10Insurance intermediaries other than brokers to operate under written agreements

##### 10 Insurance intermediaries other than brokers to operate under written agreements (1) An insurance intermediary (other than an insurance broker) shall not arrange, or hold the intermediary out as entitled to arrange, a contract of insurance as agent for an insurer unless an agreement in writing between the intermediary and the insurer authorizes the intermediary to arrange: (a) that contract; (b) any contracts of insurance; or (c) a class of contracts of insurance in which that contract is included; as agent for that insurer. (2) An insurer shall not cause or permit an insurance intermediary (other than an insurance broker) to arrange, or hold the intermediary out as entitled to arrange, a contract of insurance as agent for that insurer unless an agreement in writing between the insurer and the intermediary authorizes the intermediary to arrange: (a) that contract; (b) any contracts of insurance; or (c) a class of contracts of insurance in which that contract is included; as agent for that insurer. (2A) An agreement referred to in this section must specify whether an insurance intermediary can appoint a person as the intermediary’s agent for the purposes of the agreement. (3) Subsections (1) and (2) do not apply in relation to any act or thing done by an employee of an insurer in the course of performing his or her duties as such an employee. (4) Where an insurance intermediary to whom subsection (1) applies proposes, or holds the intermediary out as entitled, to arrange, or has arranged, a contract of insurance as agent of an insurer, ASIC, or the intending insured or the insured, may request the intermediary to give ASIC, the proposed insured or the insured a copy of the agreement authorizing the intermediary to arrange that contract, and, if such a request is made, the intermediary shall comply with the request within 7 days after the day on which the request is received by the intermediary. (5) ASIC may request an insurer to give ASIC a copy of the agreement referred to in subsection (2) that is in force between the insurer and an insurance intermediary referred to in the request, and, if such a request is made, the insurer shall comply with the request within 7 days after the day on which the request is received by the insurer. (6) The validity of a contract of insurance is not affected by a contravention of this section. Penalty: Imprisonment for 6 months. > Note: Subsection 4B(2) of the Crimes Act 1914 allows a court to impose an appropriate fine instead of, or in addition to, a term of imprisonment. If a body corporate is convicted of an offence, subsection 4B(3) of that Act allows a court to impose a fine of an amount that is not greater than 5 times the maximum fine that could be imposed by a court on an individual convicted of the same offence.