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

Regulations

Regulations under the Long-term Insurance Act, 1998

Part 5 : Requirements and Limitations regarding the Values and Benefits of Policies (Section 54)

Part 5B : Investment Policies that started on or after 1 January 2009

5.10 Application of this Part 5B, and definitions

Purchase

This Part 5B applies to investment policies that started on or after 1 January 2009, and unless defined differently in this Part 5B or unless the context indicates otherwise, any word or expression to which a meaning has been assigned in Part 5A has the meaning assigned to it in that Part, and—

"causal event charge"

means a charge, other than an administration charge contemplated in regulation 5.12(3), occasioned by and pertaining to a causal event;

"charge"

means a charge stipulated in a policy, which charge is deductible in respect of that policy in accordance with its terms and its actuarial basis;

"charge percentage"

in relation to an investment policy, means 15% reduced on a straight-line basis to 0% over the charge term;

"charge term"

means the term during which the insurer may deduct a causal event charge, which term starts on the premium commencement date and is equal to;

(a)	in the case of a single premium policy the shorter of—

(i)	5 years; or

(ii)	the period until the date on which the policy will reach maturity;

(b)	in the case of a multiple premium policy—

(i)	10 years, if the premium term is 20 years or longer;

(ii)	half of the premium term, if the premium term is 10 years or longer but shorter than 20 years;

(iii)

5 years, if the premium term is 5 years or longer but shorter than 10 years; or

(iv)	the premium term, if the premium term is shorter than 5 years;

"excluded policy"

in respect of a—

(a)	registered insurer means a policy contemplated in paragraphs (a)(i), (ii), (iii) and (iv) of the definition "excluded policy" in Part 5A;

(b)	licensed insurer means a policy contemplated in paragraphs (b)(i) and (ii) of the definition "excluded policy" in Part SA;

[Definition substituted by regulation 7(f) of Notice No. 1015, GG 41942, dated 28 September 2018]

"investment policy"

means a single premium policy or a multiple premium policy, other than an excluded policy;

"payment date"

in relation to a premium, means the date on which that premium must be paid in terms of the policy;

"premium commencement date"

means the payment date of the only or first premium;

"premium term"

in relation to a multiple premium policy, means the shorter of the following periods:

(a)	the period for which the premiums are to be paid in terms of the policy - which period, as at the start of the policy, is specified in the policy or is determinable from its written provisions; or

(b)	the period for which the premiums are to be paid before a policy benefit is to be provided - excluding where the policy benefit is to be provided on account of a disability event, a health event or the death of a life insured; or

(c)	the period for which the premiums are to be paid before a consideration must or may be paid upon the full or partial surrender of the policy - if the amount of the consideration, as at the start of the policy, is specified in the policy or is determinable from its written provisions; or

(d)	the longest of the following periods:

(i)	10 years; or

(ii)	in the case of a fund member policy- the number of full years from the start of the policy to the 66th birthday of the life insured; or

(iii)

the number of full years from the start of the policy to the 75th birthday of the life insured;

"start"

in relation to a policy, means when the application for that policy is accepted by the insurer; and

"this Part"

means this Part 5B.