INSURANCE ACT 1973
Table of Provisions
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
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
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
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
PART VI--REVIEW--OF DECISIONS
PART VII--LLOYD----
Division 1--Preliminary
Division 2--Security trust fund arrangements
Division 3--General powers of APRA
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 6--Authorisation of 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
