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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Apply knowledge and insight into the Short Term Insurance Act (No 53 of 1998) and the accompanying regulations 
SAQA US ID UNIT STANDARD TITLE
117121  Apply knowledge and insight into the Short Term Insurance Act (No 53 of 1998) and the accompanying regulations 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04  3 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2026-06-30   2029-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
10194  Demonstrate knowledge and insight into the Short Term Insurance Act (No 53 of 1998) and the accompanying regulations  Level 4  NQF Level 04  2   

PURPOSE OF THE UNIT STANDARD 
This unit standard is intended to empower intermediaries, learners who work in short term insurance and learners who work in call centres with sufficient general knowledge of the Short Term Insurance Act to allow them to show insight into why and how short term insurance is regulated by the Act. The qualifying learner is capable of:
  • Explaining the purpose of the Short Term Insurance Act (53 of 1998) and related concepts.
  • Explaining the basic requirements of the Short Term Insurance Act that apply to insurers.
  • Explaining how the Short Term Insurance Act controls intermediaries.
  • Explaining how the Short Term Insurance Act regulates short term insurance policies and protects individual policy holders. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this unit standard. Learners should be competent in Communication, Mathematical Literacy and Financial Literacy at Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is the Short Term Insurance Act (53 of 1998) and the accompanying regulations. 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the purpose of the Short Term Insurance Act (53 of 1998.) and related concepts. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The reason for the Short Term Insurance Act is explained in terms of the need for legislation in insurance. 

    ASSESSMENT CRITERION 2 
    The parties governed by the Short Term Insurance Act are named and an indication is given of the role of the Registrar in administering the Short Term Insurance Act. 

    ASSESSMENT CRITERION 3 
    The consequences of non-compliance with the Short Term Insurance Act for a short term insurance organisation are named, and an indication is given of the recourse that a client has to the Registrar in cases of non compliance. 

    ASSESSMENT CRITERION 4 
    The concept of short term insurance is explained with reference to the different classes of business defined in the Short Term Insurance Act. 

    ASSESSMENT CRITERION 5 
    Terminology defined in the Short Term Insurance Act is explained in own words. 

    SPECIFIC OUTCOME 2 
    Explain the basic requirements of the Short Term Insurance Act as they apply to insurers. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The requirements for registration as an insurer are listed as prescribed in the Short Term Insurance Act. 

    ASSESSMENT CRITERION 2 
    Returns that an insurer is required to submit to the Registrar are identified and an indication is given of the consequences of non compliance. 

    ASSESSMENT CRITERION 3 
    The concept of a solvency margin is explained in terms of approved assets over liabilities. 

    ASSESSMENT CRITERION 4 
    The requirements imposed on Lloyd's are compared to those that apply to any other insurance organisation in terms of registration and operations. 

    SPECIFIC OUTCOME 3 
    Explain how the Short Term Insurance Act controls intermediaries. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The way in which commission and certain fees are regulated is explained with reference to the Short Term Insurance Act. 

    ASSESSMENT CRITERION 2 
    Limitations on business practices in terms of placing business with insurers are described with reference to case studies and the Short Term Insurance Act. 

    ASSESSMENT CRITERION 3 
    The concept of a Lloyd's binder is explained and the criteria used by Lloyd's to enter into an underwriting relationship with an intermediary is described with reference to specialist classes of business. 

    ASSESSMENT CRITERION 4 
    The way in which Lloyd's binders are regulated is explained with reference to case studies and the Short Term Insurance Act. 

    ASSESSMENT CRITERION 5 
    The rights and responsibilities of an intermediary in accounting to the insurer are explained with reference to the collection and payment of premiums. 

    SPECIFIC OUTCOME 4 
    Explain how the Short Term Insurance Act regulates short term insurance policies and protects individual policy holders. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The standard duration of a policy is explained with reference to the Short Term Insurance Act. 

    ASSESSMENT CRITERION 2 
    Rules governing policies issued to minors are explained with reference to the Short Term Insurance Act. 

    ASSESSMENT CRITERION 3 
    Reasons why a personal lines policy must be issued within a prescribed period are explained with reference to the rights and responsibilities of both parties to the contract. 

    ASSESSMENT CRITERION 4 
    The way in which the Short Term Insurance Act protects individual policyholders is explained with reference to Section 55 of the Act and the Policyholder Protection rules. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This Unit Standard will be internally assessed by the provider and moderated by a moderator registered by a relevant accredited ETQA or an ETQA that has a Memorandum of Understanding with the relevant accredited ETQA. 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and apply information relating to the Short Term Insurance Act. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively in explaining the concepts and terminology used in the Short Term Insurance Act. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems by recognising the consequences of non compliance. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard has replaced 10194 which was "Demonstrate knowledge and insight into the the Short Term Insurance Act (No 53 of 1998) and the accompanying regulations", Level 4 with 2 credits 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  49089   National Certificate: Financial Services  Level 3  NQF Level 03  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    Elective  66609   Further Education and Training Certificate: Retail Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  As per Learning Programmes recorded against this Qual 
    Elective  66610   Further Education and Training Certificate: Short Term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-07-30  As per Learning Programmes recorded against this Qual 
    Elective  57613   Further Education and Training Certificate: Short-Term Risk Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2012-06-30  INSETA 
    Elective  66613   Further Education and Training Certificate: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 


    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.