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Questions and Answers

What is the maximum number of days an insurer has to provide a policy document after inception of the policy?

  • 60 days
  • 21 days
  • 31 days (correct)
  • 14 days

An insurance policy that is illegal will always be void.

True (A)

What happens if the insured does not disclose material information before the conclusion of the policy?

The insurer can cancel the insurance contract.

An insured must disclose all material information that falls within their knowledge and all information that they should have known if they had taken reasonable ______.

<p>steps</p> Signup and view all the answers

Match the following disclosure requirements with the correct descriptions:

<p>Nature of the relevant contract = General explanation of the policy type Premiums payment = Details of the premiums and increases Cooling-off periods = Information about cooling-off provisions Disclosure obligations = Consequences of failing to disclose material facts</p> Signup and view all the answers

Which of the following is a requirement for the insured regarding disclosures?

<p>All material information within their knowledge (C)</p> Signup and view all the answers

The insurer is not obligated to explain the nature and extent of policy benefits to the insured.

<p>False (B)</p> Signup and view all the answers

What must an insured do if they are satisfied about the correctness of information submitted on their behalf?

<p>The insured must ensure the correctness of the information.</p> Signup and view all the answers

What are alterable provisions?

<p>Provisions that can be changed by the Memorandum of Incorporation (MOI) as needed. (A)</p> Signup and view all the answers

Section 6 prohibits any changes to agreements that aim to reduce the effect of unalterable provisions.

<p>True (A)</p> Signup and view all the answers

What can render a document void under substantial compliance?

<p>If the deviation negatively affects the substance or misleads a reader.</p> Signup and view all the answers

A person who enters into a pre-incorporation contract is __________ with other persons for liabilities created.

<p>jointly and severally liable</p> Signup and view all the answers

Match the following terms with their definitions:

<p>Alterable Provisions = Can be changed by MOI Substantial Compliance = Deviations that do not invalidate actions unless misleading Pre-Incorporation Contracts = Agreements made on behalf of a non-existent entity Joint and Several Liability = Shared responsibility among parties for obligations</p> Signup and view all the answers

If a person enters an agreement in the name of an entity that does not yet exist, what is the consequence if that entity is not incorporated later?

<p>The person is personally liable for the obligations incurred. (C)</p> Signup and view all the answers

A company's rejection of a pre-incorporation contract discharges the person's liability under that agreement.

<p>True (A)</p> Signup and view all the answers

What are the two conditions under which deviations from prescribed forms do not invalidate actions?

<ol> <li>It does not negatively and materially affect the substance. 2. It is not misleading to a reader.</li> </ol> Signup and view all the answers

Which of the following acts relates specifically to data protection?

<p>The Protection of Personal Information Act (D)</p> Signup and view all the answers

The Employment Equity Act promotes fair treatment in the workplace regardless of gender, race, or disability.

<p>True (A)</p> Signup and view all the answers

What is the primary purpose of competition law?

<p>To promote fair competition and prevent monopolies.</p> Signup and view all the answers

The __________ Act governs the basic working conditions and rights of employees.

<p>Basic Conditions of Employment</p> Signup and view all the answers

Match the following acts with their primary focus:

<p>Labour Relations Act = Regulates the relationship between employers and employees Competition Act = Prevents anti-competitive behavior Promotion of Access to Information Act = Ensures public access to information Data Protection Act = Protects personal data</p> Signup and view all the answers

Which of the following is NOT a source of competition law?

<p>Basic Conditions of Employment Act (A)</p> Signup and view all the answers

The Competition Act allows for monopolistic practices if they are deemed beneficial to consumers.

<p>False (B)</p> Signup and view all the answers

Name one of the key agencies responsible for enforcing the Competition Act.

<p>Competition Commission of South Africa</p> Signup and view all the answers

The __________ Act aims to ensure transparency in governmental processes by granting access to information.

<p>Promotion of Access to Information</p> Signup and view all the answers

Match the following employment laws with their focus areas:

<p>Basic Conditions of Employment Act = Sets minimum employment standards Labour Relations Act = Regulates collective bargaining Employment Equity Act = Promotes equal opportunity in employment Social Protection Act = Provides safety nets for workers</p> Signup and view all the answers

What is a significant concern addressed by the Data Protection Act?

<p>Privacy of personal information (B)</p> Signup and view all the answers

The Labour Relations Act only applies to private sector employees.

<p>False (B)</p> Signup and view all the answers

What is the main goal of the Basic Conditions of Employment Act?

<p>To ensure fair labor practices and working conditions.</p> Signup and view all the answers

The __________ of Competition Law is to prevent unfair competitive practices that could harm market competition.

<p>objective</p> Signup and view all the answers

Which of the following provisions does the Protection of Personal Information Act enforce?

<p>Confidentiality of consumer information (B)</p> Signup and view all the answers

Flashcards

Policy Delivery Time

Insurers must give policy documents to the insured as soon as possible, but no later than 31 days after the policy starts.

