Commonwealth Consolidated Acts

INSURANCE ACT 1973

TABLE OF PROVISIONS

           Long Title

   PART I--PRELIMINARY

   1.      Short title  
   2.      Commencement  
   2A.     Main objects of this Act  
   3.      Interpretation  
   3A.     Certain insurance contracts not taken to be insurance business  
   4.      Meaning of subsidiary  
   4A.     Meaning of relevant group of bodies corporate  
   4B.     Determining whether bodies corporate are related to one another  
   5.      Application of Act  
   6.      Act extends to external Territories  
   7.      Determination that certain provisions do not apply  
   7A.     Breach of condition of a determination  

   PART II--ADMINISTRATION

   8.      General administration of Act  

   PART III--AUTHORISATION--TO CARRY ON INSURANCE BUSINESS

           Division 1--Need to be authorised

   9.      Persons other than bodies corporate and Lloyd's underwriters carrying on insurance business  
   10.     Bodies corporate and Lloyd's underwriters carrying on insurance business  
   11.     Meaning of general insurer  
   11A.    Injunctions  

           Division 2--Authorisation to carry on insurance business

   12.     Obtaining an authorisation  
   13.     Conditions on an authorisation  
   14.     Breach of authorisation conditions  

           Division 3--Revocation of an authorisation

   15.     Revocation of authorisation etc.  
   16.     When APRA must revoke a general insurer's authorisation  
   16A.    Continuation of effect of general insurer's authorisation  
   17.     Assignment of liabilities to enable revocation  

           Division 3A--Transfer and amalgamation of insurance business

   17A.    Interpretation  
   17B.    Transfer or amalgamation of insurance business  
   17C.    Steps to be taken before application for confirmation  
   17D.    Actuarial report on scheme  
   17E.    Application to Court  
   17F.    Confirmation of scheme  
   17G.    Effect of confirmation etc.  
   17H.    Costs of actuary's report  
   17I.    Documents to be lodged in case of transfer or amalgamation  

           Division 4--Authorisation to be a NOHC of a general insurer

   18.     Authorisation to be a NOHC  
   19.     Conditions on a NOHC authorisation  
   20.     Breach of conditions on a NOHC authorisation  
   21.     When APRA may revoke a NOHC authorisation  
   22.     When APRA must revoke a NOHC authorisation  
   22A.    Continuation of effect of body corporate's NOHC authorisation  
   23.     Publication of list of authorised NOHCs  
   23A.    APRA may give notice to ensure that general insurer has an authorised NOHC  

           Division 5--Directors, senior managers and other representatives of general insurers and authorised NOHCs

   24.     Disqualified persons must not act for general insurers or authorised NOHCs  
   25.     Who is a disqualified person ?  
   25A.    Court power of disqualification  
   26.     Court power to revoke or vary a disqualification etc.  
   26A.    Privilege against exposure to penalty--disqualification under section 25A or 44  
   27.     APRA may remove a director or senior manager of a general insurer, authorised NOHC or corporate agent  

           Division 6--Other matters

   28.     General insurer must hold sufficient assets  
   28A.    Commencement and cessation of insurance business  
   29.     Change of name of a general insurer or authorised NOHC  
   30.     General insurer or authorised NOHC ceasing to exist  
   31.     Effect of authorisation as a general insurer  

   PART IIIA--PRUDENTIAL--SUPERVISION AND MONITORING OF GENERAL INSURERS, AUTHORISED NOHCS AND THEIR SUBSIDIARIES

           Division 1--The prudential standards

   32.     APRA may determine prudential standards  
   34.     Notification of prudential standards  
   35.     Obligation to comply with the prudential standards  

           Division 2--Conversion and write-off provisions

   36A.    Definitions  
   36B.    Conversion and write - off provisions  
   36C.    Conversion or write - off etc. not grounds for denial of obligations  

           Division 3--Monitoring of prudential matters

   38.     APRA to monitor prudential matters  
   38AA.   Requirement to notify APRA of certain matters  

           Division 4--Protections in relation to information

   38F.    Self - incrimination  

   PART IV--AUDITORS--, ACTUARIES AND ACCOUNTS

           Division 1--The auditors and actuary of a general insurer

   39.     Requirement for general insurers to have an auditor and actuary  
   40.     Additional auditors  
   41.     Compliance with prudential standards  
   43.     When a person stops holding an appointment  
   43A.    Disqualified persons must not act as auditor or actuary of general insurer  
   44.     Court power of disqualification  
   45.     Court power to revoke or vary a disqualification etc.  
   46.     Notification of appointment as an auditor or actuary  
   48.     Referring matters to professional associations for auditors and actuaries  

