INSURANCE ACT 1973 - SECT 24 Disqualified persons must not act for general insurers or authorised NOHCs

INSURANCE ACT 1973 - SECT 24

  (1)   A person commits an offence if:

  (a)   the person is a disqualified person; and

  (b)   the person is or acts as one of the following:

  (i)   a director or senior manager of a general insurer (other than a foreign general insurer);

  (ii)   a senior manager, or agent in Australia for the purpose of section   118, of a foreign general insurer;

  (iii)   a director or senior manager of an authorised NOHC;

  (iv)   a director or senior manager of a corporate agent; and

  (c)   for a person who is a disqualified person only because he or she was disqualified under section   25A--the person is disqualified from being or acting as that director, senior manager or agent in Australia (as the case requires).

Penalty:   Imprisonment for 2 years.

  (2)   A person commits an offence if:

  (a)   the person is a disqualified person; and

  (b)   the person is or acts as one of the following:

  (i)   a director or senior manager of a general insurer (other than a foreign general insurer);

  (ii)   a senior manager, or agent in Australia for the purpose of section   118, of a foreign general insurer;

  (iii)   a director or senior manager of an authorised NOHC;

  (iv)   a director or senior manager of a corporate agent; and

  (c)   for a person who is a disqualified person only because he or she was disqualified under section   25A--the person is disqualified from being or acting as that director, senior manager or agent in Australia (as the case requires).

Penalty:   60 penalty units.

  (3)   Subsection   (2) is an offence of strict liability.

Note:   For strict liability , see section   6.1 of the Criminal Code .

  (4)   A body corporate commits an offence if:

  (a)   a person is a disqualified person; and

  (b)   the person is or acts as one of the following:

  (i)   if the body corporate is a general insurer (other than a foreign general insurer)--a director or senior manager of the insurer;

  (ii)   if the body corporate is a foreign general insurer--a senior manager, or agent in Australia for the purpose of section   118, of the insurer;

  (iii)   if the body corporate is an authorised NOHC--a director or senior manager of the NOHC;

  (iv)   if the body corporate is a corporate agent--a director or senior manager of the corporate agent; and

  (c)   for a person who is a disqualified person only because he or she was disqualified under section   25A--the person is disqualified from being or acting as that director, senior manager or agent in Australia (as the case requires); and

  (d)   in any case--the body corporate allows the person to be or act as a director, senior manager or agent in Australia (as the case requires).

Penalty:   250 penalty units.

  (5)   A body corporate commits an offence if:

  (a)   a person is a disqualified person; and

  (b)   the person is or acts as one of the following:

  (i)   if the body corporate is a general insurer (other than a foreign general insurer)--a director or senior manager of the insurer;

  (ii)   if the body corporate is a foreign general insurer--a senior manager, or agent in Australia for the purpose of section   118, of the insurer;

  (iii)   if the body corporate is an authorised NOHC--a director or senior manager of the NOHC;

  (iv)   if the body corporate is a corporate agent--a director or senior manager of the corporate agent; and

  (c)   for a person who is a disqualified person only because he or she was disqualified under section   25A--the person is disqualified from being or acting as that director, senior manager or agent in Australia (as the case requires); and

  (d)   in any case--the body corporate allows the person to be or act as a director, senior manager or agent in Australia (as the case requires).

Penalty:   60 penalty units.

  (6)   Subsection   (5) is an offence of strict liability.

Note:   For strict liability , see section   6.1 of the Criminal Code .

  (8)   A failure to comply with this section does not affect the validity of an appointment or transaction.

Note 1:   For strict liability , see section   6.1 of the Criminal Code .

Note 2:   Chapter   2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 3:   If a body corporate is convicted of an offence against this section, subsection   4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty above.