34Insurance intermediary to notify insured if insurer is an unauthorised foreign insurer

##### 34 Insurance intermediary to notify insured if insurer is an unauthorised foreign insurer (1) Where: (a) a contract of general insurance is arranged or effected by an insurance intermediary; (b) the insurer, or any of the insurers, under the contract is an unauthorised foreign insurer; and (c) the insurance intermediary did not obtain an acknowledgment in the approved form from the appropriate person, given in the approved manner and within the required time; the insurance intermediary is guilty of an offence punishable, on conviction, by imprisonment for not more than 2 years: (e) in the case of a corporation—by a fine not exceeding $5,000. > 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. (2) In subsection (1): > appropriate person means: (a) if the regulations provide for the acknowledgment to be given by a person on behalf of the insured—that person; or (b) in any other case—the insured. > required time means: (a) if it is practicable for the acknowledgment to be obtained before the contract is arranged or effected—the time when the contract is arranged or effected; or (b) in any other case—as soon as reasonably practicable after the contract is arranged or effected. (3) A reference in this section to the approved manner is a reference to the manner specified in a written instrument made by ASIC for the purposes of this subsection. (3A) An instrument under subsection (3) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901. (4) If a proposed contract of insurance is to be arranged or effected, or a contract of insurance has been arranged or effected, by an insurance intermediary through another insurance intermediary (including another insurance intermediary who is an insurance broker), this section applies as if the proposed contract were to be arranged or effected, or the contract of insurance had been arranged or effected, as the case may be, by the first‑mentioned insurance intermediary otherwise than through the other insurance intermediary.