(1) An insurance intermediary shall not act in relation to a policy of an insurance to be effected by or with an insurer that does not hold a licence issued under section 38 or that has not been suspended, unless the insurer is an offshore.

(2) Subsection (1) does not apply where the insurance intermediary is acting in relation to a policy of reinsurance that, under this Act or the Regulation, is permitted to be effected with an offshore insurer.