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

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Statutory Rules 1989 No. 2771

Insurance (Agents and Brokers) Regulations2

(Amendment)

I, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council and under section 4 of the Acts Interpretation Act 1901,hereby make the following Regulations under the Insurance (Agents and Brokers) Act 1984.

Dated 12 October 1989.

BILL HAYDEN

Governor-General

By His Excellency’s Command,

BOB BROWN

Minister of State for Land Transport and

Shipping Support for and on behalf of the

Treasurer

Principal Regulations

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

Interpretation

2. Regulation 2 of the Principal Regulations is amended by adding at the end the following subregulation:

“(2) In these Regulations, a reference to a form by number is a reference to the form in the Schedule that bears that number.”.

3. After regulation 2 of the Principal Regulations the following regulation is inserted:

(S.R. 316/89)—Cat. No. 14/10.10.1989

Approved auditor

“2a. (1) For the purposes of the definition of ‘approved auditor’ in section 9 of the Act, the following class of persons is specified, namely, the class consisting of any person, being a registered company auditor in a State or Territory, who, in relation to a registered insurance broker or a registered foreign insurance agent, is an independent auditor.

“(2) In subregulation (1), ‘independent auditor’ means an auditor who, in relation to a registered insurance broker or a registered foreign insurance agent, does not have an interest, pecuniary or otherwise, in the business of insurance intermediary carried on by that registered insurance broker or registered foreign insurance agent, being an interest that could conflict with the proper performance of the auditor’s functions as an auditor of the accounts of that business.”.

4. Regulation 3 of the Principal Regulations is repealed and the following regulations are substituted:

Prescribed liabilities—paragraph 19 (1) (b) of the Act

“3. For the purposes of paragraph 19 (1) (b) of the Act, the following liabilities are prescribed, namely, liabilities incurred as a result of a breach of professional duty.

Extent of indemnity under contract of insurance—paragraph 19 (1) (b) of the Act

“3a. (1) For the purposes of paragraph 19 (1) (b) of the Act, the succeeding provisions of this regulation apply as regards the extent to which a person is to be indemnified under a contract of insurance in respect of the prescribed liabilities arising out of or in the course of the person’s business as an insurance intermediary.

“(2) Subject to subregulation (3), the maximum amount payable as indemnity to a person under a contract of insurance referred to in subregulation (1):

(a) where the person did not carry on business as an insurance intermediary in the financial year (in this regulation referred to as the ‘previous financial year’) last preceding the financial year in which the contract is entered into—must be not less than $500,000; or
(b) where:

(i) paragraph (a) does not apply; and

(ii) 15% of the total amount of the premiums entered in the accounting records of the person in respect of his or her business as an insurance intermediary in the previous financial year does not exceed $5,000,000;

must be not less than:

(iii) $500,000; or

(iv) the amount equal to 15% of the total amount referred to in subparagraph (ii);

whichever is the greater; or

(c) where:

(i) paragraph (a) does not apply; and

(ii) 15% of the total amount of the premiums entered in the accounting records of the person in respect of his or her business as an insurance intermediary in the previous financial year exceeds $5,000,000;

must be not less than $5,000,000.

“(3) Where a contract of insurance referred to in subregulation (1) makes provision for an excess or deductible:

(a) the amount of the excess or deductible must not, except with the approval of the Commissioner, exceed:

(i) if paragraph (2) (a) applies in relation to that person—$10,000; or

(ii) if paragraph (2) (b) or (c) applies in relation to that person:

(a) $10,000; or

(b) an amount equal to 2.5% of the insurance brokerage income of that person in respect of the previous financial year;

whichever is the greater; and

(b) in calculating, for the purposes of subregulation (2), the maximum amount payable as indemnity to a person under a contract of insurance, the amount of the excess or deductible must be subtracted from the amount that would otherwise be the maximum amount payable as indemnity under the contract.

