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South Africa
NATIONAL LEGISLATION OVERVIEWS
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Short-term Insurance Act, No. 53 of 1998

Long title

 
To provide for a legal framework for the regulation of conduct of business supervision of short-term insurers in the Republic, that is consistent, to the extent practicable, with international standards for insurance regulation and supervision; for the control of certain activities of short-term insurers and intermediaries; and for matters connected therewith.

[...amended by Act 2017_018_072_20180118 Scvh1 by way of unmarked omission and unmarked insertion]

Table of contents

SECTION TITLE

ARRANGEMENT OF SECTIONS

Introductory provisions
1.  Definitions
1A.  Relationship between Act and Financial Sector Regulation Act [...inserted by Act 2017_009_290_20170822]
1B.  Regulatory instruments [...inserted by Act 2017_009_290_20170822]

PART I. ADMINISTRATION OF ACT
2.  Exercise of powers and performance of duties by Authority [...Title amended by Act 2017_009_290_20170822 - was entitled "Registrar [ and Deputy Registrar ] of Short-term Insurance"]
3.  General provisions concerning Authority [...Title amended by Act 2017_018_072_20180118 Sch1 - was entitled "General provisions concerning Registrar"]
4.  Special provisions concerning Authority and his or her powers [...Title amended by Act 2017_018_072_20180118 Sch1 - was entitled "Special provisions concerning Registrar and his or her powers"]
5.  ... [...repealed by Act 2017_009_290_20170822 - was entitled "Annual report"]
6.  [...repealed by Act 2013_045_113_20140116 - was entitled "Advisory Committee on Short-term Insurance"]

PART II. REGISTRATION OF SHORT-TERM INSURERS
7.  ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Registration required in order to carry on short-term insurance business"]
8.  Prohibition on performance of certain acts, by certain persons [...Title amended by Act 2017_018_072_20180118 Sch1 - was entitled "Prohibition on use of’ certain words, or performance of certain acts, by certain persons"]
9.  ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Application for registration"]
10.  ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Conditions of registration"]
11.  ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Variation of registration conditions"]
12.  ... [...Title amended by Act 2017_018_072_20180118 Sch1 - was entitled "Registrar may under certain circumstances prohibit short-term insurers from carrying on business"] [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Authority may under certain circumstances prohibit short-term insurers from carrying on business"]
13.  ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Termination of registration"]
14.  ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Deregistration of short-term insurers as companies"]

Part III. BUSINESS AND ADMINISTRATION OF SHORT-TERM INSURERS
15.  ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Limitation on business"]
15A. ... [...inserted by Act 2003_017_028] [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Reinsurers carrying on reinsurance business only, authorised to enter into certain short-term policies directly"]
16.  ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Head office and public officer"]
17.  ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Financial year and name"]
18.  ... [...Title amended by Act 2003_017_030_20030723 - was entitled “Notification of certain appointments and terminations”] [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Notification of certain appointments, terminations and resignations"]
19.  ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Auditor"]
19A.  ... [...inserted by Act 2008_027_033_20081105] [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Statutory actuary"]
20. ... [...Title amended by Act 2008_017-034_20081105 - was entitled "Appointment of auditor by Registrar"] [...Title amended by Act 2017_018_072_20180118 Sch1 - was entitled "Appointment of auditor or statutory actuary by Registrar"] [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Appointment of auditor or statutory actuary by Authority"] 
21.  ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Removal of appointees who are not fit and proper"]
22.  ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Audit committee"]
23.  ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Preference shares, debentures, share capital and share warrants"]
24.  ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Registration of shares in name of nominee"]
25.  ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Limitation on control and certain shareholding or other interest in short-term insurers"]
26.  ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Furnishing of information concerning shareholders"]
27.  ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Effect of registration of shares contrary to Act"]

PART IV. RETURNS TO AUTHORITY [...Title amended by Act 2017_018_072_20180118 Sch1 - was entitled "FINANCIAL ARRANGEMENTS"]
28.  ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Maintenance of financially sound condition"]
29. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Assets"]
30. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Kinds and spread of assets"]
31. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Deeming provisions concerning assets"]
32. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Liabilities"]
33. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Prohibitions concerning assets and certain liabilities"]
34. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Failure to maintain financially sound condition"]
35. Returns to Authority [...Title amended by Act 2017_018_072_20180118 Sch1 - was entitled "Returns to Registrar"]

