Hello everyone. I am Professor Lee Yun-seok from the Department of Finance at Jeonju University, and I will be teaching the theory and practice of third-party insurance. It is a pleasure to meet you. First, regarding property insurance, the reason most of you have taken an interest in the theory of property protection in the License Master Course is likely because of the qualification exam for loss adjusters. While some of you may have looked up this loss adjuster certification system, others may not be familiar with it. Generally, when someone is injured in a traffic accident, we need to determine the amount of damages for that injury. Also, there was the recent forest fire in Goseong—was it last year or the year before?—when that large-scale fire occurred and houses and fields burned down, issues regarding compensation for damages arose. In that case as well, when compensation was provided according to insurance, a loss adjuster was involved to calculate the amount of damages. Furthermore, one of the actual cases I handled—a long time ago—was in Pangyo, where a ventilation shaft collapsed, resulting in multiple deaths and injuries. I was involved as the lead loss adjuster instructor in that case as well, and that too... We are responsible for the work of calculating personal damages through the intervention of insurance adjusters and carrying out fair compensation procedures. As you may know, insurance adjusters are involved in evaluating damages whether the injury involves property or a person; it is simply a profession that is not very visible. Consequently, many people are unaware of it. However, this field has existed for a very long time. I myself took the exam in 2004 and have worked my way up to where I am today. Among the insurance exams, there are the Bodily Injury Adjuster, who handles injuries to the human body, and the Property Insurance Adjuster, who evaluates damages to property. The theory and practice of property insurance that you are currently reviewing is a subject for the Bodily Injury Adjuster exam, specifically a second-stage subject. Therefore, it is crucial to accurately capture the specific details the examiner wants in their answer to the question. You should understand that this is especially true for property insurance, and even more so for practical application. Since this is not the time to give tips on an easy subject, I will get straight into the content. First of all, regarding property insurance, in practice, very few of you would say you’ve heard of it. You often wonder, "What is property insurance? I’ve heard of life insurance or non-life insurance, but what is property insurance?" To determine what types of insurance exist and which laws apply to them, there are classifications of insurance under the Commercial Act and classifications under insurance grammar. There are various types, but the only things you need to know are the classification of insurance according to the Commercial Act and how insurance grammar classifies insurance. It is sufficient to understand these two basics. So, let me first explain how insurance is classified according to the Commercial Act. Since we are studying property insurance, the key point is for you to carefully observe whether the word "property insurance" appears in the exchange text I am reading to you. First, it says "classification according to the Commercial Act prior to the amendment," but the act underwent a major change on March 12, 2015. With the amendment of the Commercial Act, at that time, insurance... The classification has changed a bit. That is why I am listing the contents of the Commercial Act based on the standards before and after the amendment. We will now look at how the Commercial Act defined certain types of insurance prior to the amendment, that is, prior to March 12, 2015. The Act classified insurance into non-life insurance and, skipping the latter part for now, personal insurance. So, as you look at this, you can understand that the Commercial Act distinguishes insurance into one type: non-life insurance and personal insurance. Now, if you were to vaguely ask, "How is non-life insurance classified?", it would feel daunting. Is non-life insurance simply about providing compensation? There are various types of losses, aren't there? There could be an accident while driving a car, a ship breaking down while using it, or an aircraft accident while using an aircraft. Therefore, non-life insurance has been divided by type. It is not as if they simply told you to sign up for just one non-life insurance policy and said, " This insurance will compensate for all losses." If you have an accident while driving a car, if you have an accident while flying an airplane, or if you have an accident while flying a ship... If they were to sell you a single lump-sum non-life insurance policy by saying, "We will compensate you, and we will compensate you for everything else, even the losses from war," it might be convenient, but you would have to pay exorbitant premiums. Because it covers all risks, non-life insurance is also divided by category. There are classifications in the law, and there are also criteria for classifying risks from an insurance management perspective. However, since we are looking at the Commercial Act to study property insurance, you only need to look at how the Commercial Act classifies non-life insurance. In the Commercial Act, non-life insurance is divided into general insurance, fire insurance, transportation insurance, marine insurance, liability insurance, and automobile insurance. In other words, they correspond to the types of accidents where damage can occur. For transportation accidents—to put it simply—if you send a package and it gets damaged during transit, transportation insurance must compensate for all of that. Marine insurance covers situations where you send goods using a ship, but the ship becomes dangerous and goods are swept down the cargo hold, or where goods are intentionally discarded to save the ship. It is marine insurance that compensates for such cases. As for liability insurance, what is it? It covers your daily life... For example, if I use someone else's shop and damage an item inside, I have to compensate for the damage, right? We call that liability insurance. It is also called indemnity liability insurance. Also, if I visit someone's house and knock over and break an expensive antique, I have to compensate for that, right? All of these fall under the indemnity liability insurance mentioned here. Then there is automobile insurance; since you are likely