Document ID: chunk:federal_register_of_legislation:C2004A04724:body:0:p14
Version: federal_register_of_legislation:C2004A04724
Segment Type: other
Provision Reference: 
Character Range: 34293–37219

extension of the lodgment period—must be lodged within the extended period.".

Insertion of new section

  27. After section 33 of the Principal Act the following section is inserted:

Insurance intermediaries to notify insurers of multiple agency arrangements

"33A.(1) This section applies to an insurance intermediary other than an insurance broker.

"(2) If, when this section commences, an insurance intermediary is the agent of more than one insurer, the intermediary must, within 60 days after this section commences, give written notice to each insurer of the name of each other insurer.

  "(3) If an insurance intermediary:

  (a) is the agent of an insurer (an 'existing principal'); and

     (b) proposes to enter into an agency agreement with another insurer (the 'intended principal');

the intermediary must not enter that agreement unless:

     (c) each existing principal is given written notice of the name of the intended principal; and

     (d) the intended principal is given written notice of the name of each existing principal.

  "(4) If an insurance intermediary:

  (a) is the agent of more than one insurer (the 'existing principals'); and

  (b) proposes to renew or cancel one of the agency agreements concerned;

the intermediary must not renew or cancel that agreement until each existing principal (other than the principal with whom the agreement is to be cancelled or renewed) is given written notice of that intention.

"(5) If an insurance intermediary:

  (a) is the agent of more than one insurer (the 'existing principals'); and

     (b) one of the agency agreements concerned expires or is terminated by force of the agreement or at the initiative of one of the existing principals;

the intermediary must, within 7 days of the expiration or termination of that agreement, give written notice to each other existing principal of that expiration or termination.

Penalty: 50 penalty units.".

Insertion of new sections

28. After section 34 of the Principal Act the following sections are inserted:

Commissioner may direct an insurance intermediary to provide information

  "34A.(1) If, in the Commissioner's opinion, an insurance intermediary:

    (a) has not met the ordinary obligations of an insurance intermediary as set out in decision-making principles in force under section 41A; or

  (b) is not meeting those obligations; or

  (c) is not likely to be able to meet those obligations;

the Commissioner may direct an insurance intermediary, or a director, employee or agent of the insurance intermediary, to do all or any of the following:

    (d) to provide the Commissioner with such information as the Commissioner requires;

    (e) to attend and give evidence before the Commissioner or an authorised officer;

    (f) to produce to the Commissioner any documents in the custody or under the control of the person;

for the purpose of enabling the Commissioner to