“(4) In subregulation (3), ‘insurance brokerage income’, in relation to a person, means:

(a) moneys received as brokerage fees or as commission by the person in relation to the person’s business as an insurance intermediary; and
(b) interest, dividends or other income received by the person from:

(i) any account maintained under subsection 26 (1) of the Act; or

(ii) any investment made under subsection 26 (4) of the Act.”.

Prescribed form—subsection 20 (2) of the Act

5. Regulation 4 of the Principal Regulations is amended by omitting “the form set out in Schedule 1” and substituting “Form 1”.

Application to be accompanied by certified copy of contract of insurance—section 20 of the Act

6. Regulation 5 of the Principal Regulations is amended:

(a) by omitting “a person who under these Regulations is competent to conduct an audit of the accounts of the applicant” and substituting “an approved auditor”;
(b) by adding at the end the following subregulation:
“(2) In subregulation (1), if the contract was arranged by an insurance intermediary acting under a binder, a reference to an insurer includes a reference to the insurance intermediary.”.

Commissioner to be informed of certain changes—registered insurance brokers

7. Regulation 7 of the Principal Regulations is amended:

(a) by omitting from subregulation (1) “in relation to life insurance business or general insurance business (as the case may be)”;
(b) by omitting from subregulation (1) “relevant”;
(c) by adding at the end of paragraph (1) (d) “and”;
(d) by omitting paragraph (1) (e);
(e) by omitting from subregulation (2) “relevant”.

Fees for inspection and copying of documents—section 23 of the Act

8. Regulation 9 of the Principal Regulations is amended by omitting “or (c)” (wherever occurring) and substituting “, (c), (d) or (e)”.

9. After regulation 9 of the Principal Regulations the following regulations are inserted:

Prescribed form—paragraph 25a (2) (a) of the Act

“9a. For the purposes of paragraph 25a (2) (a) of the Act, Form 2 is prescribed.

Approved auditor’s report—paragraph 25a (2) (c) of the Act

“9b. For the purposes of paragraph 25a (2) (c) of the Act, a report of an approved auditor is in accordance with these Regulations if the report is:

(a) in accordance with regulation 12; and
(b) in respect of an audit of the accounts of the person lodging the relevant return; and
(c) in respect of the accounting period to which that return relates.”.

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

Prescribed liabilities—subparagraphs 31b (1) (a) (ii) and 31b (1) (b) (ii) of the Act

“10a. For the purposes of subparagraphs 31b (1) (a) (ii) and 31b (1) (b) (ii) of the Act, the following liabilities are prescribed, namely, liabilities incurred as a result of a breach of professional duty.

Extent of indemnity under contract of insurance—subparagraph 31b (1) (a) (ii) of the Act

“10b. (1) For the purposes of subparagraph 31b (1) (a) (ii) of the Act, the succeeding provisions of this regulation apply as regards the extent to which a person is to be indemnified under a contract of insurance in respect of the prescribed liabilities arising out of or in the course of the person’s business as an insurance intermediary.

“(2) Subject to subregulation (3), the maximum amount payable as indemnity to a person under a contract of insurance referred to in subregulation (1):

(a) where the person did not carry on business as an insurance intermediary in the financial year (in this regulation referred to as the ‘previous financial year’) last preceding the financial year in which the contract is entered into—must be not less than $500,000; or
(b) where:

(i) paragraph (a) does not apply; and

(ii) 15% of the total amount of the premiums entered in the accounting records of the person in respect of his or her business as an insurance intermediary in the previous financial year does not exceed $5,000,000;

must be not less than:

(iii) $500,000; or
(iv) the amount equal to 15% of the total amount referred to in subparagraph (ii);

whichever is the greater; or

(c) where:

(i) paragraph (a) does not apply; and

(ii) 15% of the total amount of the premiums entered in the accounting records of the person in respect of his or her business as an insurance intermediary in the previous financial year exceeds $5,000,000;

must be not less than $5,000,000.

