TH

EINS
URANC
ECO
NTRAC
T
I
NTRO
DUC
TIO
N

Anins
ura
ncecon
tra
ctisana gr
eeme
ntb
etwe
ena
ni n
sur
anc
ec ompa
nyan
dthe
i
nd
iv
idu
aleff
ect
in
gt hei
ns
ura
ncecove
r.S
uchani
nd
iv
id
uali
sr e
ferr
edtoast
he
i
ns
ure
d.

Anins
ura
ncecont
rac
tfal
lsun
derth
egene
ralh
ead
in
go fsi
mpl
ec o
ntr
act
s.Henc
e,
i
tisa“l e
gal
lybi
ndi
ngagr
eeme
nt” madebet
weentwoormo r
ep ar
ti
es
,b y
whi
chri
ghtsareacq
ui
re
db yoneormor
et oac
to rfo
rbe
ara
nce
so nth
ep a
rtof
th
eo t
herpart
ie
s.

Gen
era
ll
y,p
ers
onswh
oe f
fec
tins
ura
ncedoitei
th
erbe
caus
et he
yar
el e
gal
l
y
re
qui
r
edtod
os oort
heycan
nota
ccommo
dat
eth
eris
kst
hems
elv
esorb
oth
.

DEFI
NITI
ON: Ac on
tra
ctofI n
sur
anc
ec a
nb edef
in
edas“a sac on
tra
ctwh e
reb
yo neper
son
,c al
l
edthe
i
nsu
rerunde
rta
kes,inretu
rnf o
rthea g
ree
dc o
nsi
de
rat
io
n,cal
l
edthepremi
um,t opaytoa n
othe
rpers
on,
cal
l
edt heAssu
redo rIns
ure
d, as umo fmoney
,o ritsequ
iva
le
nt,o ntheh ap
pen
in
go fas p
eci
fi
ed
eve
nt”. Th esp e
ci
fi
ede ve
nt musthaves o
me el
emen
to funce
rta
in
tya boutit,i.e.i t mu
stb e
un
cert
ain
tyintermsoft h
et i
metheeventhap
pen
s.Itmustha
ppe
na cc
ide
nta
ll
ya n
dn o
tp l
an
ned.

P
art
ie
stot
hec
ont
rac
tofi
ns
ura
ncea
ret
he“a
ssu
redo
rin
sur
ed” a
ndt
hei
ns
ure
rs”.

Th
eass
ure
dorins
ure
d
Th
isi
sthepa
rtythatp
aysp
remi
umt
opu
rch
asei
nd
emn
it
yfr
omt
hei
ns
ure
rs.

Th
einsu
rer
sorass
ure
rs
Th
esearedi
ff
ere
ntcla
sse
sofp
ers
onst
hatc
arr
yoni
ns
ura
nceb
usi
ne
ss.Th
eya
rei
ns
ura
ncec
omp
ani
esa
nd
un
der
wri
te
rsamon
go t
her
s.

Es
sen
ti
ale
le
men
tofa
nIn
sur
anc
eCo
ntr
act

I
ns
ura
nceco
ntr
act
smu
sts
ati
s
fyt
her
equ
ir
eme
ntso
fsi
mpl
eco
ntr
act
s. Th
eser
equ
ir
eme
ntsa
re
c
ons
id
ere
dbel
ow.
1.O
ffe
r& Ac
cep
tan
ce
2.C
ons
i
der
ati
on
3.L
ega
lca
pac
it
ytoc
ont
rac
torc
omp
ete
ncy
4.C
ons
ens
us“a
did
em”
5.L
ega
li
tyo
fob
jec
t

O
ffe
ran
dAc
cep
tan
ce

Anof
ferisac
ommun
ic
ati
ono
ft h
econt
rac
tte
rmsb
yon
epa
rtyt
oan
oth
er.Ac
cep
tan
cer
efe
rst
o
th
ele
tte
r’sagr
eeme
ntofth
oseter
ms.

