Document ID: chunk:federal_register_of_legislation:C2004A04724:body:0:p12
Version: federal_register_of_legislation:C2004A04724
Segment Type: other
Provision Reference: 
Character Range: 29036–31750

effected or to be arranged or effected by the broker" and substituting "or proposed contract of insurance";

  (b) by adding after subsection (1A) the following subsection:

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

    (c) by omitting from paragraph (3)(b) "arranged or effected by the broker";

    (d) by omitting from subsection (4) "arranged or effected or to be arranged or effected by the broker".

Debts of brokers in relation to premiums etc.

22. Section 27 of the Principal Act is amended by omitting subsection (9) and substituting the following subsections:

  "(9) If:

     (a) a registered insurance broker receives money from, or on behalf of, an insured or intending insured in connection with a contract of insurance or proposed contract of insurance; and

     (b) at the end of 30 days after the day on which the money was received, the risk, or a part of the risk, to which the contract or proposed contract relates has not been accepted;

subsection (9A) or (9B) applies to the broker.

"(9A) If the risk to which the contract or proposed contract relates has not been accepted, the broker must, within 7 days after the end of the 30 day period:

     (a) give notice in the approved form (if any) to the insured or intending insured that the risk has not been accepted; and

  (b) return the money to the insured or intending insured.

"(9B) If a part of the risk to which the contract or proposed contract relates has not been accepted, the broker must, within 7 days after the end of the 30 day period:

     (a) give notice in the approved form (if any) to the insured or intending insured of the extent to which the risk has not been accepted; and

     (b) return that part of the money that relates to the part of the risk that has not been accepted to the insured or intending insured.".

Foreign insurance agents not to carry on business unless registered

  23. Section 31B of the Principal Act is amended:

     (a) by omitting subparagraph (1)(a)(ii) and substituting the following subparagraph:

          "(ii) if there are liabilities prescribed for the purposes of this subparagraph—there is in force an acceptable contract of professional indemnity insurance within the meaning of section 9B; or";

     (b) by omitting subparagraph (1)(b)(ii) and substituting the following subparagraph:

          "(ii) if there are liabilities prescribed for the purposes of this subparagraph—there is in force an acceptable