Insurance Act
Part 1 of 2 · provisions 1–200
This Act sets up a legal framework for prudential regulation and supervision of insurance business in South Africa and for microinsurance.
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- South Africa
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- Act or statute
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- Act 18 of 2017
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- en
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Lloyd's Lloyd's representative office Lloyd's underwriters Lloyd's underwriting accident and health cover accident cover acquisitions acquisitions and disposals activity restrictions actuarial roles administration administrative determination administrative penalties advertising amendment amendments annual financial statements appeal/hearing procedure appeals application application processing applications appointment notifications appointment of curator +305 more
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About this statute
This Act sets up a legal framework for prudential regulation and supervision of insurance business in South Africa and for microinsurance. This excerpt appears to be a heading section for word definitions and general interpretation, but it does not include the actual definitional text. This section heading relates to claims against branches of foreign reinsurers or Lloyd’s underwriters, and to insurance groups and insurer notification when becoming part of a group of companies. Section heading listing designation of an insurance group, licensing of a controlling company, board responsibility, transparent insurance group structure, and chapter headings on key persons and significant owners. This section concerns approval of the appointment of certain key persons.
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Provisions of Insurance Act
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PART 1 OF 2
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No. 41388
AI-assisted research summary: This Act sets up a legal framework for prudential regulation and supervision of insurance business in South Africa and for microinsurance.
2 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 (English text signed by the President) (Assented to 17 January 2018) ACT To provide for a legal framework for the prudential regulation and supervision of insurance business in the Republic that is consistent with the Constitution of the Republic of South Africa, 1996, and promotes the maintenance of a fair, safe and stable insurance market; to introduce a legal framework for microinsurance to promote financial inclusion; to replace certain parts of the Long-term Insurance Act, 1998, and the Short-term Insurance Act, 1998; and to provide for matters connected therewith. BE IT ENACTED by the Parliament of the Republic of South Africa, as follows:— ARRANGEMENT OF SECTIONS CHAPTER 1 INTERPRETATION AND OBJECTIVE OF ACT 5 1. 2. 3. Definitions General interpretation of Act Objective of Act CHAPTER 2 CONDUCTING INSURANCE BUSINESS AND INSURANCE GROUP BUSINESS 10 Part 1 General principles for conducting insurance business or insurance group business 4. Principles Part 2 15 Insurance business and other business of insurers 5. Insurance business and limitations on other business Part 3 Branches of foreign reinsurers and Lloyd’s underwriters 6. Conducting of insurance business by branches of foreign reinsurers and Lloyd’s underwriters 20 This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 3 (Engelse teks deur die President geteken) (Goedgekeur op 17 Januarie 2018) WET Om voorsiening te maak vir ’n regsraamwerk vir voorsorgreëling en voorsorg- toesig oor versekeringsbesigheid in die Republiek wat bestaanbaar met die Grondwet van die Republiek van Suid-Afrika, 1996, is en die handhawing van ’n regverdige, veilige en bestendige versekeringsmark bevorder; om ’n regsraam- werk vir mikroversekering bekend te stel ten einde finansiële insluiting te bevorder; om sekere dele van die Langtermynversekeringswet, 1998, en die Korttermynversekeringswet, 1998, te vervang; en om voorsiening te maak vir aangeleenthede wat daarmee in verband staan. DAAR WORD BEPAAL deur die Parlement van die Republiek van Suid-Afrika, soos volg:— INDELING VAN ARTIKELS HOOFSTUK 1 UITLEG EN OOGMERK VAN WET
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Part 3
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Woordomskrywing
AI-assisted research summary: This excerpt appears to be a heading section for word definitions and general interpretation, but it does not include the actual definitional text.
1. Woordomskrywing 2. 3. Algemene uitleg van Wet Oogmerk van Wet HOOFSTUK 2 DRYF VAN VERSEKERINGSBESIGHEID EN VERSEKERINGSGROEPBESIGHEID Deel 1 Algemene beginsels vir dryf van versekeringsbesigheid of versekeringsgroepbesigheid 4. Beginsels Deel 2 Versekeringsbesigheid en ander besigheid van versekeraars 5. Versekeringsbesigheid en beperkings op ander besigheid Deel 3 5 10 15 Takke van buitelandse herversekeraars en Lloyd’s-onderskrywers 6. Dryf van versekeringsbesigheid deur takke van buitelandse herversekeraars en Lloyd’s-onderskrywers 20 This gazette is also available free online at www.gpwonline.co.za - 4 Verify source ↗
No. 41388
AI-assisted research summary: This section heading relates to claims against branches of foreign reinsurers or Lloyd’s underwriters, and to insurance groups and insurer notification when becoming part of a group of companies.
4 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 4 7. Claims against branches of foreign reinsurers or Lloyd’s underwriters Part 4 Insurance groups Application of Part 8. 9. Notification by insurer on becoming part of group of companies - 55 Verify source ↗
Application of Companies Act to business rescue of insurers and controlling
AI-assisted research summary: This section heading says the Companies Act applies to business rescue of insurers and controlling companies, and refers to business rescue applications and resolutions and Part 4 on winding-up.
55. Application of Companies Act to business rescue of insurers and controlling companies Business rescue applications and resolutions 56. Part 4 Winding-up - 36 Verify source ↗
No. 41388
AI-assisted research summary: The insurer or controlling company must get Prudential Authority approval before certain share allotments, issues, registrations, or transfers involving a nominee or non-beneficial holder.
36 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 36 (a) key persons of the insurer or controlling company meeting the fit and proper requirements prescribed under this Act; and (b) any other licensing requirements and licensing conditions being met. (4) If the Prudential Authority is reasonably satisfied that the retention of a particular interest by a particular significant owner will be prejudicial to the insurer or controlling company, or to the policyholders of the insurer, the Prudential Authority may, in addition to any other action that the Prudential Authority may take in terms of this Act, after consultation with the insurer or controlling company and the particular significant owner direct that insurer, controlling company or significant owner to— (a) prepare and submit to the Prudential Authority a plan that is satisfactory to the Prudential Authority, under which the significant owner will, within a period that is acceptable to the Prudential Authority— (i) limit, with immediate effect, the voting rights that may be exercised by that owner by virtue of the proportion of the voting rights or the interest held; reduce the proportion of the voting rights or the interest held by that owner in the insurer or controlling company to a percentage specified; or (iii) cease to be a significant owner of the insurer or controlling company; and (ii) (b) on the Prudential Authority’s approval of the plan, implement the plan. (5) (a) Despite any other law, no person may, in respect of an interest in an insurer or a controlling company, or a related person of an insurer or a controlling company, issued to that person or registered in that person’s name contrary to this Act— (i) either personally or by proxy granted to another person, cast a vote attached to that interest; or receive a dividend or any other money in respect of that interest. (ii) (b) A resolution passed by an insurer or a controlling company contrary to paragraph (a)(i), or a payment referred to in paragraph (a)(ii), is void. (6) (a) Despite anything to the contrary in the Competition Act, 1998 (Act No. 89 of 1998), the Competition Commission may not make a decision in terms of section 13(5)(b) or 14(1)(b) of the Competition Act, and the Competition Tribunal may not make an order in terms of section 16(2) of the Competition Act, 1998, if— (i) (ii) the merger constitutes an acquisition of shares for which approval is required in terms of this section; and the Prudential Authority has, in the prescribed manner, issued a notice to the Commissioner specifying the names of the parties to the merger and certifying that the merger is a merger contemplated in subparagraph (i), and it is in the public interest that the merger is subject to the Financial Sector Regulation Act only. (b) Sections 13(6) and 14(2) of the Competition Act, 1998, do not apply to a merger in respect of which the Prudential Authority has issued a certificate contemplated in paragraph (a)(ii). (c) For the purposes of paragraphs (a) and (b), ‘merger’ means a merger as defined in section 12 of the Competition Act, 1998. Registration of shares in name of nominee 5 10 15 20 25 30 35 40 18. (1) An insurer that is a profit company registered under the Companies Act or a 45 controlling company may not, without the approval of the Prudential Authority— (a) allot or issue any of its shares to, or register any of its shares in the name of, (b) a person other than the intended holder of a beneficial interest; register a transfer of any of its shares to a person other than the intended holder of a beneficial interest. 50 (2) The Prudential Authority may prescribe the circumstances in which approval under subsection (1) is not required. This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 37 Versekeringswet, 2017 Wet No. 18 van 2017 37 (a) voldoening deur sleutelpersone van die versekeraar of beheermaatskappy aan vereistes vir geskiktheid en gepastheid kragtens hierdie Wet voorgeskryf; en en lisensiërings- (b) voldoening aan enige lisensiëringsvereistes ander voorwaardes (4) Indien die Voorsorgowerheid redelik oortuig is dat die behoud van ’n bepaalde belang deur ’n beduidende eienaar nadelig vir die versekeraar of beheermaatskappy, of vir die polishouers van die versekeraar, sal wees, kan die Voorsorgowerheid, bykomend tot enige ander stappe wat die Voorsorgowerheid ingevolge hierdie Wet kan doen, na oorleg met die versekeraar of beheermaatskappy en die bepaalde beduidende eienaar, gelas dat daardie versekeraar, beheermaatskappy of beduidende eienaar— (a) ’n plan ten genoeë van die Voorsorgowerheid aan die Voorsorgowerheid voorlê, waarkragtens die beduidende eienaar binne ’n tydperk wat vir die Voorsorgowerheid aanvaarbaar is— (i) met onmiddellike ingang, die stemregte beperk wat daardie eienaar uit hoofde van die verhouding van die stemregte of die belang gehou, mag uitoefen, beperk; (ii) die verhouding van die stemregte of die belang gehou deur daardie eienaar in die versekeraar of beheermaatskappy tot ’n gespesifiseerde persentasie verminder; of 5 10 15 (iii) ophou om ’n beduidende eienaar van die versekeraar of beheer- 20 maatskappy te wees; en (b) die plan uit te voer by die goedkeuring daarvan deur die Voorsorgowerheid. (5) (a) Ondanks enige ander wet, kan geen persoon, ten opsigte van ’n belang in ’n versekeraar of ’n beheermaatskappy, of ’n verwante persoon van ’n versekeraar of ’n beheermaatskappy, aan daardie persoon uitgereik of in daardie persoon se naam geregistreer in stryd met hierdie Wet— (i) hetsy persoonlik of per volmag aan iemand anders toegestaan, ’n stem bring wat aan daardie belang geheg is nie; of ’n dividend of enige ander geld ten opsigte van daardie belang, ontvang nie. (ii) (b) ’n Besluit deur ’n versekeraar of ’n beheermaatskappy deurgevoer in stryd met paragraaf (a)(i) of ’n betaling in paragraaf (a)(ii) bedoel, is nietig. (6) (a) Ondanks enige bepalings tot die teendeel in die Wet op Mededinging, 1998 (Wet No. 89 van 1998), mag die Mededingingskommissie nie ’n besluit ingevolge artikel 13(5)(b) of 14(1)(b) van die Wet op Mededinging, 1998, neem nie, en die ingevolge artikel 16(2) van die Wet op Kompetisietribunaal mag nie ’n bevel Mededinging, 1998, gee nie indien— (i) die samesmelting ’n verkryging van aandele daarstel waarvoor goedkeuring ingevolge hierdie artikel vereis word; en (ii) die Voorsorgowerheid, op die voorgeskrewe wyse, ’n kennisgewing aan die Kommissaris uitgereik het wat die name van die partye tot die samesmelting vermeld en wat sertifiseer dat die samesmelting ’n samesmelting beoog in subparagraaf (i) is en dit in die openbare belang is dat die samesmelting slegs aan die ‘‘Financial Sector Regulation Act’’ onderhewig is. (b) Artikels 13(6) en 14(2) van die Wet op Mededinging, 1998, is nie van toepassing in op ’n samesmelting ten opsigte waarvan die Voorsorgowerheid ’n sertifikaat paragraaf (a)(ii) beoog, uitgereik het nie. (c) By die toepassing van paragrawe (a) en (b), beteken ‘‘samesmelting’’ ’n samesmelting soos omskryf in artikel 12 van die Wet op Mededinging, 1998. Registrasie van aandele in naam van benoemde 18. (1) ’n Versekeraar wat ’n maatskappy met winsbejag kragtens die Maatskappywet geregistreer is, of ’n beheermaatskappy mag nie, sonder die goedkeuring van die Voorsorgowerheid— (a) enige van sy aandele toewys of uitreik aan, of enige van sy aandele registreer in die naam van ’n persoon behalwe die beoogde houer van ’n voordelige belang nie; ’n oordrag van enige van sy aandele aan ’n persoon behalwe ’n beoogde houer van ’n voordelige belang, registreer nie. (b) (2) Die Voorsorgowerheid kan die omstandighede waaronder goedkeuring kragtens subartikel (1) nie vereis word nie, voorskryf. 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za - 38 Verify source ↗
No. 41388
AI-assisted research summary: The Prudential Authority may direct an insurer or controlling company to fix a key person’s fit-and-proper non-compliance, and may take further action if the insurer does not comply.
38 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 38 Part 4 Key persons or significant owners not fit and proper Key person or significant owner not fit and proper or no longer fit and proper 19. (1) The Prudential Authority may, if the Prudential Authority reasonably believes that a key person does not comply or no longer complies with the fit and proper requirements, in addition to any other action that the Prudential Authority may take under this Act, direct the insurer or controlling company to make arrangements to the satisfaction of the Prudential Authority to address the non-compliance, which arrangements may include— (a) providing additional education or training to that key person; (b) utilising external resources to support that key person; (c) outsourcing the functions and duties of that key person; or (d) suspending or removing a person from the appointment as a key person. (2) If an insurer fails to make arrangements contemplated in subsection (1) to address the non-compliance of a key person with the fit and proper requirements prescribed, the Prudential Authority, in addition to any other action that the Prudential Authority may take under this Act, may— (a) impose additional reporting requirements on the insurer or controlling company; or (b) vary the licensing conditions of the insurer or controlling company; or suspend or withdraw the licence of the insurer or controlling company. (c) (3) The Prudential Authority may, if the Prudential Authority reasonably believes that a significant owner does not meet or no longer meets the fit and proper requirements, in addition to any other action that the Prudential Authority may take, take any of the actions referred to in section 17(4). Assessing if key person or significant owner is fit and proper - 86 Verify source ↗
No. 41388
AI-assisted research summary: The Prudential Authority must decide certain approval applications within 14 days, can require court action if approval is refused, and a business rescue practitioner of an insurer may not start new insurance policies without prior approval.
86 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 86 (c) The Prudential Authority must grant or refuse an application for approval of a resolution within 14 days of the date on which the application was submitted to the Prudential Authority, or such longer period agreed between the Prudential Authority and the applicant. (d) If the Prudential Authority requested additional information in terms of section 60(4)(a)(i), then the period between the date on which the additional information was requested and when the information was provided to the Prudential Authority is not considered when determining the 14 days referred to in paragraph (c). (e) Any resolution of an insurer or a controlling company that is not approved by the Prudential Authority under paragraphs (a) or (b), is void. (4) Despite the provisions of the Companies Act, the following acts are subject to the approval of the Prudential Authority: (a) The appointment of a business rescue practitioner; and (b) the adoption of a business rescue plan. (5) Despite the provisions of the Companies Act, if the Prudential Authority does not approve a resolution referred to in subsection (3)(a) or (b), or the appointment or plan referred to in subsection (4)(a) or (b), the Prudential Authority must apply to court— for the winding-up of the insurer or controlling company under section 58; or to place the insurer or controlling company under curatorship in terms of section 54. (a) (b) (6) As from the date on which a business rescue practitioner is appointed, the business rescue practitioner of an insurer may not enter into any new insurance policies with policyholders or insurance policies with new policyholders, unless the practitioner has been granted prior approval to do so by the Prudential Authority. Part 4 Winding-up Application of Companies Act to winding-up of insurers and controlling companies 57. (1) Despite any other law under which an insurer is incorporated, sections 79 to 81 of, and item 9 of Schedule 5 to, the Companies Act shall, subject to this section and with the necessary changes, apply in relation to the winding-up of an insurer or a controlling company, and to the exclusion of any similar provisions under the Co-operatives Act or any other law under which an insurer or controlling company is established or incorporated, and in such application the Prudential Authority is deemed to be a person authorised under the Companies Act to make an application to the court for the winding-up thereof. (2) In the application of sections 79 to 81 of, and item 9 of Schedule 5 to, the Companies Act as provided by subsection (1)— (a) a reference which relates to the inability of an insurer or a controlling company to pay its debts must be construed as relating also to its inability to comply with the financial soundness requirements of this Act; (c) (b) a reference to an insurer or a controlling company in this section and section 58 must, for the purposes of the application of sections 79, 80 and 81 of the Companies Act, be construed as a reference to a financially sound insurer or a financially sound controlling company; in addition to any question whether it is just and equitable that an insurer or a controlling company should be wound-up, there must be considered also the question whether it is in the interest of the policyholders of an insurer or, in the case of a controlling company, the interests of policyholders of the insurers that are part of the insurance group that it should be wound-up; the references to the Commissioner, Commission, Master or Panel must be construed as a reference also to the Prudential Authority; and the requirement to give security does not apply where the Prudential Authority makes the application to court. (d) (e) 5 10 15 20 25 30 35 40 45 50 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 87 Versekeringswet, 2017 Wet No. 18 van 2017 87 (c) Die Voorsorgowerheid moet ’n aansoek om goedkeuring van ’n besluit toestaan of weier binne 14 dae vanaf die datum van voorlegging van die aansoek aan die Voorsorgowerheid, of sodanige langer tydperk waarop die Voorsorgowerheid en die applikant ooreenkom. (d) Indien die Voorsorgowerheid bykomende inligting ingevolge artikel 60(4)(a)(i) aangevra het, word die tydperk tussen die datum waarop die bykomende inligting aangevra is en wanneer die inligting aan die Voorsorgowerheid voorsien is, nie in ag geneem wanneer die 14 dae in paragraaf (c) bedoel, bepaal word nie. (e) ’n Besluit van ’n versekeraar of ’n beheermaatskappy wat nie kragtens paragrawe (a) of (b) deur die Voorsorgowerheid goedgekeur is nie, is nietig. (4) Ondanks die bepalings van die Maatskappywet, is die volgende stappe aan die goedkeuring van die Voorsorgowerheid onderhewig: (a) Die aanstelling van ’n ondernemingreddingspraktisyn; en (b) die aanvaarding van ’n ondernemingreddingsplan. (5) Ondanks die bepalings van die Maatskappywet, indien die Voorsorgowerheid nie ’n besluit in subartikel (3)(a) of (b) bedoel, of die aanstelling of plan in subartikel (4)(a) of (b), goedkeur nie, moet die Voorsorgowerheid by die hof aansoek doen— (a) om die likwidasie van die versekeraar of beheermaatskappy kragtens artikel 5 10 15 58; of (b) om die versekeraar of beheermaatskappy ingevolge artikel 54 onder kuratele 20 te plaas. (6) Met ingang van die datum waarop ’n ondernemingreddingspraktisyn aangestel word, kan die ondernemingreddingspraktisyn van ’n versekeraar geen nuwe versekeringspolisse met polishouers of versekeringspolisse met nuwe polishouers afsluit nie, tensy die praktisyn vooraf goedkeuring van die Voorsorgowerheid gekry het om dit te doen. 25 Deel 4 Likwidasie Toepassing van Maatskappywet op likwidasie van versekeraars en beheer- maatskappye 30 57. (1) Ondanks enige ander wet waarkragtens ’n versekeraar ingelyf is, is artikels 79 tot 81 van, en item 9 van Bylae 5 tot, die Maatskappywet, behoudens hierdie artikel en met die nodige veranderinge, van toepassing in verband met die likwidasie van ’n versekeraar of ’n beheermaatskappy, en tot uitsluiting van enige soortgelyke bepalings kragtens die ‘‘Co-operatives Act’’ of enige ander wet waarkragtens ’n versekeraar of is, en in sodanige toepassing word die beheermaatskappy ingestel of Voorsorgowerheid geag ’n persoon te wees wat kragtens die Maatskappywet gemagtig is om die aansoek by die hof te doen om die likwidasie daarvan. ingelyf (2) By die toepassing van artikels 79 tot 81 van, en item 9 van Bylae 5 tot, die Maatskappywet soos bepaal deur subartikel (1)— (a) moet ’n verwysing wat verband hou met die versekeraar of beheermaatskappy se onvermoë om sy skuld te delg, uitgelê word as dat dit ook verband hou met sy onvermoë om aan hierdie Wet se vereistes vir finansiële gesondheid te voldoen; ’n verwysing na ’n versekeraar of ’n beheermaatskappy in hierdie artikel en artikel 58 moet, by die toepassing van artikels 79, 80 en 81 van die Maatskappywet, uitgelê word as ’n verwysing na ’n finansieel gesonde versekeraar of finansieel gesonde beheermaatskappy; (b) (c) benewens enige vraag hetsy dit regverdig en billik is dat ’n versekeraar of ’n beheermaatskappy gelikwideer word, moet ook oorweeg word of dit in die belang is van die polishouers van ’n versekeraar of, in die geval van ’n beheermaatskappy, die belang van polishouers of die versekeraars wat deel van die versekeringsgroep is, dat die versekeraar of beheermaatskappy gelikwideer word; 35 40 45 50 (d) die verwysings na die Kommissaris, Kommissie, Meester of Paneel moet 55 uitgelê word as ’n verwysing ook na die Voorsorgowerheid; en (e) die vereiste om waarborg te gee is nie van toepassing waar die Voorsorgowerheid die aansoek by die hof doen nie. This gazette is also available free online at www.gpwonline.co.za
Part
Part 4
- 10 Verify source ↗
Designation of insurance group and licensing of controlling company
AI-assisted research summary: Section heading listing designation of an insurance group, licensing of a controlling company, board responsibility, transparent insurance group structure, and chapter headings on key persons and significant owners.
10. Designation of insurance group and licensing of controlling company 11. 12. Responsibility of board of directors of controlling company Transparent insurance group structure CHAPTER 3 KEY PERSONS AND SIGNIFICANT OWNERS Part 1 Fit and proper requirements 13. Fit and proper requirements for key persons and significant owners Part 2 Appointment and termination of key persons - 19 Verify source ↗
Key person or significant owner not fit and proper or no longer fit and proper
AI-assisted research summary: This section concerns a key person or significant owner being fit and proper, or no longer fit and proper.
19. Key person or significant owner not fit and proper or no longer fit and proper - 20 Verify source ↗
Assessing if key person or significant owner is fit and proper
AI-assisted research summary: This section concerns assessing whether a key person or significant owner is fit and proper.
20. Assessing if key person or significant owner is fit and proper CHAPTER 4 LICENSING, SUSPENSION AND WITHDRAWAL OF LICENCE Requirements for licence Licensing Lloyd’s underwriters and Lloyd’s licensed Licence conditions - 57 Verify source ↗
Application of Companies Act to winding-up of insurers and controlling
AI-assisted research summary: This section concerns how the Companies Act applies when insurers and controlling companies are being wound up.
57. Application of Companies Act to winding-up of insurers and controlling companies - 58 Verify source ↗
Winding-up applications and resolutions
AI-assisted research summary: Section title only: winding-up applications and resolutions.
58. Winding-up applications and resolutions - 59 Verify source ↗
Winding-up of trusts referred to in section 41
AI-assisted research summary: Section heading for the winding-up of trusts referred to in section 41.
59. Winding-up of trusts referred to in section 41 CHAPTER 10 ADMINISTRATION OF ACT Part 1 Applications and notifications - 8 Verify source ↗
This Part does not apply to branches of foreign reinsurers, Lloyd’s underwriters or
AI-assisted research summary: This Part does not apply to branches of foreign reinsurers, Lloyd’s underwriters, or Lloyd’s.
8. This Part does not apply to branches of foreign reinsurers, Lloyd’s underwriters or 45 Lloyd’s. This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 29 29 Deel 3 Takke van buitelandse herversekeraars en Lloyd’s-onderskrywers Dryf van versekeringsbesigheid deur takke van buitelandse herversekeraars en Lloyd’s-onderskrywers 6. (1) ’n Buitelandse herversekeraar kan versekeringsbesigheid in die Republiek dryf deur ’n tak van daardie buitelandse herversekeraar indien die buitelandse her- versekeraar— (a) (b) ooreenkomstig Hoofstuk 5 ’n verteenwoordigende kantoor in die Republiek ’n lisensie kragtens Hoofstuk 4 kry; instel; en (c) ooreenkomstig Hoofstuk 6 ’n trust in die Republiek instel. (2) ’n Lloyd’s-onderskrywer kan versekeringsbesigheid in die Republiek verrig indien Lloyd’s— (a) ooreenkomstig Hoofstuk 5 ’n verteenwoordigende kantoor in die Republiek instel; en (b) ooreenkomstig Hoofstuk 6 ’n trust in die Republiek instel. (3) Al die artikels van hierdie Wet is van toepassing op ’n tak van ’n buitelandse herversekeraar, ’n Lloyd’s-onderskrywer en Lloyd’s, tensy hierdie Wet spesifiek anders bepaal. 5 10 15 Eise teen takke van buitelandse herversekeraars of Lloyd’s-onderskrywers 20 7. (1) (a) Enige eis teen ’n tak van ’n buitelandse herversekeraar of ’n Lloyd’s-onderskrywer ten opsigte van ’n versekeringspolis in verband met die versekeringsbesigheid waarvoor dit kragtens hierdie Wet gelisensieer is, moet deur enige bevoegde hof in die Republiek erken word. (b) In enige aksie of ander verrigtinge kragtens subartikel (1) ingestel, kan die verteenwoordiger in artikel 34 bedoel, as die nominale verweerder of respondent aangegee word, en die dagvaarding of aansoek wat die verrigtinge begin, kan aan hom of haar beteken word. (c) Die verteenwoordiger kan enige verrigtinge voor ’n bevoegde hof in die Republiek instel en voer as ’n nominale eiser of ’n aansoeker namens die tak van ’n buitelandse herversekeraar, of ’n Lloyd’s-onderskrywer. (2) Die trust in artikel 41 bedoel moet— (a) aan die versekeringsverbintenisse kragtens ’n versekeringspolis in subartikel (1) bedoel, voldoen, indien ’n tak van buitelandse herversekeraar of ’n Lloyd’s-onderskrywer versuim om aan enige versekeringsverbintenisse kragtens daardie versekeringspolis te voldoen nadat— (i) ’n hof ’n finale beslissing ten opsigte van ’n eis gegee het; of (ii) die Voorsorgowerheid die betaling van daardie eis gelas het, en enige heroorwegings- of hersieningsverrigtinge daartoe afgehandel is of nie in die toegelate tydperk ingestel is nie; of ’n boete kragtens hierdie Wet of kragtens die ‘‘Financial Sector Regulation Act’’ opgelê, betaal, indien ’n tak van ’n buitelandse herversekeraar, Lloyd’s of ’n Lloyd’s-onderskrywer versuim om daardie boete binne die tyd wat vir betaling toegelaat is, te betaal, en enige heroorwegings- of hersienings- verrigtinge in verband daarmee nie afgehandel is nie of nie ingestel is binne die toegelate tydperk nie. (b) 25 30 35 40 45 Deel 4 Versekeringsgroepe Toepassing van Deel - 8 Verify source ↗
Hierdie Deel is nie van toepassing op takke van buitelandse herversekeraars,
AI-assisted research summary: This Part does not apply to branches of foreign reinsurers, Lloyd’s underwriters, or Lloyd’s.
8. Hierdie Deel is nie van toepassing op takke van buitelandse herversekeraars, 50 Lloyd’s-onderskrywers of Lloyd’s nie. This gazette is also available free online at www.gpwonline.co.za - 30 Verify source ↗
No. 41388
AI-assisted research summary: This section concerns notification by an insurer when it becomes part of a group of companies.
30 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 30 Notification by insurer on becoming part of group of companies - 9 Verify source ↗
An insurer must, within 30 days of becoming part of a group of companies, notify
AI-assisted research summary: An insurer must notify the Prudential Authority within 30 days of joining a group of companies.
9. An insurer must, within 30 days of becoming part of a group of companies, notify the Prudential Authority thereof. Designation of insurance group and licensing of controlling company 10. (1) (a) The Prudential Authority may, for the purpose of facilitating the prudential 5 supervision of insurers, designate as an insurance group— (i) (ii) (iii) an insurer; any juristic person that is part of the group of companies of which the insurer is a part; and any associate, or related or inter-related person of any juristic person that is part of the group of companies referred to in subparagraph (ii). (b) An insurance group designated in terms of paragraph (a) need not include all the juristic persons, associates, or related and inter-related persons referred to in paragraph (a). (2) The Prudential Authority must as part of designating an insurance group also designate the holding company or juristic person that must apply for a licence as a controlling company of that insurance group under Chapter 4. (3) The holding company of, or another juristic person that controls, an insurance group designated under subsection (1) and which is located in the Republic must, within 30 days of the designation, apply to be licensed as a controlling company of that insurance group under Chapter 4. (4) The Prudential Authority must keep designations in terms of subsection (1) under review, including if the Prudential Authority becomes aware of a change in the risk profile of the designated insurance group. (5) The Prudential Authority may amend or revoke a designation in terms of subsection (1) if the Prudential Authority becomes aware of a change in the risk profile of any juristic person that is part of the designated insurance group. (6) The Prudential Authority must publish a notice on the official website of each designation and each amendment and revocation of a designation under subsection (1), (2) or (5). Responsibility of board of directors of controlling company 11. (1) The board of directors of a controlling company is responsible for meeting the requirements imposed on a controlling company and an insurance group under this Act. (2) The board of directors of a controlling company must, as soon as reasonably possible, notify the Prudential Authority of any change in the structure or material change in the risk profile of the insurance group that may impact on the scope of the insurance group designated under section 10. Transparent insurance group structure 12. (1) The Prudential Authority may, for the purpose of facilitating the prudential supervision of the insurance group or any insurer that is part of the insurance group, direct a controlling company to amend the structure of the insurance group, in accordance with a plan submitted to and approved by the Prudential Authority, within a period agreed by the Prudential Authority. (2) (a) The controlling company whose restructuring plan was approved as contemplated in subsection (1) must submit a monthly progress report to the Prudential Authority that sets out the measures taken and the progress made with implementing the restructuring plan. (b) The Prudential Authority may restrict or prohibit certain activities or transactions of the insurance group until the restructuring plan is implemented. 10 15 20 25 30 35 40 45 (3) The Prudential Authority may take such regulatory action that the Prudential 50 Authority determines is necessary and appropriate if— (a) the Prudential Authority does not approve the restructuring plan; or This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 31 Versekeringswet, 2017 Wet No. 18 van 2017 31 Kennisgewing deur versekeraar by deelwording van groep maatskappye 9. ’n Versekeraar moet, binne 30 dae na deelwording van ’n groep maatskappye, die Voorsorgowerheid daarvan in kennis stel. Aanwysing van versekeringsgroep en lisensiëring van beheermaatskappy 10. (1) (a) Die Voorsorgowerheid kan, ten einde voorsorgtoesig oor versekeraars te 5 vergemaklik— (i) (ii) (iii) ’n versekeraar; enige regspersoon wat deel versekeraar deel is; en enige vennoot, of verwante of interverwante persoon of enige regspersoon wat deel is van die groep maatskappye in paragraaf (ii) bedoel, is van die groep maatskappye waarvan die as ’n versekeringsgroep aanwys. (b) ’n Versekeringsgroep ingevolge paragraaf (a) aangewys, hoef nie al die regspersone, vennote of verwante en interverwante persone in paragraaf (a) beoog, in te sluit nie. (2) Die Voorsorgowerheid moet as deel van die aanwysing van ’n versekeringsgroep ook die beherende maatskappy of regspersoon aanwys wat moet aansoek doen om ’n lisensie as ’n beheermaatskappy van daardie versekeringsgroep kragtens Hoofstuk 4. (3) Die beherende maatskappy van, of ’n ander regspersoon wat ’n versekeringsgroep aangewys kragtens subartikel (1) beheer, moet binne 30 dae vanaf die aanwysing aansoek doen om kragtens Hoofstuk 4 as ’n beheermaatskappy van daardie versekeringsgroep gelisensieer te word. (4) Die Voorsorgowerheid moet oorsig doen oor aanwysings ingevolge subartikel (1), met inbegrip van wanneer die Voorsorgowerheid bewus word van ’n verandering in die risiko-profiel van die aangewese versekeringsgroep. (5) Die Voorsorgowerheid mag ’n aanwysing ingevolge subartikel (1) wysig of terugtrek indien die Voorsorgmaatskappy bewus word van ’n verandering in die risikoprofiel van enige regspersoon wat deel van die aangewese versekeringsgroep is. (6) Die Voorsorgowerheid moet ’n kennisgewing van elke aanwysing en elke wysiging en terugtrekking van ’n aanwysing kragtens subartikel (1), (2) of (5) op die amptelike webwerf publiseer. 10 15 20 25 30 Verantwoordelikheid van direksie van beheermaatskappy 11. (1) Die direksie van ’n beheermaatskappy is verantwoordelik vir die nakoming van die vereistes kragtens hierdie Wet aan ’n beheermaatskappy en ’n versekeringsgroep opgelê. 35 (2) Die direksie van ’n beheermaatskappy moet, so gou as redelik moontlik, die Voorsorgowerheid in kennis stel van enige verandering in die risikoprofiel van die versekeringsgroep wat ’n invloed op die bestek van die versekeringsgroep kragtens artikel 10 aangewys, kan hê. Deursigtige struktuur vir versekeringsgroep 12. (1) Die Voorsorgowerheid kan, ten einde voorsorgtoesig oor die versekerings- groep of enige versekeraar wat deel is van die versekeringsgroep, te vergemaklik, ’n beheermaatskappy opdrag gee om die struktuur van die versekeringsgroep te wysig, ooreenkomstig ’n plan binne ’n tydperk waartoe die Voorsorgowerheid ingestem het, aan die Voorsorgowerheid voorgelê en deur die Voorsorgowerheid goedgekeur. (2) (a) Die beheermaatskappy wie se herstruktureringsplan goedgekeur is soos in subartikel (1) beoog, moet ’n maandelikse vorderingsverslag aan die Voorsorgowerheid voorlê wat die stappe wat gedoen is en die vordering wat gemaak is met die inwerkingstelling van die herstruktureringsplan, uiteensit. 40 45 (b) Die Voorsorgowerheid kan sekere aktiwiteite of transaksies van die versekerings- 50 groep beperk of belet totdat die herstruktureringsplan in werking gestel is. (3) Die Voorsorgowerheid kan sodanige regulerende stappe doen wat die Voorsorg- owerheid vasstel nodig en gepas is indien— (a) die Voorsorgowerheid nie die herstruktureringsplan goedkeur nie; of This gazette is also available free online at www.gpwonline.co.za - 32 Verify source ↗
No. 41388
AI-assisted research summary: The section lets the Prudential Authority set fit-and-proper requirements, requires key persons and significant owners to meet them, and requires approval for certain key-person appointments. It also requires insurance-group members to give information to the controlling company and requires controlling companies to put binding rules or agreements in place.
32 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 32 (b) the controlling company— (i) (ii) (iii) fails to submit a restructuring plan; fails to report as provided for under subsection (2)(a); or fails to implement an approved restructuring plan. (4) (a) Any juristic person that is part of an insurance group, including any insurer, must, on demand by the controlling company, provide any information to the controlling company that is needed to enable the controlling company to comply with its obligations in terms of this Act. (b) To give effect to paragraph (a), a controlling company must impose binding corporate rules on, or enter into a binding agreement with, every juristic person that is part of the insurance group, that includes terms regarding the processing of information, including personal information, within the insurance group. CHAPTER 3 KEY PERSONS AND SIGNIFICANT OWNERS Part 1 Fit and proper requirements 5 10 15 Fit and proper requirements for key persons and significant owners 13. (1) The Prudential Authority may prescribe fit and proper requirements for key persons and significant owners of an insurer or a controlling company. (2) Key persons and significant owners must, at all times, comply with the prescribed 20 fit and proper requirements. Part 2 Appointment and termination of key persons Approval of appointment of certain key persons 14. (1) The appointment of any of the following key persons must be approved by the Prudential Authority, and takes effect only if the Prudential Authority approves the appointment: (a) In the case of an insurer (other than a branch of a foreign reinsurer, a Lloyd’s underwriter or Lloyd’s) or a controlling company, a director and an auditor referred to in section 32; and in the case of a branch of a foreign reinsurer or Lloyd’s— (i) an auditor referred to in section 32; (ii) a representative and a deputy representative of Lloyd’s or a branch of a (b) foreign reinsurer referred to in section 34; and (iii) a trustee of a trust referred to in section 41. (2) (a) In the case of an auditor, subsection (1) does not apply in respect of the reappointment of an auditor that does not involve a break in the continuity of the appointment. (b) Where the appointed auditor is a firm defined under the Auditing Profession Act, both the firm and the partner that takes responsibility for compliance with section 32 must be approved by the Prudential Authority. (c) The Prudential Authority’s approval of a firm as defined under the Auditing Profession Act does not lapse by reason of a change in the membership of the firm if at least half of the members of the firm, after the change, were members when the appointment of the firm was approved by the Prudential Authority, and the partner that takes responsibility for compliance with section 32 is not affected by this change. 25 30 35 40 45 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 33 Versekeringswet, 2017 Wet No. 18 van 2017 33 (b) die beheermaatskappy— (i) versuim om ’n herstruktureringsplan voor te lê; (ii) versuim om verslag te doen soos in subartikel (2)(a) voor voorsiening gemaak; of (iii) versuim om ’n goedgekeurde herstruktureringsplan in werking te stel. 5 (4) (a) Enige regspersoon wat deel van ’n versekeringsgroep is, met inbegrip van enige versekeraar, moet, indien die beheermaatskappy dit vereis, enige inligting aan die beheermaatskappy voorsien wat nodig is sodat die beheermaatskappy kan voldoen aan die beheermaatskappy se verpligtinge ingevolge hierdie Wet. (b) Om aan paragraaf (a) gevolg te gee, moet ’n beheermaatskappy bindende korporatiewe reëls oplê aan, of ’n bindende ooreenkoms aangaan met, elke regspersoon wat deel van die versekeringsgroep is, met inbegrip van bedinge oor die verwerking van inligting, met inbegrip van persoonlike inligting, binne die versekeringsgroep. 10 HOOFSTUK 3 SLEUTELPERSONE EN BEDUIDENDE EIENAARS 15 Deel 1 Vereistes vir geskiktheid en gepastheid Vereistes vir geskiktheid en gepastheid vir sleutelpersone en beduidende eienaars 13. (1) Die Voorsorgowerheid kan vereistes vir geskiktheid en gepastheid vir sleutelpersone en beduidende eienaars van ’n versekeraar of ’n beheermaatskappy voorskryf. 20 (2) Sleutelpersone en beduidende eienaars moet te alle tye voldoen aan die vereistes vir geskiktheid en gepastheid. Deel 2 Aanstellings en beëindiging van aanstelling van sleutelpersone 25 Goedkeuring van aanstelling van sekere sleutelpersone 14. (1) Die aanstelling van enige van die volgende sleutelpersone moet deur die en word slegs van krag indien die Voorsorgowerheid goedgekeur word, Voorsorgowerheid die aanstelling goedkeur: (a) (b) In die geval van ’n versekeraar (behalwe ’n tak van ’n buitelandse herversekeraar, ’n Lloyd’s-onderskrywer of Lloyd’s) of ’n beheermaatskappy, ’n direkteur en ’n ouditeur in artikel 32 bedoel; en in die geval van ’n tak van ’n buitelandse herversekeraar of Lloyd’s— (i) (ii) ’n ouditeur in artikel 32 bedoel; ’n verteenwoordiger en ’n adjunkverteenwoordiger van Lloyd’s of ’n tak van ’n buitelandse herversekeraar in artikel 34 bedoel; en ’n trustee van ’n trust in artikel 41 bedoel. (iii) (2) (a) In die geval van ’n ouditeur, is subartikel (1) nie van toepassing nie ten opsigte van ’n heraanstelling van ’n ouditeur wat nie ’n breek in die kontinuïteit van die aanstelling behels nie. (b) Waar die aangestelde ouditeur ’n firma is wat kragtens die ‘‘Auditing Profession Act’’ omskryf is, moet die firma sowel as die vennoot wat verantwoordelikheid vir voldoening aan artikel 32 neem, deur die Voorsorgowerheid goedgekeur word. (c) Die Voorsorgowerheid se goedkeuring van ’n firma soos omskryf kragtens die ‘‘Auditing Profession Act’’, verval nie weens ’n verandering in die lidmaatskap van die firma nie indien ten minste die helfte van die lede van die firma, na die verandering, lede was toe die aanstelling van die firma deur die Voorsorgowerheid goedgekeur is, en die vennoot wat verantwoordelikheid vir voldoening aan artikel 32 neem, nie deur hierdie verandering geraak is nie. 30 35 40 45 This gazette is also available free online at www.gpwonline.co.za - 20 Verify source ↗
The Prudential Authority, in assessing if a key person or significant owner is fit
AI-assisted research summary: The Prudential Authority may ask for verification of information, or verify information itself, when assessing whether a key person or significant owner is fit and proper.
20. The Prudential Authority, in assessing if a key person or significant owner is fit and proper or continues to be fit and proper, may request the verification of information, or may verify information at the Prudential Authority’s disposal by making enquiries to any organ of state, credit bureau or other source of relevant information concerning that key person or significant owner. 5 10 15 20 25 30 CHAPTER 4 LICENSING, SUSPENSION AND WITHDRAWAL OF LICENCE Application of Chapter - 88 Verify source ↗
No. 41388
AI-assisted research summary: The Prudential Authority can control or block winding-up steps for insurers, controlling companies, and certain trusts, and courts must not proceed without the required notice to the Authority.
88 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 Winding-up applications and resolutions 88 58. (1) The Prudential Authority may make an application under the Companies Act for the winding-up of an insurer or a controlling company, if the Prudential Authority reasonably believes that it is in the interests of the policyholders of that insurer or, in the case of a controlling company, it is in the interests of policyholders of the insurers that are part of the insurance group to do so. (i) (2) (a) If an application to the court for or in respect of the winding-up of an insurer or a controlling company is made by any person other than the Prudential Authority— the application may not be heard unless copies of the notice of motion and of all accompanying affidavits and other documents filed in support of the application are lodged with the Prudential Authority at least 14 days, or such shorter period as the court may allow on good cause shown, before the application is set down for hearing; and the Prudential Authority may, if the Prudential Authority reasonably believes that the application is contrary to the interests of the policyholders of the insurer concerned or, in the case of a controlling company, the interests of policyholders of the insurers that are part of the insurance group, join the application as a party and file affidavits and other documents in opposition to the application. (ii) (b) The court may only grant an order relating to the winding-up of an insurer or a controlling company if the Prudential Authority has been notified of the application as required in paragraph (a)(i). (3) (a) Any resolution of an insurer or a controlling company to begin winding-up proceedings is subject to the approval of the Prudential Authority. 5 10 15 20 (b) An insurer or a controlling company may file a resolution under section 80 of the Companies Act only after the Prudential Authority has approved the resolution. 25 (c) The Prudential Authority must grant or refuse an application for approval of a resolution within 14 days of the date on which the application was submitted to the Prudential Authority, or such longer period agreed between the Prudential Authority and the applicant. (d) If the Prudential Authority requested additional information in terms of section 60(4)(a)(i), then the period between the date on which the additional information was requested and when the information was provided to the Prudential Authority is not considered when determining the 14 days referred to in paragraph (c). (e) Any resolution of an insurer or a controlling company that is not approved by the Prudential Authority under paragraph (a) or (b) is void. (4) Despite the provisions of the Companies Act, the appointment of a trustee or a liquidator is subject to the approval of the Prudential Authority. (5) Despite the provisions of the Companies Act, if the Prudential Authority does not approve a resolution referred to in subsection (3)(a) or (b), or the appointment referred to in subsection (4), the Prudential Authority may apply to court to place that person under curatorship in terms of the Financial Institutions (Protection of Funds) Act. Winding-up of trusts referred to in section 41 59. (1) (a) Despite the Trust Property Control Act, 1988 (Act No. 57 of 1988), item 9 of Schedule 5 to the Companies Act shall, subject to this section and with the necessary changes, apply in relation to the winding-up of a trust referred to in section 41, to the exclusion of Trust Property Control Act, 1988, and in such application the Prudential Authority is deemed to be the person authorised under the Companies Act to make an application to the court for the winding-up thereof. (b) The Prudential Authority may make an application under the Companies Act for the winding-up of a trust referred to in section 41, if the Prudential Authority reasonably believes that it is in the interests of the policyholders of a branch of a foreign reinsurer or Lloyd’s underwriters to do so. (c) If an application to the court for or in respect of the winding-up of a trust referred to in section 41 is made by any person other than the Prudential Authority— 30 35 40 45 50 (i) the application may not be heard unless copies of the notice of motion and of all accompanying affidavits and other documents filed in support of the application 55 This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 89 Likwidasie-aansoeke en -besluite 89 58. (1) Die Voorsorgowerheid kan ’n aansoek kragtens die Maatskappywet doen om die likwidasie van ’n versekeraar of beheermaatskappy, indien die Voorsorgowerheid redelikerwys van mening is dat dit in die belang van die polishouers van daardie versekeraar is of, in die geval van ’n beheermaatskappy, dit in die belang van die polishouers van die versekeraars wat deel van die versekeringsgroep is om dit te doen. (2) (a) Indien ’n aansoek by die hof om of ten opsigte van die likwidasie van ’n beheermaatskappy deur enige persoon behalwe die Voorsorgowerheid gedoen word— (i) kan die aansoek nie aangehoor word tensy afskrifte van die kennisgewing van mosie en van alle gepaardgaande beëdigde verklarings en ander dokumente wat ter ondersteuning van die aansoek ingedien is, minstens 14 dae voor die aansoek verhoor gaan word, of sodanige korter tydperk wat die hof by die aanvoer van goeie gronde kan toelaat, by die Voorsorgowerheid ingedien word; en (ii) kan die Voorsorgowerheid, indien die Voorsorgowerheid redelikerwys van mening is dat die aansoek onbestaanbaar is met die belange van die polishouers van die betrokke versekeraar of, in die geval van ’n beheermaatskappy, die belange van polishouers van die versekeraars wat deel van die versekerings- groep is, by die aansoek aansluit as ’n party en beëdigde verklarings en ander dokumente in teenstand teen die aansoek indien. (b) Die hof kan slegs ’n bevel aangaande die likwidasie van ’n versekeraar of ’n beheermaatskappy toestaan indien die Voorsorgowerheid van die aansoek in kennis gestel is soos in paragraaf (a)(i) vereis. (3) (a) Enige besluit van ’n versekeraar of ’n beheermaatskappy om likwidasie- verrigtinge te begin is onderhewig aan die goedkeuring van die Voorsorgowerheid. 5 10 15 20 (b) ’n Versekeraar of ’n beheermaatskappy kan ’n besluit kragtens artikel 80 van die 25 Maatskappywet slegs indien nadat die Voorsorgowerheid die besluit goedgekeur het. (c) Die Voorsorgowerheid moet ’n aansoek om goedkeuring van ’n besluit goedkeur of weier binne 14 dae vanaf die datum waarop die aansoek aan die Voorsorgowerheid voorgelê is, of sodanige langer datum waarop die Voorsorgowerheid en die applikant ooreenkom. (d) Indien die Voorsorgowerheid ingevolge artikel 60(4)(a)(i) bykomende inligting aangevra het, word die tydperk tussen die datum waarop die bykomende inligting aangevra is en wanneer die inligting aan die Voorsorgowerheid voorsien is, nie oorweeg wanneer die 14 dae in paragraaf (c) bedoel, bepaal word nie. 30 (e) ’n Besluit van ’n versekeraar of ’n beheermaatskappy wat nie kragtens paragraaf 35 (a) of (b) deur die Voorsorgowerheid goedgekeur is nie, is nietig. (4) Ondanks die bepalings van die Maatskappywet, is die aanstelling van ’n trustee of ’n likwidateur onderhewig aan die goedkeuring van die Voorsorgowerheid. (5) Ondanks die bepalings van die Maatskappywet, indien die Voorsorgowerheid ’n besluit in subartikel (3)(a) of (b) bedoel, of die aanstelling in subartikel (4) bedoel nie goedkeur nie, kan die Voorsorgowerheid by die hof aansoek doen dat daardie persoon ingevolge die Wet op Finansiële Instellings (Beskerming van Fondse) onder kuratele geplaas word. Likwidasie van trusts in artikel 41 bedoel 59. (1) (a) Ondanks die Wet op die Beheer op Trustgoed, 1988 (Wet No. 57 van 1988), is item 9 van Bylae 5 tot die Maatskappywet, behoudens hierdie artikel en met die nodige veranderinge, van toepassing in verband met die likwidasie van ’n trust in artikel 41 bedoel, tot uitsluiting van die Wet op die Beheer op Trustgoed, 1988, en in sodanige aansoek word die Voorsorgowerheid geag die persoon kragtens die Maatskappywet gemagtig te wees om ’n aansoek om die likwidasie daarvan by die hof te doen. (b) Die Voorsorgowerheid kan ’n aansoek kragtens die Maatskappywet om die in artikel 41 bedoel, doen indien die Voorsorgowerheid likwidasie van ’n trust redelikerwys van mening is dat dit in die belang van die polishouers van ’n tak van ’n buitelandse herversekeraar of Lloyd’s-onderskrywers is om dit te doen. 40 45 50 (c) Indien ’n aansoek by die hof om of ten opsigte van die likwidasie van ’n trust in 55 artikel 41 bedoel, deur enige persoon behalwe die Voorsorgowerheid gedoen word— (i) kan die aansoek nie aangehoor word nie tensy afskrifte van die kennisgewing van mosie en van alle gepaardgaande beëdigde verklarings en ander dokumente wat ter ondersteuning van die aansoek ingedien is, by die Voorsorgowerheid This gazette is also available free online at www.gpwonline.co.za - 90 Verify source ↗
No. 41388
AI-assisted research summary: Applications to the Prudential Authority must be updated if information changes, and the Authority can require extra information, grant or refuse applications, and attach conditions.
