Insurance (Agents and Brokers) Act 1984
11Liability for conduct of agents and employees
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11 Liability for conduct of agents and employees
(1) This section applies to any conduct of an employee or agent of an insurer:
(a) on which a person in the circumstances of the insured or intending insured could reasonably be expected to rely; and
(b) on which the insured or intending insured in fact relied in good faith.
(1A) An insurer is responsible, as between the insurer and the insured or intending insured, for the conduct of an employee of the insurer in relation to any matter relating to insurance, whether or not the employee acted within the scope of his or her employment. (1B) If a person is the agent of one insurer only, the insurer is responsible, as between the insurer and the insured or intending insured, for the conduct of the agent in relation to any matter relating to insurance, whether or not the agent acted within the scope of the authority granted by the insurer. (1C) If:
(a) a person who is the agent of more than one insurer is the agent of one insurer only in respect of a particular class of insurance business; and
(b) the person engages in the conduct in relation to any matter relating to that class of insurance business;
the insurer who granted the agency agreement in respect of that class of insurance business is responsible for the conduct, as between the insurer and the insured or intending insured, whether or not the agent has acted within the scope of the authority granted by the insurer. (1D) If:
(a) a person is the agent of more than one insurer in respect of a particular class of insurance business; and
(b) the person engages in the conduct in relation to any matter relating to that class of insurance;
the insurers are jointly and severally responsible for the conduct, as between themselves and the insured or intending insured, if the agent has acted beyond the scope of the authority granted by any of the insurers. (1E) If:
(a) a person is the agent of more than one insurer in respect of a particular class of insurance business; and
(b) the person engages in the conduct in relation to a matter relating to that class; and
(c) the person, in so engaging, has acted within the scope of the authority granted by one only of those insurers;
that insurer is responsible for the conduct, as between the insurer referred to in paragraph (c) and the insured or intending insured. (1F) If:
(a) a person is the agent of more than one insurer in respect of a particular class of insurance business; and
(b) the person engages in the conduct in relation to a matter relating to that class; and
(c) the person, in so engaging, has acted within the scope of the authority granted by some only of those insurers;