Illegal Insurance Policies

Insurance policies that break the law (statutes, public policy, or morals) are not enforceable or may be void.

Insured Disclosures

Before getting an insurance policy, the insured needs to tell the insurer important details (material information).

Material Information

Information that a sensible person would think is important for the insurance company to know, so they can accurately assess the risk.

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Insured's Knowledge

The insured needs to tell the insurer everything they know and should reasonably know about the situation.

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Insurer Disclosures

Insurers must clearly explain policy details, benefits, premiums, fees, and conditions, including potential cooling-off periods, disclosure requirements, and verification processes.

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Insurance Policy Legality

An insurance contract must not violate common law, legislation, or public policy. A violation will make the contract unenforceable.

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Consequences of Non-Disclosure

Failure to disclose material information can allow the insurer to cancel the contract.

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Relevance of Insurance

Insurance is important because it protects against potential losses like property damage.

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Insurance Definition

Insurance is a contract where one party pays a fee to another (insurer) for coverage against potential financial loss, if a specified event occurs

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Insurance Contract Essentials

Key elements of an insurance agreement, including agreement, proposal, policy, and disclosure.

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Policy Formation

The process of creating an insurance contract, including agreement and documents.

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Proposal Forms

Documents used to gather information about the risk being insured.

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Cooling-off Period

A time frame to reconsider an insurance purchase.

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Insurance Claims

A request for payment for a covered event of loss.

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Insurable Interest

Having a legitimate concern for the loss of the item covered.

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Insurable Interest-Example

Having a financial stake to protect. Homeowner has interest in their home.

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Notice and Time-bar Clauses

Insurance policies often specify how and when claims must be submitted or there is risk of losing it.

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Fraudulent Claims

False claims designed to receive insurance payouts.

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Subrogation

Insurer's right to pursue compensation from the at-fault party.

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Different types of insurance

Various insurance covers to meet various needs based on duration, peril and other requirements.

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Sources of South African Insurance Law

The various legal bodies responsible for shaping South African insurance law.

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Branches of Insurance Law

Different areas of insurance law, possibly including contract law, property law, personal injury and so on.

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Alterable Provisions

Company provisions that can be changed by the Memorandum of Incorporation (MOI).

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Anti-avoidance provisions (s6)

Agreements, MOI provisions, and transactions can be declared void if they're designed to bypass company rules.

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Substantial Compliance (s6(8))

Documents must meet the core requirements, not perfect formats to be valid.

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Pre-incorporation Contracts

Agreements made before a company exists, binding on future entity if incorporated.

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Joint and Several Liability

All people acting on an entity's behalf are responsible, even if only one person does something wrong.

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Contemplated Entity

A business planned to be formed but not yet created.

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Substituted Agreement

A later agreement that replaces an earlier pre-incorporation agreement.

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Unalterable Provisions

Company provisions that cannot be changed. Often these are important and/or legally mandated.

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Study Notes

KRG201 Exam Notes

  • Insurance:
    • Insurance is defined as a means of transferring risk by contract.
    • Sources of South African insurance law include common law, statutes, and subordinate legislation.
    • The three branches of insurance law are insurance contract law, statutory regulation of insurers, and the law of insurance intermediaries.
    • Different types of insurance include indemnity and non-indemnity insurance.
    • The interest in being protected is to compensate for financial losses, not necessarily at the time the loss occurs.
    • The duration of insurance policies can be short or long-term, and this determines the type of insurance.
    • The peril or event insured is the cause of the loss, whether damage, injury or destruction.
    • Essential elements of an insurance contract include the insurer's undertaking to pay, exchange for a premium, the trigger event, and compensation for loss.
    • Insurance policies can be made through direct marketing or proposal forms, must comply with cooling-off periods and legislation.
    • Insurance claims involve risk description, risk coverage interpretation, limitations, and causation. Insurable interest in the peril or harm is needed.
    • Claims can be made in specific manners and time-bar clauses are crucial in disputes.
    • Acts of fraud in insurance claims will void any claim made.
  • Introduction to Business Forms and Partnerships:
    • Types of business entities include sole proprietorships, partnerships, close corporations, and companies.
    • Key aspects of Company law include the company as a business structure, types of companies, registration, effects and processes of incorporation, and corporate governance (shareholders, and directors).
  • Company Law:
    • Study unit 1: the company as a business structure
    • Study unit 2: processes of registration and incorporation
    • Study unit 3 and 4: pre-incorporation contracts, the capacities and representations of a company
    • Study unit 5: Corporate governance- shareholders and shares
    • Study unit 6: Corporate Governance- Directors
    • Study unit 7: Transparency, accountability, and integrity; Whistleblowing and miscellaneous matters.
    • Study unit 8: Reckless trading and Corporate Insolvency
    • Study unit 9: Group companies
    • Study unit 10: Corporate Finance
  • Labor Law:
    • Key aspects of labor law include the employment relationship, legislation (Basic Conditions of Employment Act, Labour Relations Act, Employment Equity Act, National Minimum Wage Act), social protection
    • General aspects of Labor Law.

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