Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) In this Act, unless the contrary intention appears:
"accounting period" means:
(a) in relation to a company authorised under the Insurance Act 1973 to carry on insurance business--the company's financial year (within the meaning of that Act); or
(b) in relation to a company registered under section 21 of the Life Insurance Act 1995 --the company's financial year (within the meaning of that Act).
"acquisition" includes an agreement to acquire, but does not include:
(a) an acquisition by will or by devolution by operation of law; or
(b) an acquisition by way of enforcement of a security held solely for the purposes of a moneylending agreement.
"agreement" means any agreement, whether formal or informal and whether express or implied, but does not include a moneylending agreement.
"APRA" means the Australian Prudential Regulation Authority.
"arrangement" has the meaning given by section 6.
"asset" includes an interest in an asset.
"associate" has the meaning given by section 7.
"associate-inclusive control interest" has the meaning given by section 14.
"Australia" includes the external Territories.
"Australian general insurance industry" means so much of the Australian insurance industry as does not consist of the Australian life insurance industry.
"Australian-registered insurance company" means:
(a) a company authorised under the Insurance Act 1973 to carry on insurance business; or
(b) a company registered under section 21 of the Life Insurance Act 1995 ;
but does not include:
(c) a company any part of the activities of which consists of State banking not extending beyond the limits of the State concerned (within the meaning of paragraph 51(xiii) of the Constitution); or
(d) a company any part of the activities of which consists of State insurance not extending beyond the limits of the State concerned (within the meaning of paragraph 51(xiv) of the Constitution).
"book outstanding claims provision" , in relation to a company, in relation to a particular date, means:
(a) if the company was authorised under the Insurance Act 1973 to carry on insurance business at the end of the last accounting period of the company before that date--the company's outstanding claims liability (within the meaning of the prudential standards determined under that Act) as at the end of that accounting period; or
(b) in any other case--the company's outstanding claims provision as at that date.
"book unearned premiums provision" , in relation to a company, in relation to a particular date, means:
(a) if the company was authorised under the Insurance Act 1973 to carry on insurance business at the end of the last accounting period of the company before that date--the company's premiums liability (within the meaning of the prudential standards determined under that Act) as at the end of that accounting period; or
(b) in any other case--the company's unearned premiums provision as at that date.
"book value" , in relation to an asset held by a company at a particular time, means:
(a) if the company:
(i) was authorised under the Insurance Act 1973 to carry on insurance business; or
(ii) was registered under section 21 of the Life Insurance Act 1995 ;
at the end of the last accounting period of the company before that time--the value of the asset as at the end of that accounting period; or
(b) in any other case--the value of the asset as at that time.
"child" : without limiting who is a child of a person for the purposes of this Act, someone is the child of a person if he or she is a child of the person within the meaning of the Family Law Act 1975 .
"company" means a body corporate.
"constituent document" , in relation to a company, means:
(a) the memorandum and articles of association of the company; or
(b) any rules or other documents constituting the company or governing its activities.
"contract of insurance" includes a contract of life insurance and insurer has a corresponding meaning.
"contract of life insurance" means a life policy or sinking fund policy, within the meaning of the Life Insurance Act 1995 .
"direct control interest" has the meaning given by section 15.
"director" includes any person occupying the position of director of a company, by whatever name called.
"discretionary trust" means a trust where:
(a) a person (who may include the trustee) is empowered (either unconditionally or on the fulfilment of a condition) to exercise any power of appointment or other discretion; and
(b) the exercise of the power or discretion, or the failure to exercise the power or discretion, has the effect of determining, to any extent, either or both of the following:
(i) the identities of those who may benefit under the trust;
(ii) how beneficiaries are to benefit, as between themselves, under the trust.
"Federal Court" means the Federal Court of Australia.
"insurance business" has the same meaning as in the Insurance Act 1973 .
"interest in an asset" has the meaning given by section 10.
"interest in a share" has the meaning given by section 11.
"lending money" includes providing non - equity finance where the provision of the finance may reasonably be regarded as equivalent to lending money.
"life insurance business" has the same meaning as in the Life Insurance Act 1995 .
"moneylending agreement" means an agreement entered into in good faith in the ordinary course of carrying on a business of lending money, but does not include an agreement dealing with any matter unrelated to the carrying on of that business.
"non-arm's length arrangement" means an arrangement where the parties to the arrangement are not dealing with each other at arm's length in relation to the arrangement.
"non-arm's length transaction" means a transaction where the parties to the transaction are not dealing with each other at arm's length in relation to the transaction.
"officer" , in relation to a company, includes:
(a) a director, secretary or employee of the company; or
(b) a receiver and manager of any part of the undertaking of the company appointed under a power contained in any instrument; or
(c) a liquidator of the company appointed in a voluntary winding up.
"outstanding claims provision" , in relation to a company, means so much of the total provision for liabilities made in its accounts as consists of provision for claims, reduced by any allowance made in its accounts for reinsurance recoverables in respect of the claims.
"parent" : without limiting who is a parent of a person for the purposes of this Act, someone is the parent of a person if the person is his or her child because of the definition of child in this section.
"prudential conduct" , in relation to a company, means the conduct by the company of its affairs (whether or not relating to the insurance business or life insurance business of the company):
(a) in such a way as:
(i) to keep itself in a sound financial position; and
(ii) not to cause or promote instability in the Australian general insurance industry, in the Australian life insurance industry or in the Australian financial system; and
(b) with integrity, prudence and professional skill.
"relative" , in relation to a person, means:
(a) the person's spouse; or
(b) the person's de facto partner within the meaning of the Acts Interpretation Act 1901 ; or
(c) a parent or remoter lineal ancestor of the person; or
(d) a child or remoter issue of the person; or
(e) a brother or sister of the person.
Note: See also subsection (2).
"reviewable decision" means a decision of the Minister under Part 3 or 4 or paragraph 66(1)(b).
"share" , in relation to a company, means a share in the share capital of the company, and includes:
(a) stock into which any or all of the share capital of the company has been converted; or
(b) an interest in such a share or in such stock.
"total book net liabilities" , in relation to a company's contracts of life insurance, in relation to a particular date, means:
(a) if the company was registered under section 21 of the Life Insurance Act 1995 at the end of the last accounting period of the company before that date--the total net liabilities in respect of all of the company's contracts of life insurance as at the end of that accounting period; or
(b) in any other case--the total net liabilities in respect of all of the company's contracts of life insurance as at that date.
"unearned premiums provision" , in relation to a company, means so much of the total provision for liabilities made in its accounts as consists of provision for unearned premiums.
"value" of an asset of a company at a particular time means the amount that, if:
(a) an accounting period of the company had ended at that time; and
(b) the company had, under the Financial Sector (Collection of Data) Act 2001 , given to APRA copies of financial statements for, or as at the end of, that accounting period; and
(c) the financial statements had been prepared in accordance with applicable accounting principles;
would have been shown in those statements as the value of the asset at that time.
"voting power" has the meaning given by section 13.
(2) For the purposes of paragraphs (c), (d) and (e) of the definition of relative in subsection (1), if one person is the child of another person because of the definition of child in that subsection, relationships traced to or through the person are to be determined on the basis that the person is the child of the other person.