Policy Administration Flashcards
Does a life office have to agree to an alteration request?
No, unless the policy has the option
Is a fund switch regarded by HMRC as a significant variation?
No
Which form should be used to transfer legal title of a life policy?
A deed of assignment
What rights does a lender have if the borrower fails to meet their mortgage payments?
Repayment, power of sale, receiver and foreclosure
What is an assignees proof of title?
The policy and deed of assignment
What is the maximum loan that a life office will usually allow on a life policy?
90% of the policy’s surrender value
What is the priority of notice rule?
That the first person to give notice of the assignment to the life office has the priority of claim
What is the equity of redemption?
The right of the borrower to have the security reassigned to them on the repayment of the loan
What is the term used on a mortgage deed to describe the lender?
The mortgagee
What is the term used on a mortgage deed to describe the borrower?
The mortgagor
What types of alteration would require underwriting?
Those involving an increase of the sum insured or change of the life insured
What tax effect could an alteration to a qualifying life policy have?
Loss of qualifying status
What must a life office have in order to grant policy loans?
A licence under the consumer credit act 1974
(Modified by the consumer credit act 2006)
Under the consumer insurance ( disclosure and representations) act 2012 who is responsible for proving a misrepresentation is deliberate or reckless?
The insurer
An addition to a standard policy document is called a(n) ?
Endorsement
