MICROINSURANCE SERVICES (MUTUAL BENEFIT) NC II – TESDA COURSE MODULE

TESDA TRAINING REGULATIONS FOR MICROINSURANCE SERVICES (MUTUAL BENEFIT) NC II

The TESDA Course in MICROINSURANCE SERVICES (MUTUAL BENEFIT) NC II consists of competencies that a person must achieve to perform the effectively within a microinsurance institution. These competencies are required to individuals who are engaged in processing insurance application, remittances and claims of microinsurance clientele.

This Qualification is packaged from the competency map of the Social and Other Community Development Services Sector.

A student who has achieved this TESDA Course in MICROINSURANCE SERVICES (MUTUAL BENEFIT) NC II is competent to be:

• Insurance processors
• Insurance Policy Processing Clerks

TRAINEE ENTRY REQUIREMENTS

Trainees or students wishing to enroll in these course qualifications should possess the following requirements:

• Must have completed the ten (10) years of basic education or Alternative Learning System (ALS) Certificate of Completion with Grade equivalent
• Must possess good communication skills

MICROINSURANCE SERVICES (MUTUAL BENEFIT) NC II – TRAINING AND REGULATION MODULE

Course Title: MICROINSURANCE SERVICES (MUTUAL BENEFIT)
Level: NC II
Nominal Training Duration : 223 Hours

(Basic Competency) 37 Hours
(Common Competency) 20 Hours
(Core Competency) 200 Hours

Total Duration: 457 Hours
Supervised Industry Training (SIT) – 200 Hours

This course is designed to enhance the knowledge, skills and attitudes of MICROINSURANCE SERVICES (MUTUAL BENEFIT) NC II in accordance with industry standards. This covers competencies that a person must achieve in performing the duties and responsibilities of insurance processors and insurance policy clerks efficiently render the coverage of microinsurance policies.

COMPETENCIES REQUIRED IN MICROINSURANCE SERVICES (MUTUAL BENEFIT) NC II

This units of competency comprising this qualification include Basic, Common, and Core Competencies.

To obtain this TESDA course in MICROINSURANCE SERVICES (MUTUAL BENEFIT) NC II, all units prescribed for this qualification must be achieved.

These units of competency comprising this qualification include the following:

UNIT CODE	CORE COMPETENCIES (200 Hours)
SOC332301	Promote microinsurance products and services
SOC332302	Process membership enrollment
SOC332303	Monitor insurance policy status
UNIT CODE	COMMON COMPETENCIES (20 Hours)
SOC941201	Provide quality customer service
SOC941202	Comply with quality and ethical standards
SOC941203	Perform computer operation
UNIT CODE	BASIC COMPETENCIES (37 Hours)
400311210	Participate in workplace communication
400311211	Work in a team environment
400311212	Solve/address general workplace problems
400311213	Develop career and life decisions
400311214	Contribute to workplace innovation
400311215	Present relevant information
400311216	Practice occupational safety and health policies and procedures
400311217	Exercise efficient and effective sustainable practices in the workplace
400311218	Practice entrepreneurial skills in the workplace

These units of competency are categorized into basic, common and core competencies.

CORE COMPETENCIES

This section gives the details of the contents of the core units of competency required in MICROINSURANCE SERVICES (MUTUAL BENEFIT) NC II.

UNIT OF COMPETENCY : PROMOTE MICROINSURANCE PRODUCT AND SERVICES
UNIT CODE : SOC332301

This unit covers the knowledge, skills and attitudes required in the promotion and marketing of microinsurance products and services.

1. Introduce microinsurance concepts, principles, and legal framework
   • Concepts and principles of Microinsurance are explained based on current industry standards
   • Legal Framework of Microinsurance are introduced based on the insurance code and regulatory circulars and issuances
   • Rights and obligations of policy holders are explained in line with existing Microinsurance consumer protection framework
   • Microinsurance’s standards, policies and procedures are explained to prospective clients in simple and methodical manner
2. Conduct orientation and briefings on microinsurance products and services
   • Marketing/promotional kits are made ready within budget and timelines
   • Orientation/briefing materials are prepared based within budget and timelines
   • Features of microinsurance products and services are presented based on the client’s needs
   • Benefits and requirements of microinsurance products and other services are explained based on the client’s needs
3. Gather data and feedback on evaluation of microinsurance products and services
   • Data and feedback forms are made ready based on the expected number of respondents
   • Data gathering and feedbacking are conducted within company budget and timeline
   • Data indicating key market information are collated and tabulated based on company systems and procedures
   • Product and service evaluation results are submitted to immediate supervisor based on timelines

UNIT OF COMPETENCY : PROCESS MEMBERSHIP ENROLLMENT
UNIT CODE : SOC332302

This unit covers the knowledge, skills and attitudes required in the preparation and issuance of microinsurance policy.

