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INSURANCE ACT 1973 - SECT 74 APRA may direct that Lloyd's underwriters must not issue or renew policies

INSURANCE ACT 1973 - SECT 74

APRA may direct that Lloyd's underwriters must not issue or renew policies

  (1)   If it appears to APRA that:

  (a)   there has been a contravention of any of the provisions of:

  (i)   this Division; or

  (ii)   Division   2 or 4; or

  (b)   as a result of an enactment of an Act of the United Kingdom, a substantial change is made in the constitution, powers, rights or obligations of Lloyd's or of Lloyd's underwriters; or

  (c)   as a result of a making of a by - law by Lloyd's, the rights or obligations of Lloyd's underwriters are substantially changed;

APRA may, by written notice given to Lloyd's, give either or both of the following directions:

  (d)   a direction that Lloyd's underwriters must not issue policies or undertake liability under contracts of insurance;

  (e)   a direction that Lloyd's underwriters must not renew policies.

  (2)   If:

  (a)   a direction under subsection   (1) has been in force for a period of more than 180 days; and

  (b)   Lloyd's requests APRA, in writing, to review the direction;

APRA must consider whether the direction should:

  (c)   remain in force; or

  (d)   be varied; or

  (e)   be revoked.

  (3)   In considering the matter referred to in subsection   (2), APRA must have regard to:

  (a)   whether an investigation under Subdivision B of Division   4 is being, or has been, undertaken; and

  (b)   whether a determination under section   93 is in force; and

  (c)   such other matters (if any) as APRA considers relevant.

  (4)   If:

  (a)   a request is made under subsection   (2) in relation to a direction; and

  (b)   the direction is still in force immediately before the end of the period of 30 days that began when the request was made;

the direction ceases to be in force at the end of that period.

  (5)   A Lloyd's underwriter must comply with a direction in force under subsection   (1).

  (6)   A person who intentionally or recklessly contravenes subsection   (5) commits an offence punishable on conviction by a fine not exceeding 200 penalty units.

  (7)   A copy of a notice under subsection   (1) is to be published in the Gazette .