Commonwealth Consolidated Acts

LIFE INSURANCE ACT 1995 - SECT 230AL

  (1)   A life company commits an offence if:

  (a)   the company does, or refuses or fails to do, an act; and

  (b)   doing, or refusing or failing to do, the act results in a contravention of a recapitalisation direction given to the company.

Penalty:   50 penalty units.

  (2)   However, subsection   (1) does not apply if:

  (a)   the company made reasonable efforts to comply with the recapitalisation direction; and

  (b)   the company's contravention is due to circumstances beyond the company's control.

Note:   A defendant bears an evidential burden in relation to the matter in subsection   (2) (see subsection   13.3(3) of the Criminal Code ).

  (3)   If a life company does, or refuses or fails to do, an act in circumstances that give rise to the company committing an offence against subsection   (1), the company commits an offence against that subsection in respect of:

  (a)   the first day on which the offence is committed; and

  (b)   each subsequent day (if any) on which the circumstances that gave rise to the company committing the offence continue (including the day of conviction for any such offence or any later day).

Note:   This subsection is not intended to imply that section   4K of the Crimes Act 1914 does not apply to offences against this Act or the regulations.

  (4)   An officer of a life company commits an offence if:

  (a)   the officer refuses or fails to take reasonable steps to ensure that the company complies with a recapitalisation direction given to the company; and

  (b)   the officer's duties include ensuring that the company complies with the direction, or with a class of directions that includes the direction.

Penalty:   50 penalty units.

  (5)   If an officer of a life company refuses or fails to take reasonable steps to ensure that the company complies with a recapitalisation direction given to the company in circumstances that give rise to the officer committing an offence against subsection   (4), the officer commits an offence against that subsection in respect of:

  (a)   the first day on which the offence is committed; and

  (b)   each subsequent day (if any) on which the circumstances that gave rise to the officer committing the offence continue (including the day of conviction for any such offence or any later day).

Note:   This subsection is not intended to imply that section   4K of the Crimes Act 1914 does not apply to offences against this Act or the regulations.

  (6)   In this section, officer has the meaning given by section   9 of the Corporations Act 2001 .