           Division 2--Provision of information to APRA

   49.     Duty of auditors and actuaries to give information when required  
   49A.    Additional duty of auditors and actuaries to give information  
   49B.    Auditor or actuary may give information to APRA  
   49D.    Auditor must notify APRA of attempts to unduly influence etc. the auditor  
   49DA.   Giving false or misleading information to auditor  

           Division 3--Actuarial investigation required by APRA

   49E.    Actuarial investigation of liabilities  
   49F.    Offence for contravening section 49E  
   49G.    Who can be appointed as a section 49E actuary  
   49H.    Delegate's decision to extend time for providing actuary's report  

           Division 4--Role of auditor and actuary of a general insurer

   49J.    Auditor's role  
   49K.    Actuary's role  
   49L.    Lodgment of auditor's certificate and actuary's reports  

           Division 5--Accounts

   49Q.    Keeping of accounting records  

           Division 6--Removal of auditors and actuaries

   49R.    APRA may direct removal of auditor or actuary  

   PART V--INVESTIGATIONS--OF GENERAL INSURERS ETC.

   50.     Interpretation  
   52.     Investigation of general insurer, authorised NOHC or subsidiary by APRA or inspector  
   54.     Entry on premises  
   55.     Powers of APRA or inspector  
   56.     Persons to comply with requirements of APRA or the inspector  
   57.     Person may be represented by a legal practitioner  
   58.     Notes of examination of person  
   59.     Delegation  
   60.     Report of APRA or the inspector  
   61.     Offences  

   PART VA--INVESTIGATIONS--OF UNAUTHORISED INSURANCE

   62A.    Investigations relating to contraventions of section 9 or 10 etc.  
   62B.    Access to premises  
   62C.    Powers of APRA or inspector  
   62D.    Persons to comply with requirements of APRA or the inspector  
   62E.    Person may be represented by a legal practitioner  
   62F.    Notes of examination of person  
   62G.    Delegation  
   62H.    Investigations to be completed within a reasonable time  
   62J.    Report of the inspector  

   PART VB--JUDICIAL--MANAGEMENT, STATUTORY MANAGEMENT, OTHER EXTERNAL ADMINISTRATION AND WINDING UP

           Division 1--Judicial management of general insurers

   62K.    Application for order for judicial management  
   62L.    Order for judicial management after investigation  
   62M.    Order for judicial management on other grounds  
   62N.    Commencement of judicial management  
   62P.    Moratorium--effect of judicial management on court and tribunal proceedings  
   62PA.   Moratorium--effect of judicial management on enforcement process regarding property  
   62PB.   Moratorium--effect of judicial management on disposal of property  
   62PC.   Moratorium--Restrictions on exercise of third party property rights  
   62PD.   Moratorium--effect of judicial management on supply of essential services  
   62PE.   Moratorium--effect of judicial management on annual general meeting  
   62R.    Appointment of judicial manager  
   62S.    Remuneration of judicial manager  
   62T.    Effect of judicial management on powers of officers etc.  
   62U.    Effect on external administrator of judicial manager managing general insurer  
   62V.    Judicial management not ground for denial of obligations  
   62W.    Continued application of other Parts of Act  
   62X.    Federal Court's control of judicial manager  
   62Y.    Powers of judicial manager  
   62Z.    Judicial manager's additional powers to facilitate recapitalisation  
   62ZA.   Considering report before acting under section 62Z  
   62ZB.   Act under section 62Z not ground for denial of obligations  
   62ZC.   Application by APRA for instructions to judicial manager  
   62ZD.   Request by APRA for information  
   62ZE.   Duration of judicial management  
   62ZF.   Cancellation of judicial management  
   62ZG.   How judicial manager is to manage  
   62ZH.   Disclaimer of onerous property  
   62ZI.   Report by judicial manager  
   62ZJ.   Order of Federal Court on report of judicial manager  
   62ZK.   Transfer of business to another general insurer  
   62ZL.   Resignation  
   62ZM.   Immunity  
   62ZN.   Exceptions to Part IV of the Competition and Consumer Act 2010  

