Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations
1 >1 After subsection 127 (1)
insert
(1A) The Regulator may appoint a person who is eligible to be appointed as an inspector under section 82R of the National Health Act 1953 as an authorised person for the purposes of the application of a specified provision of this Act to the health insurance business of a jointly regulated friendly society.
2 Paragraph 130 (c)
substitute
(c) conditions on the registration of the company; and
(d) the National Health Act 1953 ; and
(e) regulations made under that Act; and
(f) conditions on the registration of the company under that Act; and
(g) directions given to the company by the Minister under that Act.
3 After subsection 131 (1)
insert
(1A) In subsection (1), business includes health insurance business.
4 Before section 134
insert
133B Definitions for Division 3
In this Division:
"life insurance business" includes health insurance business.
"policy" includes a health insurance policy.
5 After subsection 134 (1)
insert
(1A) For subsection (1):
(a) a direction applies to an asset of the health insurance business of a company that is a jointly regulated friendly society only if the direction was given because of liabilities of the health insurance business of the society; and
(b) a direction applies to an asset of the life insurance business of a company that is a jointly regulated friendly society only if the direction was given because of liabilities of the life insurance business of the society.
(1B) APRA must not give a direction under subsection (1) in relation to an asset of the health insurance business of a jointly regulated friendly society without the written approval of PHIAC or the Minister for Health and Aged Care.
6 Subparagraph 136 (b) (iii)
substitute
(iii) a condition imposed, under section 22, on the registration of the company; or
(iv) the National Health Act 1953 ; or
(v) regulations made under that Act; or
(vi) conditions on the registration of the company under that Act; or
(vii) directions given to the company by the Minister under that Act; or
(viii) the Private Health Insurance Incentives Act 1997 ; or
(ix) the Private Health Insurance Incentives Act 1998 .
7 After subsection 137 (2)
insert
(3) However, the Regulator must not decide, under subsection (2), to investigate the health insurance business of a company that is a jointly regulated friendly society without the written approval of PHIAC or the Minister for Health and Aged Care.
8 After section 138
insert
138A Investigation of jointly regulated friendly society
The Regulator must not start an investigation under this Division in respect of a jointly regulated friendly society if an investigation in respect of the society is in progress under section 82R of the National Health Act 1953 .
Note It is intended that regulations under the National Health Act 1953 will provide that an investigation of a jointly regulated friendly society must not be started under s 82R of that Act if an investigation of the society is in progress under this Division.
9 Section 149
omit
After an investigation
insert
(1) After an investigation
10 Section 149
insert
(2) For an investigation of the health insurance business of a company that is a jointly regulated friendly society, the summary must also be given to PHIAC and the Minister for Health and Aged Care and must include:
(a) a statement of the Regulator's opinion on the question whether the company is, or is about to become, unable to meet its liabilities, and the facts on which that opinion is based; and
(b) the Regulator's recommendation about:
(i) the question whether the company should be permitted to continue to conduct the health benefits fund; and
(ii) the question whether the affairs of the company should be reorganised to enable it to better conduct the health benefits fund and, if so, the way in which they should be so reorganised; and
(iii) such other matters affecting the company or the interests of contributors to the health benefits fund conducted by the company as the Regulator thinks fit.
(3) The Regulator may refer a report on the conclusions it reached as a result of an investigation of the health insurance business of a company to the Registration Committee established by section 70 of the National Health Act 1953 .
11 Paragraph 150 (1) (c)
substitute
(c) has contravened a condition or direction applicable to it under this Act; or
(d) has contravened:
(i) the National Health Act 1953 ; or
(ii) regulations made under that Act; or
(iii) conditions on the registration of the company under that Act; or
(iv) directions given to the company by the Minister under that Act; or
(v) the Private Health Insurance Incentives Act 1997 ; or
(vi) the Private Health Insurance Incentives Act 1998 .
12 After subsection 150 (1)
insert
(1A) The Regulator must not give a direction under subsection (1) that relates to the health insurance business of a jointly regulated friendly society without the written approval of PHIAC or the Minister for Health and Aged Care.
13 Before section 157
insert
156G Definitions for Division 1
In this Division:
"business" includes health insurance business.
"policy" means:
(a) if the provision in which it occurs is being applied to, or for the purposes of, the health insurance business of a jointly regulated friendly society -- a health insurance policy; and
(b) if the provision in which it occurs is being applied to, or for the purposes of, the life insurance business of a jointly regulated friendly society -- a policy that, by subsection 16F (1) or (2), is taken to be issued by a friendly society; and
(c) if the provision in which it occurs is being applied to, or for the purposes of, all of the business of a jointly regulated friendly society -- a policy mentioned in paragraph (a) or (b).
