sec.113Termination of s 96 inducement

### sec.113 Termination of s 96 inducement This section applies to an arrangement entered into before 1 October 2010 between a licensed insurer, or a person acting for a licensed insurer, and another entity (the entity ) if under the arrangement— a prohibited inducement is to be given to the entity on or after 1 October 2010 for directing CTP insurance business to the licensed insurer before, on or after 1 October 2010; or a prohibited inducement has been given to the entity before 1 October 2010 for directing CTP insurance business to the licensed insurer on or after 1 October 2010. The arrangement is terminated, and is void and unenforceable, to the extent it makes provision for— the prohibited inducement; and directing CTP insurance business to the licensed insurer in return for the prohibited inducement. No compensation is payable to any person for the termination of the arrangement. The following are taken not to be in breach of the terminated arrangement— the licensed insurer, or person acting for the licensed insurer, for failing to give the prohibited inducement mentioned in subsection (2)(a) to the entity in accordance with the provisions of the terminated arrangement; the entity, for failing to direct the CTP insurance business to the licensed insurer in return for the prohibited inducement mentioned in subsection (1)(a) or (b) in accordance with the provisions of the terminated arrangement. If, before 1 October 2010, the entity has received an amount that on the commencement of this section becomes a prohibited inducement under a terminated arrangement, the entity within a reasonable period must repay the amount to the licensed insurer, or the person acting for a licensed insurer, who gave the amount to the entity. If the entity fails to repay an amount under subsection (5), the licensed insurer, or other person entitled to be repaid the amount, may recover it as a debt. In this section— arrangement includes contract and agreement. prohibited inducement means an inducement of a type mentioned in section 96(1) the giving or offering of which would be prohibited under section 96(1) if the arrangement were entered into on or after 1 October 2010. terminated arrangement means the arrangement to which subsection (2) applies to the extent it is terminated by the subsection. s 113 ins 2010 No. 32 s 14 (sec.113-ssec.1) This section applies to an arrangement entered into before 1 October 2010 between a licensed insurer, or a person acting for a licensed insurer, and another entity (the entity ) if under the arrangement— a prohibited inducement is to be given to the entity on or after 1 October 2010 for directing CTP insurance business to the licensed insurer before, on or after 1 October 2010; or a prohibited inducement has been given to the entity before 1 October 2010 for directing CTP insurance business to the licensed insurer on or after 1 October 2010. (sec.113-ssec.2) The arrangement is terminated, and is void and unenforceable, to the extent it makes provision for— the prohibited inducement; and directing CTP insurance business to the licensed insurer in return for the prohibited inducement. (sec.113-ssec.3) No compensation is payable to any person for the termination of the arrangement. (sec.113-ssec.4) The following are taken not to be in breach of the terminated arrangement— the licensed insurer, or person acting for the licensed insurer, for failing to give the prohibited inducement mentioned in subsection (2)(a) to the entity in accordance with the provisions of the terminated arrangement; the entity, for failing to direct the CTP insurance business to the licensed insurer in return for the prohibited inducement mentioned in subsection (1)(a) or (b) in accordance with the provisions of the terminated arrangement. (sec.113-ssec.5) If, before 1 October 2010, the entity has received an amount that on the commencement of this section becomes a prohibited inducement under a terminated arrangement, the entity within a reasonable period must repay the amount to the licensed insurer, or the person acting for a licensed insurer, who gave the amount to the entity. (sec.113-ssec.6) If the entity fails to repay an amount under subsection (5), the licensed insurer, or other person entitled to be repaid the amount, may recover it as a debt. (sec.113-ssec.7) In this section— arrangement includes contract and agreement. prohibited inducement means an inducement of a type mentioned in section 96(1) the giving or offering of which would be prohibited under section 96(1) if the arrangement were entered into on or after 1 October 2010. terminated arrangement means the arrangement to which subsection (2) applies to the extent it is terminated by the subsection. - (a) a prohibited inducement is to be given to the entity on or after 1 October 2010 for directing CTP insurance business to the licensed insurer before, on or after 1 October 2010; or - (b) a prohibited inducement has been given to the entity before 1 October 2010 for directing CTP insurance business to the licensed insurer on or after 1 October 2010. - (a) the prohibited inducement; and - (b) directing CTP insurance business to the licensed insurer in return for the prohibited inducement. - (a) the licensed insurer, or person acting for the licensed insurer, for failing to give the prohibited inducement mentioned in subsection (2)(a) to the entity in accordance with the provisions of the terminated arrangement; - (b) the entity, for failing to direct the CTP insurance business to the licensed insurer in return for the prohibited inducement mentioned in subsection (1)(a) or (b) in accordance with the provisions of the terminated arrangement.