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 Functions5.9 Participation by a binder holder in profits attributable to the policies referred to in a binder agreement |
| (1) | A non-mandated intermediary that is a binder holder, in respect of the services rendered under the binder agreement, may not directly or indirectly receive or be offered any share in the profits of the insurer attributable to the type or kind of policies referred to in the binder agreement. |
| (2) | Subregulation (1) does not prohibit a non -mandated intermediary that is a binder holder and entered into a cell structure with an insurer from receiving dividends in respect of shares held in that insurer as part of that cell structure. |
| (3) | An underwriting manager, in respect of the services rendered under the binder agreement, may share in the profits of the insurer attributable to the type or kind of policies referred to in the binder agreement. |
[Regulation 5.9 inserted by regulation 5(d) of Act No. 1439 of 2017]