Commonwealth Consolidated Acts Commonwealth Consolidated Acts
1 Definitions
In this Schedule:
commencement means the commencement of the amendments of the Insurance Act 1973 made by Schedule 1.
new Act means the Insurance Act 1973 as in force immediately after the commencement.
old Act means the Insurance Act 1973 as in force immediately before the commencement.
transition period means the period starting on the commencement and ending 2 years after the commencement.
2 Early applications for authorisation to carry on insurance business
(1) For the purpose of allowing applications for an authorisation to carry on insurance business to be made and dealt with before the commencement:
(a) Division 2 of Part III of the new Act; and
(b) any other provisions of the new Act so far as they relate to making or dealing with such applications;
apply after this Act receives the Royal Assent as if those provisions had come into operation at that time.
(2) An authorisation given before the commencement takes effect on the day specified (in writing) by APRA. That day must not be before the commencement.
3 Early approvals of auditors and actuaries
(1) For the purpose of allowing a general insurer to appoint an auditor or actuary, and APRA to approve such an appointment, under the new Act before the commencement:
(a) Division 1 of Part IV of the new Act; and
(b) any other provisions of the new Act so far as they relate to such appointments;
apply after this Act receives the Royal Assent as if those provisions had come into operation at that time.
(2) An appointment made or approval given before the commencement takes effect on the day specified (in writing) by APRA. That day must not be before the commencement.
3A Effect of authority under old Act
(1) An authority to carry on insurance business granted to a body corporate under section 23 or 24 of the old Act ceases to be in force immediately after an authority is granted to the body corporate under section 12 of the new Act.
(2) However, subitem (1) is subject to any determination under item 4 in respect of the body corporate.
4 Application of the old Act during the transition period
(1) APRA may determine that all or specified provisions of the old Act continue to apply to a person or class of persons for a specified period during the transition period.
(2) The determination may include a different specified period in respect of:
(a) different provisions of the old Act; or
(b) different persons or classes of persons.
(3) The determination may be made subject to specified conditions.
(4) A copy of the determination must be published in the Gazette and, on Gazette publication, has effect according to its terms.
5 Application of the new Act during the transition period
(1) APRA may determine that all or specified provisions of the new Act do not apply to a person or class of persons for a specified period during the transition period.
(2) The determination may include a different specified period in respect of:
(a) different provisions of the new Act; or
(b) different persons or classes of persons.
(3) The determination may be made subject to specified conditions.
(4) A copy of the determination must be published in the Gazette and, on Gazette publication, has effect according to its terms.
6 Body corporate covered by both the old Act and the new Act
(1) This item applies if during the transition period:
(a) a body corporate:
(i) is authorised under the old Act to carry on insurance business; or
(ii) is a general insurer under the new Act; and
(b) the effect of determinations under items 4 and 5 is that provisions of both the old Act and the new Act apply to the body corporate.
(2) While the determinations have that effect:
(a) if the body corporate is not authorised under the old Act to carry on insurance business--it is taken to be so authorised for the purposes of the provisions of the old Act that apply to the body corporate; and
(b) if the body corporate is not a general insurer under the new Act--it is taken to be a general insurer for the purposes of the provisions of the new Act that apply to the body corporate.
7 Direction to assign liabilities
(1) This item applies to a body corporate if:
(a) during the transition period, the body corporate is authorised under the old Act to carry on insurance business because of a determination under item 4; and
(b) APRA considers it appropriate to vary or revoke the determination so that the body corporate will no longer be so authorised; and
(c) the body corporate is not a general insurer under the new Act; and
(d) the body corporate has liabilities in respect of insurance business carried on by it in Australia .
(2) This item also applies to a body corporate if:
(a) during the transition period, the body corporate is authorised under the old Act to carry on insurance business because of a determination under item 4; and
(b) as at 3 months before the end of the transition period, the body corporate is not a general insurer under the new Act; and
(c) the body corporate has liabilities in respect of insurance business carried on by it in Australia .
(3) Section 17 of the new Act (which allows APRA to direct the assignment of liabilities) is taken to apply to the body corporate as though:
(a) the body corporate's authorisation under the old Act to carry on insurance business were an authorisation under the new Act to carry on insurance business; and
(b) APRA considered that it would revoke the authorisation if the body corporate had no liabilities in respect of insurance business carried on by it in Australia .
8 Auditors may be taken to be appointed under the new Act
(1) APRA may determine (in writing) that a person who was, immediately before the commencement, acting in accordance with the old Act as a body corporate's auditor, is:
(a) on and after the commencement; or
(b) on and after a specified day during the transition period;
taken to have been appointed as the body corporate's auditor in accordance with section 39 of the new Act.
(2) APRA may only make the determination with the person's written agreement.
(3) APRA must give a copy of the determination to the person and the body corporate to which the person is taken to have been appointed.
9 Actuarial investigation under the old Act
If APRA has given a body corporate notice under subsection 48A(2) of the old Act, and a report under section 48A has not been given to APRA before the commencement, sections 48A and 48B of the old Act continue to apply to the body corporate on and after the commencement until the report is given to APRA.
10 Directions to deal with the transition
(1) For the purpose of dealing with the transition from the old Act to the new Act, APRA may give written directions during the transition period to:
(a) a person to whom some or all of the old Act continues to apply during the transition period because of a determination under item 4; or
(b) a person to whom some or all of the new Act does not apply during the transition period because of a determination under item 5; or
(c) a person to whom some or all of the new Act applies.
(2) A person to whom a direction is given under subitem (1) must comply with the direction within the time specified in the direction.
10A Application of the old and new Act to certain insurers after the end of the transition period
(1) Items 4, 5, 6, 7, 8, 9 and 10 continue to apply (with the modifications mentioned in subitem (2)) to a body corporate at a time after the end of the transition period if:
(a) the body corporate:
(i) is authorised under the old Act to carry on insurance business; or
(ii) is a general insurer under the new Act; and
(b) APRA is satisfied at that time that the body corporate is carrying on insurance business in Australia for the sole purpose of discharging liabilities that arose before the end of the transition period.
(2) Items 4, 5, 6, 7, 8, 9 and 10 continue to apply to the body corporate as if:
(a) a reference in those items to the transition period included a reference to times after the end of the transition period; and
(b) a reference in those items to a specified period included a reference to an indefinite period.
11 Regulations
The Governor - General may make regulations providing for matters of a transitional nature arising from the amendments made by Schedule 1 to this Act.