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THE BASICS OF SHORT TERM INSURANCE (PDF)

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					          of Law
Faculty
      SIC S OF M INSURANCE
THE BA HORT-TER
      S
SHORT-TERM INSURANCE ACT 53                   PROGRAMME FORMAT
OF 1998                                       AND DURATION

Short-term insurance business means           The short programme is presented bi-
the business of providing policy benefits     annually from January to June and from
under defined short-term policies.            July to December. Contact tuition is
These include engineering policies,           compressed into a five day programme
guarantee policies, liability policies,       (February and July, from 8:30 – 16:30)
miscellaneous policies, moor policies,        at the University of Johannesburg.
accident and health policies, property        During these contact sessions, students
or transportation policies of contracts       will actively engage with the facilitator
that provide for a combination of             in class discussions. A class test is
these policies. Most types of insurance       written on the last day of the week.
covered by the term “short-term               Students are then required to submit
insurance” are instances of indemnity         an assignment six weeks after the
insurance.      However,      short-term      week during which the contact tuition
insurance is not necessarily restricted       takes place. The final exam is written
to indemnity insurance as because an          in June for those who have registered
accident and health policy belongs to         for the first semester and in November
the class of capital insurance.               for those who opted to register for the
                                              second semester.
The     Financial      Services    Board
published their latest “fit and proper”       WHO SHOULD ATTEND
requirements on 29 December 2009.
From now on, all representatives              Representatives who perform financial
performing financial services in relation     services in relation to Short-term
to Short-term Insurance: Personal Lines       Insurance, Personal Lines and Short-
and Short-term Insurance: Commercial          term Insurance, Commercial lines.
Lines will be required to write a second      Those who are obliged to write the
level regulatory examination based on         compulsory statutory exam on these
certain qualifying criteria.                  two subjects in order to comply with
                                              the “Fit and Proper” requirements will
THE SHORT PROGRAMME                           find the course extremely beneficial.
                                              Matters pertaining to Short-term
This    particular     programme       was    Insurance are presented in such a
developed        in   order    to    assist   way as to equip students not only to
representatives to master the outcomes        prepare for their statutory exams but
as prescribed by the Regulator. By            also to have a better understanding of
aligning the learning outcomes of this        their tasks as representatives.
programme with those that form part of
the latest “fit and proper” requirements,     TOPICS
we ensure that participants are
prepared for their compulsory statutory       Topics covered include the following:
examination. A further objective is to        1. Introduction, historical background
provide an detailed overview of the role         and sources of insurance
and importance of short-term insurance           •	 historical	 development	 of	 the	
in South Africa and to discuss matters               origins, development and sources
pertaining to legal policy, adjudication in          of insurance
short-term insurance and the role of the         •	 Basic	 classification	 of	 insurance	
Financial Services Board as regulator.               contracts
2. General principles of Short-term                •	 Replacement	 policy	 concepts	 as	
   Insurance                                          defined in Board Notice 43/2008
   •	 Parties	 to	 the	 insurance	 contract,	         Amendment of Part X of Schedule
      insurable      interest,    insurable           of Notice
      risk, duty to disclose material           6. Claims processing
      information.                                 •	 Identification	 of	 loss	 as	 insured	
   •	 indemnity,	                  average,	          peril in terms of the policy
      compensation,            subrogation,        •	 Claims	procedure	and	criteria	for	
      proximate cause and contribution                claims of the insurer
   •	 Determine	 the	 client’s	 insurance	         •	 Applicability	 of	 third	 party	
      needs                                           insurance and the procedures for
   •	 Explain	 the	 different	 lines	 of	             third party insurance claims
      insurance                                    •	 Roles	of	the	relevant	parties	to	a	
   •	 Describe	 the	 different	 types	                claim
      of cover and the implications                •	 Different	 types	 of	 compulsory	
      and benefits thereof (e.g. self                 statutory insurance
      insurance, aggregate excesses)               •	 Formulas,	 such	 as	 average,	
   •	 Analyse	 and	 understand	 financial	            betterment and contribution
      statements                                7. Recovery and mitigation of losses
   •	 Describe	what	is	meant	by	‘niche	            •	 Salvage	of	goods	and	recovery	of	
      market’                                         money
   •	 Indicate	 when	 a	 client	 should	 be	       •	 Legal	 rights	 of	 recourse,	 i.e.	
      referred to a niche specialist                  subrogation
3. Conclusion of an insurance contract,         8. Liability of intermediaries and dispute
   content of an insurance contract                resolution
   •	 Explain	 the	 process	 of	 offer	 and	       •	 Common	law	and	statutory	duties	
      acceptance                                      that are placed on intermediaries
   •	 Explain	 what	 is	 meant	 by	                •	 Consequences	 of	 failure	 to	
      consensus                                       properly execute common law
   •	 Recognise	 and	 interpret	 certain	             and statutory duties
      basic terms of an insurance                  •	 Measures	that	may	be	employed	
      contract, which includes:                       by intermediaries to avoid being
   •	 -	 Endorsements	 (e.g.	 noting	 of	             liable to clients for negligence
      third party interests)                       •	 Dispute	resolution	procedure
   •	 -	Restrictions                               •	 Role	 of	 the	 office	 of	 the	 Short-
   •	 -	Exclusions                                    term Insurance Ombud
   •	 -	Conditions	of	insurance                 This unique programme:
   •	 -	Application                                •	 presents	 an	 ideal	 opportunity	 to	
4. Elements of the client/broker                      representatives to prepare for
   relationship                                       their statutory exams;
   •	 Matching	 the	 needs	 of	 the	 client	       •	 to	 engage	 with	 other	 repre-
      with relevant products                          sentatives in the field;
   •	 Drafting	or	requesting	a	quotation	          •	 Invites	 participants	 to	 share	 their	
      for insurance                                   experiences and to debate policy
   •	 Reinsurance	 and	 the	 limits	 of	              and other issues.
      retention of the company
   •	 Issuing	 of	 policies/	 fulfillment	      PROGRAMME LEADER
      documents
5. Maintaining policies                         The programme leader is Prof. D
   •	 maintaining	 the	 policy	 and	            Millard, a full-time associate professor
      retaining the client                      in Private law at the University of
   •	 Renewal	or	review	of	policies             Johannesburg. Prof. Millard writes and
   •	 Conditions	 of	 collection	 and	          lectures on insurance law, law of delict
      payment of premiums                       and social security law.
ADMISSION                                    ADMINISTRATIVE ENQUIRIES

