Document ID: chunk:federal_register_of_legislation:C2020A00135:clause:6_114:p1
Version: federal_register_of_legislation:C2020A00135
Segment Type: clause
Provision Reference: sch 6 cl 114 (pt 1/2)
Character Range: 83860–86524

114  Use of words "insurance" and "insurer"

Use of the word "insurance"
 (1) A person commits an offence if:
 (a) the person carries on a business or is proposing to carry on a business; and
 (b) the person uses the word insurance to describe (expressly or by implication) a product or service that the person supplies, or proposes to supply, in the course of carrying on the business; and
 (c) the product or service is not insurance; and
 (d) it is likely in all the circumstances (including the use of the word insurance) that the product or service could be mistakenly believed to be insurance.
Penalty:
 (a) in the case of an individual—50 penalty units; or
 (b) in the case of a body corporate—500 penalty units.

Use of the word "insurer"
 (2) A person commits an offence if:
 (a) the person carries on a business or is proposing to carry on a business; and
 (b) the person uses the word insurer to describe (expressly or by implication) the person in connection with a product or service that the person supplies, or proposes to supply, in the course of carrying on the business; and
 (c) either:
 (i) the product or service is not insurance; or
 (ii) the person would breach a requirement mentioned in subsection (3) if the person supplied the product or service in the course of carrying on the business; and
 (d) in a case where the product or service is not insurance—it is likely in all the circumstances (including the use of the word insurer) that the product or service could be mistakenly believed to be insurance.
Penalty:
 (a) in the case of an individual—50 penalty units; or
 (b) in the case of a body corporate—500 penalty units.
 (3) For the purposes of subparagraph (2)(c)(ii), the requirements are the requirements imposed by the following provisions:
 (a) section 9 or 10 of this Act (need to be authorised to carry on insurance business);
 (b) section 17 of the Life Insurance Act 1995 (registration of life companies);
 (c) section 10 of the Private Health Insurance (Prudential Supervision) Act 2015 (carrying on health insurance business without registration).

Exceptions
 (4) Subsections (1) and (2) do not apply if:
 (a) the person is a government entity; or
 (b) the person:
 (i) is covered by a determination under subsection (6); and
 (ii) if that determination is subject to conditions—meets those conditions; or
 (c) the product or service is of a kind prescribed by the regulations; or
 (d) the product or service is State insurance (within the meaning of paragraph 51(xiv) of the Constitution) not extending beyond the limits of the State concerned.
Note: The defendant bears an evidential burden in relation to the matters