Short-Term Insurance Act, 1998 (Act No. 53 of 1998)Prescribed requirements for the calculation of the value of the assets, liabilities and capital adequacy requirement of short-term insurers1. Definitions |
(Paragraph 2 of Schedule 2 of the Short-term Insurance Act, 1998)
In these Requirements, unless the context indicates otherwise:
means the Short-term Insurance Act, 1998 (Act No. 53 of 1998), and a word or expression to which a meaning has been given in the Act, has that meaning;
means the kinds of assets specified in section 29 of the Act;
means a benefit specified in the policy document, where the policyholder receives a pre-determined benefit, in relation to the gross premiums received by the insurer, after a specified period of time under specified conditions as specified in the policy document;
in relation to a regulated financial institution, means the capital or solvency margin, and will include any additional asset requirements, as the case may be, required for that institution by the regulatory authority concerned;
represents an equity participation as shareholder in a different class of shares that is restricted to the results of the insurance business which the shareholder places in an insurer; the results of such business are determined in accordance with an agreement with the participating shareholder; the different class of shares has specified dividend rights-and/or capital risk financing;
means a juristic person in which the insurer alone, or with its subsidiaries or holding company, directly holds 20% or more of the shares, if the juristic person is a company, or 20% or more of any other ownership interest, if the juristic person is not a company;
means listed on a stock exchange or similar trading facility, which is recognised generally by the international community of institutional investors;
in relation to a group undertaking, means its net asset value calculated in accordance with paragraph 3.1.10;
means:
| a) | a financial institution as defined in paragraph (a) of the definition of 'financial institution' in section 1 of the Financial Services Board Act, 1990 (Act No. 97 of 1990); |
| b) | a bank as defined in section 1(1) of the Banks Act, 1990 (Act No. 94 of 1990), or a mutual bank as defined in section 1(1) of the Mutual Banks Act, 1993 (Act No. 124 of 1993); |
| c) | an entity that carries on business similar to the business of an entity referred to in paragraphs (a) or (b), which is not regulated by a law that regulates an entity referred to in paragraph (a) or (b), but which is subject to substantially similar regulation outside South Africa; |
means the returns prescribed by the Authority in terms of section 35 of the Act;
means Schedule 2 of the Act