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Part 3Levy
Levy on insured property

87Circumstances where policyholder or insurance intermediary must pay levy to FENZ

  1. This section applies in relation to a contract of insurance between a policyholder and a person that is liable as the insurer under the contract where the person that is liable as the insurer—

  2. does not carry on business in New Zealand (within the meaning of section 332 of the Companies Act 1993); or
    1. does not carry on insurance business in New Zealand; or
      1. does not hold a licence (within the meaning of section 6(1) of the Insurance (Prudential Supervision) Act 2010).
        1. On entering into a contract of insurance to which this section applies, the policyholder becomes liable to pay the levy to FENZ.

        2. However, if an insurance intermediary carrying on business in New Zealand directly or indirectly negotiates a contract of insurance to which this section applies,—

        3. that insurance intermediary (and not the policyholder) becomes liable to pay the levy to FENZ; and
          1. sections 89 to 91 apply, with any necessary modifications, to the insurance intermediary as if the insurance intermediary were the insurer.
            1. The levy payable by a policyholder described in subsection (2) is a debt due by the policyholder to FENZ and is recoverable by FENZ.

            2. A contract referred to in subsection (1) is to be treated as being governed by New Zealand law for the purposes of this Part.

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