90 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 90 (ii) are lodged with the Prudential Authority at least 14 days, or such shorter period as the court may allow on good cause shown, before the application is set down for hearing; and the Prudential Authority may, if the Prudential Authority reasonably believes that the application is contrary to the interests of the policyholders of the branch of a foreign reinsurer or Lloyd’s underwriters concerned, join the application as a party and file affidavits and other documents in opposition to the application. (d) The court may only grant an order relating to the business rescue of an insurer or a controlling company if the Prudential Authority has been notified of the application as required in paragraph (c)(i). (2) (a) Any decision of a trustee or any other person to dissolve a trust referred to in section 41, must be approved by the Prudential Authority. (b) Any decision referred to in paragraph (a) not approved by the Prudential Authority is void. CHAPTER 10 ADMINISTRATION OF ACT Part 1 Applications and notifications 5 10 15 Applications 60. (1) A written application must be submitted to the Prudential Authority— 20 (a) (b) (c) in respect of an application for the granting of a licence under this Act; in respect of any other application for approval under this Act; if any determination, decision, exemption or the performance of any other act is required by the Prudential Authority under this Act. (2) A written application referred to in subsection (1) must be— submitted in the form and manner determined by the Prudential Authority; (a) (b) accompanied by the information determined by the Prudential Authority; and (c) accompanied by the prescribed fees. (3) A person must promptly amend an application referred to under subsection (1) if any information provided to the Prudential Authority on application becomes inaccurate prior to the Prudential Authority approving or declining an application. (4) The Prudential Authority, in respect of any application referred to in subsection (1)— (a) may— (i) require a person to furnish additional to verify that information, or verify any information that accompanied the application, in the manner specified by the Prudential Authority; and take into consideration any other information, derived from whatever source, including another regulatory authority; information, (ii) (b) must, after considering the application— (ii) (i) grant the application, if the Prudential Authority reasonably believes that the person complies with the requirements for that application; or refuse the application, if the Prudential Authority reasonably believes the person does not comply with the requirements for that that application; and (c) where an application is refused, must notify the applicant of the refusal. (5) The Prudential Authority may grant any application subject to any conditions necessary to achieve the objective of this Act. (6) If the Prudential Authority under subsection (4)(a)(i) required a person to furnish additional information or required a person to verify any information the Prudential Authority need not deal further with an application, until the person has furnished or verified the information. 25 30 35 40 45 50 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 91 Versekeringswet, 2017 Wet No. 18 van 2017 91 ingedien is ten minste 14 dae, of sodanige korter tydperk wat die hof by die aanvoer van goeie gronde kan toelaat, voordat die aansoek aangehoor gaan word; en (ii) die Voorsorgowerheid kan, indien die Voorsorgowerheid redelikerwys van mening is dat die aansoek onbestaanbaar is met die belange van die polishouers van die betrokke tak van ’n buitelandse herversekeraar of Lloyd’s- onderskrywers, by die aansoek as ’n party aansluit en beëdigde verklarings en ander dokumente in teenstand teen die aansoek, indien. (d) Die hof kan ’n bevel in verband met die ondernemingsredding van ’n versekeraar of ’n beheermaatskappy slegs toestaan indien die Voorsorgowerheid in kennis gestel is van die aansoek soos in paragraaf (c)(i) vereis. (2) (a) Enige beslissing van ’n trustee of ander persoon om ’n trust te ontbind soos in artikel 41 bedoel, moet deur die Voorsorgowerheid goedgekeur word. (b) ’n Besluit in paragraaf (a) bedoel wat nie deur die Voorsorgowerheid goedgekeur is nie, is nietig. HOOFSTUK 10 ADMINISTRASIE VAN WET Deel 1 Aansoeke en kennisgewings Aansoeke 60. (1) ’n Skriftelike aansoek moet aan die Voorsorgowerheid voorgelê word— (a) (b) (c) ten opsigte van ’n aansoek om die toestaan van ’n lisensie kragtens hierdie Wet; ten opsigte van enige ander aansoek om goedkeuring kragtens hierdie Wet; indien enige bepaling, beslissing, vrywaring of die verrigting van enige ander handeling kragtens hierdie Wet deur die Voorsorgowerheid vereis word. (2) ’n Skriftelike aansoek in subartikel (1) bedoel moet— in die vorm en op die wyse deur die Voorsorgowerheid bepaal, voorgelê word; (a) (b) vergesel gaan van die inligting deur die Voorsorgowerheid bepaal; en (c) vergesel gaan van die voorgeskrewe gelde. (3) ’n Persoon moet ’n aansoek kragtens subartikel (1) bedoel onmiddellik wysig indien enige inligting wat by aansoek aan die Voorsorgowerheid verstrek is, onakkuraat word voordat die Voorsorgowerheid ’n aansoek goedkeur of afwys. (4) Die Voorsorgowerheid, ten opsigte van enige aansoek in subartikel (1) bedoel— (a) kan— (i) vereis dat ’n persoon bykomende inligting verstrek, daardie inligting verifieer of enige inligting verifieer wat die aansoek vergesel het, op die wyse deur die Voorsorgowerheid bepaal; en (ii) enige ander inligting, van watter bron dit ook al kom, met inbegrip van ’n ander reguleringsgesag in ag neem; (b) moet, na oorweging van die aansoek— (i) die aansoek toestaan, indien die Voorsorgowerheid redelikerwys van mening is dat die persoon aan die vereistes vir daardie aansoek voldoen; of (ii) die aansoek weier, indien die Voorsorgowerheid redelikerwys van mening is dat die persoon nie aan die vereistes vir daardie aansoek voldoen nie; en (c) moet, waar ’n aansoek geweier word, die aansoeker van die weiering in kennis stel. 5 10 15 20 25 30 35 40 45 (5) Die Voorsorgowerheid kan enige aansoek, onderhewig aan enige voorwaardes 50 nodig om die oogmerke van hierdie Wet te bereik, toestaan. (6) Indien die Voorsorgowerheid kragtens subartikel (4)(a)(i) vereis het dat ’n persoon bykomende inligting verstrek of vereis het dat ’n persoon enige inligting verifieer, hoef die Voorsorgowerheid die aansoek nie verder te hanteer totdat die persoon die inligting verstrek of geverifieer het nie. 55 This gazette is also available free online at www.gpwonline.co.za
Part
Part 2
- 14 Verify source ↗
Approval of appointment of certain key persons
AI-assisted research summary: This section concerns approval of the appointment of certain key persons.
14. Approval of appointment of certain key persons - 15 Verify source ↗
Notification of appointment and change of circumstances of certain key
AI-assisted research summary: Section heading on notifying the appointment and changes in circumstances of certain key persons.
15. Notification of appointment and change of circumstances of certain key persons Termination of appointment of key persons 16. Part 3 Changes in control of insurer or controlling company and nominees 17. 18. Changes in control of insurer or controlling company Registration of shares in name of nominee Part 4 5 10 15 20 Key persons or significant owners not fit and proper 25 - 62 Verify source ↗
General powers, duties and functions of Prudential Authority
AI-assisted research summary: This section is titled “General powers, duties and functions of Prudential Authority.”
62. General powers, duties and functions of Prudential Authority 63. 64. - 65 Verify source ↗
Determination of another jurisdiction as equivalent
AI-assisted research summary: This section concerns determining another jurisdiction as equivalent.
65. Determination of another jurisdiction as equivalent 66. - 67 Verify source ↗
Unlicensed insurance business
AI-assisted research summary: Section heading: Unlicensed insurance business.
67. Unlicensed insurance business 68. - 69 Verify source ↗
Offences
AI-assisted research summary: This section is headed “Offences”, “Penalties for non-submission or late submission”, and “Exemptions”.
69. Offences Penalties for non-submission or late submission Exemptions 5 10 15 20 25 30 35 This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 9 52. Toepassing van Hoofstuk 9 HOOFSTUK 9 ONTBINDING Deel 1 Statutêre bestuur - 53 Verify source ↗
Aanstelling van statutêre bestuurder
AI-assisted research summary: Section heading about the appointment of a statutory administrator, in Part 2 (curatorship).
53. Aanstelling van statutêre bestuurder Deel 2 Kuratorskap - 54 Verify source ↗
Aanstelling van kurator
AI-assisted research summary: Section heading for the appointment of a curator in business rescue.
54. Aanstelling van kurator Deel 3 Ondernemingsredding 55. Toepassing van Maatskappywet op ondernemingsredding van versekeraars en beheermaatskappye - 56 Verify source ↗
Ondernemingsreddingaansoeke en ontbindings
AI-assisted research summary: This section is a heading for business rescue applications and dissolutions, including liquidation-related topics.
56. Ondernemingsreddingaansoeke en ontbindings Deel 4 Likwidasie 57. 58. 59. Toepassing van Maatskappywet op likwidasie van versekeraars beheermaatskappye Likwidasie-aansoeke en -besluite Likwidasie van trusts in artikel 41 bedoel en HOOFSTUK 10 ADMINISTRASIE VAN WET Deel 1 Aansoeke en kennisgewings - 61 Verify source ↗
Kennisgewings
AI-assisted research summary: This is a section heading for notices in Part 2 on the powers and functions of the Prudential Authority, including publication by the Prudential Authority.
61. Kennisgewings Deel 2 Bevoegdhede en werksaamhede van Voorsorgowerheid Publikasie deur Voorsorgowerheid - 62 Verify source ↗
Algemene bevoegdhede, pligte en werksaamhede van Voorsorgowerheid
AI-assisted research summary: Section heading for the general powers, duties, and functions of the Prudential Authority.
62. Algemene bevoegdhede, pligte en werksaamhede van Voorsorgowerheid - 63 Verify source ↗
Voorsorgstandaarde
AI-assisted research summary: 63. Voorsorgstandaarde 64.
63. Voorsorgstandaarde 64. - 65 Verify source ↗
Vasstelling van ander jurisdiksie as ekwivalent
AI-assisted research summary: This section concerns determining that another jurisdiction is equivalent.
65. Vasstelling van ander jurisdiksie as ekwivalent - 67 Verify source ↗
Ongelisensieerde versekeringsbesigheid
AI-assisted research summary: Section title: unlicensed insurance business.
67. Ongelisensieerde versekeringsbesigheid 68. - 69 Verify source ↗
Misdrywe
AI-assisted research summary: Section title referring to an offence for non-filing or late filing.
69. Misdrywe Strawwe vir nie-indiening of laat indiening 5 10 15 20 25 30 35 This gazette is also available free online at www.gpwonline.co.za - 10 Verify source ↗
No. 41388
AI-assisted research summary: This section lists Chapter 11 general provisions items, including regulations for certain classes of insurance business, special exemption of certain insurers, consequential amendments and transitional arrangements, and short title and commencement.
10 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 10 CHAPTER 11 GENERAL PROVISIONS 70. 71. 72. 73. Regulations relating to certain classes of insurance business set out Schedule 2 Special exemption of certain insurers Consequential amendments and transitional arrangements Short title and commencement in 5 SCHEDULE 1 LAWS AMENDED SCHEDULE 2 CLASSES AND SUB-CLASSES TABLE 1 CLASSES AND SUB-CLASSES OF INSURANCE BUSINESS LIFE INSURANCE TABLE 2 CLASSES AND SUB-CLASSES OF INSURANCE BUSINESS NON-LIFE INSURANCE SCHEDULE 3 TRANSITIONAL ARRANGEMENTS 1. 2. 3. 4. 5. 6. 7. 8. 9. Definitions and interpretation Repeal of matters prescribed under previous Act Pending matters Preservation and continuation of court proceedings and orders Continued investigation and enforcement of previous Act Continuation of previously registered insurers Maintenance of financial soundness Reporting Key persons and significant owners other than representatives, deputy representatives of Lloyd’s and trustees of Lloyd’s trust Conducting of business other than insurance business inside Republic and conducting of any other business outside Republic Lloyd’s 11. 12. Insurance groups - 3 Verify source ↗
Die oogmerk van hierdie Wet is om, op ’n wyse wat met die Grondwet van
AI-assisted research summary: Insurers and holding companies must act properly and cooperatively, and no person may conduct insurance business in the Republic unless licensed under this Act.
3. Die oogmerk van hierdie Wet is om, op ’n wyse wat met die Grondwet van Suid-Afrika, 1996, bestaanbaar is, die handhawing van ’n regverdige, veilige en stabiele versekeringsmark te bevorder tot voordeel en ter beskerming van polishouers, deur ’n regsraamwerk vir die voorsorgregulering en toesig oor versekeraars en versekerings- groepe in te stel wat— (a) die monitering en die instandhouding van die veiligheid en gesondheid van versekeraars vergemaklik; (b) die beskerming van polishouers en potensiële polishouers verbeter; toegang tot versekering vir alle Suid-Afrikaners verbeter; (c) (d) breëbasistransformasie van die versekeringsektor bevorder; en (e) tot die stabiliteit van die finansiële stelsel in die algemeen bydra. HOOFSTUK 2 DRYF VAN VERSEKERINGSBESIGHEID EN VERSEKERINGSGROEPBESIGHEID Deel 1 Algemene beginsels vir dryf van versekeringsbesigheid of versekeringsgroepbesigheid Beginsels 4. ’n Versekeraar en ’n beheermaatskappy moet, te alle tye— sy besigheid met integriteit dryf; sy besigheid met vaardigheid, sorg en toewyding dryf; (a) (b) (c) verstandig optree; sy sake verantwoordelik en doeltreffend organiseer en beheer; en (d) (e) op ’n oop en samewerkende wyse met die Voorsorgowerheid handel. Deel 2 Versekeringsbesigheid en ander besigheid van versekeraars Versekeringsbesigheid en beperkings op ander besigheid 5 10 15 20 25 30 35 40 45 5. (1) Geen persoon mag versekeringsbesigheid in die Republiek dryf tensy daardie 50 persoon kragtens hierdie Wet gelisensieer is nie. This gazette is also available free online at www.gpwonline.co.za - 26 Verify source ↗
No. 41388
AI-assisted research summary: Insurers need Prudential Authority approval for non-insurance business in the Republic or business outside the Republic, and the Authority can impose limits, issue directions, and require a reorganisation plan.
26 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 26 (2) A person is regarded as conducting insurance business in the Republic if— (b) (a) the person conducts business similar to insurance business outside the Republic; and that person or another person, in relation to the business referred to under paragraph (a), directly or indirectly acts in the Republic on behalf of the first-mentioned person, including, but not limited to, by rendering a financial service within the meaning of the Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002), in respect of that business. (3) A person to whom an insurer has outsourced a function or activity is not regarded as conducting insurance business. (4) An insurer may not, without the approval of the Prudential Authority, conduct any business other than insurance business in the Republic, including any insurance business performed on behalf of another person. (5) An insurer (other than a reinsurer, a branch of a foreign reinsurer, Lloyd’s underwriter or Lloyd’s) may not, without the approval of the Prudential Authority, conduct any business, including business similar to insurance business, outside the Republic. (6) The Prudential Authority must only grant an approval referred to under subsection (4) or (5) if the Prudential Authority is satisfied that such business will not— impede or be likely to impede the financial soundness of the insurer; (a) (b) negatively impact on the interests of policyholders; or (c) introduce risks that cannot, to the satisfaction of the Prudential Authority, be appropriately mitigated. (7) (a) Despite any approval under subsection (4) or (5), the Prudential Authority may direct an insurer to cease conducting business referred to in subsection (4) or (5), if the Prudential Authority reasonably believes that the business may— impede or is likely to impede the financial soundness of the insurer; or introduce a risk or risks that cannot be appropriately mitigated. (i) (ii) (b) An insurer who is directed under paragraph (a) must, within the period agreed with the Prudential Authority, which period must not exceed three months after a directive referred to in paragraph (a) is issued, submit to the Prudential Authority for approval a plan to reorganise its business. (c) An insurer whose plan was approved under paragraph (b) must submit a monthly progress report to the Prudential Authority that sets out the measures taken and the progress made with implementing the plan. (d) The Prudential Authority may restrict or prohibit certain activities or transactions of the insurer until the plan is implemented. (8) (a) The Prudential Authority may prescribe that, for the purposes of this Act— (i) certain types, kinds or categories of insurance business are, subject to any requirements prescribed, excluded from the application of this Act; or certain types, kinds or categories of business constitute insurance business to which this Act applies. (ii) (b) The Prudential Authority, when making a Prudential Standard under paragraph (a), must have regard to— (i) (ii) (iii) (iv) (v) any existing Act of Parliament that regulates that business; the nature, size, complexity or type of that business; the persons that conduct that business; the nature or type of any insurance obligations; the threshold below which it is not possible for a person to effectively retain and manage insurance risk. (9) No person may, without the approval of the Prudential Authority, apply to that person’s business or undertaking a name or description which includes the word ‘‘assure’’, ‘‘insure’’ or ‘‘underwrite’’, or any derivative thereof, unless that person is licensed as an insurer under this Act. 5 10 15 20 25 30 35 40 45 50 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 27 Versekeringswet, 2017 Wet No. 18 van 2017 27 (2) ’n Persoon word geag versekeringsbesigheid in die Republiek te dryf indien— (a) die persoon buite die Republiek sake soortgelyk aan versekeringsbesigheid dryf; en (b) daardie persoon of iemand anders, in verband met die sake kragtens paragraaf (a) bedoel, regstreeks of onregstreeks namens die eersgenoemde persoon in die Republiek optree, met inbegrip van, maar nie beperk nie tot, deur ’n finansiële diens te lewer binne die betekenis van die Wet op Finansiële Advies- en Tussengangersdienste, 2002 (Wet No. 37 van 2002), ten opsigte van daardie besigheid. 5 (3) ’n Persoon aan wie ’n versekeraar ’n werksaamheid of aktiwiteit uitbestee het, 10 word nie geag versekeringsbesigheid te dryf nie. (4) ’n Versekeraar mag nie, sonder die goedkeuring van die Voorsorgowerheid, enige besigheid behalwe versekeringsbesigheid in die Republiek dryf nie, met inbegrip van enige versekeringsbesigheid wat namens iemand anders gedryf word. (5) ’n Versekeraar (behalwe ’n herversekeraar, ’n tak van ’n buitelandse her- versekeraar, Lloyd’s-onderskrywer of Lloyd’s) mag nie buite die Republiek, sonder die goedkeuring van die Voorsorgowerheid, enige besigheid, met inbegrip van besigheid soortgelyk aan versekeringsbesigheid, dryf nie. (6) Die Voorsorgowerheid moet slegs ’n goedkeuring bedoel in subartikels (4) of (5) toestaan indien die Voorsorgowerheid oortuig is dat daardie besigheid nie— (a) die finansiële gesondheid van die versekeraar sal belemmer of waarskynlik sal (b) (c) belemmer nie; ’n negatiewe invloed op die belange van polishouers sal hê nie; of risiko’s sal inbring wat nie, ten genoeë van die Voorsorgowerheid, gepas versag kan word nie. 15 20 25 (7) (a) Ondanks enige goedkeuring kragtens subartikel (4) of (5), mag die Voorsorgowerheid ’n versekeraar opdrag gee om op te hou om besigheid bedoel in subartikel (4) of (5) te dryf, indien die Voorsorgowerheid redelikerwys van mening is dat die besigheid— (i) die versekeraar se finansiële gesondheid kan belemmer of waarskynlik kan 30 belemmer; of ’n risiko of risiko’s kan meebring wat nie gepas verlig kan word nie. (ii) (b) ’n Versekeraar wat kragtens paragraaf (a) opdrag kry moet, binne die tydperk met die Voorsorgowerheid ooreengekom, welke tydperk hoogstens drie maande na uitreiking van ’n lasgewing in paragraaf (a) bedoel, moet wees, ’n plan vir die herorganisasie van die versekeraar se besigheid aan die Voorsorgowerheid voorlê. (c) ’n Versekeraar wie se plan kragtens paragraaf (b) goedgekeur is, moet ’n maandelikse vorderingsverslag aan die Voorsorgowerheid voorlê wat die stappe wat gedoen is en vordering wat gemaak is met die inwerkingstelling van die plan, uiteensit. (d) Die Voorsorgowerheid kan sekere aktiwiteite of transaksies van die versekeraar beperk of belet totdat die plan in werking gestel is. (8) (a) Die Voorsorgowerheid kan voorskryf dat, vir die doeleindes van hierdie Wet— sekere tipes, soorte of kategorieë van versekeringsbesigheid, behoudens enige (i) voorgeskrewe vereistes, van die toepassing van hierdie Wet uitgesluit is; sekere tipes, soorte of kategorieë besigheid, besigheid uitmaak waarop hierdie Wet van toepassing is. (ii) (b) Die Voorsorgowerheid, wanneer ’n Voorsorgstandaard kragtens paragraaf (a) gemaak word, moet oorweging skenk aan— enige bestaande Parlementswet wat daardie besigheid reguleer; (i) (ii) die aard, grootte, kompleksiteit of tipe van daardie besigheid; (iii) die persone wat daardie besigheid dryf; (iv) die aard of tipe van enige versekeringsverbintenisse; (v) die drempel waaronder dit nie vir ’n persoon moontlik is om versekeringsrisiko doeltreffend teë te hou en te bestuur nie. (9) Geen persoon mag sonder die goedkeuring van die Voorsorgowerheid, ’n naam of beskrywing aan daardie persoon se besigheid of onderneming toeskryf wat die woord ‘‘assureer’’, ‘‘verseker’’ of ‘‘onderskryf’’, of enige afleiding daarvan, verteenwoordig nie, tensy daardie persoon kragtens hierdie Wet as ’n versekeraar gelisensieer is. 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za - 28 Verify source ↗
No. 41388
AI-assisted research summary: Foreign reinsurers and Lloyd’s underwriters may carry on insurance business in the Republic only if the listed setup conditions are met; claims against their branches must be recognised by competent courts, and a section 41 trust must cover unpaid insurance obligations or penalties in specified cases.
28 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 28 Part 3 Branches of foreign reinsurers and Lloyd’s underwriters Conducting of insurance business by branches of foreign reinsurers and Lloyd’s underwriters 6. (1) A foreign reinsurer may conduct insurance business in the Republic through a 5 branch of that foreign reinsurer if the foreign reinsurer— is granted a licence under Chapter 4; (a) (b) establishes a representative office in the Republic in accordance with Chapter 5; and establishes a trust in the Republic in accordance with Chapter 6. (c) (2) A Lloyd’s underwriter may conduct insurance business in the Republic if Lloyd’s— (a) establishes a representative office in the Republic in accordance with Chapter 5; and (b) establishes a trust in the Republic in accordance with Chapter 6. (3) All the sections of this Act apply to a branch of a foreign reinsurer, a Lloyd’s underwriter and Lloyd’s, unless specifically provided for otherwise in this Act. Claims against branches of foreign reinsurers or Lloyd’s underwriters 7. (1) (a) Any claim against a branch of a foreign reinsurer or a Lloyd’s underwriter in respect of an insurance policy relating to the insurance business for which it is licensed under this Act must be recognised by any competent court in the Republic. (b) the In any action or other proceedings instituted under subsection (1), representative referred to in section 34 may be cited as a nominal defendant or respondent, and the summons or application commencing the proceedings may be served on him or her. (c) The representative may institute and conduct any proceedings in a competent court in the Republic as a nominal plaintiff or an applicant on behalf of the branch of a foreign reinsurer or a Lloyd’s underwriter. (2) The trust referred to in section 41 must— the Prudential Authority has directed the payment of that claim, (a) meet the insurance obligations under an insurance policy referred to in subsection (1), if a branch of a foreign reinsurer or a Lloyd’s underwriter fails to meet any insurance obligations under that insurance policy after— (i) a court has given a final judgment in respect of a claim; or (ii) and any reconsideration or review proceedings in relation thereto have been completed or not been instituted within the period allowed therefor; or (b) pay a penalty imposed under this Act or under the Financial Sector Regulation Act, if a branch of a foreign reinsurer, Lloyd’s or a Lloyd’s underwriter fails to pay that penalty within the time allowed for payment, and any reconsideration or review proceedings in relation thereto have not been completed or have not been instituted within the period allowed therefor. 10 15 20 25 30 35 40 Part 4 Insurance groups Application of Part - 34 Verify source ↗
No. 41388
AI-assisted research summary: Certain insurers, controlling companies, branches, and key persons must notify the Prudential Authority about appointments, terminations, and relevant changes within 30 days.
34 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 34 Notification of appointment and change in circumstances of certain key persons 15. (1) An insurer (other than a branch of a foreign reinsurer, a Lloyd’s underwriter or Lloyd’s) and a controlling company must, within 30 days, notify the Prudential Authority of the appointment of— (a) a senior manager; or (b) a head of a control function. (2) The representative of a branch of a foreign reinsurer and Lloyd’s must, within 30 days, notify the Prudential Authority of the appointment of— (a) a senior manager; or (b) a head of a control function. (3) An insurer, a controlling company, and a representative of a branch of a foreign reinsurer and Lloyd’s must, within 30 days of becoming aware, notify the Prudential Authority of a change in circumstances that may adversely affect the fit and proper status of a key person. Termination of appointment of key persons 16. (1) An insurer (other than a branch of a foreign reinsurer, a Lloyd’s underwriter or Lloyd’s) and a controlling company must notify the Prudential Authority of the termination of the appointment of a key person, within 30 days of such termination. (2) The representative of a branch of a foreign reinsurer and Lloyd’s must notify the Prudential Authority of the termination of the appointment of a key person referred to in paragraphs (b) to (e) of the definition of ‘‘key person’’, within 30 days of such termination. (3) A branch of a foreign reinsurer or Lloyd’s must notify the Prudential Authority of the termination of the appointment of a representative or a deputy representative of that branch of a foreign reinsurer or Lloyd’s, within 30 days of such termination. (4) (a) Any key person, other than an auditor, of an insurer or a controlling company who resigns or whose appointment has been terminated, must at the request of the Prudential Authority, notify the Prudential Authority in writing of any matter relating to the affairs of that insurer or controlling company of which the key person became aware in the performance of that key person’s role, responsibilities, duties or functions, and which may prejudice the ability of the insurer or controlling company to comply with this Act. (b) No information furnished by a key person under paragraph (a) may be used by the Prudential Authority in any subsequent criminal proceedings against such a key person. Part 3 Changes in control of insurer or controlling company and nominees Changes in control of insurer or controlling company 17. (1) (a) This section and the provisions of the Financial Sector Regulation Act relating to significant owners do not apply to branches of foreign reinsurers, Lloyd’s underwriters or Lloyd’s. (b) The provisions of the Financial Sector Regulation Act relating to significant owners apply, with the necessary changes, to controlling companies. (c) This section applies in addition to the Financial Sector Regulation Act. (2) An insurer or a controlling company must, within 30 days of becoming aware, notify the Prudential Authority of any arrangement referred to in the provisions of the Financial Sector Regulation Act relating to significant owners. (3) The Prudential Authority may only approve an arrangement referred to in the provisions of the Financial Sector Regulation Act relating to significant owners if the Prudential Authority is satisfied, in addition to the matters specified in the Financial Sector Regulation Act, that the likely influence of the proposed significant owner, will be reasonably likely to result in, or will continue to result in— 5 10 15 20 25 30 35 40 45 50 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 35 Versekeringswet, 2017 Wet No. 18 van 2017 35 Kennisgewing van aanstelling en verandering in omstandighede van sekere sleutelpersone 15. (1) ’n Versekeraar (buiten ’n tak van ’n buitelandse herversekeraar, ’n Lloyd’s-onderskrywer of Lloyd’s) en ’n beheermaatskappy moet, binne 30 dae, die Voorsorgowerheid in kennis stel van die aanstelling van— (a) (b) ’n senior bestuurder; of ’n hoof van ’n beheerfunksie. (2) Die verteenwoordiger van ’n tak van ’n buitelandse herversekeraar en Lloyd’s moet, binne 30 dae, die Voorsorgowerheid verwittig van die aanstelling van— (a) (b) ’n senior bestuurder; of ’n hoof van ’n beheerfunksie. (3) ’n Versekeraar, ’n beheermaatskappy, en ’n verteenwoordiger van ’n tak van ’n buitelandse herversekeraar en Lloyd’s moet, binne 30 dae vanaf kennisname, die Voorsorgowerheid in kennis stel van ’n verandering in omstandighede wat ’n sleutelpersoon se status van geskiktheid en bevoegdheid kan raak. Beëindiging van aanstelling van sleutelpersone 16. (1) ’n Versekeraar (behalwe ’n tak van ’n buitelandse herversekeraar, ’n Lloyd’s-onderskrywer of Lloyd’s) en ’n beheermaatskappy moet die Voorsorgowerheid in kennis stel van die beëindiging van die aanstelling van ’n sleutelpersoon, binne 30 dae vanaf sodanige beëindiging. (2) Die verteenwoordiger van ’n tak van ’n buitelandse herversekeraar en Lloyd’s moet die Voorsorgowerheid in kennis stel van die beëindiging van die aanstelling van ’n sleutelpersoon in paragrawe (b) tot (e) van die omskrywing van sleutelpersoon bedoel, binne 30 dae vanaf sodanige beëindiging. (3) ’n Tak van ’n buitelandse herversekeraar of Lloyd’s moet die Voorsorgowerheid in kennis stel van die beëindiging van die aanstelling van ’n verteenwoordiger of ’n adjunkverteenwoordiger van daardie tak van ’n buitelandse herversekeraar of Lloyd’s, binne 30 dae vanaf sodanige beëindiging. (4) (a) ’n Sleutelpersoon, behalwe ’n ouditeur, van ’n versekeraar of ’n beheer- maatskappy wat bedank of wie se aanstelling beëindig is, moet op versoek van die Voorsorgowerheid, die Voorsorgowerheid skriftelik in kennis stel van enige aangeleentheid aangaande die sake van daardie versekeraar of beheermaatskappy waarvan die sleutelpersoon in die verrigting van daardie sleutelpersoon se rol, verantwoordelikhede, pligte of werksaamhede bewus geword het, en wat die versekeraar of beheermaatskappy se vermoë om aan hierdie Wet te voldoen, kan benadeel. (b) Geen inligting kragtens paragraaf (a) deur ’n sleutelpersoon verstrek mag deur die Voorsorgowerheid gebruik word in enige daaropvolgende strafregtelike verrigtinge teen sodanige sleutelpersoon nie. Deel 3 Veranderinge in beheer oor ’n versekeraar of beheermaatskappy en benoemdes Veranderinge in beheer oor versekeraar of beheermaatskappy 17. (1) (a) Hierdie artikel en die bepalings van die ‘‘Financial Sector Regulation Act’’ aangaande beduidende eienaars is nie van toepassing nie op takke van buitelandse herversekeraars, Lloyd’s-onderskrywers of Lloyd’s. (b) Die bepalings van die ‘‘Financial Sector Regulation Act’’ oor beduidende eienaars is van toepassing, met die nodige veranderinge, op beheermaatskappye. (c) Hierdie artikel is benewens die ‘‘Financial Sector Regulation Act’’ van toepassing. (2) ’n Versekeraar of beheermaatskappy moet, binne 30 dae na kennisname, die Voorsorgowerheid in kennis stel van enige reëling in die bepalings van die ‘‘Financial Sector Regulation Act’’ wat op beduidende eienaars betrekking het. (3) Die Voorsorgowerheid kan slegs ’n reëling in die bepalings van die ‘‘Financial Sector Regulation Act’’ bedoel aangaande beduidende eienaars goedkeur indien die Voorsorgowerheid tevrede is, benewens die aangeleenthede in die ‘‘Financial Sector Regulation Act’’ gespesifiseer, dat die waarskynlike invloed van die voorgestelde beduidende eienaar, heel waarskynlik sal uitloop in, of sal voortgaan om uit te loop in— 5 10 15 20 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za - 70 Verify source ↗
No. 41388
AI-assisted research summary: Certain insurers and foreign reinsurer/Lloyd’s branches must report information to the Prudential Authority, and branches must notify it promptly about security failures or risks.
70 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 70 (6) The funds held in the trust may not, without the approval of the Prudential Authority, be withdrawn or accessed by a foreign reinsurer, a Lloyd’s underwriter or Lloyd’s in circumstances other than those referred to in section 7(2)(a). Failure to provide or maintain security 42. (1) A branch of a foreign reinsurer or Lloyd’s must, without delay, notify the Prudential Authority of its failure to provide or maintain the security referred to in section 40 or any risk of non-compliance with the security requirements in the following three months. (2) The Prudential Authority may, in the circumstances referred to in subsection (1), or if the Prudential Authority reasonably believes that a branch of a foreign reinsurer or a Lloyd’s underwriter is failing to provide or maintain the security referred to in section 40— (a) direct a branch of a foreign reinsurer or Lloyd’s to submit a recovery scheme to the Prudential Authority for approval that sets out the measures that the branch of a foreign reinsurer or Lloyd’s will implement to restore the security; or suspend or withdraw the licence of the branch of a foreign reinsurer or Lloyd’s underwriters and Lloyd’s. (b) (3) In the circumstances referred to in subsection (2)(a), the Prudential Authority, despite the Trust Property Control Act, 1988 (Act No. 57 of 1988), is deemed to be the sole trustee of the trust and may exercise the powers of that trustee under the trust deed. (4) A branch of a foreign reinsurer or Lloyd’s whose recovery scheme was approved must submit a monthly progress report to the Prudential Authority that sets out the measures taken and the progress made with implementing the recovery scheme. (5) The Prudential Authority may restrict or prohibit certain activities or transactions the security of the branch of a foreign reinsurer or Lloyd’s underwriters until requirements are complied with. (6) A recovery scheme must include the matters as prescribed. (7) This section does not limit any other action that the Prudential Authority may take in terms of this Act. CHAPTER 7 REPORTING AND PUBLIC DISCLOSURES Information concerning beneficial interests 43. (1) An insurer (other than branch of a foreign reinsurer, Lloyd’s underwriters or Lloyd’s) and a controlling company must, when required to do so by the Prudential Authority, provide the Prudential Authority with any information the Prudential Authority may require in the form, manner and containing the particulars which the Prudential Authority determines, in respect of— (a) (b) the names of its shareholders, other holders of a beneficial interest, and the size of their shareholding and other beneficial interests, as the case may be; and the name of any person who, directly or indirectly, has the power to require the shareholders referred to in paragraph (a) rights as shareholders in the insurer or controlling company in accordance with such person’s directions or instructions. to exercise their (2) A person, or any person acting on behalf of that person, must, at the request of an insurer or a controlling company, provide the insurer or controlling company with the information it may require for the purposes of complying with subsection (1), if— (a) (b) shares in an insurer or an insurance group are registered in that person’s name; that person wishes to have shares in an insurer or a controlling company allotted, issued or registered in that person’s name. 5 10 15 20 25 30 35 40 45 50 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 71 Versekeringswet, 2017 Wet No. 18 van 2017 71 (6) Die fondse in die trust gehou mag nie sonder die goedkeuring van die Voorsorgowerheid deur ’n buitelandse versekeraar, ’n Lloyd’s-onderskrywer of Lloyd’s toegang tot verkry word nie onder omstandighede behalwe die ingetrek of omstandighede in artikel 7(2)(a) bedoel nie. Versuim om effekte te voorsien of te onderhou 42. (1) ’n Tak van ’n buitelandse herversekeraar of Lloyd’s moet, sonder oponthoud, die Voorsorgowerheid in kennis stel van sy versuim om die effekte in artikel 40 bedoel te voorsien of te onderhou of van enige risiko van nienakoming aan die effektevereistes in die volgende drie maande. (2) Die Voorsorgowerheid kan onder die omstandighede in subartikel (1) bedoel of as die Voorsorgowerheid redelikerwys oortuig is dat ’n tak van ’n buitelandse herversekeraar of ’n Lloyd’s-onderskrywer versuim om die effekte in artikel 40 bedoel te voorsien of te onderhou— (a) ’n tak van ’n buitelandse herversekeraar of Lloyd’s opdrag gee om ’n herwinningskema vir goedkeuring aan die Voorsorgowerheid voor te lê wat die maatreëls uiteensit wat die tak van ’n buitelandse herversekeraar of Lloyd’s in werking sal stel om die effekte te herstel; of (b) die tak van ’n buitelandse herversekeraar of Lloyd’s-onderskrywer en Lloyd’s se lisensie opskort of intrek. (3) Onder die omstandighede in subartikel (2)(a) bedoel, word die Voorsorgowerheid, ondanks die Wet op die Beheer op Trustgoed, 1988 (Wet No. 57 van 1988), geag die alleentrustee van die trust te wees en kan die bevoegdhede van daardie trustee kragtens die trustakte uitoefen. (4) ’n Tak van ’n buitelandse herversekeraar of Lloyd’s wie se herstelskema goedgekeur is, moet ’n maandelikse vorderingsverslag aan die Voorsorgowerheid voorlê wat die maatreëls wat geneem is en die vordering wat met die inwerkingstelling van die herstelskema gemaak is, uiteensit. (5) Die Voorsorgowerheid kan sekere aktiwiteite of transaksies van die tak van ’n buitelandse herversekeraar of Lloyd’s-onderskrywers beperk of belet totdat aan die effektevereistes voldoen is. (6) ’n Herstelskema moet die voorgeskrewe aangeleenthede insluit. (7) Hierdie artikel beperk nie enige ander stappe wat die Voorsorgowerheid ingevolge hierdie Wet kan doen nie. 5 10 15 20 25 30 HOOFSTUK 7 VERSLAGDOENING EN OPENBARE BEKENDMAKINGS 35 Inligting aangaande voordelige belange 43. (1) ’n Versekeraar (behalwe ’n tak van ’n buitelandse herversekeraar, Lloyd’s- onderskrywers of Lloyd’s) en ’n beheermaatskappy moet, wanneer die Voorsorg- owerheid vereis dat hulle dit doen, die Voorsorgowerheid voorsien van enige inligting wat die Voorsorgowerheid kan vereis in die vorm, wyse en met die besonderhede wat die Voorsorgowerheid bepaal, ten opsigte van— (a) die name van sy aandeelhouers, ander houers van ’n voordelige belang, en die grootte van hul aandeelhouding en ander voordelige belange, na gelang van die geval; en (b) die naam van ’n persoon wat, regstreeks of onregstreeks, die mag het om te vereis dat die aandeelhouers in paragraaf regte as aandeelhouers in die versekeraar of beheermaatskappy uitoefen ooreen- komstig sodanige persoon se opdragte of instruksies. (a) bedoel, hul (2) ’n Persoon, of enige persoon wat namens daardie persoon handel moet, op versoek van ’n versekeraar of ’n beheermaatskappy, die versekeraar of beheermaatskappy voorsien van die inligting wat hy of sy kan nodig kry ten einde aan subartikel (1) te voldoen, indien— (a) aandele in ’n versekeraar of ’n versekeringsgroep in daardie persoon se naam 40 45 50 geregistreer is; (b) daardie persoon wil hê dat aandele in ’n versekeraar of beheermaatskappy in daardie persoon se naam toegeken, uitgereik of geregistreer moet word. 55 This gazette is also available free online at www.gpwonline.co.za - 82 Verify source ↗
No. 41388
AI-assisted research summary: A curator must take custody of insurer assets and notify the Prudential Authority in certain court-application situations, and may perform several asset-control and administration powers.
82 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 82 (g) must take custody of the cash, cash investments, shares, other securities or investments held or administered by the insurer or controlling company, and of other property (movable or immovable) or effects belonging to or held by or on instructions of the insurer or controlling company or any entity directly or indirectly controlled by, affiliated to or associated with the insurer or controlling company; (h) must notify the Prudential Authority should the curator deem it necessary or expedient that application be made to the court— (i) for the extension of the curator’s powers to any other company (including any holding company or subsidiary) or other related or inter-related person or person associated with the insurer or controlling company; for the winding-up of the insurer or controlling company; or for any relief as envisaged in the Financial Sector Regulation Act against the insurer or controlling company or any of its key persons; (i) may, in the curator’s discretion and depending on available resources, make full or part payments to policyholders in identified circumstances, after the prior approval of the Prudential Authority has been obtained; (ii) (iii) (j) may conduct any investigation with a view to locating the assets belonging to, administered or controlled by the insurer or controlling company, including such assets held by way of securities, in cash or liquid form; (k) may incur such reasonable expenses and costs as may be necessary or expedient for the curatorship and control of the insurer or controlling company and operations of the insurer or controlling company, and to pay same from the assets held, administered or under the control of the insurer or controlling company; (l) may engage, after consultation with the Prudential Authority, such assistance of a legal, accounting, administrative or other professional or technical nature as the curator may reasonably deem necessary for the performance of the curator’s duties, and the curator may defray reasonable charges and expenses thus incurred from the assets held or under control of the insurer or controlling company; (m) may institute or prosecute any legal proceedings on behalf of the insurer or the the insurer or controlling company, and defend any litigation against controlling company; (n) may invest such funds as are not required for the immediate purposes of the business, with a bank registered under the Banks Act, 1990 (Act No. 94 of 1990), or other liquid instrument approved by the Prudential Authority; (o) may take control of and operate or freeze existing banking accounts of the insurer or the controlling company and of its subsidiaries or related persons, and of any director of the insurer or controlling company, insofar as any money belonging to the insurer or controlling company has been deposited into such latter banking account; (p) may open and operate any new banking accounts for the purposes of the curatorship; and 5 10 15 20 25 30 35 40 45 (q) may claim all costs, charges and other expenditure reasonably incurred by the curator in the execution of duties in terms of this section, including the curator’s own remuneration, as administration costs, in the event of the winding-up of the insurer or controlling company ensuing. (3) A curator, when acting in accordance with subsection (2), must consider the 50 expected effect on the creditors of the insurer or controlling company and whether— (a) creditors are treated in an equitable manner; and (b) when acting under subsection (2)(e)(i), a reasonable probability exists that a creditor will not incur greater losses, as at the date of the proposed disposal, transfer or disposal and transfer, than would have been incurred if the insurer or controlling company had been wound-up on the date of the proposed disposal, transfer or disposal and transfer. 55 (4) A claim for damages in respect of any loss sustained by or damage caused to any person as a result of the cancellation of a guarantee referred to in subsection (2)(e)(ii), This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 83 Versekeringswet, 2017 Wet No. 18 van 2017 83 (g) moet beheer neem oor die kontant, kontantbeleggings, aandele, ander effekte of beleggings gehou of geadministreer deur die versekeraar of beheer- maatskappy en van enige ander eiendom (roerend of vaste) of effekte wat behoort aan of gehou word deur of instruksies van die versekeraar of beheermaatskappy of enige entiteit wat regstreeks of onregstreeks beheer word deur, geaffilieer is met of vereenselwig met die versekeraar of beheermaatskappy; (h) moet die Voorsorgowerheid in kennis stel indien die kurator dit nodig of raadsaam ag dat aansoek by die hof gedoen word — (i) vir die uitbreiding van die kurator se bevoegdhede na enige ander maatskappy (met inbegrip van enige beherende maatskappy of filiaal) of ander verwante of onderling verwante persoon of persoon aan die versekeraar of beheermaatskappy verbind; 5 10 (ii) vir die likwidasie van die versekeraar of beheermaatskappy; of (iii) vir enige hulp soos beoog in die ‘‘Financial Sector Regulation Act’’ teen 15 (i) (j) die versekeraar of beheermaatskappy of enige van sy sleutelpersone; kan, in die kurator se diskresie en afhangende van die beskikbare hulpbronne, volle of gedeeltelike betalings maak aan polishouers onder geïdentifiseerde omstandighede, na die vooraf toestemming van die Voorsorgowerheid verkry is; kan enige ondersoek doen met die oog daarop om die bates op te spoor wat aan die versekeraar of beheermaatskappy behoort of deur hom geadministreer of beheer word, met inbegrip van sodanige bates wat by wyse van effekte, in kontant of in likiede vorm gehou word; (l) (k) kan sodanige redelike uitgawes en kostes aangaan wat nodig of raadsaam mag wees vir die kuratorskap en beheer van die versekeraar of beheermaatskappy en bedrywighede van die versekeraar of beheermaatskappy, en om daardie uitgawes en kostes te betaal uit die bates gehou, geadministreer of onder beheer van die versekeraar of beheermaatskappy; kan, na oorleg met die Voorsorgowerheid, sodanige bystand van ’n regs-, boekhou-, administrasie of ’n professionele of tegniese aard verkry, wat die kurator redelik nodig mag ag vir die verrigting van die kurator se pligte en die kurator kan redelike heffings en uitgawes sodanig afgesluit, dek uit die bates gehou deur of onder beheer van die versekeraar of beheermaatskappy; (m) kan enige regsverrigtinge namens die versekeraar of die beheermaatskappy instel of voortsit, en enige gedingvoering teen die versekeraar of beheer- maatskappy, verdedig; (n) kan sodanige fondse belê wat nie vir die onmiddellike doeleindes van die besigheid vereis word nie, by ’n bank geregistreer kragtens die Bankwet, 1990 (Wet No. 94 van 1990), of ander likiede instrument deur die Voorsorg- owerheid goedgekeur; (o) kan die bestaande bankrekenings van die versekeraar of die beheer- maatskappy en van sy filiale of verwante persone, en van enige direkteur van die versekeraar of beheermaatskappy, vir sover enige geld wat aan die versekeraar of beheermaatskappy behoort in sodanige laasgenoemde bankrekening betaal is, onder sy beheer neem en dit bedryf of vries; (p) kan enige nuwe bankrekeninge vir die doeleindes van die kuratorskap oopmaak en bedryf; en (q) kan enige kostes, heffings en ander uitgawes wat redelikerwys deur die kurator aangegaan is in die uitvoering van pligte ingevolge hierdie artikel, met inbegrip van die kurator se eie vergoeding, as administrasiekostes eis, indien die likwidasie van die versekeraar of beheermaatskappy begin. (3) ’n Kurator, wanneer ingevolge subartikel (2) gehandel word, moet die verwagte uitwerking op die krediteure van die versekeraar of beheermaatskappy oorweeg en of— (a) krediteure billik behandel word; en (b) wanneer kragtens subartikel (2)(e)(i) gehandel word, ’n redelike waarskynlik- heid bestaan dat ’n krediteur nie groter verliese sal ly nie, soos op die datum van die voorgestelde beskikking, oordrag of beskikking en oordrag, as wat gely sou word indien die versekeraar of beheermaatskappy op die datum van die voorgestelde beskikking, oordrag of beskikking en oordrag gelikwideer sou word. (4) ’n Eis vir skade ten opsigte van enige verlies gelei deur of skade veroorsaak vir enige persoon as gevolg van die kansellasie van ’n waarborg in subartikel (2)(e)(ii) 20 25 30 35 40 45 50 55 60 This gazette is also available free online at www.gpwonline.co.za - 84 Verify source ↗
No. 41388
AI-assisted research summary: This section says insurers and controlling companies in business rescue or related court proceedings must involve the Prudential Authority in specified ways, and cannot start business rescue or winding-up while under curatorship unless the curator applies.
84 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 84 other than a guarantee that constitutes an insurance obligation under a life insurance policy, or provision of security, may be instituted against the insurer or controlling company after the expiration of a period of six months from the date of the cancellation. (5) An insurer or a controlling company may not begin or enter business rescue or be wound-up while under curatorship within the meaning of the Financial Institutions (Protection of Funds) Act, unless the curator applies for the business rescue or winding-up. 5 Part 3 Business Rescue Application of Companies Act to business rescue of insurers and controlling companies 10 55. (1) Despite any other law under which an insurer or controlling company is established or incorporated, Chapter 6 of the Companies Act applies, subject to this section and with the necessary changes, in relation to an insurer or a controlling company, to the exclusion of any similar provisions under the Co-operatives Act or any other law under which an insurer or controlling company is established or incorporated, and in such application the Prudential Authority must be deemed to be an affected person. 15 (2) In the application of Chapter 6 of the Companies Act— (a) a reference to the Commission must be construed as a reference also to the 20 (b) (c) (d) Prudential Authority; the reference to creditors must be construed as a reference also to the policyholders of the insurer; a reference relating to the inability of an insurer or a controlling company to pay all its debts, must be construed as relating also to its inability to comply with the financial soundness requirements of this Act; and in addition to any question relating to the business of an insurer, it must be considered if any proposed action is in the interests of policyholders of an insurer or, in the case of a controlling company, the interests of policyholders of the insurers that are part of the insurance group. Business rescue applications and resolutions 56. (1) The Prudential Authority may make an application under section 131 of the Companies Act in respect of an insurer or a controlling company, if the Prudential Authority reasonably believes that it is in the interests of the insurer’s policyholders or, in the case of a controlling company, the interests of policyholders of the insurers that are part of the insurance group to do so. (2) (a) If an application to a court for an order relating to the business rescue of an insurer or a controlling company is made by an affected person other than the Prudential Authority— (i) (ii) it shall not be heard unless copies of the notice of motion and of all accompanying affidavits and other documents filed in support of the application have been lodged with the Prudential Authority at least 14 days before the application is set down for hearing; the Prudential Authority may, if the Prudential Authority reasonably believes that the application is not in the interests of policyholders of the insurer, or, in the case of a controlling company, the interests of policyholders of the insurers that are part of the insurance group, join the application as a party and file affidavits and other documents in opposition to the application. (b) The court may only grant an order relating to the business rescue of an insurer or a controlling company if the Prudential Authority has been notified of the application as required in paragraph (a)(i). (3) (a) Any resolution of an insurer or a controlling company to begin business rescue proceedings is subject to the approval of the Prudential Authority. 25 30 35 40 45 50 (b) An insurer or a controlling company may file a resolution under section 129 of the Companies Act only after the Prudential Authority has approved the resolution. 55 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 85 Versekeringswet, 2017 Wet No. 18 van 2017 85 bedoel, behalwe ’n waarborg wat ’n versekeringsverbintenis kragtens ’n lewens- versekeringspolis, of voorsiening van effekte, daarstel kan ingestel word teen die versekeraar of beheermaatskappy na verstryking van ’n tydperk van ses maande vanaf die datum van die kansellasie. (5) ’n Versekeraar of ’n beheermaatskappy kan nie ondernemingsredding begin of aangaan of gelikwideer word nie terwyl onder kuratele binne die betekenis van die Wet tensy die kurator om die op Finansiële Instellings (Beskerming van Fondse), ondernemingsredding of likwidasie aansoek doen. Deel 3 Ondernemingsredding Toepassing van Maatskappywet op ondernemingsredding van versekeraars en beheermaatskappye 55. (1) Ondanks enige ander wet waarkragtens ’n versekeraar of beheermaatskappy ingestel of ingelyf is, is Hoofstuk 6 van die Maatskappywet van toepassing, behoudens hierdie artikel en met die nodige veranderinge, in verband met ’n versekeraar of ’n beheermaatskappy, tot die uitsluiting van enige soortgelyke bepalings kragtens die ‘‘Co-operatives Act’’ of ’n versekeraar of is, en in sodanige toepassing moet die beheermaatskappy ingestel of Voorsorgowerheid geag word ’n geraakte persoon te wees. ander wet waarkragtens ingelyf enige (2) By die toepassing van Hoofstuk 6 van die Maatskappywet— (a) moet ’n verwysing na die Kommissie uitgelê word ook ’n verwysing na die Voorsorgowerheid te wees; (b) moet die verwysing na krediteure uitgelê word as ook ’n verwysing na die polishouers van die versekeraar te wees; (c) moet ’n verwysing in verband met ’n versekeraar of beheermaatskappy se onvermoë om al sy skulde te delg, uitgelê word as dat dit ook verband hou met sy onvermoë om aan hierdie Wet se vereistes vir finansiële gesondheid te voldoen; en (d) benewens enige vraag oor die besigheid van ’n versekeraar, moet oorweeg word of enige voorgestelde stappe in die belang van polishouers van ’n versekeraar is of, in die geval van ’n beheermaatskappy, die belange van polishouer van die versekeraar wat deel van die versekeringsgroep is. Ondernemingsreddingaansoeke en besluite 56. (1) Die Voorsorgowerheid kan ’n aansoek kragtens artikel 131 van die Maatskappywet doen ten opsigte van ’n versekeraar of ’n beheermaatskappy, indien die Voorsorgowerheid redelikerwys van mening is dat dit in die belang van die polishouers van versekeraars wat deel van die versekeringsgroep is, om dit te doen. (2) (a) Indien ’n aansoek aan ’n hof om ’n bevel aangaande die ondernemingsredding van ’n versekeraar of ’n beheermaatskappy deur ’n geraakte persoon behalwe die Voorsorgowerheid, gedoen word— (i) word dit nie aangehoor nie tensy afskrifte van die kennisgewing van mosie en van alle gepaardgaande beëdigde verklarings en ander dokumente ter ondersteuning van die aansoek by die Voorsorgowerheid ingedien word ten minste 14 dae voordat die aansoek aangehoor gaan word; (ii) die Voorsorgowerheid kan, indien die Voorsorgowerheid redelikerwys van mening is dat die aansoek nie in die belang is van polishouers van die versekeraar of, in die geval van ’n beheermaatskappy, in die belang van polishouers van die versekeraars wat deel is van die versekeringsgroep nie, by die aansoek aansluit as ’n party en beëdigde verklarings en ander dokumente in teenstand van die aansoek indien. 5 10 15 20 25 30 35 40 45 50 (b) Die hof mag slegs ’n bevel in verband met die ondernemingsredding van ’n versekeraar of ’n beheermaatskappy toestaan indien die Voorsorgowerheid in kennis gestel is van die aansoek soos in paragraaf (a)(i) bedoel. (3) (a) ’n Besluit van ’n versekeraar of beheermaatskappy om ondernemingsredding- verrigtinge te begin is aan die goedkeuring van die Voorsorgowerheid onderhewig. 55 (b) ’n Versekeraar of ’n beheermaatskappy kan ’n besluit kragtens artikel 129 van die Maatskappywet slegs indien nadat die Voorsorgowerheid die besluit goedgekeur het. This gazette is also available free online at www.gpwonline.co.za - 94 Verify source ↗
No. 41388
AI-assisted research summary: The Prudential Authority may make prudential standards, and insurers must comply with the standards that apply to them.
94 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 Prudential Standards 94 63. (1) (a) The Prudential Authority may prescribe Prudential Standards on any matter that is required or permitted to be prescribed in terms of this Act. (b) An insurer must comply with prudential standards that apply to that insurer. (2) The Prudential Authority when making of Prudential Standards, must have regard 5 to— (a) (b) (c) the objective of this Act; the interests of policyholders; international regulatory and supervisory standards, to the extent practicable and with due consideration to the South African context; (d) developmental, financial inclusion, and transformation objectives; and (e) the nature, scale and complexity of different kinds or types of insurers and controlling companies. 10 (3) A Prudential Standard may— (a) apply to insurers, controlling companies, key persons or significant owners 15 generally; (b) apply to insurance business or the conducting of insurance business generally; or (c) be limited in application to particular kinds or types of insurers, controlling companies, key persons or significant owners, or to particular types, or classes or sub-classes of insurance business, which may be defined— (i) in relation to insurers, insurance groups, key persons or significant owners, either in relation to a category, kind or in any other manner; and in relation to insurance groups, either in relation to a category, kind or with reference to the business of the insurance groups or in any other manner. (ii) 20 25 (4) (a) A Prudential Standard may— (i) impose requirements for approval by the Prudential Authority in respect of specified matters; or (ii) be made applicable to existing actions, activities, transactions, policies and 30 appointments. (b) Where a Prudential Standard is made applicable to existing actions, activities, transactions, policies and appointments, the Prudential Standard must allow for a reasonable period within which the Prudential Standard must be complied with. (5) A Prudential Standard referred to in section 47(5) with respect to auditing standards and requirements, applies despite any contrary requirement in Regulations or an instrument made under an Act of Parliament. 35 Publication by Prudential Authority - 64 Verify source ↗
The Prudential Authority must publish and regularly update the following on the
AI-assisted research summary: The Prudential Authority must publish and regularly update specified supervisory and insurance-sector information on its official website.
