35Restrictions as to receipt and payment of remuneration

##### 35 Restrictions as to receipt and payment of remuneration (1) An insurance broker shall not receive from an insurer or from a person on behalf of an insurer a gift, gratuity, benefit or other reward (however described) except as remuneration for services rendered to the insurer: (a) in arranging or effecting a particular contract of insurance; (b) in connection with dealing with or settling a claim under a particular contract of insurance; or (c) otherwise than in connection with the broker arranging or effecting contracts of insurance or dealing with or settling claims under contracts of insurance. (2) An insurer shall not pay to an insurance broker, and an insurance broker shall not receive from an insurer, in respect of the arranging or effecting of contracts of insurance by that insurance broker with the insurer, remuneration at a rate or on a basis that has been varied having regard to any one or more of the following: (a) the number of contracts so arranged or effected; (b) the total amount of premiums paid or payable under such contracts; (c) the total amount of sums insured under such contracts. (3) Neither subsection (1) nor (2) has effect in relation to contracts of insurance effected under a binder or in relation to claims dealt with or settled under a binder, as the case may be, if the broker has complied with the requirements of section 16 or 17, as the case may be. 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.