Long Term Insurance Act, 1998 (Act No. 52 of 1998)RegulationsRegulations under the Long-term Insurance Act, 1998Part 3 : RemunerationPart 3A : Limitation on Remuneration for Rendering Services as Intermediary - Policies other than Policies to which Part B Applies3.9A Special provisions concerning replacement risk policies |
| (1) | Notwithstanding regulation 3.4, a long -term insurer must either— |
| (a) | not pay any commission to any person in respect of a replacement risk policy unless and until the confirmation referred to in Rule 19 of the Policyholder Protection Rules, where required, has been provided; or |
| (b) | where the long -term insurer does pay commission to a person in respect of a replacement risk policy, reverse such payment and ensure that the payment is refunded to the long -term insurer if the confirmation referred to in Rule 19 of the Policyholder Protection Rules, where required, is not provided within the time specified in that Rule. |
| (2) | In the event of commission on a replacement risk policy being paid or accepted otherwise than in accordance with subregulation (1), whether due to the fact that the long -term insurer was not aware at the time of payment that the policy in question was a replacement risk policy, or for any other reason, then any commission paid by the long -term insurer shall upon identification be reversed and refunded to the long -term insurer by the person to whom it was paid. |
[Regulation 3.9A inserted by regulation 4(t) of Notice No. 1437 of 2017]