64. The Prudential Authority must publish and regularly update the following on the official website: (a) The objectives of supervision and the Prudential Authority’s powers and (b) (c) (d) (e) functions; the general criteria and methods used in the supervisory review process; aggregate statistical data on key aspects of the application of the financial soundness and prudential framework referred to in Chapter 6; information and analysis about the financial condition of the insurance sector; and subject to confidentiality considerations, and in so far as it does not jeopardise other supervisory objectives, information on— (i) (ii) failed insurers, controlling companies or insurance groups; supervisory and regulatory actions taken in respect of insurers or controlling companies. 40 45 50 This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 95 Voorsorgstandaarde 95 63. (1) (a) Die Voorsorgowerheid kan Voorsorgstandaarde voorskryf oor enige aangeleentheid wat vereis of toegelaat word om voorgeskryf te word ingevolge hierdie Wet. (b) ’n Versekeraar moet voldoen aan voorsorgstandaarde wat op daardie versekeraar 5 van toepassing is. (2) Die Voorsorgowerheid moet, by die maak van Voorsorgstandaarde, ag slaan op— (a) die oogmerk van hierdie Wet; (b) die belange van polishouers; (c) internasionale regulerings- en toesigstandaarde, vir sover dit doenbaar is en met behoorlike inagneming van die Suid-Afrikaanse konteks; (d) oogmerke vir ontwikkeling, finansiële insluiting en transformasie; en (e) die aard, skaal en kompleksiteit van verskillende soorte of tipes versekeraars en beheermaatskappye. (3) ’n Voorsorgstandaard kan— (a) op versekeraars, beheermaatskappye, sleutelpersone of beduidende eienaars oor die algemeen van toepassing wees; (b) op versekeringsbesigheid of die dryf van versekeringsbesigheid oor die algemeen van toepassing wees; of (c) van beperkte toepassing wees op bepaalde soorte of tipes versekeraars, beheermaatskappye, sleutelpersone of beduidende eienaars, of op bepaalde tipes, of klasse of subklasse van versekeringsbesigheid, wat omskryf kan word— (i) in verband met versekeraars, versekeringsgroepe, sleutelpersone of beduidende eienaars, hetsy in verband met ’n kategorie, soort of op enige ander wyse; en in verband met versekeringsgroepe, hetsy in verband met ’n kategorie, soort of met verwysing na die besigheid van die versekeringsgroepe of op enige ander wyse. (ii) 10 15 20 25 (4) (a) ’n Voorsorgstandaard kan— (i) vereistes vir goedkeuring deur die Voorsorgowerheid ten opsigte van bepaalde 30 aangeleenthede, oplê; of (ii) van toepassing gemaak word op bepaalde stappe, aktiwiteite, transaksies, polisse en aanstellings. (b) Waar ’n Voorsorgstandaard op bestaande stappe, aktiwiteite, transaksies, polisse en aanstellings van toepassing gemaak word, moet die Voorsorgstandaard voorsiening maak vir ’n redelike tydperk waarbinne die Voorsorgstandaard aan voldoen moet word. (5) ’n Voorsorgstandaard in artikel 47(4) bedoel, is ten opsigte van ouditstandaarde toepassing ondanks enige teenstrydige vereiste in Regulasies of ’n wetsbepaling kragtens ’n Parlementswet uitgevaardig. 35 40 Publikasie deur Voorsorgowerheid - 64 Verify source ↗
Die Voorsorgowerheid moet die volgende op die amptelike webwerf publiseer en
AI-assisted research summary: The Voorsorgowerheid must publish specified supervisory information on its official website and keep it updated regularly.
64. Die Voorsorgowerheid moet die volgende op die amptelike webwerf publiseer en gereeld bywerk: (a) Die oogmerke van toesighouding en die Voorsorgowerheid se bevoegdhede en werksaamhede; (b) die algemene maatstawwe en metodes wat in die toesighoudende oorsigproses (c) gebruik word; saamgestelde statistiese data oor sleutelaspekte van die toepassing van die raamwerk vir finansiële gesondheid en voorsorg in Hoofstuk 6 bedoel; inligting en analise oor die finansiële toestand van die versekeringsektor; en (d) (e) behoudens vertroulikheidsoorwegings, en vir sover dit nie die toesighoudende oogmerke in gedrang bring nie, inligting oor— (i) mislukte versekeraars, beheermaatskappye of versekeringsgroepe; (ii) toesighoudende en reguleringstappe ten opsigte van versekeraars of beheermaatskappye gedoen. 45 50 55 This gazette is also available free online at www.gpwonline.co.za - 96 Verify source ↗
No. 41388
AI-assisted research summary: The Prudential Authority can recognize foreign insurance requirements as equivalent, grant or withdraw exemptions, and take action against unlicensed insurance business.
96 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 Determination of another jurisdiction as equivalent 96 65. (1) The Prudential Authority may by notice on the official website determine that the requirements imposed by a foreign jurisdiction are equivalent to this Act if the Prudential Authority is satisfied that the laws, and supervisory and information sharing frameworks, established in that foreign jurisdiction meet the objects of this Act. (2) The Prudential Authority may amend or repeal any determination under subsection (1) from time to time. Exemptions 66. (1) The Prudential Authority may exempt any insurer or a controlling company from, or in respect of, a provision of this Act for a period and on conditions determined by the Prudential Authority— (a) (b) (c) (d) if practicalities impede the strict application of a specific provision of this Act; if a strict application of a specific provision of this Act is not proportional to the nature, scale and complexity of the business of an insurer or an insurance group; for developmental, financial inclusion and transformation objectives neces- sary to facilitate the progressive or incremental compliance of this Act by a specific insurer, including meeting the targets envisaged by the Financial Sector Code; and if the granting of the exemption will not— (i) conflict with the public interest or prejudice policyholders; or (ii) undermine the achievement of the objective of this Act. (2) Any exemption may apply to insurers or controlling companies generally or be limited in its application to particular kinds or types of insurers or controlling companies, which may be defined either in relation to a category, kind, size or in any other manner. (3) Any exemption may be granted subject to any conditions specified by the Prudential Authority. (4) Any exemption in respect of which an insurer or controlling company has to comply with conditions, lapses whenever the insurer or controlling company contra- venes or fails to comply with any such conditions. (5) The Prudential Authority— (a) must publish an exemption on the official website; (b) may, at any time, by notice to the insurer or controlling company and on the official website withdraw any exemption, wholly or in part and on any ground which the Prudential Authority determines sufficient. Unlicensed insurance business 67. (1) If a person contravened or is contravening section 5(1) of this Act, the Prudential Authority, in addition to any other action that the Prudential Authority may take under this Act or the Financial Sector Regulation Act, may— (a) direct that person to make arrangements satisfactory to the Prudential Authority to discharge all or any part of the obligations under insurance policies entered into or purported to be entered into by that person; or (b) apply to the court for the sequestration or liquidation of that person, whether he, she or it is solvent or not, in accordance with the Insolvency Act, 1936 (Act No. 24 of 1936), the Companies Act, the Co-operatives Act or the law under which that person is established or incorporated. 5 10 15 20 25 30 35 40 45 (2) In deciding an application contemplated in paragraph (1)(b), the court— (a) may take into account whether the sequestration or liquidation of the person concerned would be in the interests of the policyholders concerned; 50 (b) may make an order concerning the manner in which claims may be proven by policyholders; and (c) must appoint as trustee or liquidator a person nominated by the Prudential Authority. This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 97 Vasstelling van ander jurisdiksie as ekwivalent 97 65. (1) Die Voorsorgowerheid kan by kennisgewing op die amptelike webwerf bepaal dat die vereistes deur ’n buitelandse jurisdiksie opgelê, gelykstaande is aan hierdie Wet indien die Voorsorgowerheid tevrede is dat die wette en raamwerke vir toesig en deel van inligting wat in daardie buitelandse jurisdiksie ingestel is, aan die oogmerke van hierdie Wet voldoen. (2) Die Voorsorgowerheid kan enige vasstelling kragtens subartikel (1) van tyd tot tyd wysig. Vrywarings 66. (1) Die Voorsorgowerheid kan enige versekeraar of ’n beheermaatskappy vrywaar van, of ten opsigte van, ’n bepaling van hierdie Wet vir ’n tydperk en op voorwaardes deur die Voorsorgowerheid bepaal— (a) (b) indien praktiese oorwegings die streng toepassing van ’n spesifieke bepaling van hierdie Wet belemmer; indien ’n streng toepassing van ’n spesifieke bepaling van hierdie Wet nie in verhouding is tot die aard en kompleksiteit van die besigheid van ’n versekeraar of versekeringsgroep nie; (c) vir oogmerke van ontwikkeling, finansiële insluiting en transformasie wat nodig is om progressiewe of toenemende voldoening aan hierdie Wet deur ’n spesifieke versekeraar te fasiliteer, met inbegrip van voldoening aan teikens deur die ‘‘Financial Sector Code’’ in die vooruitsig gestel; en indien die toestaan van die vrywaring nie— (i) onbestaanbaar met die openbare belang sal wees of polishouers sal (d) benadeel nie; of (ii) die bereiking van die oogmerk van hierdie Wet sal ondermyn nie. (2) Enige vrywaring kan oor die algemeen op versekeraars of beheermaatskappye van toepassing wees of tipes beheermaatskappye, wat omskryf kan word in verband met ’n kategorie, soort, grootte of op enige ander wyse. in toepassing beperk word tot bepaalde soorte of 5 10 15 20 25 (3) Enige vrywaring kan toegestaan word behoudens enige voorwaardes deur die 30 Voorsorgowerheid gespesifiseer. (4) Enige vrywaring ten opsigte waarvan ’n versekeraar of beheermaatskappy aan voorwaardes moet voldoen, verstryk wanneer die versekeraar of beheermaatskappy enige sodanige voorwaardes oortree of versuim om daaraan te voldoen. (5) Die Voorsorgowerheid— (a) moet ’n vrywaring op die amptelike webwerf publiseer; (b) kan, te eniger tyd, by kennisgewing aan die versekeraar of beheermaatskappy en op die amptelike webwerf, enige vrywaring gedeeltelik of in die geheel intrek op enige gronde wat die Voorsorgowerheid voldoende ag. Ongelisensieerde versekeringsbesigheid 67. (1) Indien ’n persoon artikel 5(1) van hierdie Wet oortree het of oortree, kan die Voorsorgowerheid, bo en behalwe enige ander stappe wat die Voorsorgowerheid kragtens hierdie Wet of die ‘‘Financial Sector Regulation Act’’ kan doen— (a) daardie persoon opdrag gee om reëlings te tref wat die Voorsorgowerheid bevredigend vind om alle of ’n gedeelte van die verbintenisse kragtens versekeringspolisse wat deur daardie persoon afgesluit of na bewering afgesluit is, na te kom; of (b) by die hof aansoek doen om sekwestrasie of likwidasie van daardie persoon, hetsy hy, sy of dit solvent is al dan nie, ooreenkomstig die Insolvensiewet, 1936 (Wet No. 24 van 1936), die Maatskappywet, die Koöperasiewet of die wet waarkragtens daardie persoon ingestel of ingelyf is. (2) Wanneer oor ’n aansoek in paragraaf (1)(b) beoog, beslis word— (a) kan die hof in ag neem of die sekwestrasie of likwidasie van die betrokke persoon in die belang van die betrokke polishouers sal wees; 35 40 45 50 (b) kan die hof ’n bevel gee aangaande die wyse waarop eise deur polishouers 55 bewys kan word; en (c) moet die hof ’n persoon deur die Voorsorgowerheid benoem as trustee of likwidateur aanstel. This gazette is also available free online at www.gpwonline.co.za - 98 Verify source ↗
No. 41388
AI-assisted research summary: This section sets penalties for late or missing submissions, creates several insurance-related offences, and lets the Minister make certain regulations.
98 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 Penalties for non-submission or late submission 98 68. (1) A person who fails to— (a) submit any document or information required in or under this Act to be submitted to the Prudential Authority; (b) publish any document or information required in or under this Act to be 5 (c) published; or submit or publish any document or information referred to in paragraph (a) or (b) within the specified period, is liable to a penalty not exceeding R5 000 for every day during which the failure continues, unless the Prudential Authority, on good cause shown, waives the penalty or any part thereof. 10 (2) The amount referred to in subsection escalates annually, from the effective date of this Act, by the Consumer Price Index (CPI) annual inflation rate published by Statistics South Africa, as defined in section 1 of the Statistics Act, 1999 (Act No. 6 of 1999). Offences 69. (1) Any person commits an offence and is on conviction liable to a fine not exceeding R10 million if that person— (a) contravenes or fails to comply with a provision of section 5(1), 10 or 29(2) or 29(3); or fails to comply with a request under section 43(2). (b) (2) A holding company of or another juristic person designated under subsection 10(1) commits an offence and is on conviction liable to a fine not exceeding R50 million if that holding company of or another juristic person contravenes or fails to comply with a provision of section 10(2). (3) A key person commits an offence and is on conviction liable to a fine not exceeding R10 million if that person contravenes or fails to comply with a provision of section 16(4). (4) An auditor commits an offence and is on conviction liable to a fine not exceeding R10 million if that auditor contravenes or fails to comply with a provision of section 16(5), 32(4), 32(5) or 32(6). (5) A significant owner commits an offence and is on conviction liable to a fine not exceeding R50 million if that owner fails to comply with a directive issued under section 17(4). 15 20 25 30 (6) An insurer commits an offence and is on conviction liable to a fine not exceeding R50 million if that insurer fails to comply with a directive issued under section 29(4). 35 CHAPTER 11 GENERAL PROVISIONS Regulations relating to certain classes of insurance business set out in Schedule 2 70. (1) The Minister, despite the definition of ‘‘business of a medical scheme’’ in section 1(1) of the Medical Schemes Act, 1998 (Act No. 131 of 1998), may make regulations identifying a kind, type or category of contract as an insurance policy that may be entered into under the— risk class of life insurance business in Table 1 of Schedule 2; (a) (b) accident and health class of non-life insurance business in Table 2 of Schedule 2; or the travel class of non-life insurance business in Table 2 of Schedule 2. (c) (2) Regulations under subsection (1)— (a) must be made only— in consultation with the Minister of Health; (i) (ii) after consultation between the National Treasury, the Prudential Author- ity and the Registrar of Medical Schemes established under the Medical Schemes Act, 1998; and 40 45 50 This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 99 99 Strawwe vir nie-indiening of laat indiening 68. (1) Iemand wat versuim om— (a) enige dokument of inligting wat in of kragtens hierdie Wet vereis word om aan die Voorsorgowerheid voorgelê te word; (b) enige dokument of inligting wat in of kragtens hierdie Wet gepubliseer moet 5 (c) word; of enige dokument of inligting in paragraaf (a) of (b) bedoel, binne die bepaalde tydperk voor te lê of te publiseer, is onderhewig aan ’n boete van hoogstens R5 000 vir elke dag waartydens die versuim voortduur, tensy die Voorsorgowerheid, by die aantoon van goeie gronde, afstand doen van die boete of enige gedeelte daarvan. (2) Die bedrag in subartikel (1) bedoel, verhoog jaarliks, met ingang van die inwerkingtredingsdatum van hierdie Wet, met die Verbruikersprysindeks (VPI) se jaarlikse inflasiekoers deur Statistieke Suid-Afrika (soos omskryf in artikel 1 van die Wet op Statistieke, 1999 (Wet No. 6 van 1999)), gepubliseer. 10 15 Misdrywe 69. (1) Enige persoon pleeg ’n misdryf en is by skuldigbevinding strafbaar met ’n boete van hoogstens R10 miljoen indien daardie persoon— (a) ’n bepaling van artikel 5(1), 10, 29(2) of 29(3) oortree of versuim om daaraan te voldoen; of 20 (b) versuim om aan ’n versoek kragtens artikel 43(2) te voldoen. (2) ’n Beherende maatskappy, of ’n ander regspersoon kragtens subartikel 10(1) aangewys, pleeg ’n misdryf en is by skuldigbevinding strafbaar met ’n boete van hoogstens R50 miljoen indien daardie beherende maatskappy of ander regspersoon ’n bepaling van artikel 10(2) oortree of versuim om daaraan te voldoen. (3) ’n Sleutelpersoon pleeg ’n misdryf en is by skuldigbevinding strafbaar met ’n boete van hoogstens R10 miljoen indien daardie persoon ’n bepaling van artikel 16(4) oortree of versuim om daaraan te voldoen. (4) ’n Ouditeur pleeg ’n misdryf en is by skuldigbevinding strafbaar met ’n boete van hoogstens R10 miljoen indien daardie ouditeur ’n bepaling van artikel 16(5), 32(4), 32(5) of 32(6) oortree of versuim om daaraan te voldoen. (5) ’n Beduidende eienaar pleeg ’n misdryf en is by skuldigbevinding strafbaar met ’n boete van hoogstens R50 miljoen indien daardie eienaar versuim om aan ’n lasgewing kragtens artikel 17(4) uitgereik, te voldoen. (6) ’n Versekeraar pleeg ’n misdryf en is by skuldigbevinding strafbaar met ’n boete van hoogstens R50 miljoen indien daardie versekeraar versuim om aan ’n lasgewing kragtens artikel 29(4) uitgereik, te voldoen. 25 30 35 HOOFSTUK 11 ALGEMENE BEPALINGS Regulasies aangaande sekere klasse van versekeringsbesigheid in Bylae 2 uiteengesit 40 70. (1) Die Minister, ondanks die omskrywing van ‘‘besigheid van ’n mediese skema’’ in artikel 1(1) van die Wet op Mediese Skemas, 1998 (Wet No. 131 van 1998), omskryf, kan regulasies uitvaardig om ’n soort, tipe of kategorie kontrak as ’n versekeringspolis te identifiseer wat uitgeneem kan word onder die— risikoklas van versekeringsbesigheid in Tabel 1 van Bylae 2; (a) (b) ongevalle- en gesondheidsklas van nielewensversekering in Tabel 2 van Bylae 2; of (c) die reisklas van nielewensversekeringsbesigheid in Tabel 2 van Bylae 2. (2) Regulasies kragtens subartikel (1)— (a) moet slegs uitgevaardig word— in oorleg met die Minister van Gesondheid; (i) (ii) na oorleg tussen die Nasionale Tesourie, die Voorsorgowerheid en die Registrateur van Mediese Skemas ingestel kragtens die Wet op Mediese Skemas, 1998; en 45 50 55 This gazette is also available free online at www.gpwonline.co.za
Part
CHAPTER 4
- 21 Verify source ↗
Application of Chapter
AI-assisted research summary: This section states that Chapter 22 applies.
21. Application of Chapter 22. 23. 24. 25. - 26 Verify source ↗
Variation of licence conditions
AI-assisted research summary: This section concerns variation of licence conditions, suspension of a licence, and the consequences of suspension.
26. Variation of licence conditions Suspension of licence 27. 28. Consequences of suspension of licence - 29 Verify source ↗
Withdrawal of licence
AI-assisted research summary: This section is titled “Withdrawal of licence,” but the provided text does not include the operative rule.
29. Withdrawal of licence 30 35 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 5 Versekeringswet, 2017 Wet No. 18 van 2017 5 7. Eise teen takke van buitelandse herversekeraars of Lloyd’s-onderskrywers Deel 4 Versekeringsgroepe Toepassing van Deel 8. 9. Kennisgewing deur versekeraar by deelwording van groep maatskappye - 10 Verify source ↗
Aanwysing van versekeringsgroep en lisensiëring van beheermaatskappy
AI-assisted research summary: This section is about designating an insurance group and licensing a holding company.
10. Aanwysing van versekeringsgroep en lisensiëring van beheermaatskappy - 11 Verify source ↗
Verantwoordelikheid van direksie van beheermaatskappy
AI-assisted research summary: Section on the responsibility of the board of a holding company.
11. Verantwoordelikheid van direksie van beheermaatskappy - 12 Verify source ↗
Deursigtige struktuur vir versekeringsgroep
AI-assisted research summary: This section is titled “Transparent structure for insurance group.”
12. Deursigtige struktuur vir versekeringsgroep 5 HOOFSTUK 3 SLEUTELPERSONE EN BEDUIDENDE EIENAARS 10 Deel 1 Vereistes vir geskiktheid en gepastheid - 13 Verify source ↗
Vereistes vir geskiktheid en gepastheid vir sleutelpersone en beduidende
AI-assisted research summary: This section is about fit and proper requirements for key persons and significant owners.
13. Vereistes vir geskiktheid en gepastheid vir sleutelpersone en beduidende eienaars Deel 2 Aanstelling en beëindiging van aanstelling van sleutelpersone - 14 Verify source ↗
Goedkeuring van aanstelling van sekere sleutelpersone
AI-assisted research summary: Section 14: approval of the appointment of certain key persons.
14. Goedkeuring van aanstelling van sekere sleutelpersone - 15 Verify source ↗
Kennisgewing van aanstelling en verandering in omstandighede van sekere
AI-assisted research summary: 15. Kennisgewing van aanstelling en verandering in omstandighede van sekere sleutelpersone Beëindiging van aanstelling van sleutelpersone 16. Deel 3 Veranderinge in beheer oor ’n versekeraar of beheermaatskappy en benoemdes
15. Kennisgewing van aanstelling en verandering in omstandighede van sekere sleutelpersone Beëindiging van aanstelling van sleutelpersone 16. Deel 3 Veranderinge in beheer oor ’n versekeraar of beheermaatskappy en benoemdes - 17 Verify source ↗
Veranderinge in beheer oor versekeraar of beheermaatskappy
AI-assisted research summary: This section heading refers to changes in control over an insurer or holding company.
17. Veranderinge in beheer oor versekeraar of beheermaatskappy 18. Registrasie van aandele in naam van benoemde Deel 4 Sleutelpersone of beduidende eienaar nie geskik en gepas nie 19. Sleutelpersoon of beduidende eienaar nie geskik en gepas of nie meer geskik en gepas nie - 20 Verify source ↗
Assessering of sleutelpersoon of beduidende eienaar geskik en gepas is
AI-assisted research summary: Section heading on assessing whether a key person or significant owner is fit and proper.
20. Assessering of sleutelpersoon of beduidende eienaar geskik en gepas is HOOFSTUK 4 LISENSIËRING, OPSKORTING EN INTREKKING VAN LISENSIE Toepassing van Hoofstuk 21. - 22 Verify source ↗
Vereistes vir lisensie
AI-assisted research summary: Heading for licensing requirements and licence conditions.
22. Vereistes vir lisensie Lisensiëring 23. Lloyd’s-onderskrywers en Lloyd’s-gelisensieerd 24. 25. Lisensievoorwaardes - 26 Verify source ↗
Variasie van lisensievoorwaardes
AI-assisted research summary: This section concerns variation of licence conditions.
26. Variasie van lisensievoorwaardes - 27 Verify source ↗
Opskorting van lisensie
AI-assisted research summary: This section concerns suspension of a licence.
27. Opskorting van lisensie - 28 Verify source ↗
Gevolge van opskorting van lisensie
AI-assisted research summary: Section heading on the consequences of suspension of a licence and revocation of a licence.
28. Gevolge van opskorting van lisensie 29. Intrekking van lisensie 15 20 25 30 35 40 This gazette is also available free online at www.gpwonline.co.za - 6 Verify source ↗
No. 41388
AI-assisted research summary: Section 6 is headed “Failure to maintain governance framework” for insurers and insurance groups.
6 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 6 CHAPTER 5 GOVERNANCE Part 1 Insurers and insurance groups Failure to maintain governance framework - 21 Verify source ↗
Sections 22 and 23 do not apply to a Lloyd’s underwriter or Lloyd’s.
AI-assisted research summary: Sections 22 and 23 do not apply to a Lloyd’s underwriter or Lloyd’s.
21. Sections 22 and 23 do not apply to a Lloyd’s underwriter or Lloyd’s. 35 Requirements for licence 22. (1) In order to qualify for licensing as an insurer— (a) a person— (i) in the case of a person that intends to conduct microinsurance business only, must be a profit company or a non-profit company registered under the Companies Act, or a co-operative registered under the Co-operatives Act; in the case of a person that intends to conduct reinsurance business only, must be a public company or state-owned company registered under the Companies Act, a co-operative registered under the Co-operatives Act or a branch of a foreign reinsurer; and 40 45 (ii) This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 39 39 Deel 4 Sleutelpersone of beduidende eienaar nie geskik en gepas nie Sleutelpersoon of beduidende eienaar nie geskik en gepas of nie meer geskik en gepas nie 19. (1) Die Voorsorgowerheid kan, indien die Voorsorgowerheid redelikerwys van mening is dat ’n sleutelpersoon nie voldoen of nie meer redelik voldoen aan die vereistes vir geskiktheid en gepastheid nie, bykomend tot enige ander stappe wat die Voorsorgowerheid kragtens hierdie Wet kan doen, die versekeraar of beheermaatskappy opdrag gee om reëlings te tref, wat die Voorsorgowerheid tevrede stel, om die nievoldoening te hanteer, welke reëlings kan insluit— (a) om bykomende onderwys of opleiding aan daardie sleutelpersoon te voorsien; (b) om eksterne hulpbronne te gebruik om daardie sleutelpersoon te ondersteun; (c) om die werksaamhede en pligte van daardie sleutelpersoon uit te bestee; of (d) om ’n persoon uit die aanstelling as ’n sleutelpersoon te skors of te verwyder. (2) Indien ’n versekeraar versuim om reëlings in subartikel (1) beoog, te tref om ’n sleutelpersoon se nienakoming aan die voorgeskrewe vereistes vir geskiktheid en gepastheid te hanteer, kan die Voorsorgowerheid, bykomend tot enige ander stap wat die Voorsorgowerheid kragtens hierdie Wet kan doen— (a) bykomende verslagdoeningsvereistes aan die versekeraar of beheer- maatskappy oplê; of (b) die versekeraar of beheermaatskappy se lisensiëringsvoorwaardes verander; of (c) die versekeraar of beheermaatskappy se lisensie opskort of intrek. (3) Die Voorsorgowerheid kan, indien die Voorsorgowerheid redelikerwys van mening is dat ’n beduidende eienaar nie voldoen of nie meer voldoen aan die vereistes vir geskiktheid en gepastheid nie, bykomend tot enige ander stappe wat die Voorsorgowerheid kan doen, enige van die stappe in artikel 17(4) bedoel, doen. Assessering of sleutelpersoon of beduidende eienaar geskik en gepas is - 20 Verify source ↗
Die Voorsorgowerheid, wanneer geassesseer word of ’n sleutelpersoon of
AI-assisted research summary: The Voorsorgowerheid may request or verify information about a key person or significant owner when assessing fit and proper status.
20. Die Voorsorgowerheid, wanneer geassesseer word of ’n sleutelpersoon of beduidende eienaar geskik en gepas is of steeds geskik en gepas is, kan die verifiëring van inligting versoek, of kan inligting tot beskikking van die Voorsorgowerheid verifieer deur navrae oor daardie sleutelpersoon of beduidende eienaar by ’n staatsorgaan, kredietburo of ander bron van tersaaklike inligting te doen. 5 10 15 20 25 30 HOOFSTUK 4 LISENSIËRING, OPSKORTING EN INTREKKING VAN LISENSIE 35 Toepassing van Hoofstuk - 21 Verify source ↗
Artikels 22 en 23 is nie van toepassing op ’n Lloyd’s-onderskrywer of Lloyd’s nie.
AI-assisted research summary: Articles 22 and 23 do not apply to a Lloyd’s underwriter or Lloyd’s. To qualify for licensing as an insurer, a person must meet the stated entity-type requirements, including different rules for micro-insurance and reinsurance businesses.
21. Artikels 22 en 23 is nie van toepassing op ’n Lloyd’s-onderskrywer of Lloyd’s nie. Vereistes vir lisensie 22. (1) Ten einde vir lisensiëring as ’n versekeraar te kwalifiseer— (a) moet ’n persoon— (i) (ii) in die geval van ’n persoon wat voornemens is om slegs mikro- versekeringsbesigheid te dryf, ’n maatskappy met winsbejag of maatskappy sonder winsbejag wees kragtens die Maatskappywet ’n koöperasie kragtens die ‘‘Co-operatives Act’’, geregistreer of geregistreer; in die geval van ’n persoon wat voornemens is om slegs herversekerings- besigheid te dryf, ’n openbare maatskappy of maatskappy in staatsbesit wees wat kragtens die Maatskappywet, ’n koöperasie kragtens die ‘‘Co-operatives Act’’ geregistreer of ’n tak van ’n buitelandse belegger is; en 40 45 50 This gazette is also available free online at www.gpwonline.co.za - 40 Verify source ↗
No. 41388
AI-assisted research summary: Licence applications must be made to the Prudential Authority, and the Authority must decide them within 120 days unless a longer period is agreed.
40 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 40 (iii) in any other case, subject to section 70, must be a public company or state-owned company registered under the Companies Act, or a co-operative registered under the Co-operatives Act; (b) a person’s primary business activity must be the conducting of insurance (c) business and operations arising directly therefrom; a person must demonstrate that— (i) (ii) (iii) (iv) (v) (vi) (vii) its key persons and significant owners meet the prescribed fit and proper requirements; it has a sound business plan; it has a plan to meet its stated commitments in terms of transformation of the insurance sector, including meeting the targets envisaged by the Financial Sector Code; it has adequate operational management capabilities to conduct the classes and sub-classes of insurance business set out in Schedule 2 that it wishes to conduct; if it is a branch of a foreign reinsurer and the requirements imposed by the foreign jurisdiction in which the institution is authorised and supervised have not been determined as equivalent to this Act under section 65, the laws of the country under which the institution is authorised and supervised establish a regulatory framework equivalent to that established by this Act; if it is part of an insurance group, that its controlling company will be able to meet the requirements for insurance groups as set out in this Act; and it will be able to comply with the governance framework requirements, financial soundness requirements and reporting and public disclosure requirements of this Act; (d) (e) that person’s licensing must not be contrary to the interests of prospective policyholders or the public interest; and in the case of a state-owned company, an Act of Parliament authorises that company to conduct insurance business and the Minister has approved that the company may apply for a licence under this Act. (2) In order to qualify for licensing as a controlling company, a holding company of, or another juristic person that controls, an insurance group must demonstrate that— (a) (b) (c) its key persons and significant owners meet the prescribed fit and proper requirements; it has a sound business plan; and it will be able to comply with the governance framework, financial soundness, reporting and public disclosure requirements of this Act. (3) The Prudential Authority, prior to licensing, may require a person to change its proposed name (or a translation, shortened form or derivative thereof), if the proposed name is unacceptable because it— (a) (b) (c) (d) is identical to that of another insurer or controlling company; so closely resembles that of another insurer or controlling company that the one is likely to be mistaken for the other; is identical to or so closely resembles that under which another insurer or controlling company was previously licensed, and reasonable grounds exist for objection to its use; or is misleading or undesirable. Licensing 5 10 15 20 25 30 35 40 45 50 23. (1) An application for a licence must be made to the Prudential Authority. (2) The Prudential Authority must, in the case of a branch of a foreign reinsurer or a subsidiary of a foreign insurer, only grant or refuse an application after consultation with the regulatory authority that regulates the foreign reinsurer. (3) (a) The Prudential Authority must grant or refuse an application within 120 days of the date on which the application was submitted to the Prudential Authority, or such longer period agreed between the Prudential Authority and the applicant. 55 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 41 Versekeringswet, 2017 Wet No. 18 van 2017 41 (iii) in enige ander geval, behoudens artikel 70, moet ’n openbare maatskappy of maatskappy in staatsbesit kragtens die Maatskappywet geregistreer of ’n koöperasie kragtens die ‘‘Co-operatives Act’’ geregistreer, wees; ’n persoon se primêre sakeaktiwiteit moet die doen van versekeringsbesigheid en bedrywighede wat direk daaruit voortspruit, wees; ’n persoon moet demonstreer dat— (i) sy of haar sleutelpersone en beduidende eienaars voldoen aan die vereistes vir geskiktheid en gepastheid; (b) (c) (v) (ii) hy of sy ’n gesonde sakeplan het; (iii) hy of sy ’n plan het om sy of haar gestelde verbintenisse ingevolge transformasie van die versekeringsektor na te kom, met inbegrip van die bereiking van die teikens deur die Kode vir die Finansiële Sektor gestel; (iv) hy of sy voldoende operasionele bestuursvermoëns het om die klasse en subklasse het van versekeringsbesigheid in Bylae 2 uiteengesit te dryf wat hy of sy wil dryf; indien hy of sy ’n tak van ’n buitelandse herversekeraar is en die vereistes opgelê deur die buitelandse jurisdiksie waarin die instelling gemagtig is en oor toesig gehou word nie kragtens artikel 65 as gelykstaande aan hierdie Wet vasgestel is nie, die wette van die land waaronder die instelling gemagtig is en oor toesig gehou word, ’n reguleringsraamwerk instel wat gelykstaande is aan die reguleringsraamwerk deur hierdie Wet ingestel; indien hy of sy deel van ’n versekeringsgroep is, dat sy of haar beheermaatskappy aan die vereistes vir versekeringsgroepe soos in hierdie Wet uiteengesit, sal kan voldoen; en (vi) (vii) hy of sy aan die beheerraamwerkvereistes, vereistes vir finansiële gesondheid en verslag- en openbare bekendmakingsvereistes van hierdie Wet sal kan voldoen; (d) moet daardie persoon se lisensiëring nie in stryd wees met die belange van die voornemende polishouers of die openbare belang nie; en (e) moet ’n Parlementswet in die geval van ’n maatskappy in staatsbesit, daardie maatskappy magtig om versekeringsbesigheid te dryf en die Minister moet goedkeuring gee dat die maatskappy om ’n lisensie kragtens hierdie Wet kan aansoek doen. (2) Ten einde te kwalifiseer vir lisensiëring as ’n beheermaatskappy, moet ’n beherende maatskappy van, of ’n ander regspersoon in beheer van, ’n versekeringsgroep demonstreer dat— (a) sy sleutelpersone en beduidende eienaars voldoen aan die voorgeskrewe vereistes vir geskiktheid en gepastheid; (b) hy ’n gesonde sakeplan het; en (c) hy aan die beheerraamwerkvereistes, vereistes vir finansiële gesondheid en vereistes vir verslagdoening en openbare bekendmaking van hierdie Wet sal kan voldoen. (3) Die Voorsorgowerheid kan, voor ’n persoon sy voorgestelde naam (of ’n vertaling, verkorte vorm of afleiding daarvan) verander indien die voorgestelde naam onaanvaarbaar is omdat dit— lisensiëring, vereis dat (a) (b) identies is aan dié van ’n ander versekeraar of beheermaatskappy; so baie soos dié van ’n ander versekeraar of beheermaatskappy is dat die een met die ander verwar kan word; (c) dit identies is of so baie soos die naam is waaronder ’n ander versekeraar of beheermaatskappy voorheen gelisensieer was, en redelike gronde bestaan om teen die gebruik daarvan beswaar te maak; of (d) misleidend of ongewens is. Lisensiëring 23. (1) ’n Aansoek om ’n lisensie moet by die Voorsorgowerheid gemaak word. (2) Die Voorsorgowerheid moet, in die geval van ’n tak van ’n buitelandse herversekeraar of ’n filiaal van ’n buitelandse versekeraar, slegs ’n aansoek toestaan of weier na oorleg met die reguleringsowerheid wat die buitelandse herversekeraar reguleer. (3) (a) Die Voorsorgowerheid moet ’n aansoek binne 120 dae vanaf die datum waarop die aansoek aan die Voorsorgowerheid voorgelê is, of sodanige langer tydperk waarop die Voorsorgowerheid en die aansoeker ooreengekom het, toestaan of weier. 5 10 15 20 25 30 35 40 45 50 55 60 This gazette is also available free online at www.gpwonline.co.za - 42 Verify source ↗
No. 41388
AI-assisted research summary: The Prudential Authority must issue and publish a licence notice when it grants an application, and insurers and controlling companies must show licence references in their business materials.
42 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 42 (b) If the Prudential Authority requested additional information in terms of section 60(4)(a)(i), then the period between the date on which the additional information was requested and when the information was provided to the Prudential Authority is not considered when determining the 120 days referred to in paragraph (a). (4) (a) The Prudential Authority must, on granting an application, issue a licence and 5 publish a notice of the licensing on the official website. (b) The licence of an insurer must specify— (i) the full name of the insurer and any translation, shortened form or derivative of the name of the insurer that may be used in conducting business; the type of insurance business for which the insurer is licensed; the classes and sub-classes of insurance business that the insurer may conduct; and any conditions referred to in section 25(8) subject to which the licence is granted. (ii) (iii) (iv) (c) The licence of a controlling company must specify— (i) the full name of the controlling company and any translation, shortened form or derivative of the name of the controlling company that may be used in conducting business; and any conditions referred to in section 25(9) subject to which the licence is granted. (ii) (5) An insurer and controlling company must ensure that a reference to the fact that such a licence is held is contained in all business documentation and advertisements and other marketing material. (6) An insurer or controlling company may not change its name or any translation, shortened form or derivative of the name of the insurer or controlling company that may be used in conducting business without the approval of the Prudential Authority. (7) A licence granted under this Act cannot be transferred to another person. Lloyd’s underwriters and Lloyd’s licensed 24. (1) Lloyd’s underwriters and Lloyd’s, subject to subsection (2), are licensed to conduct— (a) non-life insurance business in all the classes and sub-classes set out in Table 2 of Schedule 2, in respect of commercial lines; and (b) non-life insurance business in sub-class 17 set out in Table 2 of Schedule 2 in respect of personal lines. (2) Lloyd’s underwriters and Lloyd’s may only with the approval of the Prudential Authority conduct non-life insurance business in the classes and sub-classes, other than sub-class 17, set out in Table 2 of Schedule 2 in respect of personal lines. (3) The Prudential Authority may impose licensing conditions similar to those referred to in section 25(8) on a Lloyd’s underwriter or Lloyd’s. Licence conditions 25. (1) An insurer, other than a microinsurer or a reinsurer, must be licensed to conduct life or non-life insurance business, and may not be licensed to conduct both. (2) An insurer, in addition to being licensed to conduct life or non-life insurance business, must be licensed to conduct one or more of the classes or sub-classes of insurance business set out in Schedule 2. (3) An insurer that is licensed to conduct a specific class or sub-class of insurance business may provide the rider benefits as may be prescribed in respect of that class or sub-class of insurance business. (4) An insurer licensed under this Act— (a) may only conduct insurance business in the classes or sub-classes of insurance business set out in Schedule 2 for which it is licensed in accordance with subsection (2); and 10 15 20 25 30 35 40 45 50 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 43 Versekeringswet, 2017 Wet No. 18 van 2017 43 (b) Indien die Voorsorgowerheid bykomende inligting ingevolge artikel 60(3) aangevra het, word die tydperk tussen die datum waarop die bykomende inligting aangevra is en wanneer die inligting aan die Voorsorgowerheid voorsien is, dan nie in ag geneem wanneer die 120 dae in paragraaf (a) bedoel, vasgestel word nie. (4) (a) Die Voorsorgowerheid moet, by die toestaan van ’n aansoek, ’n lisensie uitreik 5 en ’n kennisgewing van die lisensiëring op die amptelike webwerf publiseer. (b) Die lisensie van ’n versekeraar moet— (i) die volle naam van die versekeraar en enige vertaling, verkorte vorm of afleiding van die naam van die versekeraar wat in die dryf van besigheid gebruik kan word; (ii) die tipe versekeringsbesigheid waarvoor die versekeraar gelisensieer is; (iii) die klasse en subklasse van versekeringsbesigheid wat die versekeraar kan dryf; (iv) en enige voorwaardes in artikel 25(8) bedoel waaronder die lisensie toegestaan word, vermeld. (c) Die lisensie van ’n beheermaatskappy moet— (i) die volle naam van die beheermaatskappy en enige vertaling, verkorte vorm of afleiding van die naam van die beheermaatskappy wat in die dryf van besigheid gebruik kan word, vermeld; en enige voorwaardes in artikel 25(9) bedoel waaronder die lisensie toegestaan word, vermeld. (ii) (5) ’n Versekeraar en beheermaatskappy moet verseker dat ’n verwysing na die feit dat so ’n lisensie toegestaan is in alle besigheidsdokumentasie en advertensies en ander bemarkingsmateriaal voorkom. (6) ’n Versekeraar of beheermaatskappy mag nie die naam of enige vertaling, verkorte vorm of afleiding van die naam van die versekeraar of beheermaatskappy wat in die dryf van besigheid gebruik kan word, sonder die goedkeuring van die Voorsorgowerheid verander nie. 10 15 20 25 (7) ’n Lisensie kragtens hierdie Wet toegestaan kan nie aan ’n ander persoon oorgedra 30 word nie. Lloyd’s-onderskrywers en Lloyd’s-gelisensieerd 24. (1) Lloyd’s-onderskrywers en Lloyd’s, behoudens subartikel (2), is gelisensieer om— (a) nielewensversekeringsbesigheid in al die klasse en subklasse in Tabel 2 van 35 Bylae 2 uiteengesit, ten opsigte van kommersiële reekse te dryf; en (b) nielewensversekeringsbesigheid in subklas 17 in Tabel 2 van Bylae 2 uiteengesit ten opsigte van persoonlike reekse te dryf. (2) Lloyd’s-onderskrywers en Lloyd’s kan slegs met die goedkeuring van die Voorsorgowerheid nielewensversekering in die klasse en subklasse, behalwe subklas 17, in Tabel 2 van Bylae 2 uiteengesit, ten opsigte van persoonlike reekse dryf. (3) Die Voorsorgowerheid kan lisensiëringsvoorwaardes soortgelyk aan die lisensiëringsvoorwaardes in artikel 25(8) bedoel aan ’n Lloyd’s-onderskrywer of Lloyd’s, oplê. Lisensievoorwaardes 25. (1) ’n Versekeraar, buiten ’n mikroversekeraar of ’n herversekeraar, moet gelisensieer wees om lewens- of nielewensversekeringsbesigheid te dryf en mag nie gelisensieer wees om albei te dryf nie. (2) ’n Versekeraar moet nie net gelisensieer wees om lewens- of nielewens- versekeringsbesigheid te dryf nie, maar moet ook gelisensieer wees om een of meer van die klasse of subklasse van versekering in Bylae 2 uiteengesit, te dryf. (3) ’n Versekeraar wat gelisensieer is om ’n bepaalde klas of subklas van versekeringsbesigheid te dryf, kan die toegevoegde voordele soos ten opsigte van daardie klas of subklas van versekeringsbesigheid voorgeskryf kan word, voorsien. (4) ’n Versekeraar kragtens hierdie Wet gelisensieer— (a) kan slegs versekeringsbesigheid in die klasse of subklasse van versekerings- besigheid in Bylae 2 uiteengesit, dryf waarvoor hy ooreenkomstig subartikel (2) gelisensieer is; en 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za - 44 Verify source ↗
No. 41388
AI-assisted research summary: This section limits what captive insurers, cell captive insurers, and certain reinsurers may do, and lets the Prudential Authority add licensing conditions.
44 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 44 (b) must conduct the insurance business for which the insurer is licensed in accordance with the requirements that may be prescribed in respect of each of the classes or sub-classes of insurance business under this Act or any other Act of Parliament. (5) A captive insurer may not insure third party risks. (6) (a) Only a cell captive insurer may conduct insurance business through cell 5 structures. (b) A cell captive insurer may not insure— (i) first party risks and third party risks in the same cell structure; or (ii) the risks associated with the insurance obligations of another insurer without the approval the Prudential Authority. (7) (a) A reinsurer that is licensed to conduct both life and non-life insurance business may not be licensed to conduct reinsurance business in respect of classes 6 to 8 set out in Table 1 of Schedule 2. (b) A reinsurer licensed to conduct life or non-life insurance business or both may be licensed to conduct insurance business in respect of class 10 set out in Table 2 of Schedule 2 directly with a medical scheme registered under the Medical Schemes Act, 1998 (Act No. 131 of 1998). (8) The Prudential Authority, in the case of an insurer, may impose licensing conditions in addition to subsections (1) to (7) necessary to achieve the objective of this Act, which may include conditions— (a) (b) (c) (d) relating to the insurance business arrangements, including, but not limited to, the outsourcing arrangements or cell structures that the insurer may enter into; relating to the persons with whom the insurer may conduct insurance business; relating to reinsurance arrangements; limiting the scope and size of the insurance business that may be conducted to that set out in the application for a licence referred to in section 23; (e) prohibiting particular terms or conditions from being included in insurance (f) (g) (h) (i) policies entered into under a specific class or sub-class of business; limiting the amount or value of the benefits that may be provided under insurance policies entered into under a specific class or sub-class of business; limiting the amount of the premiums that the insurer may contract to receive, during a specific period, in respect of all or specific insurance policies entered into by the insurer during that period; requiring that the provisions of the Memorandum of Incorporation of an insurer that is a company or the equivalent constitution, deed or founding instrument of an insurer that is not a company— (i) must be suitable to enable it to carry on insurance business; and (ii) may not be amended without the approval of the Prudential Authority; or that are reasonably necessary to ensure that the insurance business is conducted in a financially sound manner or in accordance with this Act. (9) The Prudential Authority may, in the case of a controlling company, impose licensing conditions necessary to achieve the objective of this Act, which may include conditions— (a) requiring the controlling company of the insurance group to limit its business to the acquiring, holding and managing of another company or companies; requiring that the provisions of the Memorandum of Incorporation of a controlling company that is a company or the equivalent constitution, deed or founding instrument of a controlling company that is not a company— (i) must be suitable to enable it to be the controlling company of an (b) insurance group; and (c) (ii) may not be amended without the approval of the Prudential Authority; or the insurance business is that are reasonably necessary to ensure that conducted in a financially sound manner or in accordance with this Act. 10 15 20 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 45 Versekeringswet, 2017 Wet No. 18 van 2017 45 (b) moet die versekeringsbesigheid waarvoor die versekeraar gelisensieer is, dryf ooreenkomstig die vereistes wat ingevolge hierdie Wet of enige ander Parlementswet ten opsigte van elkeen van die klasse of subklasse voorgeskryf kan word. (5) ’n Beperkte versekeraar mag nie derdepartyrisiko’s verseker nie. (6) (a) Slegs ’n selversekeraar mag versekeringsbesigheid deur selstrukture dryf. (b) ’n Selversekeraar mag nie— (i) eerstepartyrisiko’s en derdepartyrisiko’s in dieselfde selstruktuur verseker nie; (ii) die risiko’s wat met die versekeringsverbintenisse van ’n ander versekeraar gepaard gaan sonder die goedkeuring van die Voorsorgowerheid, verseker nie. (7) (a) ’n Herversekeraar wat gelisensieer is om lewens- asook nielewens- versekeringsbesigheid te dryf, kan nie gelisensieer word om herversekeringsbesigheid ten opsigte van klasse uiteengesit in Tabel 1 van Bylae 2, te dryf nie. (b) ’n Herversekeraar gelisensieer om lewensverskerings- of nielewensversekerings- besigheid of albei te dryf, kan gelisensieer word om versekeringsbesigheid ten opsigte van klas 10 in Tabel 2 van Bylae 2 uiteengesit, regstreeks by ’n mediese skema geregistreer kragtens die Wet op Mediese Skemas, 1998 (Wet No. 131 van 1998), te dryf. (8) Die Voorsorgowerheid mag, in die geval van ’n versekeraar, lisensiërings- voorwaardes bykomend tot subartikels (1) tot (7) oplê, wat nodig is om die oogmerke van hierdie Wet te bereik, met inbegrip van voorwaardes— 5 10 15 20 (a) wat verband hou met die versekeringsbesigheidsreëlings, met inbegrip van, maar nie beperk nie tot, die uitbestedingsreëlings of selstrukture wat die versekeraar kan aangaan; (b) aangaande die persone met wie die versekeraar versekeringsbesigheid mag 25 doen; aangaande herversekeringsreëlings; (c) (d) wat die bestek en grootte van die versekeringsbesigheid wat gedryf kan word beperk tot dit wat in die aansoek om ’n lisensie in artikel 23 van hierdie Wet bedoel, uiteengesit is; (e) wat verbied dat bepaalde bedinge of voorwaardes ingesluit word in versekeringspolisse wat kragtens ’n spesifieke klas of subklas van besigheid afgesluit word; (f) wat die bedrag of waarde van die voordele wat onder versekeringspolisse wat onder ’n spesifieke klas of subklas van besigheid afgesluit word, voorsien kan word; (g) wat die bedrag van die premiums beperk wat die versekeraar mag kontrakteer om te ontvang, binne ’n spesifieke tydperk, ten opsigte van alle of bepaalde versekeringspolisse wat die versekeraar in daardie tydperk afsluit; (h) wat vereis dat die bepalings van die Akte van Oprigting van ’n versekeraar wat ’n maatskappy is of die gelykstaande grondwet, akte of stigtingsakte van ’n versekeraar wat nie ’n maatskappy is nie— (i) moet geskik wees om die versekeraar in staat te stel om versekerings- 30 35 40 besigheid te dryf; en (ii) nie sonder die toestemming van die Voorsorgowerheid gewysig kan 45 word nie; of (i) wat redelikerwys nodig is om te verseker dat die versekeringsbesigheid op ’n finansieel gesonde wyse ooreenkomstig hierdie Wet gedryf word. (9) Die Voorsorgowerheid kan, in die geval van ’n beheermaatskappy, lisensiërings- voorwaardes oplê wat nodig is om die oogmerke van hierdie Wet te bereik, met inbegrip van voorwaardes — (a) wat vereis dat die beheermaatskappy van die versekeringsgroep se besigheid beperk bly die verkryging, hou en bestuur van ’n ander maatskappy of maatskappye; (b) wat vereis dat die bepalings van die Akte van Oprigting van ’n beheer- maatskappy wat ’n maatskappy is of die gelykstaande grondwet, akte of stigtingsakte van ’n beheermaatskappy wat nie ’n maatskappy is nie— (i) geskik moet wees om die beheermaatskappy in staat te stel om die 50 55 beheermaatskappy van ’n versekeringsgroep te wees; en (ii) nie sonder die goedkeuring van die Voorsorgowerheid gewysig kan word 60 nie; of (c) wat redelik nodig is om te verseker dat die versekeringsbesigheid op ’n finansieel gesonde wyse of ooreenkomstig hierdie Wet gedryf word. This gazette is also available free online at www.gpwonline.co.za
Part
Part 1
- 30 Verify source ↗
Governance framework
AI-assisted research summary: Section 30 is titled “Governance framework.”
30. Governance framework 31. - 33 Verify source ↗
Audit committee
AI-assisted research summary: Section heading for an audit committee and related governance requirements.
33. Audit committee Part 2 5 Additional governance requirements for representative offices of branches of foreign reinsurers and Lloyd’s 10 34. Representative office CHAPTER 6 FINANCIAL SOUNDNESS Part 1 Insurers and insurance groups - 35 Verify source ↗
Application of Part
AI-assisted research summary: Section 35 is titled “Application of Part.”
35. Application of Part - 36 Verify source ↗
Maintenance of financially sound condition
AI-assisted research summary: Section 36 is titled “Maintenance of financially sound condition.”
36. Maintenance of financially sound condition 37. 38. 39. Capital add-on Capital and securities Failure to maintain financially sound condition Part 2 Security requirements for branches of foreign reinsurers and Lloyd’s 40. 41. 42. Security to be held in trust Trust and trustees Failure to provide or maintain security CHAPTER 7 REPORTING AND PUBLIC DISCLOSURES Information concerning beneficial interests Information for supervisory purposes 43. 44. - 53 Verify source ↗
Appointment of statutory manager
AI-assisted research summary: Section 53 is titled “Appointment of statutory manager.”
53. Appointment of statutory manager - 54 Verify source ↗
Appointment of curator
AI-assisted research summary: Section 54 is titled “Appointment of curator” and sits within the parts on curatorship and business rescue.
54. Appointment of curator Part 2 Curatorship Part 3 Business rescue - 61 Verify source ↗
Notifications
AI-assisted research summary: This section is headed “Notifications” and refers to the Prudential Authority’s powers and functions and publication.
61. Notifications Part 2 Powers and functions of Prudential Authority Prudential Standards Publication by Prudential Authority - 4 Verify source ↗
An insurer and a controlling company must, at all times—
AI-assisted research summary: Insurers and controlling companies must always act with integrity, skill, care, diligence, prudence, responsibility, effectiveness, and openness with the Prudential Authority. No person may conduct insurance business in the Republic unless licensed under the Act.