I
nmo to
rinsu
ran
cecon
tra
ct,theoff
erismadebythepr
opo
serwhe
nh ecompl
et
esapro
pos
alf
orm.
Theins
ure
ra c
cept
sbyissu
in
gac overno
te.Howeve
r,whereanin
sur
er,impo
sesa
ddi
ti
on
alt
erms
th
ent heins
ure
rh asmadeac oun
teroff
erwhic
hi sas
sumedac
cept
edb yt h
epro
pos
eronh i
s
agr
eemen
tt opaythepre
miu
mb a
sedonthenewter
ms.
I
nL i
feI
ns
ura
nceano ff
ercanb ema
dee i
th
erb yth
eI n
sur
anc
e
c
omp
anyorthea p
pl
ic
ant(p
rop
ose
r)& th
ea c
cep
tan
cewil
lfol
l
ow.
e
.g.,su
bse
que
ntl
y
(
a) Anadve
rti
s
ementint h
en ews
pap
era bo
utthea va
il
ab
il
i
tyofd i
ff
ere
ntli
feIn
sur
anc
e
p
ol
ic
ie
sisaninvi
ta
ti
onf o
ra noff
er.Ifap r
opo
sermake
sanappl
i
cat
io
ntheni
twil
lbe
o
ffe
rf r
omt h
ea pp
li
ca
nta n
dt h
eI n
sur
anc
ecompan
y mayorma
yn otacc
epti
t.
(
b) Anoff
ermaybeco
nsi
de
reda
cce
pte
de i
th
erwh e
nt h
eIn
sur
anc
eco
mpa
nyi
s
sue
sth
e
p
ol
ic
yorthefi
r
stp
remi
umi
spai
dbyt h
ea pp
li
ca
nt.
Asst
atedabov
eine xampl
e(a)ift h
ec omp
anyiss
uesth
ep ol
i
cyina b
ovestate
de xamp
le
t
hentheoff
erisa c
cepte
db ytheInsu
ran
cecompa
ny& t h
ec o
ntr
acti
sc o
m p
le
ted
.I nfac
t,
i
nlif
eI n
sur
ancecon
tra
ctt hee f
fec
ti
ved a
teo fthepol
ic
yi sveryimpo
rta
nt; whe
nt he
p
remi
umispaidw i
ththea p
pl
ic
ati
onb u
tn ocon
di
ti
onalr
ece
ip
tisiss
uedthecontr
actisnot
i
nforc
eu nt
ilthepol
ic
yi sd e
li
ver
edtot heapp
li
ca
nt.T h
ep a
ymentoft h
ep re
miu
mw i
th
t
heappl
i
cat
io
nc on
sti
tut
est h
eo f
ferandthedel
i
ver
yo fpol
i
cyisit
sa c
cep
tanc
e.
F
urt
her
,ifthepr
emi
umisp ai
dw i
thth
eap
pl
ic
ati
on& co
ndi
ti
on
alrec
ei
ptisis
sue
d,the
e
ffe
cti
ved
ateofth
ec o
ntr
actde
pen
dsup
ont
hepro
vi
si
on
softhecon
di
ti
ona
lrec
ei
pt.Th
ere
a
rethr
eetyp
esofcon
di
ti
on
sa sfol
l
ows
:
(
a)
Thec o
ndi
ti
onm a
yb et h
attheInsu
ranc
eb eco
mese f
fec
ti
vea soft hedateoft he
a
ppl
i
cat
io
no rmed
ic
alexami
na
ti
onw h
ic
hev
erislat
er.Ac l
ai
ma ri
si
ngafte
rt h
isdat
ew i
llbe
p
ai
de v
eniftheapp
li
ca
ti
onpape
rshavenotrea
che
dt heco
mpet
ent/ A p
pro
vi
ngA uth
ori
ty,
p
rov
id
edo fcour
se
,t hatthef a
ctsont hea p
pl
ic
ati
on& t heresu
lt
so ft hem edi
ca
l
e
xami
nat
io
na resuc
ht hatthec o
mpan
yw ou
ldhavea c
cep
tedt h
ea ppl
i
cati
onhadt he
a
ppl
i
can
tliv
ed.
(
b)
Thes ec
ondtypeo fc o
ndi
ti
on
alrece
ip
tu se
db y ac o
mpan
yi sthea pp
rov
alfor
m, whi
ch
p
rov
id
esc ov
erag
eb egi
nn
in
gwi t
ht hedatet h
ea ppl
i
cat
ionisapp
rove
db yt h
ec o
mpa
ny.T hi
s
f
ormd oe
sn otoffertheins
ure
dp rot
ect
ionf o
rt h
ep er
io
df r
omt hedateoftheapp
li
ca
ti
on
u
nti
litisapp
rove
db yt hecompa
ny.
(
C)At hi
rdtypeofr ec
ei
ptistheunco
ndi
ti
onalbi
ndi
ngrece
ip
t.A cc
ord
in
g
t
ot hi
srecei
ptthecompan
yb i
ndstheInsu
ran
c efro
mt h
ed at
eo ft h
e
a
ppl
i
cati
onu n
ti
lt h
ep ol
ic
yisissu
edo rthea pp
li
cat
io
ni srej
ec
ted.T h
e
c
ompan
ie
su si
ngt h
istypeo fr e
cei
ptp l
ac
ea t i
me li
mi
tu su
al
lyf r
om
30t o6 0d ays.T hi
sb i
nd
in
gr ecei
ptisb ene
fi
ci
alt othep r
osp
ects
b
eca
useh ebeco
mesinsu
redfromt h
et i
met h
ea ppl
i
cati
onisfil
ed
.T h
is
f
ormo frec
ei
ptisn o
twidel
yu s
ed.
Th
eo f
ferorprop
osa
landitsacc
ept
ancemayb everb
alorinw r
it
in
g
b
utinInsu
ran
cec o
ntr
act
st h
eseareinw r
it
in
g.I nG e
ner
alIn
sur
anc
e
t
heIns
ure
do f
fer
st opur
cha
sea nin
sur
anc
efromt h
eInsu
rerandthis
o
ffe
ri sint heformo fap r
opo
salfor
ma n
dt heInsu
rerafter
s
tud
yin
gt hepro
pos
alcanei
therre
jec
tt h
ep r
opos
alora c
cep
tit.In
c
aseheaccep
tsheiss
uesac o
vernot
eo ralett
erofa cc
ept
anc
e.In
t
helatt
ere v
entthea c
cep
tan
celett
erb e
come
sac ou
nte
ro ff
ero r
p
rop
osa
l,w h
ic
hisacce
pte
do npaymen
to fpremi
umb ytheins
ure
d.

