means a policy of insurance—
| (a) | entered into between the Corporation, acting within the general ambit of authority granted in terms of an agreement contemplated in section 2(1), and a person carrying on business in the Republic; and |
| (b) | that provides for the insurance on behalf of the Government of a contract subject to risk as contemplated in section 2; |
[Definition inserted by section 1(c) of Act 34 of 2002.]