CRITERIA FOR MEMBERSHIP OF SAUMA
Completion of SAUMA Application form.
Satisfactory credit checks of the company and directors.
Professional Indemnity Cover - Minimum limit of R5-million
Fidelity Guarantee Cover - Minimum limit of R1-million
Directors, Members and Officers to be of good standing in the Insurance Community.
A written Underwriting Managers Contract with a registered South African Insurance Company (which includes Lloyds) is required.
Ongoing employment of "Fit & Proper" staff.
Compliance with the Short-Term Insurance Act, No 53 of 1998 particularly Section 48.
BENEFITS OF SAUMA MEMBERSHIP
Liaison with inter alia the Financial Services Board regarding :
*disclosure of UMA remuneration.
*the role of Underwriting Managing Agents.
*discussion regarding the question of Recognised Prior Learning (RPL) and acceptance thereof.
FAIS - ensuring compliance.
Dealing with all industry matters and ensuring that SAUMA members interests are at all times protected and / or promoted.
The Financial Services Board is in favour of Associations as representative bodies as this obviates them having to deal with each company separately !
SAUMA is a Professional body and Underwriting Managers are bound together by an Ethical Code in their dealings with each other, insurance companies and brokers.
The SAUMA committees (as attached) are in a position to give consideration to any legislation changes and in fact any other matters which could affect its members including through the use of and/or reference to parties with a particular expertise.
SAUMA subscriptions are realistic. One cannot BUY membership of SAUMA. One has to earn it by meeting required standards. The UMA earns its membership by making written application and complying with all the laid down criteria for membership. Only in this way can SAUMA arrive at a decision as to the "Fit and Proper" status of the applicant. This is ongoing, and at a modest annual subscription fee of R4,750.00 plus VAT.
Any member is entitled to nominate a suitable person to the SAUMA Board of Directors (members are invited to nominate a suitable candidate at each AGM). Furthermore, members may nominate persons to membership of our committees.
BENEFITS TO BROKERS AND INSURERS
Ensure Standards of Proficiency and financial status via "screening" through application for membership which includes a professional credit check and compliance with a Code of Conduct and Practice.
SAIA and SAFSIA recognise SAUMA as the representative body for underwriting managers. Obviously a representative body must have an office fully manned on a daily basis and costs in this regard have increased since the year 2000 !
Brokers are increasingly recognising the vital and important role played by SAUMA in ensuring that its members are "Fit and Proper" and comply with its Code of Conduct. We are sure that in the near future all of the insurers (the UMA's principals) will also realise the importance and advantages of SAUMA and go the same way viz utilise only those Underwriting Managers who have been accepted for membership of SAUMA.
Any complaint against a member is thoroughly investigated.
CODE OF CONDUCT
In view of the great degree of responsibility of Underwriting Managers only the highest
standards of professional skill and etiquette are regarded as good enough for the
profession and full compliance with the following Code of Conduct and Practice is
required.
Members Shall:
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At all times conduct business in an honest, fair and equitable manner and with good faith and integrity.
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Act with due skill, care and diligence; and maintain objectivity in underwriting and claims handling.
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On effecting the required insurance cover, disclose to the independent intermediary and insured person the name of the insurer concerned and the relative policy/certificate of insurance number.
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Notify the independent intermediaries and insured persons if the Management Contract with the insurer is cancelled.
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Comply with all legislation and regulatory requirements relating to them.
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Refrain from committing any malicious act or making any malicious statement against another member/sector of the insurance market.
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Refrain from issuing statements which would bring the insurance industry into disrepute.
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Undertake not to issue statements or advertisements which make false, misleading and/or extravagant claims.
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Ensure that the extent of the cover provided is clear and unambiguous.
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Ensure that all independent intermediaries with whom they deal comply with legislation relating to payment of premiums to insurers, and payment of premiums is made in terms of the policy of insurance as originally arranged.
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Offer insurance advice and services and arrange such cover only in areas which are permitted in terms of their contracts with insurers.
Application Form
DEFINITION OF “UNDERWRITING MANAGER”
Underwriting Manager means any person:
who or which underwrites and issues a financial product to clients in the form of a short-term policy as defined in the Short-Term Insurance Act, No 53 of 1998 by virtue of an authority, approval or right granted to such person in terms of a written agreement entered into by such person with a short-term insurer or a Lloyds’ underwriter authorised to carry on short-term insurance business in the Republic of South Africa; and
whose sole remuneration is derived from such activities and such person is deemed to be an agent of the short-term insurer or Lloyds underwriter; and
whose acts shall in all respects be and are fully binding upon the short-term insurer or Lloyds underwriter; and
who receives premiums as an Underwriting Manager on behalf of the short-term insurer or Lloyds underwriter, then such premium shall irrevocably be deemed to have been received by the short-term insurer or Lloyds underwriter; and
who in terms of the written agreement with a short-term insurer or a Lloyds underwriter has the authority insofar as their relationship is concerned, to:
accept, commit, bind, quote terms and conditions in respect of insurance business on behalf of the short-term insurer or a Lloyds underwriter;
adjudicate, settle, compromise, agree claims on behalf of a short term insurer or a Lloyds underwriter;
provide services that would normally have been provided by a short-term insurer or a Lloyds underwriter had the underwriting manager not been in existence and such insurance business been accepted by such short-term insurer or Lloyds underwriter.
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