In its Ninth Programme, the English Law Commission said it would set up this
joint project to examine at least two key areas of insurance contract
law: non-disclosure (which will necessarily include misrepresentation) and breach
of warranty. It said we would consult on whether there is a need to review other
areas such as the law on insurable interest and on joint policies. No decision has
yet been made as to whether other areas should be reviewed.
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The IASB issued IFRS 4 in March 2004 to provide interim guidance on
accounting for insurance contracts. The Standard is the result of the first
phase (phase I) of the IASB's project to develop an accounting standard
to address the many complex and conceptual problems in insurance
accounting. Before introduction of the Standard, IFRSs did not address
specific insurance issues, while certain IFRSs specifically excluded
insurance business. This resulted in diversity in the accounting practices
IFRS 4 is intended to cover all entities that issue insurance contracts, not only
insurance companies in the legal or regulatory sense. Further interpretation of the
Implementation Guidance, Basis for Conclusions and IFRS 4 are required for an
entity to apply the standard to its own facts, circumstances and individual
transactions. Also, some of the information in this publication is based on
interpretations of current literature, which may change as practice and
implementation guidance continue to develop.
The level of insurance risk may vary during the period of the insurance contract.
For example, in a pure endowment policy the insurance risk reduces as the value
of the investment increases. Also, in a deferred annuity contract there may be no
insurance risk during the savings phase but there is significant insurance risk
during the annuity phase.
In assessing the significance of insurance risk at the inception of the contract the
effect of discounting on the expected cash flows may be significant.
Another broad-based farm organization, the National Farmers Union (NFU), contends that crop
insurance remains inadequate for those with multi-year disasters, and that crop quality loss
discounts applied in insurance contracts do not reflect realities of the marketplace. The
organization also wants insurance companies to offer coverage in all areas and not “cherry pick”
regions that are most profitable, a concern that USDA attempted to address in the Standard
Reinsurance Agreement signed in 2010.
Because larger ﬁrms are much more likely to be covered by collective bargaining
contracts and works councils, a closely related issue concerns the independent role
of ﬁrm size in providing wage insurance. As ﬁrm size is typically viewed as a good
proxy for capital market access (e.g., Gertler and Gilchrist 1994), insurance contracts
should be particularly apparent for individuals working at larger employers.
The provisions for embedded derivatives in IAS 39 apply to derivatives embedded
in insurance contracts or financial instruments with discretionary participation
features, within the scope of IFRS 4. However, if the embedded derivative is itself
an insurance contract or a financial instrument with a discretionary participation
feature within the scope of IFRS 4, it need not be separated and measured in
terms of IAS 39.
Chapter 10 - Financial planning with life insurance. In this chapter, you will learn to: Define life insurance and determine your life insurance needs, distinguish between the types of life insurance companies and analyze various life insurance policies these companies issue, select important provisions in life insurance contracts and create a plan to buy life insurance, recognize how annuities provide financial security.
This version includes amendments resulting from IFRSs issued up to 17 January 2008. IFRS 4 Insurance Contracts was issued by the International Accounting Standards Board (IASB) in March 2004.
This version includes amendments resulting from IFRSs issued up to 17 January 2008. IAS 40 Investment Property was issued by the International Accounting Standards Committee in April 2000. In April 2001 the International Accounting Standards Board (IASB) resolved that all Standards and Interpretations issued under previous Constitutions continued to be applicable unless and until they were amended or withdrawn. In December 2003 the IASB issued a revised IAS 40.
In large-scale engineering projects, millions of dollars in potential losses hinge on the integrity of each and every constituent part. When a loss event arises from defective design, materials, or workmanship, the design clause determines what is covered and what is not. A clear definition of these clauses is obviously critical, yet the standard wordings found in the marketplace are often confusing and misleading. An analysis of the two industry standard wordings - the London Market Defect Exclusion (DE) and Munich Re wordings - goes a long way toward sorting out the confusion.......
The nature of annuities and their potential to be considered both insurance and in-
vestment products complicated attempts during this study to differentiate annuities
sold by insurance companies as insurance products from those annuities that qualify
solely as investment products that happened to be sold by insurance companies.
The SAR narratives reference annuities in the manner portrayed in Table 7.
Unbundling the deposit component of an insurance contract leads to the separate
recognition and measurement of the financial asset or financial liability arising under
the deposit component, and the insurance component of the contract.
If the deposit unbundling rules did not apply and the accounting policies of
the insurer or reinsurer did not require all assets and liabilities under the contract
to be recognised, liabilities might be incorrectly recognised as income and assets
As noted above, IFRS 4 does not require separation if the component itself meets
the definition of an insurance contract. In considering whether this exemption
applies, insurance risk is assessed in relation to the component. It may happen
that the contract as a whole does not fall within the scope of IFRS 4 because it
does not contain significant insurance risk, but that the component itself contains
significant insurance risk and, had it been a separate contract, would have fallen
within the definition of an insurance contract.
Managing Successful IT Outsourcing Relationships is a comprehensive guide on all the aspects of IT outsourcing, and is highly recommended for practitioners, researchers, policy makers and consultants alike. This book uses well-known theoretical perspectives and experiences learned from several business cases to develop models and guidelines for the complex IT outsourcing process and emerging relationships.
The ability of privately insured individuals to obtain faster access to care is significantly
influenced by governmental policies and approaches. Allowing public providers to treat both private and
public patients and to receive different remuneration levels for these separate activities can encourage their
involvement in the private sector. This spurs the development of a market for PHI products offering access
to more timely elective care in the private sector.
Demand expression varies by the kind of goods or services being
delivered. Water supply and latrines are an example of essentially
private goods, goods that are individually used and for which indi-
vidual users can express and realize a willingness to pay. Public
choices are more complicated with respect to public goods such as
schools or rural roads; a differentiated strategy for eliciting demand,
depending on the kind of subproject that is being produced, is needed.
The review will have three stages. First, with this paper we are consulting on the
scope of the project. Secondly, we will consult on the perceived problems within
that scope, and possible solutions. Thirdly, we will prepare a final report and, if
necessary, a draft Bill. We very much hope that all those with an interest in
insurance contract law will become actively involved in the consultation
processes, either individually or collectively through representative organisations.