Insurance Act No.54 of 2005 - Vanuatu Financial Services ...

(d)requires the intermediary to disclose to the prospective policyholder, beforeentering into a policy on the insurer’s behalf, the insurer’s name and the fact thatthe intermediary is acting under the agreement.(3) An insurer is liable under an insurance policy entered into or issued, or purporting to havebeen entered into or issued, on its behalf by an intermediary who acted outside theauthority given to him or her by the insurer if the person purchasing the policy hasreasonable grounds to believe that the intermediary acted within the authority given to itby the insurer.81 Withdrawal of an independent insurance salesperson’s authority toact for the insurerIf an insurer becomes aware that an independent insurance salesperson used by theinsurer fails to comply with paragraph 79 (2)(a), the insurer must as soon as practicable:(a)(b)(c)(d)withdraw the authority given to the salesperson; andensure that the salesperson no longer acts for the insurer; andremove the salesperson’s name from the insurer’s list of salespersons kept undersection 79; andinform the Commission in writing that the salesperson’s authority has beenwithdrawn.82 Personal liability of intermediariesAn insurance agent, insurance broker or other intermediary is personally liable to the insuredperson, as if he or she was the insurer, on all policies unlawfully issued by or through the agent,broker or other intermediary directly or indirectly with an insurer that is not licensed to carry ondomestic insurance business under this Act.60