INSURANCE ACT 1973 - SECT 49E Actuarial investigation of liabilities

INSURANCE ACT 1973 - SECT 49E

  (1)   APRA may give written notice to a general insurer requiring it to appoint, at the insurer's expense, an actuary (other than the actuary appointed in accordance with section   39) to:

  (a)   investigate all or a specified part of the insurer's liabilities as at a particular time; and

  (b)   produce a written report.

Note:   Only certain persons can be appointed as an actuary for the purposes of this section (see section   49G).

  (2)   The actuary must not be an officer (within the meaning of the Corporations Law) of the general insurer.

  (3)   Within 7 days after the general insurer is given the notice, it must appoint the actuary and advise APRA (in writing) of the actuary's name.

  (4)   Within 7 days after being notified of an actuary's name, APRA may give written notice to the general insurer that the actuary is not acceptable to APRA. The insurer must then, within 7 days:

  (a)   appoint a different actuary; and

  (b)   advise APRA (in writing) of the name of that actuary.

  (5)   Subsection   (4) applies whether the notification of the actuary's name is under subsection   (3) or paragraph   (4)(b).

  (6)   The general insurer must ensure that the actuary's report is given to APRA:

  (a)   within 30 days after APRA gave the notice under subsection   (1) requiring an actuary to be appointed; or

  (b)   within such further time as APRA allows in writing.

  (7)   The actuary's report must be signed by the actuary and contain a statement of the actuary's opinion about each of the following:

  (a)   the adequacy of all or part of the amount specified in the general insurer's accounts in respect of its liabilities, and the amount that the actuary considers would be adequate in the circumstances;

  (b)   the accuracy of any relevant valuations made by the actuary;

  (c)   the assumptions used by the actuary in making those valuations;

  (d)   the relevance, appropriateness and accuracy of the information on which those valuations were based;

  (e)   any other matter in respect of which the prudential standards require a statement of the actuary's opinion to be included in the report.