Commonwealth Numbered Acts

Insurance (Agents and Brokers) Act 1984 No. 75 of 1984 - SECT 11

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.