Plain language law

New Zealand law explained for everyone

Credit Contracts and Consumer Finance Act 2003

Enforcement and remedies - Pecuniary penalties

107E: Restriction on insurance

You could also call this:

"No insurance for law-breaking fines"

Illustration for Credit Contracts and Consumer Finance Act 2003

You cannot enter into an insurance contract that covers a person for a fine imposed under this Act. You also cannot enter into an insurance contract that covers a person's costs for defending themselves against a fine imposed under this Act. If you do enter into such a contract, it is considered void.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS301462.

This page was last updated on — View changes

Topics:
Crime and justice > Police and safetyMoney and consumer rights > Consumer protectionMoney and consumer rights > Insurance
Previous

107D: Restriction on indemnities, or

"You can't get out of paying a penalty if you break the law, no one can pay it for you."

Next

108: Power to order certain persons not to act as creditors, lessors, transferees, or buy-back promoters, or

"The Court can stop people from lending money or selling goods if they've done something wrong."

Part 4Enforcement and remedies
Pecuniary penalties

107ERestriction on insurance

  1. No person may enter into a contract of insurance that indemnifies or purports to indemnify a person (person A) in respect of—

  2. any pecuniary penalty imposed on person A under this Act; or
    1. any costs incurred by person A in defending any civil proceedings in which the pecuniary penalty referred to in paragraph (a) is imposed.

      1. Any contract that does so is void.

      Notes
      • Section 107E: inserted, on , by section 43 of the Credit Contracts Legislation Amendment Act 2019 (2019 No 81).