DLI02 Life Insurance Law

Transcription

1 DLI02 Life Insurance Law Module Description: This module examines and provides in depth treatment of the legal aspects of life insurance, including the basic principles of contract law; the incontestable clause; assignment; ownership rights; creditors rights; beneficiary designations and the disposition of proceeds; the law of agency and its application to the life insurance business; advertising and privacy issues; discussions of the procedural and emotional issues concerning death and dying; as well as the ethical issues facing today s insurers. Syllabus: Understand the history of life insurance law. Chapter 1 Historical Perspective Of Life Insurance Law 1. Pre War Period ( ) 2. Post War Period ( ) 3. Further Developments ( ) 4. Recent Developments ( ) 5. Recent Legislative Changes The Estate Duty (Abolition) Act 2008 The Civil Law (Amendment) Act 2009 The Insurance (Amendment) Act Amendments to the Definition of Singapore Policy Understand the sources of law and the legal system. Chapter 2 Sources Of Law And The Legal System 1. Sources of Law: Roman Law English Common Law English Equity Conflict and Fusion of Law & Equity Statute Law Case Law 2. The Legal System: The Courts 3. The Procedure Civil Procedure Criminal Procedure Understand the types of life policies By Statutory Insurance Fund, By Premium Type, By Ownership, By Product Type. Chapter 3 Types Of Life Policies 1. Definitions 2. Classification of Life Policies By Statutory Insurance Fund By Premium Type By Ownership By Product Type DLI02 Updated as at 11 May

2 List the elements for a formation of the life insurance contract. Chapter 4 Formation Of The Life Insurance Contract 1. Statutory Requirements Know Your Client Needs Analysis Documentation and Record Keeping 2. Offer and Acceptance Offer Acceptance 3. Payment of Premiums 4. Capacity to Contract Minors Mentally Disabled Persons Bankruptcy 5. Free Look Provisions Understand the concepts of insurable interest in life insurance and the amendments to insurable interest. Chapter 5 Insurable Interest In Life Insurance 1. Meaning and Necessity of Insurable Interest 2. Insurable Interest In Malaysia/Singapore Before 1963/ Statutory Provisions Regarding Insurable Interest In Life Assurance Enacted In 1963/66 4. The Present Position in Australia/Malaysia/Singapore Australia Malaysia Singapore 5. Amendments To Insurable Interest (2008) Insurance (Amendment) Act, 2009 Understand the difference between non disclosure and misrepresentation. Chapter 6 Non Disclosure And Misrepresentation 1. Difference between Non Disclosure and Misrepresentation 2. Non Disclosure Scope of Duty Statutory Provisions in Singapore/Malaysia (1963/66) Changes in Australian Provisions in 1984 The New Malaysian Provisions on Non Disclosure (after 1996) Present Singapore Statutory Provisions 3. Misrepresentation Nature of Misrepresentation Warranties and Misrepresentation Application of Misrepresentation Act New Australian provisions regarding Misrepresentation Australian provisions on remedies for Non disclosure and Misrepresentation 4. The Indisputability Clause or the Incontestability Clause and Misrepresentation United States Singapore Australia Malaysia DLI02 Updated as at 11 May

3 5. Case Law on Non Disclosure 6. Case Law on Misrepresentation 7. Insurer s Duty regarding Non Disclosure and Misrepresentation Understand relevant legal factors Estoppel/Waiver, Illegality and Life Insurance, Deliberate Acts Resulting in Death, Suicide, Money Laundering and the Financing of Terrorism. Chapter 7 Some Relevant Legal Factors 1. Estoppel/Waiver by the Insurer Introduction Connection Between Estoppel, Waiver and Mistake Agency and Waiver 2. Estoppel 3. Waiver Introduction Waiver and Statutory Provisions Unanswered Questions: Ambiguous, Incomplete or Irrelevant Answers Waiver of Breach of Condition Waiver of Future Performance of Condition 4. Illegality and Life Insurance Introduction 5. General Matters involving Illegality Insurable Interest Indisputability or Incontestability Clause Contracting Out Statutory Trusts 6. Deliberate Acts Resulting in Death 7. Suicide Policy Provisions on Suicide Other Problems of Construction Public Policy and Suicide Burden of Proof of Suicide 8. Money Laundering and the Financing of Terrorism Legislation FAA No.6 MAS 314 Legislative Provisions Understand the concepts of policy terms and conditions such as, applicable law, currency and place payable, contract clause, incontestability or indisputability clause. Chapter 8 Policy Terms And Conditions 2. Terms on the First Page 3. Applicable Law, Currency and Place Payable 4. Terms and Endorsements 5. Contract Clause 6. Incontestability or Indisputability Clause 7. Suicide Clause 8. Misstatement of Age/Sex DLI02 Updated as at 11 May

