Commonwealth Consolidated Acts

MEDICAL INDEMNITY (PRUDENTIAL SUPERVISION AND PRODUCT STANDARDS) ACT 2003 - SECT 27

  (1)   A person (the intermediary ) commits an offence if:

  (a)   the intermediary provides a financial service on or after 1   July 2003; and

  (b)   in the course of providing that service, the intermediary:

  (i)   arranges, or offers to arrange, for someone to enter into or renew a regulated insurance contract; or

  (ii)   recommends that someone enter into or renew a regulated insurance contract; and

  (c)   either:

  (i)   the regulated insurance contract breaches, or would breach, the minimum cover rules; or

  (ii)   the regulated insurance contract is a new regulated insurance contract and the insurer does not make a compulsory new contract offer in relation to the regulated insurance contract.

Penalty:   Imprisonment for 12 months.

  (2)   It does not matter whether the intermediary provides the financial service in the intermediary's own right or as a representative of another person.

  (3)   Subparagraph   (1)(b)(ii) does not apply to a recommendation by the intermediary if the intermediary has reasonable grounds to believe that a compulsory new contract offer will be made in relation to the new regulated insurance contract before that contract is entered into or is renewed.

Note:   A defendant bears an evidential burden in relation to the matter in this subsection   (see subsection   13.3(3) of the Criminal Code ).

  (4)   To avoid doubt, the intermediary commits the offence whether or not the insurer commits, or would commit, an offence against subsection   17(2), 18(3), 19(3) or 22(1).