Licentiate Examination - IC 14 - Regulation of Insurance Business Exam - Important Points
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The IRDAI (Life Insurance - Reinsurance Regulations) 2000 require an insurer to file with the Authority, at least 45 days before the commencement of each financial year, a note on its underwriting policy indicating the classes of business, geographical scope, underwriting limits and profit objective.
A unit linked insurance plan (ULIP) is an insurance plan which is a combination of insurance protection and investment.
A ULIP can be an ideal investment vehicle for people who are looking for the triple benefits of: i. insurance protection; ii. Investment; and iii. Income tax benefits.
ULIPs or Unit linked insurance plans are market linked insurance plans. ULIPs come with the combined benefits of investment and protection. With regard to protection ULIPs are very similar to traditional insurance plans such as - endowment, money back and whole life insurance plans, but with a major difference - the investment risks in ULIPs are borne by the policyholder / investor and not by the insurance company.
Investment operations of ULIPs are very much similar to that of mutual funds. In fact ULIPs can be referred as mutual funds with insurance cover. As in mutual funds, in ULIPs too investors are allotted units, by the insurance company and a NAV is declared on a daily basis.
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