Life Insurance: History, Features, and Exam Preparation

The main takeaway is: "As a mentor, Oh Jun-young guides candidates to pass exams easily and quickly through lectures and tips."

### Effective Strategies for Acing Your Qualification Exam
- Practice tests multiple times, aim for scores above 60 or 70, and review the lecture if scoring in the 50s or below.
- Memorize key information using the provided techniques, such as associating terms with specific meanings or visualizing concepts.
- Understand the history of life insurance, including ancient institutions, the role of guilds, and the development of modern insurance companies, focusing on important dates and key characters.

### The Evolution of Life Insurance in Korea
Life insurance in Korea has its origins in Japan, not the United States, and has been influenced by historical events such as the Ganghwa Treaty. The industry saw significant development in the 1960s and 70s, with the prevalence of group insurance and the later dominance of individual insurance. The 1990s brought about the opening of the insurance market and the introduction of the bancassurance system, leading to fierce competition.

### The Importance of Safe and Profitable Operations in Life Insurance
Life insurance companies need to balance safety and profitability to ensure immediate payout of benefits. The increasing need for life insurance is driven by aging populations, rising disease rates, and the growing responsibility of passing on assets to grandchildren. Financial planning is crucial for maximizing satisfaction, preparing for the risks of aging, and adapting to socio-economic changes. The principles of insurance, including the law of averages and mortality tables, are essential for ensuring the balance of income and expenses in life insurance.

### Understanding Insurance: The Basics
Insurance involves the insured person, who needs written consent, and the beneficiary, who receives the insurance money. The insurance period is the duration of the insurance, and the payment period is the time for paying the insurance premium. Dividends in insurance refer to returning a portion of the customer's insurance premium, and there are with-profits and without-profits insurance products. The insurance contract requires approval from the insurance company to be valid, making it a crucial aspect of insurance.

### Understanding Subscription Terms and Insurance Policies
Receiving subscription documents by email requires opening the email to acknowledge receipt. The withdrawal of a subscription allows for a certain timeframe to cancel, with some items being non-refundable. Insurance companies are required to refund the premium within 3 days, and failing to do so is considered their fault. The coverage under an insurance policy starts once the first premium is paid, regardless of approval, with different requirements for diagnosis-required contracts. If an insurance policy is not provided or explained, the policyholder can cancel the contract within 3 months, placing the fault on the company.

### Insurance Premiums and Benefits: A Comprehensive Guide
Insurance companies are obligated to pay benefits within a specific timeframe, with a general principle of 3 to 1 days for payment after the application, unless there are exceptional circumstances. Midterm, maturity, and death insurance benefits are the three main categories of insurance benefits provided. The duty to inform about past and current health conditions is crucial for the policyholder when applying for insurance, as violating this duty can lead to serious consequences such as contract cancellation or adjustments to coverage. If the insurance premium is not paid, the policy will be terminated, with a grace period of 14 days for general contracts. Address changes and reporting insurance accidents are essential responsibilities of the policyholder and the insured, and failure to do so can result in potential harm to the customer. Additionally, paying overdue insurance premiums can lead to a revival of the contract.

### Insurance Contract Revival and Changes: A Simple Guide
Insurance contracts can be revived within 3 years of termination by paying overdue money and interest. Unfairly converted contracts can be reverted to the original within 6 months with a comparison guide confirmation. Changing the contract holder is crucial for the company, while changing the beneficiary is less important from an economic perspective.

Policyholders can make changes to the insurance contract after a year, such as reducing the premium and death benefit. These changes prevent the need for contract cancellation if the premium becomes burdensome. The policyholder can cancel the insurance contract at any time, except for pension-related matters, and can terminate the contract for death benefit payments with written consent.

Insurance contracts have a claim right expiration of two to three years, and the insurance age is calculated based on specific principles, rounding up the age for six months and above.

