scholarly journals Good Faith in Life Insurance Contract by Indonesian Court

2017 ◽  
Vol 3 (1) ◽  
pp. 49
Author(s):  
Mokhamad Khoirul Huda
Keyword(s):  
Life Insurance ◽  
Good Faith ◽  
Insurance Contract ◽  
Full Understanding ◽  
Insurance Contracts ◽  
The People ◽  
Obligation To Inform

This paper reviews both the interpretation of good faith and its implementation by the Court in terms of life insurance contracts. The principle of good faith in life insurance contracts was under the provision of the Article 251 Wet Boek van Kophandel which assigned the obligation of good faith on the insured. Based on the context of its historical and systematical interpretation, the obligation of good faith should be on both sides, the insurer and the insured. The insured had an obligation to inform any material facts and the insurer had to investigate those all facts. Until recent days, however, judges in all levels of Court did not have any shared and full understanding on the interpretation of good faith in life insurance contracts. As the result, many Courts were frequently inconsistent with each other. Hence, the sense of fairness the people perceived from the court verdict was not achieved.

scholarly journals The IFRS 17 contractual service margin: a life insurance perspective

2021 ◽  
Vol 26 ◽  
Author(s):  
W. Yousuf ◽  
J. Stansfield ◽  
K. Malde ◽  
N. Mirin ◽  
R. Walton ◽  
...  
Keyword(s):  
Life Insurance ◽  
Market Value ◽  
Financial Statements ◽  
Insurance Contract ◽  
Accounting Standard ◽  
Insurance Contracts ◽  
Ifrs 4 ◽  
Insurance Perspective ◽  
To Come

Abstract IFRS 17 Insurance Contracts is a new accounting standard currently expected to come into force on 1 January 2023. It supersedes IFRS 4 Insurance Contracts. IFRS 17 establishes key principles that entities must apply in all aspects of the accounting of insurance contracts. In doing so, the Standard aims to increase the usefulness, comparability, transparency and quality of financial statements. A fundamental concept introduced by IFRS 17 is the contractual service margin (CSM). This represents the unearned profit that an entity expects to earn as it provides services. However, as a principles-based standard, IFRS 17 results in entities having to apply significant judgement when determining the inputs, assumptions and techniques it uses to determine the CSM at each reporting period. In general, the Standard resolves broad categories of mismatches which arise under IFRS 4. Notable examples include mismatches between assets recorded at current market value and liabilities calculated using fixed discount rates as well as inconsistencies in the timing of profit recognition over the duration of an insurance contract. However, there are requirements of IFRS 17 that may create economic or accounting mismatches of its own. For example, new mismatches could arise between the measurement of underlying contracts and the corresponding reinsurance held. Additionally, mismatches can still arise between the measurement of liabilities and the assets that support the liabilities. This paper explores the technical, operational and commercial issues that arise across these and other areas focusing on the CSM. As a standard that is still very much in its infancy, and for which wider consensus on topics is yet to be achieved, this paper aims to provide readers with a deeper understanding of the issues and opportunities that accompany it.

scholarly journals Reflexiones sobre el anteproyecto de ley de contrato de seguro y la designación del beneficiario en el seguro sobre la vida = Reflections on the draft law on the insurance contract and beneficiary designation in on life insurance

2012 ◽  
pp. 145
Author(s):  
María Angustias Díaz Gómez ◽  
Carlos Miguélez del Río ◽  
Elicio Díaz Gómez
Keyword(s):  
Life Insurance ◽  
Insurance Contract ◽  
Insurance Contracts

<p>En este trabajo se analiza el Anteproyecto de Ley español de Contrato de Seguro, de 8 de abril de 2011, centrándonos en las novedades más significativas que contiene, en el ámbito de los Seguros de las personas, en el seguro sobre la vida y, de un modo más específico, respecto al beneficiario.</p><p>This paper analyzes the Spanish Draft Law on Insurance Contracts (<em>Anteproyecto de Ley de Contrato de Seguro</em>), dated April 8, 2011, focusing on the most significant developments that contains, in the field of insurance of persons, in life insurance, and in a more specific regard to the insurance beneficiary</p>

scholarly journals An Obligation to Represent and Disclose Material Facts as a Good Faith in Life Insurance Contract

