South Africa
Long-term Insurance Act, 1998
Act 52 of 1998
- Published in Government Gazette 19276 on 23 September 1998
- Assented to on 15 September 1998
- Commenced on 1 January 1999 by Long-term Insurance Act, 1998: Commencement
- [This is the version of this document as it was from 23 September 1998 to 31 July 2003.]
1. Definitions
Part I – Administration of Act
2. Registrar of Long-term Insurance
3. General provisions concerning Registrar
4. Special provisions concerning Registrar and his or her powers
5. Annual report
6. Advisory Committee on Long-term Insurance
Part II – Registration of long-term insurers
7. Registration required in order to carry on long-term insurance business
8. Prohibition on use of certain words, or performance of certain acts, by certain persons
9. Application for registration
10. Conditions of registration
The conditions contemplated in section 9(2)(a) may include conditions—11. Variation of registration conditions
12. Registrar may under certain circumstances prohibit long-term insurers from carrying on business
13. Termination of registration
14. Reregistration of long-term insurers as companies
For the purposes of section 73(5) of the Companies Act in relation to a long-term insurer, the reference to the Registrar of Companies in that section shall be construed as a reference to the Registrar of Companies acting in concurrence with the Registrar.Part III – Business and administration of long-term insurers
15. Limitation on business
16. Head office and public officer
17. Financial year
A long-term insurer may not change its financial year without the approval of the Registrar.18. Notification of certain appointments and terminations
A long-term insurer shall notify the Registrar, in the form and of the information required by the Registrar, in respect of every director or managing executive appointed by it or whose appointment has been terminated by it, within 30 days after such appointment or termination, together with the reasons for any such termination.19. Auditor
20. Statutory actuary
21. Appointment of auditor or statutory actuary by Registrar
22. Removal of appointees who are not fit and proper
23. Audit committee
24. Preference shares, debentures, share capital and share warrants
A long-term insurer shall not—25. Registration of shares in name of nominee
26. Limitation on control and certain shareholding or other interest in long-term insurers
27. Furnishing of information concerning shareholders
28. Effect of registration of shares contrary to Act
Part IV – Financial arrangements
29. Maintenance of financially sound condition
30. Assets
31. Kinds and spread of assets
32. Deeming provisions concerning assets
33. Liabilities
34. Prohibitions concerning assets and certain liabilities
35. Failure to maintain financially sound condition
36. Returns to Registrar
Part V – Compromise, arrangement, amalgamation, demutualisation and transfer
37. Court approval required for compromise, arrangement, amalgamation, demutualisation or transfer
38. Application to Court
39. Conditions of approval
Notwithstanding the provisions of the Companies Act, the approval of the Court of a transaction referred to in section 37(1) shall not be granted—40. Approved transaction
Part VI – Judicial management and winding-up of long-term insurers
41. Judicial management
42. Winding-up by Court
43. Voluntary winding-up
No special resolution relating to the winding-up of a long-term insurer as contemplated in section 349 of the Companies Act shall be registered in terms of section 200 of that Act, and no special resolution to that effect in terms of the constitution of a long-term insurer which is not a company shall have legal force—Part VII – Business practice, policies and policyholder protection
Business practice
44. Free choice in certain circumstances
45. Prohibition on inducements
No person shall provide, or offer to provide, directly or indirectly, any valuable consideration as an inducement to a person to enter into, continue, vary or cancel a long-term policy, other than a reinsurance policy.46. Policy to be actuarially sound
A long-term insurer shall not—47. Receipt for premium paid in cash, and validity of policy
48. Summary, inspection and copy of policy
49. Limitation of remuneration to intermediaries
No consideration shall be offered or provided by a long-term insurer or a person on behalf of the long-term insurer or accepted by any independent intermediary for rendering services as intermediary as referred to in the regulations, other than commission contemplated in the regulations and otherwise than in accordance with the regulations.50. Undesirable business practice
Policies
51. Policy suspended until payment of first premium
The undertaking of a long-term insurer to provide policy benefits under a long-term policy, other than a fund policy or a reinsurance policy, shall be suspended until the long-term insurer has received, if there—52. Failure to pay premiums
53. Option for payment of policy benefits in money
