Long Term Insurance Act, 1998 (Act No. 52 of 1998)RulesPolicyholder Protection Rules (Long-term Insurance), 2017Chapter 3 : ProductsRule 3 : Credit life insurance |
| 3.1 | Mandatory credit life Insurance |
| 3.1.1 | An insurer must not provide a mandatory credit life insurance policy to a policyholder, unless that policy and the costs associated with that policy comply with any relevant credit life insurance regulations made by the Minister of Trade and Industry under section 171 of the National Credit Act. |
| 3.1.2 | Rule 3.1.1 only applies to new policies. |
| 3.2 | Substitution of credit life Insurance policy |
| 3.2.1 | An insurer must, where a policyholder or member of a group scheme informs that insurer, or the insurer otherwise should reasonably be aware, that the policyholder or member wishes to, or has, exercised the right under subsection 106(4)(a) of the National Credit Act to substitute any other credit life insurance with a policy issued by the insurer, assist the policyholder or member, in relation to the substituted policy, to comply with— |
| (a) | any demands of a credit provider under section 106(6) of the National Credit Act; or |
| (b) | regulation 7 of the credit life insurance regulations made under the National Credit Act. |
| 3.2.2 | An insurer must, where an insurer is aware that a policyholder or member of a group scheme has substituted any other credit life insurance with a policy issued by that insurer, in writing and within a reasonable time of being requested to do so by the credit provider confirm to the credit provider that the policy is in force and that the credit provider is recorded as the beneficiary, cessionary or loss payee on the policy. |