C
ons
i
der
ati
on
Th
ereisnov a
li
di
tyofac ont
rac
tift h
ereisnoc o
nsi
de
rat
io
n,w hi
ch
i
st h
ea ctorp ro
mis
eo ff
ere
db yo n
ep ar
tya nda c
cept
edbyt he
o
the
ra st h
ep ri
ceo fh i
sp ro
mis
e. InI n
sur
anc
ec o
ntr
act
st he
c
ons
id
erat
io
nist h
ep r
emiu
mt hattheIn
sur
edp ay
st ot h
eIns
ure
ra s
t
hep r
ic
eo ft hepro
m i
s
et ha
tt heIns
ure
rh asm ad
et h
ath eshal
l
i
nde
mni
fytheins
ure
d.H en
cepremi
ump ayme
ntist h
ec o
nsi
dera
tio
no n
p
artoftheins
ure
da ndthepro
m i
setoIn
demni
fyist hec o
nsi
der
ati
on
o
np artoft h
eI ns
ure
r.H o
weve
r, wh
il
et h
einsu
red
’sc ons
id
era
ti
onis
a
vai
l
abl
eattheb
egi
nn
in
gofthecon
tra
ctth
atoft h
eins
ure
rsha
llbeavai
l
abl
e
a
tsomefu
tur
edat
e.

L
ega
lCa
pac
it
ytoc
ont
rac
t(c
omp
ete
ncy
)
Ce
rta
incat
ego
ri
esofpe
rso
nsareno
tq u
al
if
ie
dtoe n
teri
nt
oinsu
ran
cecont
rac
ts.
Th
esein
cl
udeper
son
sofunso
undmi
ndandmino
rs. The
ref
ore
,c on
tra
ctsmade
bythe
mma ybes e
tasi
de
.Wi thres
pecttot h
einsu
rer
,i ft h
ec ompan
y
i
sf ormeda sp erlawso ft h
ec o
untr
y& e m p
oweredt os ol
ic
it
i
nsu
ranc
et he
nt hein
sur
eri scap
abl
eo fe nt
eri
ngint
oa na greemen
t.

Wi
thr
es
pec
ttoth
ein
sur
ed,th
epers
ons
hou
ldb
eofl
eg
ala
ge
i
.e.18year
san
dofsoundmi
nd
.
I
fac on
trac
tism adewit
hanu n
der
agetheapp
li
cat
io
nm aybeheldun
enf
orc
eabl
eifthe
mi
no
rd e
ci
destorepud
ia
teitatal a
terdat
e.InInsu
ranc
ec o
ntr
actth
einsu
rerisbou
nd
b
yt hecon
trac
ta slon
ga sth
eu n
der
agewis
hestoc o
nti
nu
eit.Ift h
em i
norrep
udi
at
es
h
iscon
tra
ct,t h
el a
ww i
l
lal
lo
wh i
m ar ef
undofa l
lp r
emi
ump ai
d.In
san
it
yo rmenta
l
i
nc
omp
ete
ncepre
cl
ude
sthemaki
ngofav a
li
dIn
sur
anc
ec o
ntr
a