           Division 1A--Statutory management of general insurers

              Subdivision A--General provisions relating to statutory management

   62ZOA.  Consequences of inability or failure of general insurer etc. to meet certain requirements  
   62ZOB.  Start of control of body corporate's business by Insurance Act statutory manager  
   62ZOC.  Insurance Act statutory managers--termination of control  

              Subdivision B--Provisions dealing with control of a body corporate's business by an Insurance Act statutory manager

   62ZOD.  Insurance Act statutory manager's powers and functions  
   62ZOE.  Safeguards on exercise of Insurance Act statutory manager's powers and functions  
   62ZOF.  Insurance Act statutory manager's additional powers to facilitate recapitalisation  
   62ZOG.  Considering report before acting under section 62ZOF  
   62ZOH.  Act under section 62ZOF not ground for denying obligation  
   62ZOI.  APRA may require a person to give information etc. for the purposes of this Division  
   62ZOJ.  Administrator in control--additional powers to recommend action by APRA  
   62ZOK.  Insurance Act statutory manager's liabilities and duties  
   62ZOL.  Transaction by Insurance Act statutory manager not voidable under section 588FE of the Corporations Act 2001  
   62ZOM.  Administrator in control--additional duties  
   62ZON.  Administrator in control--additional duties where action may affect financial system stability in Australia  
   62ZOO.  Termination of Insurance Act statutory manager's appointment  
   62ZOP.  Effect on directors of Insurance Act statutory manager taking control of a body corporate's business  
   62ZOQ.  Effect on external administrator of Insurance Act statutory manager taking control of a body corporate's business  
   62ZOR.  Moratorium--effect of Insurance Act statutory management on court and tribunal proceedings  
   62ZOS.  Moratorium--effect of Insurance Act statutory management on enforcement process regarding property  
   62ZOT.  Moratorium--effect of Insurance Act statutory management on disposal of property  
   62ZOU.  Moratorium--Restrictions on exercise of third party property rights  
   62ZOV.  Moratorium--effect of Insurance Act statutory management on supply of essential services  
   62ZOW.  Moratorium--effect of Insurance Act statutory management on annual general meeting  
   62ZOX.  Insurance Act statutory manager being in control not grounds for denial of obligations  
   62ZOY.  Application of other provisions  
   62ZOZ.  Costs of statutory management  
   62ZOZA. APRA must report to Minister and publish information about statutory management  
   62ZOZB. Exceptions to Part IV of the Competition and Consumer Act 2010  

           Division 2--Extra provisions relating to external administration of general insurers

   62ZP.   Relationship of this Division with Chapter 5 of, and Schedule 2 to, the Corporations Act 2001  
   62ZQ.   Involving APRA in proposed appointment of external administrators of general insurers and NOHCs  
   62ZR.   Involving APRA in applications by liquidator  
   62ZS.   Application by APRA for directions  
   62ZT.   APRA may request information from liquidator  

           Division 3--Extra provisions for winding up general insurers

   62ZU.   Order to wind up general insurer on APRA's application  
   62ZV.   Relationship with the Corporations Act 2001  

           Division 4--Special provisions relating to foreign general insurers

   62ZVA.  Limited application of Divisions 1, 1A and 2 to foreign general insurers  

   PART VC--FINANCIAL--CLAIMS SCHEME FOR POLICYHOLDERS WITH INSOLVENT GENERAL INSURERS

           Division 1--Preliminary

   62ZW.   Purpose of this Part  
   62ZX.   APRA's functions relating to this Part  
   62ZY.   Determination that policies are not protected policies  
   62ZZ.   Determination that persons do not have entitlements  
   62ZZA.  Allowing extra time for claims  

           Division 2--Declaration of general insurer

   62ZZC.  Declaration that Division 3 applies in relation to general insurer  
   62ZZD.  Advice and information for decision on making declaration  
   62ZZE.  APRA may advise Minister of its belief of insolvency  

