Protection of Businesses Act, 1978
R 385
Short-Term Insurance Act, 1998 (Act No. 53 of 1998)RegulationsRegulations under the Short-term Insurance Act, 1998 (Act No. 53 of 1998)Part 4 : Authorisation of and Requirements for Collection of Premiums by Intermediaries (Section 45)4.1 Authorisation |
| (1) | A short-term insurer may, subject to subregulation (2), in writing authorise an independent intermediary to receive, hold or in any other manner deal with premiums payable to it under short-term policies. |
| (2) | A person shall not be authorised, as contemplated in subregulation (1), unless that person has provided security, to the extent and in accordance with the requirements of this Part, in respect of his or her obligations in terms of regulation 4.3 by means of— |
| (a) | a guarantee policy issued by a short-term insurer registered to do so in accordance with a guarantee facility created by short-term insurers generally for the purposes of providing such security; or |
| (b) | a contract which, but for the fact that the undertaking concerned is given by a bank, would be a guarantee policy, |
and under which policy benefits are to be provided in the event of the failure of that person to meet those obligations.
