Commonwealth Consolidated Acts

PRIVATE HEALTH INSURANCE ACT 2007 - SECT 84.1

             (1)  A person commits an offence if:

                     (a)  the person:

                              (i)  advertises a * product; or

                             (ii)  offers a person insurance under a policy; or

                            (iii)  insures a person under a policy; or

                            (iv)  arranges for another person to do a thing mentioned in subparagraph (i), (ii) or (iii); and

                     (b)  the insurance under the policy, or under a policy in the product, is * health insurance business; and

                     (c)  the policy is not a * complying health insurance policy; and

                     (d)  the * health insurance business is not business of a kind specified in the Private Health Insurance (Complying Product) Rules as excluded from subsection 63‑1(1).

Penalty:  1,000 penalty units or imprisonment for 5 years, or both.

             (2)  In imposing a penalty on a private health insurer for an offence under subsection (1), the court:

                     (a)  must have regard to the possible impact of a penalty on the insurer's capital adequacy, solvency and the level of premiums for its * complying health insurance products; and

                     (b)  must not impose a penalty if satisfied that doing so would adversely affect the insurer's capital adequacy or solvency, or be likely to lead to an increase in premiums for its products.