Section 34: Consequences of conflict of interest

34. Consequences of conflict of interest (1) Notwithstanding sections 32 and 33, and subject to subsection (2), a contract between an insurer and one or more of its officers, or between an insurer and another entity of which an officer of the insurer is a director or an officer or between an insurer and a person in which the officer has a material interest, shall not be void— (a) by reason only of that relationship; or (b) by reason only that a director with an interest in the contract is present at or is counted to determine the presence of a quorum at the meeting of directors or the committee of directors that authorised the contract. (2) A contract referred to in subsection (1) shall not be void except where— (a) the officer has failed to disclose his interest; I15 – 29 [Issue 1] Insurance Act (b) the contract was not approved by the directors, or specifically authorised by virtue of section 146 of the Companies Act; or (c) it was not in the interest of the insurer at the time it was approved.