Insurance Regulations 1974 (Cth)

Insurance Regulations 1974

Statutory Rules 1974 No. 141 as amended

made under the

Insurance Act 1973

This compilation was prepared on 12 April 2001

taking into account amendments up to SR 2001 No. 71

Prepared by the Office of Legislative Drafting,

Attorney-General’s Department, Canberra

Contents

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1Name of Regulations [see Note 1]

 These Regulations are the Insurance Regulations 1974.

2 Interpretation

• (1)

  In these Regulations, unless the contrary intention appears:

applicant means a body corporate that has made application under section 22 of the Act for an authority to carry on insurance business.

class of insurance business means a class of insurance business specified in regulation 9.

the Act means the Insurance Act 1973.

the forms determination means Determination No. 1 of 1998 made by the Commissioner on 1 May 1998 for:

• (a)

  subsection 34A (5) of the Act with respect to the form of statements of reinsurance; and

• (b)

  subsections 44 (6) and (7) and 49J (5) of the Act with respect to the form of statutory accounts; and

• (c)

  paragraphs 45 (2) (a) and (3) (a) and 49K (2) (a) and (3) (a) of the Act with respect to the form of certificate to accompany statutory accounts lodged under subsection 44 (1) or 49J (1) of the Act.

3Reference to forms

 In these Regulations, unless the contrary intention appears, a reference to a form by number is a reference to the form so numbered in the forms determination.

3ARequest for forms

 On request, APRA or ASIC must give a person a copy of a form.

3BFilling in and lodging forms

• (1)

  A form must be filled in as required by a direction mentioned in the form.

• (2)

  A form, and any attachment to a form, may be lodged on paper or electronically, unless the contrary intention appears in a direction mentioned in the form.

3CForms and attachments lodged on paper

(1) This regulation applies to a form, or an attachment to a form, that is lodged on paper.

• (2)

  APRA or ASIC may refuse to accept a form, or an attachment to the form, unless the form or attachment:

  • (a)

    is clearly and legibly written; and

  • (b)

    can be clearly and legibly reproduced by APRA or ASIC.

• (3)

  The name of a person who signs a form or any attachment to the form, and the date of signature, must be legibly written under or beside the signature.

• (4)

  An attachment to a form must:

  • (a)

    have an identifying mark; and

  • (b)

    be endorsed with the words:

   “This is the attachment of (insert the number of pages) pages marked (insert an identifying mark) referred to in the (insert a description of the form) signed by (insert ‘me’ or ‘us’) and dated (insert the date of signing)”; and

  • (c)

    be signed and dated by each person signing the form.

• (5)

  The pages in an attachment to a form must be numbered consecutively beginning with “1”.

4AAPrescribed companies for the purposes of paragraph 5 (2) (ga) of the Act

For the purposes of paragraph 5 (2) (ga) of the Act, National Deposit Insurance Corporation Limited is a prescribed company.

4APrescribed bodies for the purposes of subsection 5 (3) of the Act

• (1)

  For the purposes of subsection 5 (3) of the Act, each of the following bodies is a prescribed body:

  • (a)

    Municipal Association of Tasmania;

  • (b)

    Municipal Association of Victoria.

• (2)

  The Act is not to apply with respect to the carrying on by the Municipal Association of Tasmania of the business of fidelity guarantee insurance.

• (3)

  The Act is not to apply with respect to the carrying on by the Municipal Association of Victoria of the following classes of insurance business:

  • (a)

    fidelity guarantee insurance;

  • (b)

    personal accident insurance.

