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WORKERS' COMPENSATION AND INJURY MANAGEMENT ACT 1981 - SECT 160A

WORKERS' COMPENSATION AND INJURY MANAGEMENT ACT 1981 - SECT 160A

160A .         Insurance in respect of working directors

        (1)         If a dispute arises between an employer that is a company requesting insurance from an insurance office and the insurance office as to whether a person is a working director of the company, the employer or insurance office may apply to have the question determined by an arbitrator.

        (2)         An insurance office that has issued a policy or contract of insurance to a company that is an employer in respect of a working director pursuant to an application as described in section 10A(3) cannot decline to indemnify the employer in respect of a liability of the employer for the director on the basis that the director is not a worker, or that the company is not the employer of the director, unless an arbitrator determines that —

            (a)         a representation made by the company in respect of the director when applying for the issue of a policy or contract of insurance in respect of that director was false or misleading in a material particular; and

            (b)         the decision of the insurance office to issue a policy or contract of insurance in respect of the director was materially affected by that representation.

        [Section 160A inserted: No. 16 of 2005 s. 12.]