1. Gather and verify application forms
   • Application forms of qualified members are gathered for verification based on eligibility criteria
   • Application are verified and checked for personal data completion
   • Applications are verified and checked for the list of identified qualified dependents and beneficiaries
   • Application forms are checked for completeness of signatures, information, and supporting documents.
2. Evaluate eligibility
   • Application forms are evaluated for accuracy and correctness of information
   • Information in the application form are matched with the supporting documents
   • Application form and supporting documents are checked if in line with the eligibility requirement
   • First payment of contribution is checked as per final step for membership acceptance
   • Approved application data are encoded to the system
3. Verify records of qualified applicants
   • Check members records for multiple availment and delinquency
   • Explain to client reasons for cancellation of Microinsurance application, auto renewal of existing Microinsurance coverage or extension of Microinsurance coverage
   • Create member records based on Microinsurance application
4. Prepare insurance policy certificate and receiving copy for distribution
   • Screened and approved Insurance policy certificate and receiving copy are generated and printed based on eligibility criteria
   • Authorized signatures in the insurance policy certificate and receiving copy are secured based on eligibility criteria
   • Insurance policy certificate range number and other particulars are recorded in the underwriting logbook based on eligibility criteria
   • Insurance Policy Certificate and receiving copy are ensured to be delivered and signed based on eligibility criteria
   • Insurance Policy Certificate and receiving copy documents are ensured to be delivered to and received by appropriate personnel in accordance with eligibility criteria
   • Distribute Microinsurance Policy certificate copies to designated offices or policy holder
   • Signature of each designated offices representative is secured in the Microinsurance policy monitoring log

UNIT OF COMPETENCY : MONITOR INSURANCE POLICY STATUS
UNIT CODE : SOC332303

This unit covers the knowledge, skills and attitudes required in updating member’s records (payment of contributions and personal information), updating policy status (active and inactive), and cancellation of the policy.

1. Update existing members records
   • Existing member’s records are gathered and checked based on updated supporting documents
   • Changes in existing member’s records are encoded in the system based on eligibility criteria
   • Updated forms are filed with existing member’s records based on eligibility criteria
2. Prepare notice of lapses, retirement, and cancellation
   • Member’s policy status is generated and printed based on systems and procedures
   • Printed policy status is endorsed to appropriate personnel based on systems and procedures
   • Notice of lapses and cancellation are prepared and forwarded to appropriate personnel based on systems and procedures
3. Process remittance and payments
   • Members remittance are encoded based on summary of contribution report
   • Member’s record of remittance is checked for accuracy based on general ledger
   • Microinsurance remittance reports are generated and printed based on systems and procedure
4. Process claims
   • Notice of claims is received and verified based on systems and procedures
   • Claims forms’ validity and authenticity are checked based on supporting documents and existing member’s records
   • Field validation is conducted based on Insurance Commission requirements
   • Approval for recommended actions are secured based on the results of field validation
   • Payment of benefits are disbursed based on Microinsurance policy coverage
   • Microinsurance coverage and other services are turned over to claimant based on systems and procedures
5. Prepare underwriting reports
   • Microinsurance data from the system are generated based on Insurance Commission and management reportorial requirements
   • Generated data are organized into underwriting reports based on Insurance Commission and management reportorial requirements
   • Microinsurance underwriting reports are endorsed to management based on systems and procedures
   • Approved and signed Microinsurance underwriting reports are filed based on systems and procedures

COMMON COMPETENCIES

UNIT OF COMPETENCY : PROVIDE QUALITY CUSTOMER SERVICE
UNIT CODE : SOC941201

This unit covers the knowledge, skill and attitudes required to provide effective and efficient services to the clients of the microfinance industry.