4. An insurer and a controlling company must, at all times— (a) conduct its business with integrity; (b) conduct its business with due skill, care and diligence; (c) (d) organise and control its affairs responsibly and effectively; and (e) deal with the Prudential Authority in an open and cooperative way. act in a prudent manner; Part 2 Insurance business and other business of insurers Insurance business and limitations on other business 5. (1) No person may conduct insurance business in the Republic unless that person is licensed under this Act. 15 20 25 30 35 40 45 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 25 Versekeringswet, 2017 Wet No. 18 van 2017 25 (6) (a) Die Maatskappywet is van toepassing op enige versekeraar (behalwe ’n tak van ’n buitelandse herversekeraar, Lloyd’s-onderskrywer of Lloyd’s) of ’n beheer- tot die mate wat die maatskappy wat nie ’n openbare maatskappy is nie, Maatskappywet— (i) daarop van toepassing kan wees; en (ii) op ’n openbare maatskappy van toepassing is. (b) Paragraaf (a) moet nie uitgelê word dat dit vereis dat ’n versekeraar of ’n beheermaatskappy wat nie ’n openbare maatskappy is nie, inligting aan die Kommissie of Kommissaris (soos in die Maatskappywet omskryf) voorlê wat ’n openbare maatskappy kragtens die Maatskappywet aan die Kommissie of Kommissaris moet voorlê nie. (7) Indien inligting of ’n dokument ingevolge hierdie Wet publiek beskikbaar moet wees, gepubliseer, openbaar gemaak, verstrek of verskaf moet word, is dit voldoende indien— (a) ’n elektroniese oorspronklike of ’n reproduksie daarvan gepubliseer, openbaar gemaak, verstrek of verskaf word deur elektroniese kommunikasie op so ’n wyse en vorm dat die inligting of dokument gerieflik binne ’n redelike tyd en teen ’n redelike koste deur die ontvanger gedruk kan word; of ’n kennisgewing van die beskikbaarheid van daardie inligting of dokument, wat sy inhoud opsom en aan enige voorgeskrewe vereistes voldoen, aan elke bedoelde ontvanger daarvan gelewer word, saam met instruksies vir die ontvangs van die volledige inligting of dokument. (b) Oogmerk van Wet - 35 Verify source ↗
This Part does not apply to branches of foreign reinsurers, Lloyd’s underwriters or
AI-assisted research summary: This Part does not apply to branches of foreign reinsurers, Lloyd’s underwriters, or Lloyd’s.
35. This Part does not apply to branches of foreign reinsurers, Lloyd’s underwriters or Lloyd’s. Financially sound condition Maintenance of financially sound condition 36. (1) An insurer must at all times maintain its business in a financially sound condition, by holding eligible own funds that are at least equal to the minimum capital requirement or solvency capital requirement, as prescribed, whichever is the greater. (2) A controlling company in respect of an insurance group must at all times maintain the insurance group in a financially sound condition, by holding group eligible own funds that are at least equal to the group solvency capital requirement as prescribed. (3) If the Prudential Authority reasonably believes that any value calculated by an insurer or a controlling company in respect of its financial soundness does not reflect a reasonable value for the purposes of this Act, the Prudential Authority may direct the insurer or controlling company— (a) (b) to appoint, at the cost of the insurer or controlling company, a suitably qualified person to be approved by the Prudential Authority to determine a reasonable value, which value so determined will be deemed to be the value; or to calculate the value in a manner determined by the Prudential Authority, which value so calculated will be deemed to be the value. (4) If the Prudential Authority reasonably believes that any principle, method, assumption, technique, adjustment, calibration, parameter, calculation or model of an 10 15 20 25 30 35 40 45 This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 59 59 Deel 2 Bykomende beheervereistes vir verteenwoordigende kantore van takke van buitelandse herversekeraars en Lloyd’s Verteenwoordigende kantoor 34. (1) ’n Buitelandse herversekeraar wat gelisensieer is om herversekerings- besigheid te verrig of Lloyd’s moet ’n verteenwoordigende kantoor in die Republiek instel. 5 (2) (a) ’n Buitelandse herversekeraar of Lloyd’s moet ’n verteenwoordiger en adjunkverteenwoordiger aanstel en te alle tye hê. (b) ’n Verteenwoordiger en ’n adjunkverteenwoordiger moet natuurlike persone wees wat permanent in die Republiek woonagtig is terwyl hy of sy ’n verteenwoordiger en ’n adjunkverteenwoordiger bly. 10 (3) Die verteenwoordiger moet— (a) voldoening verseker— (i) aan Suid-Afrikaanse wetgewing, met inbegrip van hierdie Wet en enige 15 ander wetgewing wat die gedrag van versekeraars rig; en (ii) deur die trustee of trustees aan Suid-Afrikaanse wetgewing, met inbegrip van hierdie Wet en die trustakte in artikel 41 bedoel; en (b) die Voorsorgowerheid skriftelik inlig van enige nienakoming ingevolge paragraaf (a). (4) Die Voorsorgowerheid kan vereistes oor die rolle, verantwoordelikhede en werksaamhede van ’n verteenwoordiger en adjunkverteenwoordiger bykomend tot dié in subartikel (3) vermeld, voorskryf. HOOFSTUK 6 FINANSIËLE GESONDHEID Deel 1 Versekeraars en versekeringsgroepe Toepassing van Deel - 35 Verify source ↗
Hierdie Deel
AI-assisted research summary: This provision requires insurers and certain holding companies to keep financially sound positions by holding enough qualifying funds, and gives the Prudential Authority power to direct how disputed values are determined.
35. Hierdie Deel is nie op takke van buitelandse herversekeraars, Lloyd’s- onderskrywers of Lloyd’s van toepassing nie. Finansieel gesonde toestand Onderhoud van finansieel gesonde toestand 36. (1) ’n Versekeraar moet te alle tye sy sake in ’n finansieel gesonde toestand hou, deur kwalifiserende eie fondse te hou wat ten minste gelyk is aan die minimum kapitale vereiste of solvensiekapitaalvereiste, soos voorgeskryf, wat ook al die grootste is. (2) ’n Beheermaatskappy ten opsigte van ’n versekeringsgroep moet te alle tye die versekeringsgroep in ’n finansieel gesonde toestand onderhou, deur groep- kwalifiserendefondse te hou wat ten minste gelyk is aan die vereiste vir groepsolvensiekapitaal soos voorgeskryf. (3) Indien die Voorsorgowerheid redelikerwys van mening is dat enige waarde deur ’n versekeraar of beheermaatskappy ten opsigte van sy finansiële gesondheid bereken, nie ’n redelike waarde by die toepassing van hierdie Wet weerspieël nie, kan die Voorsorgowerheid die versekeraar of beheermaatskappy opdrag gee om— (a) op onkoste van die versekeraar of beheermaatskappy, ’n gepas gekwalifiseerde persoon aan te stel wat deur die Voorsorgowerheid goedgekeur moet word, om ’n redelike waarde te bepaal, en die waarde aldus bepaal word geag die waarde te wees; of (b) om die waarde te bereken op ’n wyse deur die Voorsorgowerheid bepaal, welke waarde aldus bereken geag sal word die waarde te wees. 20 25 30 35 40 45 (4) Indien die Voorsorgowerheid redelikerwys van mening is dat enige beginsel, metode, aanname, tegniek, aanpassing, kalibrasie, parameter, berekening of model van 50 This gazette is also available free online at www.gpwonline.co.za - 60 Verify source ↗
No. 41388
AI-assisted research summary: The Prudential Authority may direct insurers or controlling companies to get independent reviews and to change financial soundness methods or models, and may prescribe related rules.
60 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 60 insurer or controlling company used or applied in respect of its financial soundness requires further investigation, the Prudential Authority may direct the insurer or controlling company to secure an independent review thereof, at the cost of the insurer or controlling company, by a person to be approved by the Prudential Authority. (5) The Prudential Authority may direct an insurer, a controlling company, or the board of directors or other key persons of the insurer or controlling company, to change, amend, strengthen or effect improvements to any principle, method, assumption, technique, adjustment, calibration, parameter, calculation or model of an insurer or controlling company used or applied in respect of its financial soundness. (6) The Prudential Authority may prescribe— (a) (b) in respect of the calculation of financial soundness, the principles, methods and assumptions that must be used in the calculation, and any approvals required in respect of such principles, methods and assumptions; in respect of assets— (i) the principles, methods and assumptions that must be used in the valuation of assets; limitations relating to the— (aa) type and kind of assets that may be taken into account for (ii) 5 10 15 calculating financial soundness; (bb) maximum and minimum percentages of certain assets that may be 20 taken into account for calculating financial soundness; (cc) location of assets that may be taken into account for calculating financial soundness; and (dd) use of assets; and (c) (iii) custody arrangements in respect of assets; in respect of technical provisions, the— (i) methods and assumptions that must be used in the valuation and (d) (e) (f) (g) (ii) calculation of technical provisions; simplified methods and techniques to calculate technical provisions, to ensure that actuarial and statistical methods are proportionate to the nature, scale and complexity of the risks supported; in respect of liabilities other than technical provisions, the methods and assumptions that must be used in the valuation of those liabilities; in respect of eligible own funds— (i) (ii) the tiering and classification of basic own funds and ancillary own funds; the quantitative limits in respect of each tier referred to in subparagraph (i); interests and transactions that must be disregarded; and the criteria that ancillary own funds must comply with; (iii) adjustments to own fund items; (iv) (v) in respect of the minimum capital requirement— (i) (ii) the calculation and calibration of the minimum capital requirement; the frequency at and the circumstances under which the minimum capital requirement must be calculated or estimated; in respect of the solvency capital requirement or group solvency require- ment— (i) the frequency at and the circumstances under which the solvency capital requirement or the group solvency requirement must be calculated or estimated; the standard formula for calculating the solvency capital requirement or the group solvency capital requirement, and— (aa) the methods, assumptions, and standard parameters to be used in respect of the standard formula or any module or sub-module thereof; (ii) (bb) the— (A) subset of standard parameters that, subject to approval by the Prudential Authority, may be replaced by insurer-specific or insurance group-specific parameters; 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 61 Versekeringswet, 2017 Wet No. 18 van 2017 61 ’n versekeraar of beheermaatskappy gebruik of toegepas ten opsigte van sy finansiële gesondheid verdere ondersoek vereis, kan die Voorsorgowerheid die versekeraar of beheermaatskappy opdrag gee om ’n onafhanklike oorsig daarvan te kry, vir die onkoste van die versekeraar of beheermaatskappy, deur ’n persoon wat deur die Voorsorg- owerheid goedgekeur is. (5) Die Voorsorgowerheid kan ’n versekeraar, ’n beheermaatskappy, of die direksie of ander sleutelpersone van die versekeraar of beheermaatskappy, opdrag gee om enige beginsel, metode, aanname, tegniek, aansuiwering, kalibrasie, parameter, berekening of model van ’n versekeraar of beheermaatskappy te verander wat ten opsigte van die versekeraar se beheermaatskappy se finansiële gesondheid gebruik is. (6) Die Voorsorgowerheid kan voorskryf— (a) (b) ten opsigte van die berekening van finansiële gesondheid, die beginsels, metodes en aannames wat in die berekening gebruik moet word, en enige goedkeurings ten opsigte van sodanige beginsels, metodes en aannames vereis; ten opsigte van bates— (i) die beginsels, metodes en aannames wat in die waardering van bates 5 10 15 gebruik moet word; (ii) beperkings aangaande die— (aa) tipe en soort bates wat vir die berekening van finansiële gesondheid 20 in ag geneem kan word; (bb) maksimum en minimum persentasies van sekere bates wat vir die berekening van finansiële gesondheid in ag geneem kan word; (cc) ligging van bates wat vir die berekening van finansiële gesondheid in berekening gebring kan word; en (dd) gebruik van bates; en (c) (iii) bewaringsreëlings ten opsigte van bates; ten opsigte van tegniese bepalings, die— (i) metodes en aannames wat in die waardering en berekening van tegniese (d) (e) (f) (g) bepalings gebruik moet word; (ii) vereenvoudigde metodes en tegnieke om tegniese bepalings te bereken, om te verseker dat aktuariële en statistiese metodes proporsioneel is tot die aard, skaal en kompleksiteit van die ondersteunde risiko’s; ten opsigte van verpligtinge behalwe tegniese bepalings, die metodes en aannames wat in die waardering van daardie verpligtinge gebruik moet word; ten opsigte van kwalifiserende eie fondse— (i) die vlakbepaling en klassifikasie van basiese eie fondse en aanvullende eie fondse; (ii) die kwantitatiewe beperkings ten opsigte van elke vlak in sub- paragraaf (i) bedoel; (iii) aanpassings aan eie fondsitems; (iv) belange en transaksies wat verontagsaam moet word; en (v) die maatstawwe waaraan aanvullende eie fondse moet voldoen; ten opsigte van die minimumkapitaalvereiste— (i) die berekening en kalibrering van die minimumkapitaalvereiste; (ii) hoe gereeld en onder watter omstandighede die minimumkapitaal- vereiste bereken of geskat moet word; ten opsigte van die solvensiekapitaalvereiste of groepsolvensievereiste— (i) die gereeldheid waarmee en die omstandighede waaronder die solvensiekapitaalvereiste of die groepsolvensievereiste bereken of geskat moet word; (ii) die standaard formule vir die berekening van die solvensiekapitaal- vereiste of die groepsolvensiekapitaalvereiste, en— (aa) die metodes, aannames en standaard parameters wat gebruik moet word ten opsigte van die standaard formule of enige module of submodule daarvan; (bb) die— (A) subgroep van standaard parameters wat, onderhewig aan goedkeuring deur die Voorsorgowerheid, deur versekeraar- spesifieke of versekeringsgroepspesifieke parameters vervang kan word; 25 30 35 40 45 50 55 60 This gazette is also available free online at www.gpwonline.co.za - 62 Verify source ↗
No. 41388
AI-assisted research summary: The Prudential Authority may require a capital add-on for an insurer or insurance group when risk or governance deviates significantly.
62 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 62 (B) standardised methods to be used by an insurer or a controlling company to calculate the insurer-specific or insurance group- specific parameters; and (C) criteria in respect of governance and the completeness, accuracy, and appropriateness of the data used for insurer- specific or insurance group-specific parameters; the methods and adjustments relating to ring-fenced funds that must be used to reflect the reduced scope for risk diversification in respect of those funds; and (cc) (dd) any simplified calculations for specific sub-modules and risk modules, and the criteria that must be met for an insurer or a controlling company to be able to use each of those simplifications; requirements for the use of a full or partial internal model to calculate the solvency capital requirement, group solvency capital requirement or a part thereof, including the— (aa) governance, use test, statistical quality, calibration, model valida- tion, modeling and documentation standards that apply to those full or partial internal models; (bb) process for applying for the Prudential Authority’s approval of a (cc) full or a partial internal model; and responsibilities of the insurer, controlling company, board of directors and senior managers in respect of a full or a partial internal model; (iii) in respect of reinsurance business or reinsurance arrangements— (i) requirements for the recognition and treatment of reinsurance for financial soundness; limitations on the extent of the reinsurance business that an insurer or a reinsurer may place with another insurer or reinsurer individually or in aggregate; the principles and requirements with which any reinsurance arrangement must comply; the matters that must be included or addressed, or may not be included, in a reinsurance arrangement; and (ii) (iii) (iv) investments; the use of financial instruments, including derivatives; requirements in respect of— (i) (ii) (iii) off-balance sheet transactions; intra-group transactions; (iv) transactions that may increase, encumber or reduce assets or liabilities; (v) or (vi) financial or other exposures to entities that are part of an insurance group. (h) (i) Capital add-on 37. (1) The Prudential Authority may direct a capital add-on for an insurer or an insurance group, if the Prudential Authority reasonably believes that— (a) (b) the risk profile of the insurer or the insurance group deviates significantly from the assumptions underlying the solvency capital requirement calculation or the group solvency capital requirement calculation; or the governance framework of an insurer or a controlling company deviates significantly from the requirements of this Act. (2) (a) In the circumstances referred to in subsection (1)(a), the capital add-on that is imposed by the Prudential Authority must be such that the solvency capital requirement or group solvency capital requirement after the capital add-on is in line with the underlying prescribed assumptions of the solvency capital requirement or group solvency capital requirement. (b) In the circumstances referred to in subsection (1)(b), the capital add-on that is imposed by the Prudential Authority must reflect the significance of the deviation of the governance framework from the requirements of the Act. 5 10 15 20 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 63 Versekeringswet, 2017 Wet No. 18 van 2017 63 (B) gestandaardiseerde metodes wat deur ’n versekeraar of ’n beheermaatskappy gebruik moet word om die versekeraar- te spesifieke of versekeringsgroepspesifieke parameters bereken; en (C) maatstawwe ten opsigte van beheer en die volledigheid, akkuraatheid en gepastheid van die data gebruik vir versekeraarspesifieke of versekeringspesifieke parameters; (cc) die metodes en aanpassings wat verband hou met die fondse wat opsy gesit is wat gebruik moet word om die verminderde bestek vir risiko-diversifisering ten opsigte van daardie fondse te weerspieël; en (dd) enige vereenvoudigde berekenings vir bepaalde submodules en risiko modules, en die maatstawwe waaraan voldoen moet word sodat ’n versekeraar of ’n beheermaatskappy elk van daardie vereenvoudigings kan gebruik; (iii) vereistes vir die gebruik van ’n volle of gedeeltelike interne model om die solvensiekapitaalvereiste, groepsolvensievereiste of ’n gedeelte daarvan te bereken, met inbegrip van die— (aa) beheer, gebruiktoets, statistiese gehalte, kalibrering, model validasie, modellering en dokumentasiestandaarde wat van toepassing is op daardie volle of gedeeltelike interne modelle; (bb) proses vir aansoek om die Voorsorgowerheid se goedkeuring van ’n volle of gedeeltelike interne model; en (cc) verantwoordelikhede van die versekeraar, beheermaatskappy, direksie en senior bestuurders ten opsigte van ’n volle of ’n gedeeltelike interne model; (h) ten opsigte van herversekeringsbesigheid of herversekeringsreëlings— (i) vereistes vir die erkenning en behandeling van herversekering en behandeling van herversekering vir finansiële gesondheid; (ii) beperkings op die omvang van die herversekeringsbesigheid wat ’n versekeraar of ’n herversekeraar individueel of in totaal by ’n ander versekeraar of herversekeraar kan plaas; (iii) die beginsels en vereistes waaraan enige herversekeringsreëling moet voldoen; 5 10 15 20 25 30 (iv) die aangeleenthede wat in ’n herversekeringsreëling ingesluit of hanteer 35 moet word, of nie ingesluit kan word nie; en (i) vereistes ten opsigte van— (i) beleggings; (ii) die gebruik van finansiële instrumente, met inbegrip van afgeleides; (iii) buitebalansstaattransaksies; intragroeptransaksies; (iv) transaksies wat bates of verpligtinge kan vergroot, beswaar of (v) verminder; of (vi) finansiële of ander blootstellings aan entiteite wat deel van ’n versekeringsgroep is. Kapitaaltoevoeging 37. (1) Die Voorsorgowerheid kan ’n kapitaaltoevoeging vir ’n versekeraar of ’n versekeringsgroep gelas, indien die Voorsorgowerheid redelikerwys van mening is dat— (a) die risikoprofiel van die versekeraar of die versekeringsgroep beduidend afwyk van die aannames wat onderliggend is aan die solvensiekapitaal- vereisteberekening of die groepsolvensiekapitaalvereisteberekening; of (b) die beheerraamwerk van ’n versekeraar of ’n beheermaatskappy beduidend van die vereistes van hierdie Wet afwyk. (2) (a) In die omstandighede in subartikel (1)(a) bedoel, moet die kapitaaltoevoeging deur die Voorsorgowerheid opgelê van so ’n aard wees dat die solvensiekapitaalvereiste of groepsolvensiekapitaalvereiste na die kapitaaltoevoeging in lyn is met die onderliggende voorgeskrewe aannames van die solvensiekapitaalvereiste of groep- solvensiekapitaalvereiste. (b) Onder die omstandighede in subartikel (1)(b) beoog, moet die kapitaaltoevoeging wat deur die Voorsorgowerheid opgelê word, die belang van die beheerraamwerk se afwyking van die vereistes van die Wet, weerspieël. 40 45 50 55 60 This gazette is also available free online at www.gpwonline.co.za - 80 Verify source ↗
No. 41388
AI-assisted research summary: A court or the Prudential Authority may appoint a curator for an insurer or controlling company, and the curator must take control and manage the business under regulatory oversight.
80 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 80 Part 2 Curatorship Appointment of curator 54. (1) Despite any other law— (a) (b) the court may, on application by the Prudential Authority; or the Prudential Authority may by agreement with an insurer or controlling company and without the intervention of the court, appoint a curator in terms of section 5 of the Financial Institutions (Protection of Funds) Act in respect of any insurer or controlling company. (2) In addition to any powers or functions that may be afforded by a court to a curator to section 5 of the Financial on appointment under subsection (1), but subject Institutions (Protection of Funds) Act, a curator on appointment— (a) is vested with the power to take and implement any decision in respect of the insurer or the controlling company that would have required an ordinary resolution or a special resolution of shareholders or members of the insurer or controlling company in terms of the provisions of the— (i) Companies Act; (ii) Co-operatives Act; (iii) Memorandum of Incorporation or the equivalent constitution, deed or (iv) founding instrument of an insurer that is not a company; or rules of any securities exchange registered under the Financial Markets Act, 2012 (Act No. 19 of 2012), on which any securities of the insurer or controlling company are listed; (b) is vested with all executive powers which would ordinarily be vested in, and exercised by, the key persons (other than an auditor or the head of a control function) of the insurer or controlling company, whether by law or in terms of its Memorandum of Incorporation or the equivalent constitution, deed or founding instrument of an insurer that is not a company, and the present key persons shall be divested of all such powers in relation to the business; (c) must take immediate control of, manage and investigate the business and operations of and concerning the insurer or controlling company, together with all assets, interests and liabilities relating to such business, subject to the control of the Prudential Authority in accordance with the provisions of section 5(6) of the Financial Institutions (Protection of Funds) Act, and with all such rights and obligations as may be pertaining thereto; (d) must at all times give consideration to the best interests of the policyholders of the insurer or, in the case of a controlling company, the best interests of policyholders of the insurers that are part of the insurance group; (e) must exercise the powers vested in the curator with a view to conserving the business and, with the prior approval of the Prudential Authority, may— (i) alienate or dispose of any of the property or transfer any of the liabilities or insurance business of the insurer or controlling company; (ii) cancel any guarantee issued by the insurer, other than a guarantee that constitutes an insurance obligation under a life insurance policy, or controlling company prior to the latter being placed under curatorship, excluding such guarantee which the insurer or controlling company is required to make good within a period of 30 days as from the date of the appointment of the curator; and raise funding on behalf of the insurer or controlling company, despite any contractual obligations of the insurer or controlling company, to provide security over the assets of the insurer or controlling company in respect of such funding; (iii) in the case of an insurer, must continue to conduct the insurance business for which the insurer is licensed, but may not enter into new insurance policies without the approval of the Prudential Authority; (f) 5 10 15 20 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 81 81 Deel 2 Kuratorskap Aanstelling van kurator 54. (1) Ondanks enige ander wet— (a) kan die hof, by aansoek deur die Voorsorgowerheid; of (b) kan die Voorsorgowerheid by ooreenkoms met ’n versekeraar of beheer- 5 maatskappy en sonder die ingryping van die hof, ’n kurator ingevolge artikel 5 van die Wet op Finansiële Instellings (Beskerming van Fondse), ten opsigte van enige versekeraar of beheermaatskappy aanstel. (2) Bykomend tot enige bevoegdhede of werksaamhede wat deur ’n hof aan ’n kurator toegestaan kan word by aanstelling kragtens subartikel (1), maar onderhewig aan artikel 5 van die Wet op Finansiële Instellings (Beskerming van Fondse), is ’n kurator by aanstelling— (a) beklee met die bevoegdheid om enige besluit ten opsigte van die versekeraar of die beheermaatskappy te neem of in werking te stel wat ’n gewone besluit of ’n spesiale besluit van aandeelhouers of lede van die versekeraar of beheermaatskappy sou vereis het ingevolge die bepalings van— (i) die Maatskappywet; (ii) die ‘‘Co-operatives Act’’; (iii) die Akte van Oprigting of die gelykwaardige grondwet, akte of stigtingsakte van ’n versekeraar wat nie ’n maatskappy is nie; of (iv) die reëls van enige effektebeurs geregistreer kragtens die ‘Financial Markets Act’, 2012 (Wet No. 19 van 2012), waarop enige effekte van die versekeraar of beheermaatskappy genoteer is; (b) beklee met alle uitvoerende bevoegdhede wat normaalweg gevestig sou wees in, en uitgeoefen word deur, die sleutelpersone (behalwe ’n ouditeur of die hoof van ’n beheerfunksie) van die versekeraar of beheermaatskappy, hetsy by wet of ingevolge sy Akte van Oprigting of die gelykwaardige grondwet, akte of stigtingsakte van ’n versekeraar wat nie ’n maatskappy is nie en die huidige sleutelpersone word ontneem van alle sodanige bevoegdhede in verband met die besigheid; (c) moet onmiddellik beheer oor die besigheid en bedryf van en aangaande die versekeraar of beheermaatskappy neem en dit bestuur en ondersoek, saam met alle bates, belange en verpligtinge aangaande sodanige besigheid, onderhewig aan die beheer van die Voorsorgowerheid ooreenkomstig die bepalings van artikel 5(6) van die Wet op Finansiële Instellings (Beskerming van Fondse) en met alle sodanige regte en verbintenisse wat daarmee kan verband hou; (d) moet te alle tye die beste belange van die polishouers van die versekeraar of, in die geval van ’n beheermaatskappy, die beste belange van die polishouers van die versekeraars wat deel van die versekeringsgroep is, oorweeg; (e) moet die magte in die kurator gevestig uitoefen met die oog op die behoud van die besigheid en, met die vooraf goedkeuring van die Voorsorgowerheid, kan— (i) enige van die versekeraar of beheermaatskappy se eiendom vervreem of daaroor beskik of enige van die verpligtinge of versekeringsbesigheid van die versekeraar of beheermaatskappy oordra; (iii) (ii) enige waarborg deur die versekeraar uitgereik, behalwe ’n waarborg wat ’n versekeringsverbintenis kragtens ’n lewensversekeringspolis uitmaak, kanselleer voordat laasgenoemde onder kuratele geplaas word, behalwe sodanige waarborg wat die versekeraar of beheermaatskappy moet goedmaak binne ’n tydperk van 30 dae met ingang van die datum van die aanstelling van die kurator; en fondse namens die versekeraar of beheermaatskappy insamel, ondanks enige kontraktuele verbintenisse van die versekeraar of beheer- maatskappy, om waarborg oor die bates van die versekeraar of beheermaatskappy ten opsigte van sodanige finansiering te voorsien; in die geval van ’n versekeraar, moet voortgaan om die versekeringsbesigheid te dryf waarvoor die versekeraar gelisensieer is, maar kan nie sonder die Voorsorgowerheid se goedkeuring nuwe versekeringspolisse afsluit nie; (f) 10 15 20 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za - 92 Verify source ↗
No. 41388
AI-assisted research summary: This source text only shows a Gazette/header reference for Section 92 and does not state any substantive rule.
92 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 Notifications 92 - 61 Verify source ↗
Any notification by a person under this Act must be—
AI-assisted research summary: A person making a notification under this Act must use the form and manner set by the Prudential Authority and include the information it determines.
61. Any notification by a person under this Act must be— (a) submitted in the form and manner determined by the Prudential Authority; and (b) accompanied by the information determined by the Prudential Authority. 5 Part 2 Powers and functions of Prudential Authority General powers, functions and duties of Prudential Authority 62. (1) The Prudential Authority, in addition to other powers or functions conferred on the Prudential Authority by or in terms of any other provision of this Act or any other Act of Parliament— 10 (a) must take steps the Prudential Authority considers necessary to implement a regulatory framework that supports the objectives of the Act, including supervising and enforcing compliance with this Act; (b) must take steps the Prudential Authority considers necessary to protect 15 policyholders in their dealings with insurers; (c) must determine the form, manner and period (if a period is not specified in this Act) in which any documentation, information or report must be published, disclosed, provided or submitted, that an insurer or a controlling company is required to publish, disclose, provide or submit under this Act; and (d) may, at regular intervals, determine or amend any rate, parameter or percentage referred to or specified in this Act or a Prudential Standard relating to financial soundness by publishing a notice on the official website. (2) Any approval, determination, designation, decision or exemption by the Prudential Authority is valid only if it is in writing. (3) (a) The Promotion of Administrative Justice Act, 2000 (Act No. 3 of 2000), applies to any approval, determination, designation, decision, exemption or other administrative action taken by the Prudential Authority in terms of this Act. (b) Without detracting from section 3(3) and (4) of the Promotion of Administrative Justice Act, 2000, and despite section 3(5) of that Act, the Prudential Authority must before acting under section 12, also give the juristic persons that are part of that insurance group that are affected notice of the proposed designation and a statement of the purpose of and the reasons for the proposed action. (4) The Prudential Authority when taking administrative actions, must, in addition to 20 25 30 specific matters for consideration specified elsewhere in this Act, have regard to— 35 (a) (b) the objective of this Act; the nature, scale and complexity of the business of an insurer or an insurance group; (c) developmental, financial inclusion, and transformation objectives; (d) any submissions made; and (e) in the case of an insurance group also— (i) the financial soundness of an insurer that is part of the insurance group; (ii) how the different types of business of the insurance group are conducted; the risks of the insurance group and each juristic person that is part of that (iii) insurance group; and the manner in which the governance framework is organised and conducted for the insurance group and each juristic person that is part of that insurance group. (iv) 40 45 This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 93 Kennisgewings 93 61. ’n Kennisgewing kragtens hierdie Wet deur iemand gegee moet— (a) in die vorm en op die wyse deur die Voorsorgowerheid bepaal, voorgelê word; en (b) vergesel gaan van die inligting deur die Voorsorgowerheid bepaal. 5 Deel 2 Bevoegdhede en werksaamhede van Voorsorgowerheid Algemene bevoegdhede, werksaamhede en pligte van Voorsorgowerheid 62. (1) Die Voorsorgowerheid, bo en behalwe ander bevoegdhede of werksaamhede ingevolge enige ander bepaling van hierdie Wet of enige ander Parlementswet aan die Voorsorgowerheid opgelê— 10 (a) moet stappe doen wat die Voorsorgowerheid nodig ag om ’n regulerings- raamwerk wat die oogmerke van die Wet ondersteun, in te stel, met inbegrip van toesig oor en afdwinging van voldoening aan hierdie Wet; (b) moet stappe doen wat die Voorsorgowerheid nodig ag om polishouers in hul 15 transaksies met versekeraars te beskerm; (c) moet die vorm, wyse en tydperk (indien ’n tydperk nie in hierdie Wet gespesifiseer word nie) bepaal waarbinne enige dokumente, inligting of verslag, wat ’n versekeraar of beheermaatskappy kragtens hierdie Wet moet publiseer, bekend maak, voorsien of voorlê, gepubliseer, bekend gemaak, voorsien of voorgelê moet word; en (d) kan, met gereelde tussenposes, enige koers, parameter of persentasie in hierdie Wet of ’n Voorsorgstandaard bedoel of gespesifiseer aangaande finansiële gesondheid vasstel of wysig deur ’n kennisgewing op die amptelike webwerf te publiseer. (2) Enige goedkeuring, bepaling, aanwysing, besluit of vrywaring deur die Voorsorgowerheid is slegs geldig indien dit skriftelik is. (3) (a) Die ‘‘Promotion of Administrative Justice Act’’, 2000 (Wet No. 3 van 2000), is van toepassing op enige goedkeuring, bepaling, aanwysing, besluit, vrywaring of ander administratiewe aksie ingevolge hierdie Wet deur die Voorsorgowerheid geneem. (b) Sonder om afbreek te doen aan artikel 3(3) en (4) van die ‘‘Promotion of Administrative Justice Act’’, 2000, en ondanks artikel 3(5) van daardie Wet, moet die Voorsorgowerheid, voor optrede kragtens artikel 12, die geraakte regspersone wat deel van daardie versekeringsgroep is, ook kennis gee van die voorgestelde aanwysing en ’n verklaring van die doel van en die redes vir die voorgestelde handeling. (4) Die Voorsorgowerheid moet, by die verrigting van administratiewe stappe, benewens spesifieke aangeleenthede vir oorweging elders in hierdie Wet gespesifiseer, ag slaan op— 20 25 30 35 (a) die oogmerk van hierdie Wet; (b) die aard, skaal en kompleksiteit van die besigheid van ’n versekeraar of ’n 40 versekeringsgroep; (c) oogmerke vir ontwikkeling, finansiële insluiting en transformasie; (d) enige voorleggings wat gedoen is; en (e) in die geval van ’n versekeringsgroep, ook— (i) die finansiële gesondheid van ’n versekeraar wat deel van ’n versekeringsgroep uitmaak; (ii) hoe die verskillende tipes van besigheid van die versekeringsgroep gedryf word; (iii) die risiko’s van die versekeringsgroep en elke regspersoon wat deel van daardie versekeringsgroep is; en (iv) die wyse waarop die beheerraamwerk georganiseer en gedoen word vir die versekeringsgroep en elke regspersoon wat deel van daardie versekeringsgroep is. 45 50 This gazette is also available free online at www.gpwonline.co.za
Part
CHAPTER 7
- 45 Verify source ↗
Annual disclosures
AI-assisted research summary: This section is titled “Annual disclosures,” but no operative rule text is provided.
45. Annual disclosures - 46 Verify source ↗
Annual financial statements and accounting requirements
AI-assisted research summary: 46. Annual financial statements and accounting requirements
46. Annual financial statements and accounting requirements - 47 Verify source ↗
Auditing requirements
AI-assisted research summary: This section concerns auditing requirements.
47. Auditing requirements - 48 Verify source ↗
Additional information relating to foreign reinsurers, Lloyd’s underwriters or
AI-assisted research summary: This section is titled “Additional information relating to foreign reinsurers, Lloyd’s underwriters or Lloyd’s”.
48. Additional information relating to foreign reinsurers, Lloyd’s underwriters or Lloyd’s - 49 Verify source ↗
Additional matters relating to Chapter
AI-assisted research summary: Section 49 is titled “Additional matters relating to Chapter” and refers to Chapter 8 on transfers of business and other significant transactions.
49. Additional matters relating to Chapter CHAPTER 8 TRANSFERS OF BUSINESS AND OTHER SIGNIFICANT TRANSACTIONS Transfer, fundamental transaction or change of institutional form 50. - 72 Verify source ↗
No. 41388
AI-assisted research summary: Insurers and controlling companies must give the Prudential Authority required information, keep it accurate and usable, disclose prescribed annual information within four months after year-end, and prepare annual financial statements under the stated accounting rules.
72 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 Information for supervisory purposes 72 44. (1) In addition to any specific or general requirement provided for elsewhere in this Act or the Financial Sector Regulation Act, an insurer and a controlling company must provide the Prudential Authority with any information the Prudential Authority may reasonably require in the form, manner and at the intervals determined by the Prudential Authority for the supervision and enforcement of this Act (including the resolution of an insurer or a controlling company). (2) An insurer and a controlling company must, when providing information, ensure 5 that the information— (a) (b) is complete in all material respects, comparable and consistent from one reporting period to another; and is relevant, reliable and comprehensible. 10 Annual disclosures 45. (1) An insurer and a controlling company must annually, by no later than four months after its financial year end, publicly disclose the prescribed quantitative and qualitative information in full, or by way of prominent references to information equivalent in nature and scope disclosed publicly under any other law or legal obligation, in the form and manner as may be prescribed. (2) (a) The Prudential Authority may approve the non-disclosure of specific information if the disclosure thereof— (i) may afford the competitors of the insurer or controlling company undue advantage; is subject to contractual obligations of secrecy and confidentiality; (ii) (iii) may negatively impact on the financial soundness of the insurer or controlling company; or (vi) may negatively impact on the financial stability of the insurance sector. (b) If the Prudential Authority approves the non-disclosure of specific information, the Prudential Authority may direct the insurer or the controlling company to include a statement to this effect and the reasons therefore in its disclosure. (3) (a) In the event of any major development affecting the relevance of the information disclosed in accordance with subsection (1), an insurer or a controlling company must publicly disclose appropriate information on the nature and effects of that major development, unless the Prudential Authority has approved that such disclosure need not be made. (b) For the purposes of paragraph (a), ‘‘a major development’’ means any non-compliance with this Act or any review, investigation or verification required by the Prudential Authority in accordance with this Act. (c) In the circumstances referred to in paragraph (a), an insurer or a controlling company must immediately publicly disclose the extent of non-compliance, an explanation of the reasons for the non-compliance, the consequences thereof, and the remedial measures taken by the insurer, unless the Prudential Authority has approved that such disclosure need not take place. Annual financial statements and accounting requirements 46. (1) An insurer (other than a foreign branch of an insurer, Lloyd’s underwriter or Lloyd’s) and a controlling company must annually prepare, in respect of the relevant financial year of the insurer or controlling company, annual financial statements in accordance with the Companies Act and International Financial Reporting Standards issued by the International Accounting Standards Board or a successor body. (2) The Prudential Authority may prescribe additional statements that must be included in the annual financial statements of an insurer or a controlling company after consultation with any relevant regulatory authority. 15 20 25 30 35 40 45 50 This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 73 Inligting vir toesigdoeleindes 73 44. (1) Bykomend tot enige bepaalde of algemene vereiste waarvoor elders in hierdie Wet of die ‘‘Financial Sector Regulation Act’’, voorsiening gemaak word, moet ’n versekeraar en ’n beheermaatskappy die Voorsorgowerheid voorsien van enige inligting wat die Voorsorgowerheid redelikerwys kan vereis in die vorm, op die wyse en met die tussenposes deur die Voorsorgowerheid bepaal vir toesig en afdwinging van hierdie Wet (met inbegrip van die ontbinding van ’n versekeraar of ’n beheermaatskappy). (2) ’n Versekeraar en ’n beheermaatskappy moet, wanneer inligting voorsien word, 5 verseker dat die inligting— (a) (b) in alle wesenlike opsigte volledig, vergelykbaar en konsekwent van een verslagtydperk na die volgende is; en tersaaklik, betroubaar en verstaanbaar is. 10 Jaarlikse bekendmakings 45. (1) ’n Versekeraar en ’n beheermaatskappy moet jaarliks, teen nie later nie as vier maande na sy finansiële jaareinde, die voorgeskrewe kwantitatiewe en kwalitatiewe inligting ten volle bekend maak, of by wyse van opvallende verwysings na inligting gelykstaande in aard en bestek bekend gemaak kragtens enige ander wet of regsverpligting, in die voorgeskrewe vorm en wyse. (2) (a) Die Voorsorgowerheid kan die niebekendmaking van bepaalde inligting goedkeur indien die bekendmaking daarvan— (i) die versekeraar of beheermaatskappy se mededingers onbehoorlik kan (ii) (iii) (vi) bevoordeel; aan kontraktuele verbintenisse van geheimhouding en vertroulikheid onderhewig is; ’n negatiewe invloed op die finansiële gesondheid van die versekeraar of beheermaatskappy kan hê; of ’n negatiewe invloed op die finansiële bestendigheid van die versekeringsektor kan hê. (b) Indien die Voorsorgowerheid die niebekendmaking van bepaalde inligting goedkeur, kan die Voorsorgowerheid opdrag gee dat die versekeraar of die beheer- maatskappy ’n verklaring te dien effekte en die redes daarvoor in die bekendmaking insluit. (3) (a) In die geval van enige groot ontwikkeling wat die tersaaklikheid van die inligting wat ooreenkomstig subartikel (1) bekend gemaak is, raak, moet ’n versekeraar of ’n beheermaatskappy gepaste inligting bekend maak oor die aard en uitwerking van daardie groot ontwikkeling, tensy die Voorsorgowerheid goedgekeur het dat dit nie nodig is om sodanige bekendmaking te doen nie. (b) By die toepassing van paragraaf (a), beteken ‘‘’n groot ontwikkeling’’ enige nienakoming van hierdie Wet of enige hersiening, ondersoek of verifikasie deur die Voorsorgowerheid ooreenkomstig hierdie Wet vereis. (c) In die omstandighede in paragraaf (a) beoog, moet ’n versekeraar of ’n beheermaatskappy onmiddellik die omvang van die nienakoming, ’n verduideliking van die redes vir die nienakoming, die gevolge daarvan, en die remediërende stappe deur die versekeraar gedoen, bekend maak tensy die Voorsorgowerheid goedgekeur het dat sodanige bekendmaking nie nodig is nie. Finansiële jaarstate en boekhouvereistes 46. (1) ’n Versekeraar (behalwe ’n buitelandse tak van ’n versekeraar, Lloyd’s- onderskrywer of Lloyd’s) en ’n beheermaatskappy moet jaarliks, ten opsigte van die tersaaklike finansiële jaar van die versekeraar of beheermaatskappy, finansiële jaarstate voorberei ooreenkomstig die Maatskappywet en die Internasionale Finansiële Verslagdoeningstandaarde uitgereik deur die ‘‘International Accounting Standards Board’’ of ’n opvolgerliggaam. (2) Die Voorsorgowerheid kan bykomende state voorskryf wat na oorleg met enige tersaaklike reguleringsgesag by die finansiële jaarstate van ’n versekeraar of beheermaatskappy ingesluit moet word. 15 20 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za - 74 Verify source ↗
No. 41388
AI-assisted research summary: Insurers, controlling companies, and certain foreign reinsurer/Lloyd’s branches must have specified information audited and reported, and submit certain audited statements or trust audit results to the Prudential Authority within prescribed periods.
74 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 Auditing requirements 74 47. (1) An insurer (other than a branch of a foreign reinsurer, Lloyd’s underwriter or Lloyd’s) and a controlling company must annually cause the following to be audited and reported on by its auditor in accordance with auditing pronouncements as defined in section 1 of the Auditing Profession Act: (a) Such of the information referred to in sections 44 and 45 as prescribed; and (b) the annual financial statements referred to in section 46. (2) (a) The audited annual financial statements of the insurer must be submitted to the Prudential Authority and made available to the public within the prescribed period after its financial year-end. (b) The audited annual financial statements of a controlling company must be submitted to the Prudential Authority within the prescribed period after its financial year-end. (3) A branch of a foreign reinsurer and Lloyd’s must annually cause the following to be audited and reported on by its auditor in accordance with auditing pronouncements as defined in section 1 of the Auditing Profession Act: (a) Such of the information referred to in sections 44 and 45 as prescribed; and (b) the security held in the trust referred to in section 41. (4) The audit of the security held in the trust referred to in section 41 must be submitted to the Prudential Authority and made available to the public within the prescribed period after the audit. (5) The Prudential Authority may, in addition to auditing pronouncements as defined in section 1 of the Auditing Profession Act, prescribe auditing standards or requirements in respect of the information referred to sections 41, 44 and 45. 5 10 15 20 Additional information relating to foreign reinsurers, Lloyd’s underwriters or Lloyd’s 25 48. (1) A branch of a foreign reinsurer and Lloyd’s must as soon as reasonably possible notify the Prudential Authority of any— (a) changes to a law (including any subordinate laws) under which the head office of a foreign reinsurer or Lloyd’s is authorised or supervised to perform business similar to insurance business; and (b) any actions taken by a regulatory authority in the country in which the head office of a foreign reinsurer or Lloyd’s is located relating to the non- compliance of that foreign reinsurer, Lloyd’s underwriter or Lloyd’s with the laws referred to in paragraph (a). (2) The Prudential Authority may, on notification under subsection (1), or upon becoming aware of the changes or actions referred to in subsection (1), in addition to any other action that the Prudential Authority may take— (a) (b) impose additional reporting requirements and increase financial soundness monitoring activities; or take actions under sections 26 to 29. Additional matters relating to Chapter 49. (1) If the Prudential Authority reasonably believes that any information provided in accordance with this Chapter is incomplete or incorrect, the Prudential Authority may— (a) direct the insurer or controlling company to provide the Prudential Authority, within a specified period, with specified information or documents to complete or correct information; or reject the information and direct the insurer or controlling company to provide the Prudential Authority, within a specified period, with new information which is complete and correct. (b) (2) If the Prudential Authority reasonably believes that information or a part thereof requires further investigation, the Prudential Authority may direct the insurer or controlling company to provide additional information or to secure a report from a 30 35 40 45 50 This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 75 Ouditvereistes 75 47. (1) ’n Versekeraar (behalwe ’n tak van ’n buitelandse herversekeraar, Lloyd’s- onderskrywer of Lloyd’s) en ’n beheermaatskappy moet sy ouditeur jaarliks ooreenkomstig ouditverklarings soos omskryf in artikel 1 van die ‘‘Auditing Profession Act’’, die volgende laat ouditeer en daaroor laat verslag doen: (a) Sodanige van die inligting bedoel in artikels 44 en 45 soos voorgeskryf; en (b) die finansiële jaarstate in artikel 46 bedoel. (2) (a) Die geouditeerde finansiële jaarstate van die versekeraar of ’n beheer- maatskappy moet aan die Voorsorgowerheid voorgelê word en aan die publiek beskikbaar gestel word binne die voorgeskrewe tydperk na die einde van die finansiële jaar. (b) Die geouditeerde finansiële jaarstate van ’n beheermaatskappy moet binne die voorgeskrewe tyd na die beheermaatskappy se finansiële jaareinde aan die Voorsorg- owerheid voorgelê word. (3) ’n Tak van ’n buitelandse herversekeraar en Lloyd’s moet sy ouditeur jaarliks ooreenkomstig ouditverklarings soos omskryf in artikel 1 van die ‘‘Auditing Profession Act’’ die volgende laat ouditeer en daaroor laat verslag doen: (a) Sodanige van die inligting bedoel in artikels 44 en 45 soos voorgeskryf; en (b) die effekte in trust gehou in artikel 41 bedoel. (4) Die oudit van die effekte in trust gehou bedoel in artikel 41 moet aan die Voorsorgowerheid voorgelê word en aan die publiek beskikbaar gestel word binne die voorgeskrewe tydperk na die oudit. (5) Die Voorsorgowerheid kan, bykomend tot die ouditverklarings soos omskryf in artikel 1 van die ‘‘Auditing Profession Act’’, ouditstandaarde of -vereistes ten opsigte van die inligting bedoel in artikels 41, 44 en 45, voorskryf. Bykomende onderskrywers of Lloyd’s inligting aangaande buitelandse herversekeraars, Lloyd’s- 48. (1) ’n Tak van ’n buitelandse herversekeraar en Lloyd’s moet so gou as redelikerwys moontlik die Voorsorgowerheid in kennis stel van enige— (a) veranderinge aan ’n wet (met inbegrip van enige ondergeskikte wette) waarkragtens die hoofkantoor van ’n buitelandse herversekeraar of Lloyd’s gemagtig is of oor toesig gehou word om besigheid soortgelyk aan versekeringsbesigheid, te dryf; en (b) enige stappe gedoen deur ’n reguleringsowerheid in die land waarin die hoofkantoor van ’n buitelandse herversekeraar of Lloyd’s geleë is aangaande die nienakoming van daardie buitelandse herversekeraar, Lloyd’s- onderskrywer of Lloyd’s van die wette in paragraaf (a) bedoel. (2) Die Voorsorgowerheid kan, by kennisgewing kragtens subartikel (1) of by bewuswording van die verandering of stappe bedoel in subartikel (1) bykomend to enige ander stap wat die Voorsorgowerheid kan doen— (a) bykomende verslagdoeningsvereistes oplê en moniteringsaktiwiteite van finansiële gesondheid, verhoog; of stappe kragtens artikels 26 tot 29 doen. (b) Bykomende aangeleenthede met betrekking tot Hoofstuk 49. (1) Indien die Voorsorgowerheid redelikerwys van mening is dat enige inligting ooreenkomstig hierdie Hoofstuk verstrek onvolledig of verkeerd is, kan die Voorsorgowerheid— (a) die versekeraar of beheermaatskappy gelas om die Voorsorgowerheid, binne ’n vermelde tydperk, te voorsien van bepaalde inligting of dokumente om inligting te voltooi of reg te stel; of (b) die inligting verwerp en die versekeraar of beheermaatskappy opdrag gee om die Voorsorgowerheid binne ’n bepaalde tydperk te voorsien van nuwe inligting wat volledig en korrek is. (2) Indien die Voorsorgowerheid redelikerwys oortuig is dat die inligting of ’n gedeelte daarvan verdere ondersoek vereis, kan die Voorsorgowerheid aan die versekeraar of beheermaatskappy opdrag gee om bykomende inligting te voorsien of ’n verslag te verkry van ’n persoon wat deur die Voorsorgowerheid goedgekeur moet word, 5 10 15 20 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za - 76 Verify source ↗
No. 41388
AI-assisted research summary: The provision requires Prudential Authority approval for certain insurer and controlling company transfers, transactions, and material acquisitions or disposals.
76 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 76 person to be approved by the Prudential Authority, at the cost of the insurer or controlling company, by a specified date or within a specific period, and in the form, manner and containing the information as required by the Prudential Authority. CHAPTER 8 TRANSFERS OF BUSINESS AND OTHER SIGNIFICANT TRANSACTIONS 5 Transfer, fundamental transaction or change of institutional form 50. (1) An insurer (other than a branch of a foreign reinsurer, Lloyd’s underwriter or Lloyd’s) may not, without the approval of the Prudential Authority, transfer all or any part of its assets and liabilities relating to its insurance business to another insurer. (2) A branch of a foreign reinsurer or a Lloyd’s underwriter may not, without the approval of the Prudential Authority, transfer all or any part of its assets and liabilities relating to its insurance business conducted in the Republic to another insurer. (3) An insurer (other than a branch of a foreign reinsurer, Lloyd’s underwriter or Lloyd’s) or a controlling company may not, without the approval of the Prudential Authority— (a) participate in any fundamental transaction or compromise contemplated in Part A of Chapter 5 or section 155 of the Companies Act; or (b) convert from one type of company to another, convert from a co-operative to a company, or in any other way change the type of person it was on the date that it was licensed as an insurer or controlling company. (4) The Prudential Authority must only grant an approval referred to under subsections (1) to (3) if the Prudential Authority is satisfied— (a) (b) (c) (d) that the transfer, transaction or change will not impede the financial soundness of an insurer or controlling company that is a party to the transfer, transaction or change; in the case of an insurer, that the transfer, transaction or change does not negatively impact on the interest of policyholders; in the case of a controlling company, that the transfer, transaction or change does not negatively impact on the interests of policyholders of the insurers that are part of the insurance group; and that any prescribed procedures have been complied with. (5) The Prudential Authority may— (a) prescribe the requirements that an insurer and controlling company must comply with in respect of transfers, transactions or changes, which may include requirements for informing and consulting policyholders through appropriate media; and (b) appoint a person, at the cost of the insurer or controlling company, to assess the transfer, transaction or change and express a view on the desirability or otherwise thereof. (6) A transfer, transaction or change referred to in subsections (1) to (3) that is approved by the Prudential Authority is binding on and enforceable against all persons. (7) Any person in charge of a deeds registry or other office in which any mortgage bond or movable or immovable property is registered which is to be transferred in accordance with an approved transfer, transaction or change referred to in subsections (1) to (3), must, on receipt of the relevant bond, title deed or registration certificate and a certified copy of the Prudential Authority’s approval, take the measures necessary to effect the transfer. (8) Any transfer, transaction or change referred to in subsections (1) to (3) that is effected without the approval of the Prudential Authority is void. Acquisitions or disposals 51. (1) An insurer (other than branch of a foreign reinsurer, Lloyd’s underwriter or Lloyd’s) or a controlling company must, prior to making a material acquisition or disposal, obtain the approval of the Prudential Authority. (2) The Prudential Authority must prescribe what constitutes a material acquisition or disposal for the purposes of subsection (1). 10 15 20 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 77 Versekeringswet, 2017 Wet No. 18 van 2017 77 op onkoste van die versekeraar of beheermaatskappy, teen ’n bepaalde datum of binne ’n bepaalde tydperk, en in die vorm, op die wyse en met die inligting deur die Voorsorgowerheid vereis. HOOFSTUK 8 OORDRAGTE VAN BESIGHEIDS- EN ANDER BEDUIDENDE TRANSAKSIES 5 Oordrag, fundamentele transaksie of verandering van vorm van inrigting 50. (1) ’n Versekeraar (behalwe ’n tak van ’n buitelandse herversekeraar, Lloyd’s- onderskrywer of Lloyd’s) kan nie, sonder die goedkeuring van die Voorsorgowerheid, of enige gedeelte van sy bates en verpligtinge in verband met sy versekeringsbesigheid aan ’n ander versekeraar oordra nie. (2) ’n Tak van ’n buitelandse herversekeraar of ’n Lloyd’s-onderskrywer kan nie, sonder die goedkeuring van die Voorsorgowerheid, alle of enige deel van sy bates en verpligtinge wat met sy versekeringsbesigheid wat in die Republiek gedoen word verband hou, aan ’n ander versekeraar oordra nie. (3) ’n Versekeraar (behalwe ’n tak van ’n buitelandse herversekeraar, Lloyd’s- onderskrywer of Lloyd’s) of ’n beheermaatskappy kan nie, sonder die goedkeuring van die Voorsorgowerheid— (a) aan enige fundamentele transaksie of kompromis in Deel A van Hoofstuk 5 of artikel 155 van die Maatskappywet beoog, deelneem nie; of (b) van een tipe maatskappy na ’n ander omskakel, van ’n koöperasie na ’n maatskappy omskakel of op enige ander manier die tipe persoon wat hy was op die datum toe hy as ’n versekeraar of beheermaatskappy gelisensieer is, verander nie. (4) Die Voorsorgowerheid moet ’n goedkeuring in subartikels (1) tot (3) bedoel, slegs toestaan indien die Voorsorgowerheid tevrede is— (b) (a) dat die oordrag, transaksie of verandering nie die finansiële gesondheid van ’n versekeraar of beheermaatskappy wat ’n party tot die oordrag, transaksie of verandering is, sal belemmer nie; in die geval van ’n versekeraar, dat die oordrag, transaksie of verandering nie ’n negatiewe invloed op die belang van polishouers het nie; in die geval van ’n beheermaatskappy, dat die oordrag, transaksie of verandering nie ’n negatiewe invloed op die belange van polishouers van die versekeraars wat deel van die versekeringsgroep is, het nie; en (c) (d) dat enige voorgeskrewe prosedures aan voldoen is. (5) Die Voorsorgowerheid kan— (a) die vereistes voorskryf waaraan ’n versekeraar en beheermaatskappy moet voldoen ten opsigte van oordragte, transaksies of veranderinge, wat vereistes kan insluit om polishouers deur die gepaste media in te lig en te raadpleeg; en ’n persoon, op onkoste van die versekeraar of beheermaatskappy, aanstel om die oordrag, transaksie of verandering te assesseer en ’n opinie te lewer oor hetsy dit wenslik is al dan nie. (b) (6) ’n Oordrag, transaksie of verandering in subartikels (1) tot (3) bedoel wat deur die Voorsorgowerheid goedgekeur is, is bindend en afdwingbaar op alle persone. (7) ’n Persoon in beheer van ’n aktekantoor of ander kantoor waarin enige verband of roerende of vaste eiendom geregistreer is wat oorgedra gaan word ooreenkomstig ’n goedgekeurde oordrag, transaksie of verandering in subartikel (1) tot (3) bedoel, moet titelakte of registrasiesertifikaat en ’n by ontvangs van die tersaaklike verband, gesertifiseerde afskrif van die Voorsorgowerheid se goedkeuring, die nodige stappe doen om die oordrag te bewerkstellig. 10 15 20 25 30 35 40 45 (8) Enige oordrag, transaksie of verandering in subartikels (1) tot (3) bedoel wat 50 sonder die goedkeuring van die Voorsorgowerheid gedoen word, is nietig. Verkrygings of beskikkings 51. (1) ’n Versekeraar (behalwe ’n tak van ’n buitelandse herversekeraar, Lloyd’s- onderskrywer of Lloyd’s) of ’n beheermaatskappy moet die goedkeuring van die Voorsorgowerheid kry voordat ’n materiële verkryging of beskikking gedoen word. (2) Die Voorsorgowerheid moet voorskryf wat ’n materiële verkryging of beskikking 55 by die toepassing van subartikel (1) daarstel. This gazette is also available free online at www.gpwonline.co.za
Part
CHAPTER 8
- 51 Verify source ↗
Acquisitions or disposals
AI-assisted research summary: Section 51 is titled “Acquisitions or disposals.”
