The National Institute of Open Schooling

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The National Institute of Open Schooling (NIOS) is the largest open schooling system in the world. The institution is an Autonomous Institution under Ministry of Human Resources Development, Government of India.

• NIOS offers 24*7 online admission for "Secondary and Senior Secondary Courses".
• Examinations are held in April/May and October/November every year.
• A student can have on demand examination facility as well
• The NIOS toll free number is 1800-189-9393
• Their email address is: lsc@nios.ac.in
• Their website is: www.nios ac.in
• This information is useful for students who want to complete their Secondary or Senior Secondary Course especially if they have not been able to complete their studies or even if they do not have access to regular schools.

The National Institute of Open Schooling

The National Institute of Open Schooling (NIOS) is the largest open schooling system in the world. The institution is an Autonomous Institution under Ministry of Human Resources Development, Government of India.

• NIOS offers 24*7 online admission for "Secondary and Senior Secondary Courses".
• Examinations are held in April/May and October/November every year.
• A student can have on demand examination facility as well
• The NIOS toll free number is 1800-189-9393
• Their email address is: lsc@nios.ac.in
• Their website is: www.nios ac.in
• This information is useful for students who want to complete their Secondary or Senior Secondary Course especially if they have not been able to complete their studies or even if they do not have access to regular schools.