C
ons
ens
us“a
did
em” (
Samemi
nd
):
Th
eu nd
ers
tan
di
ngbet
wee
nt hein
sur
er& i n
sur
edp
ers
ons
hou
ldbeofs a
meth
in
ki
ngo
r
mi
nd
.T hereas
onsf
ortaki
ngth
eI n
sur
anc
epol
ic
ysh
oul
dbeu n
der
st
and
abl
etobot
hth
e
p
art
ie
s.
Bo
thp a
rti
estothec on
tra
ctsho
ul
db eoft h
es amem i
ndandther
em ustbeconse
nt
a
ri
si
ngo u
to fcommonint
ent
io
n.B o
thpar
ti
esshou
ldb ecl
earabo
utw ha
tt h
eo t
heris
s
ayi
ng.T h
eIns
ure
rs h
oul
dk n
owwhatthei
nsu
redwantsandth
eins
ure
dshou
ldkno
ww hat
t
heinsu
rerisof
feri
ngandb o
thsho
ul
db eagre
edo nthi
s.Forexampl
e,ifanI n
sur
ed
s
eeki
ngaf i
repo
li
cyisi
ssu
edab u
rgl
arypo
li
cyther
eisn oco
nse
ntari
si
ngoutofcommon
i
nt
ent
io
n.
v
ehi
cl
efo
rco
mme
rci
alp
urp
ose
s,t
heu
nde
rwr
i
termu
stn
ota
ssu
met
hatt
hev
ehi
cl
eist
obeu
sedf
or
p
ri
vat
ean
dso
ci
alp
urp
ose
s.

L
ega
li
tyo
fob
jec
t
Tobeav al
id
,ac ont
rac
tm us
tb eforalega
lpu
rpo
se& n o
tc o
ntr
aryt
op u
bl
icpol
ic
y.
I
ns
ura
ncei
sl e
galbu
si
nes
st h
ere
for
eitcann
otbeil
l
egalonthep a
rtoftheins
ure
r.A n
i
nd
iv
id
ualcantaketheli
feIns
ura
nceofhisownl
i
feo rhi
s/herfami
l
ym e
mber
s.I fan
i
nd
iv
id
ualta
kesap o
li
cyont h
elif
eo fanun
kno
wnper
soni
twil
lnotbeaval
idcon
tra
cta s
i
twil
lamo
unttogambl
i
ng.

An
oth
erexa
mpl
eistha
tt hecont
rac
twi l
lnotbeleg
alifithasa n
ythi
ngt
od owit
hsto
le
n
p
rop
ert
yorifi
tisinres
pec
to fanyunl
awfula
cti
vi
ty.HenceI
ns
ura
nceofst
ol
engoo
dsorth
e
I
ns
ura
nceofsmugg
li
ngo pe
rat
io
ns hal
ln o
ts ta
nds cr
uti
nyinthec o
urtofla
wa ndsuc
h
c
ont
rac
tswi
llb
evoi
d.

C
ont
rac
tsmu
stn
otb
eil
l
ega
l,t
hati
s
,th
eya
rei
nv
ali
dift
heya
ref
orb
id
denb
yst
atu
teo
rar
eag
ain
st
wh
ati
sca
ll
edp
ubl
i
cpo
li
cy.

NoMi
s
tak
es

The
remu s
tn o
tb eami s
takeinmakin
gt hecon
tra
ct.Ifoneo rbot
ho fthe
pa
rti
estoac ont
rac
tmakesami s
tak
ei nthepro
ces
so fmaki
ngtheagre
eme
nt,
th
ee f
fectofsuchamis
tak
ed e
pen
dsont h
enatur
eoft hee
rr
or.Ami s
takemay
makethecon
tra
ctin
val
i
dwherethe
reisnoagre
emen
to v
erth
ec o
ntr
act
.
NoMi
sr
epr
ese
nta
ti
ono
rFr
aud

Arepr
ese
nta
tioni
saf ac
tualst
ate
mentmadebyo nepar
tyt otheothe
rwh i
ch
i
sin
tend
eda n
ds ucc
eed
sinp er
sua
di
ngthelatt
ertoe n
teri
ntothec o
ntr
act
.I f
s
ucha s t
atemen
ti sf a
ls
ei tisa mi s
rep
res
ent
ati
on
.I f mi
sre
pre
sen
tat
io
ni s
f
rau
dul
en
t,t hein
sur
edpartycan:
C
arr
yo nwiththecont
rac
t;o r
H
ec ancl
ai
md amage
sifh ehassuf
fer
edaloss
,a nd
H
ec ane it
herr e
fusetop e
rfo
rmt hea g
ree
mento rres
cin
dt hecont
rac
t.
C
ONCLUS
ION
I
nac o
ntr
actofi
nsu
ran
ce,thei
ns
ure
ran
dth
einsu
redmu
sta
gre
eo nde
tai
l
ssuc
ha sthepr
i
ce,
t
heeff
ectandna
tur
eofc o
vera
ndsoon
.Thes
et e
rmsa
reu
sua
ll
ysetoutbythein
sur
eri
na
d
ocu
men
tc a
ll
edth
epol
ic
y.

