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Insurance (Agents and Brokers) Act 1984

Authoritative Version
Act No. 75 of 1984 as made
An Act relating to insurance intermediaries
Date of Assent 25 Jun 1984
Date of repeal 11 Mar 2002
Repealed by Financial Services Reform (Consequential Provisions) Act 2001

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Insurance (Agents and Brokers) Act 1984

No. 75 of 1984

TABLE OF PROVISIONS

PART I—PRELIMINARY

Section

1.      Short title

2.      Commencement

3.      Crown to be bound

4.      Extension to external Territories

5.      Effect of Act on other laws

6.      Application of Act

7.      Exceptions to application of Act

8.      State and Northern Territory insurance

9.      Interpretation

PART II—GENERAL

10.    Insurance intermediaries other than brokers to operate under written agreements

11.    Liability of insurer for agents and employees

12.    Certain insurance intermediaries to be agents of insurers

13.    Representations, &c., by intermediaries

14.    Effect of payments to intermediaries

15.    Liability in relation to binders

16.    Disclosure by persons acting under binders in respect of insurance contracts

17.    Disclosure by persons acting under binders in respect of claims

TABLE OF PROVISIONS—continued

PART III—REGISTRATION OF INSURANCE BROKERS

Section

18.    Interpretation

19.    Brokers not to carry on business unless registered

20.    Applications for registration

21.    Registration of brokers

22.    Registers to be kept

23.    Inspection of Registers, accounts and contracts

24.    Delay in registration or renewal

25.    Suspension or cancellation of registration

26.    Insurance broking accounts

27.    Duties of broker in relation to premiums, &c.

28.    Distribution of insurance broking account moneys on insolvency, &c.

29.    Brokers not bound by certain agreements, &c.

30.    Misdescription of business

31.    Brokers to disclose agency

PART IV—MISCELLANEOUS

32.    Brokers to give certain information

33.    Insurance intermediaries to give certain information

34.    Insurance intermediary to notify insured if insurer is an unauthorized foreign insurer

35.    Restrictions as to receipt and payment of remuneration

36.    Insurance claims moneys

37.    Certain moneys to be trust moneys

38.    Broker to notify insured of association with insurer

39.    Misdescription by insurance intermediaries

40.    Liability of directors and employees

41.    Hearing before making adverse decision

42.    Application for review

43.    Statement to accompany notice of decisions

44.    Accounts and audit

45.    Certain particulars to be included in reports

46.    Prosecutions

47.    Delegation

48.    Regulations


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Insurance (Agents and Brokers) Act 1984

No. 75 of 1984

 

An Act relating to insurance intermediaries

[Assented to 25 June 1984]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

PART I—PRELIMINARY

Short title

1. This Act may be cited as the Insurance (Agents and Brokers) Act 1984.

Commencement

2. (1) Part I, Part II (other than sections 10 and 12) and Part IV (other than section 37) shall come into operation on the day on which this Act receives the Royal Assent.

(2) The remaining provisions of this Act shall come into operation on such day as is, or such days as respectively are, fixed by Proclamation.

Crown to be bound

3. (1) This Act binds the Crown in right of the Commonwealth or of a Territory in which this Act applies or to which this Act extends but does not bind the Crown in right of a State.

(2) Nothing in this Act renders the Crown in right of the Commonwealth or of a Territory liable to be prosecuted for an offence arising under this Act.

Extension to external Territories

4. This Act extends to an external Territory that is for the time being declared by Proclamation to be a Territory to which this Act extends.

Effect of Act on other laws

5. It is the intention of the Parliament that this Act is not, except in so far as this Act, either expressly or by necessary intendment, otherwise provides, to affect the operation of any other law of the Commonwealth, the operation of a law of a State or Territory or the operation of any principle or rule of the common law or of equity.

Application of Act

6. (1) Subject to sections 7 and 8, the application of this Act extends to contracts of insurance and proposed contracts of insurance, and to conduct in connection with such contracts and proposed contracts, being contracts or proposed contracts the proper law of which is or would be the law of a State or of a Territory in which this Act applies or to which this Act extends.

(2) For the purposes of sub-section (1), where the proper law of a contract or proposed contract would, but for an express provision to the contrary included or to be included in the contract or in some other contract, be the law of a State or of a Territory in which this Act applies or to which this Act extends, then, notwithstanding that provision, the proper law of the contract is the law of that State or Territory.

Exceptions to application of Act

7. This Act does not apply to or in relation to contracts and proposed contracts—

(a) of reinsurance; or

(b) of insurance entered into, or proposed to be entered into, by a registered health benefits organization, as an insurer, in the course of its business as a registered organization within the meaning of Part VI of the National Health Act 1953.

State and Northern Territory insurance

8. This Act does not apply to or in relation to—

(a) State insurance or Northern Territory insurance; or

(b) a contract of insurance or proposed contract of insurance entered into or proposed to be entered into by—

(i) a State or the Northern Territory; and

(ii) some other insurer,

as joint insurers.

Interpretation

9. In this Act, unless the contrary intention appears—

“binder” means—

(a) an authority given by an insurer to an insurance intermediary to enter into, as agent for the insurer, contracts of insurance on behalf of the insurer as insurer; or

(b) an authority given by an insurer to an insurance intermediary to deal with and settle, as agent for the insurer, claims against the insurer as insurer,

but does not include an authority of a kind referred to in paragraph (a) that is limited to effecting contracts of insurance, or contracts of insurance of a particular class, by way of provisional cover unless there is also in existence an authority given by the insurer to the insurance intermediary to enter into, as agent for the insurer and otherwise than by way of provisional cover, contracts of insurance, or contracts of insurance of that class, as the case may be;

“Commissioner” means the Life Insurance Commissioner or the Insurance Commissioner;

“contravention”, in relation to this Act, includes a failure to comply with this Act;

“corporation” means a body corporate constituted by a law of the Commonwealth or of a State or Territory or a company;

“general insurance broker” means a person who is for the time being registered under Part III in respect of general insurance business;

“general insurance business” has the same meaning as “insurance business” has in the Insurance Act 1973;

“insolvent company under administration” means a company—

(a) in respect of which a compromise or arrangement is being administered under Part VIII of the Companies Act 1981 or of the corresponding provisions of the law of a State or Territory;

(b) the property or part of the property of which is in the possession or under the control of a receiver, or of a receiver and manager;

(c) that is under official management pursuant to Part XI of the Companies Act 1981 or of the corresponding provisions of the law of a State or Territory; or

(d) that is in the course of being wound up or in respect of which a provisional liquidator has been appointed;

“insolvent under administration” means a person—

(a) who, under the Bankruptcy Act 1966 or the law of an external Territory, is a bankrupt in respect of a bankruptcy from which he has not been discharged;

