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“Acting as insurance intermediary.
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25A.—(1) An insurance intermediary shall not place or attempt to place insurance, other than reinsurance, otherwise than with an insurance undertaking.
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(2) The
Investor Compensation Act, 1998
, shall not apply to insurance intermediaries if and in so far as their business relates to reinsurance or advice regarding reinsurance policies.
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Acting as insurance broker.
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25B.—A person shall not act as, or hold himself out to be, an insurance broker in respect of life assurance or non-life insurance unless he is in a position to place insurance of that form with at least 5 insurance undertakings.
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Acting as insurance agent.
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25C.—A person shall not act as, or hold himself out to be, an insurance agent in respect of life assurance or non-life insurance unless he is in a position to place insurance of that form with no more than 4 insurance undertakings.
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Acting as tied insurance agent.
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25D.—(1) A tied insurance agent shall not act in relation to contracts of insurance which—
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(a) are offered or issued by an insurance undertaking other than the undertaking with whom the tied insurance agent has entered into a tied agency agreement or arrangement, and
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(b) are for the same form of insurance (whether life assurance or non-life insurance) as the contracts of insurance offered or issued by the insurance undertaking with whom the tied insurance agent has entered into a tied agency agreement or arrangement.
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(2) In this section, ‘tied agency agreement or arrangement’ means an agreement or arrangement of the type described in the definition, in section 2(1) of this Act, of ‘tied insurance agent’.
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Provisions regarding scope of agency.
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25E.—(1) An insurance agent shall be deemed to be acting as the agent of the insurance undertaking to whom a proposal of insurance is being made when, for the purpose of the formation of the insurance contract, the agent completes or helps the proposer of the contract to complete, a proposal for insurance.
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(2) Only in the circumstances described in subsection (1) of this section shall the undertaking be responsible for any errors or omissions in the completed proposal.
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(3) An insurance undertaking shall be responsible for any act or omission of its tied insurance agent in respect of any matter relating to a contract of insurance offered or issued by that undertaking of a form (whether life assurance or non-life insurance) to which the tied agency agreement or arrangement relates, as if the tied insurance agent was an employee of that undertaking.
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(4) Nothing in this section shall render an insurance undertaking, its insurance agent or its tied insurance agent responsible for any false statements supplied to, or any information withheld from, the agent by the proposer of an insurance policy.
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Acceptance by insurance intermediary of insurance proposals.
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25F.—(1) An insurance intermediary shall not accept money from a client unless the insurance intermediary is authorised by the supervisory authority or otherwise permitted under section 26 of this Act to do so and—
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(a) in respect of a proposal, unless it is accompanied by the completed proposal or unless the proposal has been accepted by the insurance undertaking, or
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(b) in respect of a renewal of a policy of insurance, unless the renewal has been invited by the insurance undertaking.
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(2) The supervisory authority may prescribe any alteration or addition to the circumstances in which an insurance intermediary may accept money from a client under subsection (1) of this section.
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(3) Where an insurance intermediary accepts from a client—
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(a) a completed insurance proposal, accompanied by a payment of money, with a view to effecting with an undertaking a policy of insurance, or
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(b) money in respect of a proposal accepted by an undertaking or in respect of renewal of a policy of insurance which has been invited by the undertaking,
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the insurance intermediary shall serve on the client a document which complies with section 30 of this Act.
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(4) If subsection (3)(a) of this section applies, the acceptance by the insurance intermediary of a completed insurance proposal does not itself constitute the effecting of a policy of insurance.
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Treatment of premiums paid to insurance intermediaries.
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25G.—(1) Where a premium is paid to an insurance intermediary in respect of a renewal of a policy which has been invited by an insurance undertaking, or in respect of a proposal accepted by an undertaking, the premium shall be treated as having been paid to the insurance undertaking when it is paid to the insurance intermediary.
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(2) Nothing in this section shall render an insurance undertaking liable for a premium paid to an intermediary in respect of a proposal accepted by an insurance undertaking or a renewal of a policy which has been invited by the insurance undertaking, where the insurance undertaking has given reasonable notice in writing to the person whose proposal has been accepted or whose policy is being renewed, that the intermediary has no authority to collect such premiums on behalf of the insurance undertaking.”.
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