5Particulars to be given concerning applicants

For the purposes of paragraph 22 (2) (m) of the Act, the following are prescribed matters:

• (a)

  the name of each State and Territory in which the applicant carries on insurance business, the name of each State and Territory in which the applicant intends during the five years following the date of the application to carry on insurance business and the name of each State and Territory in which the applicant carries on insurance business but intends to cease doing so during the five years following the date of the application;

• (c)

  in respect of each body corporate that is, for the purposes of the Act, a body corporate related to the applicant:

  • (i)

    the name of the related body corporate; and

  • (ii)

    if the place of incorporation of the related body corporate is in Australia, the address of its registered office in the State or Territory in which it is incorporated; and

  • (iii)

    if the place of incorporation of the related body corporate is not in Australia, the address of its head office and the address of its chief office in Australia; and

  • (iv)

    the nature of the business of the related body corporate; and

  • (v)

    each of the circumstances by reason of which the related body corporate is, for the purposes of the Act, a body corporate related to the applicant; and

  • (vi)

    the latest balance sheet, profit and loss account and any other financial statement required to be given to ASIC under the Corporations Law;

• (d)

  particulars of the nature of, and all considerations and other benefits passing under, each agreement to which the applicant and:

  • (i)

    any director of the applicant; or

  • (ii)

    a person who is to be appointed an agent of the applicant in pursuance of section 118 of the Act;

 are parties;

• (e)

  particulars of the parties to and the substance of any agreement other than a reinsurance agreement which the applicant has with any person or body corporate carrying on insurance business; and

• (f)

  particulars, as specified in regulation 6, in respect of each person who is to be, or has been appointed, by the applicant to act as its auditor for the purposes of Part IV of the Act.

5AApplication for approval of appointment of auditors

• (1)

  Where a person appointed to act as the auditor of a body corporate for the purposes of Part IV of the Act ceases so to act, the body corporate shall apply to APRA in writing for approval, under section 46 of the Act, of the appointment of another person to act as auditor of the body corporate for the purposes of that Part.

• (2)

  An application under subregulation (1) shall:

  • (a)

    set out particulars, as specified in regulation 6, in respect of the person who is to be, or has been, appointed by the applicant to act as its auditor for the purposes of Part IV of the Act; and

  • (b)

    specify the reasons for the change of auditor.

6Particulars — proposed auditors of applicants

• (1)

  The following particulars are specified for the purposes of paragraph 5 (f) and subregulation 5A (2):

  • (a)

    the name and address of the person;

  • (b)

    whether or not the person is a director or employee of the applicant;

  • (c)

    whether the person is a registered company auditor;

  • (d)

    the experience of the person which would enable him to competently audit accounts of insurance business; and

  • (e)

    particulars of the interests which the person has in:

    • (i)

      any shares in, debentures of, or managed investment schemes made available by, the applicant; or

    • (ii)

      rights and options in relation to the acquisition or disposal of shares in, debentures of, or managed investment schemes made available by, the applicant; or

    • (iii)

      contracts under which the person or any other person has (directly or indirectly) a right to call for or make delivery of shares in, debentures of, or managed investment schemes made available by, the applicant.

• (2)

  In this regulation:

managed investment scheme has the same meaning as in the Corporations Law.

7Documents to be lodged with applications

• (1)

  For the purposes of paragraph 22 (3) (c) of the Act, the following are prescribed as documents to accompany an application for an authority to carry on insurance business:

  • (a)

    if the place of incorporation of the applicant is in Australia:

    • (i)

      a photocopy of the certificate of incorporation of the applicant; and

    • (ii)

      a statement of any State or Territory where the applicant intends to carry on business;

  • (b)

    a photocopy of the certificate of registration of the applicant by ASIC as a foreign company;

  • (c)

    statements in accordance with Forms 102, 103 and 211 made as at a date not more than 3 months before the date of the application; and

  • (h)

    copies of all accounts, statements and reports laid before the shareholders of the applicant at the last three annual general meetings of the shareholders or, if less than three annual general meetings of the shareholders of the applicant have been held, copies of the accounts, statements and reports laid before the annual general meetings of shareholders which have been held.

• (2)

  Two copies of accounts, statements or reports referred to in paragraphs (1) (c) and (h) must be lodged with APRA.

8Valuation of assets for statements of assets and liabilities

• (1)

  This regulation applies to statements mentioned in paragraph 7 (1) (c) and lodged with APRA under subregulation 7 (2).

