Insurance Amendment Act 1983 (Cth)

Insurance Amendment Act 1983

No. 129 of 1983

TABLE OF PROVISIONS

PART I—PRELIMINARY

Section

1. Short title, &c.

2. Commencement

PART II—AMENDMENTS OF THE PRINCIPAL ACT

3. Interpretation

4. Application of Act

5. Repeal of section 13

6. Public servant appointed as Commissioner may continue in office as public servant

7. Termination of appointment

8. Repeal of section 19 and substitution of new sections—

19. Acting Commissioner

19a. Delegation

9. Repeal of section 21 and substitution of new section—

21. Certain persons not to carry on insurance business

10. Application for authority

11. Authority to commence carrying on insurance business

12. Authority to carry on insurance business for body corporate that carried on insurance business before 9 December 1971

13. Repeal of section 26

14. Refusal to grant authority

15. Repeal of section 29 and substitution of new section—

29. Conditions to which authority is subject

16. Assets

17. Liabilities

18. Valuation of assets

TABLE OF PROVISIONS—continued

Section

19. Exemption from requirement relating to assets in Australia

20. Cancellation of authority

21. Exemption in respect of insurance business carried on for benefit of limited class of persons

22. Interpretation

23. Accounting records

24. Accounts and statements to be lodged with Commissioner

25. Audit of accounts

26. Extension of time

27. Report of inspector

28. Directions

29. Review of certain decisions

30. Insertion of new section—

64. Statements to accompany notification of decisions

31. Repeal of section 104

32. Bodies corporate ceasing to carry on insurance business

33. Persons ceasing to carry on insurance business

34. Transitional provisions relating to bodies corporate refused authorities under section 27

35. Power to require production of books

36. Inspection of Register, accounts and auditors’ certificates

37. Annual report

38. Offences

39. Insertion of new sections—

129a. Joinder of charges and penalties for certain offences

129b. Continuing offences

40. Schedule

41. Amendments relating to accounts and accounting records

42. Amendments relating to penalties

43. Formal amendments

44. Application of certain amendments

PART III—INTERIM PROVISIONS

45. Interpretation

46. Notification in Gazette of prescribed bodies corporate

47. Interim application of section 29 of the Insurance Act 1973 to prescribed bodies corporate

48. Directions

SCHEDULE 1

Amendments relating to accounts and accounting records

SCHEDULE 2

Amendments relating to penalties

SCHEDULE 3

Formal amendments

SCHEDULE 4

Interim application of section 29 of the Insurance Act 1973 to prescribed bodies corporate

Insurance Amendment Act 1983

No. 129 of 1983

  

An Act to amend the Insurance Act 1973, and for related purposes

[Assented to 22 December 1983]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

PART I—PRELIMINARY

Short title, &c.

1. (1) This Act may be cited as the Insurance Amendment Act 1983.

(2) The Insurance Act 19731is in this Act referred to as the Principal Act.

Commencement

2. (1) Subject to this section, this Act shall come into operation on the twenty-eighth day after the day on which it receives the Royal Assent.

(2) Paragraph 3 (c) and section 24 shall come into operation on such date as is, or on such respective dates as are, fixed by Proclamation.

 

(3) The amendment of sub-section 113 (4) of the Principal Act made by section 42 shall come into operation on the date on which that sub-section comes into operation.

PART II—AMENDMENTS OF THE PRINCIPAL ACT

Interpretation

3. Section 3 of the Principal Act is amended—

(a) by inserting after the definition of “accident insurance business” in sub-section (1) the following definitions:

“‘accounting records’, in relation to a body corporate, includes invoices, receipts, orders for the payment of money, bills of exchange, cheques, promissory notes, vouchers and other documents of prime entry and also includes such working papers and other documents as are necessary to explain the methods and calculations by which accounts of the body corporate are made up, and such other documents (if any) as are prescribed;

‘accounts’, except in sub-sections 44 (1), (2) and (3) and the Schedule, means ordinary accounts and statutory accounts”;

(b) by omitting from sub-section (1) the definition of “books” and substituting the following definitions:

“‘books’ includes any register or other record of information or any accounts or accounting records, however compiled, recorded or stored, and also includes any document; ‘charge’ means a charge created in any way and includes a mortgage or an agreement to give or execute a charge or mortgage, whether upon demand or otherwise;”;

(c) by omitting from sub-section (1) the definition of “debenture” and substituting the following definition:

“‘debenture’ includes debenture stock, bonds, notes and any other document evidencing or acknowledging indebtedness of a body corporate in respect of money that is or may be deposited with or lent to the body corporate, whether constituting a charge on property of the body corporate or not, but does not include—

(a) a document that merely acknowledges the receipt of money by a body corporate in a case where, in respect of the money, the body corporate issues, in compliance with section 97 of the Companies Act 1981, a document prescribed by sub-section (2) of that section and complies with the other requirements of that section;

(b) a cheque, order for the payment of money or bill of exchange; or

(c) for the purposes of the application of this definition to a provision of this Act in respect of which the regulations

 

provide that the word ‘debenture’ does not include a prescribed document or a document included in a prescribed class of documents—that document or a document included in that class of documents, as the case may be;”;

(d) by inserting after the definition of “financial year” in sub-section (1) the following definition:

“‘floating charge’ includes a charge that conferred a floating security at the time of its creation but has since become a fixed or specific charge;”;

(e) by inserting after the definition of “Lloyd’s underwriter” in sub-section (1) the following definition:

“‘ordinary accounts’ means ledgers, journals, profit and loss accounts and balance-sheets, whether or not prepared for the purposes of any law (including this Act), and includes statements, reports and notes (other than auditors’ reports or directors’ reports) attached to, or intended to be read with, any of the foregoing, but does not include statutory accounts;”;

(f) by inserting after the definition of “profit and loss account” in sub-section (1) the following definition:

“‘quarterly statutory accounts’, in relation to a body corporate authorized under this Act to carry on insurance business, means the statements that the body corporate is required to lodge with the Commissioner under sub-section 44 (4);”; and

(g) by adding at the end of sub-section (1) the following definitions:

“‘statutory accounts’, in relation to a body corporate authorized under this Act to carry on insurance business, means—

(a) yearly statutory accounts of the body corporate;

(b) quarterly statutory accounts of the body corporate; and

(c) if sub-section 44 (6) applies to the body corporate—statements that the body corporate is required to lodge with the Commissioner under that sub-section;

‘yearly statutory accounts’, in relation to a body corporate authorized under this Act to carry on insurance business, means the accounts and statements that the body corporate is required to lodge with the Commissioner under sub-section 44 (1).”.

