Glossary

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Term Definition Legal instruments

pure protection contracts

03/07/2015

THIS DEFINITION ONLY APPLIES TO THE POLICYHOLDER PROTECTION PART

means:

(1) a contract of long-term insurance in respect of which the following conditions are met:

(a) the benefits under the contract are payable only on death or in respect of incapacity due to injury, sickness or infirmity;

(b) the contract has no surrender value, or the consideration consists of a single premium and the surrender value does not exceed that premium; and

(c) the contract makes no provision for its conversion or extension in a manner which would result in it ceasing to comply with (a) or (b); or

(2) a reinsurance contract covering all or part of a risk to which a person is exposed under a contract of long-term insurance.