2017 ◽  
Vol 8 (4-1) ◽  
pp. 53-60
Author(s):  
Mokhamad Khoirul
Keyword(s):  
Life Insurance ◽  
Medical Records ◽  
Personal Data ◽  
Good Faith ◽  
Insurance Contract ◽  
Comparative Approach ◽  
Conceptual Approach ◽  
Exercise Habit ◽  
Personal Benefit ◽  
Fundamental Information

Abstract This study aims to analyze an obligation of explaining and revealing material facts and identify any kinds of violation of good faith in life insurance contract. It uses several approaches including statute approach, comparative approach, and conceptual approach. The result defines material facts as any kinds of facts the insurer needs in order to make decision whether accepting or objecting the possible risks assigned. The insurer needs to accurately and completely know the insured’s personal data and medical records, including disease suffered, smoking habits, and even an extreme exercise habit such as paragliding. Kinds of violation probably done by the insured can be in the form of (1) misrepresentation, which includes giving incorrect statement but not intentionally conducted (i.e., innocent) and providing incorrect explanation intentionally (i.e., fraudulent) due to personal benefit; (2) non-disclosure, which includes neither revealing the facts nor telling any fundamental information other parties need to know, not due to deliberateness but rather probably due to ignorance or innocence, and intentionally hiding particular facts in order to get personal benefits (concealment).

PHILOSOPHICAL BATTLE AGAINST MORAL HAZARD: DO WE NEED LAW METHODOLOGY CHANGE FROM “ALL OR NOTHING PRINCIPLE” TO “PRINCIPLE OF PROPORTIONALITY”?

2021 ◽  
Vol 3 (3) ◽  
pp. 124-138
Author(s):  
Olavi-Jüri Luik ◽  
Mats Volberg
Keyword(s):  
Moral Hazard ◽  
Insurance Contract ◽  
Comparative Approach ◽  
Insurance Law ◽  
Insurance Contracts ◽  
The People ◽  
Principle Of Proportionality ◽  
The Baltic ◽  
European Insurance ◽  
Legal Methodology

Introduction: this article looks into the central problem in insurance law, where the principle of “all or nothing” applied by insurance providers and legislators to moral hazard (if the risks of people are covered with insurance contracts then the people often change their risk behavior to involve higher risks by presuming that the concluded insurance contract always covers the loss incurred) is being replaced by the principle of proportionality in the modern insurance law of Western countries. Purpose: to identify significant methodological changes in determining the scope of performance of an insurance provider’s obligation caused by the application of the principle of proportionality. Methods: the authors use the approach of the Baltic Sea States (e.g. Estonia, Lithuania, Russia and Finland) and PEICL (Principles of European Insurance Contract Law1) in a comparative approach, analyzing the respective paradigmatic methodological shift (which currently among the named countries is directly reflected only in the Finnish Insurance Contract Act2) in the context of practical philosophy. Results: the paper demonstrates the necessity to change the paradigmatic legal methodology, according to which the principle of “all or nothing” would be replaced by the principle of proportionality.

Of reciprocity and remedies—duty of disclosure in insurance contracts

Legal Studies ◽  
1991 ◽  
Vol 11 (2) ◽  
pp. 131-154 ◽  
Author(s):  
H. Y. Yeo
Keyword(s):  
Eighteenth Century ◽  
Case Law ◽  
Good Faith ◽  
Insurance Contract ◽  
Insurance Contracts ◽  
Original Intention ◽  
Utmost Good Faith ◽  
Distinguishing Features

One of the most distinguishing features of an insurance contract (being a contract uberrimae fidei) is that it attracts the duty of disclosure. As it presently stands, this duty unfortunately has drawn such criticism from many quarters for inflicting what is arguably one of the most onerous burdens upon the insured. The irony of the situation is that the original intention of the doctrine, as had been expressed by Lord Mansfield himself in the celebrated eighteenth century case of Carter v Boehm, was for both contractual parties–and not just only the insured–to exercise the utmost good faith in their dealings. However, all through the intervening years, the tide had almost entirely flowed in one direction. There has, hitherto, not really been any case law developing, or even spelling out, the insurer's duty of good faith. On the contrary, landmark cases such as CTI v Oceanus and Lambert v CIS have been only too generous in showering the insurer with so many privileges that from the perspective of the hapless insured the duty becomes almost like ‘an engine of oppression’.