           Division 3--Early payment of claims

   62ZZF.  Entitlement to payment of claimant under protected policy  
   62ZZFA. Interim claims and payments for section 62ZZF entitlements  
   62ZZG.  Entitlement to payment of third party  
   62ZZGA. Interim claims and payments for section 62ZZG entitlements  
   62ZZH.  Entitlement on basis of notionally extended cover  
   62ZZI.  APRA must determine insurer's liability in respect of claim  
   62ZZJ.  Determinations APRA must make on application  
   62ZZK.  Payment  
   62ZZKA. Giving information about payments in a financial year  
   62ZZL.  Substitution of APRA as insurer's creditor  
   62ZZM.  Meeting of entitlement taken to be payment by insurer  
   62ZZMA. APRA may make transferred liabilities determination where transfer of business  
   62ZZMB. Payment amounts under transferred liabilities determination  
   62ZZMC. Consequences of transferred liabilities determination once certificate of transfer issued  
   62ZZMD. Certain provisions do not apply in relation to entitlement of receiving body as a result of transferred liabilities determination  

           Division 4--Administration

   62ZZN.  APRA to try to ensure awareness of making of claims  
   62ZZO.  Requiring assistance  
   62ZZP.  Obtaining information relevant to determining and paying entitlements  
   62ZZQ.  Enforcing requirement to give information  
   62ZZR.  Obtaining further information from claimant or applicant  
   62ZZS.  Recovery of overpayments  
   62ZZT.  APRA may delegate functions and powers under this Part  
   62ZZU.  APRA's costs of administration  

           Division 5--Exceptions to Part IV of the Competition and Consumer Act 2010

   62ZZV.  Exceptions to Part IV of the Competition and Consumer Act 2010  

   PART VI--REVIEW--OF DECISIONS

   63.     Review of certain decisions  
   64.     Statements to accompany notification of decisions  

   PART VII--LLOYD----

           Division 1--Preliminary

   65.     Simplified outline  
   66.     Definitions  

           Division 2--Security trust fund arrangements

   67.     Security trust funds  
   68.     Security trust fund arrangements  
   69.     Designated security trust funds  
   70.     Rules about designated security trust funds  
   71.     Transfers to trustee of security trust fund--presumption of regularity  
   72.     When security trust fund constitutes an adequate security for the class of insurance liabilities secured by the fund  
   73.     Affairs of security trust fund  

           Division 3--General powers of APRA

   74.     APRA may direct that Lloyd's underwriters must not issue or renew policies  
   75.     Actuarial investigation of adequacy of security provided by designated security trust funds  
   76.     Provision for liabilities in the accounts of designated security trust funds  

           Division 4--Investigations

              Subdivision A--Inquiries and directions by APRA

   77.     Inquiries by APRA  
   78.     Direction not to deal with certain assets  

              Subdivision B--Investigations

   79.     Investigation of designated security trust fund by APRA or inspector  
   80.     Entry on premises  
   81.     Powers of APRA or the inspector to obtain information etc.  
   82.     Persons to comply with requirements of APRA or the inspector  
   83.     Person may be represented by a legal practitioner  
   84.     Notes of examination of person  
   85.     Delegation  
   86.     Report of APRA or the inspector  

              Subdivision C--Offences

   87.     Offences  

           Division 5--Judicial trusteeship of designated security trust funds

   88.     Application for order for judicial trusteeship  
   89.     Grounds for order for judicial trusteeship  
   90.     Commencement of judicial trusteeship  
   91.     Stay of proceedings during judicial trusteeship  
   92.     Appointment of judicial trustee  
   92A.    Terms and conditions of appointment of judicial trustee  
   92B.    Property vesting orders  
   92C.    Powers of judicial trustee  
   92D.    Court's control of judicial trustee  
   92E.    Direction not to deal with certain assets  
   92F.    Provision for liabilities in the accounts of designated security trust funds  
   92G.    Application by APRA for instructions to judicial trustee  
   92H.    Request by APRA for information  
   92J.    Duration of judicial trusteeship  
   92K.    Cancellation of judicial trusteeship  
   92L.    Report by judicial trustee  
   92M.    Judicial trustee may formulate a scheme for the winding - up or dissolution, or both, of a designated security trust fund  
   92N.    Resignation  
   92P.    Indemnity  
   92Q.    Security deposit  
   92R.    Application of security deposit--costs of judicial trusteeship of designated security trust fund  
   92S.    Return of security deposit  

