4.5 Variation and Renewal of a Microinsurance Policy
The terms, conditions or provisions of a microinsurance policy or funeral policy may not be changed or varied during the first 12 months after inception of the policy, unless the microinsurer can demonstrate that there are reasonable actuarial grounds to change or vary the terms, conditions or provisions of the microinsurance policy or the variation […]
4.4 Structure of Policy Benefits
A microinsurance policy may not have a contract term of more than 12 months. The value of the policy benefits under a microinsurance policy may not exceed the maximum amounts as prescribed by the Prudential Authority. A microinsurance policy must, upon expiry of its contract term, either be automatically renewed or terminated in accordance with […]
4.3 Use of the Term Microinsurance
An insurer, other than a microinsurer, or any person acting on behalf of that insurer may not use the term microinsurance or any derivative thereof in respect of a policy or in any advertisement in respect of a policy.
4.2 Application
This rule, excepts where stated otherwise, applies to any microinsurance policy and any funeral policy and applies concurrently with, and in addition to, all other rules set out in the policyholder protection rules. Policies entered into before these rules takes effect that meet the description of the funeral class of life insurance business as set […]
4.1 Definitions
Rule 2A sets out the product rules pertaining to microinsurance and funeral policy product standards. The concept of microinsurance was introduced by the Insurance Act and this Act defines a microinsurance policy as a life insurance policy entered into by a microinsurer. A microinsurer is only limited to conduct microinsurance business under the Insurance Act. […]
3.9 Validity of Contracts
A policy is not void merely because a provision of a law, including a provision of the Long-term Insurance Act or the Insurance Act, has been contravened or not complied with in connection with that policy. If a person has entered into a policy with an insurer who was, in terms of the Long-term insurance […]
3.8 Void Provisions
A provision of a policy is void to the extent that it provides expressly or by implication – That in connection with any claim made under the policy, the policyholder or claimant may be obliged to undergo a polygraph, lie detector or truth verification test, or any other similar test or procedure which is furnished […]
3.7 On-going Review of Product Performance
An insurer must on an ongoing basis monitor a product, related distribution methods and disclosure documents after the launch of a product, considering any event that could materially affect the potential risk to targeted policyholders or members, in order to assess whether – The product and its related disclosure documents remain consistent with the needs […]
3.6 Premium Reviews
A premium payable under a policy may only be reviewed if the policy provides for a review and states the frequency at which and the circumstances in which a review will take place. This does not apply to existing policies. Where a policy provides for a review, an insurer may only undertake the review at […]
3.5 Determining Premiums and Excesses
A premium payable under a policy must reasonably balance the interests of the insurer and the reasonable benefit expectations of a policyholder or member and be based on assumptions that are realistic and that the insurer reasonably believes are likely to be met over the term of the policy. An insurer may not charge a […]