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‡ Many firms are using a correlation matrix approach to
aggregate the results from individual stress tests.

‡ One significant drawback of this though is that it fails to

explore the interaction between risks occurring at the
same time within the business model, which can lead to
a material understatement (or possible overstatement) of
the capital required.

‡ At the FSA we call this the ë   


‡ Firms need to recognise the potential limitations of the

correlation matrix approach, but clearly our requirement
to use scenario tests is one way to mitigate this.

‡ In addition, the correlation matrix approach itself can be
difficult because for most correlations there is limited
data for stressed conditions.

‡ Despite this firms need to make some allowance for

stress and consider carefully how resilient or sensitive
their capital result is to changes in the stressed

‡ Sensitivity tests are also important to identify which

correlation assumptions are most material.

‡ Greater management focus on agreeing these

assumptions and considering the impact of non-linearity
this should give firms and ourselves more confidence in
the results coming out of these models
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‡ Car Insurance 101

‡ Your First Car Insurance Policy
‡ Car Insurance FAQ's
‡ State Requirements
‡ Gap Insurance for New Cars


‡ Owning a home takes a lot of ‡Taking the time to understand

effort and responsibility, but
unfortunately, a lot of home your home owners insurance
owners are not protecting their will get you on the path to
home with enough home making sure your investment is
owners insurance.

‡ Home Owners Insurance 101

‡ Understanding Your Home Owners Insurance Policy
‡ Home Owners Insurance FAQ's
‡ Home Owners Riders
‡ Water Damage Coverages

‡ Choosing life insurance and annuities for retirement
investments can be a complicated task, but because of the
many choices, they should be thoroughly researched.
‡ Here you can find life insurance and annuity policy
information, articles, ways to estimate need, and
investment information along with news and more.

‡ Life Insurance 101

‡ What You Need to Know About Universal
Life Insurance
‡ Term Life Insurance: A Low Cost Life
Insurance Policy Option
‡ Whole Life Insurance Choices
‡ Is a Variable or Fixed Annuity Right for

‡ Your health insurance information source. Covering various types of
health insurance from self-insured to PPO's along with dental
insurance. Learn here how you can find the best policy to fit your
specific health needs.

‡ Health Insurance 101

‡ Understanding Your Health Insurance and Medical
Insurance Plans
‡ What Does that Mean? Understanding Health Insurance
‡ When To Continue COBRA Insurance Coverage
‡ Top 10 Ways to Get Affordable Health Insurance With No
Job or Little Money
‡ Choices in Dental Insurance Plans
‡ Getting Coverage for Braces and Orthodontic Dental Care


‡ Is you property covered? If you are still trying to answer
that question then it probably is not.
‡ Learn here about how you can get coverage for those
special and expensive items that may be lacking
coverage from your current insurance policies.
‡ Keeping Track of Your Personal Property with a Property
Insurance Inventory List
‡ Valuable Items Coverage
‡ 4 Steps to Protecting Your Fine Jewelry
‡ Is Your Computer Really Covered?
‡ Does Your Wedding Plan Include Insurance?

‡ Did you know that pet insurance is one of the fastest
growing insurance fields?
‡ Now, more than ever, pets are a part of the family...
living with us, eating with us, and going to work with us!
In addition, they need regular preventative care from their
doctor too so why not save by checking out a pet
insurance policy?

‡ Choosing the Right Pet Health Insurance Company

‡ The Top 10 Questions to Ask When Buying Pet
‡ Dangerous Dog Breed? You May Be Refused for

‡ Have you thought about how you will pay your bills if
you get hurt? Disability insurance can replace a portion
or all of your income if you become disabled and cannot
perform your job.

‡ Disability Insurance Frequently Asked Questions

‡ Considering Disability Income Insurance
‡ How Much Disability Insurance do You Need?
‡ The Basics of a Supplemental Health Insurance Plan


‡ Personal Liability Umbrella Insurance is an added

protection above your current liability limits.
Liability is what you may be liable for such as
accidents you may cause.
‡ Find out here information on how an umbrella
insurance policy works and how to obtain an
umbrella insurance policy

‡ Even if you have no personal property,

renter's insurance is still important just for
the liability protection it provides. Find out
more here why if you rent you need
renter's insurance

‡ Long term care insurance can provide you

help in paying for a nursing facility or
home care for a long term illness. Learn
more here about long term care insurance
so you can decide if long term care
insurance should be an option for you.


‡ Recreational vehicles such as motor

homes and travel trailers, along with
motorcycles and boats have special
insurance needs.
‡ If you have an RV, boat or motorcycle it is
important that you are covered properly.

‡ Even if you have excellent medical, home,

and auto insurance, they may not provide
enough insurance for your travel plans and
it is most likely they do not provide much
coverage outside your country.
Various Types of Life Insurance
‡ There are two primary categories of life insurance: term
and permanent.

‡ However, there are several different types within each

category. Listed below are some of the most common

‡ Consult your life insurance professional for a more

detailed description of the various types of life insurance
and how they may apply to your specific situation.









‡ |    - a fixed amount of coverage with

premiums that are fixed over a certain period of time,
usually in 10-year increments.

   - amount of coverage
increases or decreases throughout the term, premiums
typically remain level.
‡ è  
   - includes a renewal provision that
gives the policy owner the right to renew the insurance
coverage at the end of the specified term without
submitting evidence of insurability.

‡   - insurance purchased typically by an

employer or professional association that is intended to
cover several people, usually resulting in reduced

‡      - gives the policyholder the right to

convert the term policy to a permanent policy







|  - a form of permanent life
insurance that combines the premium and death benefit
flexibility of universal life insurance under which the cash
value's current crediting rate is tied to the performance of
a financial index. Most policies offer guarantees that if the
index is negative, the crediting rate will not go below zero
 |  - remains in force during the
insured's entire lifetime, provided premiums are paid as
specified in the policy. Whole life insurance may also
include an element for accumulating growth
(called "cash value").
 - characterized by its flexible
premiums, flexible face amounts, and unbundled pricing

 - a form of whole life insurance
under which the death benefit and the cash value of the
policy fluctuate according to the investment performance
of separate account investment options.
‡ Most variable life insurance policies guarantee that the
death benefit will not fall below a specified minimum.

 - a form of permanent
life insurance that combines the premium and death
benefit flexibility of universal life insurance with the
investment flexibility and risk of variable life insurance.
Also called flexible premium variable life insurance and
universal life II.

‡ |

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 # -
permanent life insurance that covers two persons and
provides for payment of the death benefit proceeds
only when both insured have died. It is generally
designed to pay estate taxes.

‡ $   "       
 - whole life
insurance purchased with a single, lump-sum premium
‡ India Life Insurance industry came into being with the
establishment of Life Insurance Corporation (LIC)in India
in 1956.
‡ Till the time Insurance Regulatory and Development
Authority(IRDA) Act was implemented in the year 1999,
private companies were controlled by the LIC of India.
‡ Since 1999 onwards the market was opened for
operations of private companies also in the insurance
‡ In the past five years, life insurance has grown at a
higher rate than other types of insurance.
‡ The number of life insurance companies has increased
by an average of three companies annually and the
number of policy holders by over 25%.
Major Indian Life Insurance
In the public sector of the India life insurance, the
Life Insurance Company of India functions solely.
Some of the private companies operating in the
life Insurance Sector are:

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‡ Compared with the country's population,
the ratio of life insurance policy holders
rose from 7.5% in 1992 to 8.3% at million
1993. In the same period, the amount of
premiums has increased by over 30%
annually and its ratio rose from 0.21% of