3.1 Introduction PHPRSTI
An insurer must in developing products must make use of adequate information on the needs of identified types, kinds or categories of policyholders or members. An insurer must in developing products must undertake a thorough assessment, by competent persons with the necessary skills, of the main characteristics of a new product, the distribution methods intended […]
2.5: Review of policies and procedures
An insurer must regularly review its policies and procedures referred to in this rule and document any changes thereto.
2.4: Suitable advice
Where advice is provided by an intermediary other than the insurer’s representative, the insurer must take reasonable steps to mitigate the risk of unsuitable advice. These steps should consider the nature of the business relationship between the insurer and the intermediary and any likelihood that such relationship may potentially influence the advice provided.
2.3: Group Schemes
A. Definitions Group scheme in respect of a registered insurer means a scheme or arrangement which provides for theentering into one or more policies, in terms of which two or more persons without an insurable interest in each other, for the purposes of the scheme, are the lives insured. Group scheme in respect of a […]
2.2: General Duties
An insurer, at all times, must act with due skill, care and diligence when dealing with policyholders. An insurer must in any engagement with a policyholder, and in all communications and dealings with a policyholder, act honorably, professionally and with due regard to the fair treatment of the policyholder. An insurer must at the start […]
2.1 Introduction PHPRSTI
Rule 1 of the policyholder protection rules considers the requirements related to the fair treatment of policyholders. For purpose of this rule, policyholder includes a potential policyholder and the member of a group scheme includes a potential member of a group scheme. Potential policyholder means any of the following: A person who has applied to […]
1.5: Applicable definitions
The subsections following consider some of the concepts defined the policy holder protection rules that are important for understanding and applying these rules. Advise: Advise has the meaning assigned to it by the Financial Advisory and Intermediary Services (FAIS) Act. Beneficiary: The definitions differs in relation to registered and licenses insurers. In respect of a […]
1.4: Licensed Versus Registered Insurers
The PPR’s define certain concepts differently for licensed and registered insurers. The Insurance Act makes provision for the licensing of insurers and not the registration. The prudential authority has two years from the effective date of the Insurance Act to convert al insurance registrations to licenses. Therefore, a registered insurer is an insurer previously authorised […]
1.3: Scope of the PPR’s
The PPR’s are applicable to policy holders that are natural persons and juristic persons whose asset value or annual turnovers is less than R2 million. The rules, except were indicated otherwise, do not apply to reinsurance policies.
1.2: Application
The policyholder protection rules (PPRs) are regulations applicable to short-term insurance companies and to some extend intermediaries. These rules are over and above the provisions of the Financial Advisory and Intermediary Services (FAIS) Act and the General Code of Conduct. Nothing in the PPR’s can be used by an insurance company to sidestep the requirement […]