Key Benefits:
(1) Every insurer licensed to transact long term insurance business shall, within three months from the commencement of this Act or, in the event of subsequent alteration within one month from the implementation of such alteration, furnish the Registrar with-
(a) a copy of every printed standard policy document and standard endorsements and every table or statement of the rates of premium which he ordinarily charges and of the benefits including paid-up and surrender values which the insurer ordinarily undertakes to grant in respect of policies insuring normal lives; and
(b) a report from an actuary approved by the Registrar that any table or statement submitted by virtue of paragraph (a) is actuarially sound.
(2) No insurer shall make use of any policy document, table or statement in the conduct of its long term business referred to in subsection (1), unless an actuary approved by the Registrar has reported that it is actuarially sound.
(3) No insurer shall make use of any policy document, table or statement in the conduct of its long term business referred to in subsection (1) if-
(a) the basis of payment to or remuneration of the insurer is other than by a charge upon the relevant life insurance fund of the management costs actually incurred together with a proportion of any established surplus as provided in section 75 from that life insurance fund to such insurer; and
(b) the approval of the Registrar has not been sought and obtained in writing to any alternative defined basis or formula of payment to or remuneration of the insurer.
(4) For the purposes of subsection (3)(b) any investment unit policy where policyholders purchase investment units shall be deemed to require the insurer to seek the approval of the Registrar under the said subsection (3)(b).
66. Insurable interest essential for all policies
(1) Subject to the provisions of this Act, no policy of insurance shall be issued on the life or lives of any person or persons, or on any other event or events whatsoever, wherein the person or persons for whose use, benefit, or on whose account such policy or policies shall be made, shall have no insurable interest.
(2) An insurable interest shall be deemed to be had by-
(a) a parent of a minor or the guardian of a minor but only to the extent as provided by section 77;
(b) a husband, on the life of his wife;
(c) a wife, on the life of her husband;
(d) any person, on the life of another upon whom he is wholly or in part dependent for support or education;
(e) a company or other person, on the life of an officer or employee thereof; and
(f) a person who has a pecuniary interest in the duration of the life of another person, in the life of that person to the extent only of that pecuniary interest at the outset.
69. Periodic actuarial investigations
(1) A licensed insurer carrying on long term business shall cause an investigation to be made into the financial position of the insurer and of each life insurance fund established by it including a valuation of their individual liabilities by an actuary approved by the Registrar-
(a) once in every three years or at such shorter intervals as may be prescribed or required by the Registrar; and
(b) prior to an insurer wishing to distribute profits or transfer sums from the life insurance fund other than payments and investments under long term business or management costs actually incurred.
(2) The actuarial investigation referred to in subsection (1) shall be completed within six months of the expiry of the period to which it relates or within such extended time as the Registrar may allow:
Provided that the insurer shall, unless the Registrar in his sole discretion decides otherwise, be liable to a penalty of P50 for every day of such extended time granted by the Registrar.
(3) The failure of the insurer to complete the investigation within the time stipulated under subsection (2) shall constitute an offence under this Act.
(4) For the purposes of any investigation undertaken in accordance with the provisions of subsection (1) the value of any assets and the amount of any liability shall be determined in accordance with such method of valuation as may be prescribed.
(5) An actuary conducting an investigation undertaken in accordance with the provisions of this section shall submit to the Registrar within three months of the completion of his investigation an abstract the form and content of which shall be as prescribed.
70. Establishment of statutory life insurance fund
(1) An insurer carrying on long term insurance business after the date on which this Act comes into force shall, as at the date of commencement of its next financial year, or as at the date of the commencement of that business, establish and maintain a statutory life insurance fund (in this Act to be known as the "life insurance fund"), under an appropriate name in respect of the long term insurance business carried on by it.
(2) An insurer may establish and maintain a separate life insurance fund, under an appropriate name, in respect of any class or classes of its long term insurance business:
Provided that where an insurer establishes a separate life insurance fund in respect of a part of the long term insurance business of the insurer, the insurer shall forthwith notify the Registrar in writing of the establishment of the fund, the date from which the fund is established, the part of the long terminsurance business of the insurer in respect of which the fund is established and the name of the fund.
(3) Where an insurer carries on long term insurance business of more than one class, the Registrar may in writing direct the insurer-
(a) to establish, maintain and appropriately name one or more separate funds in respect of any class or classes of long term insurance business carried on by it;
(b) to maintain an account in respect of each of those classes of long term insurance business;
(c) to maintain separate life and annuity funds within such limits as he shall from time to time advise.
(4) All amounts received by an insurer in respect of any class of long term insurance business, after the establishment by the insurer of a life insurance fund under this section, shall be carried to that fund.
(5) Where, at any time-
(a) an insurer is maintaining more than one life insurance fund in respect of his long term insurance business; and
(b) a particular policy ceases to be included in the part of the long term insurance business of the insurer in respect of which one of the life insurance funds is maintained (in this subsection referred to as "the first fund") and is transferred to another part of the long term insurance business of the insurer in respect of which another of the life insurance funds is maintained (in this subsection referred to as "the second fund"),
the insurer shall forthwith-
(i) transfer from the first fund to the second fund assets equal to the liability on the policy at that time as ascertained by an actuary approved by the Registrar; and
(ii) transfer from the assets of the insurer to the second fund an amount equivalent to that amount by which the assets accruing to that policy from the first fund are less than the liability on such policy.
(6) The income arising from the investment of the assets of a life insurance fund shall be carried to and form part of that fund.
(7) The assets of each life insurance fund shall be kept distinct and separate from all other assets of the insurer.
(8) An insurer carrying on long term insurance business shall maintain such books of account and other records as are necessary for identifying-
(a) the assets representing each life insurance fund maintained by the insurer under this section;
(b) the liabilities attributable to that class or, as the case may be, each of those classes of long term insurance business.
71. Application of assets of insurer with long term business
(1) Subject to subsections (2) and (4), the assets representing the life insurance fund or funds maintained by an insurer licensed to transact long term business-
(a) shall be applicable only for the purposes of that business; and
(b) shall not be transferred so as to be available for other purposes of the company except where the transfer constitutes reimbursement of expenditure borne by other assets (in the same or the last preceding financial year), in discharging liabilities wholly or partly attributable to long term business.
(2) Where the value of the assets mentioned in subsection (1) is shown by an actuarial investigation to exceed the amount of the liabilities attributable to the company's long term business the restriction imposed by that subsection shall not apply to so much of those assets as represents the excess.
