Section 19. Insurance agents and brokers. (INSURANCE ACT, 1963

(P.M. ACT 1 OF 1963)
INSURANCE ACT, 1963

PART II - CONDUCT OF INSURANCE BUSINESS
Subsidiary

Section 19. Insurance agents and brokers.

(1) Subject to sub-section (4), no person sahll carry on insurance business in the Federation as insurance agent for an insurer not entitled under this Act to carry on the business in question in the Federation; and a person contravening this sub-section shall on conviction be liable to a fine of five thousand dollars, increased by one thousand dollars for each day on which he is proved to have done so, or to imprisonment for a term of twelve months, or to both such fine and such imprisonment.

(2) Subject to sub-sections (3) and (4), no Federation insurance broker shall in the course of his business as such negotiate any contract of insurance with an insurer (whether directly or through an insurance agent), except with a Federation insurer acting in the course of his business as such, nor shall any person in the Federation solicit insurance business for an insurer not entitled to carryon that business in the Federation; and a person contravening this subsection shall on conviction be liabIe to a fine of two thousand dollars, or to imprisonment for a term of six months, or to both such fine and such imprisonment.

(3) The references in sub-section (2) to a contract of insurance and to insurance business shall not apply to re-Insurance.

(4) If in any particular case a Federation insurance broker satisfies the Commissioner that, by reason of the exceptional nature of the risk or other exceptional circumstances, it is not reasonably practicable to effect an insurance with a Federation insurer acting in the course of his business as such, the Commissioner may, notwithstanding anything in section 3 or in this section, permit the broker to negotiate the insurance with such insurer as the broker sees fit and also, if in the opinion of the Commissioner the case requires it, to effect the insurance and receive the premium in the Federation on behalf of the insurrer.

(5) Sections 16 and 18 shall apply in relation to Federation insurance agents and to Federation insurance brokers as they apply in relation to Federation insurers.