51. Acquisitions or disposals 15 20 25 30 35 40 This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 7 7 HOOFSTUK 5 BEHEER Deel 1 Versekeraars en versekeringsgroepe Beheerraamwerk 30. - 31 Verify source ↗
Versuim om beheerraamwerk te onderhou
AI-assisted research summary: Section title: failure to maintain a control framework.
31. Versuim om beheerraamwerk te onderhou - 33 Verify source ↗
Ouditkomitee
AI-assisted research summary: Section 33 is titled “Ouditkomitee” and refers to additional control requirements for representative offices of branches of foreign reinsurers and Lloyd’s.
33. Ouditkomitee Deel 2 5 Bykomende beheervereistes vir verteenwoordigende kantore van takke van buitelandse herversekeraars en Lloyd’s 10 - 34 Verify source ↗
Verteenwoordigende kantoor
AI-assisted research summary: This section is titled “Representative office” and indicates that Part 35 applies in Chapter 6 on financial soundness for insurers and insurance groups.
34. Verteenwoordigende kantoor HOOFSTUK 6 FINANSIËLE GESONDHEID Deel 1 Versekeraars en versekeringsgroepe Toepassing van Deel 35. - 36 Verify source ↗
Onderhoud van finansieel gesonde toestand
AI-assisted research summary: Section heading about maintaining a financially sound condition.
36. Onderhoud van finansieel gesonde toestand - 37 Verify source ↗
Kapitaaltoevoeging
AI-assisted research summary: This section is titled “Kapitaaltoevoeging” (capital contribution).
37. Kapitaaltoevoeging - 38 Verify source ↗
Kapitaal en effekte
AI-assisted research summary: Capital and securities.
38. Kapitaal en effekte - 39 Verify source ↗
Versuim om finansieel gesonde toestand te onderhou
AI-assisted research summary: This section is titled “Failure to maintain a financially sound condition” and includes a note that effects must be held in trust.
39. Versuim om finansieel gesonde toestand te onderhou Deel 2 Effektevereistes vir takke van buitelandse herversekeraars en Lloyd’s Effekte moet in trust gehou word Trust en trustees 40. 41. - 42 Verify source ↗
Versuim om effekte te voorsien of te onderhou
AI-assisted research summary: Section 42 is titled “Versuim om effekte te voorsien of te onderhou” and appears in a chapter on reporting and public disclosures.
42. Versuim om effekte te voorsien of te onderhou HOOFSTUK 7 VERSLAGDOENING EN OPENBARE BEKENDMAKINGS Inligting aangaande voordelige belange Inligting vir toesigdoeleindes Jaarlikse bekendmakings Finansiële jaarstate en boekhouvereistes 43. 44. 45. 46. - 47 Verify source ↗
Ouditvereistes
AI-assisted research summary: This section is headed “Audit requirements” and is followed by references to foreign reinsurers, Lloyd’s underwriters, and Chapter 8 on transfers of business and other significant transactions.
47. Ouditvereistes 48. Bykomende inligting aangaande buitelandse herversekeraars, Lloyd’s- onderskrywers of Lloyd’s Bykomende aangeleenthede met betrekking tot Hoofstuk 49. 15 20 25 30 35 HOOFSTUK 8 OORDRAGTE VAN BESIGHEIDS- EN ANDER BEDUIDENDE TRANSAKSIES - 50 Verify source ↗
Oordrag, fundamentele transaksie of verandering van vorm van inrigting
AI-assisted research summary: Section 50 is titled “Transfer, fundamental transaction or change of form of institution.”
50. Oordrag, fundamentele transaksie of verandering van vorm van inrigting - 51 Verify source ↗
Verkrygings of beskikkings
AI-assisted research summary: Section heading only: “Verkrygings of beskikkings.”
51. Verkrygings of beskikkings 40 This gazette is also available free online at www.gpwonline.co.za - 8 Verify source ↗
No. 41388
AI-assisted research summary: Section heading only; no substantive rule text is provided.
8 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 8 CHAPTER 9 RESOLUTION
Part
CHAPTER 9
- 52 Verify source ↗
Application of Chapter
AI-assisted research summary: This section is titled “Application of Chapter” and refers to Part 1, “Statutory management.”
52. Application of Chapter Part 1 Statutory management
Part
SCHEDULE 3
- 13 Verify source ↗
Delays and exemptions
AI-assisted research summary: This section is titled “Delays and exemptions,” but the provided text does not show any operative rule.
13. Delays and exemptions 10. 10 15 20 25 30 This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 11 11 HOOFSTUK 11 ALGEMENE BEPALINGS 70. Regulasies aangaande sekere klasse van versekeringsbesigheid in Bylae 2 uiteengesit 71. Spesiale vrywaring van sekere versekeraars - 72 Verify source ↗
Gevolglike wysigings en oorgangsbepalings
AI-assisted research summary: Section heading only: consequential amendments and transitional provisions.
72. Gevolglike wysigings en oorgangsbepalings - 73 Verify source ↗
Kort titel en inwerkingtreding
AI-assisted research summary: This section is headed “Short title and commencement” and is followed by schedule headings.
73. Kort titel en inwerkingtreding 5 BYLAE 1 WETTE GEWYSIG BYLAE 2 KLASSE EN SUBKLASSE TABEL 1 KLASSE EN SUBKLASSE VAN VERSEKERINGSBESIGHEID LEWENSVERSEKERING TABEL 2 KLASSE EN SUBKLASSE VAN VERSEKERINGSBESIGHEID NIELEWENSVERSEKERING BYLAE 3 OORGANGSBEPALINGS - 1 Verify source ↗
Woordomskrywing en uitleg
AI-assisted research summary: This section lists the topics covered in the act, including interpretation, repeal of prior matters, pending matters, court proceedings, investigations, registered insurers, financial soundness, reporting, and key persons/owners.
1. Woordomskrywing en uitleg 2. 3. 4. 5. 6. 7. 8. 9. Herroeping van aangeleenthede kragtens vorige Wet voorgeskryf Hangende aangeleenthede Preservering en voortsetting van hofverrigtinge en -bevele Voortgesette ondersoek en afdwinging van vorige Wet Voortsetting van voorheen geregistreerde versekeraars Onderhoud van finansiële gesondheid Verslagdoening Sleutelpersone en beduidende eienaars behalwe verteenwoordigers, adjunk- verteenwoordigers van Lloyd’s en trustees van Lloyd’s-trust 10 15 20 25 - 10 Verify source ↗
Dryf van besigheid behalwe versekeringsbesigheid in Republiek en dryf van
AI-assisted research summary: This provision mentions carrying on business in the Republic, except insurance business, and carrying on other business outside the Republic in relation to Lloyd’s.
10. Dryf van besigheid behalwe versekeringsbesigheid in Republiek en dryf van 30 enige ander besigheid buite Republiek Lloyd’s 11. - 12 Verify source ↗
Versekeringsgroepe
AI-assisted research summary: Section title: Insurance groups.
12. Versekeringsgroepe - 13 Verify source ↗
Vertragings en vrywarings
AI-assisted research summary: Section heading: Delays and indemnities.
13. Vertragings en vrywarings This gazette is also available free online at www.gpwonline.co.za - 12 Verify source ↗
No. 41388
AI-assisted research summary: This section defines terms used in the Act, including different insurance, corporate, and governance concepts.
12 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 12 CHAPTER 1 INTERPRETATION AND OBJECTIVE OF ACT Definitions 1. (1) In this Act, unless the context indicates otherwise— ‘‘accident’’ means an external, violent, unexpected and visible event; ‘‘ancillary own funds’’ consists of items, other than basic own funds, that may be called up by the insurer or controlling company, as the case may be, to absorb losses, excluding items that have been called up or paid; ‘‘associate’’ has the meaning set out in the International Financial Reporting Standards issued by the International Accounting Standards Board or a successor body; ‘‘Auditing Profession Act’’ means the Auditing Profession Act, 2005 (Act No. 26 of 2005); ‘‘auditor’’ means an auditor registered in terms of the Auditing Profession Act; ‘‘basic own funds’’ consists of— (a) the excess of assets over liabilities (including technical provisions that constitute the liability of the insurer arising from insurance obligations, calculated in the prescribed manner) valued in accordance with prescribed requirements, adjusted in accordance with prescribed requirements; and subordinated liabilities; (b) ‘‘board of directors’’ means— (a) (b) the board of directors of a company registered under the Companies Act; the board of directors of a co-operative registered under the Co-operatives Act; or the governing body of a person other than a company or co-operative; (c) ‘‘branch of a foreign reinsurer’’ means an operating entity of a foreign reinsurer that is not a legal entity separate from the foreign reinsurer; ‘‘captive insurer’’ means an insurer that only insures first party risks; ‘‘cell captive insurer’’ means an insurer that only conducts insurance business through cell structures; ‘‘cell structure’’ means an arrangement under which a person (cell owner)— (a) holds an equity participation in a specific class or type of shares of an insurer, which equity participation is administered and accounted for separately from other classes or types of shares; is entitled to a share of the profits and liable for a share of the losses as a result of the equity participation referred to in paragraph (a), linked to profits or losses generated by the insurance business referred to in paragraph (c); and (c) places or insures insurance business with the insurer referred to in paragraph (a), which business is contractually ring-fenced from the other insurance business of that insurer for as long as the insurer is not in winding-up; ‘‘commercial lines’’ means non-life insurance business other than in respect of personal lines; ‘‘Companies Act’’ means the Companies Act, 2008 (Act No. 71 of 2008); ‘‘control’’, in respect of the definition of controlling company, and sections 10, 17 and 22(2), has the meaning defined in section 2 of the Companies Act; ‘‘control function’’ has the meaning defined in the Financial Sector Regulation Act; ‘‘controlling company’’ means a holding company of, or another juristic person that controls, an insurance group, which is located in the Republic, designated under Part 4 of Chapter 2 and licensed under Chapter 4; ‘‘Co-operatives Act’’ means the Co-operatives Act, 2005 (Act No. 14 of 2005); ‘‘death event’’ means the event of the life of a person or an unborn having ended; ‘‘director’’ means a member of a board of directors and any alternate of such a member; (b) 5 10 15 20 25 30 35 40 45 50 This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 13 13 HOOFSTUK 1 UITLEG EN OOGMERK VAN WET Woordomskrywing 1. (1) In hierdie Wet, tensy die samehang anders aandui, beteken— ‘‘aanvullende eie fondse’’ items, behalwe basiese eie fondse, wat deur die versekeraar of beheermaatskappy, na gelang van die geval, opgeroep kan word om verliese te absorbeer, uitsluitend items wat opgeroep of betaal is; ‘‘amptelike webwerf’’ die Voorsorgowerheid se webwerf soos in artikel 1 van die Wet op Elektroniese Kommunikasies en Transaksies, 2002 (Wet No. 25 van 2002), omskryf; ‘‘Auditing Profession Act’’ die ‘‘Auditing Profession Act’’, 2005 (Wet No. 26 van 2005); ‘‘basiese eie fondse’’— (a) die oorskot van bates of verpligtinge (met inbegrip van tegniese bepalings wat die aanspreeklikheid van die versekeraar na aanleiding van versekerings- verbintenisse, op die voorgeskrewe wyse bereken, daarstel) ooreenkomstig voorgeskrewe vereistes gewaardeer, ooreenkomstig voorgeskrewe vereistes aangepas; en (b) uitgestelde verpligtinge; ‘‘bedryfsrisiko’’, by die toepassing van die omskrywing van eerstepartyrisiko’s, die risiko dat verliese gelei kan word as gevolg van ontoereikende of mislukte interne prosesse, mense en stelsels, of deur eksterne gebeure, en sluit enige risiko’s uit wat met die versekeringsverbintenisse van ’n versekeraar gepaard gaan; ‘‘beduidende eienaar’’ ’n ‘‘significant owner’’ soos in artikel 1 van die ‘‘Financial Sector Regulation Act’’ omskryf; ‘‘beheer’’ ten opsigte van die omskrywing van beheermaatskappy, en artikels 10, 17 en 22(2) het die betekenis in artikel 2 van die Maatskappywet omskryf; ‘‘beheerfunksie’’ ‘‘control function’’ soos in die ‘‘Financial Sector Regulation Act’’ omskryf; ‘‘beheerliggaam’’ ’n persoon of ’n liggaam van persone, hetsy verkies of nie, wat ’n versekeraar of beheermaatskappy se beleid en strategie formuleer, se sake rig, of die gesag het om die versekeraar of beheermaatskappy se bevoegdhede uit te voer en se werksaamhede te verrig; ‘‘beheermaatskappy’’ ’n beherende maatskappy van ’n versekeringsgroep of ’n ander regspersoon wat ’n versekeringsgroep beheer, wat in die Republiek geleë is, kragtens Deel 4 van Hoofstuk 4 aangewys en kragtens Hoofstuk 4 gelisensieer; ‘‘belas’’ enige pand, beperking of begrensing (ook enige kontraktuele verpligting wat vervul moet word voordat ’n kontraktuele reg uitgeoefen mag word) wat toegang tot, of die gebruik van of beskikking oor ’n bate beperk; ‘‘beperkte versekeraar’’ ’n versekeraar wat slegs eerstepartyrisiko’s verseker; ‘‘buitelandse herversekeraar’’ ’n instelling gemagtig deur en onder toesig van ’n reguleringsgesag om besigheid te dryf soortgelyk aan herversekeringsbesigheid soos in hierdie Wet omskryf kragtens die wette van ’n land behalwe die Republiek; ‘‘buitelandse tak van ’n versekeraar’’ ’n bedryfsentiteit van ’n versekeraar wat deel van die versekeraar is ingevolge die versekeraar se organisasie en nie ’n regsentiteit apart van die versekeraar is nie, maar buite die Republiek ingestel is; ‘‘Co-operatives Act’’ die ‘‘Co-operatives Act’’, 2005 (Wet No. 14 van 2005); ‘‘derdepartyrisiko’s’’, eerstepartyrisiko’s; ‘‘direksie’’ die— (a) direksie van ’n maatskappy kragtens die Maatskappywet geregistreer; (b) direksie van ’n koöperasie kragtens die ‘‘Co-operatives Act’’ geregistreer; of (c) beheerliggaam van ’n persoon behalwe ’n maatskappy of koöperasie; ‘‘direkteur’’ ’n lid van ’n direksie en enige plaasvervanger van so ’n lid; ‘‘eerstepartyrisiko’s’’— (a) ten opsigte van ’n beperkte versekeraar, die bedryfsrisiko’s van— (i) die groep maatskappye waarvan die versekeraar ’n deel is; (ii) enige geassosieerde van ’n maatskappy wat deel is van die groep ten opsigte van ’n selversekeraar, risiko’s behalwe maatskappye in subparagraaf (i) bedoel; of 5 10 15 20 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za
Part
CHAPTER 1
- 14 Verify source ↗
No. 41388
AI-assisted research summary: This section defines insurance-related terms used in the Act.
14 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 14 the loss of a limb or sense organ, or the use thereof by a person; or ‘‘disability event’’ means any event resulting in— (a) (b) a person becoming so physically or mentally impaired, whether totally or partially, or temporarily or permanently, that the person is unable to— (i) continue his or her employment or own occupation, profession or trade; (ii) participate in any employment, occupation, profession or trade that is reasonably suitable for that person given, amongst other matters, his or her education, skills, experience or age; or (iii) carry on the functions required for normal activities of life; (b) (c) ‘‘discretionary participation features’’ means insurance obligations under a life insurance policy— (a) that may be a significant portion of the total insurance obligations under the policy; the amount or timing of which are contractually at the discretion of the insurer; and that are contractually based on— (i) in full or in part, the performance of a specified pool of policies or a specified type of policy; realised and unrealised investment returns on a specified pool of assets held by the insurer; or the profit or loss of the insurer that issues the policy; (ii) (iii) ‘‘eligible own funds’’ comprise the sum of basic own funds and those ancillary own funds approved by the Prudential Authority as meeting the prescribed criteria for such funds, adjusted in accordance with the prescribed tiering restrictions; ‘‘encumber’’ means any pledge, restriction or limitation (including any contractual obligation that must be fulfilled before a contractual right may be exercised) that limits access to, or the use or disposal of, an asset; ‘‘financial inclusion‘‘ has the meaning defined in the Financial Sector Regulation Act; ‘‘Financial Institutions (Protection of Funds) Act’’ means the Financial Institutions (Protection of Funds) Act, 2001 (Act No. 28 of 2001); ‘‘Financial Sector Code’’ means the Financial Sector Code for Broad-Based Black Economic Empowerment issued in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003); ‘‘Financial Sector Conduct Authority’’ has the meaning defined in the Financial Sector Regulation Act; ‘‘Financial Sector Regulation Act’’ means the Financial Sector Regulation Act, 2017; ‘‘first party risks’’ means— (a) in respect of a captive insurer, the operational risks of— (i) (ii) any associate of a company that is part of the group of companies the group of companies of which the insurer is a part; referred to in subparagraph (i); or (iii) any joint arrangement that a company that is part of the group of companies referred to in subparagraph (i) participates in; (b) in respect of a cell captive insurer, the operational risks of the cell owner and the operational risks of— (i) (ii) any associate of a company that is part of the group of companies the group of companies of which the cell owner is a part; referred to in subparagraph (i); or (iii) any joint arrangement that a company that is part of the group of companies referred to in subparagraph (i) participates in; ‘‘fit and proper requirements’’ means— (a) in relation to a key person, personal character qualities of honesty, integrity, and competence, including experience, qualifications and knowledge as may be prescribed; and in relation to a significant owner, qualities of honesty and integrity and financial standing as may be prescribed; (b) 5 10 15 20 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 15 Versekeringswet, 2017 Wet No. 18 van 2017 15 (iii) enige gesamentlike reëling waaraan ’n maatskappy wat deel is van die groep maatskappye in subparagraaf (i) bedoel, deelneem; (b) ten opsigte van ’n selversekeraar, die bedryfsrisiko’s van die seleienaar en die bedryfsrisiko’s van— (i) die groep maatskappye waarvan die seleienaar ’n deel is; (ii) enige geassosieerde van ’n maatskappy wat deel is van die groep maatskappye in subparagraaf (i) bedoel, deelneem; of (iii) enige gesamentlike reëling waaraan ’n maatskappy wat deel is van die groep maatskappye in subparagraaf (i) bedoel, deelneem; inclusion’’ soos in die ‘‘Financial Sector ‘‘effekte’’ ‘‘securities’’ soos in artikel 1(1) van die ‘‘Financial Markets Act’’, 2012 (Wet No. 19 van 2012), omskryf; ‘‘finansiële insluiting’’ ‘‘financial Regulation Act’’ omskryf; ‘‘Financial Sector Regulation Act’’ die ‘‘Financial Sector Regulation Act’’, 2017; ‘‘geassosieerde’’ dit wat aan ‘‘associate’’ toegeskryf word in die ‘‘International Financial Reporting Standards’’ uitgereik deur die ‘‘International Accounting Standards Board’’ of ’n opvolgliggaam; ‘‘Gedragsowerheid vir die Finansiële Sektor’’ ‘‘Financial Sector Conduct Authority’’ soos in die ‘‘Financial Sector Regulation Act’’ omskryf; ‘‘gesamentlike reëling’’ dit wat in die ‘‘International Financial Reporting Standards’’ uitgereik deur die ‘‘International Accounting Standards Board’’ of ’n opvolgliggaam, aan ‘‘joint arrangement’’ toegeskryf is; ‘‘gesondheidsgebeurtenis’’ ’n gebeurtenis wat met die gesondheid van die verstand of liggaam van ’n persoon of ongeborene verband hou, behalwe ’n ongeskiktheidsgebeurtenis; ‘‘groep maatskappye’’ enige groep verwante of onderling verwante regspersone, met inbegrip van ’n groep maatskappye soos in artikel 1 van die Maatskappywet omskryf; ‘‘herversekeraar’’ ’n persoon gelisensieer— (a) om slegs herversekeringsbesigheid; of (b) om slegs versekeringsbesigheid en die besigheid in artikel 25(7)(b) bedoel, in die herversekeringsklas en -subklasse in Bylae 2 uiteengesit te dryf, en tensy hierdie Wet spesifiek anders bepaal, ook ’n tak van ’n aldus gelisensieerde buitelandse herversekeraar; ‘‘herversekeringsbesigheid’’— (a) versekeringsbesigheid deur ’n versekeraar met ’n ander versekeraar gedryf, risiko’s verseker wat met die waar die eersgenoemde versekeraar versekeringsverbintenisse van die laasgenoemde versekeraar gepaard gaan; of (b) besigheid soortgelyk aan die versekeringsbesigheid in paragraaf (a) bedoel deur ’n persoon gedryf wat deur ’n reguleringsgesag gemagtig is om besigheid soortgelyk aan versekeringsbesigheid met ’n versekeraar te dryf kragtens die wette van ’n land behalwe die Republiek; ‘‘hierdie Wet’’ ook enige Voorsorgstandaard of Regulasie ingevolge hierdie Wet voorgeskryf of uitgevaardig; ‘‘hoof van ’n beheerfunksie’’ ’n ‘‘head of control function’’ soos in die ‘‘Financial Sector Regulation Act’’ omskryf, ook, by die toepassing van hierdie Wet, ’n persoon aldus deur ’n beheermaatskappy aangestel; ‘‘intragroeptransaksie’’ enige reëling of ooreenkoms ingevolge waarvan ’n versekeraar, direk of indirek, op iemand anders wat deel van daardie versekeraar se versekeringsgroep of ’n verwante of onderling verwante persoon van die eersgenoemde, staatmaak vir die nakoming van ’n verpligting; ‘‘kenmerke van diskresionêre deelname’’ versekeringsverbintenisse onder ’n lewensversekeringspolis— (a) wat ’n aansienlike gedeelte van die totale versekeringsverbintenisse kragtens die polis kan wees; (b) waarvan die die bedrag of tydreëling kontraktueel aan die goeddunke van die versekeraar oorgelaat is; en (c) wat kontraktueel gebaseer is op— 5 10 15 20 25 30 35 40 45 50 55 (i) ten volle of gedeeltelik, die verrigting van ’n gespesifiseerde poel polisse of ’n gespesifiseerde tipe polis; 60 (ii) verwesenlike en onverwesenlike beleggingsopbrengste op ’n bepaalde poel van bates wat die versekeraar hou; of (iii) die wins of verlies van die versekeraar wat die polis uitreik; This gazette is also available free online at www.gpwonline.co.za - 16 Verify source ↗
No. 41388
AI-assisted research summary: This section defines a range of insurance-related terms used in the Act.
16 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 16 ‘‘foreign branch of an insurer’’ means an operating entity of an insurer that is part of the insurer in terms of its organisation and is not a legal entity separate from the insurer, but is established outside of the Republic; ‘‘foreign reinsurer’’ means an institution authorised and supervised by a regulatory authority to perform business similar to reinsurance business as defined in this Act under the laws of a country other than the Republic; ‘‘governing body’’ means a person or a body of persons, whether elected or not, that manages, controls, formulates the policy and strategy of the insurer or controlling company, directs its affairs or has the authority to exercise the powers and perform the functions of the insurer or controlling company; ‘‘group of companies’’ means any group of related or inter-related juristic persons, including a group of companies as defined in section 1 of the Companies Act; ‘‘head of a control function’’ has the meaning defined in the Financial Sector Regulation Act, and includes for purposes of this Act a person so appointed by a controlling company; ‘‘health event’’ means an event relating to the health of the mind or body of a person or an unborn, other than a disability event; ‘‘insurance business’’ means life insurance business or non-life insurance business conducted or regarded as being conducted in the Republic, and includes reinsurance business; ‘‘insurance group’’ means the group of entities designated by the Prudential Authority under section 10; ‘‘insurance obligations’’ means all obligations (other than the obligations of the policyholder), whether those obligations constitute an obligation to pay one or more sums of money, render services or meet any other obligations, under or arising from insurance policies, and, in respect of life insurance policies, includes any guarantees and discretionary participation features; ‘‘insurance policy’’ means a life insurance policy or a non-life insurance policy; ‘‘insurer’’ means a person licensed to conduct insurance business under this Act, and includes, unless specifically otherwise provided for in this Act, Lloyd’s, a Lloyd’s underwriter and a reinsurer; ‘‘inter-related’’ has the meaning defined in section 1 of the Companies Act; ‘‘intra-group transaction’’ means any arrangement or agreement in terms of which an insurer, directly or indirectly, relies on another person that is part of that insurer’s insurance group or a related or inter-related person of the aforementioned person, for the fulfilment of an obligation; ‘‘joint arrangement’’ has the meaning set out in the International Financial Reporting Standards issued by the International Accounting Standards Board or a successor body; ‘‘juristic person’’ has the meaning defined in the Financial Sector Regulation Act; ‘‘key person’’ means— (a) a director; (b) a senior manager; a head of a control function; (c) (d) an auditor referred to in section 32; (e) (f) a trustee of a trust referred to in section 41; and a representative and a deputy representative of Lloyd’s or a branch of a foreign reinsurer referred to in section 34; ‘‘life event’’ means the event of the life of a person— (a) having begun; (b) continuing; or (c) having continued for a period; ‘‘life insurance business’’ means any activity conducted with the purpose of entering into or meeting insurance obligations under a life insurance policy; ‘‘life insurance policy’’ means any arrangement under which a person, in return for provision being made for the rendering of a premium to that person, undertakes to meet insurance obligations— (a) on the happening of a life event, health event, disability event or death event; or 5 10 15 20 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 17 Versekeringswet, 2017 Wet No. 18 van 2017 17 sodanige fondse voldoen, ‘‘Kode vir die Finansiële Sektor’’ die ‘‘Financial Sector Code for Broad-Based Black Economic Empowerment’’ uitgereik ingevolge artikel 9(1) van die ‘‘Broad-Based Black Economic Empowerment Act’’, 2003 (Wet No. 53 van 2003); ‘‘kommersiële reekse’’ nielewensversekeringsbesigheid behalwe ten opsigte van persoonlike reekse; ‘‘kwalifiserende eie fondse’’ die totaal van eie fondse en dié aanvullende eie fondse deur die Voorsorgowerheid goedgekeur as dat dit aan die voorgeskrewe maatstawwe vir aangepas ooreenkomstig die voorgeskrewe vlakbeperkings; ‘‘lewensgebeurtenis’’ die gebeurtenis waar die lewe van ’n persoon— (a) begin het; (b) voortgaan; of (c) vir ’n tydperk voortgegaan het; ‘‘lewensversekeringsbesigheid’’ enige aktiwiteit gedoen met die doel om versekeringsverbintenisse onder ’n lewensversekeringspolis af te sluit of na te kom; in ruil ‘‘lewensversekeringspolis’’ enige reëling waarvolgens ’n persoon, daarvoor dat voorsiening gemaak word vir die lewering van ’n premie aan daardie persoon, onderneem om aan versekeringsverbintenisse te voldoen— (a) wanneer ’n lewensgebeurtenis, gesondheidsgebeurtenis, ongeskiktheids- gebeurtenis of sterftegebeurtenis plaasvind; of (b) op of vanaf ’n vasgestelde bepaalbare datum of op versoek van die polishouer, maar sluit uit— (i) ’n deponering by ’n instelling wat kragtens die Bankwet, 1990 (Wet No. 94 van 1990), die Wet op Onderlinge Banke, 1993 (Wet No. 124 van 1993), of die ‘‘Co-operative Banks Act’’, 2007 (Wet No. 40 van 2007), gemagtig is; en (ii) deelnemende belange in ’n gesamentlike beleggingskema ingevolge die Wet op Beheer van Kollektiewe Beleggingskemas, 2002 (Wet No. 45 van 2002), geregistreer, en ook ’n hernuwing of verandering van daardie reëling; ‘‘likwidasie’’ ‘‘winding-up’’ soos in die ‘‘Financial Sector Regulation Act’’ omskryf; ‘‘Lloyd’s’’ die vereniging persone wat algemeen bekend staan as Lloyd’s en wat ingelyf is by die ‘‘Lloyd’s Act of 1871’’ (34 Vict. c21), deur die Parlement van die Verenigde Koninkryk van Groot-Brittanje en Noord-Ierland deurgevoer; ‘‘Lloyd’s-onderskrywer’’ ’n onderskrywende of nieonderskrywende lid van Lloyd’s; ‘‘Maatskappywet’’ die Maatskappywet, 2008 (Wet No. 71 van 2008); ‘‘mikroversekeraar’’ mikroversekeringsbesigheid te dryf; ‘‘mikroversekeringsbesigheid’’ versekeringsbesigheid— (a) gedryf ten opsigte van enige van die volgende klasse en subklasse van versekeraar wat gelisensieer om slegs ’n is versekeringsbesigheid in Bylae 2 uiteengesit: (i) Lewensversekeringsbesigheid, klasse 1, 3, 4 of 9; en (ii) nielewensversekeringsbesigheid, in die subklas persoonlike reekse in— (aa) klasse 1, 2, 3, 9, 11, 14 of 17 uiteengesit; en (bb) klas 10 uiteengesit, maar slegs vir sover die versekeringsver- bintenisse direk met die klasse in item (aa) bedoel, verband hou; en in die geval van lewensversekeringsbesigheid en klas 14 in paragraaf (a)(ii)(aa) bedoel, ten opsigte waarvan die totale waarde van die versekeringsverbintenisse in verband met elke lewe wat kragtens ’n versekeringspolis verseker is, nie die voorgeskrewe maksimum bedrae oorskry nie; en in die geval van nielewensversekeringsbesigheid behalwe klas 14 in paragraaf (a)(ii)(aa) bedoel ten opsigte waarvan die totale waarde van die versekerings- verbintenisse kragtens ’n versekeringspolis nie die voorgeskrewe maksimum bedrae oorskry nie; ten opsigte waarvan die totale waarde van die versekeringsverbintenisse kragtens alle versekeringspolisse deur dieselfde versekeraar aan dieselfde polishouer uitgereik nie die maksimum bedrae kragtens paragrawe (b) en (c) voorgeskryf, oorskry nie; (b) (c) (d) ‘‘Minister’’ die Minister van Finansies; ‘‘nielewensversekeringsbesigheid’’ enige aktiwiteit met die doel om nielewens- versekeringsverbintenisse kragtens ’n nielewensversekeringspolis af te sluit of na te kom; 5 10 15 20 25 30 35 40 45 50 55 60 65 This gazette is also available free online at www.gpwonline.co.za - 18 Verify source ↗
No. 41388
AI-assisted research summary: This section defines key insurance terms, including microinsurance business, microinsurer, policyholder, premium, and related concepts.
18 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 18 (b) on or from a fixed determinable date or at the request of the policyholder, but excludes— (i) a deposit with an institution authorised under the Banks Act, 1990 (Act No. 94 of 1990), the Mutual Banks Act, 1993 (Act No. 124 of 1993), or the Co-operative Banks Act, 2007 (Act No. 40 of 2007); and (ii) participatory interests in a collective investment scheme registered in terms of the Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002), and includes a renewal or variation of that arrangement; ‘‘life insured’’ means the person to whom a death, disability, health or life event under an insurance policy relates, which person may be or may not be the policyholder; ‘‘Lloyd’s’’ means the association of persons generally known as Lloyd’s which is incorporated by the Lloyd’s Act of 1871 (34 Vict. c21), passed by the Parliament of the United Kingdom of Great Britain and Northern Ireland; ‘‘Lloyd’s underwriter’’ means an underwriting member or non-underwriting member of Lloyd’s; ‘‘microinsurance business’’ means insurance business— (a) conducted in respect of any of the following classes and sub-classes of insurance business set out in Schedule 2— (i) (ii) non-life insurance business, in the sub-class personal lines in— life insurance business, classes 1, 3, 4 or 9; and (aa) classes 1, 2, 3, 9, 11, 14 or 17; and (bb) class 10, but only to the extent that the insurance obligations (c) (d) (b) directly relate to the classes referred to in item (aa); and in the case of life insurance business and class 14 referred to in paragraph (a)(ii)(aa), in respect of which the aggregate value of the insurance obligations relating to each life insured under an insurance policy does not exceed the maximum amounts prescribed; and in the case of non-life insurance business other than class 14 referred to in paragraph (a)(ii)(aa), in respect of which the aggregate value of the insurance obligations under an insurance policy does not exceed the maximum amounts prescribed; and in respect of which the aggregate value of the insurance obligations under all insurance policies issued by the same insurer to the same policyholder does not exceed the maximum amounts prescribed under paragraphs (b) and (c); ‘‘microinsurer’’ means an insurer licensed to conduct only microinsurance business; ‘‘Minister’’ means the Minister of Finance; ‘‘non-life insurance business’’ means any activity conducted with the purpose of entering into or meeting insurance obligations under a non-life insurance policy; ‘‘non-life insurance policy’’ means any arrangement under which a person, in return for provision being made for the rendering of a premium to that person, undertakes to meet insurance obligations that fully or partially indemnifies loss on the happening of an unplanned or uncertain event, other than— (a) a life event; or (b) a death event or disability event not resulting from an accident, and includes a renewal or variation of that arrangement; ‘‘official website’’ means a website as defined in section 1 of the Electronic Communications and Transactions Act, 2002 (Act No. 25 of 2002), of the Prudential Authority; ‘‘operational risk’’, for the purposes of the definition of first party risks, means the risk of incurring losses as a result of inadequate or failed internal processes, people and systems, or from external events and excludes any risks associated with the insurance obligations of an insurer; ‘‘outsourcing’’ means an outsourcing arrangement as defined in section 1 of the Financial Sector Regulation Act; ‘‘person’’ has the meaning defined in the Financial Sector Regulation Act; ‘‘personal lines’’ means non-life insurance business where the policyholder is a natural person, acting otherwise than solely for the purposes of the person’s own business; and 5 10 15 20 25 30 35 40 45 50 55 60 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 19 Versekeringswet, 2017 Wet No. 18 van 2017 19 ‘‘nielewensversekeringspolis’’ enige reëling waarvolgens ’n persoon, in ruil daarvoor dat voorsiening gemaak word dat ’n premie aan daardie persoon gelewer word, onderneem om versekeringsverbintenisse te vervul wat verlies in die geval van ’n onbeplande of onsekere gebeurtenis, gedeeltelik vrywaar, behalwe— (a) (b) ’n lewensgebeurtenis; of ’n sterftegebeurtenis of ongeskiktheidsgebeurtenis na aanleiding van ’n ongeval, en ook ’n hernuwing of variasie van daardie reëling; ‘‘onderling verwante’’ soos in artikel 1 van die Maatskappywet omskryf; ‘‘ongeskiktheidsgebeurtenis’’ enige gebeurtenis wat— (a) die verlies van ’n ledemaat of sintuig of die gebruik daarvan deur ’n persoon (b) tot gevolg het; of tot gevolg het dat ’n persoon tot so ’n mate liggaamlik of verstandelik benadeel word, hetsy in die geheel of gedeeltelik, of tydelik of permanent, dat die persoon nie— (i) sy of haar werk of eie beroep, professie of bedryf kan voortsit nie; (ii) aan enige werk, beroep, professie of bedryf kan deelneem wat redelik geskik is vir daardie persoon nie, gegee, onder meer, sy of haar opvoeding, vaardighede, ervaring of ouderdom; of funksies wat vir normale lewensaktiwiteite nodig is, kan verrig nie; (iii) ‘‘ongeval’’ ’n eksterne, gewelddadige, onvoorsiene en sigbare gebeurtenis; ‘‘openbare maatskappy’’ dit wat in artikel 1 van die Maatskappywet daaraan toegeskryf is; ‘‘ouditeur’’ ’n ouditeur ingevolge die ‘‘Auditing Profession Act’’, geregistreer; ‘‘persoon’’ ‘‘person’’ soos in die ‘‘Financial Sector Regulation Act’’ omskryf; ‘‘persoonlike reekse’’ nielewensversekeringsbesigheid waar die polishouer ’n natuurlike persoon is, wat anders as slegs vir die doeleindes van die persoon se eie besigheid, handel; ‘‘polishouer’’— (a) die persoon met wie of waarmee ’n versekeraar ’n lewensversekeringspolis of nielewensversekeringspolis afgesluit het; of (b) die regsopvolger van die persoon in paragraaf (a) bedoel; ‘‘premie’’ enige regstreekse of onregstreekse, of gedeeltelik of ten volle gesubsidieerde, oorweging gegee of wat gegee sal word in ruil vir ’n verbintenis om aan versekeringsverbintenisse te voldoen; ‘‘regspersoon’’ ’n ‘‘juristic person’’ soos in die ‘‘Financial Sector Regulation Act’’ omskryf; ‘‘Regulasie’’ ’n ‘‘Regulation’’ soos in die ‘‘Financial Sector Regulation Act’’ omskryf; ‘‘reguleringsowerheid’’— (a) ’n staatsorgaan verantwoordelik vir die regulering van, afdwinging van enige wet; of ’n liggaam soortgelyk aan ’n staatsorgaan in paragraaf (a) bedoel wat ingevolge die wette van ’n ander land verantwoordelik is vir die regulering van, toesig oor of afdwinging van wetgewing; toesig oor of (b) ‘‘reguleringstap’’ die uitoefening van enige bevoegdheid of werksaamheid, of die doen van enige stap, deur die Voorsorgowerheid kragtens hierdie Wet of ’n ander Parlementswet; ‘‘selstruktuur’’ ’n reëling waarvolgens ’n persoon (seleienaar)— (a) ’n ekwiteitsdeelname in ’n bepaalde klas of tipe aandele van ’n versekeraar hou, welke ekwiteitsdeelname apart van ander klasse of tipes aandele geadministreer en voor rekenskap gegee word; (b) geregtig is op ’n aandeel van die winste en aanspreeklik is vir ’n aandeel van die verliese as gevolg van die ekwiteitsdeelname in paragraaf (a) bedoel, gekoppel aan winste of verliese deur die versekeringsbesigheid in paragraaf (c) bedoel, gegenereer; en (c) plaas of verseker versekeringsbesigheid by die versekeraar in paragraaf (a) bedoel, welke besigheid kontraktueel van die versekeringsbesigheid van daardie versekeraar opsygesit is vir solank die versekeraar nie gelikwideer word nie; ‘‘selversekeraar’’ selstrukture dryf; slegs versekeringsbesigheid deur ’n versekeraar wat 5 10 15 20 25 30 35 40 45 50 55 60 This gazette is also available free online at www.gpwonline.co.za - 20 Verify source ↗
No. 41388
AI-assisted research summary: This section defines terms used in the Insurance Act, including policyholder, premium, reinsurer, insurer, senior manager, and related regulatory terms.
20 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 20 ‘‘policyholder’’ means— (a) the person with whom or with which an insurer enters into a life insurance policy or a non-life insurance policy; or the successor in title of the person referred to in paragraph (a); (b) ‘‘premium’’ means any direct or indirect, or partially or fully subsidised, consideration given or to be given in return for an undertaking to meet insurance obligations; ‘‘prescribed’’ means prescribed by the Prudential Authority by Prudential Standard; ‘‘Prudential Authority’’ has the meaning defined in the Financial Sector Regulation Act; ‘‘Prudential Standard’’ means a standard prescribed by the Prudential Authority under section 63; ‘‘public company’’ has the meaning as defined in section 1 of the Companies Act; ‘‘Regulation’’ has the meaning defined in section 1 of the Financial Sector Regulation Act; ‘‘regulatory action’’ means the exercise of any power or function, or the taking of any action, by the Prudential Authority under this Act or another Act of Parliament; ‘‘regulatory authority’’ means— (a) an organ of state responsible for the regulation, supervision or enforcement of any law; or (b) a body similar to an organ of state referred to in paragraph (a) that is designated in terms of the laws of a foreign country as being responsible for the regulation, supervision or enforcement of legislation; ‘‘reinsurance business’’ means— (a) insurance business conducted by an insurer with another insurer, where the first-mentioned insures the risks associated with the insurance obligations of the last-mentioned insurer; or (b) business similar to the insurance business referred to in paragraph (a) conducted by a person that is authorised by a regulatory authority to perform business similar to insurance business under the laws of a country other than the Republic, with an insurer; ‘‘reinsurer’’ means a person licensed to conduct— (a) only reinsurance business; or (b) only reinsurance business and the business referred to in section 25(7)(b), in the reinsurance class and sub-classes set out in Schedule 2, and, unless specifically provided for otherwise in this Act, includes a branch of a foreign reinsurer so licensed; ‘‘related’’ has the meaning as defined in section 1 of the Companies Act; ‘‘rider benefit’’ means an additional insurance obligation under a life insurance policy or a non-life insurance policy, which obligation is ancillary to the primary insurance obligations assumed under that policy; ‘‘scheme’’, for the purposes of sections 29 and 52, means a compliance scheme referred to in section 31, a recapitalisation scheme referred to in section 39 or a recovery scheme referred to in section 42; ‘‘securities’’ has the meaning as defined in section 1(1) of the Financial Markets Act, 2012 (Act No. 19 of 2012); ‘‘senior manager’’ means— (a) the chief executive officer or the person who is in charge of an insurer or a controlling company; or (b) a person, other than a director or a head of a control function— (i) who makes or participates in making decisions that— (aa) affect the whole or a substantial part of the business of an insurer or a controlling company; or 5 10 15 20 25 30 35 40 45 50 (bb) have the capacity to significantly affect the financial standing of an 55 insurer or a controlling company; or (ii) who oversees the enforcement of policies and the implementation of strategies approved, or adopted, by the board of directors, and ‘‘senior management’’ has a corresponding meaning; This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 21 Versekeringswet, 2017 Wet No. 18 van 2017 21 ‘‘senior bestuurder’’— (a) die hoof- uitvoerende beampte of die persoon wat in beheer van ’n versekeraar (b) of ’n beheermaatskappy is; of ’n persoon, behalwe ’n direkteur of ’n hoof van ’n beheerfunksie— (i) wat besluite neem of deelneem aan die neem van besluite wat— (aa) die geheel of ’n wesenlike gedeelte van die besigheid van ’n 5 versekeraar of ’n beheermaatskappy raak; of (bb) die kapasiteit het om die finansiële stand van ’n versekeraar of ’n beheermaatskappy beduidend te raak; of (ii) wat oor die afdwinging van beleide en die inwerkingstelling van strategieë deur die direksie goedgekeur of deurgevoer, toesig hou, 10 en ‘‘senior bestuur’’ het ’n ooreenstemmende betekenis; ‘‘skema’’, by die toepassing van artikels 29 en 52, ’n voldoeningskema in artikel 31 bedoel, ’n herkapitaliseringskema in artikel 39 bedoel of ’n herstelskema in artikel 42 bedoel; ‘‘sleutelpersoon’’— ’n direkteur; (a) ’n senior bestuurder; (b) ’n hoof van ’n beheerfunksie; (c) ’n ouditeur in artikel 32 bedoel; (d) ’n trustee van ’n trust in artikel 41 bedoel; en (e) ’n verteenwoordiger en ’n adjunkverteenwoordiger van Lloyd’s of ’n tak van (f) ’n buitelandse herversekeraar in artikel 34 bedoel; ‘‘sterftegebeurtenis’’ die gebeurtenis waarby die lewe van ’n persoon of ’n ongeborene geëindig het; ‘‘strategie’’ by die toepassing van artikels 29 en 52 ’n herkapitaliseringstrategie in artikel 39 bedoel; ‘‘tak van ’n buitelandse herversekeraar’’ ’n bedryfsentiteit van ’n buitelandse herversekeraar wat nie ’n regsentiteit apart van die buitelandse herversekeraar is nie; ‘‘toegevoegde voordeel’’ ’n bykomende versekeringsverbintenis kragtens ’n lewensversekeringspolis of ’n nielewensversekeringspolis, welke verbintenis aanvullend is tot die primêre versekeringsverbintenisse wat kragtens daardie polis opgeneem is; ‘‘transformasie van die versekeringsektor’’ transformasie soos in die vooruitsig gestel deur die ‘‘Financial Sector Code for Broad-Based Black Economic Empowerment’’ uitgereik ingevolge artikel 9(1) van die ‘‘Broad-Based Black Empowerment Act’’, 2003 (Wet No. 53 van 2003); ‘‘Tribunaal’’ ’n ‘‘Tribunal’’ soos in die ‘‘Financial Sector Regulation Act’’ omskryf; ‘‘uitbesteding’’ ’n uitbestedingsreëling of ‘‘outsourcing arrangement’’ soos in artikel 1 van die ‘‘Financial Sector Regulation Act’’ omskryf; ‘‘vereistes vir geskiktheid en gepastheid’’— (a) in verband met ’n sleutelpersoon, persoonlike karaktereienskappe van inbegrip van ervaring, eerlikheid, kwalifikasies en kennis soos voorgeskryf kan word; en in verband met ’n beduidende eienaar, kenmerke van eerlikheid en integriteit en finansiële status soos voorgeskryf kan word; en bevoegdheid, met integriteit (b) ‘‘versekeraar’’ ’n persoon gelisensieer om kragtens hierdie Wet besigheid te dryf, en sluit in, tensy hierdie Wet spesifiek daarvoor voorsiening maak, Lloyd’s, ’n Lloyd’s-onderskrywer en ’n herversekeraar; ‘‘versekeraar in staatsbesit’’ ’n maatskappy in staatsbesit wat versekerings- besigheid dryf (’n openbare entiteit onderhewig aan die Wet op Openbare Finansiële Bestuur, 1999 (Wet No. 1 van 1999)); ‘‘versekerde lewe’’ die persoon op wie ’n sterfte-, ongeskiktheids-, gesondheids- of lewensgebeurtenis onder ’n versekeringspolis betrekking het, welke persoon die polishouer kan wees of nie kan wees nie; ‘‘versekeringsbesigheid’’ lewensversekeringsbesigheid of nielewensverseke- ringsbesigheid in die Republiek gedryf of beskou as in die Republiek gedryf te wees, en ook herversekeringsbesigheid; ‘‘versekeringsgroep’’ die groep entiteite kragtens artikel 10 deur die Voorsorg- owerheid aangewys; 15 20 25 30 35 40 45 50 55 60 This gazette is also available free online at www.gpwonline.co.za - 22 Verify source ↗
No. 41388
AI-assisted research summary: This section says the Act must be interpreted to support its objectives and principles, may be read with relevant international insurance standards where practicable, and can override conflicting legislation in some cases. It also requires consultation and concurrence with the Prudential Authority for certain other statutory powers or duties.
