Name: Tinyeko Mohlanga
Student Number: 63749467
Identity Number: 9810300106088
Module: ISR 3702
ANSWERS
QUESTION 1
1.1)
1.2)
1.3)
1.4)
1.5)
1.6)
1.7)
1.8)
1.9)
1.10)
1.11)
1.12)
1.13)
1.14)
1.15)
1.16)
1.17)
1.18)
1.19)
1.20)
D
C
C
B
B
D
A
C
D
B
C
B
D
C
D
C
B
A
A
A
QUESTION 2
2.1) Ado and Zila are considering a policy termed term life insurance, which offers coverage
for a certain amount of time, usually 10, 20, or 30 years. Because it only pays out if the
insured passes away during the term, this form of insurance is more affordable than Whole
Life Insurance.
2.2) Health history and lifestyle.
2.3) Zenzile’s life insurance policy is a retirement annuity, which is a long-term insurance
policy that helps people save for retirement. Premiums are often paid to the insurance
company.
2.4) Zenzile's life insurance policy is underwritten as a whole life insurance policy with a
guaranteed withdrawal benefit. Zenzile's health, age, and lifestyle will be evaluated by the
insurer, and a medical exam may be ordered. Zenzile's risk rating, premium amount, and
withdrawal schedule will be determined by them.
2.5) Short-term disability insurance is a form of life insurance that offers coverage for a
certain length of time, often six months to two years. It is intended to replace a portion of
your income if you are unable to work due to a disability, such as an illness or injury.
2.6) The perils covered by Muvhango's life policy are any disabilities that prevent them from
working, such as: Accidents, Illnesses and Injuries.
2.7) Gender discrimination is the illegal practice of treating someone differently because of
their gender. Insurers have access to a lot of actuarial data, which demonstrates that men
and women have varying life expectancies. Because of this, insurance companies are
permitted to charge women greater rates than males. The difference in rates, however, must
be based on good actuarial facts. Insurers cannot just charge women greater premiums
because they are female.
2.8) The life insurance sector is highly regulated, and insurance firms must defend their price
decisions. This makes it harder for insurance firms to engage in open racial discrimination.
However, insurance firms can discriminate in more subtle ways, such as by exploiting risk
indicators that are associated with race. An insurance firm, for example, may charge greater
premiums to customers who reside in specific townships or work in certain jobs. It is crucial
to note that correlation does not imply causality. Just because a characteristic is associated
with race does not imply that it is the cause of racial inequalities in life insurance prices.
QUESTION 3
3.1) Interview the claimant. Examine the public records (If the insured was a South African
citizen or resident, they may have a record in the government's vital statistics database).
Make use of social media. (They can also use social media to reach out to the insured's
friends and relatives for assistance in identifying the insured) .Make contact with any
witnesses.(If there were witnesses to the fire, they might be able to reveal the identity of
the insured) .Make use of DNA testing. If all other means fail to identify the insured. DNA
testing can be used to compare the insured's DNA to that of their relatives or to DNA
gathered from the fire scene.
3.2) Request any more information from the claimant. Verify the claim against the insurer's
database. Contact the policy's recipient.
3.3) Verify the claimants' identification. Verify the claimants' relationship to the dead. Check
to see if the life insurance coverage is still active.
3.4) Verify the identification of the recipients. Find out if the recipients are eligible for
benefits. Pay the right beneficiaries the benefits. The benefits can be paid out once the
claims administrator has discovered and confirmed the beneficiaries' identities.
3.5) If the insured were in the country illegally, they may not have had access to the same
level of healthcare as legal residents. This could make it more difficult for the claims
administrator to verify the cause of death and the amount of the death benefit. The claims
administrator may also need to consider the needs of the insured's dependents. If the
insured's progeny is also unlawfully present in the nation, they may have problems collecting
the death benefit if it is awarded to them. The claims administrator must also examine the
possibility of fraud. If the insured was unlawfully present in the nation, someone may
attempt to receive the death benefit even if they are not the eligible beneficiary.
3.6) Yes, there are also ethical considerations to consider. The claims administrator may feel
that it is wrong to deny claims to people who have lost loved ones in a tragedy, even if those
people were occupying the building illegally.
3.7) An ex-gratia claim is a payment made by an organization to an individual or business
without admitting liability.It is a voluntary payment that is not required by law.Ex-gratia
claims are often made in cases where the organization believes that the individual or
business has suffered a hardship or injustice, even though the organization is not legally
responsible for what happened.Ex-gratia claims can be made in a variety of contexts,
including: Insurance: An insurance company might make an ex-gratia payment to a
policyholder who has suffered a loss that is not covered by their policy.Government: A
government agency might make an ex-gratia payment to a citizen who has been injured or
harmed by the government's actions, even if the government is not legally responsible for
what happened.
QUESTION 4
4.1) If the policyholder commits suicide after the suicide clause has expired, many life
insurance plans will pay out the entire death benefit. Some life insurance companies also
give riders that provide additional coverage for suicide deaths. It should be noted that the
terms and conditions of life insurance plans differ from one business to the next. Aside from
the suicide clause, life insurance contracts may contain other terms that influence coverage
for suicide death. You should also push the community to provide suicide prevention
programs and resources to students under the age of 14.
4.2) Individual Life Insurance Policies, Group Life Insurance Policies, Term Life Insurance
Policies, Whole Life Insurance Policies
4.3) The Children's Act (CJA) defines a child as someone under 18 years old, with criminal
capacity limited to those aged 10-18. Medical consent is granted to a child under 12 years
old for medical treatment or surgery, unless proven by the state.
4.4) There is no suicide exclusion in the policy.After the contestable period has ended, the
suicide happens.At the moment of death, the policyholder is mentally ill.Even though the
policy contains a suicide exclusion, if the policyholder is mentally ill at the time of death, the
insurance company may be ready to pay out on a suicide claim.