Special Investigating Units and Special Tribunals Act, 1996
R 385
Long Term Insurance Act, 1998 (Act No. 52 of 1998)RegulationsRegulations under the Long-term Insurance Act, 1998Part 5 : Requirements and Limitations regarding the Values and Benefits of Policies (Section 54)Part 5B : Investment Policies that started on or after 1 January 20095.10 Application of this Part 5B, and definitions |
This Part 5B applies to investment policies that started on or after 1 January 2009, and unless defined differently in this Part 5B or unless the context indicates otherwise, any word or expression to which a meaning has been assigned in Part 5A has the meaning assigned to it in that Part, and—
"causal event charge"
means a charge, other than an administration charge contemplated in regulation 5.12(3), occasioned by and pertaining to a causal event;
"charge"
means a charge stipulated in a policy, which charge is deductible in respect of that policy in accordance with its terms and its actuarial basis;
"charge percentage"
in relation to an investment policy, means 15% reduced on a straight-line basis to 0% over the charge term;
"charge term"
means the term during which the insurer may deduct a causal event charge, which term starts on the premium commencement date and is equal to;
| (a) | in the case of a single premium policy the shorter of— |
| (i) | 5 years; or |
| (ii) | the period until the date on which the policy will reach maturity; |
| (b) | in the case of a multiple premium policy— |
| (i) | 10 years, if the premium term is 20 years or longer; |
| (ii) | half of the premium term, if the premium term is 10 years or longer but shorter than 20 years; |
| (iii) | 5 years, if the premium term is 5 years or longer but shorter than 10 years; or |
| (iv) | the premium term, if the premium term is shorter than 5 years; |
"excluded policy"
in respect of a—
| (a) | registered insurer means a policy contemplated in paragraphs (a)(i), (ii), (iii) and (iv) of the definition "excluded policy" in Part 5A; |
| (b) | licensed insurer means a policy contemplated in paragraphs (b)(i) and (ii) of the definition "excluded policy" in Part SA; |
[Definition substituted by regulation 7(f) of Notice No. 1015, GG 41942, dated 28 September 2018]
"investment policy"
means a single premium policy or a multiple premium policy, other than an excluded policy;
"payment date"
in relation to a premium, means the date on which that premium must be paid in terms of the policy;
"premium commencement date"
means the payment date of the only or first premium;
"premium term"
in relation to a multiple premium policy, means the shorter of the following periods:
| (a) | the period for which the premiums are to be paid in terms of the policy - which period, as at the start of the policy, is specified in the policy or is determinable from its written provisions; or |
| (b) | the period for which the premiums are to be paid before a policy benefit is to be provided - excluding where the policy benefit is to be provided on account of a disability event, a health event or the death of a life insured; or |
| (c) | the period for which the premiums are to be paid before a consideration must or may be paid upon the full or partial surrender of the policy - if the amount of the consideration, as at the start of the policy, is specified in the policy or is determinable from its written provisions; or |
| (d) | the longest of the following periods: |
| (i) | 10 years; or |
| (ii) | in the case of a fund member policy- the number of full years from the start of the policy to the 66th birthday of the life insured; or |
| (iii) | the number of full years from the start of the policy to the 75th birthday of the life insured; |
"start"
in relation to a policy, means when the application for that policy is accepted by the insurer; and
"this Part"
means this Part 5B.