22 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 22 ‘‘significant owner’’ has the meaning as defined in section 1 of the Financial Sector Regulation Act; ‘‘state-owned insurer’’ means a state-owned company that conducts insurance business and is a public entity subject to the Public Finance Management Act, 1999 (Act No. 1 of 1999); ‘‘strategy’’, for the purposes of sections 29 and 52, means a recapitalisation strategy referred to in section 39; ‘‘third party risks’’ means, in respect of a cell captive insurer, risks other than first party risks; ‘‘this Act’’ includes any Prudential Standard or Regulation prescribed or made in terms of this Act; ‘‘transformation of the insurance sector’’ means transformation as envisaged by the Financial Sector Code for Broad-Based Black Economic Empowerment issued in terms of section 9(1) of the Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003); ‘‘Tribunal’’ has the meaning as defined in the Financial Sector Regulation Act; and ‘‘winding-up’’ has the meaning as defined in the Financial Sector Regulation Act. (2) In this Act, unless the context indicates otherwise, a word or expression derived from, or that is another grammatical form of, a word or expression defined in this Act has a corresponding meaning. General interpretation of Act 2. (1) This Act must be interpreted and applied in a manner that— (a) gives effect to the objective of this Act set out in section 3; and (b) facilitates compliance with the principles referred to in section 4. (2) When interpreting, applying or complying with this Act, a court, the Prudential Authority or any other person may, to the extent practicable and with due consideration to the South African context, consider relevant international standards relating to insurance regulation and supervision. (3) (a) If there is an inconsistency between any provision of this Act, other than a Prudential Standard or Regulation made under this Act, and a provision of any other legislation that— (i) provides for the regulation of insurance business; or (ii) affects or impedes the appropriate operation or implementation of a provision of this Act, the provision of this Act prevails, unless that other legislation by explicit reference, and not merely by reference to other legislation in general, provides that the other legislation applies in the event of a conflict. (b) Subject to paragraph (a), this Act applies concurrently with and in addition to the Companies Act and the Co-operatives Act unless specifically provided for otherwise in this Act. (c) Paragraph (a) does not apply— (i) (ii) (4) Despite any other law, if other legislation confers a power on or imposes a duty to the Financial Sector Regulation Act; and to the Financial Intelligence Centre Act, 2001 (Act No. 38 of 2001). upon another organ of state— (b) (a) in respect of a matter regulated under this Act or the regulation of insurance business; or that affects or impacts on the appropriate exercise of powers and the performance of duties under this Act by the Prudential Authority, that power or duty must be exercised or performed in consultation with the Prudential Authority, and any decision taken in accordance with that power or duty must be taken with the concurrence of the Prudential Authority, irrespective of when that other legislation was enacted, unless that other legislation by explicit reference, and not merely by reference to other legislation in general, provides that such concurrence is not required. (5) Any reference to ‘‘company’’, ‘‘holding company’’, ‘’non-profit company’’, ‘‘profit company’’, ‘‘public company’’, ‘‘state-owned company’’ or ‘‘subsidiary’’ means a reference to a company, holding company, non-profit company, profit company, public company, state-owned company or subsidiary, as the case may be, as defined in the Companies Act. 5 10 15 20 25 30 35 40 45 50 55 60 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 23 Versekeringswet, 2017 Wet No. 18 van 2017 23 ‘‘versekeringspolis’’ ’n lewensversekeringspolis of ’n nielewensversekerings- polis; ‘‘versekeringsverbintenisse’’ alle verbintenisse (behalwe die verbintenisse van die polishouer), hetsy daardie verbintenisse ’n verbintenis daarstel om een of meer somme geld te betaal, dienste te lewer of enige ander verbintenisse na te kom, kragtens of na aanleiding van versekeringspolisse en, ten opsigte van lewens- versekeringspolisse, ook enige waarborge en kenmerke van diskresionêre deel- name; ‘‘verwant’’ dit wat in artikel 1 van die Maatskappywet daaraan toegeskryf is; ‘‘voorgeskryf’’ deur die Voorsorgowerheid voorgeskryf volgens Voorsorg- standaarde; ‘‘Voorsorgowerheid’’ die ‘‘Prudential Authority’’ soos in die ‘‘Financial Sector Regulation Act’’ omskryf; ‘‘Voorsorgstandaard’’ ’n standaard ingevolge artikel 63 deur die Voorsorg- owerheid voorgeskryf; en ‘‘Wet op Finansiële Instellings (Beskerming van Fondse)’’ die Wet op Finansiële Instellings (Beskerming van Fondse), 2001 (Wet No. 28 van 2001). (2) In hierdie Wet, tensy anders uit die samehang blyk, het ’n woord of uitdrukking ontleen aan, of wat ’n grammatikale weergawe van ’n woord of uitdrukking in hierdie Wet omskryf, is, ’n ooreenstemmende betekenis. Algemene uitleg van Wet 2. (1) Hierdie Wet moet uitgelê en toegepas word op ’n wyse wat— (a) gevolg gee aan die oogmerk van hierdie Wet soos in artikel 3 uiteengesit; (b) voldoening aan die beginsels in artikel 4 bedoel, vergemaklik. (2) By uitleg van, toepassing van, of voldoening aan hierdie Wet, kan ’n hof, die Voorsorgowerheid of enige ander persoon, sover moontlik en met behoorlike inagneming van die Suid-Afrikaanse konteks, tersaaklike internasionale standaarde aangaande versekeringsregulering en -toesig oorweeg. (3) (a) Indien daar ’n teenstrydigheid is tussen enige bepaling van hierdie Wet, behalwe ’n Voorsorgstandaard of Regulasie kragtens hierdie Wet gemaak, en ’n bepaling van enige ander wetgewing wat— (i) vir die regulering van versekeringsbesigheid voorsiening maak; of (ii) die gepaste bedryf of inwerkingstelling van ’n bepaling van hierdie Wet raak of belemmer, geniet hierdie Wet se bepaling voorkeur, tensy daardie ander wetgewing deur uitdruklike verwysing, en nie bloot deur verwysing na ander wetgewing oor die algemeen nie, bepaal dat ander wetgewing in die geval van ’n geskil geld. (b) Behoudens paragraaf (a), is hierdie Wet van toepassing saam met en bo en behalwe die Maatskappywet en die ‘‘Co-operatives Act’’, tensy hierdie Wet uitdruklik anders bepaal. (c) Paragraaf (a) is nie van toepassing nie— (i) op die ‘‘Financial Sector Regulation Act’’; en (ii) op die Wet op die Finansiële Intelligensiesentrum, 2001 (Wet No. 38 van 2001). (4) Ondanks enige ander wet, indien ander wetgewing ’n bevoegdheid verleen aan of ’n plig oplê aan ’n ander staatsorgaan— (a) ten opsigte van ’n aangeleentheid kragtens hierdie Wet gereguleer of die regulering van versekeringsbesigheid; of (b) wat die gepaste uitoefening van bevoegdhede en die verrigting van pligte kragtens hierdie Wet deur die Voorsorgowerheid, raak of ’n invloed daarop het, moet daardie bevoegdheid of plig in oorleg met die Voorsorgowerheid uitgevoer of verrig word, en enige besluit wat ooreenkomstig daardie bevoegdheid of plig geneem word, moet met die instemming van die Voorsorgowerheid geneem word, ongeag van wanneer daardie ander wetgewing in werking gestel is, tensy daardie ander wetgewing deur uitdruklike verwysing, en nie bloot by verwysing na ander wetgewing oor die algemeen nie, bepaal dat sodanige instemming nie vereis word nie. ‘‘maatskappy met winsbejag’’, (5) Enige verwysing na ‘‘maatskappy’’, ‘‘beherende maatskappy’’, ‘‘maatskappy sonder winsbejag’’, ‘‘openbare maatskappy’’, ‘‘maatskappy in staatsbesit’’ of ‘‘filiaal’’ is ’n verwysing na ’n maatskappy, beherende maatskappy, maatskappy sonder winsbejag, maatskappy met winsbejag, openbare maatskappy, maatskappy in staatsbesit of filiaal, na gelang van die geval, soos in die Maatskappywet omskryf. 5 10 15 20 25 30 35 40 45 50 55 60 This gazette is also available free online at www.gpwonline.co.za - 24 Verify source ↗
No. 41388
AI-assisted research summary: This section says the Companies Act applies to certain insurers, controlling companies that are not public companies, and public companies.
24 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 24 (6) (a) The Companies Act applies to any insurer (other than a branch of a foreign reinsurer, Lloyd’s underwriter or Lloyd’s) or a controlling company that is not a public company, to the extent that the Companies Act— can apply to it; and applies to a public company. (i) (ii) (b) Paragraph (a) must not be interpreted as requiring an insurer or a controlling company that is not a public company to submit information to the Commission or Commissioner (as defined in the Companies Act) that a public company is required to submit to the Commission or Commissioner under the Companies Act. 5 (7) If, in terms of this Act, information or a document is required to be publicly 10 available, published, disclosed, produced or provided, it is sufficient if— (a) an electronic original or a reproduction thereof is published, disclosed, produced or provided by electronic communication in a manner and form such that the information or document can conveniently be printed by the recipient within a reasonable time and at a reasonable cost; or (b) a notice of the availability of that information or document, summarising its content and satisfying any prescribed requirements, is delivered to each intended recipient together with instructions for receiving the complete information or document. thereof, Objective of Act - 3 Verify source ↗
The objective of this Act is to, in a manner consistent with the Constitution of the
AI-assisted research summary: This section says the Act’s objective is to promote a fair, safe, and stable insurance market by creating a legal framework for prudential regulation and supervision of insurers and insurance groups.
3. The objective of this Act is to, in a manner consistent with the Constitution of the Republic of South Africa, 1996, promote the maintenance of a fair, safe and stable insurance market for the benefit and protection of policyholders, by establishing a legal framework for the prudential regulation and supervision of insurers and insurance groups that— (a) facilitates the monitoring and the preservation of the safety and soundness of insurers; increases access to insurance for all South Africans; (b) enhances the protection of policyholders and potential policyholders; (c) (d) promotes broad-based transformation of the insurance sector; and contributes to the stability of the financial system in general. (e) CHAPTER 2 CONDUCTING INSURANCE BUSINESS AND INSURANCE GROUP BUSINESS Part 1 General principles for conducting insurance business or insurance group business Principles
Part
Schedule 2 directly with a medical scheme registered under the Medical Schemes Act,
- 46 Verify source ↗
No. 41388
AI-assisted research summary: The Prudential Authority can change licence conditions and can suspend an insurer’s or controlling company’s licence. If a licence variation leaves an insurer unlicensed for a class or sub-class, the Authority must direct the insurer to make arrangements, and it must publish notice of licence-condition changes on the official website.
46 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 46 (10) The Prudential Authority may— (a) (b) impose different conditions in respect of different types or kinds of insurers or controlling companies, and different classes and sub-classes of insurance business; and impose conditions in a manner that seeks to facilitate the progressive or incremental compliance with this Act by a specific insurer to promote developmental, financial inclusion and transformation objectives. Variation of licence conditions 26. (1) The Prudential Authority may amend, delete, replace or vary any licensing conditions or impose other or additional licensing conditions— (a) on application by an insurer or controlling company; (b) when it is in the public interest, including transformation of the insurance sector; (c) when, in the case of an insurer, it is in the interests of the policyholders or potential policyholders of the insurer; (d) when, in the case of a controlling company, it is in the interests of maintaining the financial soundness of any insurer that is part of the insurance group; (e) when revoking a suspension of a licence; (f) (g) in the circumstances referred to in section 48; or in the case of an insurer, if an insurer has ceased to enter into insurance policies relating to a class or sub-class of insurance business, to the extent that its licence for that class or sub-class of insurance business is no longer justified. (2) An amendment, a deletion, a replacement or a variation of any licensing condition, or the imposition of other licensing conditions pursuant to subsection (1), may be made for a specific period subject to certain conditions being met. (3) If a variation of licence conditions results in an insurer no longer being licensed for a specific class or sub-class referred to in Schedule 2, the Prudential Authority must direct the insurer to make arrangements to the satisfaction of the Prudential Authority to— (a) discharge its obligations under all insurance policies entered into in respect of that class or sub-class before the variation; (b) ensure the orderly resolution of that insurance business of the insurer; or (c) transfer that insurance business to another insurer under section 50 by a specified date. (4) The Prudential Authority, on varying, amending or imposing other licensing conditions, must publish a notice thereof on the official website. Suspension of licence 27. (1) The Prudential Authority may suspend a licence of an insurer or controlling company in full or in part, if it appears to the Prudential Authority, on the basis of available information, that the insurer or controlling company— (a) no longer meets a licence condition under which it is licensed; (b) failed to comply with any other condition imposed under this Act or the Financial Sector Regulation Act; contravened or failed to comply with a provision of this Act or the Financial Sector Regulation Act; failed to comply with any court order, notice, directive, undertaking, request, determination, decision or exemption given under this Act or the Financial Sector Regulation Act; failed to make arrangements to the satisfaction of the Prudential Authority to address the non-compliance of a key person with the fit and proper requirements prescribed, or a responsibility, function or requirement imposed on that person under this Act; failed to give effect established under the Financial Sector Regulation Act; to a decision of the Financial Services Tribunal (c) (d) (e) (f) 5 10 15 20 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 47 Versekeringswet, 2017 Wet No. 18 van 2017 47 (10) Die Voorsorgowerheid kan— (a) verskillende voorwaardes oplê ten opsigte van verskillende tipes of soorte versekeraars of beheermaatskappye en verskillende klasse en subklasse van versekeringsbesigheid; en (b) voorwaardes oplê op so ’n wyse dat die progressiewe en toenemende nakoming van hierdie Wet deur ’n spesifieke versekeraar gefasiliteer word om oogmerke vir ontwikkeling, finansiële insluiting en transformasie te bevorder. Variasie van lisensievoorwaardes 26. (1) Die Voorsorgowerheid kan enige lisensiëringsvoorwaardes wysig, skrap, vervang of afwissel of ander of bykomende lisensiëringsvoorwaardes oplê— (a) by aansoek deur ’n versekeraar of beheermaatskappy; (b) wanneer dit in die openbare belang is, met inbegrip van transformasie van die versekeringsektor; (c) wanneer, in die geval van ’n versekeraar, dit in die belang is van die polishouers of potensiële polishouers van die versekeraar; (d) wanneer, in die geval van ’n beheermaatskappy, dit in die belang is van die handhawing van die finansiële gesondheid van enige versekeraar wat deel van die versekeringsgroep is; (e) wanneer ’n opskorting van ’n lisensie teruggetrek word; (f) (g) in die omstandighede in artikel 48 bedoel; of in die geval van ’n versekeraar, indien ’n versekeraar opgehou het om versekeringspolisse af te sluit ten opsigte van ’n klas of subklas van versekeringsbesigheid, tot so ’n mate dat sy lisensie vir daardie klas of subklas van versekering nie meer geregverdig is nie. (2) ’n Wysiging, ’n wisseling van enige ’n vervanging of ’n skrapping, lisensiëringsvoorwaarde, of die oplegging van ander lisensiëringsvoorwaardes ingevolge subartikel (1) kan behoudens voldoening aan sekere voorwaardes vir ’n bepaalde tydperk gedoen word. (3) Indien ’n variasie van lisensievoorwaardes tot gevolg het dat ’n versekeraar nie meer gelisensieer is vir ’n spesifieke klas of subklas in Bylae 2 bedoel nie, moet die Voorsorgowerheid die versekeraar opdrag gee om reëlings tot bevrediging van die Voorsorgowerheid te tref om— 5 10 15 20 25 30 (a) sy of haar verbintenisse kragtens alle versekeringspolisse af te los wat voor die variasie ten opsigte van daardie klas of subklas afgesluit is; (b) die ordelike ontbinding van daardie versekeringsbesigheid van die 35 versekeraar te verseker; of (c) daardie versekeringsbesigheid teen ’n bepaalde datum kragtens artikel 50 van hierdie Wet aan ’n ander versekeraar oor te dra. (4) Die Voorsorgowerheid, by die verandering, wysiging of oplegging van lisensiëringsvoorwaardes, moet ’n kennisgewing daarvan op die amptelike webwerf publiseer. 40 Opskorting van lisensie 27. (1) Die Voorsorgowerheid kan ’n lisensie van ’n versekeraar of beheermaatskappy ten volle of gedeeltelik opskort, indien dit vir die Voorsorgowerheid op grond van beskikbare inligting blyk dat die versekeraar of beheermaatskappy— (a) nie meer voldoen aan ’n lisensievoorwaarde waarkragtens dit gelisensieer is nie; (b) versuim het om aan enige ander voorwaarde kragtens hierdie Wet of die (c) ‘‘Financial Sector Regulation Act’’ opgelê, te voldoen; ’n bepaling van hierdie Wet of die ‘‘Financial Sector Regulation Act’’ oortree het of versuim het om daaraan te voldoen; (d) versuim het om aan enige hofbevel, kennisgewing, lasgewing, verbintenis, versoek, bepaling, besluit of vrywaring kragtens hierdie Wet of die ‘‘Financial Sector Regulation Act’’ gegee, te voldoen; (e) versuim het om reëlings tot die bevrediging van die Voorsorgowerheid te tref om ’n sleutelpersoon se nienakoming van voorgeskrewe vereistes vir geskiktheid en gepastheid, of ’n verantwoordelikheid, werksaamheid of vereiste kragtens hierdie Wet aan daardie persoon opgelê, te hanteer; versuim het om gevolg te gee aan ’n besluit van die Tribunaal op Finansiële Dienste kragtens die ‘‘Financial Sector Regulation Act’’ ingestel; (f) 45 50 55 60 This gazette is also available free online at www.gpwonline.co.za - 48 Verify source ↗
No. 41388
AI-assisted research summary: The Prudential Authority may suspend, revoke, or withdraw certain insurance licences, and must publish notices of suspension or revocation.
48 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 48 (g) (h) if it were then to apply for licensing under section 23, would not be able to meet the requirements referred to in that section; or failed to pay levies or fees payable in respect of the licence within 60 days after they became payable. (2) The Prudential Authority may, at any time, in addition to subsection (1), suspend the licence of a branch of a foreign reinsurer, Lloyd’s underwriter or Lloyd’s in full or in part, if it appears to the Prudential Authority, on the basis of available information, that the circumstances referred to in section 48 justify the suspension. (3) (a) The Prudential Authority may suspend a licence of an insurer or controlling company under subsection (1) or (2), subject to any condition necessary to achieve the objective of this Act that the Prudential Authority may determine. (b) The Prudential Authority may revoke any suspension under subsection (1) or (2), if satisfied that the insurer or controlling company has complied with all the conditions to which the suspension was made subject. (4) (a) The Prudential Authority must publish a notice of any suspension, the reasons therefor, and any terms attached thereto on the official website and in any other media that the Prudential Authority deems appropriate. (b) The suspension of a licence of an insurer or controlling company takes effect on the date specified in the notice referred to in paragraph (a). (5) (a) The Prudential Authority must publish a notice of any revocation of a suspension and the reasons therefor on the official website and in the same media that the suspension notice was published under subsection (4)(a). (b) The revocation of a suspension of a licence of an insurer or controlling company takes effect on the date specified in the notice referred to in paragraph (a). Consequences of suspension of licence 28. (1) From the date on which a suspension takes effect as referred to in section 27(4)(b), the Prudential Authority must take all measures necessary to safeguard the interests of policyholders of an insurer or an insurer that is part of an insurance group. (2) From the date on which a suspension takes effect, the insurer may not enter into new insurance policies in the class or sub-classes to which the suspension relates, but must continue to conduct the insurance business for which it was licensed in respect of insurance policies entered into before the effective date of the suspension. (3) The Prudential Authority, subsequent to suspending the licence of an insurer or a controlling company, may— (a) if the insurer or controlling company remedies the circumstances that informed the suspension to the satisfaction of the Prudential Authority within a reasonable period, revoke the suspension and, if appropriate, vary the licence conditions of the insurer or controlling company; or (b) withdraw the licence. Withdrawal of licence 5 10 15 20 25 30 35 40 29. (1) The Prudential Authority may withdraw a licence of an insurer or controlling company in full or in part, if it appears to the Prudential Authority, on the basis of available information, that— (a) an insurer or controlling company— (i) did not furnish all information which is material to an application for a 45 licence; (ii) made a material misrepresentation to members of connection with the insurance business carried on by it; the public in (iii) obtained the licence by making false statements or by any other irregular (iv) means; fails to submit any plan, scheme or strategy required under this Act, or fails to comply with any approved plan, scheme or strategy, or submits a plan, scheme or strategy that is inadequate; or 50 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 49 Versekeringswet, 2017 Wet No. 18 van 2017 49 (g) indien hy dan kragtens artikel 23 van hierdie Wet om lisensiëring sou aansoek doen, nie in staat sou wees om aan die vereistes in daardie artikel bedoel, te voldoen nie; of (h) versuim het om heffings of tariewe wat ten opsigte van die lisensie betaalbaar is, te betaal binne 60 dae nadat dit betaalbaar geword het. (2) Die Voorsorgowerheid kan, te eniger tyd, bykomend tot subartikel (1), die lisensie van ’n tak van ’n buitelandse herversekeraar, Lloyd’s-onderskrywer of Lloyd’s ten volle of gedeeltelik opskort, indien dit op grond van beskikbare inligting vir die Voorsorgowerheid blyk dat die omstandighede in artikel 48 bedoel die opskorting regverdig. (3) (a) Die Voorsorgowerheid kan ’n lisensie van ’n versekeraar of beheermaatskappy kragtens subartikel (1) of (2) opskort behoudens enige voorwaarde nodig om die oogmerke van die Wet te bereik wat die Voorsorgowerheid kan bepaal. (b) Die Voorsorgowerheid kan enige opskorting kragtens subartikels (1) of (2) intrek, indien die Voorsorgowerheid tevrede is dat die versekeraar of beheermaatskappy aan al die voorwaardes waaraan die opskorting onderwerp is, voldoen het. (4) (a) Die Voorsorgowerheid moet ’n kennisgewing van enige opskorting, die redes daarvoor en enige voorwaardes daaraan verbonde, op die amptelike webwerf en in enige ander media wat die Voorsorgowerheid gepas ag, publiseer. 5 10 15 (b) Die opskorting van ’n lisensie van ’n versekeraar of beheermaatskappy word van 20 krag op die datum in die kennisgewing in paragraaf (a) bedoel, vermeld. (5) (a) Die Voorsorgowerheid moet ’n kennisgewing van enige terugtrekking van ’n opskorting en die redes daarvoor op die amptelike webwerf en in dieselfde media waarin die opskortingskennisgewing kragtens subartikel (4)(a) gepubliseer is, publiseer. (b) Die terugtrekking van ’n opskorting van ’n lisensie van ’n versekeraar of beheermaatskappy word van krag op die datum vermeld in die kennisgewing in paragraaf (a) bedoel. 25 Gevolge van opskorting van lisensie 28. (1) Vanaf die datum waarop ’n opskorting, soos in artikel 27(4)(b) beoog, van krag word, moet die Voorsorgowerheid alle nodige stappe doen om die belange van die polishouers van ’n versekeraar wat deel van ’n versekeringsgroep is, te beskerm. (2) Vanaf die datum waarop ’n opskorting van krag word, mag die versekeraar nie nuwe versekeringspolisse in die klas of subklasse waarop die opskorting betrekking het, afsluit nie, maar moet die versekeraar voortgaan om die versekeringsbesigheid te dryf waarvoor die versekeraar gelisensieer is ten opsigte van versekeringspolisse wat voor die effektiewe datum van die opskorting afgesluit is. (3) Die Voorsorgowerheid, nadat die lisensie van ’n versekeraar of beheermaatskappy opgeskort is, kan— (a) indien die versekeraar of beheermaatskappy die omstandighede wat die opskorting gerig het, tot die bevrediging van die Voorsorgowerheid regstel, die opskorting terugtrek en, indien gepas, die lisensievoorwaardes van die versekeraar of beheermaatskappy opskort; of (b) die lisensie intrek. Intrekking van lisensie 29. (1) Die Voorsorgowerheid kan ’n versekeraar of beheermaatskappy se lisensie in die geheel of gedeeltelik intrek, indien dit vir die Voorsorgowerheid op grond van beskikbare inligting blyk dat— (a) ’n versekeraar of beheermaatskappy— (i) nie alle inligting wat op die aansoek om ’n lisensie betrekking het, (ii) verstrek het nie; ’n wesenlike wanvoorstelling aan lede van die publiek gemaak het in verband met die versekeringsbesigheid wat hy dryf; (iii) die lisensie verkry het deur valse verklarings te maak of op enige ander onreëlmatige wyse; (iv) versuim om ’n plan, skema of strategie ingevolge hierdie Wet vereis, in te dien, of versuim om aan enige goedgekeurde plan, skema of strategie te voldoen, of ’n plan, skema of strategie inhandig wat ontoereikend is; of 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za - 50 Verify source ↗
No. 41388
AI-assisted research summary: An insurer and related controlling persons must notify the Prudential Authority in writing when certain events occur, and the Prudential Authority can restrict conduct before licence withdrawal.
50 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 50 (v) subsequent to the suspension of its licence under section 27, fails to remedy the circumstances that informed the suspension to the satisfac- tion of the Prudential Authority within a reasonable period; (b) in the case of an insurer, the insurer— (i) notified the Prudential Authority of its intention to cease to enter into any 5 (ii) new insurance policies; failed to commence with conducting insurance business within a period of 12 months after being licensed to do so; (iii) ceased to enter into insurance policies to an extent which does not justify its continued licensing as an insurer; or (iv) no longer conducts insurance business as a result of a transfer or transaction contemplated in section 50; (c) in the case of a branch of a foreign reinsurer, Lloyd’s underwriter or Lloyd’s, the circumstances referred to in section 48 justify the withdrawal; or (d) any proceedings referred to under Chapter 9 have been finalised. (2) An insurer or a person in control of the affairs of the insurer must notify the Prudential Authority in writing of the occurrence of a circumstance contemplated in subsection (1)(b)(ii) to (iv) or (d). (3) A controlling company or a person in control of the affairs of the controlling company must notify the Prudential Authority in writing of the occurrence of a circumstance contemplated in subsection (1)(d). (4) (a) Prior to the withdrawal of a licence of an insurer, in the circumstances referred to under subsection (1) other than subsection (1)(b)(i), the Prudential Authority must direct the insurer— 10 15 20 (i) not to dispose of or encumber any assets or liabilities, or incur any additional 25 liability, without the approval of the Prudential Authority; (ii) not to enter into any new insurance policies from a date specified; and (iii) to make arrangements to the satisfaction of the Prudential Authority to— (aa) discharge its obligations under all insurance policies entered into before the date referred to in subparagraph (ii); (bb) ensure the orderly resolution of the business of the insurer; or (cc) transfer that insurance business to another insurer under section 50 by a specified date. (b) If an insurer fails to comply with a directive under paragraph (a), the Prudential Authority may initiate any proceedings under Chapter 9. (5) (a) The Prudential Authority must publish a notice of withdrawal of the licence and the reasons therefor on the official website and in any other media that the Prudential Authority deems appropriate. (b) The withdrawal of a licence of an insurer or controlling company takes effect on the date specified in the notice referred to in paragraph (a). CHAPTER 5 GOVERNANCE Part 1 Insurers and insurance groups Governance framework 30. (1) An insurer and a controlling company must adopt, implement and document an effective governance framework that provides for the prudent management and oversight of— (a) in the case of an insurer, its insurance business, and which adequately protects the interests of its policyholders; or in the case of a controlling company, the insurance group’s business (including the business of all persons that are part of the insurance group), and which adequately protects the interests of policyholders of the insurers that are part of the insurance group. (b) 30 35 40 45 50 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 51 Versekeringswet, 2017 Wet No. 18 van 2017 51 (v) nadat die versekeraar se lisensie kragtens artikel 27 opgeskort is, versuim om die omstandighede reg te stel wat die opskorting gerig het, binne ’n redelike tydperk tot die bevrediging van die Voorsorgowerheid reg te stel; (b) in die geval van ’n versekeraar, die versekeraar— (i) die Voorsorgowerheid in kennis gestel het van sy voorneme om op te hou 5 om enige nuwe versekeringspolisse af te sluit; (ii) versuim het om te begin om versekeringsbesigheid te dryf binne ’n tydperk van 12 maande nadat die versekeraar gelisensieer is om dit te dryf; (iii) opgehou het om versekeringspolisse af te sluit tot so ’n mate dat sy voortgesette lisensiëring as ’n versekeraar nie geregverdig is nie; of (iv) nie meer versekeringsbesigheid dryf nie as gevolg van ’n oordrag of transaksie in artikel 50 beoog; (c) in die geval van ’n tak van ’n buitelandse herversekeraar, Lloyd’s-onder- skrywer of Lloyd’s, die omstandighede in artikel 48 die intrekking regverdig; of (d) enige verrigtinge kragtens Hoofstuk 9 afgehandel is. (2) ’n Versekeraar of ’n persoon in beheer van die sake van die versekeraar moet die Voorsorgowerheid skriftelik in kennis stel van die voorkoms van ’n omstandigheid in subartikel (1)(b)(ii) tot (iv) of (d) beoog. (3) ’n Beheermaatskappy of ’n persoon in beheer van die sake van die beheer- maatskappy moet die Voorsorgowerheid skriftelik in kennis stel van die voorkoms van ’n omstandigheid in subartikel (1)(d) beoog. (4) (a) Voordat ’n versekeraar se lisensie ingetrek word, in die omstandighede kragtens subartikel (1) bedoel, behalwe subartikel (1)(b)(i), moet die Voorsorgowerheid die versekeraar opdrag gee— (i) om nie oor enige bates of verpligtinge te beskik of dit te beswaar, of ’n bykomende verpligting op te neem sonder die goedkeuring van die Voorsorg- owerheid nie; (ii) om vanaf ’n vermelde datum geen nuwe versekeringspolisse af te sluit nie; en (iii) om reëlings tot die bevrediging van die Voorsorgowerheid te tref om— (aa) sy verbintenisse kragtens alle versekeringspolisse afgesluit voor die datum 10 15 20 25 30 bedoel in subparagraaf (ii), af te los; (bb) die besigheid van die versekeraar ordelik te ontbind; of (cc) daardie versekeringsbesigheid kragtens artikel 50 van hierdie Wet teen ’n 35 bepaalde datum na ’n ander versekeraar oor te dra. (b) Indien ’n versekeraar versuim om ’n lasgewing kragtens paragraaf (a) na te kom, kan die Voorsorgowerheid enige verrigtinge kragtens Hoofstuk 9 van hierdie Wet, instel. (5) (a) Die Voorsorgowerheid moet ’n kennisgewing van intrekking van die lisensie en redes daarvoor op die amptelike webblad en enige ander media wat die Voorsorgowerheid gepas ag, publiseer. (b) Die intrekking van ’n lisensie van ’n versekeraar of beheermaatskappy word van krag op die datum vermeld in die kennisgewing in paragraaf (a) bedoel. HOOFSTUK 5 BEHEER Deel 1 Versekeraars en versekeringsgroepe Beheerraamwerk 30. (1) ’n Versekeraar en ’n beheermaatskappy moet ’n doeltreffende beheer- raamwerk aanneem, in werking stel en dokumenteer wat voorsiening maak vir die verstandelike bestuur van en toesig oor— (a) (b) in die geval van ’n versekeraar, sy versekeringsbesigheid, en wat die belange van sy polishouers voldoende beskerm; of in die geval van ’n beheermaatskappy, die versekeringsgroep se besigheid inbegrip van die besigheid van alle persone wat deel van die (met versekeringsgroep is), en wat die belange van polishouers van die versekeraars wat deel van die versekeringsgroep is, voldoende beskerm. 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za
Part
part of the insurance group.
- 52 Verify source ↗
No. 41388
AI-assisted research summary: The governance framework for an insurer must be proportionate, include effective corporate governance, risk management and internal controls, and address prescribed matters. The board or representative remains responsible for compliance even if duties are delegated or outsourced. The Prudential Authority may also set governance rules.
52 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 (2) The governance framework must— 52 (a) be proportionate to the nature, scale and complexity of the insurance business and the risks of the insurer, or the business and risks of the insurance group, as the case may be; include effective systems of corporate governance, risk management and internal controls; and address, and provide for, the matters prescribed. (b) (c) (3) (a) The board of directors of an insurer (other than a branch of a foreign reinsurer, a Lloyd’s underwriter or Lloyd’s) is responsible for meeting the requirements imposed on an insurer under this Act, irrespective of the delegation or outsourcing of any responsibilities. (b) The board of directors of a controlling company is responsible for meeting the requirements imposed on a controlling company under this Act, irrespective of the delegation or outsourcing of any responsibilities. (c) The representative of a branch of a foreign reinsurer is responsible for meeting the requirements imposed on it and a branch of a foreign reinsurer under this Act, irrespective of the delegation or outsourcing of any responsibilities. (d) The representative of Lloyd’s is responsible for meeting the requirements imposed on it, Lloyd’s underwriters and Lloyd’s under this Act, irrespective of the delegation or outsourcing of any responsibilities. (4) The Prudential Authority may prescribe governance principles and requirements relating to— (a) (b) (c) (d) (e) in the case of an insurer, the achievement and maintenance of the stated commitments in the plan referred to in section 22(1)(c)(iii) and Item 6 of Schedule 3; in the case of an insurer (other than a branch of a foreign reinsurer or Lloyd’s) and a controlling company— (i) the composition and governance of the board of directors, including requirements relating to independence; the roles and responsibilities of the board of directors (in addition to those provided for in the Companies Act); the duties of directors; and the structure of the board of directors, including the committees that must be established; (ii) (iii) (iv) risk management, including in respect of— (i) a risk management system; (ii) a risk management strategy; (iii) a risk management policy; and (iv) own risk and solvency assessments; internal control, including in respect of an internal control system; control functions, including in respect of— (i) (ii) (iii) required control functions; requirements for control functions; and roles, responsibilities and functions of control functions and heads of control functions; and (f) outsourcing by an insurer or a controlling company, including in respect of— (i) an outsourcing policy, and the matters that must be included and (ii) (iii) (iv) (v) addressed in that policy; the principles and requirements with which any outsourcing, and remuneration paid in respect of outsourcing, must comply; the requirements with which an insurer or a controlling company, and any person that will perform an outsourced function or activity, must comply; the matters that must be included or addressed, or may not be included in an outsourcing contract; the functions or activities that may not be outsourced, or may only be outsourced after the Prudential Authority has been notified of the proposed outsourcing, and the information that must accompany that notification; 5 10 15 20 25 30 35 40 45 50 55 (vii) matters relating to any outsourcing of which the Prudential Authority 60 must be informed; and limitations on or requirements for sub-outsourcing. (viii) This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 53 Versekeringswet, 2017 Wet No. 18 van 2017 53 (2) Die beheerraamwerk moet— (a) in verhouding wees met die aard, skaal en kompleksiteit van die versekeringsbesigheid en die risiko’s van die versekeraar, of die besigheid en risiko’s van die versekeringsgroep, na gelang van die geval; (b) doeltreffende stelsels van korporatiewe beheer, risikobestuur en interne 5 beheermiddels insluit; en (c) die voorgeskrewe aangeleenthede hanteer en daarvoor voorsiening maak. (3) (a) Die direksie van ’n versekeraar (behalwe ’n tak van ’n buitelandse herversekeraar, ’n Lloyd’s-onderskrywer of Lloyd’s) is verantwoordelik vir voldoening aan die vereistes kragtens hierdie Wet aan ’n versekeraar opgelê, ongeag die delegering of uitbesteding van enige verantwoordelikhede. (b) Die direksie van ’n beheermaatskappy is verantwoordelik vir voldoening aan die vereistes kragtens hierdie Wet aan ’n beheermaatskappy opgelê, ongeag die delegering of uitbesteding van enige verantwoordelikhede. (c) Die verteenwoordiger van ’n tak van ’n buitelandse herversekeraar is verantwoordelik vir voldoening aan die vereistes kragtens hierdie Wet aan die verteenwoordiger en ’n buitelandse herversekeraar opgelê, ongeag die delegering of uitbesteding van enige verantwoordelikhede. (d) Die verteenwoordiger van Lloyd’s is verantwoordelik vir voldoening aan vereistes aan die verteenwoordiger, Lloyd’s-onderskrywers en Lloyd’s opgelê kragtens hierdie Wet, ongeag die delegering of uitbesteding van enige verantwoordelikhede. (a) (4) Die Voorsorgowerheid kan beheerbeginsels en -vereistes voorskryf aangaande— in die geval van ’n versekeraar, die bereiking en handhawing van die gestelde verbintenisse in die plan in artikel 22(1)(c)(iii) en Item 6 van Bylae 3 bedoel; in die geval van ’n versekeraar (behalwe ’n tak van ’n buitelandse herversekeraar of Lloyd’s) en ’n beheermaatskappy— (i) die samestelling en beheer van die direksie, met inbegrip van vereistes (b) aangaande onafhanklikheid; (ii) die rolle en verantwoordelikhede van die direksie (benewens die rolle waarvoor die Maatskappywet voorsiening maak); (iii) die pligte van direkteure; en (iv) die struktuur van die direksie, met inbegrip van die komitees wat ingestel moet word; (c) ’n risikobestuurstelsel; ’n risikobestuurstrategie; ’n risikobestuurbeleid; en risikobestuur, ook ten opsigte van— (i) (ii) (iii) (iv) eie risiko- en solvensieassesserings; interne beheer, ook ten opsigte van ’n interne beheerstelsel; (d) (e) beheerfunksies, ook ten opsigte van— (i) vereiste beheerfunksies; (ii) vereistes vir beheerfunksies; en (iii) rolle, verantwoordelikhede en werksaamhede van beheerfunksies en hoofde van beheerfunksies; en (f) uitbesteding deur ’n versekeraar of ’n beheermaatskappy, ook ten opsigte van— (i) ’n uitbestedingsbeleid, en die aangeleenthede wat in daardie beleid ingesluit en hanteer moet word; (ii) die beginsels en vereistes waaraan enige uitbesteding, en vergoeding ten opsigte van uitbesteding betaal, moet voldoen; (iii) die vereistes waaraan ’n versekeraar of ’n beheermaatskappy en enige persoon wat ’n uitbestede werksaamheid of aktiwiteit gaan verrig, moet voldoen; (iv) die aangeleenthede wat ingesluit of hanteer moet word, of nie in ’n uitbestedingskontrak ingesluit kan word nie; (v) die werksaamhede of aktiwiteite wat nie uitbestee kan word nie, of slegs uitbestee kan word nadat die Voorsorgowerheid van die voorgestelde uitbesteding verwittig is en die inligting wat daardie kennisgewing moet vergesel; (vii) aangeleenthede uitbesteding waarvan aangaande enige die Voorsorgowerheid verwittig moet word; en (viii) beperkings op of vereistes vir subuitbesteding. 10 15 20 25 30 35 40 45 50 55 60 This gazette is also available free online at www.gpwonline.co.za
Part
Schedule 3;
- 54 Verify source ↗
No. 41388
AI-assisted research summary: Insurers and controlling companies must have procedures to detect non-compliance and, if they fail to comply with section 30, must notify the Prudential Authority, submit a compliance scheme, and report progress monthly. The Prudential Authority may impose interim restrictions and other corrective directions.
54 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 Failure to maintain governance framework 54 31. (1) An insurer or a controlling company must have procedures in place to identify any non-compliance with section 30, and in the case of a branch of a foreign reinsurer and Lloyd’s, also with Part 2 of this Chapter and Part 2 of Chapter 6. (2) (a) An insurer or a controlling company that fails to comply with section 30 must, 5 without delay— (i) notify the Prudential Authority of the failure and the reasons for the failure; (ii) within 30 days after the notification referred to in subparagraph (i), submit a compliance scheme to the Prudential Authority for approval that sets out the measures that the insurer or controlling company will implement within a four- month period to remedy any non-compliance. (b) The Prudential Authority may, if appropriate, extend the four-month period referred to in paragraph (a)(ii) by two months and, in exceptional circumstances, extend that period by an appropriate period of time, taking into account all relevant factors. (3) An insurer or a controlling company whose compliance scheme was approved as contemplated in subsection (2) must submit a monthly progress report to the Prudential Authority that sets out the measures taken and the progress made with implementing the compliance scheme. (4) The Prudential Authority may, until a compliance scheme is implemented— (a) (b) (c) (d) restrict or prohibit certain activities or transactions of the insurer or insurance group; or in the case of an insurer (other than a branch of a foreign reinsurer, a Lloyd’s underwriter or Lloyd’s) and a controlling company, impose conditions or limitations on the insurer, controlling company, or board of directors of the insurer or controlling company; in the case of a branch of a foreign reinsurer, impose conditions or limitations on the branch or the representative of the branch; or in respect of Lloyd’s, impose conditions or limitations on Lloyd’s under- writers, Lloyd’s or the representative of Lloyd’s. (5) The Prudential Authority may— (a) (b) in the case of an insurer (other than a branch of a foreign reinsurer, a Lloyd’s underwriter or Lloyd’s) and a controlling company, require the board of directors or senior management, or both, of the insurer or controlling company to demonstrate that the governance framework requirements provided for in this Part and any other prescribed requirements are being complied with; or in the case of a branch of a foreign reinsurer or Lloyd’s, require the representative of a branch of a foreign reinsurer or Lloyd’s to demonstrate that the governance framework requirements provided for in this Part and any other prescribed requirements are being complied with. (6) If the Prudential Authority reasonably believes that the effectiveness of the governance framework of an insurer or controlling company or a part thereof requires further investigation, the Prudential Authority may direct the insurer or controlling company to secure an independent review of the governance framework by a person to be approved by the Prudential Authority at the cost of the insurer or controlling company. (7) The Prudential Authority may— (a) (b) in the case of an insurer (other than a branch of a foreign reinsurer, a Lloyd’s underwriter or Lloyd’s) and a controlling company, direct an insurer, a controlling company, or the board of directors or other key persons of the insurer or controlling company, to strengthen or effect improvements to the insurer or controlling company’s governance framework or a part thereof; in the case of a branch of a foreign reinsurer or Lloyd’s, direct a branch of a foreign reinsurer, Lloyd’s or the representative or other key person of a branch of a foreign reinsurer or Lloyd’s, to strengthen or effect improvements to the governance framework or a part thereof of the branch of a foreign reinsurer or Lloyd’s. (8) This section does not limit any other action that the Prudential Authority may take in terms of this Act. 10 15 20 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 55 Versuim om beheerraamwerk te onderhou 55 31. (1) ’n Versekeraar of ’n beheermaatskappy moet prosedures in plek hê om enige nienakoming van artikel 30 te identifiseer, en in die geval van ’n tak van ’n buitelandse herversekeraar en Lloyd’s, ook van Deel 2 van hierdie Hoofstuk en Deel 2 van Hoofstuk 6. (2) (a) ’n Versekeraar of ’n beheermaatskappy wat versuim om aan artikel 30 te voldoen moet, sonder versuim— (i) die Voorsorgowerheid in kennis stel van die versuim en die redes vir die versuim; (ii) binne 30 dae na die kennisgewing in subparagraaf (i) bedoel, ’n voldoening- skema aan die Voorsorgowerheid voorlê vir goedkeuring wat die maatreëls uiteensit wat die versekeraar of beheermaatskappy in ’n tydperk van vier maande in werking sal stel om enige nienakoming reg te stel. (b) Die Voorsorgowerheid kan, indien gepas, die tydperk van vier maande in paragraaf (a)(ii) bedoel met twee maande verleng en, onder uitsonderlike omstandig- hede, daardie tydperk met ’n gepaste tydperk verleng, met inagneming van alle tersaaklike faktore. (3) ’n Versekeraar of ’n beheermaatskappy wie se voldoeningskema goedgekeur is soos in subartikel ’n maandelikse vorderingsverslag aan die Voorsorgowerheid voorlê wat die maatreëls wat geneem is en die vordering wat gemaak is met die voldoeningskema, uiteensit. (2) beoog, moet (4) Die Voorsorgowerheid kan, totdat ’n voldoeningskema in werking gestel is— (a) (b) (c) (d) sekere aktiwiteite of transaksies van die versekeraar of versekeringsgroep beperk of belet; of in die geval van ’n versekeraar (behalwe ’n tak van ’n buitelandse herversekeraar, ’n Lloyd’s-onderskrywer of Lloyd’s) en ’n beheermaatskappy, voorwaardes of beperkings aan die versekeraar, beheermaatskappy of direksie van die versekeraar of beheermaatskappy, oplê; in die geval van ’n tak van ’n buitelandse herversekeraar, voorwaardes of beperkings aan die tak of die verteenwoordiger van die tak oplê; of ten opsigte van Lloyd’s, voorwaardes of beperkings aan Lloyd’s- onderskrywers, Lloyd’s of die verteenwoordiger van Lloyd’s oplê. (5) Die Voorsorgowerheid kan— (b) (a) in die geval van ’n versekeraar (behalwe ’n tak van ’n buitelandse herversekeraar, ’n Lloyd’s-onderskrywer of Lloyd’s) en ’n beheermaatskappy, vereis dat die direksie of senior bestuur of albei, van die versekeraar of beheermaatskappy demonstreer dat aan die beheerraamwerkvereistes waarvoor hierdie Deel voorsiening maak, voldoen word; of in die geval van ’n tak van ’n buitelandse herversekeraar of Lloyd’s, vereis dat die verteenwoordiger van ’n tak van ’n buitelandse herversekeraar of Lloyd’s demonstreer dat die beheerraamwerkvereistes waarvoor hierdie Deel voorsiening maak en enige ander voorgeskrewe vereistes, aan voldoen word. (6) Indien die Voorsorgowerheid redelikerwys van mening is dat die doeltreffendheid van die beheerraamwerk van ’n versekeraar of beheermaatskappy of ’n deel daarvan verdere ondersoek vereis, kan die Voorsorgowerheid die versekeraar of beheer- maatskappy opdrag gee om ’n onafhanklike oorsig van die beheerraamwerk deur ’n persoon wat deur die Voorsorgowerheid goedgekeur staan te word, op onkoste van die versekeraar of beheermaatskappy, te verkry. (7) Die Voorsorgowerheid kan— (a) (b) in die geval van ’n versekeraar (behalwe ’n tak van ’n buitelandse herversekeraar, ’n Lloyd’s-onderskrywer of Lloyd’s) en ’n beheermaatskappy, ’n versekeraar, of die direksie of ander sleutelpersone van die versekeraar of beheermaatskappy, opdrag gee om die versekeraar of beheermaatskappy se beheerraamwerk of ’n gedeelte daarvan te versterk of te verbeter; in die geval van ’n tak van ’n buitelandse herversekeraar of Lloyd’s, ’n tak van ’n buitelandse herversekeraar, Lloyd’s of die verteenwoordiger of ander sleutelpersoon van ’n tak van ’n buitelandse herversekeraar, opdrag gee om die beheerraamwerk, of ’n gedeelte daarvan, van die tak van ’n buitelandse herversekeraar of Lloyd’s te versterk of verbeteringe daaraan aan te bring. (8) Hierdie artikel beperk nie enige ander stappe wat die Voorsorgowerheid ingevolge hierdie Wet kan doen nie. 5 10 15 20 25 30 35 40 45 50 55 60 This gazette is also available free online at www.gpwonline.co.za - 56 Verify source ↗
No. 41388
AI-assisted research summary: Insurers and controlling companies must keep an auditor and appoint an audit committee; branch representatives of foreign reinsurers and Lloyd’s must appoint an auditor for specified information and statements.
56 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 Auditor 56 32. (1) (a) An insurer (other than a branch of a foreign reinsurer, Lloyd’s underwriter or Lloyd’s) and a controlling company must at all times have an auditor appointed by the insurer and the controlling company, respectively. (b) Sections 90 to 93, inclusive, of the Companies Act apply to an insurer referred to 5 in paragraph (a) and a controlling company. (2) The representative of a branch of a foreign reinsurer and Lloyd’s must appoint an auditor to audit the information and statements identified in section 47. (3) (a) If an insurer, a controlling company or a representative of a branch of a foreign reinsurer or Lloyd’s for any reason fails to appoint an auditor under subsection (1) or (2), the Prudential Authority may— (i) despite the Companies Act, appoint an auditor for that insurer or controlling company; appoint an auditor for the purpose set out in subsection (2). (ii) (b) A person or firm appointed under paragraph (a) is deemed to have been appointed by that insurer, controlling company or representative of a branch of a foreign reinsurer or Lloyd’s in accordance with this Act. (4) The auditor must, in addition to the requirements of the Financial Sector Regulation Act, without delay, submit a detailed written report to the Prudential Authority, and also to the board of directors in the case of an insurer referred to in subsection (1) and a controlling company, on any matter of which the auditor becomes aware in the performance of the auditor’s functions and duties referred to in subsection (6), and which, in the opinion of the auditor— (a) (b) in respect of the business of the insurer or insurance group, may be contrary to the governance framework requirements of this Act, or amounts to inadequate maintenance of internal controls; in respect of a significant owner of the insurer or controlling company, constitutes a contravention of any section of this Act. (5) In the case of a branch of a foreign reinsurer or Lloyd’s, the auditor must, in addition to subsection (4), without delay, submit a detailed written report to the Prudential Authority on any matter of which the auditor becomes aware in the performance of the auditor’s functions and duties referred to in subsection (6), and which, in the opinion of the auditor, is likely to prejudice the ability of the branch of a foreign reinsurer or Lloyd’s to hold the required security in the trust. (6) The auditor of an insurer or a controlling company must— (a) audit the financial soundness of an insurer (other than a branch of a foreign reinsurer, Lloyd’s underwriter or Lloyd’s) or controlling company in the manner prescribed; (b) audit the security held in a trust referred to in section 41 in the manner prescribed; (c) perform the duties and functions assigned to the auditor of an insurer or a controlling company under this Act, the Companies Act and the Auditing Profession Act; and (d) perform any other duties or functions prescribed. Audit committee 33. (1) Section 94 of the Companies Act, except section 94(2), applies to an insurer (other than a branch of a foreign reinsurer, Lloyd’s underwriter or Lloyd’s) and a controlling company. (2) An insurer (other than a branch of a foreign reinsurer, Lloyd’s underwriter or Lloyd’s) and a controlling company must appoint an audit committee. (3) The audit committee must— (a) be structured to ensure that it has the necessary authority, independence, resources, expertise and access to all relevant employees and information to perform its functions; and in addition to the functions referred to in section 94(7) of the Companies Act, perform the functions as may be prescribed. (b) 10 15 20 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 57 Ouditeur 57 32. (1) (a) ’n Versekeraar (behalwe ’n tak van ’n buitelandse herversekeraar, Lloyd’s-onderskrywer of Lloyd’s) en ’n beheermaatskappy moet te alle tye ’n ouditeur hê wat onderskeidelik deur die versekeraar en die beheermaatskappy aangestel is. (b) Artikels 90 tot 93, ingesluit, van die Maatskappywet is van toepassing op ’n 5 versekeraar in paragraaf (a) bedoel en ’n beheermaatskappy. (2) Die verteenwoordiger van ’n tak van ’n buitelandse herversekeraar en Lloyd’s moet ’n ouditeur aanstel om die inligting en state in artikel 47 geïdentifiseer, te ouditeer. (3) (a) Indien ’n versekeraar, ’n beheermaatskappy, of ’n verteenwoordiger van ’n tak van ’n buitelandse herversekeraar of Lloyd’s om enige rede versuim om ’n ouditeur kragtens subartikel (1) of (2) aan te stel, kan die Voorsorgowerheid— (i) ondanks die Maatskappywet, beheermaatskappy aanstel; ’n ouditeur aanstel vir die doel in subartikel (2) uiteengesit. (ii) (b) ’n Persoon of firma kragtens paragraaf (a) aangestel, word geag ooreenkomstig hierdie Wet deur daardie versekeraar, beheermaatskappy, of verteenwoordiger van ’n tak van ’n buitelandse herversekeraar of Lloyd’s aangestel te wees. ’n ouditeur vir daardie versekeraar of (4) Die ouditeur moet, bo en behalwe die vereistes van die ‘‘Financial Sector Regulation Act’’, sonder oponthoud, ’n uitvoerige skriftelike verslag voorlê aan die Voorsorgowerheid en ook die direksie in die geval van ’n versekeraar in subartikel (1) bedoel en ’n beheermaatskappy, oor enige aangeleentheid waarvan die ouditeur bewus word in die verrigting van die ouditeur se werksaamhede en pligte in subartikel (6) bedoel en wat, na mening van die ouditeur— (b) (a) ten opsigte van die besigheid van die versekeraar of versekeringsgroep, teenstrydig met die beheerraamwerkvereistes van hierdie Wet kan wees, of op onvoldoende handhawing van interne beheermaatreëls neerkom; ten opsigte van ’n beduidende eienaar van die versekeraar of beheermaatskappy, ’n verbreking van enige artikel van hierdie Wet daarstel. (5) In die geval van ’n tak van ’n buitelandse herversekeraar of Lloyd’s, moet die ouditeur bykomend tot subartikel (4), sonder oponthoud, ’n uitvoerige skriftelike verslag aan die Voorsorgowerheid voorlê oor enige aangeleentheid waarvan die ouditeur bewus word in die verrigting van die ouditeur se werksaamhede en pligte in subartikel (6) bedoel en wat, na mening van die ouditeur, die tak van ’n buitelandse herversekeraar of Lloyd’s om die vereiste effekte in die trust te hou, waarskynlik kan benadeel. (6) Die ouditeur van ’n versekeraar of ’n beheermaatskappy moet— (a) die finansiële gesondheid van ’n versekeraar (behalwe ’n tak van ’n buitelandse herversekeraar, Lloyd’s-onderskrywer of Lloyd’s) of beheer- maatskappy op die voorgeskrewe wyse ouditeer; (b) die effekte in ’n trust bedoel in artikel 41 gehou, op die voorgeskrewe wyse ouditeer; (c) die pligte en werksaamhede kragtens hierdie Wet, die Maatskappywet en die ‘‘Auditing Profession Act’’, aan die ouditeur van ’n versekeraar of ’n beheermaatskappy toegewys, verrig; en (d) enige ander voorgeskrewe pligte of werksaamhede verrig. Ouditkomitee 10 15 20 25 30 35 40 45 33. (1) Artikel 94 van die Maatskappywet, behalwe artikel 94(2), is van toepassing op ’n versekeraar (behalwe ’n tak van ’n buitelandse herversekeraar, Lloyd’s-onderskrywer of Lloyd’s) en ’n beheermaatskappy. (2) ’n Versekeraar (behalwe ’n tak van ’n buitelandse herversekeraar, Lloyd’s- onderskrywer of Lloyd’s) en ’n beheermaatskappy moet ’n ouditkomitee aanstel. 50 (3) Die ouditkomitee moet— (a) gestruktureer wees om te verseker dat dit die nodige gesag, onafhanklikheid, hulpbronne, kundigheid en toegang tot alle tersaaklike werknemers en inligting het om sy werksaamhede te verrig; en (b) bykomend tot die werksaamhede in artikel 94(7) van die Maatskappywet 55 bedoel, die werksaamhede wat voorgeskryf kan word, verrig. This gazette is also available free online at www.gpwonline.co.za - 58 Verify source ↗
No. 41388
AI-assisted research summary: Certain foreign reinsurers and Lloyd’s must have a representative office in the Republic and keep a representative and deputy representative in place.
58 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 58 Part 2 Additional governance requirements for representative offices of branches of foreign reinsurers and Lloyd’s Representative office 34. (1) A foreign reinsurer that is licensed to conduct reinsurance business or Lloyd’s 5 must establish a representative office in the Republic. (2) (a) A foreign reinsurer or Lloyd’s must appoint, and at all times have, a representative and a deputy representative. (b) A representative and a deputy representative must be natural persons permanently residing in the Republic for as long as he or she remains a representative and a deputy representative. (3) The representative must— (a) ensure compliance— (i) with South African legislation, including this Act and any other legislation regulating the conduct of insurers; and (ii) by the trustee or trustees with South African legislation, including this Act and the trust deed referred to in section 41; and (b) notify the Prudential Authority in writing of any non-compliance in terms of paragraph (a). (4) The Prudential Authority may prescribe requirements relating to the roles, responsibilities and functions of a representative and deputy representative in addition to those specified in subsection (3). CHAPTER 6 FINANCIAL SOUNDNESS Part 1 Insurers and insurance groups Application of Part
Part
part thereof, including the—
- 64 Verify source ↗
No. 41388
AI-assisted research summary: The Prudential Authority can direct how a capital add-on is applied, and insurers or controlling companies have notification, capital-maintenance, and dividend restrictions. Certain share and capital actions need the Authority’s approval.
