Policy Administration and Statement to Policyholders 保單管理及給予保單持有人的保單報告

Policy Issuance 保單簽發

The authorized insurer handles administration of investment-linked long term policies, including collecting premiums, processing documents and administering benefits. After underwriting is complete and cover is approved, it can prepare an individual policy document from the application details, setting out the binding terms.

Once the policy has been issued, the insurer cannot cancel or amend it without the policyholder's agreement. Careful checking and confirmation before issuance are therefore essential; issuance is not merely an administrative step that the insurer can freely reverse.

Policy Delivery 保單交付

Issuance and delivery are closely connected, but delivery concerns getting the policy document to the policyholder. The internal system should create the policyholder's records and check whether the first premium has been received; automation can handle both standard documents and variations for the individual policy.

Fast and accurate document production does not replace the duties involved in delivery. Licensed insurance intermediaries must still deliver policies in accordance with GL29 and observe the cooling-off requirements.

Policy Changes 保單更改

A policyholder may request non-financial changes, such as changing the beneficiary, assigning the policy or updating an address or personal particulars. For examination classification, assignment remains a non-financial change even though it transfers rights under the policy.

Examples of financial changes include reinstatement, changing the frequency of premium payments, changing the sum assured, taking a policy loan and surrendering the policy. These are changes that may be requested, with the arrangements governed by the applicable policy terms.

Investment-linked policies also commonly offer additional flexibility through changes to the premium amount, fund switching and premium holidays. These features are typically unavailable under conventional life policies; changing payment frequency and changing the premium amount are distinct arrangements.

Information to Policyholders 給予保單持有人的資料

An authorized insurer typically gives each investment-linked policyholder two reports. The policy statement focuses on the individual's policy transactions, performance and value; the fund performance report focuses on the fund's investment results and related changes, so the reports serve different purposes.

The volume of calculations and records makes a computer system essential in practice. Alongside ordinary insurance administration, it must handle unit funds, allocate units from premiums at the applicable allocation rates and cancel units to pay insurance and investment charges; allocation rates may vary.

Policy Statement 保險結算單

A policy statement is prepared at least annually. Where the policy anniversary is used, preparation must be within 30 days after that anniversary; the insurer may instead choose a specified date in the policy year, such as 31 December, provided the date is consistent from year to year.

The normal minimum information includes the number and value of units held at the start, bought during the period, sold during the period and held at the end, together with premiums received and charges levied during the period. This allows the policyholder to trace how premiums and charges affect the unit records.

The statement also normally includes the death benefit, net cash surrender value and any outstanding loans as at the statement date. Distinguish transactions during the reporting period from a position at the statement date: the former covers activity over time, while the latter gives a dated snapshot.

To reconcile units, add units bought to the opening holding and deduct units sold or cancelled for charges. The value of the closing holding also depends on the closing unit price, so total premiums paid are not the same as the closing policy value.

Fund Performance Report 基金業績報告

The authorized insurer prepares a fund performance report annually to explain the fund's results during the period and changes in investment policy. Its focus is the fund as a whole, rather than an individual policyholder's transactions or surrender amount.

The report commonly contains a summary of the fund's audited financial statements, investments held at the reporting date and charges levied against the fund during the year. Distinguish these fund-level charges from charges recorded in an individual policy statement.

The year's net investment return is normally compared with investment returns for the preceding five or more years, where the historical information is available. This compares past results; it is not a forecast for the next five years.

The report also commonly identifies changes since the previous report in investment objective and orientation, investment restrictions or fund management. Reading only the return figures therefore misses other important information.