How the insurance reinstate fees calculated Insurance Tips

Category: Insurance tips Release Date: 2006-08-01

Case: July 8, 1998, Mr. Qu old classmate Mr. Shen recommendation, to purchase a whole life, Paul by 10 million yuan, 2570 yuan annual premium. The end of 2003, Mr. Qu move new homes, the forgot to notify the insurance agent, it has failed to receive the insurance company by mail in 2004 and 2005 payment notice. Mr. Qu is also to pay premium for this incident forgotten.

In May of this year, Mr. Qu met at a gathering of old classmates Mr. Shen, talking about share of insurance before an remember two years ago and last year, unpaid insurance premiums, would the policies have already had a 2-month grace period, from September 2004 8, since the state entered the suspension. Mr. Qu May 8 application "reinstate." His insurance company agreed to reinstate the admissibility of the application, but the company told him the first medical examination required.

Physical examination, Mr. Qu was diagnosed high blood pressure. Insurance companies under normal physical examination results and Mr. Qu control of the disease and to make a "60 yuan per year fee increases" and reinstate the decision. Mr. Qu had a question: Why would the last two months of overdue premiums have also been added fees?

Analysis: Mr. Qu addresses have changed, the absence of timely notification insurance company, which missed the time for payment of renewal premium, but fortunately he was the effectiveness of the insurance company after the termination of the contract provided for 2 years, during which re-made effective application. According to the results of physical examination, the insurance company made an "annual fees and charges 60 yuan," the complex effect decision, which actually includes two aspects.

First, according to an increased risk of the extent of the resumption of payment after the insured to pay the renewal premium each year will increase based on premiums in the original part of the fee increases. For this case means that, from July 8, 2006 onwards, Mr. Qu annual premium will be paid 2570 yuan in the original premium increased by 60 yuan on the basis of fee increases, so he paid the annual premium from the original 2570 Yuan has been adjusted to 2630 yuan.

In addition, the "reinstate the fee increases," also means that complex effect on the date of filing the application in the future to reinstate the most recent one between the payment of premiums, but also the need to increase fees and charges section. Therefore, the case of Mr. Qu May 8, 2006 (re-effective filing date) to July 8, 2006 (the most recent payment date) between the 2 months of premiums must also increase in proportion to fee. According to calculations, the fee increases during this period should be 60 per × 2 months / 12 months = 10 per hour.

According to "reinstate the fee increases," provides that Mr. Qu addition to 5140 yuan in back premiums and the two effects according to the date of re-borrowing rate to calculate the interest during the period of suspension efficiency, but also need to pay 10 yuan fee part.