37AASIC may grant exemptions from certain requirements under section 37

##### 37A ASIC may grant exemptions from certain requirements under section 37 (1) An insurance intermediary who is the agent of an insurer in respect of a class of insurance business may apply to ASIC to be granted an exemption from the requirements of subsections 37(2A) and (2B) in respect of money received in relation to contracts of insurance with that insurer in respect of a class of insurance business to which the agency agreement relates. (2) An insurance intermediary is not entitled to be granted such an exemption in relation to an insurer and a class of insurance business unless ASIC is satisfied: (a) that the intermediary will be acting under a binder given by the insurer in respect of the insurance business; and (b) that the nature of the business of the intermediary is such that it is not commercially practicable for the intermediary to comply with the requirements of subsections 37(2A) and (2B); and (c) the insurer consents to the intermediary being granted the exemption. (3) An application by an insurance intermediary for an exemption in relation to an insurer and a class of insurance business must: (a) be made in writing; and (b) be in an approved form; and (c) contain: (i) particulars of the binder given by the insurer; and (ii) a statement of the reasons why the intermediary contends that the relationship between the intermediary and the insurer is such that it is not commercially practicable to comply with the requirements of subsections 37(2A) and (2B); and (iii) such other particulars as the approved form requires; and (d) be accompanied by: (i) a copy of the agency agreement with the insurer; and (ii) a statement by the insurer to the effect that the insurer has no objection to the grant of the exemption. (4) If ASIC decides, having regard to the application and to the accompanying documents, to grant the insurance intermediary the exemption sought: (a) ASIC must inform the insurance intermediary: (i) of the granting of the exemption and of the date on which it is granted; and (ii) of any terms and conditions to which the exemption is subject; and (b) ASIC must, as soon as practicable, notify the granting of the exemption, in relation to the insurer and insurance business in the Gazette. (5) If ASIC decides, having regard to the application and to the accompanying documents, not to grant the exemption, ASIC must inform the insurance intermediary of ASIC’s decision and of the reasons for that decision. (6) An exemption granted to an insurance intermediary in respect of an insurer and a class of insurance business applies to all money received by the intermediary on behalf of that insurer in respect of that business on or after the day it is granted and while it remains in force. (7) ASIC may, by notice in writing, revoke an exemption granted to an insurance intermediary in respect of a particular insurer and particular insurance business: (a) if: (i) the intermediary, or a director, employee or agent of the intermediary, has, whether before or after the grant of the exemption and whether before or after the commencement of this section, been convicted of an offence against this Act or against any other law, whether of the Commonwealth, of a State or Territory, or of another country, in respect of conduct relating to insurance; (ii) ASIC is of the opinion that the offence renders the intermediary unfit to be exempt from the requirements of subsections 37(2A) and (2B); or (b) if the intermediary, or a director, employee or agent of the intermediary, becomes bankrupt or insolvent; or (c) if the intermediary ceases to be an agent of the insurer, or ceases to be an agent of the insurer in respect of that class of business; or (d) if the insurer indicates to ASIC that it no longer consents to the intermediary being so exempted; or (e) if, for any other reason, ASIC considers it no longer appropriate for the intermediary to continue to be so exempted. (8) If ASIC revokes the exemption of an insurance intermediary in relation to a particular insurer, and a particular class of insurance business: (a) ASIC must inform the insurance intermediary of the revocation and of the reasons for the revocation; and (b) ASIC must, as soon as practicable, notify that revocation in the Gazette.