(b) who has executed a deed of assignment under Part X of the Bankruptcy Act 1966 or the corresponding provisions of the

law of an external Territory where the terms of the deed have not been fully complied with;

(c) who has executed a deed of arrangement under Part X of the Bankruptcy Act 1966 or the corresponding provisions of the law of an external Territory where the terms of the deed have not been fully complied with; or

(d) whose creditors have accepted a composition under Part X of the Bankruptcy Act 1966 or the corresponding provisions of the law of an external Territory where a final payment has not been made under the composition;

“insurance broker” means a person who carries on the business of arranging contracts of insurance, whether in Australia or elsewhere, as agent for intending insureds;

“Insurance Commissioner” includes a person acting as the Insurance Commissioner;

“insurance intermediary” means a person who—

(a) for reward; and

(b) as an agent for one or more insurers or as an agent for intending insureds,

arranges contracts of insurance in Australia or elsewhere, and includes an insurance broker;

“insured”, in relation to a contract of life insurance, means a person (other than the insurer) who is entitled to a benefit under the contract, whether that person is the life insured or some other person, and “intending insured” has a corresponding meaning;

“life insurance broker” means a person who is for the time being registered under Part III in respect of life insurance business;

“life insurance business” has the same meaning as in the Life Insurance Act 1945;

“Life Insurance Commissioner” includes a person acting as the Life Insurance Commissioner;

“registered insurance broker” means a person who is for the time being registered under Part III, whether in respect of general insurance business or life insurance business or in respect of each of those businesses;

“relevant Commissioner” means—

(a) in relation to matters concerning life insurance—the Life Insurance Commissioner; and

(b) in relation to matters concerning general insurance—the Insurance Commissioner.

PART II—GENERAL

Insurance intermediaries other than brokers to operate under written agreements

10. (1) An insurance intermediary (other than an insurance broker) shall not arrange, or hold himself out as entitled to arrange, a contract of insurance as agent for an insurer unless an agreement in writing between the intermediary and the insurer authorizes the intermediary to arrange—

(a) that contract;

(b) any contracts of insurance; or

(c) a class of contracts of insurance in which that contract is included, as agent for that insurer.

(2) An insurer shall not cause or permit an insurance intermediary (other than an insurance broker) to arrange, or hold himself out as entitled to arrange, a contract of insurance as agent for that insurer unless an agreement in writing between the insurer and the intermediary authorizes the intermediary to arrange—

(a) that contract;

(b) any contracts of insurance; or

(c) a class of contracts of insurance in which that contract is included, as agent for that insurer.

(3) Sub-sections (1) and (2) do not apply in relation to any act or thing done by an employee of an insurer in the course of performing his duties as such an employee.

(4) Where an insurance intermediary to whom sub-section (1) applies proposes, or holds himself out as entitled, to arrange, or has arranged, a contract of insurance as agent of an insurer, the relevant Commissioner, or the intending insured or the insured, may request the intermediary to give him a copy of the agreement authorizing the intermediary to arrange that contract, and, if such a request is made, the intermediary shall comply with the request within 7 days after the day on which the request is received by him.

(5) A relevant Commissioner may request an insurer to give him a copy of the agreement referred to in sub-section (2) that is in force between the insurer and an insurance intermediary referred to in the request, and, if such a request is made, the insurer shall comply with the request within 7 days after the day on which the request is received by the insurer.

(6) The validity of a contract of insurance is not affected by a contravention of this section.

Penalty:

(a) in the case of a natural person—$1,000 or imprisonment for 6 months, or both; or

(b) in the case of a corporation—$5,000.

Liability of insurer for agents and employees

11. (1) An insurer is responsible, as between the insurer and an insured or intending insured, for the conduct of his agent or employee, being conduct—

(a) upon which a person in the circumstances of the insured or intending insured could reasonably be expected to rely; and

(b) upon which the insured or intending insured in fact relied in good faith,

in relation to any matter relating to insurance and is so responsible notwithstanding that the agent or employee did not act within the scope of his authority or employment, as the case may be.

(2) The responsibility of an insurer under sub-section (1) extends so as to make the insurer liable to an insured or intending insured in respect of any loss or damage suffered by the insured or intending insured as a result of the conduct of the agent or employee.

(3) Neither sub-section (1) nor (2) affects any liability of an agent or employee of an insurer to an insured or intending insured.

(4) An agreement, in so far as it purports to alter or restrict the operation of sub-section (1) or (2), is void.

(5) An insurer shall not make, or offer to make, an agreement that is, or would be, void by reason of the operation of sub-section (4).

Penalty:

(a) in the case of a natural person—$1,000 or imprisonment for 6 months, or both; or

(b) in the case of a corporation—$5,000.

Certain insurance intermediaries to be agents of insurers

12. (1) Subject to this section, an insurance intermediary shall be deemed, in relation to any matter relating to insurance and as between an insured or intending insured and an insurer, to be the agent of the insurer and not of the insured or intending insured.

(2) Sub-section (1) does not apply to a general insurance broker in relation to any matter relating to general insurance business.

(3) Sub-section (1) does not apply to a life insurance broker in relation to any matter relating to life insurance business.

(4) Sub-section (1) does not affect any liability to which, if that sub-section had not been enacted, an insurer would have been subject in respect of the conduct of an insurance intermediary.

Representations, &c, by intermediaries

13. (1) A person to whom this section applies shall not wilfully and with intent to deceive make a false statement, being a statement that the person making the statement intends to be acted upon—

(a) as to any amount that would be payable in respect of a proposed contract of insurance; or

(b) as to the effect of any of the provisions of a contract of insurance or of a proposed contract of insurance.

(2) A person to whom this section applies shall not wilfully and with intent to deceive, in relation to a proposed contract of insurance—

(a) write on a form, being a form that is given or sent to the insurer, matter that is material to the contract and is false or misleading in a material particular;

(b) omit to disclose to the insurer matter that is material to the proposed contract;

(c) advise or induce the intending insured to write on a form, being a form that is given or sent to the insurer, matter that is false or misleading in a material particular; or

(d) advise or induce the intending insured to omit to disclose to the insurer matter that is material to the proposed contract.

(3) A person to whom this section applies shall not wilfully and with intent to deceive, in relation to a claim under a contract of insurance—

(a) fill up, in whole or in part, a form, being a form that is given or sent to the insurer, in such a way that the form is false or misleading in a material particular;

(b) omit to disclose to the insurer matter that is material to the claim;

(c) induce the insured to fill up, in whole or in part, a form, being a form that is given or sent to the insurer, in such a way that the form is false or misleading in a material particular; or

(d) advise or induce the insured to omit to disclose to the insurer matter that is material to the claim.

(4) An act done in contravention of sub-section (1) or (2) constitutes an offence against the sub-section concerned notwithstanding that a contract of insurance does not come into being.

