Insurance Ordinance

(1)
This section applies
if—
(a)
an authorized insurer has appointed a person as an agent of the insurer; and
(b)
the person has dealings with another person (
client
)
for—
(i)
the issue of a contract of insurance for the client; or
(ii)
insurance business relating to the contract.
(Replaced
12 of 2015 s. 76
)
(2)
If the person is appointed by 1 authorized insurer as an agent, the insurer is liable for any act of the person in relation to those dealings, whether or not the act is within the scope of the person’s authority.
(Replaced
12 of 2015 s. 76
)
(3)
If—
(a)
the person is appointed by more than one authorized insurer as an agent;
(b)
those dealings relate to a particular line of business; and
(c)
the person is appointed by only one of those insurers (
empowering insurer
) to engage in that line of business,
the empowering insurer is liable for any act of the person in relation to those dealings, whether or not the act is within the scope of the person’s authority.
(Replaced
12 of 2015 s. 76
)
(4)
If—
(a)
the person is appointed by more than one authorized insurer as an agent to engage in a particular line of business;
(b)
those dealings relate to that line of business; and
(c)
an act of the person in relation to those dealings is within the scope of the person’s authority in relation to only one of those insurers (
empowering insurer
),
the empowering insurer is liable for the act of the person in relation to those dealings.
(Replaced
12 of 2015 s. 76
)
(4A)
If—
(a)
the person is appointed by more than one authorized insurer as an agent to engage in a particular line of business;
(b)
those dealings relate to that line of business; and
(c)
an act of the person in relation to those dealings is within the scope of the person’s authority in relation to 2 or more of those insurers (
empowering insurers
),
the empowering insurers are jointly and severally liable for the act of the person in relation to those dealings.
(Added
12 of 2015 s. 76
)
(4B)
If—
(a)
the person is appointed by more than one authorized insurer as an agent to engage in a particular line of business;
(b)
those dealings relate to that line of business; and
(c)
an act of the person in relation to those dealings is not within the scope of the person’s authority in relation to any of those insurers,
all of those insurers are jointly and severally liable for the act of the person in relation to those dealings.
(Added
12 of 2015 s. 76
)
(4C)
Despite subsections (2), (3), (4), (4A) and (4B) and subject to subsection (4D), an authorized insurer is not liable for the act of the person
if—
(a)
the act is not within the scope of the person’s authority in relation to that insurer;
(b)
the person disclosed that the fact to the client before the client relied on the act; and
(c)
the clarity and prominence of the disclosure was what a person would reasonably require for deciding whether to enter into any dealing referred to in subsection
(1
)(
b)
.
(Added
12 of 2015 s. 76
)
(4D)
In considering a claim under this section, despite subsection (4C), the court may take into account any other factors relevant in the circumstances in determining whether an authorized insurer is liable for the act of the person.
(Added
12 of 2015 s. 76
)
(4E)
If a contract of insurance or an agency agreement contains a provision that is inconsistent with this section, that provision is void.
(Added
12 of 2015 s. 76
)
(5)
The liability of an authorized insurer under this section arises whether the person purports to act as a principal or as an agent for an undisclosed or disclosed principal.
(Amended
12 of 2015 s. 76
)
(6)
(Repealed
12 of 2015 s. 76
)