“(3) Where a contract of insurance referred to in subregulation (1) makes provision for an excess or deductible:

(a) the amount of the excess or deductible must not, except with the approval of the Commissioner, exceed:

(i) if paragraph (2) (a) applies in relation to that person—$10,000; or

(ii) if paragraph (2) (b) or (c) applies in relation to that person:

(A) $10,000; or

(B) an amount equal to 2.5% of the insurance brokerage income of that person in respect of the previous financial year;

whichever is the greater; and

(b) in calculating, for the purposes of subregulation (2), the maximum amount payable as indemnity to a person under a contract of insurance, the amount of the excess or deductible must be subtracted from the amount that would otherwise be the maximum amount payable as indemnity under the contract.

“(4) In subregulation (3), ‘insurance brokerage income’, in relation to a person, means:

(a) moneys received as brokerage fees or as commission by the person in relation to the person’s business as an insurance intermediary; and
(b) interest, dividends or other income received by the person from:

(i) any account maintained under subsection 26 (1) of the Act; or

(ii) any investment made under subsection 26 (4) of the Act.

Extent of indemnity under contract of insurance—subparagraph 31b (1) (b) (ii) of the Act

“10c. (1) For the purposes of subparagraph 31b (1) (b) (ii) of the Act, the succeeding provisions of this regulation apply as regards the extent to which a person is to be indemnified under a contract of insurance in respect of the prescribed liabilities arising out of or in the course of the person’s business as an insurance intermediary.

“(2) Subject to subregulation (3), the maximum amount payable as indemnity to a person under a contract of insurance referred to in subregulation (1):

(a) where the person did not carry on business as an insurance intermediary in the financial year (in this regulation referred to as the ‘previous financial year’) last preceding the financial year in which the contract is entered into—must be not less than $500,000; or
(b) where:

(i) paragraph (a) does not apply; and

(ii) 15% of the total amount of the premiums accepted by the person in respect of his or her business as an insurance intermediary in the previous financial year does not exceed $5,000,000;

must be not less than:

(iii) $500,000; or
(iv) the amount equal to 15% of the total amount referred to in subparagraph (ii);

whichever is the greater; or

(c) where:

(i) paragraph (a) does not apply; and

(ii) 15% of the total amount of the premiums accepted by the person in respect of his or her business as an insurance intermediary in the previous financial year exceeds $5,000,000;

must not be less than $5,000,000.

“(3) Where a contract of insurance referred to in subregulation (1) makes provision for an excess or deductible:

(a) the amount of the excess or deductible must not, except with the approval of the Commissioner, exceed:

(i) if paragraph (2) (a) applies in relation to that person—$10,000; or

(ii) if paragraph (2) (b) or (c) applies in relation to that person:

(a) $10,000; or

(b) an amount equal to 2.5% of the insurance income of that person in respect of the previous financial year;

whichever is the greater; and

(b) in calculating, for the purposes of subregulation (2), the maximum amount payable as indemnity to a person under a contract of insurance, the amount of the excess or deductible must be subtracted from the amount that would otherwise be the maximum amount payable as indemnity under the contract.

“(4) In subregulation (3), ‘insurance income’, in relation to a person, means moneys received as fees or commission by the person in relation to the person’s business as an insurance intermediary.

Prescribed form—subsection 31c (2) of the Act

“10d. For the purposes of subsection 31c (2) of the Act, Form 3 is prescribed.

Application to be accompanied by certified copy of contract of insurance—section 31c of the Act

“10e. (1) An application under subsection 31c (1) must be accompanied by a copy of the contract of insurance required under subparagraph 31b (1) (b) (ii) of the Act certified by the insurer to be a true copy or, if no such copy is available, a statement from the insurer or an approved auditor certifying the existence of the contract and giving details of the contract.

“(2) In subregulation (1), if the contract was arranged by an insurance intermediary acting under a binder, a reference to an insurer includes a reference to the insurance intermediary.

Prescribed fee—paragraph 31d (1) (b) of the Act

“10f. For the purposes of paragraph 31d (1) (b) of the Act, the following fee is prescribed:

(a) where the applicant will, on becoming registered, carry on alone business as a foreign insurance agent (whether or not the applicant will also carry on such business in partnership):

(i) in the case of an individual—$350; or

(ii) in the case of a corporation—$700; or

(b) where the applicant will, on becoming registered, carry on business as a foreign insurance agent in partnership only—an amount calculated in accordance with the formula:

where A is the number of partners.