(3) Subsection (2) shall not authorise a transfer or other application of assets by reference to an actuarial investigation at any time after the date of commencement of the investigation and before 30 days after the date when the abstract of the actuary's report required under the terms of section 69 has been deposited with the Registrar.
(4) Nothing in subsection (1) shall preclude an insurer from exchanging, at fair market value, assets representing a life insurance fund maintained by the company in respect of its long term business for other assets of the company or a company connected with it.
(5) Any mortgage or charge including a charge imposed by a court on the application of a judgment creditor, shall be void to the extent to which it contravenes subsection (1).
(6) The assets of a life insurance fund maintained by a company in respect of its long term business may not be used for the purposes of any other business of the company or of a company connected with it notwithstanding any arrangement for its subsequent repayment out of the receipts of that other business.
(7) An insurer acting in contravention of subsection (1) shall be guilty of an offence under this Act.
(8) Every director, manager, controller and principal officer of an insurer shall be under the same civil liability, in the event of a contravention of the provisions of subsection (1), as if he had been a trustee under a trust for the execution of those provisions in respect of that fund, and as if the appropriate policyholders had been beneficiaries of such a trust, unless the director, manager, controller or principal officer proves that the contravention occurred without his knowledge and that he used all due diligence to prevent the contravention.
(9) No insurer to which this Part of the Act applies, and no company of which an insurer is a subsidiary, shall declare a dividend at any time when the value of the assets representing the life insurance fund or funds maintained by the insurer in respect of its long term business, as determined in accordance with any applicable valuation regulations, is less than the amount of the liabilities attributable to that business as so determined.
72. Restriction on transaction with connected persons
(1) Neither an insurer which transacts long term business nor a subordinate company of any such insurer shall enter into a transaction to which this section applies-
(a) at a time when the aggregate of the value of the assets and the amount of the liabilities attributable to such transactions already entered into by the insurer and its subordinate companies exceeds the prescribed percentage of the total amount standing to the credit of the insurer's life insurance funds; or
(b) at any other time when the aggregate of the value of those assets and the amount of those liabilities would exceed that percentage if the transaction were entered into.
(2) This section applies to any transaction entered into by any such insurer as is mentioned in subsection (1), (whether or not itself a subordinate company of another company), being a transaction under which-
(a) a person connected with the insurer will owe it money;
(b) the insurer acquires shares in a company which is a person connected with it; or
(c) the insurer undertakes a liability to meet an obligation of a person connected with it or to help such a person to meet an obligation,
if the right to receive the money would constitute a long term asset of the insurer, the acquisition is made out of its life insurance funds or the liability would fall to be discharged out of those funds, as the case may be.
(3) Without prejudice to subsection (2), this section applies to any transaction entered into by a subordinate company of any such insurer as is mentioned in subsection (1), being a transaction under which-
(a) the insurer or a person connected with it will owe money to the subordinate company (not being money owed by the insurer which can be properly paid out of its life insurance funds);
(b) the subordinate company acquires shares in the insurer or in a company which is a person connected with the insurer; or
(c) the subordinate company undertakes a liability to meet an obligation of the insurer or of a person connected with that company or to help the insurer or such a person to meet an obligation,
but where the subordinate company is itself an insurer as is mentioned in subsection (1), this section shall not by virtue of this subsection apply to any such transaction if the right to receive the money would constitute a long term asset of the subordinate company, the acquisition is made out of its life insurance funds or the liability would fall to be discharged out of those funds, as the case may be.
(4) In this section "subordinate company", in relation to any such insurer as is mentioned in subsection (1), means-
(a) a company having equity share capital some or all of which is held by the insurer as part of its long term assets where the share capital so held by the insurer-
(i) amounts to more than half in nominal value of that share capital; and
(ii) confers on the insurer the power to appoint or remove the holders of all or a majority of the directorships of the company whose share capital is held and more than one half of the voting power at any general meeting of that company;
(b) a company having equity share capital some or all of which is held by another company which is itself a subordinate company of the insurer where the share capital held by that other company-
(i) amounts to more than half in nominal value of that share capital; and
(ii) confers on that other company the power to appoint or remove the holders of all or a majority of the directorships of the company whose share capital is held and more than one half of the voting power at any general meeting of that company,
and for the purposes of this subsection share capital held for any person by a nominee shall (except where that person is connected only in a fiduciary capacity) be treated as held by that person, and share capital held by a person in a fiduciary capacity or by way of security shall be treated as not held by that person.
(5) For the purposes of this section a person is connected with any such insurer as is mentioned in subsection (1) if that person is not a subordinate company of the insurer but-
(a) controls, or is a partner of a person who controls, the insurer;
(b) being a company, is controlled by the insurer or by another person who also controls the insurer; or
(c) is a director of the insurer or the wife or husband or a minor son or daughter of such a director;
and for the purposes of this subsection a person controls a company if he is a controller of it within the meaning of this Act.
(6) For the purposes of this section the value of any assets and the amount of any liabilities shall be determined in accordance with any applicable valuation regulations.
(7) In this section-
"company", except in the expression "insurer", includes any body corporate;
"equity share capital" means, in relation to a company, its issued share capital excluding any part thereof which, neither as respects dividends nor as respects capital, carries any right to participate beyond a specified amount in a distribution;
"liability" includes a contingent liability;
"long term assets" and "life insurance funds", in relation to an insurer, mean respectively assets representing the fund or funds maintained by the insurer in respect of its long term insurance business and that fund or those funds;
"the prescribed percentage" means five per cent or such greater percentage as may be defined elsewhere in this Act or prescribed by regulations;
"share" has the same meaning as in the Companies Act;
"son" includes step-son, and "daughter" includes step-daughter.
(8) This section shall not be construed as making any transaction unenforceable as between parties thereto or as otherwise making unenforceable any rights or liabilities in respect of property.
73. Exemption: Botswana Development Corporation
For the purposes of section 72 the prescribed percentage shall read "15 per cent" in respect of transactions described by subsection (1) in which the connected person, defined by subsection (5) of that section, is the Botswana Development Corporation, or any of its directors or employees for the time being in that capacity.
74. Reinsurance contracts of long term insurers
An insurer transacting long term business in Botswana shall not enter into a contract of reinsurance against any liability of its long term business in Botswana otherwise than with a long term insurer or reinsurer approved by the Registrar.
