Public Service Commission Act, 1997
R 385
Short-Term Insurance Act, 1998 (Act No. 53 of 1998)Policyholder Protection RulesPart V : General12. Termination and alteration of certain agreements and relationships |
| 12.1) | No termination of any agreement contemplated in rule 11.1(a) and (b) between any insurer and an independent intermediary, irrespective of whether the termination has been mutually agreed upon, or is effected by any one party by notice to the other, shall be effective unless— |
| a) | all policyholders holding still current policies entered into by that insurer through the intermediation of that independent intermediary, have beforehand been in writing informed of the termination by either the insurer or the independent intermediary, or by both; and |
| b) | both such insurance parties are beforehand satisfied that all reasonable steps have been taken for such information to reach all such policyholders. |
| 12.2) | The provisions of rule 12.1 shall, with the necessary changes, apply in respect of any change occurring in the status or relationship, or authority or mandate, of any independent intermediary, referred to in Rule 5.1(b). |
