Long Term Insurance Act, 1998 (Act No. 52 of 1998)RulesPolicyholder Protection Rules (Long-term Insurance), 2017Chapter 3 : ProductsRule 6 : Determining premiums |
| 6.1 | 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. |
| 6.2 | An insurer may not charge a policyholder or member any fee or charge in addition to the premium payable under the policy. |
| 6.3 | The fee referred to in rule 6.2 does not include a fee or charge— |
| (a) | deducted from the policy's investment value or policy benefits, where the deduction is explicitly provided for in the policy; or |
| (b) | that is permitted in terms of legislation. |
| 6.4 | Any fee referred to in rule 6.3 must be clearly and prominently disclosed to the policyholder or member in accordance with rule 10.15 and before the policy is entered into. |
| 6.5 | This rule only applies to new policies and changes to the premium or fee structure of existing policies. |