75. Allocations to policyholders
(1) Where in the case of an insurer transacting long term business-
(a) there is an established surplus in a life insurance fund in which both the insurer and the long term policyholders of any category are eligible to participate; and
(b) an amount has been allocated to policyholders of that category in respect of a previously established surplus in which policyholders of that category were eligible to participate,
the insurer shall not by virtue of subsection (2) of section 71 transfer or otherwise apply assets representing any part of the surplus mentioned in paragraph (a) of this subsection unless the insurer has either allocated to policyholders of that category in respect of that surplus an amount not less than 90 per cent or complied with the requirements of subsection (2) and made to those policyholders any allocation of which notice is given under paragraph (a) of that subsection.
(2) The requirements of this subsection are that the insurer-
(a) has served on the Registrar a written notice stating that it proposes to make no allocation or an allocation of an amount, specifying it, which is smaller than 90 per cent; and
(b) has published a statement approved by the Registrar in the Gazette,
and that a period of not less than two months has elapsed since the date, or the last date, on which the company has published the statement mentioned in paragraph (b) as required by or under that paragraph.
(3) In this section-
"established surplus" means an excess of assets representing the whole or a particular part of the life insurance fund or funds maintained by the insurer in respect of its long term business over the liabilities, or a particular part of the liabilities, of the company attributable to that business as shown by an investigation to which section 69 applies.
(4) For the purposes of this section an amount is allocated to policyholders if, and only if-
(a) bonus payments are made to them; or
(b) reversionary bonuses are declared in their favour or a reduction is made in the premiums payable by them,
and the amount of the allocation is, in a case within paragraph (a) of this subsection, the amount of the payments and, in a case within paragraph (b), the amount of the liabilities assumed by the insurer in consequence of the declaration or reduction.
(5) For the purposes of this section the amount of any bonus payments made in anticipation of an established surplus shall be treated as an amount allocated in respect of the next established surplus in respect of which amount is allocated to eligible policyholders generally; and for the purposes of subsection (2) the amount of any surplus in respect of which such an allocation is made shall be treated as increased by the amount of any such payments.
(6) Subsection (1) shall not authorize the application for purposes other than those mentioned in subsection (1) of section 71 of assets representing any part of the surplus mentioned in subsection (1)(a) of this section which the insurer has decided to carry forward unappropriated; and for the purpose, of subsection (2) of section 71 the amount of any surplus shall be treated as reduced by any part thereof which the company has decided to carry forward as aforesaid.
(7) For the purposes of subsection (1) policyholders shall be taken to be eligible to participate in an established surplus in any case where they would be eligible to participate in a later established surplus representing it if it were carried forward unappropriated.
(8) This section shall not apply to the long term insurance business of the insurer under which policyholders purchase investment units in an investment unit policy.
(1) Other than as approved by the Registrar under the provisions of subsection (3)(b) of section 65-
(a) all investment units purchased and all assets and income belonging thereto shall be held solely to the benefit of the policyholders; and
(b) no insurer or other person may levy or charge any commission or fee upon a policyholder participating in an investment unit policy or upon the relevant life insurance fund for the purchase, administration or sale of such investment units.
(2) For the purposes of this Act, any alteration to the value of any holding of a unit or units, or other beneficial interest, shall be known as the "adjusted unit value".
(1) A minor or a parent or the guardian of a minor may effect a life policy upon his life and pay the premiums due under the policy with money lawfully at the disposal of the minor, his parents or guardian:
Provided that-
(i) no benefit shall be paid other than as a result of death of the minor, a parent or a guardian if the minor has not attained 16 years of age;
(ii) the total sums payable against all life insurance policies outstanding at that time on the life of a minor who dies before he attains the age of 16 years shall not exceed P2 000, or the sum of the total of the premiums paid under such policy, whichever is greater, and where there are more policies than one outstanding at that time a contribution shall be due against each policy to make up the total sum of P2 000, or such greater sum as the case may be, in proportion to the sum for which the policy is effected;
(iii) a minor who has attained the age of 16 years may, without the consent of his parent or guardian, effect a life policy upon his own life and shall be as competent in all respects to be a policy owner and to have and exercise all the powers and privileges of a policy holder in relation to the policy as if he were of adult age, except that he shall not while he is still a minor pledge or cede the policy without the written consent of his parent or guardian.
(2) Notwithstanding the provisions of subsection (1), an insurer shall not pay any sum on the death of a child before he attains the age of 16 years, except upon production of a certificate of death issued by the Registrar of Births and Deaths.
(3) For the purposes of this section the Registrar may by notice in writing to each insurer direct procedures to be undertaken in the processing of claims against such insurers on the death of minors.
Where an asset was acquired wholly or partly from money paid by an insurer under a life policy and the proceeds, on realisation of that asset exceed that amount, a reference in this Part to the proceeds on realisation or to the value of that asset shall be construed as a reference to that amount only and not any sum in excess thereof.
79. Life policy effected by married persons
(1) Notwithstanding any provision of any law to the contrary, but subject to the provisions of this Part-
(a) a married woman may in all respects as if she were a single woman of adult age and capacity-
(i) effect and own a life policy;
(ii) hold and, by way of gift or otherwise, acquire from or dispose of to any person, including her husband, any interest in a life policy;
(iii) hold any moneys paid by the insurer in respect of any interest held by her in a life policy or any assets acquired by her with those moneys;
(iv) hold any moneys or assets acquired by her in respect of the disposal of any interest held by her in a life policy or any assets acquired by her with those moneys; and
(v) dispose of to any person, including her husband, by way of a gift or otherwise, any moneys or assets referred to in subparagraphs (iii) and (iv);
(b) a man married out of community of property may, in all respects as if he were a single man of adult age and capacity, by way of gift, acquire from or dispose of to his wife-
(i) any interest in a life policy;
(ii) any moneys paid by the insurer in respect of any interest in a life policy or any assets acquired with those moneys; and
(iii) any moneys or assets acquired in respect of the disposal of any interest in a life policy or any assets acquired with those moneys.
(2) For the purposes of this Part a man married in community of property may, in all respects as if he were a single man of adult age and capacity, and subject to the provisions of this Part-
(a) dispose of to his wife, by way of a gift or otherwise-
(i) his share in any interest in a life policy effected or held by him on behalf of such community;
(ii) any moneys paid by the insurer in respect of his share in any interest under subparagraph (i) or any assets acquired with those moneys; and
(iii) any moneys or assets acquired in respect of the disposal of any interest under subparagraph (i) or any assets acquired with those moneys; and
(b) acquire from his wife, by way of gift or otherwise, and hold and dispose of for his own benefit any moneys or assets under subsection (1)(a)(v).