C
onsi
de
rat
io
nc o
nsi
st
so fthein
sur
er
’sp
romi
s
ingt
oco
mpe
nsa
tet
hei
ns
ure
dfo
ral
os
san
dth
e
i
ns
ure
dp a
yin
gt h
ei
rp r
emi
um.

Al
lpa
rti
estoac on
tra
ctmusth
avele
galca
pac
it
ie
st oen
teri
ntoag
ree
men
tandth
eremus
tbe
anag
ree
mentofmind.Als
o,th
ec o
ntr
actmus
tn otbeil
l
ega
l,itmus
thavenomi
sta
kesan
d
nomi
sr
epr
ese
nta
ti
onorfra
ud.

Tut
ori
alque
sti
on
s
1.Writ
eshor
tn o
teswi
the
xamp
le
sont
hef
ol
lo
win
g:

- O
ffe
randacc
ept
anc
einin
sur
anc
econ
tra
ct
- C
ons
i
der
ati
oni
nins
ura
ncec
ont
rac
t.

2.Gi
vet h
ed e
fi
ni
ti
onofth
ec o
ntr
actofin
sur
anc
ewithexamp
le
s.
3.“C on
sen
susadI
de
m”,i saL at
inexp
res
si
on
.Ex pl
ai
nthemeani
ngwit
ha nexa
mpl
e.
4.Li
stf ouro f thefea
tur
ese ss
ent
ia
lt o makea nyc on
tra
ctl e
gal
ly
en
for
ceab
le
5.Whatisthei
mpor
tan
ceo
finsu
rab
lein
ter
es
tinthecon
tra
ctofins
ura
nce
?
6.Whoarethepar
ti
estoth
ec o
ntr
actofin
sur
anc
e?

I
NSU
RANC
EMARKET
Def
in
it
io
no fmar
ket
Th
isisame et
in
gp l
aceforbuye
rsands e
ll
er
sf o
rthep u
rpo
seo fexch
angi
nggood
sa ndser
vi
cefor
mon
ey. Thi
sdefi
ni
ti
onho
wever
,h ol
dsfortangi
bl
egood
swh er
et hemaxim “letthebuyerbewa
re
”(cave
atempt
or)isap
pl
ic
abl
e.Inin
sur
anc
e,ma r
ketcanbed e
fi
nedasame cha
ni
smbywh i
chbuyer
s
an
ds el
l
ersofin
sur
ancese
rvi
ce
sc o
met oge
the
rr a
the
rt h
anap h
ysi
call
ocat
io
n. Th
er ea
sonforthi
s
di
ff
ere
nceinde
fin
it
io
nis,beca
useinthein
sur
anc
ema r
ketther
eisn osi
ngl
ep l
ac
ewh e
rethebuyer
s,
s
el
le
rsandmiddl
emenmeett otran
sactins
uran
ce. Th
eo n
lyexc
ept
iontot
hi
sg en
era
lpr
in
ci
pl
eisth
e
L
lo
yd’sma r
ket. Th
eL lo
yd’sma rk
eti sama rke
to fin
di
vi
dua
la n
dco
rpo
rat
e“me mber
s” wh
o
u
nde
rwri
teri
sko nas har
ed,b u
tc ompe
tit
iv
eb as
is
.Th ekeycompo
nen
tso
fL l
oyd’smarke
tin
cl
ud
e
t
hefol
lo
win
g:
i. I
ndi
vi
dualorcor
por
atemembers(orthe
irna
mes
)
ii
. Memberagen
ts
ii
i
. Synd
ic
ates
iv. Ma nagi
ngagen
ts
v. br
okers

Th
ema j
orp l
aye
rsinthein
sur
anc
ema
rke
tar
e:
I
ns
ura
ncecompan
ie
s
Re
in
sur
anc
ec ompa
ni
es
I
ns
ura
ncein
terme
di
ari
es
Bu
yersofins
ura
ncepro
duc
ts

