FSCA INS Notice 8 of 2020 – Exemption of certain short-term insurers and independent intermediaries from Regulations 5.2 and 5.3(1) of the Regulations under the Short-term Insurance Act, 1998
On 23 April 2020, the Financial Sector Conduct Authority (FSCA) published FSCA INS Notice 8 of 2020 – Exemption of certain short-term insurers and independent intermediaries from Regulations 5.2 and 5.3(1) of the Regulations under the Short-term Insurance Act, 1998. This notice, replaces FSCA INS Notice 6 of 2020, Exemption of certain short-term insurers and independent intermediaries from Regulation 5.2 of the Regulations under the Short-term Insurance Act, 1998, which is now withdrawn.
The reason for the update is to make a change to paragraph 3(b) to confirm that where insurers only partially reduce premium for a period, commission on the full premium may still be paid.
Extent and Conditions of Exemption
- Certain short-term insurers and independent intermediaries are hereby exempted from Regulations 5.2 and 5.3(1) of the Regulations in respect of policies that are subject to premium relief.
- The exemption referred to in paragraph 2 is subject to the following conditions:
- (a) the premium relief is granted in relation to an existing policy of which the policyholder is in good standing with the insurer; and
- (b) any commission paid in respect of a policy that is subject to premium relief does not exceed the maximum allowable commission referred to in Regulation 5.3(1), whereas a reference to “premium” in Regulation 5.3(1) must be read as the premium that would have been paid payable had it not been for the premium relief.
- Failure by a short-term insurer to comply with the conditions referred to in paragraph 3 will result in the exemption no longer being applicable to that short-term insurer.
A copy of the notice is available here.
