Short-Term Insurance Act, 1998 (Act No. 53 of 1998)RegulationsRegulations under the Short-term Insurance Act, 1998 (Act No. 53 of 1998)Part 5 : Remuneration (Section 48)Part 5B : Limitation on Remuneration for Binder Functions5.6 Application of this Part 5B, and definitions |
| (1) | This Part 5B applies to remuneration provided by an insurer or any person on its behalf to a person for rendering a binder function. |
| (2) | In this Part 5B, unless the context indicates otherwise, any word or expression to which a meaning has been assigned in Part 6 has the meaning assigned to it in that Part, and— |
means an arrangement under which a person (cell owner)—
| (a) | holds an equity participation in a specific class or type of shares of an insurer, which equity participation is administered and accounted for separately from other classes or types of shares; |
| (b) | is entitled to a share of the profits and liable for a share of the losses as a result of the equity participation referred to in paragraph (a), linked to profits or losses generated by the Insurance business referred to in paragraph (c); and |
| (c) | places insurance business with the insurer referred to in paragraph (a), which business is contractually ring- fenced from the other insurance business of that insurer for as long as the insurer is not in winding -up. |
[Regulation 5.6 inserted by regulation 5(d) of Act No. 1439 of 2017]