Insurance Order, 2006 · As enacted
78. (1)
Official textFrom Attorney General's Chambers, unchanged
Any person who -
fa} signs any document lodged with the Authority under section 59 or paragraph fa} of subsection (1) of section 69; or fb} furnishes the Authority with any information under or for the purposes of any other provision of this Order, shall use due care to secure that the document or information is not false in any material particular; and if he does not use due care in this behalf and the document or information is false in a material particular, he shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000, imprisonment for a term not exceeding 2 years or both.
Authority
"Authority" means such person as is appointed by His Majesty the Sultan and Yang Di-Pertuan under subsection 11) of section 4 to be the Authority for the purposes of this Order;
Any person who is in breach of any duty imposed on him by this Order as being or having been an insurer, insurance agent, insurance broker or adjuster shall, in a case where no other punishment is provided for by this Order, be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000, and in the case of a continuing offence to a further fine not exceeding $1,000 for every day during which the offence continues after conviction.
insurance agent
"insurance agent" means a person who does all or any of the following- {a} solicits or obtains a proposal for insurance on behalf of an insurer; 999 20th. MARCH, 2006 {b) offers or assumes to act on behalf of an insurer in negotiating a policy; {c) does any act on behalf of an insurer in relation to the issuance, renewal or continuance of a policy;
( 3)
Where an offence against this Order is committed by any body corporate, any person who at the time of the commission of that offence was a director, manager, secretary or other similar officer of that body, or who was purporting to act in any such capacity, shall, as well as the body corporate, be guilty of the offence unless he proves that he exercised all such diligence to prevent the commission of the offence as he ought to have exercised, having regard to the nature of his functions in that capacity and to all the circumstances.
commission
"commission" means an amount or a benefit in kind, whether expressed as a percentage of premium or not, agreed to be paid by an insurer to an insurance broker or insurance intermediary including introducer 1S fees;
Where an offence against this Order is committed by a body corporate, being an offence consisting in the breach of a duty imposed only on bodies corporate, any individual guilty of the offence (whether by virtue of subsection (3)
or otherwise) shall be liable on conviction to a fine, imprisonment for a term not exceeding one year or both.
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"Identification of officers.
77 A.
( 1) . Any per~on exercising any functions under this Order shall carry
~n a~thonty card 1n a form approved by the Authority which card shall 1denhfy the holder and his office and which shall be produced by the holder on demand to any person having reasonable grounds to make that demand.
Where any person exercising any functions under this Order produces. an a~tho~it_Y c~rd in a form. approved under subsection (1) or any other wntte.n Identification or authonty, then, until the contrary is proved, that authonty card or other written identification or authority shall be presumed to be genuine and he shall be presumed to be person referred to therein.
It shall not be an offence for any person to refuse to comply with an.y deman? or order made by any person exercising any functions under th1s c;>rder, 1f such latter person refuses on demand being made by such first-mentioned person to declare his office and to produce his authority card or other written identification or authority.".
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that life at the time the insurance is effected; and the policy moneys paid under such a policy shall not exceed the amount of that insurable interest at that time.
The lives excepted from subsection (1), besides that of the person effecting the insurance, are those of the person,s wife or husband, of the person 1s child or ward being the age of majority at the time the insurance is effected, and of anyone on whom that person is at that time wholly or partly dependent.
In so far as in the case of any life policy the policy moneys do not consist wholly of a cash payment due on the death in question, the limit under this section on the amount to be paid shall be applied by reference to the value of the right to the policy moneys immediately after the death or the happening before the death of any event on which they become payable.
In this section, "insuring the life" of a person means insuring the payment of money (or the equivalent) on the person 1s death or on the happening of any contingency dependent on the termination or continuance of that person's life, and includes granting an annuity to commence on that death or at a time to be determined by reference thereto or to any such contingency.
annuity
"annuity" means a right to a series of periodical payments at intervals of one year or less under a contract with a life insurer;
Capacity of infant to insure.
Terms defined in s 2
adjuster
Defined · s 2"adjuster" means any person who for compensation, feel commission or salary investigates and negotiates settlement of claims arising under insurance contracts, solely on behalf of either the insurer or the insured;
annuity
Defined · s 2"annuity" means a right to a series of periodical payments at intervals of one year or less under a contract with a life insurer;
Authority
Defined · s 2"Authority" means such person as is appointed by His Majesty the Sultan and Yang Di-Pertuan under subsection 11) of section 4 to be the Authority for the purposes of this Order;
commission
Defined · s 2"commission" means an amount or a benefit in kind, whether expressed as a percentage of premium or not, agreed to be paid by an insurer to an insurance broker or insurance intermediary including introducer 1S fees;
insurance agent
Defined · s 2"insurance agent" means a person who does all or any of the following- {a} solicits or obtains a proposal for insurance on behalf of an insurer; 999 20th. MARCH, 2006 {b) offers or assumes to act on behalf of an insurer in negotiating a policy; {c) does any act on behalf of an insurer in relation to the issuance, renewal or continuance of a policy;
insurance broker
Defined · s 2"insurance broker" means any company who, for compensation as an independent contractor, in any manner solicits, negotiates or procures insurance or the renewal or continuance thereof on behalf of an insured other than himself;