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Short-Term Insurance Act, 1998 (Act No. 53 of 1998)

Regulations

Regulations under the Short-term Insurance Act, 1998 (Act No. 53 of 1998)

Part 5 : Remuneration (Section 48)

Part 5B : Limitation on Remuneration for Binder Functions

5.6 Application of this Part 5B, and definitions

 

(1) This Part 5B applies to remuneration provided by an insurer or any person on its behalf to a person for rendering a binder function.

 

(2) In this Part 5B, unless the context indicates otherwise, any word or expression to which a meaning has been assigned in Part 6 has the meaning assigned to it in that Part, and—

 

"cell structure"

means an arrangement under which a person (cell owner)—

(a) holds an equity participation in a specific class or type of shares of an insurer, which equity participation is administered and accounted for separately from other classes or types of shares;
(b) is entitled to a share of the profits and liable for a share of the losses as a result of the equity participation referred to in paragraph (a), linked to profits or losses generated by the Insurance business referred to in paragraph (c); and
(c) places insurance business with the insurer referred to in paragraph (a), which business is contractually ring- fenced from the other insurance business of that insurer for as long as the insurer is not in winding -up.

 

[Regulation 5.6 inserted by regulation 5(d) of Act No. 1439 of 2017]

 

 


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