Insurance questions PART-3

Who is an Actuary?

• A person with expertise in the fields of economics, statistics and mathematics, who helps in risk assessment and estimation of premiums etc for an insurance business, is called an actuary.

• A professional statistician working in an insurance company is an Actuary. 

What is an Actuarial Science?

• Actuarial science is the discipline that applies mathematical and statistical methods to assess risk in insurance, finance and other industries and professions.

• Actuarial science includes a number of interrelated subjects, including probability, mathematics, statistics, finance, economics, financial economics, and computer programming.

Who are Third Party Administrators?

• Third Party Administrators or TPAs are a vital link between health insurance companies, policyholders and health care providers.

• The TPAs maintain databases of policy holders and issue them identity cards with unique identification numbers and handle all the post policy issues including claim settlements. 

What is Mortality Charge?

• Mortality Charge is the amount charged every year by the insurer to provide the life cover to the policyholder on the life of the Life Insured. It is also called as Cost of Insurance.

What is Maturity Date?

• The date on which the principal amount of a note, draft, acceptance bond or other debt instrument becomes due and is repaid to the investor and interest payments stop.
• The maturity date tells you when you will get your principal back and for how long you will receive interest payments.