The security referred to in regulation 4.1(2) shall—
| (a) |
be in such form as prescribed by the Authority; |
| (b) |
be in favour of the South African Insurance Association (Association Incorporated under Section 21) or, if the Authority so determines, in favour of the Authority, for the benefit of all of the short-term insurers with whose authority the premiums are received, held or in any other manner dealt under by the person concerned; |
| (c) |
be provided, before any premium is received, held or in any other manner dealt with by the person concerned; |
| (d) |
be provided, and renewed annually, in respect of each financial year of the person concerned; |
| (e) |
subject to subparagraph (f), be for an amount, being not less than R100 000 and not exceeding R50 000 000, equal to— |
| (i) |
in the financial year in which the person concerned is first authorised to receive, hold or in any other manner deal with premiums and in the immediately following financial year, 30 per cent of a reasonable estimate of the total premiums which that person expects to receive in a full financial year; and |
| (ii) |
in every subsequent financial year of the person concerned, 30 per cent of the total premiums actually received, held or in any other manner dealt with by that person in the previous financial year; and |
| (f) |
if the businesses of two or more independent intermediaries are amalgamated, be for an amount determined by reference to the total premiums received, held or in any other manner dealt with in the financial year concerned by the businesses so amalgamated, |
and, for the purposes of this regulation, if the person concerned does not have a particular period of 12 months which constitutes his or her financial year, the reference to a financial year shall be construed as a reference to a period of 12 months.
Public Service Commission Act, 1997