(5) The persons to whom this section applies are—

(a) insurance intermediaries; and

(b) agents and employees of insurance intermediaries and of insurers.

Penalty:

(a) in the case of a natural person—$2,000 or imprisonment for 1 year, or both; or

(b) in the case of a corporation—$10,000.

Effect of payments to intermediaries

14. (1) Where a contract of insurance is arranged or effected by an insurance intermediary, payment to the insurance intermediary of moneys payable by the insured to the insurer under or in relation to the contract, whether in respect of a premium or otherwise, is a discharge, as between the insured and the insurer, of the liability of the insured to the insurer in respect of those moneys.

(2) Payment to an insurance intermediary by or on behalf of an intending insured of moneys in respect of a contract of insurance to be arranged or effected by the intermediary, whether the payment is in respect of a premium or otherwise, is a discharge, as between the insured and the insurer, of any liability of the insured under or in respect of the contract, to the extent of the amount of the payment.

(3) Payment by an insurer to an insurance intermediary of moneys payable to an insured, whether in respect of a claim, return of premiums or otherwise, under or in relation to a contract of insurance, does not discharge any liability of the insurer to the insured in respect of those moneys.

(4) An agreement, in so far as it purports to alter or restrict the operation of sub-section (1), (2) or (3), is void.

(5) Sub-section (4) does not render void an agreement between an insurance intermediary and an insured in so far as the agreement allows the insurance intermediary to set off against moneys payable to the insured moneys payable by the insured to the insurance intermediary in respect of premiums.

Liability in relation to binders

15. Where a contract of insurance is entered into, or a claim under a contract of insurance is dealt with or settled, by an insurance intermediary who acted under a binder in relation to the contract or claim, the intermediary shall, with respect to the contract or claim, and with respect to all matters relating to the contract or claim, be deemed to be the agent of the insurer and not of the insured for all purposes, including the operation of section 11, and, if the insured in fact relied in good faith on the conduct of the insurance intermediary, shall be so deemed notwithstanding that the intermediary did not act within the scope of his authority under the binder.

Disclosure by persons acting under binders in respect of insurance contracts

16. (1) An insurance intermediary who intends to act under a binder in effecting a contract of insurance on behalf of his principal shall—

(a) subject to paragraph (b), give notice to the intending insured, before he enters into the contract, that, in effecting the contract, he will be acting under an authority given to him by the insurer to effect the contract and that he will be effecting the contract as agent of the insurer and not of the intending insured; or

(b) if it is not practicable for him to comply with paragraph (a), give notice to the insured, as soon as is reasonably practicable after he has

effected the contract, that, in effecting the contract, he acted under an authority given to him by the insurer to effect the contract and that he effected the contract as agent of the insurer and not of the insured.

Penalty:

(a) in the case of a natural person—$1,000; or

(b) in the case of a corporation—$5,000.

(2) A contract made in contravention of sub-section (1) is voidable at the option of the insured, subject to—

(a) the rights of parties acquired without notice and for good or valuable consideration; and

(b) compliance with the principles of common law and of equity with respect to the avoidance of contracts.

Disclosure by persons acting under binders in respect of claims

17. (1) An insurance intermediary who intends to act under a binder in dealing with or settling a claim under a contract of insurance shall not deal with or settle the claim on behalf of his principal unless he has first informed the insured that, in dealing with or settling the claim, he will be acting under an authority given to him by the insurer to deal with or settle the claim and that he will be dealing with or settling the claim as agent of the insurer and not of the insured.

Penalty:

(a) in the case of a natural person—$1,000; or

(b) in the case of a corporation—$5,000.

(2) A settlement of a claim made in contravention of sub-section (1) is voidable at the option of the insured, subject to—

(a) the rights of parties acquired without notice and for good or valuable consideration; and

(b) compliance with the principles of common law and of equity with respect to the avoidance of contracts.

PART III—REGISTRATION OF INSURANCE BROKERS

Interpretation

18. (1) If this Act is extended to an external Territory, a reference in a provision of this Part to the commencement of this Part shall, for the purposes of the application of that provision in that Territory, be construed as a reference to the commencement of the day on which this Act was extended to that Territory or the commencement of this Part, whichever is the later.

(2) If the registration of a person as an insurance broker is suspended or cancelled or expires, sections 26, 27 and 28 continue to apply in relation to him or his estate in respect of matters that occurred before the suspension, cancellation or expiry as if his registration had not been suspended or cancelled or had not expired, as the case may be.

Brokers not to carry on business unless registered

19. (1) A person (whether an individual or a corporation) shall not, after the expiration of 6 months after the commencement of this Part, carry on business as an insurance broker, whether alone or in partnership, in relation to life insurance business or general insurance business—

(a) unless he is registered under this Part in respect of life insurance business or general insurance business, as the case may be; and

(b) if there are liabilities prescribed for the purposes of this paragraph—unless there is in force a contract of insurance with an insurer approved by the relevant Commissioner under which the person is indemnified in respect of the prescribed liabilities arising out of or in the course of his business as an insurance broker.

Penalty:

(a) in the case of a natural person—$5,000 or imprisonment for 2 years, or both; or

(b) in the case of a corporation—$25,000.

(2) A person may be registered in respect of both life insurance business and general insurance business.

Applications for registration

20. (1) A person who desires to be registered under this Part in respect of life insurance business may apply to the Life Insurance Commissioner accordingly and a person who desires to be registered under this Part in respect of general insurance business may apply to the Insurance Commissioner accordingly.

(2) An application under sub-section (1) shall be in accordance with the prescribed form.

(3) A person shall not wilfully and with intent to deceive—

(a) make a false or misleading statement in, or omit material matter from, a prescribed form furnished to a Commissioner; or

(b) furnish to a Commissioner in connection with an application under sub-section (1) information that is false or misleading in a material particular.

Penalty:

(a) in the case of a natural person—$5,000 or imprisonment for 2 years, or both; or

(b) in the case of a corporation—$25,000.

Registration of brokers

21. (1) Subject to sub-section (2), where an application is made to the relevant Commissioner under section 20, the Commissioner shall, if—

(a) a contract of insurance is required under paragraph 19 (1) (b) and he is satisfied that there is in force such a contract in respect of the applicant;

(b) where the applicant is already carrying on business as an insurance broker—the applicant has furnished to the Commissioner audited accounts of that business to the satisfaction of the Commissioner; and

(c) the applicant has paid such fee as is prescribed, register the applicant and give him a certificate of registration.

(2) The relevant Commissioner may refuse to register an applicant if, to the knowledge of the Commissioner, the applicant or a director, employee or agent of the applicant has been convicted of an offence as referred to in sub-section 25 (1).

(3) Registration of a person under this section has effect for a period of one year.