• (2)

  The values shown in the statements for the assets and classes of assets mentioned in the forms must be the values determined under subsections 33 (4) and (6) of the Act.

8AAPrescribed law (Act s 32)

For paragraphs 32 (1) (f) and (2) (f) of the Act, the A New Tax System (Goods and Services Tax) Act 1999 is prescribed.

8AExemption limit for premiums (Act, subsection 37 (1A))

 For the purposes of subsection 37 (1A) of the Act, the exemption limit is $1,500,000.

9Classes of insurance business prescribed under subsection 42 (2) of the Act

 For Part IV of the Act, each of the following is a prescribed class of insurance business:

• (a)

  commercial motor vehicle insurance;

• (b)

  comprehensive motor vehicle insurance;

• (c)

  compulsory third party motor vehicle insurance;

• (d)

  construction insurance;

• (e)

  consumer credit insurance;

• (f)

  domestic motor vehicle insurance;

• (g)

  employers’ liability insurance;

• (h)

  excess of loss treaty insurance;

• (i)

  facultative insurance;

• (j)

  fire and industrial special risks insurance;

• (k)

  houseowners’ and householders’ insurance;

• (l)

  inward treaty insurance;

• (m)

  marine and aviation insurance;

• (n)

  mortgage insurance;

• (o)

  other accident insurance;

• (p)

  professional indemnity insurance;

• (q)

  proportional treaty insurance;

• (r)

  public and product liability insurance;

• (s)

  travel insurance;

• (t)

  any other insurance.

10Apportionment of receipts and payments between classes of insurance business

For the purposes of subsection 42 (1) of the Act, a body corporate authorized under the Act to carry on insurance business which carries on more than one class of insurance business shall for the purposes of Part IV of the Act:

• (a)

  apportion or allocate in its statutory accounts each amount received by it or allowed to it in respect of more than one class of insurance business as follows:

  • (i)

    where the body corporate, in charging, claiming, requesting or agreeing to accept the amount received or allowed, intended that specific portions of it should be accepted in respect of each of the several classes of insurance business in respect of which the payment or allowance was made, then the amount received by or allowed to the body corporate shall be apportioned or allocated amongst the classes of insurance business in respect of which it was received or allowed so that the amount apportioned or allocated to each of those classes corresponds to the amount which the body corporate intended should be accepted in respect of that class; or

  • (ii)

    where the body corporate, in charging, claiming, requesting or agreeing to accept the amount received or allowed did not intend that specific portions of it should be accepted in respect of each of the several classes of insurance business in respect of which the payment or allowance was made then the amount received by or allowed to the body corporate shall be allocated to the class of insurance business with which the payment or allowance is proportionately most concerned; and

• (b)

  apportion or allocate in its statutory accounts each amount paid or allowed by it to another in respect of more than one class of insurance business as follows:

  • (i)

    where the body corporate, in paying or allowing the amount, intended that specific portions of it should be paid or allowed in respect of each of the several classes of insurance business in respect of which the payment or allowance was made then the amount paid or allowed by the body corporate shall be apportioned or allocated amongst the classes of insurance business in respect of which the payment or allowance was made so that the amount apportioned or allocated to each of those classes corresponds to the amount which the body corporate intended should be paid or allowed in respect of that class; or

  • (ii)

    where the body corporate in paying or allowing the amount did not intend that specific portions of it should be paid or allowed in respect of each of the several classes of insurance business in respect of which the payment or allowance was made then the amount paid or allowed by the body corporate shall be allocated to the class of insurance business with which the payment or allowance is proportionately most concerned.

12ALloyd’s statement of premium income

• (1)

  For the purposes of paragraph 4 of the Schedule to the Act, a statement of the premium income in Australia of Lloyd’s underwriters received by or due to Lloyd’s underwriters during a year shall be in accordance with Form 17 in the Schedule.

