MOTOR ACCIDENT INSURANCE ACT 1994 - SECT 113
Termination of s 96 inducement
MOTOR ACCIDENT INSURANCE ACT 1994 - SECT 113
Termination of s 96 inducement
113 Termination of s 96 inducement
(1) This section applies to an arrangement entered into before 1 October 2010
between a licensed insurer, or a person acting for a licensed insurer, and
another entity (the
"entity" ) if under the arrangement—
(a) a prohibited inducement is to be
given to the entity on or after 1 October 2010 for directing CTP insurance
business to the licensed insurer before, on or after 1 October 2010; or
(b) a
prohibited inducement has been given to the entity before 1 October 2010 for
directing CTP insurance business to the licensed insurer on or after 1 October
2010.
(2) The arrangement is terminated, and is void and unenforceable, to
the extent it makes provision for—
(a) the licensed insurer, or person
acting for the licensed insurer, for failing to give the prohibited inducement
mentioned in subsection (2)(a) to the entity in accordance with the provisions
of the terminated arrangement;
(b) the entity, for failing to direct the CTP
insurance business to the licensed insurer in return for the
prohibited inducement mentioned in subsection (1)(a) or (b) in accordance with
the provisions of the terminated arrangement.
(5) If, before 1 October 2010,
the entity has received an amount that on the commencement of this section
becomes a prohibited inducement under a terminated arrangement, the entity
within a reasonable period must repay the amount to the licensed insurer, or
the person acting for a licensed insurer, who gave the amount to the entity.
(6) If the entity fails to repay an amount under subsection (5), the licensed
insurer, or other person entitled to be repaid the amount, may recover it as a
debt.
(7) In this section—
"arrangement" includes contract and agreement.
"prohibited inducement" means an inducement of a type mentioned in
section 96(1) the giving or offering of which would be prohibited under
section 96(1) if the arrangement were entered into on or after 1 October 2010.
"terminated arrangement" means the arrangement to which subsection (2) applies
to the extent it is terminated by the subsection.
