Housing Development Agency Act, 2008
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 5 : Remuneration (Section 48)Part 5B : Limitation on Remuneration for Binder Functions5.7 General principles for determining remuneration for binder functions |
| (1) | When remuneration is provided by or on behalf of an insurer to any person for rendering a binder function— |
| (a) | such remuneration must be reasonable and commensurate with the actual cost of performing the binder function, taking into account the nature of the function and the resources, skills and competencies reasonably required to perform it; |
| (b) | the payment of such remuneration must not result in the person being remunerated more than once for performing a similar function on behalf of the insurer and /or policyholder; |
| (c) | any actual or potential conflicts between the Interests of policyholders and the interests of the person receiving the remuneration must be effectively mitigated; and |
| (d) | the payment of such remuneration must not impede the delivery of fair outcomes to policyholders. |
[Regulation 5.7 inserted by regulation 5(d) of Act No. 1439 of 2017]