• (2)

  A statement furnished to APRA in pursuance of paragraph 4 of the Schedule to the Act shall be signed by:

  • (a)

    2 members of the Committee of Lloyd’s constituted under the Imperial Act known as Lloyd’s Act 1871; or

  • (b)

    the person appointed by Lloyd’s as, or to act as, its agent in accordance with paragraph 6 of the Schedule to the Insurance Act 1973.

14Certain accounts not to be audited

 For subsection 47 (1) of the Act, Forms 100, 211, 212, 213, 214, 215, 216, 401, 402, 403, 404 and 405 are prescribed.

25Prescribed amount — subsection 44 (6)

For the purposes of subsection 44 (6) of the Act, $250,000 is the prescribed amount.

26Notice of commencement and cessation of businesses

A body corporate authorized under the Act to carry on insurance business shall:

• (a)

  if it was not carrying on insurance business in Australia at the date of its application under section 22 of the Act for authority to carry on insurance business, advise APRA in writing of the date upon which it commenced to carry on insurance business in Australia within seven days after that date; and

• (b)

  advise APRA in writing of the date on which it ceases to carry on insurance business in Australia within seven days after that date.

  Penalty:   $500.

26ACodes of insurance practice — section 113 of Act

• (1)

  For section 113 of the Act, there is prescribed the business that is the undertaking of liability under a contract of insurance that is a prescribed contract under section 34 of the Insurance Contracts Act 1984.

• (2)

  In subregulation (1), contract of insurance includes an interim contract of insurance within the meaning of subsection 11 (2) of the Insurance Contracts Act 1984.

27Applications under section 123 of the Act

An application under section 123 of the Act shall be made in writing.

28Prescribed fee — section 123

A fee of $10 is prescribed for the purposes of section 123 of the Act.

29Copies of documents to be provided by APRA

• (1)

  APRA must:

  • (a)

    on the request of a person; and

  • (b)

    on payment of the fee calculated in accordance with subregulation (2);

 give to the person a copy of the whole or part of a document referred to in section 123 of the Act.

• (2)

  The fee payable under subregulation (1) is:

  • (a)

    an amount calculated at the rate of $1 for each page of a copy of the whole or part of the document; or

  • (b)

    if, at the request of the person, the copy of the document is made available on a data processing device or by way of electronic transmission, an amount:

    • (i)

      subject to subparagraph (ii), that is calculated at the rate of $1 for each page of the whole or part of the document; and

    • (ii)

      if the fee is payable for a document, or documents, in respect of a single financial year in relation to a body corporate authorised under the Act to carry on insurance business — that does not exceed $60.

ScheduleForms

(subregulation 3 (1))

Form 17

COMMONWEALTH OF AUSTRALIA

Insurance Act 1973

STATEMENT OF PREMIUM INCOME IN AUSTRALIA OF LLOYD’S UNDERWRITERS RECEIVED BY OR DUE TO LLOYD’S UNDERWRITERS DURING THE YEAR ENDING ON 31 DECEMBER 19.......

 

Class of Business

Premium income in Australia received or due

$’000

A.

 Accident and Health

B.

 Motor Vehicle Damage and Liability

C.

 Aircraft Damage and Liability

D.

 Ships’ Damage and Liability

E.

 Goods in Transit

F.

 Proper Damage

G.

 General Liability

H.

 Pecuniary Loss

 Total

 Signature of.........................…………......

 

Committee members

 / /19

 or signature of Lloyd’s

 Agent

DIRECTION FOR COMPLETING FORM 17

Amounts to be rounded to nearest $1,000

 1.Amounts (other than $1,000 or a multiple of $1,000) must be rounded to the nearest amount of that kind: see subregulation 2 (2A)

Examples:

• (a)

  $10,500 must be rounded down to $10,000;

• (b)

  $25,501 must be rounded up to $26,000.

Notes to the Insurance Regulations 1974

Note 1

The Insurance Regulations 1974 (in force under the Insurance Act 1973) as shown in this compilation comprise Statutory Rules 1974 No. 141 amended as indicated in the Tables below.

