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| LegalB's Resources |
| South Africa NATIONAL LEGISLATION OVERVIEWS  |
||
Insurance Act, No. 18 of 2017
NOTE: Assented to and published in English, with alternative copy in Afrikaans
NOTE: Assented to and published in English, with alternative copy in Afrikaans
Long title
To provide for a legal framework for the prudential regulation and supervision of insurance business in the Republic that is consistent with the Constitution of the Republic of South Africa, 1996, and promotes the maintenance of a fair, safe and stable insurance market; to introduce a legal framework for microinsurance to promote financial inclusion; to replace certain parts of the Long-term Insurance Act, 1998, and the Short-term Insurance Act, 1998; and to provide for matters connected therewith.
Table of contents
| SECTION | TITLE |
| CHAPTER 1. INTERPRETATION AND OBJECTIVE OF ACT |
|
| 1. | Definitions |
| 2. | General interpretation of Act |
| 3. | Objective of Act |
| CHAPTER 2. CONDUCTING INSURANCE BUSINESS AND INSURANCE GROUP BUSINESS | |
| Part 1. General principles for conducting insurance business or insurance group business | |
| 4. | Principles |
| Part 2. Insurance business and other business of insurers | |
| 5. | Insurance business and limitations on other business |
| Part 3. Branches of foreign reinsurers and Lloyd’s underwriters | |
| 6. | Conducting of insurance business by branches of foreign reinsurers and Lloyd’s underwriters |
| 7. | Claims against branches of foreign reinsurers or Lloyd’s underwriters |
| Part 4. Insurance groups | |
| 8. | Application of Part |
| 9. | Notification by insurer on becoming part of group of companies |
| 10. | Designation of insurance group and licensing of controlling company |
| 11. | Responsibility of board of directors of controlling company |
| 12. | Transparent insurance group structure |
| CHAPTER 3. KEY PERSONS AND SIGNIFICANT OWNERS | |
| Part 1. Fit and proper requirements | |
| 13. | Fit and proper requirements for key persons and significant owners |
| Part 2. Appointment and termination of key persons | |
| 14. | Approval of appointment of certain key persons |
| 15. | Notification of appointment and change in circumstances of certain key persons |
| 16. | Termination of appointment of key persons |
| Part 3. Changes in control of insurer or controlling company and nominees | |
| 17. | Changes in control of insurer or controlling company |
| 18. | Registration of shares in name of nominee |
| Part 4. Key persons or significant owners not fit and proper | |
| 19. | Key person or significant owner not fit and proper or no longer fit and proper |
| 20. | Assessing if key person or significant owner is fit and proper |
| CHAPTER 4. LICENSING, SUSPENSION AND WITHDRAWAL OF LICENCE | |
| 21. | Application of Chapter |
| 22. | Requirements for licence |
| 23. | Licensing |
| 24. | Lloyd’s underwriters and Lloyd’s licensed |
| 25. | Licence conditions |
| 26. | Variation of licence conditions |
| 27. | Suspension of licence |
| 28. | Consequences of suspension of licence |
| 29. | Withdrawal of licence |
| CHAPTER 5. GOVERNANCE | |
| Part 1. Insurers and insurance groups | |
| 30. | Governance framework |
| 31. | Failure to maintain governance framework |
| 32. | Auditor |
| 33. | Audit committee |
| Part 2. Additional governance requirements for representative offices of branches of foreign reinsurers and Lloyd’s | |
| 34. | Representative office |
| CHAPTER 6. FINANCIAL SOUNDNESS | |
| Part 1. Insurers and insurance groups | |
| 35. | Application of Part |
| Financially sound condition | |
| 36. | Maintenance of financially sound condition |
| 37. | Capital add-on |
| 38. | Capital and securities |
| 39. | Failure to maintain financially sound condition |
| Part 2. Security requirements for branches of foreign reinsurers and Lloyd’s | |
| 40. | Security to be held in trust |
| 41. | Trust and trustees |
| 42. | Failure to provide or maintain security |
| CHAPTER 7. REPORTING AND PUBLIC DISCLOSURES | |
| 43. | Information concerning beneficial interests |
| 44. | Information for supervisory purposes |
| 45. | Annual disclosures |
| 46. | Annual financial statements and accounting requirements |
| 47. | Auditing requirements |
| 48. | Additional information relating to foreign reinsurers, Lloyd’s underwriters or Lloyd’s |
| 49. | Additional matters relating to Chapter |
| CHAPTER 8. TRANSFERS OF BUSINESS AND OTHER SIGNIFICANT TRANSACTIONS | |
| 50. | Transfer, fundamental transaction or change of institutional form |
| 51. | Acquisitions or disposals |
| CHAPTER 9. RESOLUTION | |
| 52. | Application of Chapter |
| Part 1. Statutory management | |
| 53. | Appointment of statutory manager |
| Part 2. Curatorship | |
| 54. | Appointment of curator |
| Part 3. Business Rescue | |
| 55. | Application of Companies Act to business rescue of insurers and controlling companies |
| 56. | Business rescue applications and resolutions |
| Part 4. Winding-up | |
| 57. | Application of Companies Act to winding-up of insurers and controlling companies |
| 58. | Winding-up applications and resolutions |
| 59. | Winding-up of trusts referred to in section 41 |
| CHAPTER 10. ADMINISTRATION OF ACT | |
| Part 1. Applications and notifications | |
| 60. | Applications |
| 61. | Notifications |
| Part 2. Powers and functions of Prudential Authority | |
| 62. | General powers, functions and duties of Prudential Authority |
| 63. | Prudential Standards |
| 64. | Publication by Prudential Authority |
| 65. | Determination of another jurisdiction as equivalent |
| 66. | Exemptions |
| 67. | Unlicensed insurance business |
| 68. | Penalties for non-submission or late submission |
| 69. | Offences |
| CHAPTER 11. GENERAL PROVISIONS | |
| 70. | Regulations relating to certain classes of insurance business set out in Schedule 2 |
| 71. | Special exemption of certain insurers |
| 72. | Consequential amendments and transitional arrangements |
| 73. | Short title and commencement |
| Sch. 1. | SCHEDULE 1. LAWS AMENDED [s72] |
| Sch. 2. | SCHEDULE 2. CLASSES AND SUB-CLASSES [s1, s22, s24, s25, s26, s70] |
Table 1 Classes and sub-classes of insurance business life insurance | |
Table 2. Classes and sub-classes of insurance business non-life insurance | |
| Sch. 3. | SCHEDULE 3. TRANSITIONAL ARRANGEMENTS [s30 and s72] |
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