(4) If a registered insurance broker applies to the relevant Commissioner for the cancellation of the registration of the broker under this section and that Commissioner is satisfied that the broker is no longer carrying on business as an insurance broker in relation to life insurance business or general insurance business, as the case may be, that Commissioner may cancel the registration of the broker under this section in respect of the insurance business concerned.

(5) Where a Commissioner registers an applicant under this section, or cancels the registration of an insurance broker under this section, he shall cause notice of the registration or cancellation to be published in the Gazette.

Registers to be kept

22. (1) For the purposes of this Act, a relevant Commissioner shall cause to be kept a register to be known as the Register of Life Insurance Brokers or the Register of General Insurance Brokers, as the case may be.

(2) Subject to this Act and to any regulations, a Register shall be kept in such form and manner as the relevant Commissioner directs.

Inspection of Registers, accounts and contracts

23. A person may, on application made in accordance with the regulations and on payment of the prescribed fee (if any)—

(a) inspect the Register of Life Insurance Brokers or the Register of General Insurance Brokers;

(b) inspect any accounts lodged by registered insurance brokers with a Commissioner;

(c) inspect a contract of insurance referred to in paragraph 19 (1) (b), or a copy of such a contract, that is lodged with a Commissioner; and

(d) make a copy of, or take extracts from, any such Register, accounts, contract or copy of a contract.

Delay in registration or renewal

24. (1) Where—

(a) an application for registration under section 20 is made before the expiration of 6 months after the commencement of this Part to the

relevant Commissioner by a person who was carrying on business as an insurance broker in relation to life insurance business or general insurance business at the commencement of this Part; and

(b) the relevant Commissioner has not refused to register the applicant, the person is not guilty of an offence under section 19 by so carrying on business as an insurance broker in relation to life insurance business or general insurance business, as the case may be, after the expiration of that period of 6 months.

(2) Where—

(a) an application by a registered insurance broker for renewal of his registration under section 20 is made to the relevant Commissioner before the expiration of the period of registration; and

(b) the relevant Commissioner has not refused to renew the registration of the broker,

the broker is not guilty of an offence under section 19 by carrying on business as an insurance broker in relation to life insurance business or general insurance business, as the case may be, after the expiration of the period of the registration.

(3) Sub-section (1) or (2) ceases to apply to a person in relation to life insurance business or general insurance business if the relevant Commissioner has, by notice in writing to the person, required the person to comply, after such period as is specified in the notice, in relation to life insurance business or general insurance business, as the case may be, with such of the provisions of this Act that are applicable to registered insurance brokers as are so specified and the person has failed to comply with any of those provisions as required by the notice.

(4) The relevant Commissioner may, by writing signed by him, exempt a person to whom sub-section (1) or (2) applies from the requirement to comply, in relation to life insurance business or general insurance business, as the case may be, with such provisions of this Act (not being provisions with which the person is required to comply in relation to the insurance business concerned because of a notice under sub-section (3)) as are specified in the instrument of exemption.

Suspension or cancellation of registration

25. (1) The relevant Commissioner may suspend for such period as the Commissioner considers to be appropriate, or cancel, the registration of a person under this Part if the person, or a director, employee or agent of the person, has, whether before or after the registration took place and whether before or after the commencement of this Part, been convicted of an offence—

(a) against or arising under this Act or any law, whether of the Commonwealth, of a State or Territory, or of some other country, in respect of conduct relating to insurance; or

(b) in respect of dishonest conduct,

being an offence that, in the opinion of the Commissioner, renders the person unfit to carry on business as an insurance broker.

(2) While the registration of a person under this Part is suspended, the person shall be deemed not to be registered under this Part.

(3) Notwithstanding sub-section (2), a person whose registration is suspended may carry on such of his business as an insurance broker as the relevant Commissioner, by writing signed by him, specifies, for such time and subject to such conditions (if any) as the relevant Commissioner, by writing signed by him, specifies.

(4) A person shall not carry on business as an insurance broker after the time specified under sub-section (3) in relation to him or fail to comply with a condition under that sub-section that is applicable to him.

Penalty:

(a) in the case of a natural person—$5,000 or imprisonment for 2 years, or both; or

(b) in the case of a corporation—$25,000.

(5) Where the relevant Commissioner cancels the registration of a person, he may, by writing signed by him, specify a period during which the person is to be disqualified from registration and, where a period is so specified in relation to a person, the person is disqualified from registration during that period.

(6) A person shall not be registered under this Part while his registration is suspended or while he is disqualified from registration.

(7) Where a Commissioner suspends or cancels under this section the registration of a person under this Part, he shall cause notice of the suspension or cancellation to be published in the Gazette.

Insurance broking accounts

26. (1) A registered insurance broker shall pay into an account maintained by him with a bank solely for the purposes of this section all moneys received by him—

(a) from or on behalf of an insured or intending insured for or on account of an insurer in connection with a contract of insurance arranged or effected or to be arranged or effected by the broker; or

(b) from or on behalf of an insurer for or on account of an insured or intending insured.

(2) An account maintained under sub-section (1) shall be called an “Insurance Broking Account”, with or without other words of description.

(3) A registered insurance broker shall not, except with the consent in writing of the relevant Commissioner, withdraw moneys from an account maintained by him under sub-section (1) except—

(a) for payment to or for a person entitled to receive payment of the moneys, including himself in so far as he is entitled to receive payment for himself;

(b) for payment to or for an insurer in respect of amounts due to the insurer under or in relation to a contract of insurance arranged or

effected by the broker (including a contract of insurance that has been cancelled);

(c) for investment as provided by sub-section (4); or

(d) for repayment of moneys that were paid into the account in error.

(4) A registered insurance broker may invest in prescribed securities moneys included in an account maintained by him under sub-section (1) that were received by him from an insured or intending insured in connection with a contract of insurance (not being a contract of life insurance) arranged or effected or to be arranged or effected by the broker.

(5) A registered insurance broker shall pay moneys received from the realization of an investment made under sub-section (4) into an account maintained by him under sub-section (1).

(6) If, upon the realization of an investment made under sub-section (4), an amount is received in respect of the realization that is less than the amount invested, the registered insurance broker shall pay into the account from which the moneys were withdrawn for investment an amount equal to the difference between the amount invested and the amount received.

(7) If, upon the realization of an investment under sub-section (4), an amount is received in respect of the realization that is greater than the amount invested, the registered insurance broker may retain for his own benefit the amount by which the amount received exceeds the amount invested and need not pay it into, or retain it in, an account maintained under sub-section (1).

(8) Interest, dividends or other income received by a registered insurance broker from an account maintained under sub-section (1) or from an investment made under sub-section (4) may be retained by the broker for his own benefit and need not be paid into, or retained in, an account maintained under sub-section (1).