Commissioner to be informed of certain changes—registered foreign insurance agents

“10g. (1) A registered foreign insurance agent must, in respect of business as a foreign insurance agent carried on by him or her, inform the Commissioner of any change in:

(a) the full name of the registered foreign insurance agent; and
(b) the name under which business as a foreign insurance agent is carried on; and
(c) the postal address of the registered foreign insurance agent; and
(d) the address of the principal place of business of the registered foreign insurance agent; and
(e) the principal place in Australia where the books, accounts and records of the registered foreign insurance agent are kept.

“(2) A registered foreign insurance agent who fails to inform the Commissioner of a change referred to in subregulation (1) within a period of 21 days commencing on the day the change occurred is guilty of an offence punishable upon conviction by a fine not exceeding $500.

Applications under section 31f of the Act

“10h. An application under section 31f of the Act must be made in writing.

Fees for inspection and copying of documents—section 31f of the Act

“10j. (1) For the purposes of section 31f of the Act, the prescribed fee for inspecting a document referred to in paragraph 31f (a), (b), (c) or (d) of the Act is $5.

“(2) For the purposes of section 31f of the Act, the prescribed fee for making a copy of a document referred to in paragraph 31f (a), (b), (c) or (d) of the Act is a fee calculated at the rate of 40 cents for each page of a copy of the whole or part of the document.

Prescribed form—paragraph 31j (2) (a) of the Act

“10k. For the purposes of paragraph 31j (2) (a) of the Act, Form 2 is prescribed.

Approved auditor’s report—paragraph 31j (2) (c) of the Act

“10l. For the purposes of paragraph 31j (2) (c) of the Act, a report of an approved auditor is in accordance with these Regulations if the report is:

(a) in accordance with regulation 13; and
(b) in respect of an audit of the accounts of the person lodging the relevant return; and
(c) in respect of the accounting period to which that return relates.”.

11. Regulations 11, 12 and 13 of the Principal Regulations are repealed and the following regulations substituted:

Prescribed form of acknowledgment—paragraph 34 (1) (c) of the Act

“11. For the purposes of paragraph 34 (1) (c) of the Act:

(a) Form 4 is prescribed as the prescribed form of acknowledgment; and
(b) the following manner of giving an acknowledgment is prescribed, namely, the giving of an acknowledgment:
(i) in a document separate from the contract of insurance to which the acknowledgment relates; and

(ii) written in letters at least 2 millimetres in height.

Audit report—registered insurance broker

“12. (1) Where an audit of the accounts of a registered insurance broker’s business as an insurance intermediary is carried out, the registered insurance broker must obtain a report in accordance with subregulation (2) from an approved auditor.

“(2) A report referred to in subregulation (1) must:

(a) state whether the accounts to which the report relates are, in the opinion of the auditor, in accordance with the Act and give particulars of any matters that are not, in the opinion of the auditor, in accordance with the Act; and
(b) state whether the accounting records of the broker have been, in the opinion of the auditor, properly kept and whether they record and explain correctly the transactions and financial position of the broker and give particulars of:
(i) any accounting records that, in the opinion of the auditor, have not been so kept; and

(ii) any transactions that, in the opinion of the auditor are not correctly recorded and explained; and
(c) state whether the auditor has obtained the information and explanations that the auditor requested from the broker for the purposes of the audit and give particulars of information and explanations that the auditor requested but did not obtain: and
(d) state whether, in the opinion of the auditor, the accounts referred to in paragraph (a) agree with the accounting records of the broker in respect of the period to which those accounts relate and truly represent the transactions and financial position of the broker in respect of that period and, if any of those accounts, in the opinion of the auditor, fail so to represent the transactions or financial position of the broker in respect of that period, give particulars of the failure.

“(3) A registered insurance broker must, if so requested by the Commissioner, give to the Commissioner a copy of the report obtained by the broker under subregulation (1).