familiar with it, I will move on. Indemnity insurance is classified in this way. The Commercial Act states that personal insurance is classified into general life insurance and accident insurance. What did I say at the beginning? I said that when you start this exchange, you need to keep your eyes peeled to see if the name "property insurance" exists. The term "property insurance" does not exist anywhere. So, when you look at it, you can immediately catch one thing: the term "property insurance" did not exist in the old Commercial Act. Now, how is it classified under the current Commercial Act? It is the Commercial Act after the amendment. Under the current Commercial Act, which has been in effect since March 12, 2015, it is classified as follows. Okay, 2015. The Commercial Act, which has been in effect since March 12, also classifies insurance into non-life insurance and personal insurance. Therefore, whether it is the old Commercial Act or the current one, insurance is consistently categorized into non-life and personal insurance. However, it states that provisions regarding guarantee insurance have been inserted into the section on non-life insurance. Additionally, regarding personal insurance, regulations concerning the liability of disease insurers have been newly established. Thus, it is stated that non-life insurance includes guarantee insurance, while liability insurance includes disease insurance. Now, returning briefly, while maintaining the same classification based on the accounting method, fire insurance, transportation insurance, marine insurance, liability insurance, automobile insurance, and guarantee insurance have been added to non-life insurance, and life insurance, accident insurance, and disease insurance have been added to personal insurance. So, you can understand that the current Commercial Act makes these distinctions in this way. Now, the term " property insurance" hasn't appeared yet, right? No matter where you look, there is no term defining the scope of property. Then, let's take a look at the classification of insurance according to insurance terminology. It is classified into life insurance, non-life insurance, and property insurance. Regarding life insurance, the definition of " life insurance business" is somewhat difficult to understand: it refers to the business of accepting insurance arising from the handling of life insurance products, including premiums, surgeries, and the payment of insurance benefits. I hope you understand this content You absolutely do not need to memorize this; it is not important. When we say "life insurance business," simply understand that it deals with life. However, when it comes to life, you should n't just think of death; you must also consider survival. Therefore, regarding death, survival, and the "life-death mixed" ( life-death combination), insurance companies have stipulated in their terms and conditions that, while you are living after signing up for insurance, you might die. For instance, they state: "We will provide a survival congratulatory payment if you survive until age 60." What does this mean? It means they provide coverage for survival and will pay out the insurance benefit if an insured event related to survival occurs. So, regarding survival insurance (death, survival, survival), it means they provide coverage up to age 60 during the insurance period; they pay the benefit even if you die within that time, and they pay the benefit if you survive until age 60. What does this mean? It covers both survival and death. You must remember that life insurance fundamentally covers death, survival, and the life-death mixed. It means that life insurance covers these three things as insured events. Secondly, regarding the definition of the insurance industry, the non-life insurance business is also defined. What is non-life insurance? It refers to businesses that conduct operations such as the underwriting of insurance, the collection of premiums, and the payment of insurance benefits arising from the handling of non-life insurance products. This refers to the fact that, aside from insuring the human body, we define non-life insurance as everything that can be referred to as a "loss." For instance, let's say Min-sik got injured while playing soccer. His friend Min-sik broke his arm. It would n't be appropriate for me to go over and ask, "Min-sik, how much is your loss?" People might think, "That kid is a bit strange." In other words, we do not apply the concept of "loss" to the human body. However, excluding the body, there are also invisible things we possess, such as rights and claims. If I have the right to receive 50 million won from someone and lose that right due to an accident, the coverage provided falls within the realm of non-life insurance. In this way, everything where a loss can be assessed is called non-life insurance. In insurance terminology, we do not list things like this and that as we saw in commercial law. We simply view anything that can result in a loss as the non-life insurance business. And finally, the term "property insurance" has appeared. It is defined as " third-party insurance business." The Property Protection Act those who engage in the business of accepting insurance, collecting premiums, and paying insurance claims arising from the handling of property insurance products. It states that it refers to... I believe property insurance means injury, illness, and chronic illness insurance. Injury, illness, and caregiving insurance. But isn't that strange? "Injury" refers to a closed category, "illness" refers to being sick, and "caregiving" refers to a state where someone needs a caregiver to assist you because you are injured or sick. Since this ultimately covers the human body, you might think, "Doesn't this fall under the life insurance business?" or " Since personal insurance existed under the Commercial Act, doesn't this fall under personal insurance?" You might wonder why it was categorized as "property insurance." Regarding the life insurance I mentioned earlier, I explained it this way: the scope of life insurance is limited to covering only death, survival, and a combination of life and death. So, if a life insurance company creates a product, the coverage is essentially limited to paying a certain amount upon death, a certain amount upon survival, or a certain amount for both death and survival. However, if you look at it that way, the utility of signing up for insurance is actually minimal. But if you, the viewers watching this show right now, were told, "We will only cover death