1. Update knowledge of products and services
   • Products and/or services to be marketed are identified, familiarized with and fully understood
   • Information on programs is accessed
   • Knowledge on products, services and programs are updated
   • Additional information on products, services and programs are prepared
2. Assess needs of new and existing clients
   • Active listening is used to gather information from clients
   • Orientation on products/services, program and policies are conducted
   • Identified related or applicable needs of clients based on the products/services and program being offered
   • Provided clients with courteous and professional treatment throughout the interaction using interactive communication
   • Inquiries, concerns and comments are responded to promptly and accurately in accordance with organization’s policies
   • Recorded all the gathered information given by the clients
3. Conduct client satisfaction survey
   • Client satisfaction survey is administered
   • Survey results are collated and analyzed
   • Positive and negative results are defined
   • Negative feedbacks are well addressed immediately through appropriate communication strategies

UNIT OF COMPETENCY : COMPLY WITH QUALITY AND ETHICAL STANDARDS
UNIT CODE : SOC941202

This unit covers the knowledge, skills and attitudes needed to apply quality and ethical standards in the workplace. The unit also includes the application of relevant safety procedures and regulations, organization procedures, client and industry requirements.

1. Assess quality of received materials
   • Work instruction is obtained and carried out in accordance with standard operating procedures
   • Received materials are checked against workplace standards and specifications
   • Defective materials are identified, reported and isolated
   • Defective materials are repaired/replaced in accordance with workplace procedures
   • Defects and any identified causes are recorded and/or reported to the concerned personnel in accordance with workplace procedures
2. Assess own work/output
   • Documentation relative to quality within the company is identified and used
   • Completed work is checked against workplace standards
   • Defects are identified and corrected in accordance with the company quality standards
3. Submit oneself to third party assessment
   • Information on the quality and other indicators of performance are recorded in accordance with workplace procedures
   • In cases of deviations from specific quality standards, causes are documented and reported in accordance with the workplace’s standards operating procedures
   • In cases of objections/disagreements, reasons are expressed thru written documentation
   • Settlements are sought in accordance with company policies
4. Engage in quality improvement
   • Process improvement procedures are participated in relative to workplace assignment
   • Work is carried out in accordance with process improvement procedures
   • Services are delivered in accordance with ethical standards
   • Quality service is monitored to ensure client satisfaction
   • Client’s needs are assessed through conduct of researches, focus group discussions, and satisfaction surveys/interviews
   • Trainings, orientations, and exposures are rendered to ensure their understanding/familiarization on products, services and programs

UNIT OF COMPETENCY: PERFORM COMPUTER OPERATIONS
UNIT CODE : SOC941203

This unit covers the knowledge, skills and attitudes needed to perform computer operations which include encoding, accessing, decoding, transferring and storing data and information using the appropriate hardware and software.

1. Plan and prepare for assigned task
   • Tasks are determined according to required output
   • Appropriate hardware and software are selected
   • OHS standards are complied with
   • Appropriate guidelines and procedures are identified
   • Required data security guidelines are determined
2. Encode data
   • Accuracy of data/information is validated
   • Data are encoded using appropriate application
   • Information is saved in storage devices according to requirements
   • Work is performed within OHS guidelines
3. Access information
   • Appropriate application is selected based on job requirements
   • Proper use of navigation keys and icons is observed
   • Proper use of computer and other peripherals is observed
4. Produce data
   • Processed data using appropriate applications by authorized personnel
   • Data are printed according to standard operating procedures
   • Data are analyzed
   • Files and data are transferred according to standard operating procedures
   • Files and data are securely stored
5. Use the internet to access information
   • Required information is identified
   • Appropriate browser and search engine are used in accordance with the organization’s standards and procedures
   • Relevant links are utilized to access information
6. Maintain computer equipment and systems
   • Procedures for system security such as virus check, data back-up, and system defragmentation are implemented
   • Appropriate basic equipment maintenance procedures and MIS requirements are implemented

BASIC COMPETENCIES

UNIT OF COMPETENCY : PARTICIPATE IN WORKPLACE COMMUNICATION
UNIT CODE : 400311210

This unit covers the knowledge, skills and attitudes required to gather, interpret and convey information in response to workplace requirements.