For all relevant information pertaining to application, saving or transitional provisions see Table A.

Table of Statutory Rules

Year and number	Date of notification in Gazette	Date of commencement	Application, saving or transitional provisions
1974 No. 141	8 Aug 1974	8 Aug 1974
1976 No. 90	30 Mar 1976	30 Mar 1976	—
1976 No. 126	22 June 1976	22 June 1976	—
1976 No. 139	30 June 1976	30 June 1976	—
1976 No. 288	20 Dec 1976	20 Dec 1976	—
1977 No. 213	14 Nov 1977	14 Nov 1977	—
1980 No. 107	22 May 1980	22 May 1980	—
1981 No. 209	30 July 1981	30 July 1981	—
1985 No. 189	6 Aug 1985	Rr. 7, 16 and 17: 1 Oct 1985 Remainder: 6 Aug 1985	—
1987 No. 340	11 Jan 1988	11 Jan 1988	—
1990 No. 446	21 Dec 1990	21 Dec 1990	—
1992 No. 177	25 June 1992	1 July 1992	R. 27
1994 No. 277	2 Aug 1994	2 Aug 1994	—
1995 No. 140	15 June 1995	15 June 1995	—
1996 No. 45	17 Apr 1996	17 Apr 1996	—
1996 No. 302	18 Dec 1996	18 Dec 1996	—
1997 No. 172	30 June 1997	30 June 1997	—
1997 No. 224	27 Aug 1997	27 Aug 1997	—
1997 No. 235	10 Sept 1997	10 Sept 1997	—
1997 No. 369	15 Dec 1997	1 Jan 1998	—
1998 No. 80	5 May 1998	5 May 1998	—
1998 No. 189	30 June 1998	Rr. 9.2, 9.3: 1 July 1998 (see (a) and Gazette 1998, No. S317) Remainder: 1 July 1998	—
2001 No. 71	12 Apr 2001	12 Apr 2001	—

(a) Regulation 1 of Statutory Rules 1998 No. 189 provides as follows:

1.1 Subject to subregulation 1.2, these regulations commence on 1 July 1998.

2.2 Subregulations 9.2 and 9.3 commence on the commencement of the Managed Investments Act 1998.

The Managed Investments Act 1998 commenced immediately after all the items in Schedules 1–4 of the Company Law Review Act 1998 commenced.

Table of Amendments

ad. = added or inserted  am. = amended rep. = repealed rs. = repealed and substituted
Provision affected	How affected
R. 1..........................................	rs. 2001 No. 71
R. 2..........................................	rs. 1976 No. 139
am. 1977 No. 213; 1992 No. 177; 1994 No. 277; 1997 No. 369; 1998 No. 189
R. 3..........................................	am. 1976 No. 139; 1990 No. 446; 1992 No. 177
rs. 1997 No. 369
R. 3A.......................................	ad. 1997 No. 369
am. 1998 No. 189
R. 3B.......................................	ad. 1997 No. 369
R. 3C.......................................	ad. 1997 No. 369
am. 1998 No. 189
R. 4..........................................	am. 1981 No. 209
rs. 1992 No. 177
rep. 1998 No. 189
R. 4AA.....................................	ad. 1987 No. 340
R. 4A.......................................	ad. 1976 No. 90
rs. 1977 No. 213; 1980 No. 107
R. 5..........................................	am. 1985 No. 189; 1992 No. 177; 1998 No. 189
R. 5A.......................................	ad. 1985 No. 189
am. 1998 No. 189
R. 6..........................................	am. 1981 No. 209; 1985 No. 189; 1992 No. 177; 1998 No. 189
R. 7..........................................	am. 1981 No. 209; 1985 No. 189; 1992 No. 177; 1997

