Document ID: chunk:federal_register_of_legislation:C2024C00826:clause:1_145
Version: federal_register_of_legislation:C2024C00826
Segment Type: clause
Provision Reference: sch 1 cl 145
Character Range: 956705–958640

145  Commission for consumer credit insurance
 (1) This section applies to commission paid by an insurer in connection with consumer credit insurance taken out by the debtor, or for which an amount is paid by the debtor.
 (2) The total of any such commission accepted by all or any of the following:
 (a) the credit provider;
 (b) the supplier under a sale contract in relation to which there is a tied loan contract or a tied continuing credit contract;
 (c) the agent of the credit provider or supplier;
must not exceed, in amount or value, 20% of the premium (excluding government charges).
 (3) A credit provider or any such supplier or agent must not accept, and an insurer must not pay, a commission exceeding, in amount or value, the maximum allowed under this section.
Criminal penalty: 100 penalty units.
 (4) Subsection (3) is an offence of strict liability.
Note: For strict liability, see section 6.1 of the Criminal Code.

Civil effect
 (5) If a credit provider or supplier contravenes this section, the insured is entitled to recover the whole amount or value of the commission from the credit provider or the supplier, as the case requires.

ASIC determinations of caps on commissions
 (6) Despite subsection (1), this section does not apply to commission mentioned in that subsection if the insurance:
 (a) is an add‑on risk product of a kind covered by a determination under subsection 12DMC(3) of the Australian Securities and Investments Commission Act 2001; and
 (b) is provided in connection with:
 (i) the sale or long‑term lease of a motor vehicle; or
 (ii) the provision of credit connected with the sale or long‑term lease of a motor vehicle.
Note: Under subsection 12DMC(3) of the Australian Securities and Investments Commission Act 2001, ASIC may determine caps for commissions provided in connection with consumer credit insurance for credit connected with the sale or long‑term lease of a motor vehicle.