Reference no: EM133054463
Insurance company operation
1. In a context of insurance, what was it meant by Malaysian Policy as stated in Financial Services Act 2013.
2. A group of investors are discussing the formation of a new property and liability insurer. The proposed company would market a new homeowners policy that combines traditional homeowner coverages with unemployment benefits if the policyholder becomes involuntarily unemployed. Each investor would contribute at least $100,000 and would receive a proportionate interest in the company. In addition, the company would raise additional capital by selling ownership rights to other investors. Management wants to avoid the expense of hiring and training agents to sell the new policy and wants to sell the insurance directly to the public by selective advertising in personal finance
magazines.
a. Identify the type of insurance company that best fits the preceding description.
b. Identify the marketing system that management is considering adopting.
3. a. Define the meaning of underwriting.
b. Briefly explain the basic principles of underwriting.
c. Identify the major sources of information available to underwriters.
4. Jenny is contemplating taking comprehensive life insurance coverage for herself, but she is unsure whom she can approach to get the best advice. Explore the various insurance intermediaries that could help Jenny plan for the coverage that she wants.