or survival," would you feel the need to sign up? Right now, you might think, "What? If I get sick and go to the hospital, I need money for medical expenses, and if I get cancer, I need money for cancer..." Since there is no immediate money for living expenses, there is a need for various benefits such as cancer diagnosis payouts. However, life insurance companies crudely only cover death, survival, generation, and regional coverage, so naturally, from the policyholder's perspective, the utility is low. Consequently, in the past, if you were familiar with a certain life insurance company, there were also companies with the same name, such as S Fire & Marine Corporation. For example, there is the S company. Whether it was S Life or S Fire, whether it was a life insurance company covering fire or a non-life insurance company, they used to sell products that covered the human body. S Life covered death or injury (a combination of life and death), while S Fire could cover death or injury but not generation coverage. They only covered things like a certain amount for a broken bone or a daily allowance for a few days of hospitalization. Therefore, from S Life's perspective, since we only cover 300 million won, the product sold by that fire insurance company looks very good because it can provide coverage for situations like a broken bone. However,similarly, from S Fire's perspective, they cannot sell death coverage like S Life does, but that life insurance company... There were thoughts like, "We can provide guarantees, and it would be great if we could sell that too." But if we were to allow mutual sales, who would benefit? It would benefit the consumer. Consequently, the idea was to replace this and allow it to be sold. And regarding this replacement, we decided to place the area where sales are possible in a third category called "Injury, Disease, and Nursing Care Insurance." In other words, it is property insurance. It is neither a complete personal insurance like life insurance nor a complete non-life insurance like non-life insurance; it is a gray area in between. Because it is referred to as " gray insurance," it is called property insurance because it combines the characteristics of life insurance and non-life insurance. That is why it is referred to as Injury, Disease, and Nursing Care Insurance. I will explain the details of this later. So,I am accurately identifying the term "property insurance" in insurance terminology, right? Property insurance clearly exists in insurance terminology. Does that mean it does not exist at all in commercial law, as we saw earlier? That is not the case. Why is that? If you look at the previous section, property insurance is injury, disease, and nursing care insurance, but now, regarding insurance under criminal law... Regarding the classification, if you look at the non-life insurance section, it covers fire, transportation, marine liability, automobiles, and currently includes guarantee insurance, so it does not apply to non-life insurance. However, in personal insurance, property insurance consists of injury, disease, and long-term care insurance. What is written here? Injury insurance is listed, right? So, one type of property insurance is listed. Next, it was mentioned that disease insurance was introduced with the amendment of the law. So, property insurance consists of injury, disease, and long-term care; it was listed earlier, and disease insurance was added this time. Therefore, there are already two types within property insurance. Long-term care insurance is not yet regulated by the Commercial Act. So, if you ask which law fully defines property insurance, since insurance grammar specifically refers to it as "property insurance," it occupies a complete status. However, while property insurance is injury, disease, and long-term care insurance, the Commercial Act only regulates injury and disease insurance and does not regulate long-term care insurance. Therefore, you might think that the position of property insurance under the Commercial Act is not complete and is somewhat incomplete because long-term care insurance is missing. You can summarize the legal status of property insurance just like this: it holds a somewhat unstable position under the Commercial Act, but a complete status under protection laws. It occupies a significant portion, and the reason for this is as I just explained. Now, let's get down to business and look into the characteristics of property insurance. I mentioned earlier that it has characteristics somewhat intermediate between life insurance and non-life insurance. Therefore, you can infer that it possesses characteristics of both life insurance and non-life insurance. So, let's read through the characteristics of property insurance. Currently, the Protection Act defines property insurance as a contract prescribed by Presidential Decree that promises to pay money or other benefits for caregiving in exchange for consideration, with the purpose of risk coverage being "human disease, injury, or caregiving resulting therefrom." Simply put, if a person contracts a disease, suffers an injury, or requires caregiving due to these, it means the insurance company pays the guaranteed amount promised in the contract. You can understand this as third-party insurance, or what is called the " third zone." So, regarding the ideology as well... You have probably heard the term "Third Zone." It is called property insurance because it combines the characteristics of non-life insurance and life insurance. Some people refer to it as "1st insurance," "2nd insurance," or "3rd insurance," but that is absolutely not the case. If you look at the characteristics of property insurance first, the first is accident insurance. Accident insurance is defined as insurance that covers injuries to the insured's body resulting from a sudden and accidental external accident, and covers the resulting disability, post-surgical complications, and death. It seems to cover death, etc. Now, the keyword here is the "injury requirement." Since it is accident insurance, naturally, it pays out insurance benefits when an accident occurs due to an injury. Then, you need to understand the meaning of "injury." If you understand an injury simply as something that closes, it can be a bit confusing. For example, let's say I like golf. I do n't actually play golf myself, but I've seen people practicing swings 100 or 1,000 times a day. Having worked with hands for a long time, I have observed that such repetitive, strenuous movements can lead to the ribs... There are cases