Audit report—registered foreign insurance agent

“13. (1) Where an audit of the accounts of a registered foreign insurance agent’s business as an insurance intermediary is carried out, the registered foreign insurance agent must obtain a report in accordance with subregulation (2) from an approved auditor.

“(2) A report referred to in subregulation (1) must:

(a) state whether the accounts to which the report relates are in the opinion of the auditor, in accordance with the Act and give particulars of any matters that are not, in the opinion of the auditor, in accordance with the Act; and
(b) state whether the accounting records of the foreign insurance agent have been, in the opinion of the auditor, properly kept and whether they record and explain correctly the transactions and financial position of the foreign insurance agent and give particulars of:

(i) any accounting records that, in the opinion of the auditor, have not been so kept; and

(ii) any transactions that, in the opinion of the auditor are not correctly recorded and explained; and
(c) state whether the auditor has obtained the information and explanations that the auditor requested from the foreign insurance agent for the purposes of the audit and give particulars of information and explanations that the auditor requested but did not obtain; and
(d) state whether, in the opinion of the auditor, the accounts referred to in paragraph (a) agree with the accounting records of the foreign insurance agent in respect of the period to which those accounts relate and truly represent the transactions and financial position of the foreign insurance agent in respect of that period and, if any of

those accounts, in the opinion of the auditor fail so to represent the transactions or financial position of the foreign insurance agent in respect of that period, give particulars of the failure.

“(3) A registered foreign insurance agent must, if so requested by the Commissioner, give to the Commissioner a copy of the report obtained by the registered foreign insurance agent under subregulation (1).”.

Inspection or audit of books, accounts and records

12. Regulation 14 of the Principal Regulations is amended:

(a) by omitting subregulation (1) and substituting the following subregulations:

“(1) A registered insurance broker or an employee or agent of a registered insurance broker may be required by the Commissioner or an authorised person to produce any of the books, accounts and records kept by that broker in relation to that broker’s business as an insurance intermediary and the Commissioner or the authorised person may inspect, audit, take extracts from and make copies of, any such book, account or record.
“(1a) A registered foreign insurance agent or an employee or agent of a registered foreign insurance agent may be required by the Commissioner or an authorised person to produce any of the books, accounts and records kept by that foreign insurance agent in relation to that foreign insurance agent’s business as an insurance intermediary and the Commissioner or the authorised person may inspect, audit, take extracts from and make copies of, any such book, account or record.”;

(b) by omitting from subregulation (2) “a relevant” and substituting “the”;

(c) by inserting in subregulation (2) “or a registered foreign insurance agent” after “broker”;

(d) by omitting subregulation (3) and substituting the following subregulation:

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

Schedule

13. The Schedules to the Principal Regulations are repealed and the following Schedule is substituted:

SCHEDULE

FORMS

FORM 1 Regulation 4

Insurance (Agents and Brokers) Act 1984

APPLICATION FOR REGISTRATION AS AN

INSURANCE BROKER

Application is hereby made for registration as a general/life insurance broker.
1. Full name of applicant:	...........................................................
2. State whether the applicant is registered or has made an application, that is current (other than this application), to be registered as:	...........................................................
(a) a life insurance broker:	Yes	No
(b) a general insurance broker:	Yes	No
3. Registered trading or business name under which business as an insurance broker is, or will be, carried on:	...........................................................
4. Postal address of applicant:	...........................................................
street or post office box number
town	...........................................................
State or Territory	...........................................................
postcode	...........................................................
5. Address of principal place of business of applicant:	...........................................................
street	...........................................................
town	...........................................................
State or Territory	...........................................................
postcode	...........................................................
6. Address of principal place in Australia where books, accounts and records of applicant are, or will be, kept:	...........................................................
street	...........................................................
town	...........................................................
State or Territory	...........................................................
postcode	...........................................................
7. Name and postal address of each partner if applicant is, or will be, carrying on business as an insurance broker in partnership (if insufficient space attach a list):
name	...........................................................
street or post office box number	...........................................................
town	...........................................................
State or Territory	...........................................................
postcode	...........................................................
name	...........................................................
street or post office box number	...........................................................
town	...........................................................
State or Territory	...........................................................
postcode	...........................................................