(3) The provisions of subsection (1)(a) shall also apply to a married woman in relation to-
(a) a life policy effected prior to her marriage;
(b) any interest in a life policy acquired prior to her marriage;
(c) any moneys due or paid to her prior to her marriage in respect of a life policy under paragraph (a), or any interest in a life policy under paragraph (b), or acquired by her prior to her marriage in respect of the disposal of any interest in a life policy; and
(d) any assets acquired prior to her marriage with moneys under paragraph (c),
as if the policy, interest, moneys or assets were effected or paid to or acquired by her or became due during her marriage.
(4) The Registrar may make copies of portions or the whole of any document or information produced under subsection (1) and may require the principal officer of an insurer, broker, agent or applicant for a licence to provide any further information, as may be required by the Registrar, in relation to any such document or information.
(5) The Registrar or any other person authorised to act on his behalf may enter the premises of any insurer, broker, agent or applicant for a licence, if it appears to him that there are reasonable grounds for suspecting that there is at the premises of such persons any document or information relating to or concerning the insurance business of such person, with respect to which-
(a) any offence has been, or is suspected on reasonable grounds to have been, committed;
(b) there are reasonable grounds for believing that it will afford evidence as to the commission of any offence; or
(c) there are reasonable grounds for believing that it is intended to be used for the purpose of committing any offence,
in order to search the premises, or to take possession of such documents or information, or to take any other step which may appear necessary for preserving such documents or information or for preventing any interference therewith.
(6) Any action taken by the Registrar or any other person authorised to act on his behalf in accordance with subsection (5) shall, as far as possible, be taken in the day time and in the presence of two or more persons.
(7) Any document or information that has been seized by the Registrar or any other person authorised to act on his behalf under this section may be retained for a period of three months and shall remain absolutely privileged during that period.
(8) Any costs incurred during any investigation carried out by the Registrar or any other person authorised to act on his behalf in accordance with this section shall be borne by the person who is the subject of the investigation, unless it is found that no breach of this Act has been committed.
80. Life policy on own life: protection afforded during life
(1) If a life policy effected by a person, whether married or not, on his own life which has inured for three years or longer from the date of the payment of the first premium-
(a) is attached in execution of a judgment or order of any court at the instance of a creditor of that person; or
(b) becomes part of that person's estate in insolvency and, if that person is married in community of property, of the joint estate of the insolvent and surviving spouse,
during the lifetime of that person, the proceeds on realization of the policy shall, to the extent specified in subsection (2), be protected against that person's creditors and against any claim in connection with such attachment or such insolvency.
(2) The protection afforded by the provisions of subsection (1) in respect of a life policy referred to therein-
(a) shall extend to so much of the proceeds on realization of the policy as does not exceed an amount of P5 000; and
(b) shall, subject to the provisions of paragraph (a), extend, if the policy is pledged, to so much of the proceeds on realization of the policy as exceeds the amount of the liability, the payment of which the pledge secures, but no further.
(3) During a period of five years as from the date upon which any moneys become due or have been paid by the insurer under a life policy under subsection (1) or assets acquired with those moneys or with those moneys and other moneys-
(a) are attached in execution of a judgment or order of any court at the instance of a creditor or a person by whom the policy was effected; or
(b) become part of the estate in the insolvency of the person by whom the policy was effected and, if that person is married in community of property, of the joint estate of the insolvent and the surviving spouse,
the moneys due or paid under the policy or the proceeds on realization of the assets shall, to the extent specified in subsection (4), be protected against that person's creditors and against any claim in connection with the attachment or the insolvency.
(4) The protection afforded under subsection (3) in respect of moneys or assets of a person referred to in that subsection-
(a) shall extend to those moneys or to the proceeds on realization of those assets in so far as those moneys and proceeds, together with-
(i) all other moneys due or paid to that person under life policies under subsection (1);
(ii) the value of all other existing assets of that person acquired with moneys paid under life policies under subsection (1) or with such moneys and other moneys; and
(iii) the realizable value of all life policies under subsection (1) of which that person is the owner,
do not exceed P5 000;
(b) shall, subject to the provisions of paragraph (a), extend, in the case of an asset which is pledged or mortgaged, to so much of the proceeds on realization of the assets as exceeds the amount of the liability, the payment of which the pledge or mortgage secures, but no further; and
(c) shall not extend to any moneys due or paid under a life policy under subsection (1) on surrender of the policy or to any assets acquired with those moneys or with those moneys and other moneys.
(5) For the purposes of this section-
(a) a life policy which an insurer issues in exchange for or in consideration of the surrender of another life policy under which the insurer was previously liable shall be regarded as having been effected on the date on which the surrendered policy was issued if the insurer received no payment other than the value of the surrender policy as a consideration for the new policy; and
(b) a life policy which an insurer issued under section 86 shall be regarded as having been effected on the date on which the old life policy for which it was substituted was issued.
81. Life policy on own life: protection afforded on death
(1) For the purposes of this section "beneficiary" means-
(a) the surviving spouse of an owner;
(b) a dependant under the will of an owner;
(c) a dependant by right of succession on intestacy; or
(d) a dependant under or by virtue of an order made in accordance with the provisions of any enactment in Botswana relating to inheritance or succession.
(2) If-
(a) a beneficiary has, on the death of the owner, a claim-
(i) under a life policy; or
(ii) to moneys or assets,
in respect of which protection is afforded under section 80; and
(b) the life policy, moneys or assets referred to in paragraph (a)-
(i) are attached in execution of a judgment or order of any court at the instance of a creditor of the deceased owner; or
(ii) become part of the deceased owner's estate in insolvency and, if the deceased owner was married in community of property, of the joint estate of the deceased insolvent and the surviving spouse,
the beneficiary shall, in respect of his claim, enjoy the protection afforded under section 80.
82. Protection afforded in respect of life policy inuring to spouse or children
(1) If-
(a) before or during marriage, a man effects or cedes for the benefit of his wife or his wife and children, including children to be born to him and his wife, or any of them;
(b) before or during marriage, a woman effects or cedes for the benefit of her husband or her husband and children, including children to be born to her and her husband, or any of them; or
(c) a person effects or cedes for the benefit of his or her children, including children to be born to him or her,
a life policy on his or her life or his or her spouse, the policy or moneys due or paid thereunder by the insurer or any asset acquired with those moneys shall not, subject to the provisions of this section and, in the case of a policy which is ceded, to the terms of the cession-
(i) be liable to be attached in execution of a judgment or order of any court at the instance of a creditor of the person by whom the policy was effected or ceded; or
(ii) form part of the estate in insolvency of the person by whom the policy was effected or ceded and, if that person is married in community of property, of the joint estate of the insolvent and the surviving spouse.
