The Australian Securities and Investments Commission (ASIC) has reiterated its warning of last week that NSW policyholders with insurance arranged through Cootamundra Insurance Consultants and Insurance Made Easy should “check that their insurance premiums have been passed on”.

ASIC alleges that Christopher and Annette Richards – and their company C&A Richards which operates the two insurance businesses – do not have a licence as required by the Insurance (Agents and Brokers) Act and have failed to gain a licence under the financial services provisions of the Corporations Act.

New orders obtained by consent in the NSW Supreme Court permitted C&A Richards to “offer and arrange contracts of insurance” on behalf of Allianz Australia Insurance in accordance with its written agreement with the group.

Allianz entered into a written agency agreement with C&A Richards on August 19 and ASIC received the agreement from Allianz on August 28 – after the regulator obtained court orders restraining the operations of Mr and Mrs Richards and their company.

ASIC Director of Enforcement Allen Turton says “people who have paid premiums to Insurance Made Easy after 19 August 2003 should contact Allianz to confirm their insurance is in place”.

Cootamundra Insurance Consultants also has a written agency agreement with insurance broker Rural & General Insurance Broking – which according to ASIC “are brokers for Rural & General International Insurance, an unauthorised foreign insurer”. 

Court orders prevent Mr and Mrs Richards and C&A Richards from offering to arrange insurance on behalf of Rural & General and now Allianz except by reference to and in accordance with their written agency agreement.

The matter will return to court on September 15.