8. In respect of contact person for inquiries from the Commissioner’s office:
name	...........................................................
telephone number	...........................................................
facsimile number	...........................................................
9. If a body corporate:
the date of incorporation	...........................................................
the place of incorporation	...........................................................
the name of each director	...........................................................
the name of the body’s ultimate holding company (if any)	...........................................................
10. If trading as a trust:	...........................................................
the date of formation of the trust	...........................................................
the place of formation of the trust	...........................................................
the name of trust	...........................................................
the principal beneficiaries of the trust	...........................................................
11. Name and address of bank where insurance broking account is to be maintained and account number of that account (if more than one account, attach details):
name	...........................................................
street or post office box number	...........................................................
town	...........................................................
State or Territory	...........................................................
postcode	...........................................................
account number	...........................................................
12. In respect of a contract of insurance required under paragraph 19 (1) (b) of the Act:
(a) the name and postal address of the insurer with whom the contract is made:
name	...........................................................
street or post office box number	...........................................................
town	...........................................................
State or Territory	...........................................................
country	...........................................................
postcode	...........................................................
(b) the sum insured:
(c) the excess if any:
(d) the period of effect of the policy:
13. Name and address of each unauthorised foreign insurer (if any) with whom a foreign agency agreement is in force (if insufficient space, attach a list):
name	...........................................................
street or post office box number	...........................................................
town	...........................................................
State or Territory	...........................................................
country	...........................................................
postcode	...........................................................
name	...........................................................
street or post office box number	...........................................................
town	...........................................................

SCHEDULE—continued

State or Territory	...........................................................
country	...........................................................
postcode	...........................................................
14. State whether the applicant or a director, employee or agent of the applicant has been convicted of an offence:
(a) against or arising under the Act or any law, whether of the Commonwealth, of a State or Territory, or of some other country, in respect of conduct relating to insurance:	Yes	No
(b) in respect of dishonest conduct:	Yes	No
15. Name, address and telephone number of auditor in relation to the books accounts and records of the applicant:
name	...........................................................
street or post office box number	...........................................................
town	...........................................................
State or Territory	...........................................................
postcode	...........................................................
telephone number	...........................................................
16. State whether the auditor is:
(a) the applicant:	Yes	No
(b) an officer, partner, employer or employee of the applicant:	Yes	No
(c) a partner, employer or employee of an officer or partner of the applicant:	Yes	No
17. State whether the auditor:
(a) has any interest in shares in, or debentures of, the applicant:	Yes	No
(b) is financially indebted to the applicant, a partner of the applicant or an officer of the applicant:	Yes	No
(c) has any other interest, pecuniary or otherwise, in the affairs of the applicant:	Yes	No
18. If already carrying on business as an insurance broker, details of:
(a) total insurance premiums received during the latest complete financial year:	$.........................................................
(b) total insurance brokerage income (within the meaning of subregulation 3a (4) of the Insurance (Agents and Brokers) Regulations) during that financial year:	$.........................................................

Dated 19 .

..………………………………………..

(Signature of applicant)(1)

* Omit if not applicable.

(1) Where the applicant is a corporation, signature of a person who has authority to bind the corporation and the designation of that person.

DIRECTION

Where the answer ‘YES’ or ‘NO’ is required, circle whichever is appropriate.

SCHEDULE—continued

FORM 2 Regulations 9a and 10k

Insurance (Agents and Brokers) Act 1984

ANNUAL RETURN OF BUSINESS AS INSURANCE INTERMEDIARY(1)

Name of insurance intermediary:

Financial year commencing on……………………...and ending on………………………………..