(9) Moneys received by a registered insurance broker as mentioned in sub-section (1) or (5), both before and after those moneys are paid into an account maintained under sub-section (1), moneys paid into such an account under sub-section (6) and securities in which moneys are invested under sub-section (4) are not capable of being attached or otherwise taken in execution or of being made subject to a set-off, charge or charging order or to any process of a like nature.

(10) Nothing in sub-section (9) prevents moneys or securities being attached, taken in execution or made the subject of a set-off, charge, charging order or like process at the suit of a person for whom or on whose account moneys have been paid into the relevant account maintained under sub-section (1) and to whom or on whose account payment in respect of those moneys has not been made.

(11) This section does not make a banker subject to any liability by reason only of a failure of a registered insurance broker to comply with any of the provisions of this section.

Penalty:

(a) in the case of a natural person—$500; or

(b) in the case of a corporation—$2,500.

Duties of broker in relation to premiums, &c.

27. (1) Where—

(a) money is received by a registered insurance broker from, or on behalf of, an insured or intending insured, or from another registered insurance broker on behalf of an insured or intending insured, as a premium or an instalment of a premium in connection with a contract of insurance or a proposed contract of insurance;

(b) the risk, or a part of the risk, to which the contract or proposed contract relates is accepted by or on behalf of an insurer; and

(c) the broker who so received the money is informed of, or otherwise ascertains, the amount of the premium or instalment to be paid,

the broker who so received the money shall pay, in accordance with sub-section (2), to the insurer by whom or on whose behalf the risk, or a part of the risk, to which the contract or proposed contract relates is accepted an amount equal to so much of the money as does not exceed the amount of the premium or instalment to be paid.

(2) An amount payable by a registered insurance broker to an insurer under sub-section (1) shall be paid—

(a) subject to paragraph (b), within the period (in this section referred to as the “relevant period”) of 90 days after the day on which the cover provided by the insurer under the contract commences to have effect or the first day of the period to which the instalment relates, as the case may be; or

(b) if it is not practicable for him to pay the amount within the relevant period—as soon after the expiration of that period as it is reasonably practicable for him to do so.

(3) Where the amount of the premium, or of an instalment of the premium, payable in respect of a contract of insurance has not been received by a registered insurance broker at the expiration of the relevant period, the broker, unless he receives the amount before notifying the insurer in accordance with this sub-section, shall notify the insurer in writing, within 7 days after the day on which the relevant period expired, that he has not received the amount.

(4) Where—

(a) money is received by a registered insurance broker from, or on behalf of, an insured or intending insured, or from another registered insurance broker on behalf of an insured or intending insured, as a

premium or an instalment of a premium in connection with a contract of insurance or a proposed contract of insurance;

(b) the risk, or a part of the risk, to which the contract or proposed contract relates is accepted by or on behalf of an insurer; and

(c) the broker who so received the money has not been informed of, and has not otherwise ascertained, the amount of the premium or instalment to be paid,

the broker who so received the money shall pay, to the insurer by whom or on whose behalf the risk, or a part of the risk, to which the contract or proposed contract relates is accepted, within the relevant period, or if it is not practicable for him to make the payment within the relevant period, as soon after the expiration of that period as it is reasonably practicable for him to do so—

(d) in respect of a new contract of insurance, an amount not less than—

(i) the amount of the money so received; or

(ii) 75% of the amount fairly estimated by him to be the premium or instalment, as the case may be, that is to be paid,

whichever is the smaller amount; or

(e) in respect of a renewal of a contract of insurance, an amount not less than—

(i) the amount of the money so received; or

(ii) 75% of the previous year’s premium for the risk or of the last instalment of that year’s premium, as the case may be,

whichever is the smaller amount.

(5) Where—

(a) the risk, or a part of the risk, to which a contract of insurance or a proposed contract of insurance relates is accepted by or on behalf of an insurer;

(b) the contract of insurance or proposed contract of insurance has been, or is being, arranged or effected by a registered insurance broker, either directly or through another registered insurance broker; and

(c) the first-mentioned broker has not been informed of, and has not otherwise ascertained, the amount of a premium or of an instalment of a premium to be paid in connection with the contract or proposed contract,

that broker shall, unless he is informed of, or otherwise ascertains, the amount of the premium or instalment to be paid before notifying the insurer in accordance with this sub-section, notify the insurer in writing, within 10 days after the day on which the risk, or that part of the risk, was so accepted, that the risk, or that part of the risk, has been so accepted but that he does not know the amount of the premium or instalment to be paid.

(6) Nothing in the foregoing provisions of this section prevents—

(a) an insurer from making a contract or arrangement with an insurance broker providing for the broker to pay an amount to the insurer before

the time by which the broker is required by the provision concerned to pay that amount to the insurer;

(b) an insurer from authorizing an insurance broker in writing to pay on behalf of the insurer, out of the money received by the broker as a premium or instalment of a premium in respect of a contract of insurance arranged with the insurer, any charges required by law to be paid by the insurer in respect of the contract; or

(c) an insurance broker from exercising any legal right available to the broker to deduct from any moneys payable by the broker to the insurer any remuneration payable by the insurer to the broker in relation to a contract of insurance.

(7) If the risk, or a part of the risk, to which a contract or proposed contract referred to in sub-section (1) or (4) relates is accepted on behalf of an insurer by an insurance intermediary other than the registered insurance broker who received the moneys from or on behalf of the insured or intending insured, then, for the purposes only of the application of the sub-section concerned to the broker, payment of the premium, or part of the premium, as the case may be, by the broker to the intermediary shall be taken to constitute payment of the premium or part of the premium by the broker to the insurer.

(8) Where a registered insurance broker is required to notify an insurer in accordance with sub-section (3) or (5) and an insurance intermediary other than the broker has accepted the risk, or a part of the risk, to which the contract or proposed contract relates on behalf of the insurer, then, for the purposes only of the application of the sub-section concerned to the broker, notification by the broker to the intermediary shall be taken to constitute notification by the broker to the insurer.

(9) If, at the expiration of 30 days after the day on which a registered insurance broker receives money from, or on behalf of, an insured or intending insured in connection with a contract of insurance or proposed contract of insurance, the risk, or a part of the risk, to which the contract or proposed contract relates has not been accepted, the broker shall, within 7 days after the expiration of that period, inform the insured or intending insured, in writing in accordance with such form (if any) as is prescribed, of the extent to which the risk has not been accepted.

(10) Where a registered insurance broker receives money from, or on behalf of, an insurer for payment to, or on behalf of, an insured, the broker shall pay an amount equal to the money to, or on behalf of, the insured—

(a) subject to paragraph (b), within 7 days after the day on which the broker received the money; or

(b) if it is not practicable for the broker to pay the amount within that period—as soon after the expiration of that period as it is reasonably practicable for the broker to pay the amount.