Applicants should have a National            Application forms and more details on
certificate (matric) and must also           the programme are available from the
demonstrate their ability to complete        Faculty of Law. Tel: 011 559 3739.
the programme successfully. Ideally,         Email: excurlaw1@uj.ac.za;
applicants should work as representatives
who perform financial services in relation   PROGRAMMES PRESENTED
to Short-term Insurance.                     IN 2011
FEES 2011                                    1. Higher Diploma in Tax Law (intake
                                                 every 2nd year – next intake 2012)
1. Administration fees
                                             2. Higher Diploma in International
   (non-refundable)
   Only New applications*         R280           Taxation (intake every 2nd year –
   ICT levy*                      R390           next intake 2012)
   Registration*                  R450       3. Postgraduate Diploma in Drafting
2. Tuition Fee                   R6000           and Interpretation of Contracts
   TOTAL:                        R7120       4. Postgraduate Diploma in
                                                 Corporate Law
* To be confirmed                            5. Diploma in Criminal Justice and
                                                 Forensic Investigation
Foreign students need to pay an              6. Diploma in Insolvency Law and
additional international levy of R750*.          Practice (AIPSA)
                                             7. Postgraduate Diploma in Compliance
Tuition fees include access to the
University’s library, a copy of the          8. Certificate in Money Laundering
textbook and other relevant study                Control
material.                                    9. Certificate in Board Governance
                                             10. Certificate in Compliance
Students who fail to pay all fees will not       Management
be permitted to attend classes.              11. Certificate in Sport Law*
                                             12. Certificate in Legislative Drafting
APPLICATION                                  13. Short Course in Environmental Law
                                                 and Compliance
The closing date for applications:
                                             14. Short Course in Entertainment Law*
Semester 1: 1 November 2010
Semester 2: 25 May 2011                      15. Postgraduate Diploma in Cyber Law*
                                             16. FAIS Act for Key Individuals and
The completed application form and               Representatives
application fee must be sent to:             17. The Basics of Short-term Insurance

The Registrar                                * Please contact the Faculty to confirm
University of Johannesburg                   that the programme will be offered in
P O Box 524                                  2011
Auckland Park
Johannesburg, 2006                           www.uj.ac.za/law
Please attach a certified copy of your
ID document /passport and certified
copies of your Higher Certificate
and other relevant qualifications.
Please note that student numbers are
restricted in order to ensure maximum
class participation.

				
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