154Managing agent to obtain insurance quotations

154 Managing agent to obtain insurance quotations

154 Managing agent to obtain insurance quotations

(1) A managing agent must provide the association with not less than 3 quotations from different providers for each type of insurance proposed by the agent to the association or provide written reasons to the association if fewer than 3 quotations are provided.

Maximum penalty—

(a) for a corporation—500 penalty units, or

(b) otherwise—100 penalty units.

(2) A quotation must include the following—

(a) a breakdown of charges, including the following if applicable—

(i) the base premium amount, other than an amount referred to in subparagraph (ii),

(ii) the commission, other than any broker fee, expressed as an amount and as a percentage of the base premium amount,

(iii) the broker fee, expressed as an amount and as a percentage of the base premium amount,

(iv) the stamp duty amount,

(v) levy amounts,

(vi) underwriting agency fees,

(vii) the goods and services tax amount,

(viii) other amounts or percentages relating to the charges prescribed by the regulations,

(b) the persons to whom the commission and broker fee will ultimately be paid,

(c) a statement as to whether the person providing the quotation is connected with the agent.

(3) The managing agent must provide the owners corporation with the quotations or written reasons as soon as practicable to enable the owners corporation to make a decision about the insurance.

s 154: Am 2024 No 65, Sch 3[9] [10].