• Specific Year
    Any

INSURANCE ACT 1973 - SECT 28 General insurer must hold sufficient assets

INSURANCE ACT 1973 - SECT 28

General insurer must hold sufficient assets

    A general insurer commits an offence if:

  (a)   it does not hold assets in Australia (excluding goodwill and any assets or other amount excluded by the prudential standards for the purposes of this section) of a value that is equal to or greater than the total amount of its liabilities in Australia other than pre - authorisation liabilities; and

  (b)   APRA has not authorised the insurer to hold assets of a lesser value; and

  (c)   there is no determination in force under subsection   7(1) determining that this subsection does not apply to the insurer.

Penalty:   200 penalty units.

Note 1:   Certain amounts are taken to be assets in Australia, and certain liabilities are taken to be liabilities in Australia, under section   116A.

Note 2:   Chapter   2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 3:   If a body corporate is convicted of an offence against this section, subsection   4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty above.