4 9. Free Look Provisions (Objections to Life Policy) 10. Grace Period/Non Forfeiture Provisions/Reinstatement 11. Surrender Value Clause/Paid Up Policy 12. Assignments 13. Interpretation of Policy Terms & Conditions General Rules The Contra Preferentum Rule Understand the concepts of assignments of life policies such as Policies of Assurance Act and Civil Law Act. Chapter 9 Assignments Of Life Policies 2. The Legal Position 3. Policies of Assurance Act 4. Civil Law Act 5. Equitable Assignments 6. Assignments by way of Gift 7. Assignments for Valuable Consideration 8. Priority of Assignments 9. Assignments by Operation of Law 10. Rights Available to Assignee 11. Assignment by Minors Understand the nature of a trust, types of trusts and statutory trusts of life policies. Chapter 10 Trusts And Trustees For Life Policies 2. Nature of a Trust 3. Types of Trusts Express Trust Implied or Resulting Trust Constructive Trusts 4. Statutory Trusts of Life Policies History and Scope 5. Under S.73 (CLPA) 6. Limited Interests: Vested and Immediate Contingent Interests 7. Beneficiaries under S.73 CLPA 8. Can Beneficiaries Be Substituted? 9. Explicit & Implicit Trust Policies 10. Estate Duty and Statutory Trusts 11. Applicability of S.73 CLPA to Muslims 12. Statutory Trust Policies in Matrimonial Matters 13. Reform of the Law on Statutory Trusts 14. Trust (Irrevocable Nominations) 15. Present Position of Statutory Trusts DLI02 Updated as at 11 May

5 Understand the concept of agency in life insurance. Chapter 11 Agency In Life Insurance 1. Historical Developments 2. Life Insurance Brokers 3. Some Statutory Provisions Affecting Life Agents 4. Agency Agreements and Documents 5. Authority of Life Agents and Ratification 6. Imputing Knowledge of Agent to Insurer 7. Reform of the Law on Imputed Knowledge 8. Legal Problems between Life Agents and their Company 9. Liability of Agents to Third Parties 10. Termination of Life Agents Understand the concepts of taxation and insurance income tax, assessable/chargeable income, as well as income tax relief from life insurance policies. Chapter 12 Taxation And Insurance 1. Income Tax 2. Assessable Income 3. Chargeable Income 4. Income Tax Relief from Life Insurance Policies 5. Tax on Annuity Income 6. Taxation on Life Insurance Companies 7. Life Insurance and Estate Duty Understand the concepts of life policies as property and payments legal remedies available, rights of beneficiaries, payment of policy moneys to non nominees. Chapter 13 Life Policies As Property And Payments 1. Chose in Action 2. Legal Remedies Available Declaratory Judgment Interpleader Proceedings Other Legal Proceedings 3. Rights of Beneficiaries Bare Nominees Statutory Nominees under the Insurance Act Revocable Statutory Nominees 4. Payment of Policy Moneys to Non Nominees Present Malaysian Position Present Singapore Position Understand the Financial Advisers Act and its application to Life Assurance. Chapter 14 Financial Advisers Act And Life Assurance 2. Life Companies (Exempt Financial Advisers) 3. Life Brokers (Licensed Financial Advisers) 4. Life Agents (Representatives of Financial Advisers) 5. Responsibilities and Obligations 6. Powers of the MAS DLI02 Updated as at 11 May

6 Issue of Written Directions (Notices) Making of Prohibition Orders 7. Offences under the FAA 8. Miscellaneous Reprimands Power of Court to Make Certain Orders 9. Regulations under the FAA Penalties and Procedure Introducing Activities General Importance of Regulations 10. Notices under the FAA 11. Guidelines Understand the Statement Of Life Insurance Practice (Singapore) such as the selfregulation for Singapore, legal position, provisions relating to proposal forms, provisions relating to claims. Chapter 15 Statement Of Life Insurance Practice (Singapore) 1. Background 2. Self Regulation for Singapore 3. Legal Position 4. Provisions Relating to Proposal Forms 5. Provisions Relating to Claims 6. Guidelines for Assessment of TPD Claims 7. Conclusion DLI02 Updated as at 11 May