In a bid to protect policyholders, section 45 of Insurance Act, 2006 (Act 724) requires all new insurance products to be approved by the NIC.  ...

An application for product approval must contain the following documents;  1.        Transmittal letter 2.      ...

This serves as the covering letter for the application and must contain general specified information about the product being filed. The information that typica ...

Certain pieces of information must be contained in the application form to make it an integral part of the contract. These are as follows;  a.  & ...

The policy document should be in simple and easily readable and understandable English so as to allow consumers to better understand and appreciate their rights ...

As a standard, all life insurance policy forms must contain a description of the type of product the policy represents. This description, which is usually on th ...

This provision should allow the policyholder at least 15 days free-look period (following delivery of the policy ) to review and evaluate the policy to ensure t ...

This provision defines which documents constitute the contract between the insurance company and the policyowner. In the Ghanaian context, this provision should ...

This provision should allow a policyholder to pay a renewal premium within at least 31 days, following a premium due date. During the grace period, life insuran ...

The provision should limit the time during which the insurance company may contest the validity of the insurance contract on the grounds of a material misrepres ...

The provision should state how the death benefit will be adjusted if the age of the insured has been misstated. The misstatement of age provision would normally ...

The benefits from individual life insurance policies are normally payable on the death of the insured. To avoid confusion as to who is entitled to the policy pr ...

This provision gives a policyholder who has had his policy lapsed for nonpayment of premium or has been continued under a non-forfeiture option, the right to re ...

Participating policies must include a dividend provision that should describe the policyholder ‘s right to share in the insurance company’s divisible surplus. T ...

In addition to the provisions discussed above which are applicable to all individual life insurance policies (both term and permanent) there are certain provisi ...

Due to the nature of permanent life insurance policies, they normally acquire cash surrender values after some period of continued premium payments (normally tw ...

This provision specifies the terms on which a policyowner may obtain a policy loan based on the cash surrender value of his/her policy. The provision should sta ...

All life insurance contracts should provide for Settlement Options for the benefit proceeds payable at maturity or at death. This provision will describe the po ...

In addition to the “required” policy provisions, certain policy provisions may be included in a life insurance policy form at the discretion of the insurance co ...

An assignment is an agreement where one party in a contractual relationship transfers some or all of their rights under the agreement to a third party. A policy ...

Individual life insurance policies “may” include provisions which state certain conditions under which the life insurance company will not pay the death benefit ...

This provision should state that the policy does not cover death by suicide within a specified period of time following the issue date. This time period should ...

An insurance company “may” exclude from coverage death resulting from war and acts of war. ...

An insurance company “may” exclude from coverage death occasioned by special aviation activities. This is done when the insurance company feels that such activi ...

When a prospective insured is engaged in a hazardous occupation like auto racing the insurance company “may” exclude such specific activities from coverage.&nbs ...

Some policy provisions are deemed to be against public interest and are normally not permitted to be included in life insurance policy forms. The most common of ...

In addition to the policy provisions outlined above, Universal Life Insurance policies require further provisions because of the peculiar nature of the product. ...

All universal life insurance policies shall therefore state the following:   1. The minimum annual interest rate guaranteed under the policy  ...

Universal Life policies lapse on the date the net cash surrender value equals zero. The wording of Universal Life products must therefore require the insurance ...

At least on an annual basis, an insurer selling Universal Life polices must provide, without charge, a report/statement representing the status of the policy. T ...

Interest-indexed universal life insurance policies provide for interest credits that are linked to an external standard. For such policies, the following provis ...

The actuarial memorandum should among other things contain the following;  1.        General description of the nature of the prod ...

The application must be accompanied by a prototype (not a rough draft) of the marketing brochure for the product. The brochure must among other things, prominen ...

The application must be accompanied by a Certification by either the company’s Compliance Officer or Appointed Actuary that the  product complies with all ...

The application must also be accompanied by the appropriate filing fee. Kindly refer to the schedule of fees and charges payable to the NIC.  ...

A policy rider is an amendment to a life insurance contract that increases or limits the benefits payable under the contract. Example of riders are the accident ...