On 1 November 2017, the FSB published Notice 7 of 2017 in terms of Section 3(2)(b)(i) and 3(4) of the Long Term Insurance Act. This notice stipulates the fee structures for applications to the FSB.
We specifically draw your attention to Section 8(1)(a) of the Long Term and Short-Term Insurance Act, which requires any FSP who uses or wishes to use the word “insure”, “assure” or “underwrite” or any derivative thereof, to have or seek approval from the Registrars of Long Term and Short-Term Insurance. The revised application fee payable for such approval is R2 700.00.
There is a greater likelihood that an application will be approved if the FSP’s name describes them, for example, as an “insurance broker”.
Below is the relevant Section of the Long Term Insurance Act, 1998 (Act No. 52 of 1998):
Part II: Registration of long-term insurers
- Prohibition on use of certain words, or performance of certain acts, by certain persons
1) No person shall—
a) subject to section 8(1)(a) of the Short-term Insurance Act, 1998, without the approval of the Registrar apply to his, her or its business or undertaking a name or description which includes the word “insure”, “assure or “underwrite” or any derivative thereof, unless such person is a long-term insurer;
[Subparagraph (a) amended by section 72(a) of Act No. 45 of 2013]
b) perform any act which indicates that he, she or it carries on or is authorised to carry on long-term insurance business, unless he, she or it is a long-term insurer authorised to carry on that business.
c) publish any advertisement, brochure or similar communication which relates to the business of a long-term insurer, or to a long-term policy, and which is misleading or contrary to the public interest or contains an incorrect statement of fact; or
[Subparagraph (c) inserted by section 72(b) of Act No. 45 of 2013]
d) publish any advertisement, brochure or similar communication which relates to a long-term policy that does not prominently include the name of the long-term insurer underwriting the long-term policy.
[Subparagraph (d) inserted by section 72(b) of Act No. 45 of 2013]