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Long Term Insurance Act, 1998 (Act No. 52 of 1998)

Regulations

Regulations under the Long-term Insurance Act, 1998

Part 3 : Remuneration

Part 3B : Investment policies that started on or after 1 January 2009

3.12 Maximum commission

 

(1) The maximum commission that may be paid in respect of a multiple premium policy, is an amount equal to 5% of each premium.

 

(2)

(a) Subject to paragraph (b), the maximum commission that may be paid in respect of a single premium policy is an amount equal to 3% of the premium,
(b) The maximum commission that may be paid in respect of a single premium policy—
(i) of which the policy benefit is an immediate annuity, is an amount equal to 1.5% of the premium;
(ii) that is a fund member policy which funds a retirement annuity fund, upon a transfer from a fund other than a retirement annuity fund, is an amount equal to 1.5% of the premium;
(iii) that is a fund member policy which funds a retirement annuity fund, upon a transfer from a retirement annuity fund, is nil;
(iv) that is a fund member policy which funds a preservation fund, upon a transfer from a fund other than a preservation fund, is an amount equal to 1.5% of the premium;
(v) that is a fund member policy which funds a preservation fund, upon a transfer from a preservation fund, is nil;
(vi) that is a fund member policy, which does not fund a retirement annuity fund or a preservation fund, upon a transfer from another fund, is an amount equal to 1.5% of the premium.