Originally posted by eagle2
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Can a payment of commission be classed as a bribe under the Act? In situations where a party has a conflict of interest and accepts a commission on the basis that he or she will improperly direct more business to a party, yes it can. An example of this could arise where an insurer and a broker have entered into a contingent commission agreement on the understanding that the broker will direct business to the insurer. If as a consequence a broker improperly performs his duties by placing business with that insurer instead of other more suitable insurers, he could have arguably been bribed under the Act.
In contrast to English agency law, disclosure of a commission is not a defence under the Act. In fact, disclosure of a commission could result in the admission of an offence. Insurers and brokers need to be mindful of not only the conduct of their own staff but also the conduct of any agents or other representatives that carry on or arrange business on their behalf.
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