64 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 64 (3) The Prudential Authority, if an insurer’s minimum capital requirement exceeds its solvency capital requirement, may direct the capital add-on to be applied to the minimum capital requirement of the insurer. (4) The Prudential Authority must review any capital add-on imposed at least once a year and remove the capital add-on when the Prudential Authority is satisfied that an insurer or controlling company has remedied the deficiencies that led to its imposition. Capital and securities 38. (1) An insurer or controlling company that is a profit company, or an insurer that is a co-operative whose constitution provides for membership shares to be issued to members, may not, without the approval of the Prudential Authority— (a) authorise any additional shares, convert shares from one type to another type of shares or repurchase any of its shares; issue securities other than shares; reduce its share capital; (b) (c) (d) allow a subsidiary to directly or indirectly acquire shares in it; or (e) conclude a transaction contemplated in section 45 (loans or other financial assistance to directors) of the Companies Act. (2) The Prudential Authority may prescribe the circumstances in which approval under subsection (1) is not required. Failure to maintain financially sound condition 39. (1) (a) An insurer or a controlling company must have procedures in place to identify deteriorating financial soundness that may cause a failure to comply with section 36. (b) An insurer or a controlling company may not declare or pay a dividend to its shareholders or make a surplus or profit distribution to its members— if it fails or is likely to fail to comply with section 36; or if the declaration, payment or distribution would result in it failing or being likely to fail to comply with section 36. (i) (ii) 5 10 15 20 25 (2) (a) An insurer or a controlling company that fails to— (i) hold assets or invest those assets in accordance with any prescribed require- 30 ments, limitations or conditions; or (ii) provide for its technical provisions or other liabilities in accordance with prescribed requirements, must, without delay, notify the Prudential Authority of the failure, the reasons for the failure and the measures to be implemented to comply with the requirements. 35 (b) The Prudential Authority may take any measures the Prudential Authority considers necessary to address the failure referred to in paragraph (a). (3) An insurer must, without delay, notify the Prudential Authority of its failure to meet or of any risk that it may in the following three months fail to meet its minimum capital requirement or solvency capital requirement. (4) A controlling company must, without delay, notify the Prudential Authority of its failure to meet or of any risk that it may in the following three months fail to meet its group solvency capital requirement. (5) (a) If an insurer gives notice to the Prudential Authority under subsection (3) that it is failing or may in the following three months fail to meet its minimum capital requirement, or if the Prudential Authority reasonably believes that an insurer is failing or may in the following three months fail to meet its minimum capital requirement, the Prudential Authority may— (i) direct the insurer to, within one month, submit a short-term recapitalisation scheme to the Prudential Authority for approval that sets out the measures that the insurer will implement within a period not exceeding three months after the submission of the short-term recapitalisation scheme to— (aa) restore its eligible own funds to at least the level of its minimum capital 40 45 50 requirement; or This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 65 Versekeringswet, 2017 Wet No. 18 van 2017 65 (3) Die Voorsorgowerheid kan, indien ’n versekeraar se minimumkapitaalvereiste sy solvensiekapitaalvereiste oorskry, gelas dat die kapitaaltoevoeging op die minimum- kapitaalvereiste van die versekeraar toegepas word. (4) Die Voorsorgowerheid moet enige opgelegde kapitaaltoevoeging ten minste een keer per jaar hersien en die kapitaaltoevoeging verwyder wanneer die Voorsorgowerheid tevrede is dat ’n versekeraar of beheermaatskappy die tekortkominge wat tot die oplegging gelei het, reggestel het. Kapitaal en effekte 38. (1) ’n Versekeraar of beheermaatskappy wat ’n maatskappy met winsbejag is, of ’n versekeraar wat ’n koöperasie is waarvan die grondwet voorsiening maak dat lidmaatskapaandele aan lede uitgereik word, kan nie, sonder die goedkeuring van die Voorsorgowerheid— (a) enige bykomende aandele magtig, aandele van een tipe na ’n ander oordra of enige van sy aandele terugkoop nie; (b) effekte behalwe aandele uitreik nie; (c) (d) (e) sy aandelekapitaal verminder nie; ’n filiaal toelaat om regstreeks of onregstreeks aandele daarin te verkry nie; of ’n transaksie in artikel 45 (lenings behalwe finansiële bystand aan direkteure) van die Maatskappywet bedoel, sluit nie. 5 10 15 (2) Die Voorsorgowerheid kan die omstandighede waaronder goedkeuring kragtens 20 subartikel (1) nie vereis word nie, voorskryf. Versuim om finansieel gesonde toestand te onderhou 39. (1) (a) ’n Versekeraar of ’n beheermaatskappy moet prosedures in plek hê om verswakkende finansiële gesondheid, wat ’n versuim om aan artikel 36 te voldoen, kan veroorsaak, te identifiseer. (b) ’n Versekeraar of ’n beheermaatskappy kan nie ’n dividend verklaar of betaal aan sy aandeelhouers of ’n surplus- of winsverspreiding aan sy lede maak nie— (i) (ii) indien hy versuim of waarskynlik gaan versuim om aan artikel 36 te voldoen; of indien die verklaring, betaling of verspreiding daartoe sal lei dat hy versuim of waarskynlik gaan versuim om aan artikel 36 te voldoen. (2) (a) ’n Versekeraar of ’n beheermaatskappy wat versuim om— (i) bates te hou of daardie bates te belê ooreenkomstig enige voorgeskrewe vereistes, beperkings of voorwaardes; of (ii) voorsiening te maak vir sy tegniese bepalings of ander verpligtinge ooreen- komstig voorgeskrewe vereistes, moet, sonder versuim, die Voorsorgowerheid van die versuim, die redes vir die versuim en die maatreëls wat in werking gestel gaan word om aan die vereistes te voldoen, in kennis stel. (b) Die Voorsorgowerheid kan enige stappe doen wat die Voorsorgowerheid nodig ag om die versuim in paragraaf (a) bedoel, te hanteer. (3) ’n Versekeraar moet, sonder oponthoud, die Voorsorgowerheid in kennis stel van sy versuim om te voldoen aan, of van enige risiko dat hy in die volgende drie maande kan versuim om te voldoen aan, sy minimumkapitaalvereiste of solvensiekapitaal- vereiste. (4) ’n Beheermaatskappy moet, sonder oponthoud, die Voorsorgowerheid in kennis stel van sy versuim om te voldoen aan, of van enige risiko dat hy in die volgende drie maande kan versuim om te voldoen aan, sy groepsolvensiekapitaalvereiste. (5) (a) Indien ’n versekeraar kragtens subartikel (3) aan die Voorsorgowerheid kennis gee dat hy versuim of in die volgende drie maande kan versuim om aan sy minimumkapitaalvereiste voldoen, of indien die Voorsorgowerheid redelikerwys van mening is dat ’n versekeraar versuim of in die volgende drie maande kan versuim om aan sy minimumkapitaalvereiste te voldoen, kan die Voorsorgowerheid— (i) die versekeraar opdrag gee om, binne ’n maand, ’n korttermynherkapitalisering- skema vir goedkeuring aan die Voorsorgowerheid voor te lê wat die maatreëls uiteensit wat die versekeraar binne ’n tydperk van hoogstens drie maande na die voorlegging van die korttermynherkapitaliseringskema in werking sal stel om— (aa) sy kwalifiserende eie fondse te herstel tot ten minste die vlak van sy eie minimumkapitaalvereiste; of 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za - 66 Verify source ↗
No. 41388
AI-assisted research summary: Approved recapitalisation schemes or strategies must be reported on monthly, and the Prudential Authority may restrict or prohibit activities or transactions until capital and financial soundness requirements are restored.
66 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 66 (bb) reduce its risk profile to ensure compliance with its minimum capital requirement; or take any action referred to in Chapter 4 or Chapter 9. (ii) (b) The Prudential Authority may, if appropriate, extend the three-month period referred to in paragraph (a)(i) by three months and, in exceptional circumstances, extend that period by an appropriate period of time, taking into account all relevant factors. (6) (a) If an insurer gives notice to the Prudential Authority under subsection (3) that it is failing or may in the following three months fail to meet its solvency capital requirement, or if the Prudential Authority reasonably believes that an insurer is failing or may in the following three months fail to meet its solvency capital requirement, the Prudential Authority may direct the insurer to, within the period agreed with the submit a Prudential Authority, which period may not exceed two months, recapitalisation strategy to the Prudential Authority for approval that sets out the measures that the insurer will implement within a period agreed with the Prudential Authority, which period may not exceed six months, to— (i) (ii) re-establish the level of eligible own funds necessary for complying with the solvency capital requirement; or reduce its risk profile to ensure compliance with the solvency capital requirement. (b) The Prudential Authority may, if appropriate, extend the six-month period referred to in paragraph (a) by three months and, in exceptional circumstances, extend that period by an appropriate period of time, taking into account all relevant factors. (7) (a) If a controlling company gives notice to the Prudential Authority under subsection (4) that it is failing or may in the following three months fail to meet its group solvency capital requirement, or if the Prudential Authority reasonably believes that a controlling company is failing or may in the following three months fail to meet its group solvency capital requirement, the Prudential Authority may direct the controlling company to, within the period agreed with the Prudential Authority, which period may not exceed two months, submit a recapitalisation strategy to the Prudential Authority for approval that sets out the measures that the controlling company will implement within a period agreed with the Prudential Authority, which period may not exceed six months, to— (i) re-establish the level of eligible own funds necessary for complying with its group solvency capital requirement; or reduce its risk profile to ensure compliance with its group solvency capital requirement. (ii) (b) The Prudential Authority may, if appropriate, extend the six-month period referred to in paragraph (a) by three months and, in exceptional circumstances, extend that period by an appropriate period of time, taking into account all relevant factors. (8) An insurer or a controlling company whose short-term recapitalisation scheme or recapitalisation strategy was approved must submit a monthly progress report to the Prudential Authority that sets out the measures taken and the progress made with implementing the scheme or strategy. (9) The Prudential Authority may restrict or prohibit certain activities or transactions of the insurer, controlling company or insurance group until the capital requirements are complied with and the financial soundness of the insurer or insurance group has been restored. (10) A short-term recapitalisation scheme or recapitalisation strategy must include the matters as prescribed. 5 10 15 20 25 30 35 40 45 (11) This section does not limit any other action that the Prudential Authority may 50 take in terms of this Act. This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 67 Versekeringswet, 2017 Wet No. 18 van 2017 67 (bb) sy risikoprofiel te verminder om voldoening aan sy minimum- kapitaalvereiste te verseker; of enige stappe in Hoofstuk 4 of Hoofstuk 9 bedoel, doen. (ii) (b) Die Voorsorgowerheid kan, indien gepas, die tydperk van drie maande in paragraaf (a)(i) bedoel met drie maande verleng en, onder buitengewone omstandig- hede, daardie tydperk met ’n gepaste tydperk verleng, met inagneming van alle tersaaklike faktore. (6) (a) Indien ’n versekeraar kragtens subartikel (3) aan die Voorsorgowerheid kennis gee dat hy versuim of in die volgende drie maande kan versuim om aan sy solvensiekapitaalvereiste te voldoen, of as die Voorsorgowerheid redelikerwys van mening is dat die versekeraar versuim of in die volgende drie maande kan versuim om aan sy solvensiekapitaalvereiste te voldoen, kan die Voorsorgowerheid die versekeraar opdrag gee om, binne die tydperk waarop met die Voorsorgowerheid ooreengekom is, welke tydperk nie langer as twee maande mag wees nie, ’n herkapitaliseringstrategie vir goedkeuring aan die Voorsorgowerheid voorlê wat die maatreëls uiteensit wat die versekeraar in werking gaan stel binne ’n tydperk waarop met die Voorsorgowerheid ooreengekom is, welke tydperk nie meer as ses maande kan wees nie, om— (i) die vlak van kwalifiserende eie fondse nodig om aan die solvensie- (ii) kapitaalvereiste te voldoen, te herstel; of sy risikoprofiel te verminder om voldoening aan die solvensiekapitaalvereiste te verseker. (b) Die Voorsorgowerheid kan, indien gepas, die tydperk van ses maande in paragraaf (a) bedoel, met drie maande verleng en, onder buitengewone omstandighede, daardie tydperk met ’n gepaste tydperk verleng, met inagneming van alle tersaaklike faktore. (7) (a) Indien ’n beheermaatskappy kragtens subartikel (4) aan die Voorsorgowerheid kennis gee dat hy versuim of in die volgende drie maande kan versuim om aan sy groepsolvensiekapitaalvereiste te voldoen, of as die Voorsorgowerheid redelikerwys van mening is dat ’n beheermaatskappy versuim of in die volgende drie maande kan versuim om aan sy groepsolvensiekapitaalvereiste te voldoen, kan die Voorsorg- owerheid die beheermaatskappy opdrag gee om, binne die tydperk met die Voorsorgowerheid ooreengekom, welke tydperk nie meer as twee maande mag wees nie, ’n herkapitaliseringstrategie vir goedkeuring aan die Voorsorgowerheid voor te lê wat die maatreëls uiteensit wat die beheermaatskappy in werking sal stel binne ’n tydperk waarop met die Voorsorgowerheid ooreengekom is, welke tydperk nie ses maande mag oorskry nie, om— (i) die vlak van kwalifiserende eie fondse nodig vir voldoening aan sy groep- (ii) solvenskapitaalvereiste, te herstel; of sy risikoprofiel te verminder om voldoening aan sy groepsolvensiekapitaal- vereiste te verseker. (b) Die Voorsorgowerheid kan, indien van toepassing, die tydperk van ses maande in paragraaf (a) bedoel, met drie maande verleng en, onder buitengewone omstandighede, daardie tydperk met ’n gepaste tydperk verleng, met inagneming van alle tersaaklike faktore. (8) ’n Versekeraar of ’n beheermaatskappy wie se korttermynherkapitaliseringskema of herkapitaliseringstrategie goedgekeur is, moet ’n maandelikse vorderingsverslag aan die Voorsorgowerheid voorlê wat die maatreëls ingestel en die vordering met die inwerkingstelling van die skema of strategie, uiteensit. (9) Die Voorsorgowerheid kan sekere aktiwiteite of transaksies van die versekeraar, beheermaatskappy of versekeringsgroep beperk of belet totdat die kapitaalvereistes aan voldoen is en die finansiële gesondheid van die versekeraar of versekeringsgroep herstel is. (10) ’n Korttermynherkapitaliseringskema of herkapitaliseringstrategie moet die voorgeskrewe aangeleenthede insluit. (11) Hierdie artikel beperk nie enige ander stappe wat die Voorsorgowerheid ingevolge hierdie Wet kan doen nie. 5 10 15 20 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za - 68 Verify source ↗
No. 41388
AI-assisted research summary: Foreign reinsurer branches and Lloyd’s underwriters must hold prescribed security for their South African insurance business, and certain trusts must be established and approved by the Prudential Authority.
68 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 68 Part 2 Security requirements for branches of foreign reinsurers and Lloyd’s Security to be held in trust 40. (1) A branch of a foreign reinsurer must provide and maintain security in respect of its insurance business conducted in the Republic in the form of assets valued in accordance with prescribed requirements that are at least equal to the technical provisions for the insurance business calculated in accordance with this Act. (2) Lloyd’s underwriters must provide and maintain security in respect of the insurance business conducted in the Republic in the form of assets valued in accordance with prescribed requirements that are at least equal to the aggregate of the technical provisions for the insurance business of each Lloyd’s underwriter in the Republic calculated in accordance with this Act. 5 10 (3) The security referred to in subsections (1) and (2) must— (a) comply with any matters prescribed; (b) be held in trust and be provided to the trustees of the trust referred to in section 15 41; and (c) be reported on by the representative of the branch of a foreign insurer or Lloyd’s in accordance with Chapter 7. (4) The Prudential Authority may prescribe matters referred to in section 36(6) in respect of a branch of a foreign reinsurer, Lloyd’s underwriters, Lloyd’s or the security referred to in subsection (1) or (2). 20 (5) Section 36(3), (4) and (5) apply with the necessary changes to a branch of a foreign insurer, Lloyd’s underwriter, Lloyd’s and any security referred to in subsection (1) or (2). (6) For the purposes of this section ‘‘insurance business conducted in the Republic’’ 25 means insurance business relating to any— (a) (b) risk of a policyholder residing or located in the Republic irrespective of where the risk is located and includes any placement of insurance business through a person that provides binder functions referred to in section 49A(1) of the Long-term Insurance Act, 1998, or section 48A(1) of the Short-term Insurance Act, 1998, on behalf of Lloyd’s or a Lloyd’s underwriter; and risk emanating in the Republic irrespective of where the policyholder resides or is located. Trust and trustees 41. (1) A branch of a foreign reinsurer and Lloyd’s must establish a trust in the Republic in accordance with the Trust Property Control Act, 1988 (Act No. 57 of 1988). (2) The trust and the trust deed must comply with any prescribed requirements and be approved by the Prudential Authority. (3) (a) The Prudential Authority may, at any time, direct that the trust deed be varied or substituted, or that an additional trustee must be appointed, if the Prudential Authority reasonably believes that it is in the public interest, the interests of policyholders or potential policyholders of the insurer, or in the interest of maintaining the security referred to in section 40. (b) The trust deed may not be amended or terminated by any person without the prior approval of the Prudential Authority. (4) The Prudential Authority may prescribe requirements relating to the— (a) (b) roles, responsibilities and functions of trustees; and roles, responsibilities and functions of the representative of a branch of a foreign reinsurer or Lloyd’s in respect of the trust. (5) Despite the Trust Property Control Act, 1988, if any trustee of a trust fails to comply with any requirements of this Act or any provision of the trust deed, the Prudential Authority, on notice to the branch of a foreign reinsurer or Lloyd’s and the trustee, may exercise the powers of that trustee under the trust deed. 30 35 40 45 50 This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 69 69 Deel 2 Effektevereistes vir takke van buitelandse herversekeraars en Lloyd’s Effekte moet in trust gehou word 40. (1) ’n Tak van ’n buitelandse herversekeraar moet effekte voorsien en handhaaf ten opsigte van sy versekeringsbesigheid in die Republiek gedoen in die vorm van bates gewaardeer ooreenkomstig die voorgeskrewe vereistes wat ten minste gelyk is aan die tegniese bepalings ooreenkomstig hierdie Wet vir die versekeringsbesigheid bereken. (2) Lloyd’s-onderskrywers moet effekte voorsien en handhaaf ten opsigte van die versekeringsbesigheid in die Republiek gedoen in die vorm van bates gewaardeer ooreenkomstig voorgeskrewe vereistes wat ten minste gelyk is aan die totaal van die tegniese bepalings vir die versekeringsbesigheid van elke Lloyd’s-onderskrywer in die Republiek ooreenkomstig hierdie Wet bereken. (3) Die effekte in subartikels (1) en (2) bedoel moet— (a) aan enige voorgeskrewe aangeleenthede voldoen; (b) in trust gehou word en aan die trustees van die trust in artikel 41 bedoel, voorsien word; en (c) deur die verteenwoordiger van die tak van ’n buitelandse herversekeraar of Lloyd’s ooreenkomstig Hoofstuk 7 oor verslag gedoen word. (4) Die Voorsorgowerheid kan aangeleenthede bedoel in artikel 36(6) voorskryf ten opsigte van ’n tak van ’n buitelandse herversekeraar, Lloyd’s-onderskrywers, Lloyd’s of die effekte in subartikel (1) of (2) bedoel. (5) Artikel 36(3), (4) en (5) is met die nodige veranderinge van toepassing op ’n tak van ’n buitelandse herversekeraar, Lloyd’s-onderskrywer, Lloyd’s en enige effekte in subartikel (1) of (2) bedoel. 5 10 15 20 (6) By toepassing van hierdie artikel beteken ‘‘versekeringsbesigheid in die 25 Republiek gedryf’’ versekeringsbesigheid met betrekking tot enige— (a) (b) risiko van ’n polishouer wat in die Republiek woon of geleë is, ongeag van waar die risiko geleë is en ook enige plasing van versekeringsbesigheid deur ’n persoon wat verbindingsfunksies bedoel in artikel 49A(1) van die Wet op Langtermynversekering, 1998, of artikel 48A(1) van die Wet op Korttermyn- versekering, 1998, namens Lloyd’s of ’n Lloyds-onderskrywer verskaf; en risiko wat woonagtig of geleë is. in die Republiek ontstaan, ongeag van waar die polishouer Trust en trustees 41. (1) ’n Tak van ’n buitelandse herversekeraar en Lloyd’s moet ’n trust in die Republiek instel ooreenkomstig die Wet op die Beheer op Trustgoed, 1988 (Wet No. 57 van 1988). (2) Die trust en die trustakte moet aan enige voorgeskrewe vereistes voldoen en deur die Voorsorgowerheid goedgekeur word. (3) (a) Die Voorsorgowerheid kan, te eniger tyd, gelas dat die trustakte verander of vervang kan word, of dat ’n bykomende trustee aangestel moet word, indien die Voorsorgowerheid redelikerwys van mening is dat dit in die openbare belang is, in die belang van polishouers of potensiële polishouers van die versekeraar is, of in die belang van die onderhoud van die effekte bedoel in artikel 40 is. 30 35 40 (b) Die trustakte mag nie sonder die goedkeuring van die Voorsorgowerheid deur 45 enigiemand verander of beëindig word nie. (4) Die Voorsorgowerheid kan vereistes voorskryf aangaande die— (a) (b) rolle, verantwoordelikhede en werksaamhede van trustees; en rolle, verantwoordelikhede en werksaamhede van die verteenwoordiger van ’n tak van ’n buitelandse herversekeraar of Lloyd’s ten opsigte van die trust. (5) Ondanks die Wet op die Beheer op Trustgoed, 1988, indien enige trustee of ’n trust versuim om aan enige van die vereistes van hierdie Wet of enige bepaling van die trustakte te voldoen, kan die Voorsorgowerheid by kennisgewing aan die tak van ’n buitelandse herversekeraar of Lloyd’s en die trustee, die bevoegdhede van daardie trustee kragtens die trustakte uitoefen. 50 55 This gazette is also available free online at www.gpwonline.co.za
Part
Part A of Chapter 5 or section 155 of the Companies Act; or
- 78 Verify source ↗
No. 41388
AI-assisted research summary: The Prudential Authority may refuse certain material acquisitions or disposals, may appoint a statutory manager, and may take resolution action in specified cases. Transactions done in contravention of the section are void.
78 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 78 (3) The Prudential Authority may refuse to approve a material acquisition or disposal if the Prudential Authority reasonably believes that such an acquisition or disposal will impede— (a) (b) in the case of an insurer, the financial soundness of the insurer; in the case of a controlling company— (i) the financial soundness of an insurer that is part of the insurance group; or the ability of the Prudential Authority to determine— (aa) how the different types of business of the insurance group are (ii) conducted; (bb) the risks of the insurance group and each person that is part of that (cc) insurance group; or the manner in which the governance framework is organised and conducted for the insurance group and each person that is part of that insurance group. (4) Despite any other law, any acquisition or disposal that is effected in contravention of this section is void. CHAPTER 9 RESOLUTION Application of Chapter 5 10 15 20 52. (1) (a) This Chapter does not apply to a branch of a foreign reinsurer, a Lloyd’s underwriter or Lloyd’s. (b) Despite subsection (a), section 59 applies to a trust referred to in section 41. (2) The Prudential Authority, in addition to any other action that the Prudential Authority may take under this Act, may act in accordance with this Chapter— 25 (a) (b) (c) if an insurer or controlling company fails to— submit any plan, scheme or strategy required under this Act; or (i) (ii) comply with any plan, scheme or strategy approved under this Act; if the Prudential Authority reasonably believes that a plan, scheme or strategy submitted under this Act is inadequate; or in the circumstances referred to in section 29(4)(b). (3) The Prudential Authority, in addition to any other action that the Prudential Authority may take under this Act, may act in accordance with section 59 in respect of a trust referred to in section 41— (a) (b) (c) if a branch of a foreign reinsurer or Lloyd’s fails to— (i) provide or maintain the security referred to in section 41 in the trust; (ii) submit any plan or scheme required under this Act; or (iii) comply with any plan or scheme approved under this Act; if the Prudential Authority reasonably believes that a plan or scheme submitted under this Act is inadequate; or in the circumstances referred to in section 29(4)(b). 30 35 40 Part 1 Statutory management Appointment of statutory manager 53. (1) Despite any other law, the Prudential Authority may appoint a statutory manager in terms of section 5A of the Financial Institutions (Protection of Funds) Act in respect of any insurer or controlling company. (2) If a statutory manager is appointed under this section, no business rescue or winding-up proceedings referred to in this Chapter may be commenced in respect of an insurer or a controlling company until the appointment of the statutory manager is terminated. 45 50 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 79 Versekeringswet, 2017 Wet No. 18 van 2017 79 (3) Die Voorsorgowerheid kan weier om ’n materiële verkryging of beskikking goed te keur indien die Voorsorgowerheid redelikerwys van mening is dat sodanige verkryging of beskikking— (a) (b) in die geval van ’n versekeraar, die finansiële gesondheid van die versekeraar; in die geval van ’n beheermaatskappy— (i) die finansiële gesondheid van ’n versekeraar wat deel van die versekeringsgroep is; of (ii) die vermoë van die Voorsorgowerheid om te bepaal— (aa) hoe die verskillende tipes besigheid van die versekeringsgroep gedryf word; (bb) die risiko’s van die versekeringsgroep en elke persoon wat deel van daardie versekeringsgroep is; of (cc) die wyse waarop die beheerraamwerk georganiseer en gedoen word vir die versekeringsgroep en elke persoon wat deel van daardie versekeringsgroep is, sal belemmer. (4) Ondanks enige ander wet, is enige verkryging of beskikking wat in stryd met hierdie artikel gedoen is, nietig. HOOFSTUK 9 ONTBINDING 5 10 15 20 Toepassing van Hoofstuk 52. (1) (a) Hierdie Hoofstuk is nie van toepassing op ’n tak van ’n buitelandse herversekeraar, ’n Lloyd’s-onderskrywer of Lloyd’s nie. (b) Ondanks subartikel (a), is artikel 59 van toepassing op ’n trust in artikel 41 bedoel. (2) Die Voorsorgowerheid, bykomend tot enige ander stap wat die Voorsorgowerheid 25 (a) kragtens hierdie Wet kan doen, kan ooreenkomstig hierdie Hoofstuk handel— indien ’n versekeraar of beheermaatskappy versuim om— (i) enige plan, skema of strategie kragtens hierdie Wet verwys, in te dien; of te voldoen aan enige plan, skema of strategie ingevolge hierdie Wet (ii) goedgekeur; (b) indien die Voorsorgowerheid redelikerwys van mening is dat ’n plan, skema of strategie kragtens hierdie Wet ingedien, ontoereikend is; of (c) onder die omstandighede in artikel 29(4)(b) bedoel. (3) Die Voorsorgowerheid, benewens enige ander stap wat die Voorsorgowerheid kragtens hierdie Wet kan doen, kan ooreenkomstig artikel 59 optree ten opsigte van ’n trust in artikel 41 bedoel— (a) indien ’n tak van ’n buitelandse herversekeraar of Lloyd’s versuim om— (i) die effekte in artikel 41 bedoel, in die trust te voorsien of te onderhou; (ii) enige plan of skema kragtens hierdie Wet vereis, voor te lê; of (iii) aan enige plan of skema kragtens hierdie Wet goedgekeur, te voldoen; indien die Voorsorgowerheid redelikerwys van mening is dat ’n plan of skema kragtens hierdie Wet voorgelê, ontoereikend is; of (c) onder die omstandighede in artikel 29(4)(b) beoog. (b) Deel 1 Statutêre bestuur Aanstelling van statutêre bestuurder 53. (1) Ondanks enige ander Wet, kan die Voorsorgowerheid ’n statutêre bestuurder ingevolge artikel 5A van die Wet op Finansiële Instellings (Beskerming van Fondse), ten opsigte van enige versekeraar of beheermaatskappy aanstel. (2) Indien ’n statutêre bestuurder kragtens hierdie Wet aangestel word, kan geen ten ondernemingsreddings- of insolvensieverrigtinge in hierdie Hoofstuk bedoel, opsigte van ’n versekeraar of beheermaatskappy begin word nie totdat die aanstelling van die statutêre bestuurder beëindig word. 30 35 40 45 50 This gazette is also available free online at www.gpwonline.co.za
Part
CHAPTER 11
- 100 Verify source ↗
No. 41388
AI-assisted research summary: The Minister must consult on draft regulations before promulgating them, insurers must submit specified information within set timeframes, and certain insurers are exempt from listed Act provisions.
100 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 100 (iii) after having regard to the objectives and purpose of the Medical Schemes Act, 1998, including the principles of community rating, open enrolment and cross-subsidisation within medical schemes entrenched therein; (b) must provide for insurers to submit specified information on any product within a kind, type or category of contract referred to in subsection (1) to the Prudential Authority and the Registrar of Medical Schemes within any specified timeframes; and (c) may provide for matters relating to the design and marketing of any product within a kind, type or category of contract referred to in subsection (1). (3) Where the Minister has made regulations referred to in subsection (1), the kind, type or category of contract identified in the regulations as an insurance policy that may be entered into under the classes referred to in subsection (1), is subject to this Act and not the Medical Schemes Act, 1998. (4) Before regulations in terms of this section are promulgated, the Minister must— (a) publish notice of the release of the draft regulations in the Gazette, indicating that the draft regulations are available on the official website and calling for public comment in writing within a period stated in the notice, which period may not be less than 30 days from the date of publication of the notice; and submit is in session, for parliamentary scrutiny at least one month before their promulgation. the draft regulations to Parliament, while it (b) Special exemption of certain insurers 71. (1) The following persons are exempt from section 22(1)(a)(iii) of this Act: (b) (a) A mutual association licensed under section 30(1) of the Compensation for Occupational Injuries and Diseases, 1998 (Act No. 130 of 1998), at the date on which this Act comes into operation for as long as it remains so licensed; the AVBOB Mutual Assurance Society established in terms of the AVBOB Mutual Assurance Society Incorporation (Private) Act, 1951 (Act No. 7 of 1951); the Attorney Insurance Fidelity Fund NPC (registration number 1993/03588/ 08) for as long as it remains registered as a non-profit company under the Companies Act; and the Home Loan Guarantee Company NPC (registration number 1990/001845/ 08) for as long as it remains registered as a non-profit company under the Companies Act. (d) (c) (2) Any state-owned company licensed to conduct insurance business under the the Long-term Insurance Act, 1998, or the Short-term Insurance Act, 1998, at commencement date of this Act is exempt from section 22(1)(e). Consequential amendments and transitional arrangements 72. (1) The Acts referred to in Schedule 1 are hereby amended in the manner set out in that Schedule. (2) The amendment of the Acts does not affect the transitional arrangements, which are set out in Schedule 3. Short title and commencement 73. (1) This Act is called the Insurance Act, 2017, and comes into operation on a date fixed by the Minister by proclamation in the Gazette. (2) The Minister may set different dates for different provisions of this Act to come into operation. 5 10 15 20 25 30 35 40 45 This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 101 Versekeringswet, 2017 Wet No. 18 van 2017 101 (iii) na inagneming van die oogmerke en doel van die Wet op Mediese Skemas, 1998, met inbegrip van die beginsels van beoordeling deur die gemeenskap, ope inskrywings en kruissubsidiëring binne mediese skemas daarin gevestig; (b) moet voorsiening maak vir versekeraars om gespesifiseerde inligting oor enige produk in bepaalde tydsbestekke binne ’n soort, tipe of kategorie van kontrak in subartikel (1) bedoel, aan die Voorsorgowerheid en die Registrateur van Mediese Skemas voor te lê; en (c) kan voorsiening maak vir aangeleenthede wat met die ontwerp en bemarking van enige produk binne ’n soort, tipe of kategorie van kontrak in subartikel (1) bedoel, verband hou. (3) Waar die Minister regulasies in subartikel (1) bedoel uitgevaardig het, is die soort, tipe of kategorie van kontrak in die regulasies geïdentifiseer as ’n versekeringspolis wat onder die klasse in subartikel (1) bedoel, afgesluit kan word, onderhewig aan hierdie Wet en nie die Wet op Mediese Skemas, 1998, nie. (4) Voordat regulasies ingevolge hierdie artikel uitgevaardig word, moet die Minister— (a) kennisgewing van die uitreiking van die konsepregulasies in die Staatskoerant publiseer om aan te dui dat die konsepregulasies op die amptelike webwerf beskikbaar is en om ’n oproep op die publiek te doen om skriftelik kommentaar te lewer in ’n tydperk in die kennisgewing vermeld, welke tydperk nie minder as 30 dae vanaf die publikasie van die kennisgewing mag wees nie; en (b) die konsepregulasies ten minste een maand voor dit gepromulgeer word aan die Parlement voorlê, terwyl die Parlement in sessie is, vir parlementêre ondersoek. Spesiale vrywaring van sekere versekeraars 71. (1) Die volgende persone is vrygestel van artikel 22(1)(a)(iii) van hierdie Wet: (a) ’n Onderlinge vereniging gelisensieer kragtens artikel 30(1) van die Wet op Vergoeding vir Beroepsbeserings en -Siektes, 1993 (Wet No. 130 van 1993), op die datum waarop hierdie Wet van krag word vir solank hy aldus gelisensieer bly; (b) die Onderlinge Versekeringsgenootskap AVBO ingestel ingevolge die Private Wet tot Instelling van die Onderlinge Versekeringsgenootskap, 1951 (Wet No. 7 van 1951); ‘‘Attorney (registrasienommer 1993/03588/08) vir solank hy kragtens die Maatskappywet as ’n maatskappy sonder winsbejag geregistreer bly; en Insurance Fidelity Fund NPC’’ (c) die (d) die ‘‘Home Loan Guarantee Company NPC’’ (registrasienommer 1990/001845/08) vir solank hy kragtens die Maatskappywet as ’n maatskappy sonder winsbejag geregistreer bly. (2) Enige maatskappy in staatsbesit wat met die inwerkingtredingsdatum van hierdie Wet kragtens die Wet op Langtermynversekering, 1998, of die Wet op Korttermyn- versekering, 1998, gelisensieer is om versekeringsbesigheid te dryf, is van artikel 22(1)(e) gevrywaar. Gevolglike wysigings en oorgangsbepalings 72. (1) Die Wette in Bylae 1 bedoel word hierby gewysig op die wyse in daardie Bylae uiteengesit. (2) Die wysiging van die Wette raak nie die oorgangsbepalings nie, wat in Bylae 3 uiteengesit word. Kort titel en inwerkingtreding 73. (1) Hierdie Wet heet die Versekeringswet, 2017, en tree in werking op ’n datum deur die Minister by proklamasie in die Staatskoerant vasgestel. (2) Die Minister kan verskillende datums vasstel waarop verskillende bepalings van hierdie Wet in werking sal tree. 5 10 15 20 25 30 35 40 45 50 55 This gazette is also available free online at www.gpwonline.co.za - 102 Verify source ↗
No. 41388
AI-assisted research summary: This section lists an amendment to the Financial Sector Regulation Act in Schedule 1.
102 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 102 SCHEDULE 1 LAWS AMENDED No. and year of Act Short title 9 of 2017 Financial Sector Regulation Act Extent of amendment or repeal
Part
SCHEDULE 1
- 1 Verify source ↗
The amendment of section 1—
AI-assisted research summary: This section amends section 1 by changing the definition of “eligible financial institution” and adding a definition of “Insurance Act.”
1. The amendment of section 1— (a) by the substitution for paragraph (b) of the definition of ‘‘eligible finan- cial institution’’ of the following paragraph: ‘‘(b) a financial institution regis- tered as a long-term insurer in terms of the Long-term Insurance Act or a short- term insurer in terms of the Short-term Insurance Act or licensed or required to be licensed in terms of the In- surance Act;’’; and (b) by the insertion after the definition of ‘‘industry ombud scheme’’ of the following definition: ‘‘ ‘‘Insurance Act’’ means the Insurance Act, 2017 (Act No. 18 of 2017);’’. - 2 Verify source ↗
The amendment of section 2—
AI-assisted research summary: This section amends section 2 by replacing two insurance-policy definitions.
2. The amendment of section 2— (a) by the substitution in subsection (1) for paragraph (b) of the following paragraph: ‘‘(b) a long-term policy as de- fined in section 1(1) of the Long-term Insurance Act or a life insurance policy as defined in section 1 of the Insurance Act;’’; and (b) by the substitution in subsection (1) for paragraph (c) of the following paragraph: ‘‘(c) a short-term policy as de- fined in section 1(1) of the Short-term Insurance Act or a non-life insurance policy as defined in section 1 of the Insurance Act;’’. - 3 Verify source ↗
The amendment of Schedule 1
AI-assisted research summary: Schedule 1 is amended by adding the Insurance Act, 2017 after the Credit Rating Services Act, 2012.
3. The amendment of Schedule 1 by the insertion in the next row after ‘‘Credit Rating Services Act, 2012 (Act No. 24 of 2012)’’ of the following: ‘‘Insurance Act, 2017 (Act No. 18 of 2017)’’. This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 103 103 BYLAE 1 WETTE GEWYSIG No. en jaar van Wet 9 wa 2017 Kort titel Molao wa Taolo ya Lephata la Ditsˇhelete Omvang van wysiging of herroeping - 1 Verify source ↗
Tlhabololo ya karolo 1—
AI-assisted research summary: This section amends an existing definition and inserts a new definition for the Insurance Act.
1. Tlhabololo ya karolo 1— (a) ka kemisetso ya temana (b) ya tlhaloso ya ‘‘ditheo tsa ditsˇhelete tse di matshwanedi’’ ka temana e e latelang: ‘‘(b) setheo sa ditsˇhelete se se kwadisitsweng jaaka motlamedi wa insˇorense wa paka e e telelele go ya ka Long-term Insurance Act kgotsa motlamedi wa insˇorense wa paka e e khutshwane go ya ka Short- term Insurance Act kgotsa se se abetsweng laesense kgotsa se se tlhokang go abelwa laesense go ya ka Insurance Act;’’; le (b) ka go tsenngwa morago ga tlhaloso ya ‘‘sekema sa ombud wa bodirelo’’ ga tlhaloso e e latelang: ‘‘ ‘Molao wa Insˇorense’’ o kaya Insurance Act, 2017 (Molao 18 wa 2017);’’. - 2 Verify source ↗
Tlhabololo ya karolo 2—
AI-assisted research summary: This section amends section 2 by replacing and adding wording that defines long-term and short-term insurance policy references.
2. Tlhabololo ya karolo 2— (a) ka kemisetso ya karolotlaleletso (1) ya temana (b) ka temana e e latelang: ‘‘(b) pholisi ya paka e e telele jaaka e tlhalositswe mo karolong 1 ya Long-term Insurance Act kgotsa pholisi ya insorense ya botshelo jaaka e tlhalositswe mo karolong (1) ya Insurance Act;’’; le (b) ka kemisetso mo karolotlaleletsong (1) ya temana (c) ka temana e e latelang: ‘‘(c) pholisi ya paka e e khutshwane jaaka e tlhalositswe mo karolong 1(1) ya Short-term Insurance Act kgotsa pholisi ya insˇorense e e seng ya botshelo jaaka e tlhalositswe mo karolong 1 ya Insurance Act;’’. - 3 Verify source ↗
Tlhabololo ya Sˇejule 1 ka go
AI-assisted research summary: This section amends Schedule 1 by adding “Insurance Act, 2017 (Molao 18 wa 2017)” after “Credit Rating Services Act, 2012 (Molao 24 wa 2012)”.
3. Tlhabololo ya Sˇejule 1 ka go tsenngwa mo moleng o o latelang morago ga ‘‘Credit Rating Services Act, 2012 (Molao 24 wa 2012)’’ ga se se latelang: ‘‘Insurance Act, 2017 (Molao 18 wa 2017)’’. This gazette is also available free online at www.gpwonline.co.za - 104 Verify source ↗
No. 41388
AI-assisted research summary: This section is an amendment table entry referring to the Long-term Insurance Act, 1998.
104 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 104 No. and year of Act Short title Extent of amendment or repeal 52 of 1998 Long-term Insurance Act - 4 Verify source ↗
The amendment of Schedule 2—
AI-assisted research summary: This section amends Schedule 2 by adding an Insurance Act entry and changing the next row to refer to the Long-term and Short-term Insurance Acts in relation to matters within the objectives of the Prudential Authority and the Financial Sector Conduct Authority.
4. The amendment of Schedule 2— (a) by the insertion after the ‘‘Credit Rating Services Act, 2012 (Act No. 24 of 2012)’’ row of the following row: Insurance Act, 2017 Prudential (Act No. 18 of 2017) Authority (b) by the amendment of the row fol- lowing the ‘‘Insurance Act (Act No. 18 of 2017)’’ row as follows: [the] Long-term Insurance Act, 1998 (Act No. 52 of 1998) and the Short-term Insurance Act, 1998 (Act No. 53 of 1998) [, so far as they relate to matters within the objectives of— (a) the Prudential Authority (b) the Financial Financial Sector Conduct Authority [Prudential Authority Financial Sector Conduct Sector Conduct Authority] Authority] - 1 Verify source ↗
The substitution of all references
AI-assisted research summary: This section replaces every reference in the Act to “Registrar” with “Authority”.
1. The substitution of all references in this Act to ‘‘Registrar’’ with ‘‘Authority’’. - 2 Verify source ↗
The substitution for section 1 of
AI-assisted research summary: This section replaces section 1 and sets out definitions, including “assistance policy” and “Authority.”
2. The substitution for section 1 of the following section: ‘‘Definitions 1. (1) In this Act, unless the con- text otherwise indicates— ‘‘assistance policy’’ means a life policy in respect of which the aggre- gate of— (a) the value of the policy benefits, other than an annuity, to be pro- vided (not taking into account any bonuses to be determined in the discretion of the long-term insurer); and (b) the amount of the premium in return for which an annuity is to be provided, does not exceed R30 000, or another amount prescribed by the Minister; and includes a reinsurance policy in respect of such a policy; ‘‘Authority’’ means the Financial Sector Conduct Authority estab- lished by the Financial Sector Regu- lation Act; This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 105 Versekeringswet, 2017 Wet No. 18 van 2017 105 No. en jaar van Wet Kort titel 52 van 1998 Langtermyn- versekeringswet Omvang van wysiging of herroeping - 4 Verify source ↗
Tlhabololo ya Sˇejule 2—
AI-assisted research summary: This section amends Schedule 2 by inserting and updating listed financial-services acts and related authorities.
4. Tlhabololo ya Sˇejule 2— (a) ka go tsenngwa morago ga mola ‘‘Credit Rating Services Act, 2012 (Molao 24 wa 2012)’’ ga mola o o latelang: Insurance Act, 2017 (Molao 18 wa 2017) Bothati jwa Tlhokomelo (b) ka tlhabololo ya mola o o latelang mola wa ‘‘Insurance Act (Molao 18 wa 2017)’’ jaana: Long-term Insurance Act (Molao 52 wa 1998) le Short-term Insurance Act (Molao 53 wa 1998) [, jaaka fa di amana le merero e e mo maikaelelong a— (a) Bothati jwa Tlhokomelo (b) Bothati jwa Boitshwaro jwa Lephata la la Ditsˇhelete] Bothati jwa Boitshwaro jwa Lephata la Ditsˇhelete [Bothati jwa Tlhokomelo Bothati jwa Boitshwaro jwa Lephata Ditsˇhelete] - 1 Verify source ↗
Alle verwysings na ‘‘Registrateur’’
AI-assisted research summary: All references to “Registrateur” in this Act are replaced with “Owerheid”.
1. Alle verwysings na ‘‘Registrateur’’ in hierdie Wet word deur ‘‘Owerheid’’ vervang. - 2 Verify source ↗
Artikel 1 word deur die volgende
AI-assisted research summary: This provision replaces Article 1 and gives definitions for “amortisasiepolis” and “amptelike webwerf.”
2. Artikel 1 word deur die volgende artikel vervang: ‘‘Woordomskrywing 1. (1) In hierdie Wet, tensy dit uit die samehang anders blyk, beteken— ‘amortisasiepolis’ ’n ander kontrak as ’n lewenspolis, ingevolge waarvan ’n persoon, in ruil vir ’n premie, onderneem om een of meer somme geld, op ’n bepaalde of bepaalbare toekomstige datum, as polisvoordele te verskaf; en ook ’n herversekeringspolis ten opsigte van so ’n kontrak; ‘amptelike webwerf’ ’n webwerf van die Owerheid; This gazette is also available free online at www.gpwonline.co.za - 106 Verify source ↗
No. 41388
AI-assisted research summary: This section defines several insurance-related terms, including conduct standard, disability event, disability policy, fund, fund policy, health event, and assistance policy.
106 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 106 No. and year of Act Short title Extent of amendment or repeal ‘‘conduct standard’’ has the same meaning ascribed to it in terms of section 1(1) of the Financial Sector Regulation Act; ‘‘disability event’’ means the event of the functional ability of the mind or body of a person or an unborn becoming impaired; ‘‘disability policy’’ means a con- tract in terms of which a person, in return for a premium, undertakes to provide policy benefits upon a dis- ability event; and includes a reinsurance policy in respect of such a contract; ‘‘Financial Sector Regulation Act’’ means the Financial Sector Regula- tion Act, 2017; ‘‘fund’’ means— (a) a friendly society as defined in section 1 of the Friendly Societ- ies Act, 1956 (Act No. 25 of 1956); (b) a pension fund organization as defined in section 1 of the Pen- sion Funds Act, 1956 (Act No. 24 of 1956); (c) a medical scheme as defined in section 1 of the Medical Schemes Act; and (d) any other person, arrangement or business prescribed by the Authority; ‘‘fund policy’’ means a contract in terms of which a person, in return for a premium, undertakes to pro- vide policy benefits for the purpose of funding in whole or in part the liability of a fund to provide benefits to its members in terms of its rules, other than such a contract relating exclusively to a particular member of the fund or to the surviving spouse, children, dependants or nominees of a particular member of the fund; and includes a reinsurance policy in respect of such a contract; ‘‘health event’’ means an event relating to the health of the mind or body of a person or an unborn; This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 107 No. en jaar van Wet Kort titel 107 Omvang van wysiging of herroeping ‘bystandspolis’ ’n lewenspolis ten opsigte waarvan die totaal van— (a) die waarde van die polisvoordele, behalwe ’n annuïteit, wat verskaf staan te word (sonder inagneming van enige bonusse wat na goeddunke van die langtermynversekeraar bepaal staan te word); en (b) die bedrag van die premie in ruil waarvoor ’n annuïteit verskaf staan te word, nie R30 000 oorskry nie, of ’n ander maksimum bedrag deur die Minister voorgeskryf; en ook ’n herverseke- ringspolis ten opsigte van sodanige polis; ‘dienste as tussenganger’ wat in die regulasies voorgeskryf word; ‘Financial Sector Regulation Act’ die ‘Financial Sector Regulation Act’, 2017; ‘fonds’— (a) ’n onderlinge hulpvereniging soos omskryf in artikel 1 van die Wet op Onderlinge Hulpverenigings, 1956 (Wet No. 25 van 1956); (b) ’n pensioenfondsorganisasie soos omskryf in artikel 1 van die Wet op Pensioenfondse, 1956 (Wet No. 24 van 1956); (c) ’n mediese skema soos omskryf in artikel 1 van die Wet op Mediese Skemas; en (d) enige ander persoon, reëling of besigheid deur die Owerheid voorgeskryf; ‘fondspolis’ ’n kontrak ingevolge waarvan ’n persoon, in ruil vir ’n premie, onderneem om polisvoordele te verskaf vir die doel van die volle of gedeeltelike befondsing van ’n fonds se verpligting om voordele aan sy lede ingevolge sy reëls te verskaf, behalwe so ’n kontrak wat uitsluitlik betrekking het op ’n bepaalde lid van die fonds of op die oorlewende gade, kinders, afhanklikes of benoemdes van ’n bepaalde lid van die fonds; en ook ’n herversekeringspolis ten opsigte van so ’n kontrak; ‘gedragstandaard’ ‘conduct standard’ soos ingevolge artikel 1(1) van die ‘Financial Sector Act’ omskryf; This gazette is also available free online at www.gpwonline.co.za - 108 Verify source ↗
No. 41388
AI-assisted research summary: This section updates definitions used in the Insurance Act, including “health policy,” “independent intermediary,” “Insurance Act,” “joint standard,” and “licensed insurer.”
108 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 108 No. and year of Act Short title Extent of amendment or repeal ‘‘health policy’’ means a contract in terms of which a person, in return for a premium, undertakes to pro- vide policy benefits upon a health event, and includes a reinsurance policy in respect of such a con- tract— (a) excluding any contract— (i) that provides for the con- ducting of the business of a medical scheme referred to in section 1 (1) of the Medi- cal Schemes Act; or (ii) of which the policyholder is a medical scheme registered under the Medical Schemes Act, and which contract— (aa) relates to a particular member of the scheme or to the beneficiaries of that member; and (bb) is entered into by the medical scheme to fund in whole or in part its liability to the member or the benefi- ciaries of the member referred to in subpara- graph (aa) in terms of its rules; but (b) specifically including, notwith- standing paragraph (a) (i), any contracts identified by the Min- ister by regulation under section 72 (2A) as a health policy; ‘‘independent intermediary’’ has the meaning as prescribed in the regulations; ‘‘Insurance Act’’ means the Insur- ance Act, 2017; ‘‘joint standard’’ has the same meaning ascribed to it in terms of section 1(1) of the Financial Sector Regulation Act; ‘‘licensed insurer’’ means— (a) a previously registered insurer as defined in Item 1 of Schedule 3 to the Insurance Act who has been granted a licence under section 23 of the Insurance Act within the period referred to in item 6(2) of Schedule 3 to the Insurance Act; or This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 109 No. en jaar van Wet Kort titel 109 Omvang van wysiging of herroeping ‘gelisensieerde versekeraar’— (a) ’n voorheen geregistreerde versekeraar soos omskryf in Item 1 van Bylae 3 tot die Versekeringswet waaraan kragtens artikel 23 van die Versekeringswet ’n lisensie toegestaan is binne die tydperk in item 6(2) van die Bylae 3 tot die Versekeringswet bedoel; of (b) iemand wat kragtens artikel 23 van die Versekeringswet gelisensieer is na die datum waarop daardie Wet in werking getree het; ‘geregistreerde versekeraar’ ’n voorheen geregistreerde versekeraar soos omskryf in item 1 van Bylae 3 by die Versekeringswet vir die tydperk tussen die datum waarop die Versekeringswet in werking getree het en die goedkeuring of afwysing van die voorheen geregistreerde versekeraar se lisensieaansoek bedoel in item 6(2) van Bylae 3 tot die Versekeringswet; ‘gesamentlike standaard’ ‘joint standard’ soos ingevolge artikel 1(1) van die ‘Financial Sector Regulation Act’ omskryf; ‘gesondheidsgebeurtenis’ ’n gebeurtenis wat betrekking het op die gesondheid van die gees of liggaam van ’n persoon of ’n ongeborene; ‘gesondheidspolis’ ’n kontrak ingevolge waarvan ’n persoon, in ruil vir ’n premie, onderneem om polisvoordele te verskaf by ’n gesondheidsgebeurtenis, ook ’n herversekeringskontrak met betrekking tot so ’n kontrak— (a) uitgesonderd ’n kontrak— (i) wat voorsiening maak vir die besigheid van ’n mediese skema bedoel in artikel 1(1) van die Wet op Mediese Skemas; of (ii) waarvan die polishouer ’n mediese skema is wat kragtens die Wet op Mediese Skemas, geregistreer is, en welke kontrak— (aa) betrekking het op ’n bepaalde lid van die skema of die begun- stigdes van sodanige lid; en This gazette is also available free online at www.gpwonline.co.za
Part
part its liability to the
- 110 Verify source ↗
No. 41388
AI-assisted research summary: This section defines several insurance terms, including life event, life insured, life policy, long-term insurance business, long-term insurer, and long-term policy.
