Section 41: Payment of premium to insurer.

(1) Where an insurance business is transacted through an insurance broker, the insurance broker shall, not later than 30 days of collecting the premium paid to the insurers collected by him.
(2) An insurance broker who contravenes the provisions of subsection (1) of this section commits an offence and liable on a conviction as-
(a) a first offence, to a fine of N10,000 or 5 times the value of the premium whichever is greater;
(b) a second offence, to a fine of N25,000 or to 10 times the value of the premium whichever is greater; or
(c) a third offence, to a fine of N250,000 and in addition, the certificate of the insurance broker shall be called and the persons or in the case of a firm, the persons constituting the firm or directors of the company shall be disqualified from being again involved in the setting up of the business of insurance brokage under this Act either by himself or themselves or in conjunction with any other persons or body.
(3) An external auditor who audits the accounts of an insurance broker shall at the conclusion of each audit issue a certificate that all premiums collected by the insurance broker have been paid to the insurer with whom he transacted business during the year.
(4) Failure by an insurance broker to pay an insurer any premium collected under subsection (1) of this section may constitute a ground for the cancellation of registration of the insurance broker.
(5) False declaration by the insurance broker of its income or remittance of premiums collected shall constitute a ground for the cancellation of the registration.