(2) A benefit conferred or purported to be conferred upon a spouse or child under a life policy under subsection (1) or by virtue of the cession of a life policy under that subsection shall, notwithstanding any agreement to the contrary between the insurer and the person by whom the policy was effected, but subject, in the case of a policy which is ceded, to the terms of the cession, be enforceable against the insurer liable under the policy at the suit of the spouse or child or the legal representative of the spouse or child, notwithstanding the spouse or child has not accepted the benefit and is not a party to the contract of insurance.
(3) A life policy shall not be treated for the purposes of this section as having been effected for the benefit of the spouse and, additionally or alternatively, the children, including unborn children, or any of them, of the person by whom the policy was effected unless, at the time of its issue the policy expressly so provides, or it was ceded for their benefit not less than 12 months prior to his being declared insolvent.
83. Protection afforded in respect of life policy inuring to wife
(1) If, before or during marriage, a man effects or cedes for the benefit of his wife a life policy on his or her life and the policy-
(a) is attached in execution of a judgment or order of any court at the instance of her creditors; or
(b) becomes part of her estate in insolvency,
the proceeds on realization of the policy shall, to the extent specified in subsection (2) of section 80, be protected against her creditors and against any claim in connection with the attachment or the insolvency.
(2) The provisions of subsections (3), (4) and (5) of section 80, and subsections (2) and (3) of section 82 shall, mutatis mutandis, apply to a life policy under subsection (1) or moneys due or paid thereunder by the insurer or any assets acquired with those moneys or with those moneys and other moneys.
84. Special provisions relating to persons married in community of property
(1) If a premium paid under a life policy effected by a spouse married in community of property or in which a spouse married in community of property holds any interest is paid out of moneys which belong to the joint estate and the liabilities of the spouses continuously exceed the value of their assets from the time of the payment of the premium until the joint estate is sequestrated as insolvent, the spouse by whom the policy was effected or who holds the interest in the policy shall be liable to pay into the estate in insolvency the amount of every such premium in so far as its payment created or increased the excess of liabilities over assets.
(2) If a woman married in community of property who has effected a life policy or has acquired or holds any interest in a life policy earns or otherwise lawfully acquires any money without utilizing for the purpose any assets belonging to the joint estate she may, without her husband's consent, use that money for the purpose of paying any premium due under the policy.
(3) Except as is provided in subsection (4), nothing in this section shall be construed as obliging the husband of a woman married in community of property to pay any premium due under a life policy referred to in this section out of the joint estate, unless he has undertaken to do so.
(4) If the husband of a woman married in community of property has effected or ceded for the benefit of his wife and, additionally or alternatively, children, including unborn children, or any of them, a life policy on his life or on the life of his wife, he shall be obliged during the marriage to pay out of the joint estate any premium under the policy so long as the value of the joint estate exceeds their joint liabilities and, if he fails to make such payment, his wife may, without the husband's consent, make the payment out of moneys she may have earned or otherwise lawfully acquired without utilizing for that purpose any assets belonging to her and her husband jointly or which may otherwise be at her disposal.
85. Selection for realization of life policies in respect of which protection is afforded
(1) If-
(a) two or more life policies or assets in respect of which protection is afforded by the provisions of sections 80, 81 and 83, being the property of one person, are attached in execution of a judgment or order of any court at the instance of a creditor; or
(b) the owner of two or more life policies or assets in respect of which protection is afforded by the provisions of sections 80, 81 and 83 is adjudged or otherwise declared insolvent,
and a part only of the aggregate realizable value of the policies or assets is protected, the judgment creditor or the trustee of the estate in insolvency, as the case may be, shall determine which policy or policies or other assets shall be realized, wholly or in part, in order to make available to him so much of the aggregate realizable value as is not protected.
86. Partial realization and partial conversion of life policies
(1) A judgment creditor of the owner of a life policy or the trustee of his estate in insolvency who is entitled to a part of the realizable value of the policy may, if he is in possession of the policy, deliver it to the insurer who is liable under the policy for the purpose of the payment to him of the sum to which he is entitled.
(2) If a judgment creditor or trustee referred to in subsection (1) is not in possession of the life policy to which the provisions of that subsection apply, the owner or any other person in possession of the policy shall, at the request of the judgment creditor or trustee, deliver it to the insurer who is liable under the policy for the purpose of the payment to the judgment creditor or trustee of the sum to which he is entitled.
(3) On receipt of a life policy delivered to it under subsection (1) or (2) the insurer shall-
(a) at the request of the judgment creditor or trustee referred to in subsection (1), pay to him a sum equal to the part of the realizable value of the policy to which he is entitled; and
(b) at the request of the owner of the policy, issue to him a new policy of the same class but for a sum insured equal to the difference between-
(i) the full sum insured under the old policy including any bonus which may have accrued in connection therewith; and
(ii) an amount which bears the same ratio to the full sum insured under the old policy, including any bonus, as the amount paid by the insurer to the judgment creditor or trustee referred to in subsection (1) bears to the full realizable value of the old policy.
(4) If an insurer has made the payment and issued a new life policy, as is provided in subsection (3), the old life policy shall lapse.
87. Provisions in case premium on life policy ceded or trust policy cannot be maintained
If a person who-
(a) has effected or ceded a life policy for the benefit of his spouse and, additionally or alternatively, children, including unborn children, or any of them; or
(b) holds a life policy in trust for any other person and is obliged to pay the premiums on the policy,
is or has been unable to pay the premiums, that person may, with the consent of each person who has an interest in the policy, or, if any such person is a minor, with the consent of his parent or guardian or the Master of the High Court, agree with the insurer liable under the policy-
(i) to exchange the policy for a paid-up life policy of a value calculated in accordance with tables furnished to the Registrar under section 65 in the case of normal lives and in any other case calculated by reference to the said tables and approved by an actuary, payable at the time and in the manner stipulated in the original policy to the person entitled to the sum insured by the original policy;
(ii) where the policy so permits, to borrow from the insurer upon the security of the policy such sums as may be necessary to keep the policy in force or to revive it; or
(iii) to apply any bonus which may have accrued in connection with the policy to a temporary or permanent reduction of premiums or to the payment of any premiums which have fallen due.
