Hostname: page-component-cd9895bd7-mkpzs Total loading time: 0 Render date: 2024-12-24T16:16:55.227Z Has data issue: false hasContentIssue false
  • English
  • Français

Actuarial Aspects of PHI in the U.K.

Published online by Cambridge University Press:  11 August 2014

A. J. Sanders  and
N. F. Silby
Get access

Extract

Schedule 1 of the Insurance Companies Act 1982 defines Permanent Health Insurance (PHI) as a class of Long Term insurance business being “… contracts of insurance providing specified benefits against risks of persons becoming incapacitated in consequence of sustaining injury as a result of an accident or of an accident of a specified class or of sickness or infirmity being contracts that:

(a) are expressed to be in effect for a period of not less than five years, or until the normal retirement age for the persons concerned or without limit of time, and

(b) either are not expressed to be terminable by the insurer, or are expressed be so terminable only in special circumstances mentioned in the contract.”

The fundamental features of PHI as developed in the U.K. are therefore:

(a) It provides specified benefits in the event of ill health.

(b) Cover may not be cancelled by the insurer (except under special circumstances described in the policy document) and hence the insurance is ‘permanent’.

Type
Research Article
Information
Journal of the Staple Inn Actuarial Society , Volume 31 , March 1988 , pp. 1 - 57
Copyright
Copyright © Staple Inn Actuarial Society 1988

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

(1) Report of the Committee to Recommend New Disability Tables for Valuation (1985) Transactions, Society of Actuaries, Itasca, IL, 37, 449–601.Google Scholar
(2) New Disability Tables (1985) Society of Actuaries Record, Volume II, No. 1.Google Scholar
(3) Continuous Mortality Investigation Reports 7, (1984).Google Scholar
(4) Continuous Mortality Investigation Reports 4, (1979).Google Scholar
(5) Permanent Health Insurance Review (1985/1986) Kluwer Publishing Ltd.Google Scholar
(6) Courant, S. (1981) ‘The price of Disability Benefits, Disability Trends and the Danger of Overinsurance’, et al, Transactions of the Actuarial Society of South Africa IV, part II.Google Scholar
(7) Wickenden, A. S. (1980) ‘Disability Insurance’ T.I.A.A., 119.Google Scholar
(8) Sansom, R. J. (1978) ‘Practical P.H.I.’ J.S.S., 22, 63.Google Scholar
(9) Miller, J. H. and Courant, S. (1973) ‘Some observations on the nature of the risk of disability, its measurement and control’ T.S.A., XXIV, Meeting 70.Google Scholar
(10) Miller, J. H. and Courant, S. (1979) ‘Disability Termination Rates’ T.S.A., XXXI, 439.Google Scholar
(11) Hamilton-Jones, J. (1972) ‘Actuarial Aspects of Long-Term Sickness Insurance’ J.I.A., 98, 409.Google Scholar
(12) Harnett, T. A. (1976) ‘Disability Income Insurance Cost Differentials between Men and Women’ State of New York Insurance Department.Google Scholar
(13) Courant, S. (1980) ‘Reserves for Disability Income Insurances and their Control’ I.C.A., 3, 53–66.Google Scholar
(14) Miller, J. H. (1980) ‘Disability Income Insurance—Some New Insights’ I.C.A., 3, 215–226.Google Scholar