DBFI403 LIFE INSURANCE MANAGEMENT

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SESSION JULY-AUG’24
PROGRAM MASTER OF BUSINESS ADMINISTRATION (MBA)
SEMESTER IV
COURSE CODE & NAME DBFI403 LIFE INSURANCE MANAGEMENT
   
   

 

 

Assignment Set – 1

 

  1. Discuss the different risks in Insurance with examples for each type.

Ans 1.

Different Risks in Insurance

Insurance is designed to manage and mitigate risks. In the context of life insurance, various risks are associated with both policyholders and insurers. Below are the main types of risks in insurance with examples for each:

Mortality Risk

Mortality risk pertains

 

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  1. Describe what is settlement option in Life Insurance.

Ans 2.

Settlement Options in Life Insurance

Settlement options in life insurance refer to the methods through which beneficiaries can receive the death benefit or maturity proceeds of a life insurance policy. These options are designed to provide flexibility in receiving payouts based on the financial needs and preferences of the policyholder or beneficiaries. Below are the major settlement

 

 

  1. “The profits generated are distributed as bonuses to the eligible policy owners at the end of every financial year.” Explain the statement by mentioning the types of bonuses in Insurance.

Ans 3.

Bonuses in Insurance

The statement, “The profits generated are distributed as bonuses to the eligible policy owners at the end of every financial year,” refers to the practice of sharing surplus profits by insurance companies with policyholders of participating policies. These profits arise from efficient management, favorable mortality experience, and

 

 

Assignment Set – 2

 

 

  1. Write a short note on Life Insurance Claims and its three major types.

Ans 4.

Life Insurance Claims and Its Major Types

Life insurance claims refer to the process by which policyholders or their beneficiaries request the insurer to pay the benefits promised under the policy contract. The primary purpose of life insurance is to provide financial security,

 

  1. Explain the alternatives to traditional reinsurance options. (Known as non- traditional Reinsurance methods)

Ans 5.

Alternatives to Traditional Reinsurance Options

Reinsurance plays a vital role in the insurance industry, allowing insurers to transfer part of their risks to other entities to ensure financial stability and solvency. While traditional reinsurance methods, such as proportional

 

  1. What is Liability Insurance? Mention the types and explain in brief.

Ans 6.

Liability Insurance and Its Types

Liability insurance is a type of insurance that provides financial protection to individuals, businesses, and organizations against claims arising from legal liabilities. It covers the cost of legal defense and compensation for third-