sec.17KMinimum standard of professional indemnity insurance

### sec.17K Minimum standard of professional indemnity insurance The terms of a licensee’s professional indemnity insurance policy must— insure the licensee for liability arising from an act or omission by the licensee in the course of conducting business under the licence; and insure the licensee for liability arising from misleading or deceptive conduct, other than fraud or another illegal act or omission by the licensee; and for a corporation—insure the licensee for liability arising from an act or omission by a current or former partner, director or employee of the licensee who holds or held a licence to carry out building work, or supervise building work carried out, under the licensee’s contractor’s licence; and for a licensee mentioned in section 17J (3) who elects to maintain the public and products liability insurance mentioned in section 17J (3) (b) —insure the licensee for the certification of a system mentioned in the Building Act 1975 , schedule 2 , definition special fire service , paragraph (e) ; and insure the licensee for costs and expenses incurred with the consent of the insurer for defending or settling a claim. Also, the terms of the policy must not provide for an exclusion for the performance of building work performed by the licensee, other than an exclusion under the insurer’s standard terms for professional indemnity insurance for a business of the type carried on by the licensee. For subsection (1) (e) , the insurance may, for any 1 claim, be limited to the following, whichever is greater— 20% of the limit of insurance under the policy; $100,000. s 17K ins 2019 SL No. 30 s 24 (sec.17K-ssec.1) The terms of a licensee’s professional indemnity insurance policy must— insure the licensee for liability arising from an act or omission by the licensee in the course of conducting business under the licence; and insure the licensee for liability arising from misleading or deceptive conduct, other than fraud or another illegal act or omission by the licensee; and for a corporation—insure the licensee for liability arising from an act or omission by a current or former partner, director or employee of the licensee who holds or held a licence to carry out building work, or supervise building work carried out, under the licensee’s contractor’s licence; and for a licensee mentioned in section 17J (3) who elects to maintain the public and products liability insurance mentioned in section 17J (3) (b) —insure the licensee for the certification of a system mentioned in the Building Act 1975 , schedule 2 , definition special fire service , paragraph (e) ; and insure the licensee for costs and expenses incurred with the consent of the insurer for defending or settling a claim. (sec.17K-ssec.2) Also, the terms of the policy must not provide for an exclusion for the performance of building work performed by the licensee, other than an exclusion under the insurer’s standard terms for professional indemnity insurance for a business of the type carried on by the licensee. (sec.17K-ssec.3) For subsection (1) (e) , the insurance may, for any 1 claim, be limited to the following, whichever is greater— 20% of the limit of insurance under the policy; $100,000. - (a) insure the licensee for liability arising from an act or omission by the licensee in the course of conducting business under the licence; and - (b) insure the licensee for liability arising from misleading or deceptive conduct, other than fraud or another illegal act or omission by the licensee; and - (c) for a corporation—insure the licensee for liability arising from an act or omission by a current or former partner, director or employee of the licensee who holds or held a licence to carry out building work, or supervise building work carried out, under the licensee’s contractor’s licence; and - (d) for a licensee mentioned in section 17J (3) who elects to maintain the public and products liability insurance mentioned in section 17J (3) (b) —insure the licensee for the certification of a system mentioned in the Building Act 1975 , schedule 2 , definition special fire service , paragraph (e) ; and - (e) insure the licensee for costs and expenses incurred with the consent of the insurer for defending or settling a claim. - (a) 20% of the limit of insurance under the policy; - (b) $100,000.