14 After subsection 157 (1)
insert
(1A) However, APRA must not apply to the Court under subsection (1) for an order that relates to the health insurance business of a jointly regulated friendly society without the written approval of PHIAC or the Minister for Health and Aged Care.
15 After subsection 157 (5)
insert
(6) On an application by a jointly regulated friendly society that relates to the health insurance business of the society, PHIAC and the Minister for Health and Aged Care are entitled to be heard.
16 Paragraph 158 (a)
substitute
(a) that the business of the company has been investigated under Division 3 of Part 7 of this Act or section 82R of the National Health Act 1953 ; and
17 Subparagraphs 159 (a) (ii) and (iii)
substitute
(ii) the company has failed to comply with any of the following that apply to it:
(A) the prudential standards relating to solvency made by APRA under section 230A of the Act;
(B) a direction under section 230B in relation to solvency;
(C) a direction under section 73BE of the National Health Act 1953 ;
(D) a condition of registration under Division 3 of Part VI of that Act; or
18 Paragraph 159 (b)
omit
life insurance
19 Section 162
omit
A company
insert
(1) A company
20 Section 162
insert
(2) However, subsection (1) does not apply to a jointly regulated friendly society if the judicial management relates only to its health benefits fund.
Note Part VIA of the National Health Act 1953 makes provision for judicial management of health benefits funds.
21 After section 166
insert
166A Continued application of National Health Act
The appointment of a judicial manager under this Part that relates to the health insurance business of a jointly regulated friendly society does not affect the continued operation of the National Health Act 1953 in relation to the society or the obligation of the society to comply with that Act.
22 After subsection 167 (5)
insert
(6) PHIAC and the Minister for Health and Aged Care are entitled to be heard on an application that relates to the health insurance business of a jointly regulated friendly society.
23 After subsection 169 (2)
insert
(3) PHIAC and the Minister for Health and Aged Care are entitled to be heard on an application that relates to the health insurance business of a jointly regulated friendly society.
24 After subsection 170 (2)
insert
(3) PHIAC, or the Minister for Health and Aged Care, may ask a judicial manager for information about the conduct of a judicial management that relates to the health insurance business of a jointly regulated friendly society.
(4) The judicial manager must comply with the request.
25 After subsection 172 (6)
insert
(7) PHIAC and the Minister for Health and Aged Care are entitled to be heard on any application made under subsection (1) or (2) that relates to the health insurance business of a jointly regulated friendly society.
26 After paragraph 175 (2) (a)
insert
(ab) to transfer the business, or part of the business, of the company to an organisation registered under the National Health Act 1953 ;
27 After paragraph 175 (2) (c)
insert
(ca) to wind up the health benefits fund of the company under the National Health Act 1953 ;
28 Subsection 175 (4)
omit
paragraph (2) (a), (b) or (d),
insert
paragraph 2 (a), (ab), (b), (ca) or (d),
29 Before section 180
insert
179A Definition for Division 2
In this Division:
"policy" , in relation to a company that is a jointly regulated friendly society, includes a health insurance policy.
30 After subsection 180 (4)
insert
(5) To avoid doubt, this section does not prevent the winding‑up of the health benefits fund of a jointly regulated friendly society under Part VIA of the National Health Act 1953 .
31 Subsection 181 (1)
omit
subsection (2)
insert
subsections (2) and (2A)
32 After subsection 181 (2)
insert
(2A) However, APRA must not apply to the Court under subsection (1) for an order that a life company that is a jointly regulated friendly society be wound up without the written approval of PHIAC or the Minister for Health and Aged Care.
33 After subsection 183 (3)
insert
(4) PHIAC and the Minister for Health and Aged Care are entitled to be heard on an application that relates to the health insurance business of a jointly regulated friendly society.
34 After subsection 184 (4)
insert
(5) PHIAC and the Minister for Health and Aged Care are entitled to be heard on an application that relates to the health insurance business of a jointly regulated friendly society.
35 After subsection 185 (2)
insert
(3) PHIAC, or the Minister for Health and Aged Care, may ask a liquidator for information in writing about the winding‑up of the health insurance business of a jointly regulated friendly society.
(4) The judicial manager must comply with the request.
