29Brokers not bound by certain agreements etc.

##### 29 Brokers not bound by certain agreements etc. (1) A life insurance broker is not bound by an agreement, arrangement or understanding with an insurer in so far as the agreement, arrangement or understanding requires the broker to arrange or effect some or all contracts of life insurance, or some or all contracts of life insurance of a particular class, with that insurer only and with no other insurer. (2) A general insurance broker is not bound by an agreement, arrangement or understanding with an insurer in so far as the agreement, arrangement or understanding requires the general insurance broker to arrange or effect some or all contracts of insurance (other than contracts of life insurance), or some or all contracts of insurance (other than contracts of life insurance) of a particular class, with that insurer only and with no other insurer. (3) Neither subsection (1) nor (2) applies to so much of an agreement, arrangement or understanding as relates to contracts of insurance effected under a binder. (4) The operation of subsections (1) and (2) extends to agreements, arrangements and understandings made or entered into before the commencement of this section or, in relation to an external Territory to which this Act extends, before this section commences to have effect in that Territory. (5) A person shall not: (a) make, or offer to make, an agreement or arrangement, or enter into, or offer to enter into, an understanding, that, under the preceding provisions of this section, would not be binding on the person; or (b) act upon or under such an agreement, arrangement or understanding. Penalty: Imprisonment for 1 year. > 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.