88. Life policy ceded or premium paid with intent to benefit someone at the expense of a creditor
(1) Nothing in this Part shall be construed as derogating from the powers of any court to set aside under the law relating to insolvency any cession of a life policy made with intent to benefit someone at the expense of a creditor.
(2) If a premium upon a life policy was paid with intent to benefit a person at the expense of a creditor of the person making the payment, a court may order the owner of the policy to pay a sum equal to the aggregate of all premiums so paid, with interest at a prescribed rate per annum on the amount of each premium so paid from the date of its payment, to the person to whose detriment the premium was to be paid or, if the person has been adjudged or otherwise declared insolvent, to the trustee of his estate in insolvency.
(3) An order for the payment of a sum of money made under subsection (2) shall have the effect of pledging the life policy referred to in that subsection to the person entitled to the payment as security for the payment and, until the payment is made, that person shall be entitled to possess the policy.
(1) An insurer may, subject to any rules of court in that behalf, pay into court any moneys payable by the insurer in respect of a policy for which, in the opinion of the insurer, no sufficient discharge can otherwise be obtained.
(2) The receipt of a registrar of the court for the moneys shall be a good and valid discharge to the insurer for moneys so paid in, and the moneys shall, subject to the rules of the court, be dealt with according to the order of the court.
90. No deductions in respect of other life policies
Where a claim arising under a policy is paid, no deductions shall, except with the consent in writing of the claimant, be made on account of premiums or debts due to the insurer under any other policy.
(1) A form of proposal shall be framed so as to require a person making a proposal for a life insurance policy to specify the place and date of birth of the person whose life is proposed to be insured, and the person making the proposal shall supply those particulars to the best of his knowledge and belief.
(2) Where an insurer issues a life insurance policy which provides that proof of age of the life insured is a condition precedent to the payment of the sum insured, the insurer shall, unless the age of the life insured has already been admitted by it, issue with the policy a printed notice stating that proof of age of the life insured may be required prior to the payment of the sum insured.
(3) If an insurer declines to accept the proof of age tendered in respect of a life insurance policy, whether issued on or after the coming into force of this Act, the policyholder may apply to the Registrar for an order directing the insurer to accept the proof tendered and if the Registrar after giving the insurer reasonable opportunity of being heard, makes such order in writing to the applicant and the insurer, such order shall be binding on the insurer.
(4) The preceding provisions of this section shall not apply to any life insurance policy issued before the coming into force of this Act or to any paid-up policy or certified copy of a policy issued on or after the coming into force of this Act, where the life insurance policy issued replaces a life insurance policy issued before the coming into force of this Act.
(5) Where the provisions of subsection (4) do not apply, the provisions of subsection (6) shall have effect.
(6) If-
(a) a claim is made for a benefit under a life policy which has inured for a period of three years from the date of the payment of the first premium;
(b) the age or date of birth of the insured has not been admitted by the insurer liable under the policy; and
(c) the person claiming the benefit shows that, owing to circumstances beyond the control and through no default either of himself or of the person by whom the policy was effected, there was, at no time after the date of the payment of the first premium under the policy, either in existence or available, any documentary evidence affording reasonable proof of the age or date of birth of the insured,
any written statement made in the proposal or application for the policy as to the age or date of birth of the insured shall be accepted for the purposes of the claim as the correct age or date of birth of the insured, unless the contrary is proved by records of a medical examination of the insured, made at the request of the insurer, within the period of three years referred to in paragraph (a) or in any other manner.
(1) A life insurance policy shall not be avoided by reason of a mis-statement of the age of the life insured, and where-
(a) the true age is proved to be greater than that on which the policy was based, the insurer may vary the sum insured by, and the bonuses (if any) allotted to the policy, so that, as varied, they bear the same proportion to the sum insured by, and the bonuses (if any) allotted to the policy before variation as the amount of the premiums that have been payable under the policy as issued bears to the amount of the premiums that would become payable if the policy had been based on the true age;
(b) the true age is proved to be less than that on which the policy was based, the insurer shall either-
(i) vary the sum insured by, and the bonuses (if any) allotted to, the policy before variation as the amount of the premiums that have become payable under the policy as issued bears to the amount of the premiums that would have become payable if the policy had been based on the true age; or
(ii) reduce, as from the date of issue of the policy, the premium payable to the amount that would have been payable if the policy had been based on the true age and repay to the policy owner the amount of over-payments of premiums less any amount that has been paid as the cash value of bonuses in excess of the cash value that would have been paid if the policy had been based on the true age:
Provided that, where the correct age is found to be beyond the limits within which the insurer, according to his published prospectus, issues the type of policies in question, the policy shall be void ab initio and the insurer shall refund to the insured all the premiums received on the policy after deducting the commission payments and expenses incurred by him on the policy; but nothing in this proviso shall apply to annuities and other policies where the insured has already received any payment under the policy.
(2) The provisions of subsections (4) and (5) of section 91 shall mutatis mutandis apply to this section.
(1) A life policy in which it is stated that the policy shall be void in the event of the insured, whether sane or insane, dying by his own act or suffering capital punishment within a stipulated period shall be void-
(a) in respect of any period that exceeds two years from the issue of the policy notwithstanding any policy conditions to the contrary; or
(b) if the insured dies by his own act or suffers capital punishment after the expiration of that stipulated period or after two years from the issue of the policy whichever is sooner.
(2) A life policy in which no provision such as referred to in subsection (1) is contained shall not be void by reason of the insured, whether sane or insane, dying by his own act or suffering capital punishment at any time after the issue of the policy.
94. Lost or destroyed life policy
(1) If a life policy is lost or destroyed and the loss or destruction is proved, the insurer liable under the policy shall, at the request of the policyowner and upon payment by the policyowner to the insurer of the prescribed fee, issue to the policyowner-
(a) a correct and certified copy of the policy upon which shall be inscribed any endorsement made by the insurer on the original policy after its issue; and
(b) a correct and certified copy of any record in the possession of the insurer of any dealings with the policy after its issue.
(2) A certified copy of a life policy issued under subsection (1) shall for all purposes-
(a) take the place of the policy lost or destroyed; and
(b) be the sole evidence of the contract made by the policy.
(3) From the date upon which this Act comes into force an insurer shall maintain a register of all copies of life policies issued in accordance with subsection (1) and shall allow any member of the public showing reasonable cause access to relevant parts of the register.