Application of Act

4. Section 5 of the Principal Act is amended—

(a) by omitting “or” from paragraph (2) (g);

(b) by inserting after paragraph (2) (g) the following paragraph:

“(ga) a prescribed company, being the business of insuring against the whole or part of any loss in relation to the withdrawable share capital of, and loans (including deposits) to, building societies; or”; and

 

(c) by adding at the end thereof the following sub-section:

“(4) In paragraph (2) (ga), ‘building society’ means a society registered or incorporated as a building society, co-operative housing society or similar society under the law in force in a State or Territory relating to such societies.”.

Repeal of section 13

5. Section 13 of the Principal Act is repealed.

Public servant appointed as Commissioner may continue in office as public servant

6. Section 14 of the Principal Act is amended by omitting from paragraph (2) (e) “sections 13 and 15 do not” and substituting “section 15 does not”.

Termination of appointment

7. Section 15 of the Principal Act is amended by inserting after paragraph (2) (a) the following paragraph:

“(aa) fails, without reasonable excuse, to comply with his obligations under sub-section 12 (3);”.

8. (1) Section 19 of the Principal Act is repealed and the following sections are substituted:

Acting Commissioner

“19. (1) The Treasurer may appoint a person to act as Commissioner—

(a) during a vacancy in the office of Commissioner; or

(b) during any period, or during all periods, when the Commissioner is absent from duty or from Australia or is, for any other reason, unable to perform the functions of his office,

but a person appointed to act during a vacancy shall not continue so to act for more than 12 months.

“(2) An appointment of a person under sub-section (1) may be expressed to have effect only in such circumstances as are specified in the instrument of appointment.

“(3) The Treasurer may—

(a) determine the terms and conditions of appointment, including remuneration and allowances, of a person acting as Commissioner; and

(b) terminate such an appointment at any time.

“(4) Where a person is acting as Commissioner in accordance with paragraph (1) (b) and the office of Commissioner becomes vacant while that person is so acting, then, subject to sub-section (2), that person may continue so to act until the Treasurer otherwise directs, the vacancy is filled or a period of 12 months from the date on which the vacancy occurred expires, whichever first happens.

 

“(5) The appointment of a person to act as Commissioner ceases to have effect if he resigns his appointment by writing signed by him and delivered to the Treasurer.

“(6) While a person is acting as Commissioner, he has and may exercise all the powers, and shall perform all the functions, of the Commissioner under this Act or the regulations.

“(7) Sections 11, 12, 14 and 126 apply in relation to an Acting Insurance Commissioner in like manner as they apply in relation to the Commissioner.

“(8) The validity of anything done by a person purporting to act under sub-section (1) shall not be called in question on the ground that the occasion for his appointment had not arisen, that there is a defect or irregularity in or in connection with his appointment, that the appointment had ceased to have effect or that the occasion for him to act had not arisen or had ceased.

Delegation

“19a. (1) The Commissioner may, either generally or as otherwise provided by the instrument of delegation, by writing signed by him, delegate to a person all or any of his powers under this Act or the regulations, other than—

(a) this power of delegation; or

(b) the Commissioner’s powers under section 23 or 24.

“(2) A power so delegated, when exercised by the delegate, shall, for the purposes of this Act or the regulations, as the case requires, be deemed to have been exercised by the Commissioner.

“(3) A delegation under this section does not prevent the exercise of a power by the Commissioner.”.

(2) Where, immediately before the commencement of this section, a person was acting in the place of the Commissioner by virtue of an appointment under section 19 of the Principal Act, then, notwithstanding the repeal of that section by this Act, that section continues to apply to and in relation to that person as if that repeal had not been made.

9. Section 21 of the Principal Act is repealed and the following section is substituted:

Certain persons not to carry on insurance business

“21. (1) Subject to this Act, a person other than a body corporate or a Lloyd’s underwriter who carries on insurance business is, in respect of each day during which he so carries on insurance business (including the day of a conviction under this sub-section or any subsequent day), guilty of an offence punishable on conviction by a fine not exceeding $2,000.

“(2) Subject to this Act, a body corporate that carries on insurance business without being authorized under this Act to do so is, in respect of each day during which it so carries on insurance business (including the day of a

 

conviction under this sub-section or any subsequent day), guilty of an offence punishable on conviction by a fine not exceeding $20,000.

“(3) A Lloyd’s underwriter who carries on insurance business at any time after Part VII has ceased to have effect is, in respect of each day during which he so carries on insurance business (including the day of a conviction under this sub-section or any subsequent day), guilty of an offence punishable on conviction by a fine not exceeding $2,000.”.

Application for authority

10. (1) Section 22 of the Principal Act is amended by inserting after paragraph (2) (e) the following paragraph:

“(ea) if the name of the body corporate is reserved or registered under the law in force in a State or Territory relating to companies and the body corporate is neither incorporated, nor registered as a foreign company, under that law—the name of each such State or Territory and the date of reservation or registration;”.

(2) The amendment made by sub-section (1) does not apply in relation to an application made under sub-section 22 (1) of the Principal Act before the commencement of this section.

Authority to commence carrying on insurance business

11. Section 23 of the Principal Act is amended—

(a) by omitting “Treasurer” and substituting “Commissioner”;

(b) by omitting paragraph (a) and substituting the following paragraph:

“(a) where the body corporate has a share capital—the paid-up share capital of the body corporate is not less than $500,000;”;

(c) by omitting from paragraphs (b) and (c) “One hundred thousand dollars” and substituting “$1,000,000”;

(d) by adding at the end of paragraph (e) “and”;

(e) by omitting from paragraph (f) “and” (last occurring); and

(f) by omitting paragraph (g).

Authority to carry on insurance business for body corporate that carried on insurance business before 9 December 1971

12. Section 24 of the Principal Act is amended—

(a) by omitting paragraph (a) and substituting the following paragraph:

“(a) where the body corporate has a share capital—the paid-up share capital of the body corporate is not less than $500,000;”;

(b) by omitting from sub-paragraphs (b) (i) and (c) (i) “One hundred thousand dollars” and substituting “$1,000,000”;

(c) by omitting from sub-paragraphs (b) (ii) and (c) (ii) “fifteen per centum” and substituting “20%”;

(d) by adding at the end of paragraph (e) “and”;

(e) by omitting from paragraph (f) “and” (last occurring); and

 

(f) by omitting paragraph (g).

