Regulatory Alerts2008-10-07
Added
Circular PI_STI_2_2008 Broker and Agent operations
The Short Term Insurance Act No 4 of 1998 defines insurance agents as representatives of insurers who may solicit business, issue policies, and collect premiums, while brokers represent clients and may only receive premiums offered to them, not collect them via direct instruments. Commission rates are capped at 12.5% for vehicle policies and 20% for other short-term policies, with agent-specific limits of 10% and 15% respectively, and all remuneration must be paid only after the premium is received by the insurer. Insurers retain ultimate responsibility for risk management and compliance, while brokers and agents are prohibited from accepting mandates outside their statutory definitions or receiving non-commission remuneration. Contraventions of regulations regarding premium handling and remuneration constitute offences punishable by a fine not exceeding N$15,000.00 or imprisonment for up to two years.
More like this from NAMFISA
We email you every new NAMFISA publication the day it's published.