(11) Nothing in sub-section (10) prevents—

(a) an insured from making a contract or arrangement with a registered insurance broker providing for the broker to pay an amount referred to in that sub-section to or on behalf of the insured before the time by which the broker is required by that sub-section to pay that amount to or on behalf of the insured; or

(b) an insurance broker from exercising any legal right available to the broker to deduct from an amount payable by the broker to the insured any money payable by the insured to the broker in connection with a contract of insurance.

(12) An act done in contravention of sub-section (1), (2), (3), (4), (5), (9) or (10) constitutes an offence against the sub-section concerned notwithstanding that it was done with the consent of the insurer or of the insured or intending insured, as the case may be.

Penalty:

(a) in the case of a natural person—$1,000; or

(b) in the case of a corporation—$5,000.

Distribution of insurance broking account moneys on insolvency, &c.

28. (1) This section applies to and in relation to a registered insurance broker—

(a) who has become an insolvent under administration; or

(b) that is an insolvent company under administration,

or to and in relation to the estate of a deceased insurance broker that is being administered under Part XI of the Bankruptcy Act 1966 or under the law of an external Territory providing for the administration of insolvent estates of deceased persons.

(2) This section applies notwithstanding anything to the contrary contained in the Bankruptcy Act 1966 or in a law (including a law of a State or Territory) that relates to companies.

(3) Moneys in an account maintained with a bank by the broker under sub-section 26 (1), and securities in which moneys have been invested under sub-section 26 (4), shall be treated as though they were subject to a trust in favour of the persons to whom payment from that account may be made under paragraph 26 (3) (a) or (b).

(4) Moneys from such an account shall be paid as follows:

(a) first, moneys that have been paid into the account in error shall be withdrawn from the account;

(b) secondly, insureds shall be paid the amounts they are entitled to receive from the moneys in the account in respect of claims made pursuant to contracts of insurance;

(c) thirdly, insureds shall be paid the amounts (other than amounts to which paragraph (b) applies) they are entitled to receive from the moneys in the account;

(d) fourthly, after all payments have been made under paragraphs (b) and (c), insurers shall be paid the amounts they are entitled to receive from the moneys in the account.

(5) If the moneys in the account that are available to make payments required under a particular paragraph (other than paragraph (a)) of sub-section (4) are not sufficient to meet those payments in full, the payments required under the paragraph concerned shall be made proportionally.

(6) Any moneys remaining after all payments have been made under sub-section (4) shall be taken to be moneys payable to the broker.

(7) Nothing in the preceding provisions of this section prevents moneys in the account being invested as mentioned in paragraph 26 (3) (c) by a person, other than the broker, who has lawful custody or control of the moneys.

Brokers not bound by certain agreements, &c.

29. (1) A life insurance broker is not bound by an agreement, arrangement or understanding with an insurer in so far as the agreement, arrangement or understanding requires the broker to arrange or effect some or all contracts of life insurance, or some or all contracts of life insurance of a particular class, with that insurer only and with no other insurer.

(2) A general insurance broker is not bound by an agreement, arrangement or understanding with an insurer in so far as the agreement, arrangement or understanding requires the general insurance broker to arrange or effect some or all contracts of insurance (other than contracts of life insurance), or some or all contracts of insurance (other than contracts of life insurance) of a particular class, with that insurer only and with no other insurer.

(3) Neither sub-section (1) nor (2) applies to so much of an agreement, arrangement or understanding as relates to contracts of insurance effected under a binder.

(4) The operation of sub-sections (1) and (2) extends to agreements, arrangements and understandings made or entered into before the commencement of this section or, in relation to an external Territory to which this Act extends, before this section commences to have effect in that Territory.

(5) A person shall not—

(a) make, or offer to make, an agreement or arrangement, or enter into, or offer to enter into, an understanding, that, under the preceding provisions of this section, would not be binding on him; or

(b) act upon or under such an agreement, arrangement or understanding.

Penalty:

(a) in the case of a natural person—$2,000 or imprisonment for 1 year, or both; or

(b) in the case of a corporation—$10,000.

Misdescription of business

30. (1) A life insurance broker (not being also a general insurance broker) shall not describe himself or his business in a way that would be likely to lead a person into believing that he is a general insurance broker as well as a life insurance broker.

(2) A general insurance broker (not being also a life insurance broker) shall not describe himself or his business in a way that would be likely to lead a person into believing that he is a life insurance broker as well as a general insurance broker.

(3) A registered insurance broker shall not, after the commencement of this Part, carry on business under a name that would be likely to mislead a person into believing that the broker is an insurer.

Penalty:

(a) in the case of a natural person—$1,000 or imprisonment for 6 months, or both; or

(b) in the case of a corporation—$5,000.

Brokers to disclose agency

31. (1) A life insurance broker (not being also a general insurance broker) shall not, as agent of an insurer in respect of general insurance business, do any act, for or in relation to an intending insured, in respect of insurance other than life insurance unless he has first informed the intending insured that, in doing that act, he would be acting as agent of the insurer and not of the intending insured.

(2) A general insurance broker (not being also a life insurance broker) shall not, as agent of an insurer in respect of life insurance business, do any act, for or in relation to an intending insured, in respect of life insurance unless he has first informed the intending insured that, in doing that act, he would be acting as agent of the insurer and not of the intending insured.

Penalty:

(a) in the case of a natural person—$1,000; or

(b) in the case of a corporation—$5,000.

PART IV—MISCELLANEOUS

Brokers to give certain information

32. (1) Where an insurance broker arranges or effects a contract of insurance—

(a) he shall, as soon as it is reasonably practicable for him to do so, give to the insured particulars in writing of any fees or other amounts charged by the insurance broker in respect of his services in connection with the contract; and

(b) if requested to do so by the insured, he shall, as soon as it is reasonably practicable for him to do so, give to the insured particulars of any

commission or other remuneration or benefit received by him from the insurer in respect of his services in arranging or effecting the contract.

(2) If an insurance broker who arranges or effects a contract of insurance gives to the insured particulars of any premiums payable, or charges imposed by law, in respect of the contract, he shall cause the particulars of fees or other amounts given by him to the insured under sub-section (1) to be shown separately from particulars of those premiums or charges.

(3) Paragraph (1) (b) does not have effect where the contract of insurance was effected under a binder and the broker has complied with the requirements of section 16.

(4) Where the contract of insurance is one of a number of contracts of insurance arranged or effected by the broker as a group of contracts of insurance, it is sufficient compliance with sub-section (1) if the broker gives the required particulars in relation to the group of contracts.

(5) An insurance broker shall, as soon as is reasonably practicable after he has arranged or effected a contract of insurance (including a contract of insurance effected by him under a binder), inform the insured of the name of the insurer and of a place of business of the insurer.