Repeal of section 26

13. Section 26 of the Principal Act is repealed.

Refusal to grant authority

14. (1) Section 27 of the Principal Act is amended by omitting sub-sections (1) and (2) and substituting the following sub-sections:

“(1) Where the Commissioner decides not to grant an authority to a body corporate under section 23 or 24 because he is not satisfied with respect to the matters referred to in whichever of those sections is applicable, he shall inform the Treasurer accordingly and the Treasurer shall, after having considered that information—

(a) grant the authority; or

(b) refuse to grant the authority.

“(2) Where the Treasurer decides under sub-section (1) to refuse to grant an authority to a body corporate, he shall notify the body corporate, in writing, of his decision.”.

(2) The amendment made by sub-section (1) does not apply in relation to a decision of the Treasurer under section 23 of the Principal Act made before the commencement of this section.

15. (1) Section 29 of the Principal Act is repealed and the following section is substituted:

Conditions to which authority is subject

“29. (1) Subject to this Part, an authority granted to a body corporate under this Part is subject to the following conditions:

(a) where the body corporate has a share capital—a condition that its paid-up share capital shall not at any time be less than $500,000;

(b) where the body corporate is incorporated in Australia—a condition that the value of its assets shall at all times exceed the amount of its liabilities by not less than—

(i) $1,000,000; or

(ii) 20% of its premium income during its last preceding financial year,

whichever is the greater;

(c) a condition that the value of the assets in Australia of the body corporate shall at all times exceed the amount of its liabilities in Australia by not less than—

(i) $1,000,000; or

(ii) 20% of its premium income in Australia during its last preceding financial year,

whichever is the greater;

 

(d) a condition that the body corporate shall, at all times other than a time at which an exemption from the requirements of section 34 is in force in respect of it, have arrangements for reinsurance, being arrangements approved by the Commissioner under that section, or, if it has been granted an exemption under that section, shall comply with the terms and conditions of that exemption;

(e) where a change occurs in the particulars specified in the application for the authority and referred to in paragraph 22 (2) (a), (b), (c), (d), (e), (ea) or (f) or in the matters contained in a document required to accompany that application—a condition that the body corporate shall, within a period of 21 days after the change occurs, or within such further period as the Commissioner, within that period of 21 days, approves, give to the Commissioner notice in writing signed by a director and specifying particulars of the change; and

(f) such other conditions (if any) as the Commissioner or the Treasurer, as the case may be, specifies in the authority.

“(2) The Commissioner or the Treasurer may, by notice in writing served on the body corporate, impose further conditions to which the authority of the body corporate is subject.

“(3) Subject to sub-section (5), where the authority of a body corporate is subject to a condition specified under paragraph (1) (f) or imposed under sub-section (2), and it appears at any time to the Commissioner or the Treasurer that the condition is no longer necessary or should be varied, the Commissioner or the Treasurer shall, by notice in writing served on the body corporate, revoke or vary the condition.

“(4) Subject to sub-section (5), where a body corporate whose authority is subject to a condition specified under paragraph (1) (f) or imposed under sub-section (2) applies to the Commissioner or the Treasurer, by notice in writing, for the condition to be revoked or varied, the Commissioner or the Treasurer shall—

(a) if it appears to him that the condition is no longer necessary or should be varied—revoke or vary the condition; or

(b) in any other case—refuse to revoke or vary the condition,

and shall serve on the body corporate notice in writing of his decision.

“(5) The Commissioner is not empowered by sub-section (3) or (4) to revoke or vary a condition specified, imposed or varied by the Treasurer.

“(6) Part VI applies to a decision of the Treasurer or the Commissioner under this section.

“(7) In this section, unless the contrary intention appears, ‘condition’ includes, where a condition is varied, the condition as varied.”.

(2) Where, immediately before the date on which section 29 of the Principal Act as amended by this Act applies in relation to a body corporate, the authority of the body corporate is subject to a condition specified or

 

imposed by the Treasurer or the Commissioner under a provision of section 29 of the Principal Act or of that section as having effect by virtue of sub-section 44 (3) of this Act, the condition has effect on and after that date as if it had been specified or imposed by the Treasurer or the Commissioner, as the case may be, under section 29 of the Principal Act as amended by this Act.

Assets

16. Section 30 of the Principal Act is amended—

(a) by omitting from paragraph (1) (c) “mortgaged or” (wherever occurring);

(b) by inserting after paragraph (1) (c) the following paragraph:

“(ca) where the whole or part of the undertaking, business or property of the body corporate is subject to a floating charge, that undertaking, business or property to the extent that it is so subject;”;

(c) by omitting from paragraph (1) (e) “six” and substituting “3”;

(d) by inserting after sub-section (2) the following sub-sections:

“(2a) The Commissioner shall, in exercising his power of approval under sub-section (2) in relation to a loan to, debenture of, or a share in, a related body corporate made or held by a body corporate, have regard to all matters that he considers relevant and, in particular, to the following matters:

(a) the proportion that the value of the loan, debenture or share, together with the aggregate value of all other loans to, debentures of, and shares in, the related body corporate made or held by the body corporate, whether approved under sub-section (2) or not, bears to the value of the assets of the body corporate not consisting of loans to, debentures of, or shares in, the related body corporate;

(b) the proportion that the value of the loan, debenture or share bears to the value of the assets of the related body corporate;

(c) the nature, and the degree of diversity, of the assets of the body corporate;

(d) the nature, and the degree of diversity, of the assets of the related body corporate;

(e) the nature of the business carried on by the related body corporate.

“(2b) For the purposes of sub-section (2a), the value of a loan, debenture or share that is not an asset within the meaning of this Part shall be determined as if it were such an asset.”; and

(e) by omitting from sub-section (3) “six months but not more than twelve months” and substituting “3 months but not more than 9 months”.

 

Liabilities

17. Section 31 of the Principal Act is amended—

(a) by omitting from sub-section (1) “provisions” and substituting “provision”;

(b) by omitting sub-sections (2) and (3) and substituting the following sub-sections:

“(2) For the purposes of this Act, a body corporate carrying on insurance business shall make in its accounts provision in respect of liabilities.

“(3) For the purposes of this Act, the Commissioner may, at any time, if he thinks fit, by notice in writing served on a body corporate carrying on insurance business, direct that the body corporate shall, within a specified period, not being less than 21 days, after the giving of the direction, make in its accounts provision, or further provision—

(a) of a specified amount; or

(b) of an amount determined in a specified manner,

in respect of liabilities.