where a fracture occurs, and there have also been instances where the cartilage in the lumbar disc ruptured. So, let me ask you this: Suppose I practice my golf swing 1,000 times a day. While practicing, at some point, I fracture a rib. Should this be considered an upper injury? Or, imagine a marathon runner. You run continuously, and after passing the 40km mark, you fall and faint. Should this be considered an injury? Well, is n't that ambiguous? The reason I am telling you this is that the meaning of "injury" in upper injury insurance is a bit different from what you typically refer to as "getting hurt" in your daily life. There are specific requirements. You must satisfy three conditions: suddenness, accidentality, and external cause. These are the keywords; this is important. As I mentioned earlier, there is also the concept of a sudden, accidental, and external accident. Therefore, you must be aware of these three conditions: suddenness, accidentality, and external cause. All three must be satisfied. It is not enough if just one is satisfied; you must see that all three—suddenness and external cause—are met. That is when you realize, "Ah, this is an injury. " The very act of swinging was influenced by an external factor. There is an external cause, but the suddenness is the issue. A fracture caused by a single, sudden swing... Did it happen? No. Because you kept swinging continuously, the strain built up little by little until it suddenly cracked. In that case, it does not meet the requirements for suddenness. So, while it was an accidental and external incident, it was not sudden. We might just call it an injury among ourselves, but it does not meet the criteria for an injury as defined by accident insurance. This means that insurance benefits related to injuries will not be paid. Also, as those of you who have served in the military may know, there are cases where the heel bone cracks during marches. We call this a stress fracture. Stress fractures are the same; they were accidental and external. But were they sudden? No. Because you kept walking, the weight was applied little by little, just like a stone cracking gradually; the strain built up little by little until, at some point, it cracked. Since there is no suddenness, it is considered not an injury. Therefore, the terms "suddenness" and "outpatient" are extremely important. You are aiming for that top 2% to pass the exam, and since there will be many cases where you need to scrutinize these things after you pass, you must always pay attention to these words. You need to be aware of the requirements. So, regarding sudden external accidents, accident insurance covers death, resulting in post-surgical complications, and other injuries to the insured's body. That is how it is structured. The second is disease protection. Disease insurance refers to insurance that covers expenses such as surgery and outpatient visits incurred for the direct treatment of a disease when the insured is confirmed to have a disease. In principle, death caused by disease is excluded from property insurance coverage because it is an inherent aspect of life insurance; however, death can be covered if certain conditions are met. Now, as I mentioned earlier, it is structured like S Life and S Fire. So, S Fire can technically cover diseases. For example, if you are diagnosed with cancer, they can certainly offer diagnosis benefits, surgery costs, and hospitalization expenses. However, S Fire cannot technically cover death due to the nature and structure of non-life insurance products. You cannot guarantee death due to disease under any circumstances. Death due to disease is typically covered only by life insurance. As I mentioned, life insurance covers death. Typically, whether you die from an injury, illness, or old age, as long as death occurs, general Paying out insurance benefits in such situations is the biggest advantage of life insurance. In the non-life insurance sector, companies like S Fire & Marine Insurance, which originally covered the human body, typically only covered diseases; in principle, they could only cover death caused by injury, not death due to disease. So, from S Fire & Marine Insurance's perspective, they were drooling as they looked at S Life Insurance from the side. Let's imagine this: they were looking at them, thinking, "They cover death due to disease, and even death from presbyopia. How much would customers want to sign up for such a product? If we sell that product, we could attract even more subscribers." Of course, S Life Insurance was thinking the same thing: "We can only cover death, so how great would it be if we could provide hospitalization and surgery costs for injuries?" They were staring at each other, drooling, until their eyes met. Then, S Life Insurance said, "Okay, then we will let you sell the disease-related death coverage you envy so much." And then, conversely, S Life Insurance would offer S Fire & Marine Insurance the coverage for the things you cover, such as fracture diagnosis fees, second-time fees, and surgery fees... " Hey, we really want to do this for you. Indemnity insurance is just so attractive. Please let us do this. So, let's hold a competition. That's how the deal was struck. As a result, property insurance was created. We allowed life insurance companies and non-life insurance companies to sell property insurance, and as a result, we have reached our current position where almost all companies, whether life or non-life, can provide nearly identical coverage. Now, regarding disease insurance, it pays out benefits when you are diagnosed with a disease or undergo two surgeries. However, while coverage for death was originally the exclusive domain of property insurance and was not allowed, you can now understand that death due to disease can also be covered when certain conditions are met. I will explain what those conditions are in a moment. Third is nursing care insurance. This refers to insurance that pays agreed-upon benefits as a lump sum or annuity when a person becomes incapacitated due to an injury or disease, suffers from dementia as defined in the terms and conditions of the individual product, or is recognized as eligible for Long-term Care Insurance for the Elderly. This is nursing care protection." Long-term care insurance is necessary when a person is bedridden due to an illness and needs a caregiver by their side. If mobility is limited, there are naturally restrictions on basic daily movements. To alleviate this, if the patient simply lies still, sweat will naturally accumulate