156AMisleading conduct by insurers and insurance intermediaries

#### 156A Misleading conduct by insurers and insurance intermediaries 156A Misleading conduct by insurers and insurance intermediaries > > (1) In this section— > > > > insurance intermediary means— > > > > > (a) a person who arranges contracts of insurance in New South Wales— > > > > > > > (i) for reward, or > > > > > > > (ii) as an agent for a person carrying on a business of insurance, or > > > > > > > (iii) as an agent for the Nominal Insurer, or > > > > > (b) a financial services licensee (as defined in section 761A of the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth) whose licence covers arranging contracts of insurance as an agent for a person carrying on a business of insurance, or > > > > > (c) a regulated principal (as defined in section 1430 of the [Corporations Act 2001](http://www.legislation.gov.au/) of the Commonwealth) when carrying on business as an insurance broker as authorised by Subdivision D of Division 1 of Part 10.2 of that Act. > > > > insurer means a person who carries on insurance business as defined in the [Insurance Act 1973](http://www.legislation.gov.au/) of the Commonwealth. > > > (2) An insurer or insurance intermediary must not make a representation with respect to any insurance (whether by means of an advertisement or otherwise) that could reasonably be expected to cause an employer to believe that the insurance is comprehensive for business needs, unless— > > > > > (a) the insurance includes the insurance required by this Act or the 1998 Act, or > > > > > (b) the representation includes a clear statement to the effect that the insurance does not include workers compensation insurance and that workers compensation insurance is compulsory for employers. > > > (3) An insurer or insurance intermediary who contravenes this section is guilty of an offence. > > > > Maximum penalty—200 penalty units. > > > (4) In any action under section 144, 145, 145A or 156 in respect of a failure by an employer to obtain or maintain in force a policy of insurance, the court hearing the action may order that a specified insurer or insurance intermediary be joined as a party in the proceedings if the court thinks that the insurer or insurance intermediary may be culpable in the matter. > > > (5) An insurer or insurance intermediary is culpable in a matter if it appears that the insurer or insurance intermediary has engaged in conduct that constitutes a contravention of this section (whether or not the insurer or insurance intermediary has been prosecuted for or convicted of an offence in respect of the contravention) and that conduct caused or contributed significantly to the failure by the employer to obtain or maintain the insurance concerned. > > > (6) In any proceedings in which an insurer or insurance intermediary is joined as a party under this section the court hearing the proceedings may, if satisfied that the insurer or insurance intermediary is culpable in the matter, order that the insurer or insurance intermediary is to be jointly and severally liable with any other party in respect of any amount ordered to be paid by that other party in the proceedings or is to be separately liable, in place of that other party, as to the whole or a specified part of any amount that the other party might be ordered to pay in the proceedings. > > > (7) (Repealed) > > **s 156A:** Ins 1996 No 120, Sch 1.14 \[1\]. Am 1997 No 134, Sch 1 \[23\]; 1998 No 85, Sch 1 \[70\] \[71\]; 2001 No 94, Sch 6.1 \[2\]; 2002 No 26, Sch 2.13; 2003 No 81, Sch 2 \[29\].