41BInsurance intermediaries taken to be associated because of prior conduct of personnel

##### 41B Insurance intermediaries taken to be associated because of prior conduct of personnel (1) For the purposes of section 21 or 31D, an insurance intermediary (the subject intermediary) is taken to be an associated insurance intermediary in respect of another insurance intermediary (the failed intermediary) that has failed to discharge the ordinary obligations of an insurance intermediary if; (a) a director of the subject intermediary: (i) was a director, principal, employee or agent of the failed intermediary; and (ii) if the director of the subject intermediary was an employee or agent of the failed intermediary—was in a position of influence or control over the operations of the failed intermediary; or (b) the principal of the subject intermediary: (i) was a director, principal, employee or agent of the failed intermediary; and (ii) if the principal of the subject intermediary was an employee or agent of the failed intermediary—was in a position of influence or control over the operations of the failed intermediary; or (c) an employee of the subject intermediary: (i) was a director, principal, employee or agent of the failed intermediary; and (ii) is in a position of influence or control over the operations of the subject intermediary; and (iii) if the employee of the subject intermediary was an employee or agent of the failed intermediary—was in a position of influence or control over the operations of the failed intermediary; or (d) an agent of the subject intermediary: (i) was a director, principal, employee or agent of the failed intermediary; and (ii) is in a position of influence or control over the operations of the subject intermediary; and (iii) if the agent of the subject intermediary was an employee or agent of the failed intermediary—was in a position of influence or control over the operations of the failed intermediary. (2) In subsection (1): (a) a reference to a principal of an insurance intermediary is a reference to the principal of an insurance intermediary that is not a corporation and includes a sole trader; and (b) a reference to an employee or agent of an insurance intermediary includes a reference to an employee or agent of an insurance intermediary that is not a corporation.