Page 13 - Personal Underwriting Mandates & Guidelines - Binder - Version 3

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– When a person is placed into sequestration by a court, a trustee takes over administering the person’s affairs.
If the client has been rehabilitated, we are able to offer insurance and no referral is required.
Underwriting details to be provided upon referral
If the client is still under sequestration, then we ask:
– Why and when was the client placed under sequestration, please give full details.
– Has the trustee consented to the client procuring insurance and request proof of the trustee’s consent.
– If still in sequestration or if the client was sequestrated as a result of fraud or dishonesty we will not offer cover.
The Trustee’s details must be noted on the policy schedule. All communication must be sent “care of the Trustee”.
Curatorship
Definition
There are various reasons why someone would need to be appointed to safeguard another’s affairs, ranging from financial, personal or otherwise. This need could arise due to mental illness, physical disability, or illness set on by old age.
– Any person incapable of managing their own affairs may be placed under curatorship. It could be that the person is mentally ill or physically disabled; it could also be that the person has a gambling addiction or a substance dependency and as a result thereof squanders his estate.
– In matrimonial matters, curators could be used to safeguard the interests of minor children, where such interests often form the very dispute between parents and which may not always be sufficiently protected by an overworked family advocate.
– A person who is “compos mentis (in other words, a person with full mental capacity), but incapable of managing their own financial affairs may be declared a prodigal. In such an instance, a curator may be appointed. This is particularly useful in awards for damages where the amount awarded needs to be protected, but the person is of sound mind.
Underwriting details to be provided upon referral
– Why is the client under curatorship?
– Do you have the curator’s consent? If they are under curatorship, we need the curator’s consent.
The Trustee’s details must be noted on the policy schedule. All communication must go “care of the Trustee”.
Under administration
Definition
A magistrate’s court places a person under administration because the person cannot pay a debt or a judgment declared against them. The maximum debt to be placed under administration is R50 000.
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General
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Personal Underwriting Mandates & Guidelines – Binder – Version 3