Which legislation governs the conduct of brokers regarding their duty of care?

The legislation that governs the conduct of brokers regarding their duty of care primarily involves the frameworks established by the Insurance Contracts Act 1984 and the Life Insurance Act 1995.

The Insurance Contracts Act 1984 lays out the duties of insurers and brokers in relation to their obligations to provide clear and comprehensive information, ensuring that the contracts they enter into are fair and transparent. This act places an obligation on brokers to act in the best interest of their clients and to provide advice that reflects a reasonable standard of care and skill.

Similarly, the Life Insurance Act 1995 imposes specific duties on life insurance brokers in dealing with consumers. It emphasizes the need for brokers to act fairly, ensuring that consumers are protected and informed. The conduct outlined in this act affects how brokers should approach their duty of care to clients, particularly in the context of life insurance products.

Together, these two acts create a comprehensive legal framework that defines the standard of care required from brokers, ensuring they engage in ethical practices and uphold the trust placed in them by their clients. Therefore, both the Insurance Contracts Act 1984 and the Life Insurance Act 1995 are essential in understanding the responsibilities of brokers regarding their duty of care.