underneath. If left untreated, this can lead to necrosis. Once necrosis occurs, major surgery is required, and the patient's life may be in danger. Therefore, for those who are bedridden, a caregiver must occasionally turn them over to prevent necrosis. A caregiver is essential for these purposes. A caregiver is also required if one develops dementia. Long-term care insurance provides coverage for these situations. Since there may be cases where you have spent all your money and have nothing left, simply having a lot of capital is not enough. You must have capital, but you must also go through the licensing process with the Financial Services Commission or the Financial Supervisory Service. As you can see, it states that anyone wishing to engage in life insurance, non-life insurance, or property protection insurance must obtain permission from the Financial Services Commission for each specific insurance category. The insurance categories under property insurance include accident insurance and disease insurance. Since it is classified as long-term care insurance, those who wish to engage in the property insurance business may concurrently perform the relevant business only if they have obtained permission from the Financial Services Commission for each specific category. What this means is, let's take S Life as an example. Suppose that life insurance company is operating a life insurance business, and they think that injury, disease, and long-term care insurance among property insurances looks very attractive, so they want to concurrently engage in these businesses and operate them together. How do they do that? Under the Property Protection Act, to obtain permission, they must obtain a license for the injury insurance business to handle injury insurance, a license for the disease insurance business to handle disease insurance, and a license for the long-term care insurance business to handle long-term care insurance. They must obtain permission for each one individually. If they have obtained permission for injury insurance, they cannot sell disease or long-term care insurance. That is what is being explained. Next, regarding restrictions on concurrent use and exceptions, it states that if one has obtained permission for all insurance categories in the life insurance business, or for all insurance categories in the non-life insurance business excluding reporting and guarantee insurance, it is deemed to have obtained permission for the property insurance business. In the case of the life insurance business, the principle is to obtain permission for long-term care insurance by category, but if that happens... For example, regarding life insurance, there are various requirements stipulated by law concerning coverage for death, insurance for the business, survival, and various types of investment-type insurance. If a company has obtained licenses for all categories of life insurance— meaning it is a company authorized to comprehensively handle all life insurance—then it does not need to obtain separate licenses for property insurance categories like injury, illness, or nursing care. The point is that since you have received licenses for all life insurance, we will allow you to operate property insurance without obtaining a separate license. Similarly, for non-life insurance, if a company can engage in various categories such as fire insurance, transportation insurance, liability insurance, and automobile insurance (excluding guarantee insurance and reinsurance), then we will recognize thatyou are allowed to concurrently operate property insurance without obtaining a separate license. This is because we acknowledge that you have met a certain scale. Now, regarding the second point, number 1 states that if a company has obtained licenses for all insurance categories in the life insurance business or all insurance categories in the non-life insurance business, it does not need to obtain a license for property insurance. That was the first point; the second point concerns concurrent operation. In cases where it is possible, even if approval has not been obtained for all life insurance categories, life insurance companies are allowed to engage in reinsurance for life insurance and reinsurance for property insurance. So, you can understand it as: concurrent use is possible for these reinsurances. Third, there are pension savings plans and retirement insurance contracts. These fall under cases where concurrent use is possible in property insurance. The important part is number 4. Circle number 4; it is extremely important. Now, as I mentioned earlier, non-life insurance companies generally cannot cover death due to illness, but they are allowed to do so if the requirements for Type 1 are met. I said we would look into what those Type 1 requirements are in a moment, and this is the content. First, to guarantee coverage for death due to illness from a non-life insurance company, you must meet all three of these requirements. First, the insurance maturity must be 80 years or younger. In other words, if you have signed up for insurance with a certain non-life insurance company to receive a payout in case of injury or illness, the age at which you intend to enroll—the age of coverage—must be 80 years or younger. If you reduce the coverage for death due to illness—for example, if you decide to exclude it and it doesn't matter—you might be covered up to age 90 or 100. However, if you think, " Non-life insurance is generally cheaper than life insurance, so I should sign up," and you also want coverage for death due to illness, you should note that with non-life insurance, the insured age cannot exceed 80. The age at which you can receive coverage must be 80 or younger. Furthermore, the insurance payout limit is 200 million won per person; that is, the benefit paid out due to death due to illness must be within 200 million won. Thirdly, the refund paid at maturity must be within the total range of the premiums paid. This is called the maturity refund. We usually receive a refund at maturity, right? That is why people sometimes talk about it being 100%, 90%, or 80%. This is exactly the maturity refund. This maturity refund is within the range of the premiums paid. For example, if I paid 30 million won in premiums over 20 years, later usually Since it is structured as a 20-year payment period with maturity at age 80, if I signed up at age 20, I would pay premiums until age 40. Because the maturity is at age 80, I would stop paying premiums from age 41, but the insurance coverage would continue until age 