36 After subsection 186 (2A)
insert
(2B) If the company is a jointly regulated friendly society, the liquidator must also take account of health benefits fund rules of the society in making determinations under subsection (1), to the extent that those rules are consistent with any directions of the Court.
37 Subsections 187 (1), (2) and (3)
substitute
(1) Subject to this section, in the winding‑up of a life company that is a jointly regulated friendly society, the assets of an approved benefit fund of the society and of the health benefits fund of the society must first be applied in accordance with the applicable Corporations Law in discharging debts and claims referred to in subsection 556 (1) of that Law.
(2) However, subsection (1) has effect only to the extent that debts or claims are liabilities that are referable to the business of the approved benefit fund or health benefits fund.
(3) If any assets remain after the application of subsection (1), the assets must be applied according to the following rules:
(a) the assets of an approved benefit fund are to be applied:
(i) first, in discharge of policy liabilities of the company referable to the approved benefit fund; and
(ii) if any assets remain, in discharge of other liabilities that are referable to the business of the approved benefit fund;
(b) the assets of the health benefits fund are to be applied:
(i) first, in discharge of policy liabilities of the company referable to the health benefits fund; and
(ii) if any assets remain, in discharge of other liabilities that are referable to the business of the health benefits fund;
(c) if any assets of the funds remain after an application of assets according to paragraphs (a) and (b), the assets are to be applied in such manner as the Court directs;
(d) directions given for the purpose of paragraph (c) are to be such directions as the Court considers equitable, having regard to:
(i) the interests of the owners of policies referable to the approved benefit fund or funds; and
(ii) the interests of the owners of policies referable to the health benefits fund; and
(iii) the interests of creditors of the company whose debts have not been discharged by application of the assets according to subparagraphs (a) (ii) and (b) (ii).
38 Subsection 188 (1)
omit each mention of
statutory fund
insert
health benefits fund or approved benefit fund
39 After subsection 190 (1)
insert
(1A) However, no part of the health insurance business of a life company that is a jointly regulated friendly society may be:
(a) transferred to another organisation; or
(b) amalgamated with the business of another organisation;
except under a scheme confirmed by the Court.
40 Subsection 191 (1), definition of affected policy owner
omit
statutory fund
insert
health benefits fund or approved benefit fund
41 Paragraph 191 (2) (a)
after
given to APRA
insert
(and to PHIAC and the Minister for Health and Aged Care if the scheme affects the health benefits fund of a jointly regulated friendly society)
42 After subsection 192 (2)
insert
(3) If the report relates to the health insurance business of a company that is a jointly regulated friendly society, APRA must give a copy of the report to PHIAC and the Minister for Health and Aged Care.
43 After subsection 193 (3)
insert
(4) PHIAC and the Minister for Health and Aged Care are entitled to be heard on an application that affects the health benefits fund of a jointly regulated friendly society.
44 After subsection 197 (1)
insert
(1A) If any part of the health insurance business carried on by a life company that is a jointly regulated friendly society is transferred to, or amalgamated with the business of, another organisation, the organisation must give APRA such documents as are required by the regulations to be given for subsection (1).
45 After subsection 230A (5)
insert
(5B) APRA must not determine, vary or revoke a standard that relates only to life insurance companies that are jointly regulated friendly societies without the written approval of PHIAC or the Minister for Health and Aged Care.
46 Subsection 230A (13), before definition of Territory
insert
"policy owner" , in relation to the health insurance business of a life company that is also a registered organisation under the National Health Act 1953 , means a person who is a contributor to the health benefits fund of the organisation in accordance with the organisation's rules.
47 After paragraph 230B (1) (a)
insert
(ab) the company has contravened:
(i) the National Health Act 1953 ; or
(ii) regulations made under that Act; or
(iii) conditions on the registration of the company under that Act; or
(iv) directions given to the company by the Minister under that Act; or
(v) the Private Health Insurance Incentives Act 1997 ; or
(vi) the Private Health Insurance Incentives Act 1998 ; or
48 After subsection 230B (9)
insert
(10) However, APRA must not give a direction under this section that relates to the health insurance business of a jointly regulated friendly society without the written approval of PHIAC or the Minister for Health and Aged Care.
(11) In this section:
"policy owner" , in relation to the health insurance business of a life company that is also a registered organisation under the National Health Act 1953 , means a person who is a contributor to the health benefits fund of the organisation in accordance with the organisation's rules.
49 Schedule -- Dictionary, before definition of policy
insert
"PHIAC" means the Private Health Insurance Administration Council established by section 82B of the National Health Act 1953 .