1. Obtain and convey workplace information
   • Specific and relevant information is accessed from appropriate sources
   • Effective questioning , active listening and speaking skills are used to gather and convey information
   • Appropriate medium is used to transfer information and ideas
   • Appropriate non- verbal communication is used
   • Appropriate lines of communication with supervisors and colleagues are identified and followed
   • Defined workplace procedures for the location and storage of information are used
   • Personal interaction is carried out clearly and concisely
2. Perform duties following workplace instructions
   • Written notices and instructions are read and interpreted in accordance with organizational guidelines
   • Routine written instruction are followed based on established procedures
   • Feedback is given to workplace supervisor based instructions/ information received
   • Workplace interactions are conducted in a courteous manner
   • Where necessary, clarifications about routine workplace procedures and matters concerning conditions of employment are sought and asked from appropriate sources
   • Meetings outcomes are interpreted and implemented
3. Complete relevant work related documents
   • Range of forms relating to conditions of employment are completed accurately and legibly
   • Workplace data is recorded on standard workplace forms and documents
   • Basic mathematical processes are used for routine calculations
   • Errors in recording information on forms/ documents are identified and properly acted upon
   • Reporting requirements to supervisor are completed according to organizational guidelines

UNIT OF COMPETENCY: WORK IN TEAM ENVIRONMENT
UNIT CODE : 400311211

This unit covers the skills, knowledge and attitudes to identify role and responsibility as a member of a team.

1. Describe team role and scope
   • The role and objective of the team is identified from available sources of information
   • Team parameters, reporting relationships and responsibilities are identified from team discussions and appropriate external sources
2. Identify own role and responsibility within team
   • Individual role and responsibilities within the team environment are identified
   • Roles and responsibility of other team members are identified and recognized
   • Reporting relationships within team and external to team are identified
3. Work as a team member
   • Effective and appropriate forms of communications used and interactions undertaken with team members who contribute to known team activities and objectives
   • Effective and appropriate contributions made to complement team activities and objectives, based on individual skills and competencies and workplace context
   • Observed protocols in reporting using standard operating procedures
   • Contribute to the development of team work plans based on an understanding of team’s role and objectives and individual competencies of the members.

UNIT OF COMPETENCY : SOLVE/ADDRESS GENERAL WORKPLACE PROBLEMS
UNIT CODE : 400311212

This unit covers the knowledge, skills and attitudes required to apply problem-solving techniques to determine the origin of problems and plan for their resolution. It also includes addressing procedural problems through documentation, and referral.

1. Identify routine problems
   • Routine problems or procedural problem areas are identified
   • Problems to be investigated are defined and determined
   • Current conditions of the problem are identified and documented
2. Look for solutions to routine problems
   • Potential solutions to problem are identified
   • Recommendations about possible solutions are developed, documented, ranked and presented to appropriate person for decision
3. Recommend solutions to problems
   • Implementation of solutions are planned
   • Evaluation of implemented solutions are planned
   • Recommended solutions are documented and submit to appropriate person for confirmation

UNIT OF COMPETENCY : DEVELOP CAREER AND LIFE DECISIONS
UNIT CODE : 400311213

This unit covers the knowledge, skills, and attitudes in managing one’s emotions, developing reflective practice, and boosting self-confidence and developing self-regulation.

1. Manage one’s emotion
   • Self-management strategies are identified
   • Skills to work independently and to show initiative, to be conscientious, and persevering in the face of setbacks and frustrations are developed
   • Techniques for effectively handling negative emotions and unpleasant situation in the workplace are examined
2. Develop reflective practice
   • Personal strengths and achievements, based on self-assessment strategies and teacher feedback are contemplated
   • Progress when seeking and responding to feedback from teachers to assist them in consolidating strengths, addressing weaknesses and fulfilling their potential are monitored
   • Outcomes of personal and academic challenges by reflecting on previous problem solving and decision making strategies and feedback from peers and teachers are predicted
3. Boost self-confidence and develop self-regulation
   • Efforts for continuous self-improvement are demonstrated
   • Counter-productive tendencies at work are eliminated
   • Positive outlook in life are maintained.

UNIT OF COMPETENCY : CONTRIBUTE TO WORKPLACE INNOVATION
UNIT CODE : 400311214

This unit covers the knowledge, skills and Attitudes required to make a pro-active and positive contribution to workplace innovation.