Notwithstanding the terms of an assistance policy, either party thereto may request that a policy benefit which is expressed otherwise than in a sum of money shall be provided as a sum of money equal in value to the cost that would have been incurred by the long-term insurer had the non-monetary benefit been provided.54. Limitation on provisions of certain policies
A long-term insurer shall not—55. Limitation on policy benefits in event of death of unborn or of certain minors
56. Voidness of certain provisions of agreements relating to long-term policies
A provision of an agreement, the purport of which is that—57. Life policy in relation to person rendering or liable to render military service
58. Long-term policies entered into by certain minors
A minor who has attained the age of 18 years may, without the consent of his or her guardian as if he or she has attained majority, enter into or vary, or deal with a long-term policy under which he or she is the life insured and pay the premium due under the policy with money which he or she has earned or which is at his or her disposal, and a policy benefit under the policy shall be provided to the minor who may deal with it as he or she thinks fit without the consent of his or her guardian, as if he or she has attained majority.59. Misrepresentation
60. Validity of contracts
61. Prescription of certain debt
Debt consisting of interest on an unpaid premium, or on a loan granted by a long-term insurer on sole security of a long-term policy, or on an advance granted by a long-term insurer in respect of an amount which is to be payable under a long-term policy, shall, in the case of a long-term policy entered into after 31 December 1973, not prescribe before the liability of the long-term insurer under the long-term policy prescribes.Policyholder protection
62. Protection of policyholders
63. Protection of policy benefits under certain long-term policies
64. Selection for realisation of protected policies
If—65. Partial realisation of protected policies
Part VIII – Offences and penalties
66. Offences by persons other than long-term insurers
67. Offences by long-term insurers
68. Penalty for failure to furnish Registrar with returns etc
Part IX – Transitional and general provisions
Transitional provisions
69. Continued registration of existing insurers
70. Certain existing insurers to cease short-term insurance business or to separate it from long-term insurance business
A person referred to in section 69(1), who was, by virtue of such person's registration under the repealed Act, authorised to carry on both long-term insurance business and short-term insurance business, other than reinsurance business only, as defined in that Act, shall, within a period of six months after the commencement of this Act, make arrangements satisfactory to the Registrar and in accordance with the appropriate provisions of the Short-term Insurance Act, 1998, as the case may be, which have the result—General provisions
71. Special provisions concerning long-term insurers that are not public companies
72. Regulations
73. Repeal and amendment of laws
Subject to section 74, the laws specified in Schedule 4 are hereby repealed or amended to the extent set out in the third column of that Schedule.74. Savings
75. Interpretation of certain references in existing laws
Unless it would in a particular case be clearly inappropriate, a reference in a law in force immediately before the commencement of this Act—76. Short title and commencement
This Act shall be called the Long-term Insurance Act, 1998, and shall come into operation on a date fixed by the President by proclamation in the Gazette.History of this document
01 January 2018 amendment not yet applied
01 April 2017 amendment not yet applied
Amended by
Insurance Laws Amendment Act, 2008
28 February 2014 amendment not yet applied
01 January 2012 amendment not yet applied
Amended by
Insurance Laws Amendment Act, 2008
15 December 2008 amendment not yet applied
Amended by
Insurance Laws Amendment Act, 2008
01 November 2008 amendment not yet applied
01 June 2006 amendment not yet applied
Amended by
National Credit Act, 2005
01 August 2003 amendment not yet applied
Amended by
Insurance Amendment Act, 2003
01 January 1999
Commenced by
Long-term Insurance Act, 1998: Commencement
23 September 1998 this version
15 September 1998
Assented to
Subsidiary legislation
Title | Numbered title |
---|---|
Policyholder Protection Rules (Long-term Insurance), 2017 | Government Notice 1407 of 2017 |
Policyholder Protection Rules (Long-term Insurance), 2017: Amendment | Government Notice 997 of 2018 |
Cited documents 12
Legislation 12
1. | Insolvency Act, 1936 | 3596 citations |
2. | Labour Relations Act, 1995 | 1970 citations |
3. | Income Tax Act, 1962 | 1599 citations |
4. | Pension Funds Act, 1956 | 1514 citations |
5. | Banks Act, 1990 | 856 citations |
6. | Legal Succession to the South African Transport Services Act, 1989 | 243 citations |
7. | Financial Services Board Act, 1990 | 209 citations |
8. | South African Reserve Bank Act, 1989 | 200 citations |
9. | Mutual Banks Act, 1993 | 159 citations |
10. | Corporation for Public Deposits Act, 1984 | 95 citations |
11. | Safe Deposit of Securities Act, 1992 | 76 citations |
12. | Insurance Act, 1943 | 6 citations |