“(3a) Part VI applies to a decision of the Commissioner under this section.

“(3b) Where a direction has been given to a body corporate under sub-section (3) and it appears at any time to the Commissioner that the direction is no longer necessary or should be varied, the Commissioner shall, by notice in writing served on the body corporate, revoke or vary the direction.

“(3c) Where a body corporate to which a direction has been given under sub-section (3) applies to the Commissioner, by notice in writing, for the direction to be revoked or varied, the Commissioner shall—

(a) if it appears to him that the direction is no longer necessary or should be varied—revoke or vary the direction; or

(b) in any other case—refuse to revoke or vary the direction,

and shall serve on the body corporate notice in writing of his decision.

“(3d) The powers of the Commissioner under this section are in addition to, and do not derogate from, the powers of the Commissioner or of the Treasurer under Part V.

“(3e) Where a body corporate in respect of which a direction has been given under sub-section (3) is commenced to be wound up, the direction ceases to have effect.

“(3f) A body corporate that fails to comply with a direction given to it under sub-section (3) is, in respect of each day during which it so fails to comply with the direction (including the day of a conviction

 

under this sub-section or any subsequent day), guilty of an offence punishable on conviction by a fine not exceeding $10,000.”; and

(c) by adding at the end thereof the following sub-section:

“(5) In this section, unless the contrary intention appears, ‘direction’ includes, where a direction is varied, the direction as varied.”.

Valuation of assets

18. Section 33 of the Principal Act is amended—

(a) by omitting from sub-section (3) “, (5)”;

(b) by omitting from sub-section (4) “(not being approved securities referred to in sub-section (5))”;

(c) by omitting sub-section (5); and

(d) by omitting from sub-section (6) “sub-sections (4) and (5)” and substituting “sub-section (4)”.

Exemption from requirement relating to assets in Australia

19. Section 35 of the Principal Act is amended by omitting from sub-section (1) “29 (d)” and substituting “29 (1) (c)”.

Cancellation of authority

20. Section 36 of the Principal Act is amended by adding at the end thereof the following sub-sections:

“(8) A reference in this section to a body corporate having no liabilities in respect of insurance business carried on by it in Australia shall be read as including a reference to a body corporate that has assigned the whole of its interests under all contracts of insurance in respect of insurance business carried on by it in Australia to another body corporate authorized under this Act to carry on insurance business.

“(9) In sub-section (8)—

‘assignment’ means an absolute assignment, but does not include an equitable assignment;

‘interests’ includes rights and benefits.”.

Exemption in respect of insurance business carried on for benefit of limited class of persons

21. (1) Section 37 of the Principal Act is amended by omitting from sub-sections (1) and (4) “Two hundred thousand dollars” and substituting “$500,000”.

(2) Section 37 of the Principal Act is amended—

(a) by inserting in sub-section (2) “or vary” after “revoke”;

(b) by inserting after sub-section (2) the following sub-section:

“(2a) Part VI applies to a decision of the Treasurer under this section made after the commencement of this sub-section.”;

 

(c) by inserting in sub-section (5) “, varied” after “given”; and

(d) by inserting in sub-section (5) “, variation” after “exemption” (last occurring).

Interpretation

22. Section 39 of the Principal Act is amended by omitting sub-section (1).

Accounting records

23. Section 40 of the Principal Act is amended—

(a) by omitting sub-section (3) and substituting the following sub-section:

“(3) The accounting records kept in accordance with sub-section (1) shall be kept in Australia.”;

(b) by omitting from sub-section (4) “referred to in sub-section (1) and the statements and records”;

(c) by omitting from sub-section (5) “, statements and records” (wherever occurring); and

(d) by omitting from sub-section (5) “(4)” and substituting “(3)”.

Accounts and statements to be lodged with Commissioner

24. (1) Section 44 of the Principal Act is amended by omitting sub-sections (4) and (5) and substituting the following sub-sections:

“(4) A body corporate authorized under this Act to carry on insurance business shall, within the period of 6 weeks after each 31 March, 30 June, 30 September and 31 December, lodge with the Commissioner—

(a) a statement of assets and liabilities on that day; and

(b) a statement of premiums and claims in respect of insurance business carried on by it during the period of 3 months ending on that day.

“(5) The statements lodged by a body corporate under sub-section (4) shall relate—

(a) to insurance business and other business carried on by it in Australia; and

(b) where the body corporate is incorporated in Australia—to all business of insurance and all other business carried on by it outside Australia.”.

(2) A date referred to in sub-section 44 (4) of the Principal Act as amended by sub-section (1) does not include a date before the commencement of this section.

Audit of accounts

25. Section 47 of the Principal Act is amended—

(a) by inserting after sub-section (1) the following sub-section:

“(1a) The body corporate shall make such arrangements as are necessary to enable the audit of the yearly statutory accounts in accordance with this Act.”; and

 

(b) by omitting from sub-section (2) “within the period of three months or, where sub-section 44 (6) applies to the body corporate, four months, after the end of each financial year of the body corporate” and substituting “for the purposes of this Part”.

Extension of time

26. Section 49 of the Principal Act is amended by omitting sub-section (2).

Report of inspector

27. (1) Section 60 of the Principal Act is amended—

(a) by omitting sub-section (1) and substituting the following sub-sections:

“(1) An inspector, not being the Commissioner—

(a) may make one or more reports in writing to the Commissioner during the investigation of the whole or a part of the affairs of a body corporate and shall, if so directed in writing by the Commissioner, make such reports as are specified in the direction; and

(b) shall, on a completion or termination of the investigation, report in writing to the Commissioner on the result of the investigation.

“(1a) An inspector, being the Commissioner—

(a) may make one or more reports in writing to the Treasurer during the investigation of the whole or a part of the affairs of a body corporate and shall, if so directed in writing by the Treasurer, make such reports as are specified in the direction; and

(b) shall on a completion or termination of the investigation, report in writing to the Treasurer on the result of the investigation.”;

(b) by inserting after sub-section (4) the following sub-section:

“(4a) The Commissioner shall forward to the Treasurer a copy of a report made to him under this section together with such report (if any) as he wishes to make in relation to the first-mentioned report.”;

(c) by inserting in sub-section (5), “or forwarded” after “made”; and

(d) by omitting from sub-sections (6) and (7) “the report” (first occurring) and substituting “a report”.

