- NO. 54 OF 1996: INSURANCE
AMENDMENT ACT, 1996.
-
- PRESIDENT'S OFFICE No.
1754.
-
1 November 1996
-
- NO. 54 OF 1996: INSURANCE
AMENDMENT ACT, 1996.
-
- It is hereby notified that
the President has assented to the following Act which is hereby
published for general information:-
-
- GENERAL EXPLANATORY NOTE:
-
- Words in bold type
indicate omissions from existing enactments. Words in italics
indicate insertions in existing enactments.
-
ACT
-
- To amend the Insurance
Act, 1943, so as to allow long-term insurers to underwrite
registered medical scheme business; to prescribe
a basis on which
certain assets should be valued; to provide for more flexibility as
regards foreign investments by insurers,
the basis on which it is to
be allowed and the manner in which it should be held; to empower the
registrar to prohibit the publication
of misleading or undesirable
advertising material; and to further regulate the ban on the use of
certain business names by unregistered
persons; and to provide for
matters connected therewith.
-
- (English text signed
by the President.) (Assented to 24 October 1996.)
-
BE IT ENACTED by the
Parliament of the Republic of South Africa, as follows:-
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- Amendment of section 1 of
Act 27 of 1943, as amended by section 2 of Act 73
-
of 1951, section 39 of Act 24
of 1956, section 50 of Act 25 of 1956, section 1 of Act 79 of 1959,
section 1 of Act 10 of 1965,
section 1 of Act 41 of 1966, section 1
of Act 65 of 1968, section 1 of Act 39 of 1969, section 1 of Act 91
of 1972, section 1
of Act 101 of 1976, section 1 of Act 94 of 1977,
section 1 of Act 80 of 1978, section 1 of Act 103 of 1979, section 1
of Act
99 of 1980, section 1 of Act 36 of 1981, section 1 of Act 86
of 1984, section 1 of Act 106 of 1985, section 1 of Act 54 of 1989,
section 1 of Act 83 of 1992, section 1
-
of Act 104 of 1993, section 63
of Act 113 of 1993 and section 1 of Act 140 of
-
1993
-
- 1. Section 1 of the
Insurance Act, 1943, is hereby amended by the substitution in
subsection (1) for item (cc) of the definition
of "life policy"
of the following item:
-
- "(cc) any contract
in terms of which a registered insurer who is authorized to carry
on life business, underwrites an
obligation which a pension fund,
a retirement annuity fund, a provident fund or a benefit fund (but
not a medical aid scheme
registered under the provisions of the
Medical Schemes Act, 1967 (Act No. 72 of 1967),) as defined in the
Income Tax Act,
1962 (Act No. 58 of 1962), or a Friendly Society
as defined in the Friendly Societies Act, 1956 (Act No. 25 of
1956), owes
to its members;".
-
- Amendment of section 15 of
Act 27 of 1943, as substituted by section 13 of
-
Act 73 of 1951 and amended by
section 10 of Act 79 of 1959, section 11 of Act
-
10 of 1965, section 3 of Act
41 of 1966, section 5 of Act 101 of 1976, section
-
2 of Act 50 of 1986, section 9
of Act 54 of 1989, section 3 of Act 64 of 1990 and section 2 of Act
104 of 1993
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- 2. Section 15 of the
Insurance Act, 1943, is hereby amended-
-
- (a) by the substitution
in paragraph (f) for the words preceding subparagraph (i) of the
following words:
- does
-
- "Every asset which a
registered insurer holds in respect of long-term insurance business
and which is of a kind specified
in paragraph 3, 4,
-
4A, 5, 5A, 6, or 6A or
subparagraph 5(a)(i) of paragraph 11
-
of the Third Schedule to
this Act shall be shown at an amount which
-
not exceed the lesser of the
two amounts stated below, namely-..."; (b) by the substitution
for subparagraph (ii) of paragraph
(fA) of the
-
following subparagraph:
-
- "(ii) is not of a
kind specified in paragraph (b) or in paragraph 3, 4,
-
4A, 5, 5A, 6, or 6A or
subparagraph 5(a)(i) of paragraph 11 of the Third Schedule to this
Act; and";
-
- (c) by the deletion in
paragraph (g) of the words "in the Republic"; and
-
- (d) by the deletion
in paragraph (h) of the words "in the Republic".
- Amendment of section 21
of Act 27 of 1943, as substituted by section 19 of
-
Act 73 of 1951 and amended by
section 13 of Act 79 of 1959, section 18 of Act
-
10 of 1965, section 1 of Act
75 of 1970, section 9 of Act 101 of 1976, section
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8 of Act 103 of 1979 and
section 20 of Act 46 of 1984
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- 3. Section 21 of the
Insurance Act, 1943, is hereby amended by the substitution for
paragraph (a) of subsection (3) of the following
paragraph:
-
- "(a) unless every
document which is the property of the insurer concerned and which
essentially evidences the title of
the insurer to such asset is in
the Republic or in the case of an asset of a kind specified in
subparagraph (5) of paragraph
11 of the Third Schedule to this
Act, it is held outside the Republic in such a manner and subject
to such conditions as
the registrar may determine; and".
