PDI - Legal Aspect of Life Insurance

Learning Outcomes

On completion of the module, students are expected to be able to:

• comment on the appropriateness of the life insurance practices and policies in compliance with relevant legal regulations;

• make recommendations with justification for life insurance agreement and contract affirmation or rebuttal; and

• apply concepts and principles of relevant law in justifying and resolving life insurance contractual and claims disputes.

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Learning Contents

1. Legal environment

• Anti-money laundering and privacy

• Related aspects and developments

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2. Law of contracts and concept of agency

• Basic principles of contract law

• Related laws and regulations of selling of investment and life insurance products

• Law and regulation of agency including variousduties of financial institutions and intermediaries

• Waiver and estoppel

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3. Formation and structure of a life insurance policy

• Policy provisions, benefits and limitations

• Property rights in a life Insurance Policy

• Beneficiary designations and changes

• Settlement options, trusts and wills

• Premiums and dividends

• Non-forfeiture provisions and policy loans

• Assignments and other transfers including commercial transactions and bankruptcy

• Lapse and reinstatement

• Remedies, policy contests and contract performance

• Regulation of product disclosure and illustration

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4. Group insurance, health insurance and annuity contracts

• Products and features including retirement products provided by HK Mortgagee Corporation Ltd