(4) The register referred to in subsection (3) shall contain-
(a) the full name of the life insured;
(b) the full name of the policyowner;
(c) the last known address of the policyowner;
(d) the date of birth or year of birth of the life insured; and
(e) the policy identification number.
95. Life policy may include subsidiary benefits
(1) If an insurer by notice in writing-
(a) informs the Registrar that he has issued or that he intends to issue life policies which provide benefits-
(i) on the total or partial permanent disability of the person whose life such a policy insures, or
(ii) on the death of the person whose life such a policy insures as a result of an accident or particular disease; and
(b) requests the Registrar that the policies referred to in paragraph (a) be treated for the purposes of this Act as life policies only,
any such policy issued by the insurer on or before the date of commencement of this Act or after notification to the Registrar shall, subject to the provisions of subsection (2) be treated, for the purposes of this Act, as a life policy only.
(2) A policy referred to in subsection (1)(a) shall not be treated for the purposes of this Act as a life policy only if the value of the benefits provided in subsection (1)(a)(i) and (ii) does not exceed in the aggregate-
(a) a waiver of claims to any premium under the policy in respect of the period of disability; and
(b) (i) a monthly benefit, payable during the period of disability of the person whose life the policy insures but not extending beyond the date of termination of the risk of the life insurance proper effected by the policy, amounting to two per cent of the sum payable under the policy on the death of the person;
(ii) a lump sum equal to the sum payable under the policy on the death of the person whose life the policy insures; or
(iii) in the case of a deferred annuity policy, a monthly benefit payable during the period of the disability of the person whose life the policy insures but not extending beyond the date as from which the annuity will become payable, amounting to one twelfth of the annual annuity.
(3) A life policy providing benefits such as are described in subsection (1)(a) which cannot by reason of the provisions of subsection (2) be treated for the purposes of this Act as a life policy shall, for the purposes of this Act, be treated as both a life policy and a personal accident or personal accident and sickness policy.
96. Discrimination between life policies, etc. prohibited
(1) An insurer shall not make or permit to be made any discrimination in respect of the rate of premiums charged between insurance policies which are of the same kind or the bonuses granted between life policies which are of the same kind and under which the persons whose lives are insured have an equal expectation of life.
(2) Nothing in subsection (1) shall apply to insurance policies which-
(a) are reinsurance contracts;
(b) are for large sums in excess of P200 000 at preferential rates in accordance with the current tariff of the insurer concerned;
(c) insure at preferential rates the lives of employees of one employer or a combination of employers or members of the families of such employees or the lives of a group of persons carrying on the same occupation; or
(d) are of a class prescribed.
(3) A director, employee or agent for an insurer or of a broker shall not pay, allow or give or offer to pay, directly or indirectly-
(a) a rebate of the premiums payable on an insurance policy;
(b) any consideration or thing of value intended as an inducement to effect insurance cover;
(c) preferential treatment in connection with bonus or other benefit under a life policy; or
(d) any portion of the commission payable to the agent or broker in respect of that life policy.
(4) The provisions of subsection (3) shall not apply to the grant to an employee or former employee or spouse or dependant child of an insurer or broker of a rebate of commission on a policy effected by him on his own life.
(5) No person shall knowingly receive as such any rebate of premium, advantage or preferential treatment referred to in subsection (3) as an inducement to insure.
(6) No director, employee or agent of an insurer or of a broker shall accept any proposal or application for a life policy in respect of which-
(a) a promissory note, bill of exchange or other negotiable instrument, not being a cheque payable on the date of issue; or
(b) an acknowledgement of debt, not being a stop order or direct debit,
in favour of the insurer or any person whomsoever has been given for the first year's premium or any part thereof.
(7) Any person who contravenes any provision of this section shall be guilty of an offence and liable on conviction thereof to a fine not exceeding 10 times the amount of the annual premium normally payable on an insurance policy similar to the one in respect of which the offence was committed.
(8) A person who is not an insurer, broker, agent or the employee of such insurer, broker or agent shall not, directly or indirectly, pay or allow, agree to pay or allow, or attempt to pay or allow, compensation or anything of any value to any person for-
(a) placing or negotiating insurance on any life, property or interest in Botswana; or
(b) negotiating the continuance or renewal of insurance on any life, property or interest in Botswana.
97. Non-forfeiture of life policies in certain cases of non-payment of premiums
(1) A life policy, other than those defined in subsection (5) , shall not be forfeited by reason only of the non-payment of any premium (in this section referred to as "the overdue premium") if-
(a) not less than three years' premiums have been paid in cash on the policy; and
(b) the surrender value of the policy (calculated as at the day immediately preceding that on which the overdue premium falls due) exceeds the sum of the amount of the debts owing to the insurer under, or secured by, the policy, and the amount of the overdue premium.
(2) The insurer may, until payment of the overdue premium, charge compound interest on it on terms not less favourable to the policyholder than such terms as are set out in the tables furnished to the Registrar under section 65.
(3) The overdue premium and any interest charged on it under this section and unpaid shall, for the purposes of this Act, be deemed to be a debt owing to the insurer under the policy.
(4) Without affecting the generality of subsection (1), a life policy on which less than three years' premiums have been paid in cash shall not be forfeited by reason only of the non-payment of a premium unless, on or after the day on which the premium fell due, the insurer liable under the policy serves a notice on the policyholder stating-
(a) the amount due or payable to the insurer at the date of the notice in respect of the policy; and
(b) that the policy will be forfeited at the expiration of one month after service of the notice if a sufficient sum is not paid to the insurer in the meantime.
(5) Where a premium is overdue in respect of life policies where premiums are payable at intervals not exceeding two months in each case, to collectors sent by the insurer to each policyowner, or to his residence or place of work-
(a) a policy on which less than one year's premiums have been paid in cash shall not be forfeited by reason only of the non-payment of any premium unless the premium has remained unpaid for not less than one month after it became due;
(b) a policy on which not less than one year's premiums have been paid in cash shall not be forfeited by reason only of the non-payment of any premium unless the premium has remained unpaid for not less than two months after it became due;
(c) a policy on which not less than two years' premiums have been paid in cash shall not be forfeited by reason only of the non-payment of any premium unless the premium has remained unpaid for not less than three months after it became due; and
(d) in the event of a policy on which not less than three years' premiums have been paid in cash being forfeited by reason of non-payment of any premium, the insurer shall, without requiring any application from the policyholder, grant a paid-up policy for an amount not less than that calculated in accordance with tables approved under section 65; such paid-up policy shall be payable upon the happening of the contingency upon which the amount insured under the original policy would have been payable.