I
nsur
anceCompani
es/sel
l
ers– Insur
ancecompani
esareris
kt akers
.Th eya r
ea l
sok no
wna sthes e
ll
er
s
ofi n
sur
ances er
vi
ces. Theya c
cep
tr i
skst ra
nsfe
rre
dt ot hemb yi nd
ivi
dua
ls
,c o
rpor
ateb od
ie
s,
gove
rnmen
ta ndt h
eiragenc
ies
/corp
orati
onsetc.I n
sur
ancecompani
esarer eq
uir
edt ober egi
s
tere
db y
th
eNa ti
onalIn
sur
anceC o
mmiss
ion
.Th er equ
ire
mentsforregi
stra
tio
na r
ec ont
ain
edint h
eI n
sur
anceAct
2003.
Someinsu
rer
si n
cl
ude;L l
oyd’so r
di
narylif
ea n
dg ene
ralin
suran
cec o
mpani
es,indi
vi
dua
llif
eAs su
ranc
e
Compan
ie
s,t hef ed
eral
,s tat
es, l oca
lg over
nmenta n
dt hei
ra gen
ci
es,c ompan
ie
s. Ther
ewe re56
re
g i
s
tere
dinsur
anc
ec ompa
nie
sa sat2009
(a)Li
feAs sur
anceb u
si
nes
s:t h
esea reinsur
anc
ec ompani
est h
ata relice
nse
dt ou nde
rwri
teli
fe
ass
uran
ceb us
in
ess
es,incl
udi
ngp ens
io
ns.F orregi
str
ati
on,e ac
hc ompa
nyi sexpec
tedtop ayN
8bi
li
onrevi
ewedonMa y20,20 1 9a nddepo
si
titwitht heCentr
alBanko fNiger
i
a.
(b)Gener
alinsur
anceb us
ine
ss( Non-Li
fe As s
uran
cec ompani
es
)t hesea rec o
mpani
est hata r
e
est
abl
is
hedb ylawt ou n
der
wri
ten on
-l i
feins
ura
ncebusi
ness
essuchasf i
re,theft
,g oods–in-
tra
nsi
t,c ash
-in-tra
nsi
t, motorma ri
nea vi
ati
oninsu
rancetome n
ti
onb utaf e
w. Th elaw
expe
ctsshare
-hol
derstod ep
osi
tN10b i
ll
i
onwiththeC entr
alban
ko fNi g
eri
a.
(c)Compos
it
eI nsu
ran
ceb usi
ness
:t he
sec ompani
esu n
derwri
teb ot
hl i
fea n
dn on-li
feinsu
ranc
e
bus
ine
sse
s. Theyu n
derwri
tea l
lc l
as
seso fins
ura
nce.S uchcompani
esarer e
gi
ster
eda ft
ert h
e
migh
th av
ed epo
si
tedas umo f18b il
l
i
onwitht h
ec e
ntralBankofNigeri
a.Th e
yi n
cl
ude:
- Go ver
nmentIns
uran
cec o
mpani
es( Ief e
dera
la n
ds t
a t
e- o wnedcompani
es
)e.gNI CON
- P ri
vatein
dig
enou
sC ompan
ies
,L e
adwayAs s
uran
ceC ompan
yL i
mite
d
 (
d)Re
in
sur
anc
ebu
si
ne
ss:Th
eya
ree
xpe
cte
dtod
epo
si
t20b
il
l
io
nwi
tht
hec
ent
ralb
anko
fNi
ge
ri
a.

Re–In
sur
anc
e Compani
es – As indi
vi
dua
lspur
chas
einsu
ranc
ef rom ins
ura
ncec ompan
ie
s,i ns
ura
nce
co
mpani
esals
op u
rch
asein
sur
ancefro
m Re–in
sur
anc
ec o
mpan
ie
s.C ompan
ie
st ha
ta cc
e p
tinsur
anc
ef ro
m
i
ns
uranc
ec o
mpani
esarecal
l
edr e–i
ns
ura
ncecomp
ani
es
. Re–in
sur
anc
ei sther
efor
eaf ormo fins
ura
nce
wher
ebyaninsu
ran
cecompa
nyc antr
ansf
ertoanot
heri
nsu
reral
lorp ar
to fitsli
ab
il
it
ie
sinr es
pec
to f
cl
ai
msa r
is
in
gu nd
erthecont
ract
sofi n
sur
anc
et h
atitwri
tes.Reins
ura
nceisa l
s
ok n
owna sins
ura
nce
fo
rinsu
rer
so rst
oplos
sins
ura
nce
.

