Document ID: chunk:federal_register_of_legislation:C2004A03409:body:0:p20
Version: federal_register_of_legislation:C2004A03409
Segment Type: other
Provision Reference: 
Character Range: 47938–50757

with paragraph (a), give notice to the insured, as soon as is reasonably practicable after the broker has arranged the contract, that, in arranging the contract, the broker acted under an authority given by the insurer to arrange the contract and that the broker arranged the contract as agent of the insurer and not of the insured.
        Penalty:
        (a) in the case of a natural person—$1,000; or
        (b) in the case of a corporation—$5,000.".
     (b) Omit from sub-section (2) "sub-section (1)", substitute "this section".
Paragraph 19 (1) (b)—
Omit the paragraph, substitute the following paragraph:
     "(b) if there are liabilities prescribed for the purposes of this paragraph—unless there is in force a contract of insurance accepted by the relevant Commissioner under which the person is indemnified to the extent required by the regulations in respect of the prescribed liabilities arising out of or in the course of the person's business as an insurance intermediary.".
Section 19—
Add at the end the following sub-sections:
"(3) The relevant Commissioner may, by notice in writing served on the registered insurance broker concerned, declare that a contract specified in the notice is no longer acceptable for the purposes of paragraph 19 (1) (b).
"(4) A notice served under sub-section (3) has effect on a day specified in the notice, being a day not less than 21 days after service of the notice.".
SCHEDULE 1—continued
Section 20—
After sub-section (2) insert the following sub-section:
"(2a) For the avoidance of doubt, it is declared that regulations made for the purposes of sub-section (2) may include the requirement to provide—
     (a) information required for statistical purposes; and
     (b) information that is, or may be, required to be furnished to the relevant Commissioner under any other provision of this Act or the regulations.".
Sub-section 20 (3)—
Omit "wilfully and".
Section 26—
After sub-section (1) insert the following sub-section:
"(1a) In sub-section (1), 'bank' includes a building society with which trust funds may be invested under a law of the Commonwealth or of a State or Territory.".
Section 27—
Add at the end the following sub-sections:
"(13) Where—
     (a) under sub-section (1), (2), (3), (4) or (5), a broker is required to pay an amount to, or to notify, an insurer; and
     (b) under the contract or proposed contract of insurance concerned the insurer is an underwriting member of Lloyd's,
it is sufficient compliance with the sub-section if the broker pays the amount to, or notifies, as the case may be, the Lloyd's broker concerned.
"(14) In sub-section (13), 'Lloyd's' has the same meaning as in the Insurance Act 1973.".
Sub-section 37 (2)—
Omit "Unless", substitute "Where the contract of insurance was arranged by the person and the moneys