| (1) |
Despite regulation 6.2(1),— |
| (a) |
an insurer may conclude a hold-covered binder agreement with a mandated intermediary or a non-mandated intermediary, if— |
| (i) |
that agreement provides for the entering into policies on an interim and limited-in-time basis only; and |
| (ii) |
the legal liability of the insurer under such policies lapses after a maximum period of 96 hours in respect of personal lines business and 30 days in respect of commercial lines business, unless the insurer, in respect of each policy, confirms its legal liability under that policy in writing prior to the expiry of such period; and |
| (iii) |
no fee for the services rendered under the hold-covered binder agreement is payable to the mandated intermediary or non-mandated intermediary by the insurer. |
| (2) |
Despite regulation 6.2(2) or (3), the Authority may on application from an insurer referred to in regulation 6.2(2) or (3) or an insurer that is the holding company or associate of more than one person referred to in regulation 6.2(2) or (3) exempt, subject to such conditions as the Authority may impose, the insurer or such person from regulatio 6.2(2) or (3), if the Authority is satisfied that— |
| (a) |
any actual or potential conflict of interest is effectively mitigate; |
| (b) |
the delivery of fair outcomes to policyholders will not be impeded; and |
| (c) |
the person has the operational and financial capability to perform the binder function or to conduct such business. |
(3)
| (a) |
Regulations 6.3(1)(f) does not apply to a hold-covered binder agreement concluded under subregulation (1)(a). |
| (b) |
For purposes of a hold-covered binder agreement, the timeframes referred to under regulations 6.3(1 )(p) and (s) are 96 hours in respect of personal lines business and 30 days in respect of commercial lines business. |
[Regulation 6.5 substituted by regulation 6(z) of Notice No. 1439, GG 41334, dated 15 December 2017]
Special Investigating Units and Special Tribunals Act, 1996
