| (1) | Any authorisation referred to in section 47A provided by an insurer to an independent intermediary to receive, hold or in any other manner deal with a premium payable under a policy of that insurer must be in writing. |
| (2) | A written authorisation referred to in subregulation (1) must, amongst other things— |
| (a) | specify the duration of the authorisation and the functions that may be performed under the authorisation; |
| (b) | specify the level and standard of services that must be rendered in terms of the authorisation; |
| (c) | specify the operational requirements that the independent intermediary must meet at all times to render services under the authorisation; |
| (d) | specify the purposes for which premiums of the insurer received or held by the independent intermediary may and may not be utilised for by the independent intermediary; |
| (e) | provide for appropriate requirements relating to the termination of the authorisation, including an adequate notice period, that take into account the interests of policyholders; |
| (f) | provide for the type and frequency of reporting by the independent intermediary on the services rendered under the authorisation; and |
| (g) | provide for the manner in and the means by which an insurer will monitor the independent intermediary's performance under and compliance with the authorisation. |
| (3) | An insurer may not, for purposes of subregulation (2)(d), authorise an independent intermediary to utilise premiums for a purpose that could potentially lead to a significant increase in risk to the insurer. |
| (4) | An independent intermediary may not delegate an authorisation that has been granted to it in accordance with section 47A. |
| (5) | An insurer must, before it authorises an independent intermediary under section 47A, and at all times thereafter, be satisfied that— |
| (a) | the independent intermediary is fit and proper and has the necessary operational ability to satisfactorily perform the functions or activities contemplated in the authorisation; |
| (b) | such authorisation will not materially increase risk to the insurer; and |
| (c) | such authorisation will not compromise the fair treatment of or continuous and satisfactory service to policyholders. |
| (6) | An insurer must on an ongoing basis take reasonable steps to monitor whether an independent intermediary authorised under section 47A receives, holds or in any other manner deals with premiums in accordance with the authorisation and in accordance with this Part. |
| (7) | An insurer must have appropriate contingency plans in place to address any shortcomings in the independent intermediary's performance of the authorised functions that it may identify through the monitoring contemplated in subregulation (6) or otherwise become aware of. |
[Part 8.1 substituted by regulation (9) of Notice No. 1015, GG 41942, dated 28 September 2018]