80. So, regarding the maturity refund returned at age 80 after paying for 20 years— if I paid 30 million won over 20 years—the refund amount must not exceed 30 million won. It must be capped. This means that if you sign up for a non-life insurance policy that meets all three requirements, it will provide coverage for death due to illness. Do you understand? That is the content. To cover death due to illness as a rider in non-life insurance, you must satisfy all three of these requirements. In fact, there have been questions on exams asking you to write about this, so it is important, everyone. Now that we have looked at the characteristics of property insurance, let's examine the characteristics based on the form of benefits. So, regarding the form of benefits, you can understand it as "giving" insurance money—you can think of it as "giving something." Of course. When an accident occurs, insurance benefits are paid, but the issue is in the form in which those benefits are paid. Now, in the case of life insurance, how is it paid when you die? For instance, if the policy states, "We will pay you 300 million won upon death," do they give you the full 300 million won when you die? Or does the insurance company come out and say, "We tried to pay you, but your income is too low, so why did you sign up for so many policies? We can't give you the full 300 million won; let's compromise and give you only 200 million won"? Of course, they give you the full 300 million won. This is called a " definitive benefit." Now, regarding coverage for the human body, let's say we have " indemnity insurance." Suppose I went to the hospital. When signing up for indemnity insurance, the coverage amount is usually up to 50 million won these days. Let's say you choose the 50 million won coverage. But I went to and the treatment cost came out to 200,000 won. It came out to 200,000 won, but just like life insurance pays a death benefit, can I receive 50 million won because the coverage amount is 50 million won? Even though I spent 200,000 won, that is not the case. In that situation, the money spent is 200,000 won. Although the amount decreases slightly after deducting the deductible, it only covers the actual expenses incurred, equivalent to 200,000 won. What is this called? This is not a fixed benefit method, but rather an indemnity compensation method. It would be truly wonderful if indemnity insurance used a fixed benefit method. If you signed up for a 50 million won policy and spent only 50,000 won at the hospital, you could receive the full 50 million won; then, who would bother working? They would n't go to work. Consequently, among the benefit forms covering the human body, there are fixed payments, indemnity payments, and a semi-fixed payment method that does not exactly correspond to either fixed or indemnity. These are precisely the benefit forms: fixed, semi-fixed, and indemnity. Furthermore, although I am not the one paying the premiums, receiving a premium waiver itself could be considered receiving some form of performance benefit from the insurance company. Therefore, when premium payments are waived, all of these become forms of benefits. We will now look at the characteristics associated with this. The first is the fixed compensation method. The fixed compensation method refers to a system where, if an insured event occurs during the insurance period, the agreed-upon coverage amount is paid as a fixed sum. Examples include fracture and surgery benefits in property insurance, cancer diagnosis benefits, and cerebral hemorrhage diagnosis benefits. Various diagnosis benefits and death benefits fall under this category. Whether it is property insurance, life insurance, or non-life insurance, products are currently being sold that combine all types of property insurance. Most cases falling under this fixed compensation method are fixed compensation. Since the basic stance of scholars is that the human body cannot be quantified as a loss, the principle is to pay a fixed amount when an accident involving the human body occurs. Therefore, if you suffer a cerebral infarction, you receive a stroke diagnosis benefit; if you have a cerebral hemorrhage, you receive a cerebral hemorrhage diagnosis benefit; or if you have cancer, you receive a cancer diagnosis benefit. For example, if the diagnosis benefit is 30 million won, they pay 30 million won as a fixed amount. If you are insured by five different companies with coverage of 30 million won each, they will provide a fixed amount of 150 million won by dividing the 30 million won from each of the five companies. For instance, if you have low income but are concerned about your health due to a family history, and you have allocated a significant portion of your salary to pay high insurance premiums, and an accident occurs with 30 million won from five different companies, the insurance companies will provide coverage of 150 million won. They say, "You've claimed a lot, but we can't pay you this much." They say they can't, and they can't. This is because they believe that a person's body cannot be put a price on. Most insurance policies use a fixed benefit method. If you look at the second type, there is something called the semi-fixed benefit method. Now, the semi- fixed benefit method refers to a system where, upon the occurrence of an accident, the full insured amount is not paid as a fixed amount, but rather the insured amount is paid differentially based on the duration or severity. So, the semi-fixed benefit method works like this: it is a fixed amount, but even for the same accident, the amount can vary. Why can it vary? This is a prime example, is n't it? The "daily allowance" refers to the expenses incurred when you have an accident or are hospitalized due to an illness, paid on a daily basis. For instance, if the insured amount is 50,000 won and you are hospitalized for a week, 50,000 won multiplied by a week equals 7 days, so 7 days is 350,000 won. This means that for a one-week hospitalization, they will pay 350,000 won, which is the 7-day rate relative to the insured amount of 50,000 won. Of course, as you will learn later, there are cases where it is paid starting from the first day, and cases where it is paid starting from the fourth day, excluding the third day. There are also coverage formats for payment, but here, to help you understand, I have simply explained it assuming that payments are made starting from the first day. Now, let's say I signed up for insurance with two different companies, and both policies cost 50,000 won. If I am hospitalized