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- Insertion of section 23E
in Act 27 of 1943
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- 4. The following section
is hereby inserted in the Insurance Act, 1943, after section 23D:
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- "Restrictions
on advertising materials
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- 23E. (1) If the registrar
is satisfied that an advertisement, brochure or similar document
which relates to the business of
an insurer, or to an insurance
policy, which is being, or is to be, published or broadcasted by
-
a
-
person, is misleading or
contrary to the public interest or contains an
-
incorrect statement of fact
he or she may direct that person not to publish or broadcast it or
to cease publishing or broadcasting
it or to effect the changes to
it which he or she deems fit.
-
- (2) An advertisement,
brochure or similar document which relates to an insurance policy
must contain the name of the registered
insurer who underwrites the
policy.".
-
- Amendment of section 59D
of Act 27 of 1943, as inserted by section 65 of
- Act 113 of 1993
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- 5. Section 59D of the
Insurance Act, 1943, is hereby amended-
-
- (a) by the addition at the
end of subsection (1) (e)(i)(cc) of the word
"or" and the
addition of the following item:
-
- "(dd) a medical
scheme as defined in section I of the Medical
Schemes Act, 1967 (Act
No. 72 of 1967),"; and
-
- (b) by the substitution
for the words following subsection (1)(e)(i)(dd) of the following
words:
-
"owes
to its members, for as long as no right under such a contract is in
any manner ceded to a member or another person
(other than a person
referred to in items (aa), (bb), and (cc) and (dd) for the
direct or indirect benefit of
a member; and".
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- Amendment of section 75bis
of Act 27 of 1943, as inserted by section 22 of
-
Act 79 of 1959
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- 6. Section 75bis of the
Insurance Act, 1943, is hereby amended by the substitution in
subsection (1) for the words following paragraph
(b) of the
following words:
-
- the
-
- "shall without the
approval in writing of the registrar use in respect of or apply to
any business or undertaking carried
on by him or her, or
-
permit to be so used or
applied, any name, style or description in which
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- word 'insure', or the
word 'assure', 'underwrite' or any derivative of either word occurs
these words occur.".
- Amendment of the Third
Schedule to Act 27 of 1943, as substituted by section 46 of Act 73
of 1951 and amended by section 24
of Act 79 of 1959, section 36 of
Act 10 of 1965, section 10 of Act 41 of 1966, section 27 of Act
-
39 of 1969, section I of Act
23 of 1970, section 15 of Act 101 of 1976, section 36 of Act 9 of
1989, section 13 of Act 83 of
1992 and section 20 of Act 104 of
1993
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- 7. The Third Schedule to
the Insurance Act, 1943, is hereby amended- (a) by the substitution
for paragraph 6A of the following
paragraph:
-
"6A Bills, bonds
or securities issued by-
-
(a) the Government of; or,
(b) a local authority in; or
- form
-
- (c) a body corporate
established by law of, a territory forming part of the Republic
but which at any time before 27 April
1994 did not
-
- part of the Republic,
and which territory has been approved by the registrar subject to
the conditions imposed by him or her.";
-
- (b) by the addition at
the end of subparagraph (4) of paragraph 11 of the word and"
and by the addition of the following
subparagraphs:
-
- "(5) (a) listed
securities, excluding any derivative instrument, issued by-
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- (i) a Government of a
country other than the Republic; or
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- (ii) an institution
incorporated outside the Republic, in respect of
- which the registrar has
approved the-
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- (aa) stock exchange
outside the Republic; or
- market
-
- the a
-
- market;
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- (bb) country, other than
the Republic, in which the regulated
-
- concerned is situated,
subject to the conditions he or she determines; and
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- (b) a credit balance in
an account with, or a deposit (including a negotiable deposit)
accepted by, an institution incorporated
outside
-
Republic, in a country
approved by the registrar which would have been bank in terms of
the Banks Act, 1990 (Act No. 94 of 1990),
or a mutual
-
bank in terms of the Mutual
Banks Act, 1993 (Act No. 124 of 1993), if it were incorporated in
the Republic; and
-
- (c) units which are in
whole derived from or linked to one or more assets referred to in
subparagraphs (a) and (b).
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- (6) For the purposes of
subparagraph (5)- (a) 'listed' means-
-
(i) that there has been
granted and not withdrawn, a listing in respect of the securities
on a stock exchange outside the
Republic, and that dealings in the
securities are effected regularly on that stock exchange; or
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- (ii) that dealings in
the securities are effected regularly on a regulated market; and
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- (b) 'regulated market'
means a market situated outside the Republic and which-
-
- (i) is operated
regularly; and
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- (ii) is subject to
regulations issued or approved by the state concerned and in terms
of which requirements are prescribed-
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- (aa) in relation to the
operation of and access to the and
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(bb) in respect of
financial instruments for purposes of the effective trading
thereof in the market.".$
- Short title and
commencement
-
8. This
Act shall be called the Insurance Amendment Act, 1996, and shall
come into operation on a date fixed by the President by
proclamation in the Gazette.
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