Glossary of Insurance Actuarial Terms

1. Annuity Certain: This is an immediate annuity where the installments are guaranteed for the next 'n' chosen years whether the life assured is alive or not
2. Assured Benefit: Provides benefit in the event of death or survival benefits on specific periods provided the life assured survives
3. Accident & Sickness: Accidents causes injuries to the body and sickness causes ailments to the body;   requiring expenses for hospitalization and treatment and temporarily stops the regular flow of income to family. 
4. Administrative Expenses:Expenses to handle all administrative jobs i.e preparation of policy document, collection of premium settlement of claims which also includes salaries to staff
5. Allocated Amount: Portion of money that is allocated to unit account in investment linked contracts
6. Annuity: A life insurance product to provide for old age income and to meet funeral expenses 
7. Assignor/Assignee: Usually being banks, housing loan companies,insurers and lenders who wish to have security against the loan granted to the policyholder, to the extent of their interest
8. Assurances: A life insurance product that makes payments to meet educational and marriage expenses of children and to provide for old age income and funeral expenses of employees and self employed.
9. Age: A maximum and a minimum age is defined in the terms and conditions of the policy
10. Add-on's:Additional Benefits attached to the main contract which are optional to the policyholder
11. Alteration: These change the main structure of the product but do not impact the financial features of the product eg: reduction in policy terms, change from one mode of payment to another mode
12. Bonus/dividend: The share of profits allocated to with profit contracts 
13. Cash flow: In this method, premium is determined using expected income and expected outgo so that there would be profits
14. Capital redemption contracts: A life insurance contract dependent on human life and return on investments
15. Cash Bonus: The policyholder is entitled to receive cash as bonus for a policy year
16. Cash Value/ Surrender Value: Higher surrender value over and above the guaranteed surrender value
17. Cession: The amount of cover ceded to the re insurer
18. Charges: Money from investment linked contracts that are not allocated to by units at the prevailing unit price are used to meet charges and commission. Charges refer to administrative and benefit expenses and other unforeseen expenses
19. Concluded Contract: Risk is not assumed by the insurer unless insurer receives premium which is realized as cash in the books of the insurer.
20. Consumer Forums: Their interest is to protect the insured and the beneficiaries against the insurer's actions in settlement of claims
21. Commission: Payment made to agent and brokers for business procured
22. Commutation: Relationship between outgo and premium charged
23. Claim expenses: Refers to expenses towards investigation and litigation expenses to settle claim
24. Decreasing Term Insurance:The amount of death benefits systematically reduce according to the year of death
25. Declined life:A life declined by the insurer but accepted by the re insurer with some extra premium 
26. Deferment period: Refers to the period of waiting in a deferred annuity contract
27. Deferred Annuity: A series of benefits payable after a a specified period known as 'deferment period'
28. Death: If the assured dies during the period of contract, a benefit amount is payable. Some causes of death like suicide, risky operations like driver and stuntman may not be covered.
29. Death Claim: Includes funeral expenses to bury or cremate the dead body; expenses for death ceremonies after the death occurs; to provide savings for family/dependents or a flow of regular income for family/dependents
30. Discount rate: Used to calculate the present value of income and outgo
31. Distribution Channel: Agent, Broker or direct sales force
32. Double Endowment: Double the survival benefit upon maturity 
33. Early Termination: If the insurance policy is terminated due to any reason before the expiry date of the policy; the benefits will be described according to the number of years elapsed after the policy commences.
34. Equation of Value: In an insurance product: The present value of premium = Present Value of Benefits + Present Value of Expenses ( which includes profit to shareholders)
35. Expenses: These include initial expenses, commission, medical expenses, renewal expenses, procurement and underwriting expenses, claim expenses
36. Formula method:A formula based on life tables is used to calculate premium
37. Facultative limit:A certain amount that is agreed and above which is passed on to the re insurer
38. File and Use: The insurers will have to submit an application form to the regulators and wait for clearance from the regulator in order to market the product
39. Fine print: This should be avoided as interpretation of the policy conditions and clauses becomes difficult
40. Gender: This refers to whether the assured is a male or a female
41. Guaranteed Additions:A guaranteed percentage increase in sum insured upon survival after a specified number of years or on maturity
42. Guaranteed Surrender Value: A minimum amount (say 30% of premium paid excluding premium paid in the first year) payable in the event the policyholder terminates the contract
43. Health: The insured should have normal health conditions at the time of purchase of the product. The insurer may ask for medical examination as and when they feel that it is required 
44. Heir/Successor: Have a right over the estate of the policy holder and is the beneficiary due to the death of the policyholder who should be the life assured.
45. Income: A minimum monthly and annual income of the assured. e.g: $ 50 per month and $ 500 per year.
46. Income: Includes premium and investment returns of the insurer
47. Insurance Contract/Product: A 'promise' sold by an insurer to a policyholder which sets terms and conditions between the insurer and the policyholder. It is a finished good(or service) that provides for specific benefits on the happening of insured events like death and maturity.
48. Initial Expenses: A flat amount including set up expenses independent of premium and sum assured
49. Insurable Interest: There should be a definite relationship between the parties and there should be financial commitments if future earnings are not forthcoming.
50. Insurance Awareness: Awareness of insurance products and their utility
51. Installment premium: Premium payable monthly, half yearly or yearly
52. Immediate Annuity:Provides a series of payments of a stipulated period;say; every month on survival
53. Increasing term assurance: Death benefits increase in a specific order according to the number of years of survival
54. Interest rate: Expected rate of return on investments
55. Loan Facility: This is attached to the policy along with certain terms and conditions
56. Legal Contract: A stamped paper duly signed by the insured setting out terms and conditions. The policy bond is also called the 'insurance contract' or 'insurance policy'.
57. Legal Guardian: Also known as the nominee
58. Linked Contract: Some benefits are wholly or partly linked to the performance of specified investments
59. Material Information: Some information that is material to the insurer as it can affect the probability of adverse claims. If such information is suppressed in the original contract, the insurer may cancel the contract.
60. Maturity: A benefit amount is payable to the life assured life assured survives till the date of maturity
61. Net Asset Value: Units that are allocated at a specified price also know as offer price in investment linked contracts
62. New Business Strain: For the expected volume of business, it is the amount of loss that is required to be financed before profits kick in after incurring procurement expenses and other infrastructural expenses that can be recouped in the future.
63. Non-profit contract: Premium is more when compared with participating/profit contracts
64. Non-forfeiture: Non forfeiture benefits include cash surrender value, premium paid-up value, automatic premium loan from guaranteed surrender value and so on.
65. Nominee: Legally discharges the insurer's liability and takes care to pass the policy-monies to the legal heirs or successors.
66. Option: Offered by insurers for policies which facilitates conversion into different types of policy or to alter the terms and conditions of the policy
67. Old Age: Flow of regular income stops and it is necessary to have financial support to take care of old age needs. Funeral expenses in case of death due to old age.
68. Original Premium Basis: Reinsurance premium charged at the same rate as insurers premium
69. Outgo: Includes benefits payable and expenses
70. Paid-up additions: A type of bonus payment where the policyholder is entitled to receive an additional sum insured
71. Paid-up benefits: Refers to the situation when the policyholder stops paying premium for some time and the policy would be allowed to continue for a predetermined reduced sum insured
72. Pension policies:Annuity payment are made till the death of the second life
73. Permanent health: Benefits provided from disability due to accident or incapacity due to illness of more than five years but cannot be cancelled by the insurer
74. Pure endowment: There are survival benefits at the date of maturity
75. Premium: The price paid to purchase an insurance contract and is denoted as $ xx/- p.a.
76. Price: The value expressed in monetary terms (Dollars, Pounds, Yen, Rupee) with which an exchange can be made for goods or services
77. Product Design: It gives the benefit structure, the premium rate, the commission structure and other added benefits. It should be easily understandable and simple to comprehend.
78. Profitability: This is the main reason for the insurers to carry on the insurance business. Profitability is mainly dependent on the volume of sales.
79. Policyholder: A proposer is usually referred to as 'policyholder' and is the owner of the policy having entered into a contract of insurance with the insurer.
80. Proposer and Life assured: Life assured is an individual on whose life insurance cover is being granted. The proposer and the life assured can be two different persons or else the proposer and the life assured can be the same
81. Proposal form: The application for insurance
82. Reinsurance: An arrangement involving passing on insurers risk to another insurer who is the re insurer in order to minimize the insurers risk
83. Regulator: Monitors the insurers through 'solvency test' and 'asset - liability matching' test. The regulator can stop the sales of a product if they are under the opinion that the insurer's operations are not in the interest of the public
84. Renewal Expenses: Expenses incurred to maintain or retain business
85. Retention: The amount of insurance cover retained by the insured
86. Rider:Also known as add-on's, refer to additional benefits which are optional and can be attached to the policy contract
87. Sales: Made by agents, brokers and direct sales force, a commission payment related to the premium is made by the insurer
88. Stamp Duty: Levied by the government, it is the cost of stamps to be affixed on the policy bond(the insurance contract)
89. Stakeholders: Concerned with the operational performance of the insurer and the policies, stakeholders include the policyholders, the distributors and  the Insurers' Associations 
90. Securitization: Under this concept, the contract is considered as property and the contract can be liquidated in the secondary market
91. Sales literature: Explains the type and utility of the product
92. Sickness benefits: same as in (3) above
93. Sum at risk: Refers to the sum assured minus reserve(reserve is calculated by the insurers) used in surplus reinsurance treaties
94. Treaty:A  arrangement between the insurer and the re insurer
95. True premium: Charging premium up to date of death and not charging premium for the entire policy year of death
96. Underwriting: Involves underwriting expenses as expenses are involved in assessing the health and financial status of the life assured
97. Unit linked contract: Has two accounts; unit account  and non unit account
98. Vested bonus: Payable on death or maturity only and  are not payable on surrender of policy
99. With profit contracts:These insurance contracts provide bonuses or dividends for some extra premium
100. Quota Share: Re insurers share a certain portion of risks assumed by the insurers