Commonwealth Numbered Acts

INSURANCE LAWS AMENDMENT ACT 1994 No. 48 of 1994 - SECT 29

29. Section 37 of the Principal Act is amended:

   (a)  by inserting after subsection (1) the following subsection:

"(1A) If money referred to in subsection (1) is paid to a person (the
'sub-agent') who is the agent of an insurance agent, the money is taken to
have been paid to the insurance agent at the time when it is received by the
sub-agent, whether or not the sub-agent acted within the scope of authority
granted by the agent.";

   (b)  by omitting subsection (3) and substituting the following subsections:



"(2A) Subject to subsections (2C) and (2D), if money referred to in subsection
(1) is paid to the person as a premium under a contract of insurance or a
proposed contract of insurance, the person must pay the money to the insurer
not more than 37 days after the day on which the money is received.



"(2B) Subject to subsections (2C) and (2D), if money referred to in subsection
(1) is paid as an instalment of a premium under a contract of insurance or a
proposed contract of insurance, the person must pay the money to the insurer
not more than 37 days after the day on which the money is received.



"(2C) If, at the time when money referred to in subsection (1) is received on
behalf of an insurer in respect of insurance business, the person is, under
section 37A, exempt from the requirements of subsections (2A) and (2B) so far
as that insurer and that insurance business are concerned, that money need not
be paid to the insurer within the time limits specified in those subsections
but must be paid to the insurer as soon as is reasonably practicable.



"(2D) If the person ceases to be exempt from the requirement of subsections
(2A) and (2B) so far as a particular class of insurer and particular insurance
business are concerned:

   (a)  any money received by the person on behalf of that insurer in respect
        of that insurance business before the day on which the person ceased
        to be so exempt must be paid to the insurer within 30 days after that
        day; and

   (b)  any money applied in settlement of a claim against the insurer before
        the day on which the person ceased to be so exempt is to be treated,
        for the purposes of paragraph (a), to have been paid to the insurer
        when it was so applied.



"(3) If:

   (a)  money referred to in subsection (2A) or (2B) is paid to the person;
        and

   (b)  the money is paid by cheque (other than a cheque payable to the
        insurer); the money is taken to have been paid to the person when the
        cheque was received by the person.";

   (c)  by omitting from subsection (3A) "subsection (3)" and substituting
        "subsection (2A), (2B), (2C) or (2D)";

   (d)  by omitting from subsection (3B) "subsection (3)" and substituting
        "subsection (2A), (2B), (2C) or (2D)";

   (e)  by omitting from subsection (4) "or (3)" and substituting ", (2A),
        (2B), (2C) or (2D)".