Do you know…about the new policyholder protection rules? - Part 5
Christine Rodrigues, Partner at Hogan Lovells
Christine Rodrigues, a partner at Hogan Lovells, has over 15 years of experience in insurance, both within the industry and as a lawyer. Christine is a well-known face in the growing South African insurance sector.
Following the introduction of the new Policyholder Protection Rules (PPR) rules in December 2017 and the concern regarding compliance commencement dates, Christine has prepared a series of short explanatory notes that we will be sending to you over the next few months.
PART 5
On 2 March 2018, the Financial Services Board published for comment proposed amendments to the Policyholder Protection Rules are required by 13 April 2018 and the below amended rules are envisaged to come into effect on 1 July 2018.
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Rule 2A
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This rule sets out the standards and requirements for micro-insurance and funeral policies only. This rule along with the rest of the PPRs must be complied within relation to micro-insurance and funeral policies. |
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Rules 7.1 (f)-(i) and 7.3 |
Those rules replace the contents of section 56(a) to (d) of the Long-Term Insurance Act, 1998 ("LTIA") and Section 52(a) to (d) of the Short-Term Insurance Act, 1998 ("STIA") that are replaced once the Insurance Act, 2017 ("Insurance Act") comes into effect. |
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Rules 11.5.1(i); 11.5.2 to 11.5.4 |
This rule is on adaptation of section 48 of the LTIA and section 47 of the STIA that will be repealed once the Insurance Act comes into effect. The provisions between long-term and short-term are also aligned. |
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Rule 20 (short-term) and equivalent Rule 21 (long-term) (Misrepresentation) |
These proposed rules will replace section 59 of the LTIA and section 53 of the STIA which will be repealed once the Insurance Act comes into effect. |
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Long-term insurers only: |
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Rule 15.A |
This proposed rule will replace section 52 of the LTIA once the Insurance Act comes into effect. |
See our next edition on some practical tips on the implementation of the next tranche of rules as well as commentary on the proposed amendments to the PPRs.
