Assessment: Policyholder Protection Rules: Short-term Insurance 21_22

Which ONE of the following statements with regard to the short-term insurance policy holder protection rules (PPRs) is correct?

Please complete the sentence.

The short-term insurance policy holder protection rules are applicable to policy holders that are natural persons and juristic persons whose asset value or annual turnovers is less than-

A potential policy holder as defined in the short-term insurance policy holder protection rules includes which of the following?

i. A person who has applied to an insurer to become a policyholder.
ii. A person who has approached an intermediary to become a policyholder.
iii. A person who has been solicited by an intermediary to become a policyholder.
iv. A person who has received advertising in relation to any policy of an insurer.

Which one of the following statements correctly define a group scheme in respect of a registered insurer as per the short-term insurance policy holder protection rules?

Which of the following statements with regard to the product rules as provided for in the short-term insurance policy holder protection rules are correct?

A client enters into a monthly policy with an insurer. The start date of the policy is the 1st of March with the premium due by the 1st of each month. The client submits a claim not subject to any waiting period on the 7th of March but only make the payment of the premium on the 10th of March.
Does the insurer under the short-term insurance policy holder protection rules have an obligation to honour the claim and state a reason for your answer?

Complete the sentence.

Under to the short-term insurance policy holder protection rules, a microinsurance policy MAY not-

Complete the sentence.

Under to the short-term insurance policy holder protection rules, a microinsurance policy, underwritten under the accident and health class of non-life insurance business, in respect of which policy -benefits are payable on the happening of a death, disability or health event resulting from natural causes, may NOT impose a waiting period exceeding the shorter of-

Jan Max entered into a microinsurance policy with a benefit of R5 000.
What is the maximum excess that the insurer can impose on Jan in terms of this policy under the short-term insurance policy holder protection rules?

Jan Max entered into a microinsurance policy with a waiting period of 3 months. The policy lapsed after the second month due to non-payment. Within 1 month of the policy lapsed, Jan entered into a new policy of the same kind with the same insurer.
What is the maximum waiting period that can be imposed on Jan in terms of the short-term insurance policy holder protection rules.

Which ONE of the following statement with regard to advertising as stipulated in the short-term insurance policy holder protection rules is correct?

An insurer uses a current policy holder to endorse a policy in an advertisement.
Which of the following must the advertisement adhere to according to the short-term insurance policy holder protection rules?

The impact that the no-claim bonus has on the premium is negligible, if the cost of the no-claim bonus comprises less than-

Which of the following statements with regard to the disclosures that must be made to a policyholder after inception of a policy under the short term insurance policy holder protection rules are correct?

i. The information must be provided to the policyholder in a format which is which is clearly distinguishable from the policy.
ii. The information must be provide to the policyholder no later than 31 days after commencement of the policy.
iii. Where such information was previously provided in a quotation, it must be confirmed whether the information remains applicable in relation to the policy.
iv. The information must include the timing and manner in which policy benefits may be made available to the policyholder or a beneficiary.

Please complete the sentence.

Roger changed the level of cover under a policy. The insurer, under the short-term insurance policy holder protection rules, must provide Roger with information on the terms and conditions relating to change no later than-

Please state if the following statement is true or false.

An insurer must at the written request of an intermediary that is authorised in writing by a policyholder or a member of a group scheme, provide that intermediary or the policyholder or member of a group scheme with the information referred to in the authorisation, within a reasonable time after receipt of the request, irrespective of the fact that the intermediary does not have an intermediary agreement with that insurer.

Roger entered into a policy with Bix Insurer on the 1 June 2010. Roger made a claim on the policy on 1 October 2010. The policy terminated on 31 May 2011.
Until when must Bix Insurers keep the records relating to the claim?

Which one of the following statements with regard to the requirement relating to claims management under the short term insurance policy holder protection rules are correct?

i. A claim received by a representative of the insurer is deemed to have been received by the insurer itself.
ii. An insurer must within 15 days of taking a decision regarding a claim, notify the claimant in writing of the decision.
iii. The claimant must at least have 90 days from receipt of decision regarding a claim, make representation to the insurer in respect of the decision.
iv. An insurer must record a claim by no later than the first business day after the date that the initial claim is received.

Who is responsible for the effective complaints management within an insurer under the short-term insurance policy holder protection rules?

Please state if the following statement is true or false.

If a policyholder terminates or intends to terminate a group scheme policy, the insurer of the policy being terminated must notify the Authority of the termination or intended termination as soon as reasonably possible after becoming aware of the termination or proposed termination.