### Understanding Insurance Age and Underwriting in Insurance Contracts
Calculating insurance age involves subtracting the birth month from the current month, with a minimum of 6 months for it to be considered. Insurance contract loans are limited by the surrender value, and in case of disputes, the policyholder's side is favored. Underwriting in insurance involves evaluating risk factors and has four steps: insurance planner's choice, diagnostic stage, underwriter's evaluation, and dedicated staff departure. Underwriting also includes environmental, physical, moral, and financial elements to assess risk levels and determine insurance premiums.

### Responsibilities and Ethics in the Insurance Industry
Insurance companies offer premium discounts for customers and handle the task of paying insurance money to beneficiaries. Claim handlers must have practical experience, interpret insurance regulations correctly, and have a good understanding of medical knowledge. Insurance planners need to provide rational choices for consumers, avoid unfair practices, and strengthen insurance contract management. Daily collections and unauthorized approval are not allowed in the insurance field, and planners must adhere to principles and follow relevant regulations. Insurance fraud can result in heavy penalties, including prison time and fines of up to 50 million won, with two common types being yeonseong fraud and gyeongseong fraud.

### The Growing Problem of Insurance Fraud
Insurance fraud is on the rise, with an increasing number of incidents and severe punishments under criminal law. There are four main types of insurance crimes, including intentionally causing accidents and issuing false medical certificates. Property insurance fraud is becoming a significant issue, leading to higher insurance premiums. The detection of insurance fraud has improved, but it still poses a threat to society's stability and the insurance industry's reputation.

### Understanding the History and Principles of Life Insurance for Exam Success
* 📜 The history of life insurance dates back to ancient, medieval, and modern times, with various forms of **mutual support organizations and guilds providing insurance-like functions**.
* 🏛 In ancient times, "Eranoi" were religious tax-exempt groups, while "Kollyria" were **mutual support organizations for hunger relief**.
* ⚓ Guilds in medieval times operated as mutual insurance organizations for ship cargo, with the "**ton-t**" pension system in Italy providing **lifelong pensions**.
* 🇬🇧 The Equitable Life Assurance Society, established in England in 1762, is considered the **world's first modern life insurance company**.
* 🇰🇷 In Korea, life insurance started with the establishment of Chosun Life in 1921, with **significant developments in the 1960s and 70s**.
* 💼 The bancassurance system, selling insurance at banks, was introduced in the 2000s, with online insurance platforms like **Insurancedomo** launching in **2015**.
* 🔢 Life insurance premiums are calculated based on **actuarial tables and mortality rates**, with principles of **surplus distribution** governing **dividend payments**.
* 📝 The insurance contract is a legally binding agreement, with the policyholder making an offer and the insurance company **approving it** for the contract to be valid.

### Understanding Insurance Policies and Procedures
* 📝 Insurance coverage begins upon payment of the first premium, even before approval, with the exception of **policies requiring a doctor's diagnosis**.
* 📄 Insurance policies detail **coverage, benefits, restrictions, termination, and party obligations**, with **mandatory explanations for less common matters**.
* 🔍 Failure to provide or explain the insurance policy within 3 months allows the policyholder to **cancel the contract and receive a full refund**.
* 💰 Insurance benefits (**midterm, maturity, death**) should be paid within **3 days to 30 days**, depending on circumstances.
* 🏥 "The duty to inform requires **honest disclosure of health conditions**, and intentional or significant violations can result in **contract cancellation or coverage adjustments**."
* ⏰ Contracts may be terminated if premiums are not paid within the grace period (**14 days for most contracts, 7 days for short-term contracts**).
* 🔄 Contract changes, such as **reducing coverage or premiums**, can be made after the **first year** of the contract.
* 🕵 Underwriting evaluates risk factors (environmental, physical, moral, financial) to determine **premiums and coverage eligibility**.

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LIFE MD 자격시험 족집게 PART 1

LIFE MD 자격시험 족집게 PART 1