for a week, what happens? Since it's 50,000 won per week, that's 350,000 won. Since there are two insurance companies, they pay 350,000 won from both, totaling 700,000 won. Now, let's say I have another accident and stay for ten days. If I have the same policy, it is the same; since it is the same insurance, it is 50,000 won. But since I was hospitalized for ten days, how much do I receive in this case? Since it's 10 days, it's 500,000 won. I received 350,000 won earlier, but this time I received 500,000 won from the other company. If there are two insurance companies, that's 1 million won. So, the coverage amount is fixed. They don't just pay the coverage amount; they pay differentially based on the duration. So, unlike when paying out a death benefit, if the coverage is 300 million won, they don't pay the full 300 million won. If it's 50,000 won, the amount paid varies depending on the duration based on the coverage amount. This is the semi- fixed amount method. Secondly, now... In addition to that, there is also coverage for after-effects. This is one of the extremely important details within after-effects coverage. If you look at your insurance policy, you will find coverage details for after-effects coverage. For injury or death after-effects, if the disability rate is 80% or higher, the payout is calculated by multiplying the coverage amount by the payout rate; for 70% or less, it is calculated by multiplying the coverage amount by the payout rate. For example, it might be set to 3 to 79%. So, what this means is that if the coverage amount is 100 million won and a 10% disability occurs, the disability benefit will be paid out at 10 million won. The coverage amount is fixed at 100 million won. However, instead of paying a fixed amount of 100 million won every time a disability occurs, the payout amount varies depending on the disability rate. So, if a 10% disability occurs, it pays out 10 million won, and if it occurs at 20% or lower, it pays out 20 million won. This is exactly what is called the semi-fixed benefit method. Now, there is the actual loss compensation method. The actual loss compensation method pays only for the actual expenses incurred. You are all very familiar with "actual loss insurance," which is also called the "second National Health Insurance." Now, the actual loss compensation method is... It is stated that the purpose is to prevent the beneficiary from gaining an advantage and to prevent moral hazard by compensating only for the expenses incurred. In fact, the indemnity compensation method is considered quite unique among scholars in property insurance, especially in the context of insurance covering people. Since it is stated that damage to a person's body cannot be quantified, the introduction of the indemnity compensation method has raised issues regarding how to interpret it academically. However, this is how we view it: In fact, regarding the indemnity compensation method in life insurance, since damage to a person's body cannot be quantified, the intention is not so much to pay exactly the amount of damage, but rather for the actual compensation method itself to compensate only for the 200,000 won treatment cost incurred when a person goes to the hospital and returns, rather than viewing the loss as 200,000 won, but rather to compensate only for the cost incurred. If this were not the case and the insurance company... If you are insured by two different companies and an accident occurs costing 200,000 won, and you receive 400,000 won by paying 200,000 won from each, then Mr. Hong Gil-dong, for example, why would I go to school or give lectures? I would just say I’m sick and sign up for multiple policies. If I were to sign up for 200,000 won from five different places—a total of 1 million won—then even after deducting the 200,000 won, I would have earned 800,000 won a day. That’s how it works, isn't it? Therefore, if we were to allow that—allowing duplicate payouts—the things I just mentioned constitute insurance fraud and insurance crime. That is why, to prevent such things in advance, coverage categories for actual loss compensation have not been created, and in the case of actual loss insurance, it is strictly structured to pay only for the expenses incurred. As you will see later, drivers also sign up for driver's insurance, right? So, regarding driver's insurance, if you are driving and cause someone's death or injury and need to reach a criminal settlement with that person, usually regarding the criminal settlement money... You can receive a settlement of 10 million or 20 million won from your insurance company under the name of a "traffic accident handling support fund." For example, let's say I spent 20 million won on expenses. Since it is a fixed-amount method, even though I was insured by two companies, if I received 20 million won from insurer A and 20 million won from the non-insurer, and thus receive 40 million won, I incurred 20 million won in expenses but received 40 million won; I ended up earning an extra 20 million won despite being at fault. So, how would this work? Someone could abuse this system by intentionally causing an accident. For instance, if they say, "We'll give you 100 million won," and you sign up for two policies worth 100 million won each, you essentially make 100 million won. Because such abuse is possible, special riders covering expenses—such as indemnity insurance, traffic accident handling support funds, and, as you will see later, legal fees related to driver's insurance—are all operated on an indemnity compensation basis. You might be wondering if there are people like that. I majored in law for my undergraduate studies, but I pursued business administration for my master's and doctoral degrees. At that time, law school... There is something my professor said when I was studying criminal law. He asked, "Do you know why these laws were created?" When I replied, "I don't know," he explained, "Because people keep doing these things, they are just right. These laws are all records of what people have done. Because people keep killing, they tell you not to kill. If you kill, you will be punished with a fine of 7 years or more." That is how they were established. It is the same. Regarding these costs, the promise to compensate you for the expenses incurred is because the system has changed continuously in the past due to people abusing it to receive benefits. In fact, the criminal settlement support fund I mentioned earlier used to be given as a fixed amount, even for duplicates. It is a product that has been around for