Section 35: Duties of insurer and agents interse.

(1) An insurer who employs the services of an insurance agent and every person who acts for an insurer in that behalf shall maintain a register showing the name and address of every insurance agent and the date on which his services were employed and, where applicable, terminated.
(2) Where an insurance business is transacted through an insurance agent, the agent shall immediately pay to the insurer any premium collected by him.
(3) An insurance agent who contravenes subsection (2) of this section commits an offence and is liable on conviction for-
(a) a first offence, to a fine of N10,000 or imprisonment for a term of six months;
(b) a second offence, to a fine of N50,000 or to imprisonment for a term of one year; and
(c) a third offence, to a fine of N100,000 or to imprisonment for a term of 3 years or to both such fine and imprisonment and in addition he shall be disqualified from being appointed again as an insurance agent.
(4) A person who transacts business as an insurance agent without having been duly appointed commits an offence and is liable on conviction to a fine of N100,000 or to imprisonment for a term of 3 years or to both such fine and imprisonment, and in addition, the Court may make an order requiring the person to refund any sums collected by him, while so transacting the business, to the rightful owners or other persons entitled thereto.
(5) An insurer who knowingly or recklessly transact any insurance business with any person mentioned in subsection (4) of this section commits an offence and is liable on conviction to a fine of N100,000 and the Court may make such additional order as to the refunds of the sums involved as specified under subsection (4) of this section.