Commonwealth Numbered Acts

Insurance (Agents and Brokers) Act 1984 No. 75 of 1984 - SECT 10

PART II-GENERAL



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.