Settlement Agents Act 1981

The Commissioner may, from time to time, make arrangements for or in respect of the provision to licensees of fidelity insurance and professional indemnity insurance on such terms and conditions as the Commissioner thinks fit and, for that purpose, may, from time to time, enter into a Master Policy Agreement with an insurer appointed by the Commissioner and do all such acts or things that the Commissioner deems necessary or expedient for giving effect thereto.

An arrangement in terms of subsection (1) may include provision with respect to any one or more of the following matters —

the terms and conditions of the fidelity insurance and professional indemnity insurance; and

subject to subsection (3), the amount or amounts of insurance cover to be provided; and

the amount or amounts payable by way of premiums; and

the period during which the insurance is to be provided; and

the issue of certificates of insurance to licensees and the form of those certificates; and

any other matters in connection with the fidelity insurance and professional indemnity insurance.

The minimum insurance cover for each agent under a policy effected in accordance with subsection (1) for fidelity insurance and professional indemnity insurance shall be the sum of $250 000 for each claim.

The Commissioner may, from time to time, negotiate such rescission or variation of the arrangement referred to in subsection (1) as the Commissioner considers necessary or expedient.

Where the Commissioner has entered into a Master Policy Agreement in accordance with subsection (1) the Commissioner shall, by notice published in the Government Gazette, advertise the fact that a policy has been effected under this section and of the details of the policy and thereupon the provisions of this section apply for so long as that Agreement remains in force.

If the provisions of this section apply, a licensee who is the holder of a triennial certificate must —

remain insured under the Master Policy Agreement during the currency of the triennial certificate; and

hold a current certificate of insurance; and

produce to the Commissioner —

the first certificate of insurance held by the licensee; and

if a certificate of insurance held by the licensee ceases to be of full force and effect — a replacement certificate of insurance;

pay all premiums payable by the licensee under the Master Policy Agreement and certificate of insurance; and

comply with the provisions of the Master Policy Agreement and certificate of insurance that apply to the licensee.

A licensee who does not comply with an obligation under subsection (6)(b) or (c) is taken not to be the holder of a triennial certificate until the licensee complies with the obligation.

Nothing in this section affects the right of a settlement agent to take out additional fidelity insurance or professional indemnity insurance.