over 20 years, but back then, if they paid 80 million won, meaning I was hit by two insurance companies, they would give me 80 million won and 80 million won, totaling 160 million won. There was even a crime program on TV about people abusing this system. Therefore, for the purpose of preventing such crimes, the indemnity compensation method is being introduced in necessary parts of property insurance as well. Next, there is premium waiver. With a premium waiver, you don't receive money, but regarding cancer... Are you diagnosed with cancer? If you are told that your premiums will be waived and you won't have to pay premiums starting next month, that is. Why is that? When you get cancer, you are practically unable to work and only receive treatment, incurring expenses. Since it feels inappropriate for insurance companies to collect premiums on top of that, the intention is to say, "We will waive your premiums for you." For example, the same applies to disability. If a disability occurs with a percentage of 50% or more, premiums are also waived. This is because, based on a 100% standard, a 50% disability means you can essentially be unable to perform the work you originally did. In such cases, the premium waiver is designed with the good intention of saying, "I will cover it for you through insurance coverage." Although a premium waiver does not give you money directly, you benefit indirectly because you are no longer paying expenses. Therefore, a premium waiver falls under the category of benefits in property protection. So, if you look at the premium waiver, it is a system primarily recognized in life insurance, and its purpose is to protect insured individuals facing economic hardship by exempting premium payments in the event of exclusion or serious physical defects caused by disease. Unlike life insurance, most non-life insurance policies do not recognize premium waiver systems; relevant riders expire after the payout, and no surrender value is provided. Life insurance typically tells you, "If you are diagnosed with a specific type of cancer, you can maintain your policy starting next month, and the cancer premium will be waived. If you undergo cancer surgery again, please file a claim; we will pay the benefits, and you do not need to pay any premiums." In contrast, non- life insurance pays out a diagnosis fee upon diagnosis, but the specific rider for cancer diagnosis disappears. The premium waiver system is essentially nonexistent; the rider simply vanishes. Since the rider is gone, the waiver system is almost non-existent. You might think, " Life insurance looks much better, and non-life insurance seems a bit lacking." However, life insurance premiums are fundamentally more expensive than non-life insurance when comparing the same coverage. It is difficult to view it as superior simply because the premiums are high, even if it has some special features. Fifth, there is duplicate insurance. When you have subscribed to insurance from multiple places, the question is how the payout will be distributed. As I briefly mentioned earlier, regarding medical indemnity insurance, I... Let's say you signed up for two insurance policies. If both pay out duplicate costs, it means you spent 200,000 won on hospital bills but received 400,000 won from two insurers, effectively making a profit of 200,000 won. In such cases, there is clearly a problem. Since you are covered beyond your actual expenses, you might not want to go to work and will only think about feigning illness to go to the hospital. Consequently, regarding this type of insurance, since property insurance fundamentally lacks the concept of "loss," there is no concept of "secondary insurance." So, in principle, if a life insurance policy covers death for 300 million won and two of them subscribe, the rule is to pay out the full 300 million won and 300 million won, totaling 600 million won. However, as I mentioned earlier, if duplicate payments were made even in cases covering expenses, it could cause significant social problems. Therefore, when there are multiple secondary insurance policies covering the same insured event, benefits corresponding to the fixed-amount and quasi-fixed-amount compensation methods are compensated redundantly, while those corresponding to the actual loss compensation method are strictly compensated on an indemnity basis. So, if you incur a hospital bill of 200,000 won and both insurance companies... We guarantee proportionally, in amounts like 100,000 won, 100,000 won, ensuring that the total does not exceed 200,000 won. So, you can understand duplicate insurance in this way. Regarding fixed-amount or quasi- fixed-amount methods, benefits are provided in duplicate. For example, if you sign up for death insurance, you can receive the full death benefit. As I explained earlier regarding daily allowances, if you are insured by several companies and are hospitalized, you can receive benefits from various sources. However, in the case of actual expense coverage, such as indemnity insurance or driver's insurance, the policy is designed to pay only for the actual expenses incurred. In such cases, when there are multiple insurance companies, the regulations regarding duplicate insurance are applied, and the insurance companies share the payment of the benefits. You will learn about this sharing later, but there are separate methods stipulated in the Commercial Act and the terms and conditions. You need to be aware of these details as well. Next, there are characteristics that distinguish property insurance from non-life insurance. First, if you look at the details, the object of the insured accident is different. Non- life insurance covers damage to the insured object caused by an insured accident. Therefore, damage may occur It states that tangible and intangible assets, including existing corporations, goods, and various rights, can all qualify as the subject of insurance. It also mentions that property insurance differs from non-life insurance in that only natural persons qualify as the subject of the premium, as its purpose is to cover a person's physical condition, illness, and medical status. This implies that the object of the insured event is different. So, what does the object of coverage mean? It refers to the subject matter that I intend to cover when I sign up for insurance. So far, we have looked at the characteristics that distinguish property insurance from non-life insurance. Next time, we will examine the cases where the provisions for personal insurance are applied. Thank you for your hard work.