(2) The amendments made by sub-section (1) do not apply in relation to a report made under sub-section 60 (1) of the Principal Act before the commencement of this section.

Directions

28. Section 62 of the Principal Act is amended—

(a) by inserting in sub-section (1) “give directions to the body corporate with respect to the carrying on of insurance business by the body

 

corporate and, without limiting the generality of the directions that may be given, may” after “notice in writing served on the body corporate,”;

(b) by omitting from sub-section (2) “under” and substituting “of a direction of the kind referred to in”;

(c) by omitting sub-section (3) and substituting the following sub-section:

“(3) Part VI applies to a decision of the Treasurer under this section.”;

(d) by inserting in sub-section (6) “a direction given under” after “contravention of;

(e) by inserting in sub-section (7) “at any time” after “appears”;

(f) by inserting after sub-section (7) the following sub-section:

“(7a) Where a body corporate to which a direction has been given under this section applies to the Treasurer, by notice in writing, for the direction to be revoked or varied, the Treasurer shall—

(a) if it appears to him that the direction is no longer necessary or should be varied—revoke or vary the direction; or

(b) in any other case—refuse to revoke or vary the direction,

and shall serve on the body corporate notice in writing of his decision.”;

(g) by omitting sub-sections (9), (10) and (11) and substituting the following sub-sections:

“(9) A body corporate that contravenes or fails to comply with a direction given to it under sub-section (1), being a direction of the kind referred to in paragraph (1) (a), (b), (c) or (d), is, in respect of each day during which it so contravenes or fails to comply with the direction (including the day of a conviction under this sub-section or any subsequent day), guilty of an offence punishable on conviction by a fine not exceeding $20,000.

“(10) A body corporate shall not contravene or fail to comply with a direction given to it under sub-section (1), not being a direction of the kind referred to in paragraph (1) (a), (b), (c) or (d).

Penalty: $20,000.”;

(h) by omitting from sub-section (12) “paragraph (1) (a), (b), (c) or (d)” and substituting “this section, being a direction of the kind referred to in paragraph (1) (a), (b), (c) or (d),”; and

(j) by adding at the end thereof the following sub-section:

“(13) In this section, unless the contrary intention appears, ‘direction’ includes, where a direction is varied, the direction as varied.”.

Review of certain decisions

29. Section 63 of the Principal Act is amended by omitting from sub-section (6) “and his reasons” and substituting “, set out the findings on

 

material questions of fact, refer to the evidence or other material on which those findings were based and give his reasons”.

30. After section 63 of the Principal Act the following section is inserted in Part VI:

Statements to accompany notification of decisions

“64. (1) Where a reviewable decision of the Treasurer or the Commissioner within the meaning of section 63 is made and notice in writing of the decision is given to a person affected by the decision, that notice shall include a statement to the effect that—

(a) the person may, if he is dissatisfied with the decision, seek a reconsideration of the decision by the Treasurer or the Commissioner, as the case may be, in accordance with sub-section 63 (2); and

(b) a person whose interests are affected by the decision may, subject to the Administrative Appeals Tribunal Act 1975, if he is dissatisfied with a decision made by the Treasurer or the Commissioner upon that reconsideration confirming or varying the first-mentioned decision, make application to the Administrative Appeals Tribunal for review of the decision so confirmed or varied.

“(2) Where the Treasurer or the Commissioner confirms or varies a decision under sub-section 63 (4) and gives to a person notice in writing of the confirmation or variation of the decision, that notice shall include a statement to the effect that a person whose interests are affected by the decision may, subject to the Administrative Appeals Tribunal Act 1975, if he is dissatisfied with the decision so confirmed or varied, make application to the Administrative Appeals Tribunal for review of the decision.

“(3) Any failure to comply with the requirements of sub-section (1) or (2) in relation to a decision does not affect the validity of the decision.”.

Repeal of section 104

31. Section 104 of the Principal Act is repealed.

Bodies corporate ceasing to carry on insurance business

32. Section 105 of the Principal Act is amended—

(a) by omitting from sub-section (1) “carried on insurance business in Australia immediately before the date of commencement of section 21 and has” and substituting “, immediately before 1 August 1974, carried on insurance business in Australia and had”;

(b) by omitting sub-section (10) and substituting the following sub-section:

“(10) Part VI applies to a decision of the Treasurer under sub-section (8), (12) or (12a).”;

(c) by inserting in sub-section (12) “at any time” after “appears”;

 

(d) by inserting after sub-section (12) the following sub-section:

“(12a) Where a body corporate to which a direction has been given under this section applies to the Treasurer, by notice in writing, for the direction to be revoked or varied, the Treasurer shall—

(a) if it appears to him that the direction is no longer necessary or should be varied—revoke or vary the direction; or

(b) in any other case—refuse to revoke or vary the direction,

and shall serve on the body corporate notice in writing of his decision.”; and

(e) by adding at the end thereof the following sub-section:

“(16) In this section, unless the contrary intention appears, ‘direction’ includes, where a direction is varied, the direction as varied.”.

Persons ceasing to carry on insurance business

33. Section 106 of the Principal Act is amended—

(a) by omitting from sub-section (1) “has” and substituting “had”; and

(b) by omitting sub-section (2) and substituting the following sub-section:

“(2) A person who fails to comply with a notice served on him under sub-section (1) is, in respect of each day during which he so fails to comply with the notice (including the day of a conviction under this sub-section or any subsequent day), guilty of an offence punishable on conviction by a fine not exceeding $2,000.”.

Transitional provisions relating to bodies corporate refused authorities under section 27

34. Section 109 of the Principal Act is amended—

(a) by omitting from sub-section (1) “from time to time—

(a) give directions to the body corporate with respect to the carrying on of insurance business by the body corporate; and

(b) vary or revoke directions so given to the body corporate”,

and substituting “give directions to the body corporate with respect to the carrying on of its insurance business”;

(b) by inserting after sub-section (1) the following sub-sections:

“(1a) Where a direction has been given to a body corporate under sub-section (1) and it appears at any time to the Treasurer that the direction is no longer necessary or should be varied, the Treasurer shall, by notice in writing served on the body corporate, revoke or vary the direction.

