Insurance (Agents and Brokers) Regulations (Amendment) (Cth)

Statutory Rules 1985 No. 3681

 

Insurance (Agents and Brokers) Regulations2 (Amendment)

I, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Insurance (Agents and Brokers) Act 1984.

Dated 19 December 1985.

N. M. STEPHEN

Governor-General

By His Excellency’s Command,

C. J. Hurford

Minister of State for Immigration and Ethnic Affairs for and

on behalf of the Treasurer

 

Principal Regulations

1. In these Regulations, “Principal Regulations” means the Insurance (Agents and Brokers) Regulations.

Commencement

2. These Regulations shall come into operation on 2 January 1986.

3. After regulation 10 of the Principal Regulations the following regulations are inserted:

Prescribed form of notice—sub-section 34 (2) of the Act

“11. (1) The form of notice set out in Schedule 2 is prescribed for the purposes of sub-section 34 (2) of the Act.

“(2) A notice referred to in sub-regulation (1) shall be written in letters at least 2 millimetres in height.

 

(S.R. 333/85)—Cat. No.  12/6.12.1985

 

Auditor of registered insurance broker

“12. (1) In respect of business as an insurance broker in relation to life insurance business or general insurance business (as the case may be), a person shall not, without the approval in writing of the relevant Commissioner, act as auditor in relation to the accounts of a registered insurance broker if that person has an interest, pecuniary or otherwise, in the affairs of that registered insurance broker being an interest that could conflict with the proper performance of that person’s functions as an auditor.

“(2) A person shall not act as auditor in relation to the accounts of a registered insurance broker unless that person is a registered company auditor in a State or Territory.

Audit certificate

“13. (1) Where an audit of the accounts of a registered insurance broker is carried out, the registered insurance broker shall obtain from the auditor, being a person who under these Regulations is competent to conduct an audit of those accounts, a certificate in accordance with sub-regulation (2).

“(2) A certificate referred to in sub-regulation (1) shall state—

(a) whether the accounts to which the certificate relates appear to the auditor to be in accordance with the Act and give particulars of any matters that do not appear to the auditor to be so in accordance;

(b) whether the accounts of the broker appear to the auditor to have been properly kept and to record and explain correctly the transactions and financial position of the broker and give particulars of any accounts that appear to the auditor not to have been so recorded;

(c) whether the auditor has obtained the information and explanations requested from the broker and give particulars of information and explanations the auditor requested but did not obtain; and

(d) whether the auditor is satisfied that the accounts referred to in paragraph (a) agree with the accounts of the broker and appear to truly represent the transactions and financial position of the broker and if any of those accounts appear to the auditor to fail to represent the transactions and financial position, give particulars of the failure.

“(3) A registered insurance broker shall at the request of the relevant Commissioner furnish the Commissioner with a copy of the certificate obtained by the broker under sub-regulation (1).

Inspection or audit of books, accounts and records

“14. (1) A registered insurance broker or an employee or agent of a registered insurance broker may, in respect of business as an insurance broker in relation to life insurance business or general insurance business (as the case may be) carried on by that broker, be required by the relevant Commissioner or an authorised person to produce any of the books, accounts

 

and records kept by that broker and the relevant Commissioner or the authorised person may inspect, audit, take extracts from and make copies of, any such book, account or record.

“(2) A registered insurance broker who, without reasonable excuse, fails to comply with a requirement under sub-regulation (1) of a relevant Commissioner or an authorised person, or whose employee or agent without reasonable excuse fails to comply with such a requirement, is guilty of an offence punishable upon conviction by a fine not exceeding $500.

“(3) In sub-regulation (1), ‘authorised person’ means a person authorised by the relevant Commissioner in writing for the purposes of sub-regulation (1).”.

New Schedule inserted

4. The Principal Regulations are amended by adding at the end the following Schedule:

 

SCHEDULE 2Sub-regulation 11 (1)

INSURANCE (AGENTS AND BROKERS) ACT 1984

NOTICE WHERE AN INSURER IS AN UNAUTHORISED FOREIGN INSURER

IMPORTANT NOTE FOR THE INSURANCE CONSUMER

The insurance contract * is proposed to be placed with, or partly with, / * has been placed with, or partly with, / a foreign insurer that is not authorised under the Insurance Act 1973 to conduct insurance business in Australia. Such insurers are not subject to the provisions of that Act which establishes a system of financial supervision of general insurers in Australia.

It is a matter for your consideration whether you should obtain any further information from the insurance intermediary who *intends to arrange/ *has arranged/ the contract of insurance on matters such as:

(a) name and postal address of insurer;

(b) country of incorporation of insurer and whether that country has a scheme of financial supervision of insurers;

(c) paid up capital of the insurer;

(d) the country the laws of which will determine disputes under the contract.

* delete as appropriate.

 

NOTES

1. Notified in the Commonwealth of Australia Gazette on 20 December 1985.

2. Statutory Rules 1985 No. 367.

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