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In terms of the Short-terms Insurance Act, a binder agreement is an outsourcing agreement between an insurer and which of the following types of third-parties?
i. An insurance broker.
ii. A reinsurance company.
iii. An administrator.
iv. An underwriter.
Which of the following statements concerning binder functions and intermediary services are correct?
i. Binder functions are always performed as the agent of the insurer.
ii. Intermediary services are always performed as the agent of the insurer.
iii. Binder functions constitute any acts that results into the entering into, varying or renewing a policy.
iv. Intermediary services constitute any acts that results into the entering into, varying or renewing a policy.
The enhancement of the legislative framework relating to binder agreements commenced with the enactment of which of the following laws or regulations?
The binder regulations are the result of robust and inclusive consultation with interested and affected stakeholders.
Which of the following statements concerning regulation of binder agreements are correct?
i. The Short-term Insurance Act provides for the maximum issues necessary to regulate binder agreements.
ii. The short-term Insurance Act provides for the minimum issues necessary to regulate binder agreements.
iii. The insurance regulations supplement the Short-term Insurance Act by prescribing detailed and technical rules.
iv. The insurance regulations supplement the Short-term Insurance Act by bestowing enforcement powers onto the regulator.
A short-term insurer or a Lloyd’s underwriter may, in terms of a written agreement only
allow another person to perform which of the following functions on their behalf?
i. Determine the wording of a short-term policy.
ii. Renew a short-term policy, including a reinsurance policy.
iii. Determine the value of policy benefits under a short-term policy.
iv. Determine the wording and premiums of a short-term insurance policy.
Which ONE of the following provisions must be included in a binder agreement, in terms of the Short-term Insurance Act?
Which of the following statements concerning binder agreements as prescribed under the Short-term Insurance Act are correct?
i. A binder agreement may not authorise the other person to add an amount to any gross premium.
ii. A binder agreement may authorise the other person to add an amount to any gross premium.
iii. A binder agreement may not allow for that person to participate in the profits attributable to the policies.
iv. A binder agreement may allow for that person to participate in the profits attributable to the policies.
What is an entity that holds a written agreement from a potential policyholder or policyholder that authorises that intermediary, without having to obtain the prior approval of that potential policyholder or policyholder, to perform any act, including termination, in relation to a policy, that legally binds that potential policyholder known as?
What percentage of voting rights are seen as a qualifying stake under the Regulations issued in terms of the Short-term Insurance Act?
Under the Regulations issued in terms of the Short-term Insurance Act, an insurer may have a binder agreement with one or more of which of the following persons?
i. A Mandated Intermediary
ii. An Administration House
iii. A Non-mandated Intermediary.
iv. An Underwriting Manager.
Which of one of the following statements In terms of the Regulations issued in terms of the Short-term Insurance Act concerning requirements, limitations and prohibitions relating to binder holders is correct?
State if the following statement is true or false.
Under the Regulations issued in terms of the Short-term Insurance Act, an insurer must before entering into a binder agreement and at all times thereafter Have appropriate contingency plans in place to address any shortcomings it may identify that could lead to if not being satisfied as to the matters, including where the binder holder is unable to provide the insurer with the relevant data in the appropriate format.
In terms of the Regulations, what aspects must be specified in a binder agreement in addition to those matters provided for under the Short-term Insurance Act?
i. Specify the level and standard of service that must be rendered to a policyholder.
ii. Specify the percentage of remuneration to be paid by the insurer to the binder holder.
iii. Specify if the binder holder is a non-mandated intermediary or an underwriting manager.
iv. Require that the binder holder comply with applicable laws.
Under the Regulations issued in terms of the Short-term Insurance Act, a binder agreement concluded with a non-mandated intermediary may not authorise the binder holder which of the following?
i. Refuse to renew a policy.
ii. Reject or refuse to pay a claim for policy benefits or a part thereof.
iii. Terminate, repudiate or deny an insurer’s liability to provide policy benefits under a policy
iv. Declare a policy void.
Please complete the blanks. Under the Regulations issued in terms of the Short-term Insurance Act, an insurer may conclude a hold-covered binder agreement with a mandated intermediary or a non-mandated intermediary, if The legal liability of the insurer under such policies lapses after a maximum period of ___________ in respect of personal lines business and ______ 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.
Under the Regulations issued in terms of the Short-term Insurance Act, a binder agreement concluded with a non-mandated intermediary may not authorise the binder holder which of the following?
i. Such remuneration must be reasonable and commensurate with the actual cost of performing the binder function, taking into account the nature of the function.
ii. 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.
iii. Any actual or potential conflicts between the interests of policyholders and the interests of the person receiving the remuneration must be effectively mitigated.
iv. The payment of such remuneration must not impede the delivery of fair outcomes to policyholders.
Max Underwriting Managers have a binder agreement that stipulated the binder functions to be performed below. What is the maximum percentage fee payable to Max Underwriting Managers under the Regulations issued in terms of the Short-term Insurance Act?
State if the following statement is true or false Under the Regulations issued in terms of the Short-term Insurance Act.
A non-mandated intermediary, in respect of the services rendered under the binder agreement, may share in the profits of the insurer attributable to the type or kind of policies referred to in the binder agreement
Which one of the following statements regarding the amended regulations issued in terms of the Short-term Insurance Act is correct?
The REready! Pack is designed to be used to prep for RE1 or RE5 or both.
The content for RE1 and RE5 overlaps as both exams test your practical knowledge of the FAIS Act and FICA.
The class is not a facilitator that is going to read the law out of a book for you.
Anna Bouhail contextualizes the content and creates an understanding of basic concepts related to law, the industry, and competency exams.
The class is structured to also instill compliance skills allowing the learner to answer practical questions.