| (1) | Subject to subregulations (2), (3), (4) and (5), a long-term insurer, and any person who acts as intermediary between a long-term insurer and any person in respect of a policy or proposal for a policy, shall not undertake to provide, or provide— |
| (a) | a policy benefit under a policy during an extended restriction period; |
| (b) | upon the full or partial surrender of a policy during an extended restriction period— |
| (i) | if the policy has previously been partially surrendered during the extended restriction period concerned, any further consideration; or |
| (ii) | if the policy has not been previously partially surrendered during the extended restriction period concerned, any consideration the value of which exceeds the restricted amount less the capital (excluding capitalised interest) of a loan already provided in respect of the policy during that extended restriction period: Provided that where the policy is fully surrendered and the full value of the consideration to be provided thereupon exceeds the amount thus determined by not more than R10 000 the full consideration may be provided; |
[Regulation 4.2(1)(b) substituted by regulation 6(d) of Notice No. 1015, GG 41942, dated 28 September 2018]
| (c) | a loan under or on security of a policy during an extended restriction period— |
| (i) | if such a loan has previously been provided in respect of the policy during the extended restriction period concerned; or |
| (ii) | if such a loan has not previously been provided in respect of the policy during the extended restriction period concerned, the amount of which exceeds the restricted amount; or |
| (d) | directly or indirectly, by means of one or more policies, during an extended restriction period, any benefit (whether as policy benefits or loans in respect of policies or consideration upon the surrender of policies, or any combination thereof) which achieves substantially the result that is achieved by an annuity, but which is not, and is not expressly stipulated in the policy or policies to be, an annuity. |
| (2) | Subregulation (1)(a) shall not apply to a policy benefit which is to be provided and is provided under the policy upon— |
| (a) | the life of a life insured having ended; |
| (b) | the life of a life insured having begun; |
| (c) | a health event occurring; |
| (d) | a disability event occurring; |
| (e) | loss of income occurring. |
[Regulation 4.2(2) substituted by regulation 5(e) of Notice No. 1437 of 2017]
| (3) | Subparagraph (1)(a) shall not apply to a policy benefit which is an annuity— |
| (a) | the payments of which are to be made, and are made, at intervals not exceeding 12 months; |
| (b) | at least one of the payments of which is to be made and, except due to the prior death of the life insured, is made, within 31 days before the expiry of the extended restriction period concerned; and |
| (c) | the total amount of the payments of which in any period of 12 months does not differ, by a rate of more than 20 per cent, from the total amount of the payments thereof in the immediately preceding period of 12 months, except in the case of an annuity— |
| (i) | which constitutes a linked benefit, where the difference, during the period concerned, results solely from the determination of the value of the relevant assets; |
| (ii) | payable in terms of a policy with two or more policyholders or lives insured and where the difference results solely from a reduction in the annuity payable during the period concerned consequent upon the death of one of those policyholders or lives insured; or |
| (iii) | where the difference results solely from a reduction in the annuity payable during the period concerned consequent upon the surrender of a part of the policy. |
| (4) | Subregulation (1) shall not apply in the event of— |
| (a) | the death, placement under curatorship or sequestration of the estate of a policyholder who is a natural person; or |
| (b) | the winding-up, liquidation, placement under curatorship or judicial management, by an order of Court, of a policyholder which is a juristic person. |
| (5) | Subregulation (1)(c) and (d) shall not apply to a premium advance made under non-forfeiture provisions in a policy. |
