The paper 'International Diversity in Measuring the Fair Value of Life Insurance Contracts' is a good example of a Business Assignment. Life insurance1 (a) You ring Bess and book an appointment to see her. She wants to know if she has to bring anything along with her. Tell Bess which documents she needs to bring along with her, and explain why you would need each document. Bess needs to come with the following documents that will be necessary for identification, filling of the forms, and explaining her status. The documents will be as follows: -Valid identification documents.
She will be required to identify herself, marital status, nationality, and where she resides in the identification document. Therefore, for this purpose, the documents that will be required will include a driver's permit, a passport, and or an identity card. These will be submitted in copies. - Contact information. Bess will be needed to bring her contact information which will be used as a way to get in touch with her. The contact information required will include the place of residence, phone number or mobile phone number, and e-mail address, and a post office mail address.
Residential contact is important when an individual needs to be accessed at home and so and therefore it should give other details which include city or location. In the case where there is a form of joint ownership, the contact information document that will be provided must be signed by all owners. - A letter of the original contract. It is imperative that Bess provides her employment contract letter that is original. This will help prove her ability to cover the premiums and will establish her credibility as an employed individual.
This should come from the school where she teaches violin and any other place where she works. In the case of lost original contract form, she should provide a Declaration of Lost Policy form. This together with a Signed Statutory Declaration form should as witnessed by a commissioner of affidavits. Furthermore, there are other requirements that she will need to present and which will include a duly stamped Release of Assignment by Board of Revenue, and where necessary and applicable, Power of Attorney will be needed.
Additionally, she will be needed to fill other documents like Deed of Assignment and Declaration of Trust and finally issue her official documentation of the bank she uses, branch and account number. (b) As a follow up to your telephone conversation, draft an e-mail to Bess explaining what you intend to discuss in your first appointment. Hello Bess. Following our last telephone conversation, I felt it was of utmost importance to inform you beforehand some of the issues we will discuss when you come to the office.
We will discuss the type of life insurance that you will wish to take. It is imperative to underscore the fact that there are many forms of life insurance with different insurance policies. You will need to know the two broad categories of life insurance policies which will include term life insurance and permanent life insurance policies. In the latter, you will understand that it builds cash value and provides the insured with lifetime coverage through its policies. In addition, it provides certain important elements of savings lifelong protection.
The combination of both as you shall see will provide an investment fund as well as live coverage and payment on your death with a fixed and stated amount. On the other hand, we will also discuss term life insurance which has no investment component and only payable for a specific period of time if an insured dies. It is affordable for short time insurance needs, meeting life insurance needs which are temporary and diminishing and require short time protection such as child tuition and home mortgage. In our discussion and with a good knowledge of your financial and personal situation, you will be able to choose which life insurance suits you best. (c) At your first meeting with Bess, you are legally required to present her with a document.
Explain to Bess, in a language that she understands, what this document is and summarize the key points she needs to know. The document that will be provided to Bess will be an application form requesting for cover. She will be required to know which occupation class she falls into.
That can either be professional, white-collar, light manual, skilled or unskilled occupations. Additionally, she will need to give her health information; take the form to her employer to fill the employer section and in many cases, there is a beneficiary, it would be appropriate to attach details on a separate sheet of paper. (d) If, at a later stage, Bess wanted to complain about your advice, what are her options? What are you required to make known to her at your first meeting? In a situation where Bess would have complaints or a problem, it would be appropriate that she contacts the insurer whose contact address will be provided to her.
Additionally, she would come to the customer care department which will give her the best services she would need. However, it is important to make known to her a number of issues that might raise concerns. To begin with, it is important to let her know that she will need to wait after making an application for insurance cover until the application matures. The number of days or months for waiting may vary but after completing an application form and submitting it, it will be limited to 90 days.
Secondly, if she ceases employment, she will not continue having the insurance cover unless her premiums can be covered by her superannuation account balance. Furthermore, she will need to know how to claim benefits. Costs incurred in paying certain fees from non-attendance and procedures for blood tests during the completion of a claim form are not recoverable. Other areas she will need to be aware of are the waiting periods when claiming benefits and the roles of the insurer.
Finally, to avoid problems, set enough premiums to cover the month so it does not lapse, heck all statements your insurer will send you, and have correct details of the insurance company. 2 (a). What techniques and/or tools will you use to obtain relevant information needed from Bess before giving her advice? Some of the techniques that will be used to get needed information from Bess will include the use of questionnaires. She will be given forms with questions to fill and which will provide questions that will require detailed answers.
Also, an interview will be conducted and in this sense, she will be able to answer the interviewer’ s questions as directed both on phone and in the office. (b) During the fact-finding process, you feel that Bess is reluctant to give, or maybe withholding certain information. i) What would you say to Bess to overcome her fears? I would let Bess understand that as an insurance company, there is a policy on privacy and that whatever she will share with the company shall remain private.
The information received will not be sold but will be used to process her application, communicate with her, and keep track of her dealings with the company. ii) What are you legally required to say to Bess? She is supposed to know that the insurance company she is seeking services from has policies that make secure and confidential customers' personal and financial information through procedural, electronic and physical safeguards. Moreover, some of the private information about health will be collected at the applicant's consent. The customer reserves the right to sue the company if she feels her privacy has been violated.
(c) Complete an attached Financial Fact Finder for Bess, based on the existing data (see Appendix! )
ReferenceKlumpes, P., O'brien, C., & Reibel, A. (2009). International Diversity in Measuring the Fair Value of Life Insurance Contracts*. Geneva Papers on Risk & Insurance: Special Issue on Insurance Linked Securities, Asset and, 34(2), 197- 227. Retrieved June 6, 2011, from ABI/INFORM Global.