 

“(1b) Where a body corporate to which a direction has been given under sub-section (1) applies to the Treasurer, by notice in writing, for the direction to be revoked or varied, the Treasurer shall—

(a) if it appears to him that the direction is no longer necessary or should be varied—revoke or vary the direction; or

(b) in any other case—refuse to revoke or vary the direction,

and shall serve on the body corporate notice in writing of his decision.”;

(c) by omitting sub-section (3) and substituting the following sub-section:

“(3) A body corporate that contravenes or fails to comply with a direction given to it under sub-section (1) is, in respect of each day during which it so contravenes or fails to comply with the direction (including the day of a conviction under this sub-section or any subsequent day), guilty of an offence punishable on conviction by a fine not exceeding $20,000.”; and

(d) by adding at the end thereof the following sub-sections:

“(6) Part VI applies to a decision of the Treasurer under this section made after the commencement of this sub-section.

“(7) In this section, unless the contrary intention appears, ‘direction’ includes, where a direction is varied, the direction as varied.”.

Power to require production of books

35. Section 115 of the Principal Act is amended by omitting from sub-section (1) “is complying” and substituting “has complied, or is complying,”.

Inspection of Register, accounts and auditors’ certificates

36. Section 123 of the Principal Act is amended—

(a) by inserting after paragraph (a) the following paragraph:

“(aa) inspect an auditor’s certificate lodged with the Commissioner under section 48;”; and

(b) by inserting in paragraph (c) “auditor’s certificate,” after “such an”.

Annual report

37. Section 125 of the Principal Act is amended by omitting sub-section (2).

Offences

38. Section 128 of the Principal Act is amended by omitting sub-section (1) and substituting the following sub-section:

“(1) Where a body corporate is guilty of an offence against sub-section 21 (2), section 22, sub-section 31 (3f) or 37 (6), section 40, 44 or 48, sub-section 51 (5), 62 (9) or (10), 105 (15), 109 (3) or 113 (3), a director, officer or auditor of the body corporate who is in any way, by act or omission, directly or

 

indirectly, knowingly concerned in or party to the offence, shall be deemed to be also guilty of that offence and is punishable on conviction—

(a) in the case of an offence against sub-section 21 (2), 31 (3f), 62 (9) or 109 (3)—by a fine not exceeding $2,000; or

(b) in the case of an offence against section 22, sub-section 37 (6), section 40, 44 or 48, sub-section 51 (5), 62 (10), 105 (15) or 113 (3)—by a fine not exceeding $4,000.”.

39. After section 129 of the Principal Act the following sections are inserted:

Joinder of charges and penalties for certain offences

“129a. (1) Charges against the same person for any number of offences against sub-section 21 (1), (2) or (3), 31 (3f), 62 (9), 106 (2) or 109 (3) may be joined in the same information or complaint if those offences relate to doing or failing to do the same act or thing.

“(2) If a person is convicted of 2 or more offences referred to in sub-section (1), being offences related to doing or failing to do the same act or thing, the court may impose one penalty in respect of both or all of those offences, but that penalty shall not exceed the sum of the maximum penalties that could be imposed if a penalty were imposed in respect of each offence separately.

Continuing offences

“129b. Where, by or under a provision of this Act, an act or thing is required to be done within a particular period or before a particular time, the obligation to do that act or thing continues, notwithstanding that that period has expired or that time has passed, until that act or thing is done.”.

Schedule

40. The Schedule to the Principal Act is amended by omitting from sub-paragraph 3 (6) “the prescribed form” and substituting “a form approved by the Treasurer by writing signed by him”.

Amendments relating to accounts and accounting records

41. The Principal Act is amended as set out in Schedule 1.

Amendments relating to penalties

42. The Principal Act is amended as set out in Schedule 2.

Formal amendments

43. The Principal Act is amended as set out in Schedule 3.

Application of certain amendments

44. (1) An amendment made by paragraph 3 (e), section 15, paragraph 16 (1) (b), (c) or (e), section 19, sub-section 21 (1) or section 23, 25 or 26 does not apply in relation to a financial year of a body corporate that commenced before the commencement of the amendment.

 

(2) A provision of the Principal Act affected by an amendment referred to in sub-section (1) continues to apply, as in force before the amendment, in relation to a financial year referred to in that sub-section.

(3) For the purposes of the application of section 29 of the Principal Act in accordance with sub-section (2), that section has effect as if the following sub-sections were added (the existing section 29 becoming sub-section (1)):

“(2) The Commissioner or the Treasurer may, by notice in writing served on the body corporate, impose further conditions to which the authority of the body corporate is subject.

“(3) Subject to sub-section (5), where the authority of a body corporate is subject to a condition specified under paragraph (1) (g) or imposed under sub-section (2), and it appears at any time to the Commissioner or the Treasurer that the condition is no longer necessary or should be varied, the Commissioner or the Treasurer shall, by notice in writing served on the body corporate, revoke or vary the condition.

“(4) Subject to sub-section (5), where a body corporate whose authority is subject to a condition specified under paragraph (1) (g) or imposed under sub-section (2) applies to the Commissioner or the Treasurer, by notice in writing, for the condition to be revoked or varied, the Commissioner or the Treasurer shall—

(a) if it appears to him that the condition is no longer necessary or should be varied—revoke or vary the condition; or

(b) in any other case—refuse to revoke or vary the condition, and shall serve on the body corporate notice in writing of his decision.

“(5) The Commissioner is not empowered by sub-section (3) or (4) to revoke or vary a condition specified, imposed or varied by the Treasurer.

“(6) Part VI applies to a decision made by the Treasurer or the Commissioner under this section after the commencement of section 15 of the Insurance Amendment Act 1983.

“(7) In this section, unless the contrary intention appears, ‘condition’ includes, where a condition is varied, the condition as varied.”.

PART III—INTERIM PROVISIONS

Interpretation

45. (1) In this Part—

“prescribed body corporate” means a body corporate authorized under the Insurance Act 1973 to carry on insurance business which lodges with the Commissioner, within a period of 28 days before the commencement of its first interim year (or such period after the commencement of its first interim year as the Commissioner, by notice in writing given to the body corporate, in accordance with section 121 of the Insurance Act 1973, within that period of 28 days, allows), a

 

notice in writing stating that it elects to be a body corporate to which this Part applies;

“interim year”, in relation to a body corporate, means one of the first 4 financial years of that body corporate commencing after the commencement of section 15.

(2) References in this Part to the premium income, and to the premium income in Australia, of a body corporate during its financial year have the same respective meanings as in Part III of the Insurance Act 1973.