scholarly journals MENCIPTAKAN ITIKAD BAIK YANG BERKEADILAN DALAM KONTRAK ASURANSI JIWA

Yuridika ◽  
2014 ◽  
Vol 29 (2) ◽  
Author(s):  
Zahry Vandawati Chumaida
Keyword(s):  
Life Insurance ◽  
Good Faith ◽  
Insurance Contract ◽  
Insurance Claim

An insured who bind themselves to the insurer to protect his life by taking life insurance, of course, will conduct the closing of the contract of insurance agreements. To close this insurance contract the insured is deemed very essential to peruse the terms and conditions and the rights and obligations that will he get. In many cases it is turned to be extremely detrimental to the insured party when related to the contract of insurance. This is due to a lack of good faith on the part of the insurer to pay insurance claim filed by the insured or beneficiary. Instead, the insured is required to execute an agreement in good faith even at the beginning of the insurance contract the insured has been burdened insurance for acting in good faith.Keywords: contract, good faith, life insurance.

scholarly journals Evaluasi Penerapan Akuntansi Kontraksi Asuransi Jiwa Dalam Kaitannya Dengan PSAK No. 36 Pada PT Taspen (Persero) Cab. Bogor

2018 ◽  
Vol 2 (2) ◽  
pp. 122-133
Author(s):  
Dwi Ria Nurwita ◽  
Bambang Pamungkas
Keyword(s):  
Life Insurance ◽  
Research Method ◽  
Qualitative Method ◽  
Insurance Contract ◽  
Insurance Contracts ◽  
Insurance Program ◽  
Future Policy ◽  
Premium Income ◽  
To Receive ◽  
Guide Lines

Life insurance is an agreement between two (2) or more parties with the insurerand theinsured to receive payment of a premium to base a claim for death or life of someone who is insured to the insurance contract is completed. IAI (Indonesian Institute of Accountants) has published latter PSAK No. 36 was revised in 2011 on Accounting for Insurance Contracts. The purpose of this study was to determine the application of the life insurance contract accounting under PSAK No. 36 in general, both in the establishment of policies on premium income and expenses for setting policy life insurance claims on TASPEN PT (Persero) Cab. Bogor. The method used in this research is descriptive qualitative method. This research method is done by describing the rank of overall life insurance accounting and PSAK No.36. The results showed that the preparation of life insurance accounting TASPEN PT (Persero) Cab. Bogor has been prepared based on generally accepted accounting policies, and some of the related GAAP, including PSAK No.36 Accounting for Life Insurance which serve as guide lines for the recording and programming of one insurance program ENT (Annuities). Premium income TASPEN PT (Persero) derived from participant and employer contributions for ENT program. While the claims of the existing burden on TASPEN PT (Persero) is Liability for Future Policy Benefits (KMPMD), debt claims and estimated claims liability. In general TASPEN PT (Persero) Cab.Bogor have adopted regulations that refers to IFRS, especially PSAK No.36 in life insurance accounting, include the recognition, recording, and reporting of all transaction.

scholarly journals Optimal Hedging and Pricing of Equity-Linked Life Insurance Contracts in a Discrete-Time Incomplete Market

2011 ◽  
Vol 2011 ◽  
pp. 1-23
Author(s):  
Norman Josephy ◽  
Lucia Kimball ◽  
Victoria Steblovskaya
Keyword(s):  
Financial Market ◽  
Discrete Time ◽  
Life Insurance ◽  
Incomplete Market ◽  
Insurance Contract ◽  
Fair Price ◽  
Hedging Strategy ◽  
Insurance Contracts ◽  
Risk Return ◽  
Optimal Hedging

We present a method of optimal hedging and pricing of equity-linked life insurance products in an incomplete discrete-time financial market. A pure endowment life insurance contract with guarantee is used as an example. The financial market incompleteness is caused by the assumption that the underlying risky asset price ratios are distributed in a compact interval, generalizing the assumptions of multinomial incomplete market models. For a range of initial hedging capitals for the embedded financial option, we numerically solve an optimal hedging problem and determine a risk-return profile of each optimal non-self-financing hedging strategy. The fair price of the insurance contract is determined according to the insurer's risk-return preferences. Illustrative numerical results of testing our algorithm on hypothetical insurance contracts are documented. A discussion and a test of a hedging strategy recalibration technique for long-term contracts are presented.

Sign in / Sign up

Export Citation Format

Share Document