1. Identify opportunities to do things better
   • Opportunities for improvement are identified proactively in own area of work.
   • Information are gathered and reviewed which may be relevant to ideas and which might assist in gaining support for idea.
2. Discuss and develop ideas with others
   • People who could provide input to ideas for improvements are identified.
   • Ways of approaching people to begin sharing ideas are selected.
   • Meeting is set with relevant people.
   • Ideas for follow up are review and selected based on feedback.
   • Critical inquiry method is used to discuss and develop ideas with others.
3. Integrate ideas for change in the workplace
   • Critical inquiry method is used to integrate different ideas for change of key people.
   • Summarizing, analyzing and generalizing skills are used to extract salient points in the pool of ideas.
   • Reporting skills are likewise used to communicate results.
   • Current Issues and concerns on the systems, processes and procedures, as well as the need for simple innovative practices are identified.

UNIT OF COMPETENCY : PRESENT RELEVANT INFORMATION
UNIT CODE : 400311215

This unit of covers the knowledge, skills and attitudes required to present data/information appropriately.

1. Gather data/ information
   • Evidence, facts and information are collected
   • Evaluation, terms of reference and conditions are reviewed to determine whether data/information falls within project scope
2. Assess gathered data/ information
   • Validity of data/ information is assessed
   • Analysis techniques are applied to assess data/ information.
   • Trends and anomalies are identified
   • Data analysis techniques and procedures are documented
   • Recommendations are made on areas of possible improvement.
3. Record and present information
   • Studied data/information are recorded.
   • Recommendations are analysed for action to ensure they are compatible with the project’s scope and terms of reference.
   • Interim and final reports are analysed and outcomes are compared to the criteria established at the outset.
   • Findings are presented to stakeholders.

UNIT OF COMPETENCY : PRACTICE OCCUPATIONAL SAFETY AND HEALTH POLICIES AND PROCEDURES
UNIT CODE : 400311216

This unit covers the knowledge, skills and attitudes required to identify OSH compliance requirements, prepare OSH requirements for compliance, perform tasks in accordance with relevant OSH policies and procedures

1. Identify OSH compliance requirements
   • Relevant OSH requirements, regulations, policies and procedures are identified in accordance with workplace policies and procedures
   • OSH activity non-conformities are conveyed to appropriate personnel
   • OSH preventive and control requirements are identified in accordance with OSH work policies and procedures
2. Prepare OSH requirements for compliance
   • OSH work activity material, tools and equipment requirements are identified in accordance with workplace policies and procedures
   • Required OSH materials, tools and equipment are acquired in accordance with workplace policies and procedures
   • Required OSH materials, tools and equipment are arranged/ placed in accordance with OSH work standards
3. Perform tasks in accordance with relevant OSH policies and procedures
   • Relevant OSH work procedures are identified in accordance with workplace policies and procedures
   • Work Activities are executed in accordance with OSH work standards
   • Non-compliance work activities are reported to appropriate personnel

UNIT OF COMPETENCY : EXERCISE EFFICIENT AND EFFECTIVE SUSTAINABLE PRACTICES IN THE WORKPLACE
UNIT CODE : 400311217

This unit covers knowledge, skills and attitude to identify the efficiency and effectiveness of resource utilization, determine causes of inefficiency and/or ineffectiveness of resource utilization and Convey inefficient and ineffective environmental practices

1. Identify the efficiency and effectiveness of resource utilization
   • Required resource utilization in the workplace is measured using appropriate techniques
   • Data are recorded in accordance with workplace protocol
   • Recorded data are compared to determine the efficiency and effectiveness of resource utilization according to established environmental work procedures
2. Determine causes of inefficiency and/or ineffectiveness of resource utilization
   • Potential causes of inefficiency and/or ineffectiveness are listed
   • Causes of inefficiency and/or ineffectiveness are identified through deductive reasoning
   • Identified causes of inefficiency and/or ineffectiveness are validated thru established environmental procedures
3. Convey inefficient and ineffective environmental practices
   • Efficiency and effectiveness of resource utilization are reported to appropriate personnel
   • Concerns related resource utilization are discussed with appropriate personnel
   • Feedback on information/ concerns raised are clarified with appropriate personnel

UNIT OF COMPETENCY : PRACTICE ENTREPRENEURIAL SKILLS IN THE WORKPLACE
UNIT CODE : 400311218

This unit covers the outcomes required to apply entrepreneurial workplace best practices and implement cost-effective operations

1. Apply entrepreneurial workplace best practices
   • Good practices relating to workplace operations are observed and selected following workplace policy.
   • Quality procedures and practices are complied with according to workplace requirements.
   • Cost-conscious habits in resource utilization are applied based on industry standards.
2. Communicate entrepreneurial workplace best practices
   • Observed Good practices relating to workplace operations are communicated to appropriate person.
   • Observed quality procedures and practices are communicated to appropriate person
   • Cost-conscious habits in resource utilization are communicated based on industry standards.
3. Implement cost-effective operations
   • Preservation and optimization of workplace resources is implemented in accordance with enterprise policy
   • Judicious use of workplace tools, equipment and materials are observed according to manual and work requirements.
   • Constructive contributions to office operations are made according to enterprise requirements.
   • Ability to work within one’s allotted time and finances is sustained.