Notification in Gazette of prescribed bodies corporate

46. The Commissioner shall cause the names of prescribed bodies corporate to be published in the Gazette.

Interim application of section 29 of the Insurance Act 1973 to prescribed bodies corporate

47. Section 29 of the Insurance Act 1973 applies to a prescribed body corporate—

(a) in relation to an interim year of that body corporate specified in Table A of Schedule 4, as if a reference in that section to an amount specified in Column 1 of that Table were a reference to the amount specified in relation to that year opposite that first-mentioned amount; and

(b) in relation to an interim year of that body corporate specified in Table B of Schedule 4, as if a reference in that section to 20% were a reference to the percentage specified in that Table in relation to that year.

Directions

48. (1) Where it appears to the Commissioner that, by reason of the activities of a prescribed body corporate in an interim year of that body corporate, the body corporate is, or is about to become, unable to meet its liabilities or has contravened or failed to comply with a provision of the Insurance Act 1973 or with a condition or a direction applicable to it under that Act he may, by notice in writing served on the body corporate in accordance with section 121 of that Act, give directions to the body corporate with respect to the carrying on of its insurance business.

(2) Where a direction has been given to a body corporate under sub-section (1) and it appears at any time to the Commissioner that the direction is no longer necessary or should be varied, the Commissioner shall, by notice in writing served on the body corporate, revoke or vary the direction.

(3) Where a body corporate to which a direction has been given under sub-section (1) applies to the Commissioner, by notice in writing, for the direction to be revoked or varied, the Commissioner shall—

(a) if it appears to him that the direction is no longer necessary or should be varied—revoke or vary the direction; or

(b) in any other case—refuse to revoke or vary the direction,

and shall serve on the body corporate notice in writing of his decision.

 

(4) A prescribed body corporate that contravenes or fails to comply with a direction given to it under sub-section (1) is, in respect of each day during which it so contravenes or fails to comply with the direction (including the day of a conviction under this sub-section or any subsequent day), guilty of an offence punishable on conviction by a fine not exceeding $20,000.

(5) Without limiting the directions that may be given to a body corporate under sub-section (1), the following directions may be given under that sub-section:

(a) a direction that the body corporate shall not issue policies or undertake liability under contracts of insurance;

(b) a direction that the body corporate shall not renew policies;

(c) a direction that the body corporate shall not issue policies in respect of insurance business included in a class of insurance business specified in the direction or undertake liability under contracts of insurance included in a class of contracts of insurance so specified;

(d) a direction that the body corporate shall not renew policies in respect of insurance business included in a class of insurance business specified in the direction;

(e) a direction that the body corporate shall limit the amount of its premium income during a specified financial year, or the amount of its premium income in Australia during a specified financial year, to a specified amount.

(6) Part VI of the Insurance Act 1973 applies to a decision of the Commissioner under sub-section (1), and, for the purposes of the definition of “reviewable decision of the Treasurer or the Commissioner” in sub-section 63 (1) of that Act, that Part shall be deemed so to apply by virtue of that Act.

(7) The powers conferred on the Commissioner by this section are in addition to, and do not derogate from, the powers conferred on the Commissioner or on the Treasurer by the Insurance Act 1973.

(8) Where a body corporate in respect of which a direction has been given under sub-section (1) is commenced to be wound up, the direction ceases to have effect.

(9) Nothing in this section affects the validity of a transaction entered into by a prescribed body corporate in contravention of a direction given under sub-section (1).

(10) A direction given under sub-section (1) has effect and shall be complied with notwithstanding anything in any law of a State or Territory.

(11) Section 19a of the Insurance Act 1973 applies in relation to the powers of the Commissioner under this section in like manner as it applies to the powers of the Commissioner under that Act.

 

(12) Section 129a of the Insurance Act 1973 applies to an offence against sub-section (4) as if references in that section to provisions of that Act included a reference to sub-section (2).

(13) Section 129b of the Insurance Act 1973 applies in relation to this section as if a reference in that section to a provision of that Act were a reference to this section.

(14) While a person is acting as the Commissioner he has and may exercise all the powers of the Commissioner under this section.

(15) In this section, unless the contrary intention appears, “direction” includes, where a direction is varied, the direction as varied.

—————

 

SCHEDULE 1 Section 41

AMENDMENTS RELATING TO ACCOUNTS AND ACCOUNTING RECORDS

Provision amended	Omit—	Substitute
Paragraph 22 (2) (g)	accounts	ordinary accounts
Paragraph 40 (1) (b)	accounts and statements referred to in sub-section 44 (1)	yearly statutory accounts
Paragraph 40 (1) (c)	accounts and statements	yearly statutory accounts
Sub-section 41 (1)	accounts	statutory accounts
Paragraph 41 (2) (a)	accounts	statutory accounts
Sub-section 42 (1)	accounts	statutory accounts
Sub-section 44 (7)	An account or statement lodged under any of the preceding provisions of this section, other than sub-section (3).	Statutory accounts lodged under sub-section (1), (4) or (6)
Sub-section 44 (8)	accounts and statements referred to in sub-section (1)	yearly statutory accounts
Sub-section 44 (9)	an account or statement	statutory accounts or a document referred to in sub-section (3)
Sub-section 45 (2)	A statement	Yearly statutory accounts
Sub-section 47 (1)	Accounts and statements required by sub-section 44 (1) to be lodged by a body corporate with the Commissioner	Yearly statutory accounts of a body corporate
Sub-section 47 (2)	accounts and statements in respect of that year	yearly statutory accounts
Sub-section 47 (3)	accounts and statements (wherever occurring)	yearly statutory accounts
Section 48	accounts and statements in respect of that year referred to in sub-section 44 (1)	yearly statutory accounts in respect of that year
Sub-section 49 (1)	an account, statement or certificate with him, extend, or further extend, the time for lodging the account, statement or certificate	with him statutory accounts, a certificate or a document referred to in sub-section 44 (3), extend, or further extend, the time for lodging the accounts, certificate or document
Paragraph 132 (c)	accounts and statements required under Part IV to be lodged with the Commissioner	statutory accounts and documents of the kind referred to in sub-section 44 (3)

—————

 

SCHEDULE 2 Section 42

AMENDMENTS RELATING TO PENALTIES

Provision amended	Omit—	Substitute—
Section 22	Ten thousand dollars	$20,000
Sub-section 37 (6)	Ten thousand dollars	$20,000
Section 40	Ten thousand dollars	$20,000
Section 44	Ten thousand dollars	$20,000
Section 48	Ten thousand dollars	$20,000
Section 51	Ten thousand dollars	$20,000
Sub-section 105 (15)	Ten thousand dollars	$20,000
Sub-section 113 (3)	(a) Ten thousand dollars	$20,000
(b) Two thousand dollars	$4,000
Sub-section 113 (4)	One thousand dollars	$2,000

