Savings Bank Life Insurance
Elizur wright called the "father of modern life insurance" because its activities on behalf of the holder of a life insurance policy, suggested in 1904 that bank-held savings bank life insurance at lower costs. But recently after an investigation of Armstrong in 1905, Elizur wright suggested getting serious attention. Two discovery Committee Armstrong apparently very evocative Louis d. Brandeis concern at that time was a judge on the Supreme Court of Massachusetts: many life insurance companies seem to put the interests of policyholders in the bottom of the list of their attention in the exercise of the company; life insurance and premium downloads (so-called industrial life insurance) seems to be relatively expensive. Brandeis who will be the judge of the Supreme Court held that the United States life insurance company indeed implement the two businesses i.e. indemnify beneficiary (stakeholders) from those who die prematurely (prematurely), and investing large amounts of money in a relatively safe investment channels. Brandeis argued that the joint Massachusetts savings bank already turns out is a safe investment channels for the money saver. So now live ask the bank that opened the life insurance section and continue with the first part of the life insurance business.
In 1907, Massachusetts ratified a law that allowed banks going to the insurance and require that funds the insurance section is separated from the funds of the bank. Insurance funds are not responsible for something of the difficulties that may arise in the banking section. So did banking funds is not responsible for obligations of the insurance part of something.
Firstly, the policy is limited to Rp 33000.00 respectively. This amount
is gradually offered up to Rp 330,000.00 although prevention policy
should hold policy Rp 330,000.00 respectively in some banks, if not more
Rp. 2,800,000.00 in all banks. However, all this insurance can only be purchased through a bank acting as agent for other banks. These limits do not apply to insurance group Annuited restricted IDR 12500.00 annual income of every bank.
To lower the cost of insurance sales agents prohibited usage then. Although the system of savings banks don't use solicitors (search subscriptions) or agents, but he's no execute advertising programs and extensive publicity through the Board of the Savings Bank life insurance supported together. Requests can be accepted by the banks, employers, credit unions, and other lawful channels and each of these entities unless the employer, is entitled to hold the little wages billing. Insurance can only be provided to residents of Massachusetts or those work remain in Massachusetts.
The calculation of the tariffs, health screening, and the bearing of entirely in diverting from the control of the participant banks and carried out by the savings bank life insurance Division is a part of State Government. However, this service charge paid by the banks. General insurance guarantee fund is a special fund to which each bank that has life insurance section should give donations, used for leveling the claims of death among banks so that the distribution of risks broader than can be achieved by something the bank individually.
In the know 1938 authorized life insurance savings bank in New York, and in 1941 in Connecticut.
The maximum amount of life insurance that can be purchased either from
each bank as well as from all bank savings is $ 1,875,000.00 in New York
and Rp 330,000.00 Connecticut. Savings bank life insurance expansion to other States has been many times in the proposed but not yet succeeded Sir-passed on the invitation.
Special contribution from joint insurance
A significant contribution from property insurance with on society is the ability it offers insurance premium that is lower than the insurance premiums the possession. This is largely made possible by lower operations costs. It can often pay a lower Commission than a Commission paid by the insurance company. Agents contend that the insurance premiums lower joint makes them easier to sell them so that their total earnings greater although any commissions for any sales lower.
Many insurance company property along work through representatives who are hired and not through agents. Cost savings to direct sales is obtained mainly at the time of the renewal of the policy. An insurance company that uses a paid representative reported that the cost of the renewal policy 90% lower than wear agents. Insurance companies that use agents in general have to pay full commissions for any updates to the policy, whereas with representatives who are hired, the renewal of the policy simply by post only with minimum cost.
Sometimes the persero dividend expressed as a cause of the high premiums for the insurance company. On joint insurance, no the persero who will receive dividends.
