CORPORATIONS REGULATIONS 2001 - REG 7.9.15 More detailed information in Product Disclosure Statement: unauthorised foreign insurer

CORPORATIONS REGULATIONS 2001 - REG 7.9.15

  (1)   For paragraph   1013D(4)(c) of the Act, the more detailed information that must be included in a Product Disclosure Statement that relates to a financial product issued by an unauthorised foreign insurer is:

  (a)   a statement that the product issuer is:

  (i)   an unauthorised foreign insurer; and

  (ii)   not authorised under the Insurance Act 1973 to conduct insurance business in Australia; and

  (b)   a statement that an insurer of that kind is not subject to the provisions of the Insurance Act 1973 , which establishes a system of financial supervision of general insurers in Australia; and

  (c)   a statement that the person should consider whether to obtain further information, including:

  (i)   the country in which the product issuer is incorporated, and whether the country has a system of financial supervision of insurers; and

  (ii)   the paid up capital of the product issuer; and

  (iii)   which country's laws will determine disputes in relation to the financial product; and

  (d)   a statement that an insurer of that kind cannot be a declared general insurer for the purpose of Part   VC of the Insurance Act 1973 , and, if the insurer becomes insolvent, the person will not be covered by the financial claims scheme provided under Part   VC of that Act.

  (2)   In this regulation:

"unauthorised foreign insurer" means:

  (a)   an insurer that:

  (i)   does not have an authority under the Insurance Act 1973 to carry on insurance business; and

  (ii)   is not a person who, because of section   5 of that Act, is not required to have such an authority; and

  (iii)   carries on insurance business outside Australia and the external Territories to which the Insurance Act 1973 extends; or

  (b)   if a direction is in force under section   74 of the Insurance Act 1973 --a Lloyd's underwriter.