GLOSSARY OF TERMS

1. Beneficiary of Insurance – the person who receives a life insurance benefit in the event of the policyholder’s death
2. Claim – A request for payment under the terms of an insurance contract when an insured event occurs.
3. Commercial Insurance – Coverage for businesses for protection against potential losses through unforeseen circumstances like theft, liability, property damage, and for coverage in the event of an interruption of business or injured employees.
4. Contestability – the contestability period for a microinsurance contract shall be one(1) year.
5. Coverage – a microinsurance contract shall cover the insured, and at his/her option, may include his/her immediate family (i.e. his/her spouse, children , and in the case of single persons, his/her parents and siblings ); and his/her assets.
6. Effectivity – a microinsurance contract becomes immediately effective only upon full payment of the first premium, contribution, fees or charges.
7. Grace Period – during the effectivity of the contract, the insured is entitled to a maximum grace period of 45 calendar days from due date of premium/contribution payment.
8. Indemnity – principle by which the assured is compensated for losses sustained and is placed as much as possible in the same pecuniary (financial / economic) position as she/he occupied immediately before the misfortune.
9. Insurable Interest – means that the person who wants to be insured must be legally entitle
to get an insurance policy and the occurrence of loss will cause the policy holder financial loss.
10. Insurance Commission – a government agency under the Department of Finance. The Commission supervises and regulates the operations of life and non-life companies, mutual benefit, and trusts for charitable uses.
11. Insurance Policy – The legal document issued by the company to the policyholder that outlines the conditions and terms of the insurance; also called the policy contract or the contract.
12. Insurance Processor – are commonly the first people to review new policy applications submitted by insurance agents or individuals. In reviewing the application, the processor confirms the completeness and accuracy of all information provided
13. Insured – The policyholder, the person or entity protected in case of a loss or claim.
14. Insurer – The party to the insurance contract who promises to pay losses or benefits.
15. Lapsed Policy – A policy terminated for non-payment of premiums.
16. Life Insurance – a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death or disability of an insured person
17. Microfinance – The provision of the broad range of financial services such as – loans, savings and other non-financial services such as micro-insurance and capacity building programs for the poor and low-income households to assist their micro-enterprises so as to enable them to raise their income levels and improve their living standard.
18. Microinsurance – is an activity providing specific insurance, insurance‐like and other similar products and services that meet the needs of the low income sector for risk protection and relief against distress, misfortune and other contingent events. This shall include all forms of insurance, insurance–like and other similar activities, as may be defined by concerned regulatory bodies, with the following features:
a. Premiums, contributions, fees or charges are collected/deducted prior to the occurrence of a contingent event; and
b. Guaranteed benefits are provided upon occurrence of a contingent event
19. Mutual Benefit – a social organization which provides insurance to its members on an assessment basis.
20. Non-life Insurance – also called General insurance. It is typically defined as any insurance that is not determined to be life insurance. (Ex. Property & Casualty insurance)
21. Period of Cover – the term of the microinsurance contract shall be determined by the provider and shall depend on type of coverage
22. Premium – The sum paid by a policyholder to keep an insurance policy in force.
23. Proximate Cause – active efficient cause that sets in motion a train of events which brings about a result.
24. RIMANSI – a microinsurance technical resource center established by leading microfinance institutions in the Philippines to promote universal risk protection for the socio-economically disadvantaged in the Asia and the Pacific.
25. Suicide clause – The provider shall be liable if the insured commits suicide after one (1) year from the effective date or date of last reinstatement of the contract. Suicide committed in the state of insanity will be compensable regardless of the date of commission. Where suicide is not compensable, the liability of the provider will be limited to the return of premiums.
26. Underwriting – Process of selecting risks for insurance and determining in what amounts and on what terms the insurance company will accept the risk.
27. Utmost Good Faith – the insurance contract being a promise to pay in the case of loss is based on utmost good faith between the Assured and the Insurer