(6) Nothing in this section shall preclude an insurer from granting to an owner of a policy of a kind referred to in this section more favourable terms than those specified.
(1) A policyholder who desires to discontinue further premium payments on a life policy on which not less than three years' premiums have been paid in cash shall, on application to the insurer, be entitled to receive, in lieu of that policy, a paid-up policy for an amount not less than that determined in accordance with the tables approved under section 65.
(2) The paid-up policy shall be payable upon the happening of the contingency upon the happening of which the amount assured under the original policy would have been payable.
(1) The owner of a life policy which has been in force for at least three years shall, on application to the insurer, be entitled to surrender the policy and to receive not less than the surrender value of the policy less the amount of any debt owing to the insurer under, or secured by, the policy.
(2) In the application of subsection (1) to a paid-up policy which has been issued in lieu of another policy, the period of three years shall be calculated from the date of issue of the original policy.
(3) For the purposes of this section the surrender value of a policy shall be the amount calculated in accordance with the tables furnished to the Registrar under section 65.
(4) The Registrar may, on application by an insurer, if, in his opinion, the payment in cash of surrender values as required by this section would be prejudicial to the financial stability of the insurer or to the interests of the policyholders of that insurer, suspend or vary for such period and subject to such conditions as the Registrar thinks fit, the obligation of the insurer to pay those surrender values.
100. Cancellation of life policy within limited period without penalty
(1) A life policy issued after the commencement of this Act may be cancelled by the policyholder within a period of three months from the date on which the proposal form was signed, or within one month of the receipt of the policy by the owner, whichever is the later by returning the policy to the insurer with an objection in writing to any term or condition of the policy or a statement that he does not require the policy, and the insurer shall forthwith refund any premium which has been paid in respect of the policy which shall thereupon be cancelled.
(2) For the purposes of this section, where a policy is sent by registered post by an insurer to the person to whom it is issued, it shall, unless the contrary is proved, be deemed to have been delivered to him at the time at which it would reach him in the ordinary course of the post.
(3) For the purposes of this section, a policy shall be deemed to have been returned with an objection or statement, as the case may be, if the policy and objection or statement are posted for transmission to the insurer by registered post.
(4) The insurer shall when delivering the policy to the policyholder include therewith a synopsis of the right of the policyholder under subsection (1) hereof to cancel the policy.
101. Publication of bonus rates and unit values
(1) For the purposes of this section, in the case of an insurer transacting long term business where-
(a) there is either-
(i) an established surplus in which long term policyholders of any category are eligible to participate; or
(ii) an adjusted unit value in which long term policyholders of that category benefit; and
(b) an amount has been allocated to policyholders of that category in respect of a previously established surplus or adjusted unit value in which policyholders of that category were eligible to participate,
such an allocation made shall-
(i) during the currency of the policy, be known for the purposes of this section as "the reversionary bonus"; or
(ii) in addition to any reversionary bonuses attaching to the policy, but only upon the death of the policyholder or upon the happening of some other future event resulting in the payment of benefit under the policy, be known for the purposes of this section as "the terminal bonus".
(2) An insurer transacting long term business who allocates reversionary bonuses to policyholders by the application of a factor applied to the policy sum insured shall advise the Registrar in writing and publish in the Gazette and in at least one national Botswana publication-
(a) within one month from the coming into force of this Act; or
(b) upon any alteration of the factor thereafter within one month of the date of the approval by the insurer's board of directors with the approval of the actuary,
the amount and effective date of that factor, and on what basis including what continuing basis policyholders eligible to participate are benefited by it.
(3) An insurer transacting long term business who allocated reversionary bonuses to policyholders by amending the value of any holding of units, or other beneficial interest, under an investment unit policy shall advise the Registrar in writing and publish in the Gazette and in at least one national Botswana publication-
(a) within one month from the coming into force of this Act; or
(b) upon any amendment of the value of the unit thereafter, within two weeks of the date of such amendment or at least monthly whichever is the more frequent,
the value of each unit and the effective date of each revaluation of the fund from which the unit value is calculated, and on what basis including what continuing basis policyholders eligible to participate are benefited by it.
(4) In the event that the policyholders of a single insurer holding different classes or types of policy derive different benefit levels in any bonus distribution issued to them under the terms of this section, the provisions of this section shall apply to each separate type of bonus so distributed.
(5) For the purposes of and in consequence of subsection (3), units may only be allocated to a life policy at the price published immediately prior to a policy being effected and any subsequent unit purchase shall be based upon the last published unit price at the date of purchase for the relevant type of policy.
102. Advertisements and projected benefits
(1) Where an insurer transacting long term business issues policies of a class or classes of which an established surplus, or adjusted unit value, not being a guaranteed sum, is distributable in whole or in part to policyholders then any advertisements issued by the insurer, its employees and agents and any projections on benefits which may accrue to potential policyholders in general or a potential policyholder in particular shall be governed by the provisions of this section.
(2) The provisions of subsection (1) of section 101 shall apply to this section.
(3) An insurer transacting long term business who allocates reversionary bonuses to policyholders by the application of a factor applied to the policy sum insured shall, when making any advertisement or projection of benefits use only the last published factor and application of reversionary bonus as required under the terms of subsection (2) of section 101.
(4) An insurer transacting long term business who allocates reversionary bonuses to policyholders by amending the value of any holding of units, or other beneficial interest, under an investment unit policy shall when making any advertisement or projection-
(a) of benefits, use only the annual average compounded interest growth rate over the effective four year period of the said unit produced from the mean valuations of-
(i) the unit value effective as at the first day of the month in which the advertisement or projection is made and of the 11 preceding monthly unit values; and
(ii) the unit value effective as at the first day of the month, 60 months previous to the month in which the advertisement or projection is made and of the 11 subsequent monthly unit values;
(b) use only those unit values for the purposes of paragraph (a) which shall be published in accordance with subsection (3) of section 101; and
(c) include in the advertisement or projection if applicable the basis or formula required to be approved by the Registrar under the provisions of subsection (3) of section 65.
(5) When making an advertisement or projection under this section, an insurer shall-
(a) not include in the financial projection any reference to any terminal bonus or other distribution except that mention may be made to the existence of such a possible provision; and
(b) prominently make mention in all advertisements and projections that such projections are not guaranteed and may vary both upwards and downwards from that stated in the advertisement or projection.