(6) It is a sufficient compliance with so much of sub-section (5) as requires the insurance broker to inform the insured of the name of the insurer if, in relation to a contract of insurance with Lloyd’s underwriters, or with Lloyd’s underwriters and others, the insurance broker informs the insured that the contract was arranged or effected with “Lloyd’s”, or with “Lloyd’s” and other specified insurers, as the case may be.

(7) In sub-section (6), “Lloyd’s underwriters” has the same meaning as it has in the Insurance Act 1973.

Penalty:

(a) in the case of a natural person—$1,000; or

(b) in the case of a corporation—$5,000.

Insurance intermediaries to give certain information

33. (1) This section applies to an insurance intermediary other than an insurance broker.

(2) Where an insurance intermediary has an authority from 2 or more insurers to arrange or effect contracts of insurance, the insurance intermediary shall, before he arranges or effects a contract of insurance, inform the intending insured of the name of the proposed insurer and of a place of business of the proposed insurer.

(3) An insurance intermediary (other than an intermediary referred to in sub-section (2)) who proposes to arrange or effect a contract of insurance shall—

(a) subject to paragraph (b), inform the intending insured, before he arranges or effects the contract, of the name of the proposed insurer and of a place of business of the proposed insurer; or

(b) if it is not practicable for him to comply with paragraph (a), inform the insured, as soon as reasonably practicable after he has arranged or effected the contract, of the name of the insurer and of a place of business of the insurer.

(4) It is a sufficient compliance with so much of sub-section (2) or (3) as requires the insurance intermediary to inform the intending insured or the insured of the name of the proposed insurer or of the insurer if, in relation to a proposed contract of insurance or a contract of insurance with Lloyd’s underwriters, or with Lloyd’s underwriters and others, the insurance intermediary informs the intending insured or the insured that the contract is to be, or has been, as the case may be, arranged or effected with “Lloyd’s”, or with “Lloyd’s” and other specified insurers, as the case may be.

(5) In sub-section (4), “Lloyd’s underwriters” has the same meaning as it has in the Insurance Act 1973.

(6) If a proposed contract of insurance is to be arranged or effected, or a contract of insurance has been arranged or effected, by an insurance intermediary through another insurance intermediary (including another insurance intermediary who is an insurance broker), this section applies as if the proposed contract were to be arranged or effected, or the contract of insurance had been arranged or effected, as the case may be, by the first-mentioned insurance intermediary otherwise than through the other insurance intermediary.

Penalty:

(a) in the case of a natural person—$1,000 or imprisonment for 6 months, or both; or

(b) in the case of a corporation—$5,000.

Insurance intermediary to notify insured if insurer is an unauthorized foreign insurer

34. (1) Where the proposed insurer, or one of the proposed insurers, under a proposed contract of general insurance that is to be arranged or effected by an insurance intermediary is an unauthorized foreign insurer, the insurance intermediary shall—

(a) subject to paragraph (b), give notice to the intending insured before he arranges or effects the contract informing the intending insured that an unauthorized foreign insurer is proposed to be the insurer, or one of the insurers, under the contract; or

(b) if it is not practicable for him to comply with paragraph (a), give notice to the insured, as soon as is reasonably practicable after he has

arranged or effected the contract, informing the insured that an unauthorized foreign insurer is the insurer, or one of the insurers, under the contract.

(2) A notice under sub-section (1) shall be in writing in accordance with such form (if any) as is prescribed.

(3) In this section, “unauthorized foreign insurer” means an insurer who—

(a) does not have an authority under the Insurance Act 1973 to carry on insurance business;

(b) is not a person who, because of section 5 of that Act, is not required to have such an authority; and

(c) carries on insurance business outside Australia and the external Territories to which the Insurance Act 1973 extends.

(4) If a proposed contract of insurance is to be arranged or effected, or a contract of insurance has been arranged or effected, by an insurance intermediary through another insurance intermediary (including another insurance intermediary who is an insurance broker), this section applies as if the proposed contract were to be arranged or effected, or the contract of insurance had been arranged or effected, as the case may be, by the first-mentioned insurance intermediary otherwise than through the other insurance intermediary.

Penalty:

(a) in the case of a natural person—$1,000 or imprisonment for 6 months, or both; or

(b) in the case of a corporation—$5,000.

Restrictions as to receipt and payment of remuneration

35. (1) An insurance broker shall not receive from an insurer or from a person on behalf of an insurer a gift, gratuity, benefit or other reward (however described) except as remuneration for services rendered to the insurer—

(a) in arranging or effecting a particular contract of insurance;

(b) in connection with dealing with or settling a claim under a particular contract of insurance; or

(c) otherwise than in connection with the broker arranging or effecting contracts of insurance or dealing with or settling claims under contracts of insurance.

(2) An insurer shall not pay to an insurance broker, and an insurance broker shall not receive from an insurer, in respect of the arranging or effecting of contracts of insurance by that insurance broker with the insurer, remuneration at a rate or on a basis that has been varied having regard to any one or more of the following:

(a) the number of contracts so arranged or effected;

(b) the total amount of premiums paid or payable under such contracts;

(c) the total amount of sums insured under such contracts.

(3) Neither sub-section (1) nor (2) has effect in relation to contracts of insurance effected under a binder or in relation to claims dealt with or settled under a binder, as the case may be, if the broker has complied with the requirements of section 16 or 17, as the case may be.

Penalty:

(a) in the case of a natural person—$2,000 or imprisonment for 1 year, or both; or

(b) in the case of a corporation—$10,000.

Insurance claims moneys

36. Moneys paid or payable to an insurance broker under a contract of insurance indemnifying the broker in respect of any liability to an insurer, insured or intending insured are not—

(a) in the event of the broker becoming an insolvent under administration or an insolvent company under administration; or

(b) in the event of the estate of the broker being administered under Part XI of the Bankruptcy Act 1966 or under the law of an external Territory providing for the administration of insolvent estates of deceased persons,

available for division among the creditors of the broker generally but shall be paid to the person whose claim against the broker was subject to the indemnity under the contract of insurance.

Certain moneys to be trust moneys

37. (1) Moneys paid to a person (not being a registered insurance broker) as agent of an insurer, being moneys paid in relation to a contract of insurance or proposed contract of insurance, are subject to a trust in favour of the insurer and are not capable of being attached or otherwise taken in execution or of being made subject to a set-off, charge or charging order or to any process of a like nature.

(2) Unless the moneys are paid by cheque payable to the insurer, the person shall, as soon as is reasonably practicable—

(a) give a receipt for the moneys to the person by whom they were paid; and

(b) state on the receipt the name and a place of business of the insurer.

(3) The person shall, as soon as is reasonably practicable, pay the moneys to the insurer.

(4) An act done in contravention of sub-section (2) or (3) constitutes an offence against that sub-section notwithstanding that it was done with the consent of the insurer.

Penalty:

(a) in the case of a natural person—$1,000; or

(b) in the case of a corporation—$5,000.

