or damage.
The proposal has two functions, it is a request for insurance and it is also an offer to enter into a contract.
In life insurance it is understood and explicitly stated in the policy that the proposal and its contents form the basis of the insurance contract.
The forms to be completed to assess the risk for life insurance include the proposal form, personal statement, agents report and medical reports (where applicable).
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