Commonwealth Numbered Acts

Insurance (Agents and Brokers) Act 1984 No. 75 of 1984 - SECT 17

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.