Broker to notify insured of association with insurer

38. (1) Where—

(a) an insurance broker, or a director, employee or agent of an insurance broker, proposes to arrange or effect a contract of insurance; and

(b) a proposed insurer under the proposed contract is associated with the insurance broker,

the insurance broker shall—

(c) subject to paragraph (d), inform the intending insured, before the proposed contract is arranged or effected, of the existence and nature of the association; or

(d) if it is not practicable for him to comply with paragraph (c) in relation to the proposed contract, inform the insured, as soon as is reasonably practicable after the contract has been arranged or effected, of the existence and nature of the association.

(2) An insurance broker shall be taken to be associated with an insurer for the purposes of this section if—

(a) the insurance broker, or a director, employee or agent of the insurance broker or of a corporation that is related to the insurance broker, is a director or employee of the insurer or of a corporation that is related to the insurer;

(b) the insurer, or a director, employee or agent of the insurer or of a corporation that is related to the insurer, is a director or employee of the insurance broker or of a corporation that is related to the insurance broker;

(c) the insurance broker or a corporation that is related to the insurance broker, or a director of the insurance broker or of such a corporation, has a beneficial interest in any share or stock in the capital of the insurer or of a corporation that is related to the insurer; or

(d) the insurer or a corporation that is related to the insurer, or a director of the insurer or of such a corporation, has a beneficial interest in any share or stock in the capital of the insurance broker or of a corporation that is related to the insurance broker.

(3) The question whether a corporation is related to another corporation for the purposes of this section shall be determined in the same way as the question whether a corporation is related to another corporation is determined for the purposes of the Companies Act 1981.

(4) This section has effect notwithstanding anything in the Insurance Act 1973 or the Life Insurance Act 1945.

(5) This section has effect only after the expiration of 6 months after the commencement of Part III or, in an external Territory to which this Act extends, only after the expiration of 6 months after the commencement of the

day on which this Act commences to extend to that Territory or the commencement of Part III, whichever is the later.

Penalty:

(a) in the case of a natural person—$2,000 or imprisonment for 1 year, or both; or

(b) in the case of a corporation—$10,000.

Misdescription by insurance intermediaries

39. (1) An insurance intermediary (not being a registered insurance broker) shall not describe himself or his business in a way that would be likely to lead a person into believing that he is an insurance broker.

(2) An insurance intermediary shall not describe himself or his business in a way that would be likely to mislead a person into believing that he is an insurer.

(3) This section has effect only after the expiration of 6 months after the commencement of Part III or, in an external Territory to which this Act extends, only after the expiration of 6 months after the commencement of the day on which this Act commences to extend to that Territory or the commencement of Part III, whichever is the later.

Penalty:

(a) in the case of a natural person—$1,000 or imprisonment for 6 months, or both; or

(b) in the case of a corporation—$5,000.

Liability of directors and employees

40. A director of a company, or an employee or agent (whether of a corporation or of an individual), who knowingly permits or authorizes a contravention of this Act by the company, corporation or individual, as the case may be, is guilty of an offence against this Act and is punishable by the penalty provided in respect of that contravention.

Hearing before making adverse decision

41. A Commissioner shall not make a decision under this Act that would be adverse to a person without giving to the person an opportunity of being heard and of presenting evidence.

Application for review

42. (1) An application may be made to the Administrative Appeals Tribunal for review of a decision of a Commissioner under this Act other than a decision to delegate a power under section 47.

(2) In this section, “decision” has the same meaning as in the Administrative Appeals Tribunal Act 1975.

Statement to accompany notice of decisions

43. (1) Where a Commissioner makes a decision of a kind referred to in section 42 and gives to a person or persons whose interests are affected by the

decision notice in writing of the making of the decision, that notice shall include a statement to the effect that, subject to the Administrative Appeals Tribunal Act 1975, application may be made to the Administrative Appeals Tribunal for review of the decision to which the notice relates by or on behalf of a person or persons whose interests are affected by the decision.

(2) Any failure to comply with the requirements of sub-section (1) in relation to a decision does not affect the validity of the decision.

Accounts and audit

44. The regulations may make provision as to the inspection or audit of the books, accounts and records kept by registered insurance brokers.

Certain particulars to be included in reports

45. A relevant Commissioner shall, in each report furnished to the Treasurer after the commencement of Part III under section 11 of the Life Insurance Act 1945 or section 125 of the Insurance Act 1973, as the case may be, make reference to the working of this Act so far as it concerns him and shall include in the report particulars as to—

(a) the number of persons registered by him for the time being as life insurance brokers or general insurance brokers, respectively;

(b) any suspensions or cancellations effected by him under section 25 during the period to which the report relates;

(c) any prosecutions for offences against this Act during that period;

(d) any insolvency of an insurance intermediary that came to his notice during that period; and

(e) such other matters (if any) as are prescribed.

Prosecutions

46. (1) An offence against this Act that is committed by a natural person and the maximum punishment for which is a pecuniary penalty exceeding $2,000 or a period of imprisonment exceeding one year, or both, is an indictable offence.

(2) An offence against this Act that is committed by a corporation and the maximum punishment for which is a pecuniary penalty exceeding $5,000 is an indictable offence.

(3) Notwithstanding that an offence against this Act is an indictable offence, a court of summary jurisdiction may hear and determine proceedings in respect of such an offence if the court is satisfied that it is proper to do so and the defendant and the prosecutor consent.

(4) Where, in accordance with sub-section (3), a court of summary jurisdiction convicts a person of an offence against this Act, the penalty that the court may impose is—

(a) in the case of a natural person—a fine not exceeding $1,000 or imprisonment for a period not exceeding 6 months, or both; or

(b) in the case of a corporation—a fine not exceeding $10,000.

(5) An offence against this Act, other than an offence that by virtue of sub-section (1) or (2) is an indictable offence, may be prosecuted summarily.

Delegation

47. (1) A Commissioner may, either generally or as otherwise provided by the instrument of delegation, by writing signed by him, delegate to a person all or any of his powers under this Act or the regulations, other than this power of delegation.

(2) A power so delegated by a Commissioner, when exercised by the delegate, shall, for the purposes of this Act or the regulations, as the case requires, be deemed to have been exercised by that Commissioner.

(3) A delegation under this section does not prevent the exercise of a power by a Commissioner.

Regulations

48. (1) The Governor-General may make regulations, not inconsistent with this Act, prescribing matters—

(a) required or permitted by this Act to be prescribed; or

(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act,

and, in particular, prescribing—

(c) penalties, not exceeding a fine of $500, in respect of offences against the regulations; and

(d) fees payable in respect of any matter under this Act or the regulations.

(2) The regulations may make different provisions with respect to persons carrying on business in relation to life insurance business and persons carrying on business in relation to general insurance business.