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 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 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 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.