           Division 6--Authorisation of Lloyd's underwriters

   93.     Lloyd's underwriters  

           Division 7--Miscellaneous

   94.     Trustee of designated security trust fund not to be treated as carrying on insurance business  
   94A.    Injunctions  
   95.     Agent of Lloyd's  
   96.      Address for service  
   97.     Lloyd's to give notice of by - laws  
   98.     Part does not authorise Lloyd's underwriter to carry on any business the underwriter could not otherwise have carried on  

   PART VIII--EFFECT--OF ACT ON OTHER LAWS

   99.     Operation of State and Territory laws on section 10  
   100.    Act not to affect certain State and Territory laws  
   102.    Laws about accounts or accounting records  
   103.    Parts V and VA not to affect operation of certain laws  

   PART IX--DIRECTIONS

           Division 1--Recapitalisation directions

   103A.   Who this Division applies to  
   103B.   Recapitalisation direction by APRA  
   103C.   Additional contents of a recapitalisation direction  
   103D.   Compliance with a recapitalisation direction  
   103E.   APRA must obtain expert's report on the fair value of shares etc.  
   103F.   Determination of the fair value of shares by an expert  
   103G.   Determination of the fair value of rights by an expert  
   103H.   Ascertaining the fair value of other capital instruments  
   103J.   Contravention of certain provisions does not affect the validity of recapitalisation direction etc.  
   103K.   Recapitalisation direction not grounds for denial of obligations  
   103L.   Supply of information about issue and revocation of recapitalisation directions  
   103M.   Non - compliance with a recapitalisation direction  
   103N.   Exceptions to Part IV of the Competition and Consumer Act 2010  

           Division 2--Other directions

   104.    APRA may give directions in certain circumstances  
   105.    Direction not grounds for denial of obligations  
   106.    Supply of information about issue and revocation of directions  
   108.    Non - compliance with a direction  

           Division 3--Secrecy and disclosure provisions relating to all directions

   109.    APRA may determine that a direction is covered by secrecy provision  
   109A.   Secrecy relating to directions  
   109B.   Disclosure of publicly available information  
   109C.   Disclosure allowed by APRA  
   109D.   Disclosure to legal representative for purpose of seeking legal advice  
   109E.   Disclosure allowed by APRA Act secrecy provision  
   109F.   Disclosure in circumstances set out in the regulations  
   109G.   Disclosure for purpose  
   109H.   Exceptions operate independently  

   PART X--MISCELLANEOUS

   114.    Use of words "insurance" and "insurer"  
   115.    Power to require production of information, books, accounts or documents  
   115AA.  Information relating to contraventions of section 9 or 10 etc.  
   115AB.  Persons to comply with requirements of APRA or authorised person  
   115A.   Access to premises  
   116.    General insurer not to carry on insurance business after start of winding up  
   116A.   Assets and liabilities in Australia  
   117.    Address for service in Australia  
   118.    Agent in Australia  
   120.    Saving if section 93 ceases to have effect  
   121.    Service of documents and notices  
   122.    Register to be kept  
   124.    Evidence and judicial notice  
   125.    APRA Act secrecy provisions apply  
   126.    Acceptance and enforcement of undertakings  
   127.    Severability  
   127A.   Compensation for acquisition of property  
   127B.   Protection from liability--general  
   127C.   Protection from liability--directions and secrecy  
   127D.   Protection from liability--provisions do not limit each other  
   127E.   Act has effect despite the Corporations Act  
   127F.   Civil penalty for contravening section 8A of the Terrorism and Cyclone Insurance Act 2003  
   128.    Signing of documents  
   128A.   Continuing offences  
   129.    Time for bringing proceedings  
   129AA.  Institution of offence proceedings no bar to judicial management or winding up  
   129A.   Joinder of charges and penalties for certain offences  
   129D.   Injunctions  
   129E.   Civil penalties  
   130.    Preparation of forms  
   131.    Costs of investigations  
   131A.   Authorising contracts etc. for protecting policyholders' interests and financial system stability  
   131B.   Borrowing funds for payments under authorised contracts etc.  
   132.    Regulations  
           SCHEDULE 1 Civil penalties