PART V. COMPROMISE, ARRANGEMENT, AMALGAMATION AND TRANSFER
36. ... [...Title amended by Act 2017_018_072_20180118 Sch1 - was entitled "Approval of Registrar required for compromise, arrangement, amalgamation or transfer"] [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Approval of Authority required for compromise, arrangement, amalgamation or transfer"]
37. ... [...Title amended by Act 2017_018_072_20180118 Sch1 - was entitled "Application to Registrar"] [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Application to Authority"]
38. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Conditions of approval"]
39. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Approved transaction, and certain exemptions"]

PART VI. BUSINESS RESCUE AND WINDING-UP OF SHORT-TERM INSURERS [...was entitled "JUDICIAL MANAGEMENT AND WINDING-UP OF SHORT-TERM INSURERS"]
40. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Judicial management"]
41. ... [...Title amended by Act 2013_045_132(a)_20140116 - was entitled "Winding-up by Court"] [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Winding-up"]
42. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Voluntary winding-up"]

Part VII. BUSINESS PRACTICE, POLICIES AND POLICYHOLDER PROTECTION

Business practice
43. Free choice in certain circumstances
44. Prohibition on inducements
45. Collection of premiums by intermediaries
46. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Receipt for premium paid in cash"]
47. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Copy of policy and inspection of policy records"]
48. [ Independent intermediaries: ] [ Limitation of ] remuneration [...Title amended by Act 2008_027_045_20081105 - was entitled "Intermediaries: remuneration and binder"] [...Title amended by Act 2013_045_135_20140116]**
48A. Binder agreements [...inserted by Act 2008_027_046_20081105]
49. [...repealed by Act 2013_045_136_20140116 - was entitled "Undesirable business practice"]

Policies
50. Limitation on policy benefits in event of death of unborn or of certain minors
51. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Voidness of certain provisions of agreements relating to short-term policies"]
52. Short-term policies entered into by certain minors
53. ... [...Title amended by Act 2003_017_035_20030723 - was entitled “Misrepresentation”] [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Misrepresentation and failure to disclose material information"]
54. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Validity of contracts"]

Policyholder protection
55. Protection of policyholders

PART VIII. PROVISIONS RELATING TO LLOYD'S
56. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "General"]
57. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Appointment of Lloyd's representative"]
58. ... [...Title amended by Act 2017_018_072_20180118 Sch1 - was entitled "Returns to Registrar"] [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Returns to Authority"]
59. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Claims against Lloyd's underwriters"]
60. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Security to be furnished by or on behalf of Lloyd's underwriters"]
61. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Payment of certain claims against Lloyd's underwriters"]
62. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Imposition of prohibition on activities of Lloyd's underwriters"]
63. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Application of other provisions of Act to Lloyd's"]

PART IX. OFFENCES AND PENALTIES
64. Offences by persons other than short-term insurers
65. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Offences by short-term insurers"]
66. Penalty for failure to furnish Authority with returns etc. [...Title amended by Act 2017_018_072_20180118 Sch1 - was entitled "Penalty for failure to furnish Registrar with returns etc."]

PART X. TRANSITIONAL AND GENERAL PROVISIONS

Transitional provisions
67. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Continued registration of exiting insurers"]
68. ... [...repealed by Act 2017_009_290_20170822 - was entitled "Certain existing insurers to cease long-term insurance business or to separate it from short-term insurance business"]

General provisions
69. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "Special provisions concerning short-term insurers that are not public companies"]
70. Regulations
71. Savings
72. Interpretation of certain references in existing laws
73. Short title and commencement
Sch. 1. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "SCHEDULE 1. (SECTION 29) KINDS OF ASSETS" [s29]] 
Sch. 2 ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "SCHEDULE 2. (SECTION 29, 30 AND   s32) METHOD OF CALCULATION OF VALUE OF ASSETS AND LIABILITIES" [s29; s30; s32]]
Sch. 3. ... [...repealed by Act 2017_018_072_20180118 Sch1 - was entitled "SCHEDULE 3. (SECTION 60) LLOYD’S SECURITY" [s60]]

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Copyright Rita V. Felgate 2018