Long Term Insurance Act, 1998 (Act No. 52 of 1998)RegulationsRegulations under the Long-term Insurance Act, 1998Part 5 : Requirements and Limitations regarding the Values and Benefits of Policies (Section 54)Part 5A : Policies other than Policies to which Part 5B applies5.2 Basis for determination of values and benefits of policies |
| (1) | The values and benefits of a policy, and charges in respect of the policy, are determined, over the full term of the policy, in accordance with its terms and its underlying actuarial basis, whether or not the actuarial basis has been expressly incorporated in the policy. |
| (2) | Notwithstanding anything to the contrary in the terms or actuarial basis of a policy which is not an excluded policy, and in respect of which a causal event has occurred on or after 1 January 2001 , but subject to regulation 4.2: |
| (a) | where the terms or actuarial basis of that policy make provision for the calculation of an investment value as described in the definition "investment value", regulations 5.3 to 5.6 apply to that policy: or |
| (b) | where the terms or actuarial basis of that policy do not make provision for the calculation of an investment value as described in the definition "investment value", the values or benefits of that policy upon or immediately after the causal event must be, as certified by the insurer’s statutory actuary, materially equivalent to such values or benefits as determined in accordance with regulations 5.3 to 5.6 for a policy contemplated in paragraph (a). |