(1) Where a premium is paid to an insurance intermediary in respect of a renewal of a policy which has been invited by an insurance undertaking, or in respect of a proposal accepted by an undertaking, the premium shall be treated as having been paid to the insurance undertaking when it is paid to the insurance intermediary.
(2) Nothing in this section shall render an insurance undertaking liable for a premium paid to an intermediary in respect of a proposal accepted by an insurance undertaking or a renewal of a policy which has been invited by the insurance undertaking, where the insurance undertaking has given reasonable notice in writing to the person whose proposal has been accepted or whose policy is being renewed, that the intermediary has no authority to collect such premiums on behalf of the insurance undertaking.