THIRD PARTY PRODUCT DISTRIBUTION IN RETAIL BANKING PART II & LENDER's APPRAISAL PROCEDURE
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Retail Banking and Wealth Management — JAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the primary role of a bank acting as a corporate agent in third party product distribution?
A bank acting as a corporate agent solicits and procures insurance business on behalf of an insurance company, earning commission without underwriting risk itself.
What is the open architecture model in bancassurance?
Banks can tie up with multiple insurance companies simultaneously.
Which IRDAI regulation governs banks distributing insurance products as corporate agents?
IRDAI (Registration of Corporate Agents) Regulations, 2015 govern banks acting as corporate agents for insurance distribution in India.
How many non-life insurance companies can a bank partner with under the open architecture model?
A bank can tie up with three non-life insurance companies.
How many life insurance companies can a bank tie up with as a corporate agent under the open architecture model?
Under open architecture, a bank can tie up with a maximum of three life insurance companies, three general insurance companies, and three standalone health insurance companies.
What is the difference between corporate agent and insurance broker in bancassurance?
Corporate agent represents select insurers; broker represents the customer.
What is the term 'bancassurance' used to describe?
Bancassurance refers to the arrangement whereby insurance products are distributed through a bank's branch network and customer base, leveraging the bank's existing relationships.
What is the net present value (NPV) method used for in project appraisal?
To measure total present value of expected cash inflows minus costs.
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