Commonwealth Numbered Acts

Insurance (Agents and Brokers) Act 1984 No. 75 of 1984 - SECT 16

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.