Sunday, July 25, 2010

Globe Life Insurance Offers $50,000 Life Insurance for $1

Seems almost unrealistic .. but check out this site and see it yourself.

Quite funny .. when I visited Globe Life web site, I found following text for this scheme in the bottom of their site with the most faint shade of gray.
It read as follows -

"*$1 pays for the first three months children’s coverage, except in FL and MI where $1 pays for the first month of children’s coverage. Then the rate is based on your child’s present age and is guaranteed to stay the same for the rest of their life. †Policy Form #GWLC/GWLP, GWL2000 or GWLA000 *$1 pays for the first month’s adult coverage. Then the rate schedule is based on your current age and is
guaranteed for the life of the policy. ††Policy Form #GRTG or SRTCV **A.M. Best Company rating as of 6/10. For the latest rating, access"

Full story: Globe Life Insurance Offers $50,000 Life Insurance for $1

Thursday, July 22, 2010

CSC Receives 'Positive' Ratings in Life Insurance Policy Administration MarketScope Report

CSC is one of 11 insurance software vendors whose 12 policy administration systems were evaluated by Gartner. No system received a higher rating than "Positive."
The fact that CSC signed five new policy administration systems deals in 2009 indicates insurers are looking to simplify their systems environment, speed and enhance support for new products and services, and improve customer service," said Michael W. Risley, president of CSC's Life Insurance and Annuity Division.

Read on:
CSC Receives 'Positive' Ratings in Life Insurance Policy Administration

Monday, July 19, 2010

IRDA proposes tougher norms for agents

Jul. 18, 2010 (The Hindu Business Line) -- Hyderabad, July 18

Life insurance agents may lose their licences if the annual persistency ratio of their clients' policies is less than 50 per cent.

In an exposure draft on persistency in life insurance policies announced on Saturday, the Insurance Regulatory and Development Authority proposed norms for enhancing the performance of agents.

It has proposed a minimum of 20 policies per agent a year and the first year premium income to be procured by an agent at Rs 1.5 lakh per annum.
If these two conditions were not met, the agent would have to achieve proportionately more in either one to make up for the shortfall in the other.
Spouses and close relatives of employees of insurers should not be engaged as agents.


Further, there should be a disincentive for lapse in the form of commission clawback by the insurer, on a proportionate basis, the draft said.

“These proposals would be a step forward in protecting the interests of policyholders, who stand to gain if persistency is high, both in terms of protection of life and profitability of the life insurance business,'' Mr A. Giridhar, Executive Director, IRDA, said.

Feedback on the proposals could be sent to the Authority on or before, July 31.
Persistency is the percentage of business retained without policy lapse or surrender.