110 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 110 No. and year of Act Short title Extent of amendment or repeal (b) a person who has been licensed under section 23 of the Insur- ance Act after the date on which that Act commenced; ‘‘life event’’ means the event of the life of a person or an unborn— (a) having begun; (b) continuing; (c) having continued for a period; or (d) having ended; ‘‘life insured’’ means the person or unborn to whose life, or to the func- tional ability or health of whose mind or body, a long-term policy relates; ‘‘life policy’’ means a contract in terms of which a person, in return for a premium, undertakes to— (a) provide policy benefits upon, and exclusively as a result of, a life event; or (b) pay an annuity for a period; and includes a reinsurance policy in respect of such a contract; ‘‘long-term insurance business’’ means — (a) in respect of a registered insurer, the business of providing or undertaking to provide policy benefits under long-term poli- cies; (b) in respect of a licensed insurer, life insurance business as de- fined in section 1 of the Insur- ance Act; ‘‘long-term insurer’’ means a reg- istered insurer or a licensed insurer; ‘‘long-term policy’’ means— (a) in respect of a registered in- surer, an assistance policy, a disability policy, fund policy, health policy, life policy or sink- ing fund policy, or a contract comprising a combination of any of those policies; and in- cludes a contract whereby any such contract is varied; (b) in respect of a licensed insurer, a life insurance policy as de- fined in section 1 of the Insur- ance Act; This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 111 No. en jaar van Wet Kort titel 111 Omvang van wysiging of herroeping (bb) afgesluit word deur die skema om in die geheel of gedeeltelik sy verpligting teenoor sodanige lid of begun- stigdes ingevolge sy reëls te befonds; maar (b) spesifiek, ongeag paragraaf (a)(i), enige kontrakte insluit soos deur die Minister by regulasie kragtens artikel 72(2A) as ’n gesondheids- polis geïdentifiseer is; ‘herroepte Wet’ die Versekeringswet, 1943 (Wet No. 27 van 1943); ‘herversekeringspolis’— (a) met betrekking tot ’n geregistreerde versekeraar, ’n herversekeringspolis met betrekking tot ’n langtermynpolis; (b) met betrekking tot ’n gelisensieerde versekeraar, ’n lewensversekeringspolis geskryf onder die herversekeringsklas van lewensversekeringsbesigheid soos in Tabel 1 van Bylae 2 van die Versekeringswet uiteengesit; ‘hierdie Wet’ ook enige regulasie uitgevaardig, of aangeleentheid kragtens hierdie Wet voorgeskryf; ‘korttermynversekeraar’ dit wat in die Korttermynversekeringswet, 1998, daaraan toegeskryf is; en ‘langtermynpolis’— (a) met betrekking tot ’n geregistreerde versekeraar, ’n bystandspolis, ongeskiktheids- polis, fondspolis, gesondheids- polis, lewenspolis of amortisasie- polis, of ’n kontrak wat uit ’n kombinasie van enige van daardie polisse bestaan; en ook ’n kontrak waarby so ’n kontrak gewysig word; (b) met betrekking tot ’n gelisensi- eerde versekeraar, ’n lewens- ersekeringspolis soos in artikel 1 van die Versekeringswet omskryf; ‘langtermynversekeraar’ ’n geregistreerde versekeraar of ’n gelisensieerde versekeraar; This gazette is also available free online at www.gpwonline.co.za - 112 Verify source ↗
No. 41388
AI-assisted research summary: This section defines key terms used in the Insurance Act amendment context, including Minister, policy benefits, policyholder, premium, registered insurer, regulation, and several life/disability insurance concepts.
112 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 112 No. and year of Act Short title Extent of amendment or repeal ‘‘Medical Schemes Act’’ means the Medical Schemes Act, 1998 (Act No. 131 of 1998); ‘‘Minister’’ means the Cabinet member responsible for finance; ‘‘official website’’ means a website of the Authority; ‘‘policy benefits’’ means— (a) in respect of a registered in- surer, one or more sums of money, services or other ben- efits, including an annuity; (b) in respect of a licensed insurer, benefits to which a person is contractually entitled under a life insurance policy arising from an insurer’s insurance obli- gations; ‘‘policyholder’’ in respect of a— registered insurer, means the (a) person entitled to be provided with the policy benefits under a long-term policy; (b) licensed insurer, has the mean- ing assigned to it in the Insur- ance Act; ‘‘premium’’ in respect of a— (a) registered insurer, means the consideration given or to be given in return for an undertak- ing to provide policy benefits; (b) licensed insurer has the meaning assigned to it in the Insurance Act; ‘‘Register’’ means the Financial Sector Information Register referred to in section 256 of the Financial Sector Regulation Act; ‘‘registered insurer’’ means a pre- viously registered insurer as defined in item 1 of Schedule 3 to the Insur- ance Act for the period between the date on which the Insurance Act commenced and the previously reg- istered insurer’s licence application referred to in item 6(2) of Schedule 3 to the Insurance Act has been granted or not granted; ‘‘regulation’’ means a regulation under section 72; ‘‘reinsurance policy’’ means— in respect of a registered in- (a) surer, a reinsurance policy in respect of a long-term policy; This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 113 No. en jaar van Wet Kort titel 113 Omvang van wysiging of herroeping ‘langtermynversekeringsbesigheid’— (a) met betrekking tot ’n geregistreerde versekeraar, lewensversekeringsbesigheid soos omskryf in artikel 1 van die Versekeringswet, 2016; (b) met betrekking tot ’n gelisensieerde versekeraar, ’n lewenspolis soos in artikel 1 van die Versekeringswet omskryf; ‘lewensgebeurtenis’ die gebeurtenis waar die lewe van ’n persoon of ongeborene— (a) ’n aanvang geneem het; (b) voortduur; (c) vir ’n tydperk voortgeduur het; of (d) geëindig het; ‘lewenspolis’ ’n kontrak ingevolge waarvan ’n persoon, in ruil vir ’n premie, onderneem om— (a) polisvoordele te verskaf by, en uitsluitlik as gevolg van, ’n lewensgebeurtenis; of (b) ’n annuïteit vir ’n tydperk te betaal, en ook ’n herversekeringspolis ten opsigte van so ’n kontrak; ‘Minister’ die Kabinetslid verantwoordelik vir finansies; ‘onafhanklike tussenganger’ soos in die regulasies beskryf; ‘ongeborene’ ’n menslike fetus na bevrugting maar nog nie gebore nie; ‘ongeskiktheidsgebeurtenis’ die gebeurtenis waartydens die funksionele vermoë van die verstand of liggaam van ’n persoon of ’n ongeborene ingekort word; ‘ongeskiktheidspolis’ ’n kontrak ingevolge waarvan ’n persoon, in ruil vir ’n premie, onderneem om polis- voordele in die geval van ’n onge- skiktheidsgebeurtenis te voorsien; en ook ’n herversekeringspolis ten opsigte van so ’n kontrak; ‘Owerheid’ die Gedragsowerheid vir die Finansiële Sektor deur die ‘Financial Sector Regulation Act’ ingestel; ‘polishouer’ met betrekking tot ’n— (a) geregistreerde versekeraar, die persoon wat daarop geregtig is om van die polisvoordele kragtens ’n langtermynpolis voorsien te word; (b) gelisensieerde versekeraar, dit wat in die Versekeringswet daaraan toegeskryf word; This gazette is also available free online at www.gpwonline.co.za - 114 Verify source ↗
No. 41388
AI-assisted research summary: This section defines several terms and says that, for long-term policies, an unborn life is treated as beginning at conception.
114 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 114 No. and year of Act Short title Extent of amendment or repeal (b) in respect of a licensed insurer, a life insurance policy written under the reinsurance class of life insurance business as set out in Table 1 of Schedule 2 of the Insurance Act; ‘‘repealed Act’’ means the Insur- ance Act, 1943 (Act No. 27 of 1943); ‘‘representative’’ has the meaning as prescribed in the regulations; ‘‘services as intermediary’’ has the meaning as prescribed in the regula- tions; ‘‘sinking fund policy’’ means a contract, other than a life policy, in terms of which a person, in return for a premium, undertakes to pro- vide one or more sums of money, on a fixed or determinable future date, as policy benefits; and includes a reinsurance policy in respect of such a contract; ‘‘short-term insurer’’ has the meaning assigned to it in the Short- term Insurance Act, 1998; ‘‘this Act’’ includes any regulation made, or matter prescribed under this Act; ‘‘Tribunal’’ means the Financial Services Tribunal established in terms of section 219 of the Financial Sector Regulation Act; ‘‘unborn’’ means a human foetus conceived but not born. (2) For the purposes of entering into a long-term policy the life of an unborn shall be deemed to begin at conception. (3) Unless the context otherwise indicates, words and expressions not defined in subsection (1) have the same meaning ascribed to them in terms of the Financial Sector Regu- lation Act or Insurance Act. (4) A reference to statutory actu- ary in this Act must be construed as a reference to the head of the actu- arial control function appointed by a long-term insurer in accordance with the Insurance Act.’’. This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 115 No. en jaar van Wet Kort titel 115 Omvang van wysiging of herroeping ‘polisvoordele’— (a) met betrekking tot ’n geregistreerde versekeraar, een of meer somme geld, dienste of ander voordele, met inbegrip van ’n annuïteit; (b) ten opsigte van ’n gelisensieerde versekeraar, voordele waarop ’n persoon volgens kontrak geregtig is kragtens ’n lewensverseke- ringspolis na aanleiding van ’n versekeraar se versekerings- verpligtinge; ‘premie’ met betrekking tot ’n— (a) geregistreerde versekeraar, ’n herversekeringspolis ten opsigte van ’n langtermynpolis; (b) met betrekking tot ’n gelisensieerde versekeraar, ’n lewensversekeringspolis geskryf onder die herversekeringsklas van lewensversekeringsbesigheid soos in Tabel 1 van Bylae 2 by die Versekeringswet uiteengesit; ‘Register’ die Inligtingsregister vir die Finansiële Sektor bedoel in artikel 256 van die ‘‘Financial Sector Regulation Act’’; ‘regulasie’ ’n regulasie kragtens artikel 72 uitgevaardig; ‘Tribunaal’ die Tribunaal vir Finansiële Dienste ingestel ingevolge artikel 219 van die ‘Financial Sector Regulation Act’; ‘Versekeringswet’ die Versekerings- wet, 2017; ‘verteenwoordiger’ dit wat in die regulasies daaraan toegeskryf word; en ‘Wet op Mediese Skemas’ die Wet op Mediese Skemas, 1998 (Wet No. 131 van 1998). (2) Vir die afsluiting van ’n langtermynpolis, word die lewe van ’n ongeborene geag met bevrugting te begin. (3) Tensy dit uit die samehang anders blyk, het woorde en uitdrukkings nie in subartikel (1) omskryf nie, die betekenis ingevolge die ‘‘Financial Sector Regulation Act’’ of Versekeringswet daaraan toegeskryf. (4) ’n Enige verwysing na ’n spesifieke tipe polis kragtens hierdie Wet moet geag word ’n verwysing na die klas of subklas van versekerings- besigheid in Bylae 2 van die Versekeringswet, 2016, uiteengesit wat die meeste met daardie tipe polis ooreenstem, te wees.’’. This gazette is also available free online at www.gpwonline.co.za - 116 Verify source ↗
No. 41388
AI-assisted research summary: 116 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 116 No. and year of Act Short title Extent of amendment or repeal
116 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 116 No. and year of Act Short title Extent of amendment or repeal - 3 Verify source ↗
The amendment of section 1A—
AI-assisted research summary: This section amends section 1A to remove subsection (1), update the meaning of “prescribed” and “determined,” and replace an appeal reference with a Tribunal reconsideration under the Financial Sector Regulation Act.
3. The amendment of section 1A— (a) by the deletion of subsection (1); (b) by the substitution for subsection (4) of the following subsection: ‘‘(4) Unless expressly pro- vided otherwise in this Act, or this Act requires a matter to be prescribed by regulation, a ref- erence in this Act to a matter being— (a) prescribed must be read as a reference to the matter be- ing prescribed in a conduct standard or a joint standard; or (b) determined must be read as a reference to the Authority determining the matter in writing and registering the determination in the Regis- ter.’’; and (c) by the substitution for subsection (6) of the following subsection: ‘‘(6) The references in section 3(3) to an appeal to the board of appeal established by section 26 of the Financial Services Board Act must be read as a reference to a reconsideration of the deci- sion by the Tribunal in terms of the Financial Sector Regulation Act.’’. - 4 Verify source ↗
The whole of sections 2(2), 2(3),
AI-assisted research summary: This section repeals the listed sections and schedules.
4. The whole of sections 2(2), 2(3), 4(5), 4(7), 7, 8(1), 8(2), 9 – 35, 37 – 43, 48, 52, 53, 56, 59, 60, 67, 69 – 71 and 72(2A), and Schedules 1 and 3 are hereby repealed. - 5 Verify source ↗
The amendment of section 3—
AI-assisted research summary: This section amends section 3 and replaces the fee reference and the inspection rule.
5. The amendment of section 3— (a) by the substitution in subsection (2)(b) for subparagraph (i) of the following subparagraph: ‘‘(i) the fees determined under the Financial Sector Regu- lation Act; and’’; and (b) by the substitution for subsection (4) of the following subsection: ‘‘(4) A person may, upon pay- ment of any fees determined under the Financial Sector Regulation Act, inspect only those documents determined by the Authority by notice on the official website, which are held by the Authority under this Act in relation to a long-term insurer or an intermediary, or obtain a copy of or extract from any such document.’’. This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 117 No. en jaar van Wet Kort titel 117 Omvang van wysiging of herroeping - 3 Verify source ↗
Artikel 1A word gewysig—
AI-assisted research summary: This section changes how certain references in Article 1A must be read, and gives the Authority power to determine a matter in writing and register that determination.
3. Artikel 1A word gewysig— (a) deur subartikel (1) te skrap; (b) deur subartikel (4) deur die volgende subartikel te vervang: ‘‘(4) Tensy uitdruklik anders in hierdie Wet bepaal, of tensy hierdie Wet vereis dat ’n aangeleentheid by regulasie voorgeskryf word, moet ’n verwysing in hierdie Wet dat ’n aangeleentheid— (a) voorgeskryf word, gelees word as ’n verwysing daarna dat die aangeleentheid in ’n gedragstandaard of ’n gesamentlike standaard voorgeskryf word; of (b) bepaal word, gelees word as ’n verwysing daarna dat die Owerheid die aangeleentheid skriftelik bepaal en die bepaling in die Register registreer.’’; en (c) deur subartikel (6) deur die volgende subartikel te vervang: ‘‘(6) Die verwysings in artikels 3(3) na ’n appèl aan die appèlraad ingestel by artikel 26 van die Wet op die Raad op Finansiële Dienste, moet gelees word as ’n verwysing na ’n heroorweging van die besluit deur die Tribunaal ingevolge die ‘Financial Sector Regulation Act’.’’. - 4 Verify source ↗
Artikels 2(2), 2(3), 4(5), 4(7), 7,
AI-assisted research summary: This provision completely repeals the listed articles and schedules.
4. Artikels 2(2), 2(3), 4(5), 4(7), 7, 8(1), 8(2), 9 – 35, 37 – 43, 48, 52, 53, 56, 59, 60, 67, 69 – 71 en 72(2A), en Bylaes 1 en 3 word hierby heeltemal herroep. - 5 Verify source ↗
Artikel 3 word gewysig—
AI-assisted research summary: A person may access certain documents, or copies/extracts, if the prescribed fees are paid.
5. Artikel 3 word gewysig— (a) deur in subartikel (2)(b) sub- paragraaf (i) deur die volgende subparagraaf te vervang: ‘‘(i) die gelde kragtens die ‘Financial Sector Regulation Act’ bepaal;’’; en (b) deur subartikel (4) deur die volgende subartikel te vervang: ‘‘(4) ’n Persoon kan, teen betaling van die gelde kragtens die ‘Financial Sector Regulation Act’ bepaal, insae kry tot alleenlik daardie dokumente deur die Owerheid by kennisgewing op die amptelike webwerf bepaal, wat die Owerheid kragtens hierdie Wet met betrekking tot ’n langtermynversekeraar of ’n tussenganger hou, of ’n afskrif van of uittreksels uit enige sodanige dokument kry.’’. This gazette is also available free online at www.gpwonline.co.za - 118 Verify source ↗
No. 41388
AI-assisted research summary: This text is a section heading and table header for amendments or repeals; it does not state any operative rule.
118 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 118 No. and year of Act Short title Extent of amendment or repeal - 6 Verify source ↗
The amendment of section 8—
AI-assisted research summary: A person generally may not act as an intermediary for a long-term policy unless the policy is underwritten only by long-term insurers or the Authority approves it.
6. The amendment of section 8— (a) by the substitution of the heading of the section for the following heading: ‘‘Prohibition on performance of certain acts, by certain per- sons’’; (b) by the substitution for subsection 3 of the following subsection: ‘‘(3) Subject to this Act, no person shall render services as intermediary, in relation to a long-term policy, unless— (a) long-term insurers are the only underwriters in terms of the long-term policy con- cerned; or (b) that person does so with the approval of the Authority.’’; and (c) by the insertion after subsection (3) of the following subsections: ‘‘(4) The Authority may from time to time by notice on the official website or, in the case of any particular person, by no- tice to such person, subject to such conditions as the Authority determines— (a) and specifies in the notice, grant to persons generally or to any particular person or category of persons the ap- proval contemplated in sub- section (3)(b) to such extent as may be specified by the Authority in the notice; and (b) at any time withdraw or amend any such approval to such extent as may be deter- mined by the Authority. (5) Subsection (3) shall not apply in the case of a long-term reinsurance policy unless and to the extent that the Authority so determines by notice in the Ga- zette.’’. - 7 Verify source ↗
The substitution of the heading of
AI-assisted research summary: This section changes the heading of Part IV to “RETURNS TO AUTHORITY”.
7. The substitution of the heading of Part IV for the following: ‘‘RETURNS TO AUTHORITY’’. This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 119 Versekeringswet, 2017 Wet No. 18 van 2017 119 No. en jaar van Wet Kort titel Omvang van wysiging of herroeping
Part
Part IV for the following:
- 6 Verify source ↗
Artikel 8 word gewysig—
AI-assisted research summary: A person generally may not act as an intermediary for a long-term policy unless an exception applies or the Authority has approved it.
6. Artikel 8 word gewysig— (a) deur die opskrif van die artikel deur die volgende opskrif te vervang: ‘‘Verbod op verrigting van sekere handelinge deur sekere persone’’; (b) deur subartikel (3) deur die volgende subartikel te vervang: ‘‘(3) Behoudens hierdie Wet mag geen persoon dienste as tussenganger in verband met ’n langtermynpolis lewer nie, tensy— (a) langtermynversekeraars die enigste onderskrywers met betrekking tot die betrokke langtermynpolis is; of (b) daardie persoon dit met die goedkeuring van die Owerheid doen.’’; en (c) deur die volgende subartikels na subartikel (3) in te voeg: ‘‘(4) Die Owerheid kan van tyd tot tyd by kennisgewing op die amptelike webwerf of, in die geval van ’n bepaalde persoon, by kennisgewing aan daardie persoon, behoudens die voorwaardes wat die Owerheid bepaal— (a) en in die kennisgewing spesifiseer, aan persone oor die algemeen of aan enige bepaalde persoon of kategorie persone die goedkeuring in subartikel (3)(b) beoog gee tot die mate deur die Owerheid in die kennis- gewing gespesifiseer; en (b) te eniger tyd sodanige goedkeuring wysig of intrek tot die mate deur die Owerheid bepaal. (5) Subartikel (3) is nie van toepassing op ’n langtermyn- herversekeringspolis nie tensy en tot die mate wat die Owerheid in die Staatskoerant bepaal.’’. - 7 Verify source ↗
Die opskrif van Deel IV word deur
AI-assisted research summary: Die opskrif van Deel IV word vervang met “OPGAWES AAN OWERHEID”.
7. Die opskrif van Deel IV word deur die volgende opskrif vervang: ‘‘OPGAWES AAN OWERHEID’’. This gazette is also available free online at www.gpwonline.co.za - 120 Verify source ↗
No. 41388
AI-assisted research summary: Section heading for an amendment or repeal entry relating to the Insurance Act, 2017.
120 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 120 No. and year of Act Short title Extent of amendment or repeal - 8 Verify source ↗
The amendment of section 36—
AI-assisted research summary: This section amends section 36 so the Authority can determine certain words by notice on its official website, generally or for a particular insurer, and can give notice if a return is incomplete or incorrect.
8. The amendment of section 36— (a) by the substitution in subsection (1) for the words following para- graph (c) of the following words: ‘‘determined by the Authority by notice on the official website, either generally or in relation to a particular insurer.’’; and (b) by the substitution in subsection (2) for the words preceding para- graph (a) of the following words: ‘‘If the Authority is satisfied that a return furnished to it in terms of subsection (1) is incomplete or incorrect, it may, by notice—’’. - 9 Verify source ↗
The substitution for section 45 of
AI-assisted research summary: A person must not give or offer valuable consideration to induce someone to enter into, continue, vary, or cancel a long-term policy, unless this is allowed under rules made under section 62.
9. The substitution for section 45 of the following section: ‘‘Prohibition on inducements 45. (1) Unless done in accordance with the rules prescribed under sec- tion 62, no person shall provide, or offer to provide, directly or indi- rectly, any valuable consideration as an inducement to a person to enter into, continue, vary or cancel a long-term policy. (2) Subsection (1) shall not apply in the case of a long-term reinsurance policy unless and to the extent that the Authority so deter- mines by notice in the Gazette.’’. - 10 Verify source ↗
The insertion after section 47 of
AI-assisted research summary: Independent intermediaries may not receive, hold, or deal with premiums for certain long-term policies, and a long-term insurer may not allow this unless authorised and compliant with regulations.
10. The insertion after section 47 of the following section: ‘‘Collection of premiums by intermediaries 47A. (1) No independent interme- diary shall receive, hold or in any other manner deal with premiums payable under a long-term policy entered into or to be entered into with a long-term insurer and no such long-term insurer shall permit such independent intermediary to so receive, hold or in any other manner deal with such premiums— (a) unless authorised to do so by the long-term insurer concerned as prescribed by regulation; and (b) otherwise than in accordance with the regulations. This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 121 Versekeringswet, 2017 Wet No. 18 van 2017 121 No. en jaar van Wet Kort titel Omvang van wysiging of herroeping - 8 Verify source ↗
Artikel 36 word gewysig—
AI-assisted research summary: This section amends Article 36 so the Authority may set certain wording by notice on its official website, generally or for a particular insurer, and may give notice if a statement is incomplete or incorrect.
8. Artikel 36 word gewysig— (a) deur in subartikel (1) die woorde wat op paragraaf (c) volg deur die volgende woorde te vervang: ‘‘deur die Owerheid bepaal by kennisgewing op die amptelike webwerf, hetsy oor die algemeen of met betrekking tot ’n bepaalde versekeraar.’’; en (b) deur in subartikel (2) die woorde wat paragraaf (a) voorafgaan deur die volgende woorde te vervang: ‘‘Indien die Owerheid tevrede is dat ’n opgawe ingevolge subartikel (1) aan hom of haar verstrek, onvolledig of nie korrek is nie, kan dit by kennisgewing—’’. - 9 Verify source ↗
Artikel 45 word deur die volgende
AI-assisted research summary: No person may give or offer valuable consideration as an inducement for another person to take out, keep, change, or cancel a long-term policy, unless it is done under rules made under section 62.
9. Artikel 45 word deur die volgende artikel vervang: ‘‘Verbod op aanmoedigings 45. (1) Tensy dit ooreenkomstig die reëls kragtens artikel 62 gemaak gedoen word, mag geen persoon regstreeks of onregstreeks enige geldwaardige teenprestasie verskaf, of aanbied om dit te verskaf, as ’n aanmoediging aan ’n ander persoon om ’n langtermynpolis, behalwe ’n herversekeringspolis, af te sluit, van krag te hou, te wysig of te kanselleer nie. (2) Subartikel (1) is nie van toepassing in die geval van ’n langtermynherversekeringspolis nie tensy en tot die mate wat die Owerheid by kennisgewing in die Staatskoerant aldus bepaal.’’. - 10 Verify source ↗
Die volgende artikel word na
AI-assisted research summary: Independent intermediaries may not receive, hold, or handle premiums payable under a long-term policy, and long-term insurers may not allow them to do so, unless authorised as prescribed by regulation.
10. Die volgende artikel word na artikel 47 ingevoeg: ‘‘Invordering van premies deur tussengangers 47A. (1) Geen onafhanklike tussenganger mag premies ontvang, hou of op enige ander wyse hanteer wat kragtens ’n langtermynpolis afgesluit met, of wat afgesluit staan te word met, ’n langtermynversekeraar betaalbaar is, en geen sodanige langtermynversekeraar mag sodanige onafhanklike tussenganger toelaat om sodanige premies te ontvang, te hou of op enige ander wyse te hanteer nie— (a) tensy daartoe gemagtig deur die betrokke langtermynversekeraar soos by regulasie voorgeskryf; en This gazette is also available free online at www.gpwonline.co.za - 122 Verify source ↗
No. 41388
AI-assisted research summary: For long-term reinsurance policies, subsection (1) does not apply unless the Authority decides otherwise by notice in the Gazette.
122 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 122 No. and year of Act Short title Extent of amendment or repeal (2) Subsection (1) shall not apply in the case of a long-term reinsurance policy unless and to the extent that the Authority so deter- mines by notice in the Gazette.’’. - 11 Verify source ↗
The substitution for section 49
AI-assisted research summary: This section replaces section 49 with a section titled “Limitation of remuneration.”
11. The substitution for section 49 of the following section: ‘‘Limitation of remuneration - 49 Verify source ↗
No consideration shall be—
AI-assisted research summary: Long-term insurers and independent intermediaries must not give or accept consideration for the specified services, except commission or remuneration allowed by the regulations and only in accordance with the regulations.
49. No consideration shall be— (a) offered or provided by a long- term insurer or a person on be- half of a long-term insurer to an independent intermediary or any other person; or (b) accepted by an independent in- termediary or other person, for rendering services referred to in the regulations, other than commission or remuneration contemplated in the regulations and otherwise than in accor- dance with the regulations.’’. - 12 Verify source ↗
The amendment of section
AI-assisted research summary: A long-term insurer may let another person handle specified policy tasks only under a written agreement and subject to regulatory limits.
12. The amendment of section 49A— (a) by the substitution for subsection (1) of the following subsection: ‘‘(1) A long-term insurer may in terms of a written agreement only, and in accordance with any requirements, limitations or prohibitions that may be pre- scribed by regulation, allow another person to do any one or more of the following on behalf of that insurer: (a) Enter into, vary or renew a long-term policy on behalf of that insurer; (b) determine the wording of a long-term policy; (c) determine premiums under a long-term policy; (d) determine the value of policy benefits under a long- term policy; (e) settle claims under a long- term policy.’’; and (b) by the insertion after subsection (1) of the following subsection: ‘‘(1A) Subsection (1) shall not apply in the case of a long- term reinsurance policy unless and to the extent that the Au- thority so determines by notice in the Gazette.’’. This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 123 Versekeringswet, 2017 Wet No. 18 van 2017 123 No. en jaar van Wet Kort titel Omvang van wysiging of herroeping (b) andersins as ooreenkomstig die regulasies. (2) Subartikel (1) is nie van toepassing nie in die geval van ’n langtermynversekeringspolis tensy en tot die mate wat die Owerheid by kennisgewing in die Staatskoerant aldus bepaal.’’. - 11 Verify source ↗
Artikel 49 word deur die volgende
AI-assisted research summary: Article 49 is replaced by a new article titled “Beperking op vergoeding” (Restriction on remuneration).
11. Artikel 49 word deur die volgende artikel vervang: ‘‘Beperking op vergoeding - 49 Verify source ↗
Geen teenprestasie—
AI-assisted research summary: A long-term insurer (or someone acting for it) must not offer or provide consideration to an independent intermediary or any other person, and an independent intermediary must not accept services except as allowed by the regulations.
49. Geen teenprestasie— (a) word deur ’n langtermyn- versekeraar of ’n persoon namens die langtermynversekeraar aangebied of verskaf aan ’n onafhanklike tussenganger of enige ander persoon; of (b) deur ’n onafhanklike tussenganger aanvaar vir dienste in die regulasies bedoel gelewer, behalwe kommissie of vergoeding in die regulasies beoog en andersins as ooreenkomstig die regulasies nie.’’. - 12 Verify source ↗
Artikel 49A word gewysig—
AI-assisted research summary: A long-term insurer may let another person act for it on certain policy matters, but only under a written agreement and subject to regulatory limits. The Authority may also decide by Gazette notice that this rule does not apply to long-term insurance policies, or applies only partly.
12. Artikel 49A word gewysig— (a) deur subartikel (1) deur die volgende subartikel te vervang: ‘‘(1) ’n Langtermynversekeraar kan, slegs ingevolge ’n skriftelike ooreenkoms, en ooreenkomstig enige vereistes, beperkings of verbiedinge wat by regulasie voorgeskryf word, ’n ander persoon toelaat om een of meer van die volgende namens daardie versekeraar te doen: (a) Namens daardie versekeraar ’n langtermynpolis afsluit, wysig of hernu; (b) die bewoording van ’n langtermynpolis bepaal; (c) premies kragtens ’n langtermynpolis bepaal; (d) die waarde van polisvoordele kragtens ’n langtermynpolis bepaal; (e) eise kragtens ’n langtermynpolis afhandel.’’; en (b) deur die volgende subartikel na subartikel (1) in te voeg: ‘‘(1A) Subartikel (1) is nie van toepassing nie in die geval van ’n langtermynversekeringspolis tensy en tot die mate wat die Owerheid by kennisgewing in die Staatskoerant aldus bepaal.’’. This gazette is also available free online at www.gpwonline.co.za - 124 Verify source ↗
No. 41388
AI-assisted research summary: This looks like a table header for section 124 of the Insurance Act, 2017, listing the act number and year and columns for amendment or repeal.
124 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 124 No. and year of Act Short title Extent of amendment or repeal - 13 Verify source ↗
The substitution for section 51
AI-assisted research summary: A long-term insurer’s policy benefits are suspended until the first required premium is received or approved payment arrangements are in place.
13. The substitution for section 51 of the following section: ‘‘Policy suspended until payment of first premium 51. (1) The undertaking of a long- term insurer to provide policy ben- efits under a long-term policy, shall be suspended until the long-term insurer has received, if there— (a) is to be one premium, that pre- mium; or (b) are to be two or more premi- ums, the first of those premi- ums, or until arrangements to its satisfac- tion have been made for the provi- sion of the premium by debit order, stop order, credit card or other in- strument approved by the Authority generally by notice on the official website. (2) Subsection (1) shall not apply to— (a) a fund policy in the case of a registered insurer; and (b) a life insurance policy written under the fund risk class of life insurance business as set out in Table 1 of Schedule 2 of the Insurance Act in the case of a licensed insurer. (3) Subsection (1) shall not apply in the case of a long-term reinsurance policy unless and to the extent that the Authority so deter- mines by notice in the Gazette.’’. - 14 Verify source ↗
The amendment of section 55 by
AI-assisted research summary: This section amends section 55 and replaces subsection (1) with a rule limiting when a long-term insurer may provide death-related policy benefits for an unborn child or a child under 14.
14. The amendment of section 55 by the substitution for subsection (1) of the following subsection: ‘‘(1) A long-term insurer shall not undertake to provide, or provide, policy benefits in terms of a long- term policy in the event of the death of an unborn, or of a minor before that minor attains the age of 14 years, the value of which, on its own or when added to the value of policy benefits or similar benefits which to its knowledge are to be provided in that event by a long- term insurer or a short-term insurer or a friendly society in terms of any policy, exceeds, in the event of the death— This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 125 Versekeringswet, 2017 Wet No. 18 van 2017 125 No. en jaar van Wet Kort titel Omvang van wysiging of herroeping - 13 Verify source ↗
Artikel 51 word deur die volgende
AI-assisted research summary: A long-term insurer may not provide policy benefits under certain long-term policies until the first premium is received or approved payment arrangements are in place.
13. Artikel 51 word deur die volgende artikel vervang: ‘‘Polis opgeskort totdat eerste premie betaal is 51. (1) Die onderneming van ’n langtermynversekeraar om kragtens ’n ander langtermynpolis as ’n fondspolis of ’n herversekeringspolis polisvoordele te verskaf, is opgeskort totdat die langtermynversekeraar, indien daar— (a) ’n enkelpremie moet wees, daardie premie; of (b) twee of meer premies moet wees, die eerste van daardie premies, ontvang het, of totdat reëlings ten genoeë van hom haar getref is vir die verskaffing van die premie by wyse van debietorder, stoporder, krediet- kaart of ander instrument deur die Owerheid in die algemeen by kennisgewing op die amptelike webwerf goedgekeur. (2) Subartikel (1) is nie van toepassing nie op— (a) ’n fondspolis in die geval van ’n geregistreerde versekeraar; en (b) ’n lewensversekeringspolis geskryf onder die fondsrisikoklas van lewensversekeringsbesigheid soos in Tabel 1 van Bylae 2 van die Versekeringswet uiteengesit in die geval van ’n gelisensieerde versekeraar. (3) Subartikel (1) is nie van toepassing in die geval van ’n langtermynpolis nie tensy en tot die mate wat die Owerheid aldus in die Staatskoerant bepaal.’’. - 14 Verify source ↗
Artikel 55 word gewysig deur
AI-assisted research summary: A long-term insurer may not promise or pay policy benefits for the death of an unborn child or a child under 14 under a life or assistance policy.
14. Artikel 55 word gewysig deur subartikel (1) deur die volgende subartikel te vervang: ‘‘(1) ’n Langtermynversekeraar mag nie ingevolge ’n lewenspolis of bystandspolis onderneem om polis- voordele te verskaf, of polisvoordele verskaf, in die geval van die afsterwe van ’n ongeborene, of van ’n minder- jarige voordat daardie minderjarige die ouderdom van 14 jaar bereik nie, waarvan die waarde opsigselfstaande of wanneer saamgevoeg by die waarde van polisvoordele wat tot sy kennis in daardie geval deur ’n langtermynversekeraar of ’n korttermynversekeraar of ’n onderlinge hulpvereniging ingevolge enige polis verskaf staan te word, in die geval van die afsterwe— This gazette is also available free online at www.gpwonline.co.za - 126 Verify source ↗
No. 41388
AI-assisted research summary: The text sets different amounts for unborn persons and minors by age, and says a proviso does not stop profit allocation on policies for minors if it does not exceed the profits on similar policies for non-minors.
126 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 126 No. and year of Act Short title Extent of amendment or repeal (a) of that unborn, or of that minor before he or she attains the age of six years, R20 000; or (b) of that minor after he or she attains the age of six years but before he or she attains the age of 14 years, R50 000, or such other amount prescribed by the Minister: Provided that this sec- tion shall not apply to or prohibit the allocation of profit in respect of such policies on the lives of minors, which allocation does not exceed the profits allocated to other such policies on the lives of persons who are not minors.’’. - 15 Verify source ↗
The amendment of section 62—
AI-assisted research summary: This section amends section 62 to allow rules about policyholder protection, disclosure of policy information, and wording that may or must not appear in policies.
15. The amendment of section 62— (a) by the substitution in subsection (1) for paragraph (a) of the follow- ing paragraph: ‘‘(a) prescribe rules not incon- sistent with this Act, aimed at ensuring for the purpose of policyholder protection that policies are entered into, executed and enforced in accordance with sound insurance prin- ciples and practice in the interests of the parties and in the public interest gen- erally;’’; (b) by the substitution in subsection (2) for paragraph (b) of the follow- ing paragraph: ‘‘(b) that the policy and particu- lar information in relation to a policy shall be made known in a particular man- ner to prospective policy- holder or policyholder, and what the legal conse- quences shall be if that is not done;’’; (c) by the substitution in subsection (2) for paragraph (e) of the follow- ing paragraph: ‘‘(e) for standardised wording, definitions or provisions that must be or may not be included in policies;’’; (d) by the insertion in subsection (2) after paragraph (e) of the follow- ing paragraphs: This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 127 Versekeringswet, 2017 Wet No. 18 van 2017 127 No. en jaar van Wet Kort titel Omvang van wysiging of herroeping (a) van daardie ongeborene, of van daardie minderjarige voordat hy of sy die ouderdom van ses jaar bereik, R20 000; of (b) van daardie minderjarige nadat hy of sy die ouderdom van ses jaar bereik, maar voordat hy of sy die ouderdom van 14 jaar bereik, R50 000, oorskry nie of die ander bedrag deur die Minister voorgeskryf: Met dien verstande dat hierdie artikel nie van toepassing is nie op die toedeling van winste of dit belet ten opsigte van sodanige polisse op die lewens van minderjariges, welke toedeling nie die winste oorskry wat toegedeel word aan ander sodanige polisse op die lewens van persone wat nie minderjariges is nie.’’. - 15 Verify source ↗
Artikel 62 word gewysig—
AI-assisted research summary: Section 62 is amended to address rules about policyholder protection, disclosure of policy details, standard wording in policies, and the consequences of failing to disclose required information.
15. Artikel 62 word gewysig— (a) deur in subartikel (1) paragraaf (a) deur die volgende paragraaf te vervang: ‘‘(a) reëls voorskryf wat nie met hierdie Wet onbestaanbaar is nie, wat daarop gemik is om vir die doel van polis- houerbeskerming te verseker dat polisse afge- sluit, verlei en afgedwing word ooreenkomstig gesonde versekerings- beginsels en -praktyk in die belang van die partye en in die openbare belang in die algemeen;’’; (b) deur in subartikel (2) paragraaf (b) deur die volgende paragraaf te vervang: ‘‘(b) dat die polis en besondere inligting met betrekking tot ’n polis op ’n besondere wyse aan ’n voorgenome polishouer of polishouer bekend gemaak moet word, en wat die regsgevolge is indien dit nie gedoen word nie;’’; (c) deur in subartikel (2) paragraaf (e) deur die volgende paragraaf te vervang: ‘‘(e) vir gestandaardiseerde bewoording, omskrywings of bepalings wat in polisse ingesluit moet word of nie mag word nie;’’; (d) deur in subartikel (2) die volgende paragrawe na paragraaf (e) in te voeg: This gazette is also available free online at www.gpwonline.co.za - 128 Verify source ↗
No. 41388
AI-assisted research summary: This notice says the President assented to Act No. 18 of 2017, the Insurance Act, 2017, and it is published for general information.
128 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 CONTINUES ON PAGE 130 - PART 2 This gazette is also available free online at www.gpwonline.co.za Vol. 631 Cape Town Kaapstad 18 January 2018 No. 41388 PART 2 OF 2 THE PRESIDENCY DIE PRESIDENSIE No. 32 18 January 2018 No. 32 18 Januarie 2018 It is hereby notified that the President has as- sented to the following Act, which is hereby published for general information:— Hierby word bekend gemaak dat die Presi- dent sy goedkeuring geheg het aan die onder- staande Wet wat hierby ter algemene inligting gepubliseer word:— Act No. 18 of 2017: Insurance Act, 2017 Wet No. 18 van 2017: Versekeringswet, 2017 ISSN 1682-5843 41388 9 7 7 1 6 8 2 5 8 4 0 0 3 curethe is Prevention 0800-0123-22 HELPLINE: AIDS REPUBLIC OF SOUTH AFRICAGovernment Gazette
Part
PART 2 OF 2
- 130 Verify source ↗
No. 41388
AI-assisted research summary: The provision lists matters that rules may cover for long-term insurance, including ads, claims and complaints handling, policy benefits, misrepresentation, premiums, disclosures, product design, intermediaries, data management, and policy termination.
130 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 128 No. and year of Act Short title Extent of amendment or repeal ‘‘(f) for principles and require- ments relating to any adver- tisement, brochure or simi- lar communication which relates to the business of a long-term insurer, or to a long-term policy; for principles and require- ments relating to claims handling, complaints han- dling and dispute resolution applicable to long-term insurers; for principles and require- ments relating to the man- ner and form in which policy benefits must be provided; for principles and require- ments relating to misrepre- sentation in relation to a long-term policy; for requirements relating to the validity of a contract under a long-term policy; for principles and require- ments relating to non-pay- ment of premiums and grace periods in relation to a long-term policy, and re- lated disclosures to policy- holders; for principles and require- ments relating to insurance product design and ongoing review of insurance product performance to ensure the fair treatment of policy- holders; for principles and require- ments relating to a long- term insurer’s dealings with intermediaries; for principles and require- ments relating to data man- agement in order to appro- priately identify, assess, measure and manage the conduct of business risks associated with its insur- ance business to ensure the fair treatment of policy- holders; and for principles and require- ments relating to the termi- nation of policies.’’; (g) (h) (i) (j) (k) (l) (m) (n) (o) This gazette is also available free online at www.gpwonline.co.za Versekeringswet, 2017 Wet No. 18 van 2017 GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 131 No. en jaar van Wet Kort titel 129 Omvang van wysiging of herroeping ‘‘(f) vir beginsels en vereistes met betrekking tot enige advertensie, brosjure of soortgelyke kommunikasie wat verband hou met die besigheid van ’n langtermynversekeraar, of op ’n langtermynpolis; (g) vir beginsels en vereistes met betrekking tot hantering van eise, hantering van klagtes en geskilbeslegting van toepassing op langtermynversekeraars; (j) (i) (h) vir beginsels en vereistes met betrekking tot die wyse en vorm waarop polisvoordele voorsien moet word; vir beginsels en vereistes wat verband hou met ’n wanvoorstelling met betrekking tot ’n langtermynpolis; vir vereistes met betrekking tot die geldigheid van ’n kontrak kragtens ’n langtermynpolis; (k) vir beginsels en vereistes met betrekking tot niebetaling van premies en grasietydperke met betrekking tot ’n langtermynpolis, en verwante openbaarmakings aan polishouers; vir beginsels en vereistes met betrekking tot ontwerp van versekeringsprodukte en voortgesette hersiening van versekeringsprodukprestasie om die regverdige behandeling van polishouers te verseker; (m) vir beginsels en vereistes met (l) betrekking tot ’n langtermynversekeraar se transaksies met tussengangers; (n) vir beginsels en vereistes met betrekking tot databestuur ten einde die hantering van besig- heidsrisiko’s wat met sy of haar versekeringsbesigheid gepaard gaan gepas te identifiseer, assesseer, meet en bestuur ten einde die regverdige behandeling van polishouers te verseker; en (o) vir beginsels en vereistes met betrekking tot die beëindiging van polisse.’’; (e) deur subartikel (3) deur die volgende subartikel te vervang: ‘‘(3) Reëls in subartikel (2) bedoel kan— (a) in die algemeen van toepassing wees; of This gazette is also available free online at www.gpwonline.co.za - 132 Verify source ↗
No. 41388
AI-assisted research summary: This provision amends Insurance Act rules so they may apply generally, be limited to certain kinds of policies or insurers, or distinguish between different insurers, policies, contracts, and services; it also says earlier Minister-made rules must be treated as prescribed here and stay valid until the Authority repeals or amends them.
132 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 130 No. and year of Act Short title Extent of amendment or repeal (e) by the substitution for subsection (3) of the following subsection: ‘‘(3) Rules referred to in sub- section (2) may— (a) apply generally; (b) be limited in application to a particular kind or type of policies, long-term insurers or long-term insurance busi- ness; or (c) differentiate between differ- ent kinds of insurers, poli- cies, contracts, and ser- vices.’’; and (f) by the substitution for subsection (5) of the following subsection: ‘‘(5) Any rule promulgated by the Minister prior to the com- mencement of the Financial Ser- vices Laws General Amendment Act, 2013, must be regarded as having been prescribed under this section, and remains valid and enforceable until repealed or amended by the Authority.’’. - 16 Verify source ↗
The substitution for subsection
AI-assisted research summary: Policy benefits under qualifying policies are protected from attachment, court execution, and becoming part of an insolvent estate, except for a debt secured by the policy.
16. The substitution for subsection (1) of section 63 of the following sub- section: ‘‘(1) Subject to subsections (2), (3) and (4), the policy benefits pro- vided or to be provided to a person under one or more— (a) in respect of a registered in- surer, assistance, life, disability or health policies; or (b) in the case of a licensed insurer, policies written under the risk, fund risk, credit life, funeral, life annuities, individual invest- ment or income drawdown class of life insurance business as set out in Table 1 of Schedule 2 of the Insurance Act, in which that person or the spouse of that person is the life insured and which has or have been in force for at least three years (or the assets acquired exclusively with those policy benefits) shall, other than for a debt secured by the policy— (i) during his or her lifetime, not be liable to be attached or sub- jected to execution under a judgment of a court or form part of his or her insolvent estate; or This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 133 Versekeringswet, 2017 Wet No. 18 van 2017 131 No. en jaar van Wet Kort titel Omvang van wysiging of herroeping (b) in toepassing beperk wees tot ’n bepaalde soort of tipe polisse, langtermynverseke- raars of langtermynverseke- ringsbesigheid; of (c) tussen verskillende soorte versekeraars, polisse, kontrakte en dienste onderskei.’’; en (f) deur subartikel (5) deur die volgende subartikel te vervang: ‘‘(5) Enige reël wat voor die inwerkingtreding van die Algemene Wysigingswet op Wette op Finansiële Dienste, 2013, deur die Minister in werking gestel is, moet geag word kragtens hierdie artikel gemaak te wees, en geldig en afdwingbaar bly totdat die Owerheid dit herroep of wysig.’’. - 16 Verify source ↗
Subartikel (1) van artikel 63 word
AI-assisted research summary: Policy benefits meeting the stated conditions are protected from attachment, execution, and insolvency treatment, with a limited secured-debt exception.
16. Subartikel (1) van artikel 63 word deur die volgende subartikel vervang: ‘‘(1) Behoudens subartikels (2), (3) en (4) is die polisvoordele wat aan ’n persoon verskaf word of verskaf staan te word kragtens een of meer— (a) ten opsigte van ’n geregistreerde versekeraar, bystands-, lewens-, ongeskiktheids- of gesondheidspolisse; of (b) in die geval van ’n gelisensieerde versekeraar, polisse geskryf onder die risiko, fondsrisiko, krediet- lewe, begrafnis, lewensannuïteite, individuele beleggings of inkomsteontrekkingsklasse van lewensversekeringsbesigheid soos uiteengesit in Tabel 1 van Bylae 2 van die Versekeringswet, waarin daardie persoon of die gade van daardie persoon die versekerde lewe is en wat vir ’n tydperk van minstens drie jaar van krag was (of die bates wat uitsluitlik met daardie polisvoordele verkry is), behalwe vir ’n skuld deur die polis verseker— (i) gedurende sy of haar lewe nie vatbaar vir beslaglegging of onderworpe aan uitwinning kragtens ’n vonnis van ’n hof nie of maak nie deel van sy of haar insolvente boedel uit nie; of (ii) by sy of haar afsterwe, indien hy of sy deur ’n gade, kind, stiefkind of ouer oorleef word, nie vir die doeleindes van die betaling van sy of haar skulde beskikbaar nie.’’. This gazette is also available free online at www.gpwonline.co.za - 134 Verify source ↗
No. 41388
AI-assisted research summary: If a person dies and leaves a spouse, child, stepchild, or parent, the item mentioned is not available to pay debts.
134 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 No. and year of Act Short title Extent of amendment or repeal 132 (ii) upon his or her death, if he or she is survived by a spouse, child, stepchild or parent, not be available for the purpose of the payment of his or her debts.’’. - 17 Verify source ↗
The substitution for section 66
AI-assisted research summary: People other than long-term insurers commit an offence if they break certain sections or give false information, and may be fined or imprisoned.
17. The substitution for section 66 of the following section: ‘‘Offences by persons other than long-term insurers 66. (1) A person, other than a long-term insurer, who— (a) contravenes or fails to comply with a provision of section 44(1), 45, 47 or 49; or (b) furnishes false information in relation to an application for approval under a provision of this Act, shall be guilty of an offence and liable on conviction to a fine not exceeding R5 million or to impris- onment for a period not exceeding five years, or to both such fine and such imprisonment. (2) A person, other than a long- term insurer, who contravenes or fails to comply with a provision of section 8(3) shall be guilty of an offence and liable on conviction to a fine not exceeding R10 million or to imprisonment for a period not ex- ceeding 10 years, or to both such fine and such imprisonment.’’. - 18 Verify source ↗
Section 68 is substituted for the
AI-assisted research summary: A person who does not file a required return, information, or document on time may be charged up to R5,000 for each day the failure continues, unless the Authority waives the penalty for good cause.
18. Section 68 is substituted for the following section: ‘‘Penalty for failure to furnish the Authority with returns etc. 68. (1) (a) A person who fails to furnish the Authority with a return, information or document, as pro- vided by this Act, within the speci- fied period or the period determined by the Authority by notice on the official website, or any extension thereof, shall, irrespective of any criminal proceedings instituted against the person under this Act, be liable to a penalty not exceeding R5 000 for every day during which the failure continues, unless the Au- thority, on good cause shown, waives the penalty or any part thereof. This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 135 Versekeringswet, 2017 Wet No. 18 van 2017 133 No. en jaar van Wet Kort titel Omvang van wysiging of herroeping - 17 Verify source ↗
Artikel 66 word deur die volgende
AI-assisted research summary: This provision replaces article 66 and creates offences for non-life insurers only for other persons who breach or fail to comply with specified notices, requests, applications, or section 8(3), or who give false information.
17. Artikel 66 word deur die volgende artikel vervang: ‘‘Misdrywe deur ander persone as langtermynversekeraars 66. (1) ’n Ander persoon as ’n langtermynversekeraar wat— (a) bepaling van ’n kennisgewing, lasgewing of versoek in artikel 44(1), 45, 47 of 49 bedoel oortree of versuim om daaraan te voldoen; of (b) vals inligting verstrek met betrekking tot ’n aansoek in artikel 9(1) bedoel of ’n aansoek om die goedkeuring van die Minister kragtens ’n bepaling van hierdie Wet, is aan ’n misdryf skuldig en by skuldigbevinding strafbaar met ’n boete van hoogstens R5 miljoen of gevangenisstraf vir ’n tydperk van hoogstens vyf jaar of met daardie boete sowel as daardie gevangenisstraf. (2) ’n Ander persoon as ’n langtermynversekeraar wat ’n bepaling van artikel 8(3) oortree of versuim om daaraan te voldoen, is aan ’n misdryf skuldig en by skuldigbevinding strafbaar met ’n boete van hoogstens R10 miljoen of gevangenisstraf vir ’n tydperk van hoogstens 10 jaar, of met daardie boete sowel as daardie gevangenisstraf.’’. - 18 Verify source ↗
Artikel 68 word deur die volgende
AI-assisted research summary: A person who fails to submit a required return, information, or document on time may be fined up to R5,000 for each day the failure continues, unless the Authority waives the fine for good cause.
18. Artikel 68 word deur die volgende artikel vervang: ‘‘Boete vir versuim om opgawes ens aan Owerheid te voorsien 68. (1) (a) ’n Persoon wat versuim om ’n opgawe, inligting of dokument, soos deur hierdie Wet bepaal, aan die Owerheid te voorsien binne die gespesifiseerde tydperk of die tydperk deur die Owerheid bepaal by kennis- gewing op die amptelike webwerf, of enige toevoeging daarvan, is vatbaar, ongeag enige strafregtelike verrig- tinge kragtens hierdie Wet teen die persoon ingestel, met ’n boete van hoogstens R5 000 vir elke dag waartydens die versuim voortduur, tensy die Owerheid, by die aanvoer van goeie gronde, afstand doen van die boete of enige gedeelte daarvan. This gazette is also available free online at www.gpwonline.co.za - 136 Verify source ↗
No. 41388
AI-assisted research summary: The Authority must adjust the specified amount annually to match the Consumer Price Index, and it may impose the penalty by notice after giving the person a chance to be heard.
136 No. 41388 GOVERNMENT GAZETTE, 18 JANUARY 2018 Act No. 18 of 2017 Insurance Act, 2017 134 No. and year of Act Short title Extent of amendment or repeal (b) The amount referred to in paragraph (a) must be adjusted by the Authority annually in order to reflect the Consumer Price Index, as published by Statistics South Africa. (2) A penalty contemplated in subsection (1) shall be imposed by notice by the Authority on the per- son concerned, and such imposition shall be preceded by the procedures determined by the Authority by no- tice on the official website to afford such person a reasonable opportu- nity to be heard, and shall take ef- fect on a date specified in such no- tice of the Authority which may be a date prior to the date of the notice. (3) A penalty so imposed shall constitute a debt due to the Author- ity and shall be recoverable by ac- tion by the Authority in any court having jurisdiction.’’. - 19 Verify source ↗
The amendment of section 72—
AI-assisted research summary: This section amends section 72 to let the Authority regulate certain services, set related requirements, and impose and recover fines by notice.
19. The amendment of section 72— (a) by the substitution in subsection (1) for paragraph (b) of the follow- ing paragraph: ‘‘(b) prescribing services per- formed by an independent intermediary or any other person on behalf of an insurer that will be subject to the regulations and set- ting out requirements that apply to such services;’’; (b) by the insertion in subsection (1) after paragraph (b) of the follow- ing paragraphs: (bB) ‘‘(bA) prohibiting or limiting classes of persons from performing any service prescribed in accordance with paragraph (b); prescribing governance, risk management, inter- nal controls, oversight and operational ability requirements in relation to a service prescribed in accordance with para- graph (b); prescribing requirements relating to notification to or approval by the Au- thority before entering (bC) This gazette is also available free online at www.gpwonline.co.za GOVERNMENT GAZETTE, 18 JANUARY 2018 No. 41388 137 Versekeringswet, 2017 Wet No. 18 van 2017 135 No. en jaar van Wet Kort titel Omvang van wysiging of herroeping (b) Die bedrag in paragraaf (a) bedoel moet jaarliks deur die Owerheid aangepas word ten einde die Verbruikersprysindeks te weerspieël, soos deur Statistiek Suid- Afrika gepubliseer. (2) ’n Boete in subartikel (1) beoog word by kennisgewing deur die Owerheid aan die betrokke persoon opgelê, en sodanige oplegging word vooruitgegaan deur die prosedures deur die Owerheid bepaal by kennisgewing op die amptelike webwerf om sodanige persoon ’n redelike geleentheid te gun om aangehoor te word, en sal van krag word op ’n datum in sodanige kennisgewing deur die Owerheid bepaal, wat ’n datum voor die datum van die kennisgewing mag wees. (3) ’n Opgelegde boete stel ’n skuld aan die Owerheid verskuldig daar en kan deur die Owerheid deur stappe voor enige hof met regsbevoegdheid verhaal word.’’.
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