1.Amount of premiums received in respect of contracts of insurance arranged with insurers, other than with Lloyd’s underwriters1 (directly or indirectly) and unauthorised foreign insurers .....$
2.Amount of premiums received in respect of contracts of insurance arranged, directly or indirectly, with Lloyd’s underwriters(2) .....$

3.In respect of contracts of insurance arranged with unauthorised foreign insurers:

(a) the amount of premiums received is ...........$

(b) the classes of business arranged and the amount of premiums received and the amount paid out in relation to those classes are as follows:

Column 1	Column 2	Column 3
Class of business	Amount of premiums received on behalf of unauthorised foreign insurers	Amount paid on behalf of unauthorised foreign insurers to settle claims
$	$
Fire	..........................................	..........................................
Houseowners and Householders	..........................................	..........................................
Contractors All Risks	..........................................	..........................................
Marine	..........................................	..........................................
Comprehensive Motor Vehicle	..........................................	..........................................
Compulsory Third Party Motor Vehicle	..........................................	..........................................
Employers’ Liability	..........................................	..........................................
Public Liability	..........................................	..........................................
Loan, Mortgage and Lease	..........................................	..........................................
Other	..........................................	..........................................
Total	..........................................	..........................................

(c) the countries (other than Australia) to which funds were first remitted in relation to such contracts and the amount of premiums received and the amount paid out in relation to those contracts are as follows(3).

SCHEDULE—continued

Column 1	Column 2	Column 3
Name of country or countries to which funds remitted	Amount of premiums received on behalf of unauthorised foreign insurers	Amount paid on behalf of unauthorised foreign insurers to settle claims
$	$
Singapore	................................................	..........................................
United Kingdom	................................................	..........................................
United States Others (specify)	................................................	..........................................
.....................................................	................................................	..........................................
.....................................................	................................................	..........................................
.....................................................	................................................	..........................................
.....................................................	................................................	..........................................
.....................................................	................................................	..........................................
Total	................................................	..........................................

Dated 19 .

………………………………………

(Signature of

*broker/*foreign insurance agent or director, secretary or agent of

*broker/*foreign insurance agent)

Dated 19 .

……………………………………...

(Signature of auditor)

* Omit if not applicable.

(1) Reinsurance business is not to be included in this return.

(2) “Lloyd’s underwriter” means an underwriting member of Lloyd’s and “Lloyd’s” has the same meaning as in the Insurance Act 1973.
(3) Funds relating to such contracts that are not remitted to a country other than Australia but are retained (in an underwriting pool or for any other purpose) are to be included here as if those funds had been remitted to the country to which those funds would otherwise have been first remitted.

FORM 3 Regulation 10d

Insurance (Agents and Brokers) Act 1984

APPLICATION FOR REGISTRATION AS A

FOREIGN INSURANCE AGENT

Application is hereby made for registration as a foreign insurance agent.
1.Full name of applicant:	..........................................................................
2.State whether the applicant is already carrying on business as a foreign insurance agent:	Yes	No
3.Registered trading or business name under which business as a foreign insurance agent is, or will be, carried on:	..........................................................................

SCHEDULE—continued

4. Postal address of applicant:
street or post office box number	...............................................................
town	...............................................................
State or Territory	...............................................................
postcode	............................................................... ...............................................................
5. Address of principal place of business of applicant:
street	...............................................................
town	...............................................................
State or Territory	...............................................................
postcode	...............................................................
6. Address of principal place in Australia where books, accounts and records of applicant are, or will be, kept:
street	...............................................................
town	...............................................................
State or Territory	...............................................................
postcode	...............................................................
7. Name and postal address of each partner if applicant is, or will be, carrying on business as a foreign insurance agent in partnership (if insufficient space, attach a list):
name	...............................................................
street or post office box number	...............................................................
town	...............................................................
State or Territory	...............................................................
postcode	...............................................................
name	...............................................................
street or post office box number	...............................................................
town	...............................................................
State or Territory	...............................................................
postcode	...............................................................
8. In respect of contact person for inquiries from the Commissioner’s office:
name	...............................................................
telephone number	...............................................................
facsimile number	...............................................................
9. If a body corporate:
the date of incorporation	...............................................................
the place of incorporation	...............................................................
the name of each director	...............................................................
the name of the body’s ultimate holding company (if any)	...............................................................
10. If trading as a trust:
the date of formation of the trust	...............................................................
the place of formation of the trust	...............................................................
the name of the trust	...............................................................