I
nsu
ranceInt
ermedi
ar
ie
s
Li
kea nyc ommodi
tyo rservi
ce,i ns
uranc
et r
ans
acti
oninvol
vesint
ermedi
ari
esthrou
ghwh ic
hi n
sur
anc
e
se
rvi
cespasstot h
einsu
ri
ngp u
bli
c.
The
rea retwoma i
nc a
tegor
i
eso fi ns
uranceint
ermedi
ar
ies
. Theya reinsur
anc
eb rok
ersa n
di n
sur
anc
e
age
nts.
i
. Ins
ura
nceBroker
s- Th eya r
ep rofe
ssi
on
alsexper
tswhoc ans u
ea ndbes ue
d.Th eycanbe
in
div
id
ual
so rprof
ess
ionalbod
ies.A b rok
erisa ninte
rmedi
aryb et
weent h
ei n
sur
erandt h
e
in
sur
ed.Th emainfuncti
ono fab r
okeristoa ctast heag e
nto ftheins
ured(th
ep er
son
taki
nga nins
ura
ncep ol
ic
y)i no bt
ain
in
gi ns
uran
cec o
verf o
rh isri
ska nda sagentoft h
e
in
sur
er( i
nsu
ran
cec omp an
y)i nc o
ll
ec
tin
gp r
emiu
m. Insur
anceb rok
ersr ec
ei
veb roke
rag
e
(co
mmiss
i
on)fromthei ns
uran
cec ompan
ie
swi t
hwh omtheyp l
aceb u
si
nes
s.
i
i
. Ins
ura
nceAg e
nts– Ana gentisap e
rso
nwh oa c
tso nbehal
fo fanoth
er.Ins
uran
cea g
ents
acta sagent
so finsura
ncec ompan
ie
si no b
tai
ni
ngb us
in
ess
esf romp o
ten
ti
alp o
li
cyhold
ers
.
Thema i
nd u
tyo fa na ge
nti stos ol
i
ci
tr i
ska n
dc ol
l
ectp r
emiumonb eh
al
fo ft h
ep r
in
ci
pal
(i
nsu
rer
). Ana gentr ece
ive
sc o
mmiss
iona n
do the
rr emune
rati
onf ro
mi nsu
rer
s.I n
sur
ance
agent
sa rerequi
re
dt ob el i
cens
edb yt heNa ti
ona
lI n
suran
ceC ommis
si
on. Themini
mum
requ
ir
emen
tsf o
rli
cens
inginsu
rancea ge
ntsareconta
in
edint heIns
uran
ceAc t2003.
The
rea r
et hr
eec l
as
sesofins
uranceagents
:
TheFu l
l
–TimeAg ent
:Af u
ll
–timea genta ct
sf oronl
yo neo rmorei n
sur
ancecompan
ies
.Al s
o,t h
e
age
ntmi gh
tb ea ninde
pen
denta gentora nempl
oyeeo fa nin
sura
ncec ompa
ny. Thef u
ll
–ti
mea gent
de
votesallhi
st i
met o
wardsthes el
li
ngo finsu
ranc
ep ro
duct
s.H eisr emune
rate
d--- i nthecaseof
ane mpl
oyee
,b y mont
hl
ya ll
owancep l
usc ommis
sio
na ndi nthec aseo fa ni n
dep
ende
nta gen
tb y
co
mmiss
io
no nl
yo nthebusi
nes
sp r
o d
uced.
TheP a
rt-TimeAg e
nt:Ap ar
t–t i
mea gen
td oesotherthi
ngsapar
tf ro
ms e
ll
i
nginsu
ranc
ep r
oduc
ts.He
mi
ghta ctforo n
eo rmo r
einsur
a n
cec ompani
es
.A p a
rt–ti
mea gen
te arn
sc ommi
ssi
ononl
yo nb us
in
ess
i
ntr
oduc
ed.
TheStaf
fAg e
nt: Th
es ta
ffage
ntisanemp
lo
yeeo
fa nin
sur
anc
ec omp
any
.H ese
ll
sins
ura
nce
pr
odu
ctsonb
ehal
fofo n
lyhise
mpl
oye
r.I
nre
tur
n,heea
rnsacommi
ss
io
no nbus
in
ess
esi
ntr
odu
cedin
ad
di
ti
ontohi
smonth
lysal
ar
y

