IC 14 - Regulation of Insurance Business Exam Study Notes

The difference in NAV at the time of entry (offer price) and exit (bid price) is known as bid-offer spread
During the lock-in period, no residuary payments on policies which have lapsed / surrendered / discontinued can be made. The lock-in period is also applicable to top up premiums.
Top-up premiums allow the policyholders to increase their annual contribution while avoiding the initial allocation charges.
A life insurance company, after deducting the charges for life cover and others charges, invests the remaining amount of the premium in a fund chosen by the policyholder. The returns from the ULIP are dependent upon the performance of the fund.
The policyholder?s investment in the fund is denoted in the form of units and is represented by the value that it has attained, called Net Asset Value (NAV). The policy value at any time varies according to the value of the underlying assets at the time.

Licentiate Examination - IC 14 - Regulation of Insurance Business Exam - Important Points