—————

SCHEDULE 3 Section 43

FORMAL AMENDMENTS

Provision amended	Omit—	Substitute—
Sub-section 3 (1)	(a) 1959-1967	1959
(definition of “insurance business”)	(b) 1904-1972	1904
	(c) 1953-1972	1953
Sub-section 3 (1)	1945-1973	1945
(definition of “life insurance business”)
	Paragraph 5 (2) (b)	1965-1966	1965
Paragraph 5 (2) (e)	1946-1966	1946
Section 9	seven	7
Paragraph 14 (2) (c)	salary	remuneration
Section 20	1922-1973	1922
Section 22	(a) two	2
(b) one director	1 director
(c) five (wherever occurring)	5
(d) fourteen	14
Section 23	9th December, 1971	9 December 1971
Sub-paragraph 30 (1) (b) (ii)	One thousand dollars (wherever occurring)	$1,000
			Paragraph 30 (1) (f)	1945-1973	1945
Paragraph 31 (1) (b)	1945-1973	1945
Section 35	six (wherever occurring)	6
Section 36	(a) twelve (wherever occurring)	12
(b) one month (wherever occurring)	1 month
Sub-section 37 (4)	three	3
Section 40	seven	7
Section 43	seven	7
Section 44	(a) six (wherever occurring)	6

 

SCHEDULE 3—continued

Provision amended	Omit	Substitute
(b) two	2
(c) one director	1 director
(d) four	4
(e) five	5
(f) seven	7
Sub-section 45 (1)	(a) two	2
(b) one director	1 director
Section 48	(a) four	4
(b) five	5
Paragraph 51 (1) (a)	seven	7
Paragraph 51 (1) (b)	six	6
Sub-section 52 (1)	fourteen	14
Sub-section 54 (3)	One thousand dollars or imprisonment for three months	$1,000 or imprisonment for 3 months
			Sub-section 56 (1)	(a) A person under this Part,	A person
(b) One thousand dollars or imprisonment for three months	$1,000 or imprisonment for 3 months
		Sub-section 61 (1)	One thousand dollars or imprisonment for three months	$1,000 or imprisonment for 3 months
Paragraph 62 (1) (f)	twenty-one	21
Sub-section 93 (2)	fourteen	14
Sub-section 93 (3)	three (wherever occurring)	3
Paragraph 93 (6) (a)	(3);	(3); or
Paragraph 93 (6) (b)	three	3
Paragraph 93 (6) (d)	one month	1 month
Paragraph 93 (6) (e)	one month	1 month
Paragraph 94 (2) (b)	thirty	30
Sub-section 105 (1)	(a) 1932-1973	1932
(b) three	3
(c) seven	7
Sub-section 105 (2)	fourteen	14
Sub-section 105a (1)	the commencement of section 21	1 August 1974
Sub-section 105a (2)	the date of commencement of section 21	1 August 1974
Sub-section 106 (1)	(a) the date of commencement of section 21	1 August 1974
(b) 1932-1973	1932
(c) seven	7
Sub-section 107 (1)	the expiration of the period of six months after the date of commencement of that section	1 February 1975
			Sub-paragraph 107 (2) (a) (i)	the date of commencement of section 21	1 August 1974
Sub-paragraph 107 (2) (a) (ii)	the date referred to in sub-paragraph (i)	1 August 1974
Paragraph 107 (2) (b)	the date of commencement of section 21	1 August 1974
Section 108	(a) the date of commencement of section 21 (wherever occurring)	1 August 1974
			(b) three months after that date (wherever occurring)	3 months after 1 August 1974
	(c) that commenced on that date	that commenced on 1 August 1974
	Sub-section 109 (1)	the date of commencement of section 21	1 August 1974

 

SCHEDULE 3—continued

Provision amended	Omit—	Substitute—
Section 119	1959-1967	1959
Section 125	30th June	30 June
Sub-section 127 (2)	1905-1966	1905
Sub-section 128 (2)	One thousand dollars or imprisonment for three months	$1,000 or imprisonment for 3 months
Section 129	three	3
Paragraph 132 (f)	(a) One thousand dollars	$1,000
(b) three	3
SCHEDULE—
Paragraph 1	(a) twenty-eight (wherever occurring)	28
(b) Five hundred thousand dollars (wherever occurring)	$500,000
		(c) 31st December (wherever occurring)	31 December
SCHEDULE—
Paragraph 2	(a) twenty-eight	28
(b) 1959-1967 (wherever occurring)	1959
(c) 30th June (wherever occurring)	30 June
(d) 31st December (wherever occurring)	31 December
(e) sixty (wherever occurring)	60
SCHEDULE—
Paragraph 3	(a) 30th April	30 April
(b) 31st December (wherever occurring)	31 December
		(c) six	6
SCHEDULE—
Paragraph 4	(a) 31st March	31 March
(b) 31st December (wherever occurring)	31 December
	(c) twenty-eight	28
(d) nine	9
(e) six	6
SCHEDULE—
Paragraph 5	twenty-eight	28
SCHEDULE—
Sub-paragraph 6 (1)	fourteen	14
SCHEDULE—
Sub-paragraph 7 (1)	fourteen	14
SCHEDULE—
Paragraph 8	twenty-one	21
SCHEDULE—
Sub-paragraph 9 (1)	1959-1967	1959
SCHEDULE—
Paragraph 10	1936-1972 (wherever occurring)	1936

————

 

SCHEDULE 4 Section 47

INTERIM APPLICATION OF SECTION 29 OF THE INSURANCE ACT 1973 TO PRESCRIBED BODIES CORPORATE

TABLE A

Column 1	Column 2	Column 3	Column 4	Column 5
Reference in Section 29 of the Insurance Act 1973	First Interim Year	Second Interim Year	Third Interim Year	Fourth Interim Year
					(a) $500,000	$200,000	$200,000	$300,000	$400,000
					(b) $1,000,000	$100,000	$250,000	$500,000	$750,000

TABLE B

First Interim Year	Second Interim Year	Third Interim Year	Fourth Interim Year
				15%	15%	17.5%	17.5%

NOTE

1. No. 76, 1973, as amended. For previous amendments, see No. 216, 1973; No. 157, 1976; and No. 31, 1977.