SCHEDULE—continued

the principal beneficiaries of the trust’	...............................................................
11. In respect of a contract of insurance required under subparagraph 31b (1) (a) (ii) or 31b (1) (b) (ii) of the Act:
(a) the name and postal address of the insurer with whom the contract is made:
name	...............................................................
street or post office box number	...............................................................
town	...............................................................
State or Territory	...............................................................
country	...............................................................
postcode	...............................................................
(b) the sum insured:	...............................................................
(c) the excess, if any:	...............................................................

(d) the period of effect of the policy:	...............................................................
12. Name and address of each unauthorised foreign insurer (if any) with whom a foreign agency agreement is in force (if insufficient space, attach a list):
name	...............................................................
street or post office number	...............................................................
town	...............................................................
State or Territory	...............................................................
country	...............................................................
postcode	...............................................................
name	...............................................................
street or post office box number	...............................................................
town	...............................................................
State or Territory	...............................................................
country	...............................................................
postcode	...............................................................
13. State whether the applicant or a director, employee or agent of the applicant has been convicted of an offence:
(a) against or arising under the Act or any law, whether of the Commonwealth, of a State or Territory, or of some other country, in respect of conduct relating to insurance:	Yes	No
(b) in respect of dishonest conduct:	Yes	No
14. Name, address and telephone number of auditor in relation to the books, accounts and records of the applicant:
name	...............................................................
street or post office box number	...............................................................
town	...............................................................
State or Territory	...............................................................
postcode	...............................................................
telephone number	...............................................................
15. State whether the auditor is:	...............................................................
(a) the applicant:	Yes	No

SCHEDULE—continued

(b) an officer, partner, employer or employee of the applicant:	Yes	No
(c) a partner, employer or employee of an officer or partner of the applicant:	Yes	No
16. State whether the auditor:
(a) has any interest in shares in, or debentures of, the applicant:	Yes	No
(b) is financially indebted to the applicant, a partner of the applicant or an officer of the applicant:	Yes	No
(c) has any other interest, pecuniary or otherwise, in the affairs of the applicant:	Yes	No
17. If already carrying on business as a foreign insurance agent, details of:
(a) total insurance premiums received during the latest complete financial year:	$.......................................................
(b) total insurance income (within the meaning of subregulation 10c (4) of the Insurance (Agents and Brokers) Regulations) during that financial year:	$.......................................................

Dated 19 .

………………………………………

(Signature of applicant)(1)

(1) Where the applicant is a corporation, signature of a person who has authority to bind the corporation and the designation of that person.

DIRECTION

Where the answer ‘YES’ or ‘NO’ is required, circle whichever is appropriate.

SCHEDULE—continued

FORM 4 Regulation 11

Insurance (Agents and Brokers) Act 1984

ACKNOWLEDGMENT BY AN INSURED THAT AN INSURANCE CONTRACT

IS OR MAY BE ARRANGED OR EFFECTED WITH AN UNAUTHORISED

FOREIGN INSURER

NOTICE TO THE INSURED

Your insurance contract *may be/*has been/arranged or effected wholly or partly with an unauthorised 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 further information from the insurance intermediary involved on such matters 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) which country’s laws will determine disputes under the contract.

ACKNOWLEDGMENT

I, (full name) of (address)have read the above notice and I acknowledge that the insurance contract *may be/*has been/arranged or effected wholly or partly with an unauthorised foreign insurer that is not authorised under the Insurance Act 1973 to conduct insurance business in Australia.

Dated 19 .

………………………………..

(Signature of insured)

* Omit if not applicable.

NOTES

1. Notified in the Commonwealth of Australia Gazette on 19 October 1989.

2. Statutory Rules 1985 No. 367 as amended by 1985 No. 368; 1986 No. 351; 1987 No. 339.

Printed by Authority by the Commonwealth Government Printer

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

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