| (1) |
An insurer, subject to subreulations on (1A) to (4) and regulation 6.5, may have a binder agreement with one or more of the following persons only— |
| (a) |
a non-mandated intermediary; |
| (b) |
an underwriting manager; or |
| (c) |
an administrative FSP. |
| (1A) |
An insurer may only enter into a binder agreement with a person referred to in subregulation (1) if the outsourcing of a binder function to that person— |
| (a) |
is intended to promote the delivery of fair outcomes to customers; |
| (b) |
would not result in duplication of administrative efforts or costs for the insurer; and |
| (c) |
would not impede the insurer's ability to on an ongoing basis identify, assess, manage and report on the risks of poor customer outcomes potentially arising from the manner in which the insurer conducts its business. |
| (2) |
A non-mandated intermediary referred to under subregulation (1)(a) may not conduct any business with any mandated intermediary that is an associate of that non-mandated intermediary in relation to the same policy or policies of an insurer. |
| (3) |
An underwriting manager referred to under subregulation (1)(b) may not conduct any business with a mandated or non-mandated intermediary, or a representative of a mandated or non- mandated intermediary, or an administrative FSP that is an associate of that underwriting manager in relation to the same policy or policies of an insurer. |
(4)
| (a) |
An underwriting manager referred to under subregulation (1)(b) who is a binder holder of one insurer cannot also be a binder holder of other insurers in respect of the same class of policies defined in section 1 of the Act, unless all the relevant insurers have agreed thereto in writing. |
| (b) |
Paragraph (a) does not apply if an underwriting manager enters into a binder agreement with an insurer during a termination period referred to in regulation 6.3(1)(s) in respect of a binder agreement with another insurer and that underwriting manager may not perform any binder functions on behalf of that other insurer during that termination period. |
[Regulation 6.2 substituted by regulation 7(r) of Notice No. 1437 of 2017]
Special Investigating Units and Special Tribunals Act, 1996