Buyer
so fIn
sur
anceP r
oduc
ts
Buyer
sofinsur
anc
ep ro
duct
sa r
e:
i. I
ndi
vi
dual
s– Th ed e
mandf o
rinsura
nceb yindi
vi
dual
sd ep
end
so nt h
ei
rf in
anc
ialpos
it
ion
.As
apers
on’si nc
omer i
se
s,h ecana ffo
rdtob uyt hefin
anci
alsec
uri
typrovi
dedbyi n
sura
nce.
Ar i
seinap er
son’si n
comee n
able
st hepers
ont oa c
qui
remo r
ep ro
per
tys uc
ha s;ac a
r,
ahouseandhouse
hol
dg o
ods,wh i
chwil
lint ur
nc re
atet h
en ee
df orin
sura
nceprote
cti
on.
ii
. Bus
in
essO rga
niz
ati
ons
–Thed e
ma n
df o
ri ns
uranc
eb yb us
in
essb uye
rsi sa f unc
tio
no f
ec
ono
micd evel
op
ment. As a ne con
omy g ro
ws, mo rec ap
it
al- i n
t e
nsi
ve method
so f
pr
odu
cti
ont e
ndtob eemploy
ed.Th i
swi l
linturninc
reas
et hedemandforp r
oper
tyinsu
ran
ce
fo
rt hep r
ote
cti
ono fprop
ertya ndli
abi
li
tyinsur
ancet ocompens
atee mpl
oye
es,c ons
umer
s
an
dt hi
rdpart
ie
sf orin
jur
yo rd amagetop ro
pert
yr e
sul
ti
ngfromt hea c
ti
vi
ti
eso fb u
si
nes
s
or
gani
zat
io
ns.
ii
i
. C ha
ri
tie
s,C lu
bsa ndotherO r
ganiz
ati
ons
--Th i
st hi
rdg rou
po finsur
ancebuyerstendsto
de
mandf orins
ura
ncewh e
nt hei
ra cti
vi
ti
esa ndincomeincr
ease
s. Ani nc
reas
ei nacti
vit
ie
s
i
ncr
eas
est heneedsforg ro
upp ers
onalacci
de
ntf ort heprote
cti
ono ft h
ei
rme mbersand
pr
ope
rtyins
uran
cef o
rt h
ep ro
tecti
onoft h
eirasse
ts.
iv
. Go ve
rnment
sa n
dGo ver
nmentAg enc
ie
s/Corpor
ati
ons
Gover
nmen
ts,F e
deral
,S ta
tea ndLocalcounc
il
sa r
eb i
gt imeb uyer
so fins
uran
cep ro
ducts
.Th en e
ed
fo
ri n
sur
anc
eb yt he
sebuyer
si smai
nl
yt op rot
ectg o
vern
me n
ts’ a s
setsmovabl
eo rimmovab
le
.I nthe
ca
seo fagenc
ie
s/c or
pora
ti
ons
,t heneedf o
ri n
sur
anceprotec
ti
oniso bv
iou
sd uetot hefactthatsome
oft h
ei
ra c
ti
vi
tie
sa rehazar
dous
.F orinst
ance,c a
nNNP Cd owi tho
utinsu
ri
ngi t
sa ss
ets
?C a
na ir
li
ne
s
af
f o
rdnottoinsur
et he
irai
rcra
ft?Th eanswerisd e
fi
nit
el
y“n o
” a sn oairc
raf
tc anb eall
owedto
fl
yi nth
ea i
rspaceofa no
thercou
ntr
ywi th
outinsur
anceprot
ecti
on.

Lo
ssAdj
ust
ers
Th
esear
eprof
ess
i
ona
lswh
osefun
cti
on
sin
cl
ude
:
a
.F i
nd
in
go u
tt h
egen
uin
ene
ssofag i
ve
nlo
sst
hatr
esu
lt
sin
toc
la
im

b
. De
ter
min
in
gth
equ
ant
umo
fth
elo
ss

c
. Maki
ngre
comme
nda
ti
on
sconc
ern
in
gth
emo d
eo fs
ett
le
mentoft h
elo
sstot
hein
sur
er
sther
eby
ad
jus
ti
ngthecl
ai
mo rlo
ss.Theyc
arr
yo utth
ei
rinve
sti
gat
io
nswi
tho
utf
earorfav
ourand
 i
nd
epe
nde
ntofth
eins
ure
rs,wh
ate
verr
eco
mme
nda
ti
on
sth
eyma
ke,a
rel
eg
ala
ndc
anb
eus
ed
i
nthecou
rtofl
aw.

Tu
tori
alq
uest
io
ns
1.Whoa r
et h
osetha
tp a
rti
ci
pat
einins
uran
cemarke
t?
2.Whatd oyouund
ers
tan
db yinte
rmed
ia
ri
es?
3.Lossadj
us
ter
sa r
ep r
ofe
ssi
on
alinin
sur
anc
eb u
si
ne
ss.Di
s
cus
s
4.Whoa r
et h
eb u
yersofin
sur
ancepro
duc
ts?
5.Howma nytype
so fagen
tsdoweh aveinin
sur
anc
ebu
si
ne
ss?