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"policy of insurance"

means a policy of insurance—

(a) entered into between the Corporation, acting within the general ambit of authority granted in terms of an agreement contemplated in section 2(1), and a person carrying on business in the Republic; and
(b) that provides for the insurance on behalf of the Government of a contract subject to risk as contemplated in section 2;

[Definition inserted by section 1(c) of Act 34 of 2002.]