No. 369; 1998 No. 189
R. 8..........................................	am. 1985 No. 189
rs. 1997 No. 369
am. 1998 No. 189
R. 8AA.....................................	ad. 2001 No. 71
R. 8A.......................................	ad. 1996 No. 45
R. 9..........................................	am. 1992 No. 177
rs. 1994 No. 277; 1997 No. 369
R. 10........................................	am. 1985 No. 189
R. 11........................................	am. 1985 No. 189; 1992 No. 177
rep. 1997 No. 369
R. 12........................................	rs. 1992 No. 177
am. 1994 No. 277
rep. 1997 No. 369
R. 12A.....................................	ad. 1976 No. 288
am. 1981 No. 209; 1997 No. 369; 1998 No. 189
R. 13........................................	am. 1985 No. 189
rs. 1992 No. 177
rep. 1997 No. 369
R. 14........................................	rs. 1992 No. 177; 1997 No. 369
R. 15........................................	rep. 1992 No. 177
R. 16........................................	am. 1985 No. 189
rep. 1992 No. 177
R. 17........................................	rep. 1992 No. 177
R. 18........................................	rs. 1985 No. 189
rep. 1992 No. 177
R. 18A.....................................	ad. 1985 No. 189
rep. 1992 No. 177
Rr. 19–21................................	rep. 1992 No. 177
R. 22........................................	rs. 1976 No. 139
am. 1977 No. 213; 1981 No. 209; 1985 No. 189
rep. 1992 No. 177
Rr. 23, 24................................	am. 1985 No. 189
rep. 1992 No. 177
R. 25........................................	am. 1990 No. 446
R. 26........................................	am. 1998 No. 189
R. 26A.....................................	ad. 1997 No. 224
R. 27........................................	ad. 1976 No. 126
R. 28........................................	ad. 1976 No. 126
am. 1985 No. 189; 1990 No. 446
R. 29........................................	ad. 1976 No. 126
rs. 1990 No. 446
am. 1992 No. 177; 1998 No. 189
R. 30........................................	ad. 1997 No. 235
am. 1998 No. 80
rep. 1998 No. 189
Rr. 31, 32................................	ad. 1997 No. 235
rep. 1998 No. 189
Heading to The Schedule....	rep. 1992 No. 177
Heading to Schedule............	ad. 1992 No. 177
The Schedule.........................	am. 1976 Nos. 139 and 288; 1977 No. 213; 1981 No. 209; 1985 No. 189; 1990 No. 446; 1992 No. 177
rep. 1994 No. 277
Schedule.................................	ad. 1994 No. 277
am. 1995 No. 140; 1996 No. 302; 1997 No. 172; 1997 No. 369
Forms 1–3...........................	1974 No. 141
am. 1981 No. 209
rs. 1992 No. 177; 1994 No. 277
rep. 1997 No. 369
Form 4.................................	1974 No. 141
am. 1981 No. 209; 1985 No. 189
rs. 1992 No. 177; 1994 No. 277
am. 1996 No. 302; 1997 No. 172
rep. 1997 No. 369
Form 5.................................	1974 No. 141
am. 1977 No. 213; 1981 No. 209
rs. 1992 No. 177; 1994 No. 277
rep. 1997 No. 369
Form 6.................................	1974 No. 141
am. 1981 No. 209
rs. 1985 No. 189; 1992 No. 177; 1994 No. 277
rep. 1997 No. 369
Forms 7, 8...........................	1974 No. 141
am. 1981 No. 209
rs.1992 No. 177; 1994 No. 227
rep. 1997 No. 369
Form 9.................................	1974 No. 141
am. 1981 No. 209
rs. 1992 No. 177; 1994 No. 277; 1996 No. 302
rep. 1997 No. 369
Form 10...............................	1974 No. 141
am. 1981 No. 209
rs. 1992 No. 177; 1994 No. 227
rep. 1997 No. 369
Form 11...............................	1974 No. 141
rs. 1976 No. 139
am. 1981 No. 209; 1985 No. 189
rs. 1992 No. 177; 1994 No. 277
rep. 1997 No. 369
Form 12...............................	1974 No. 141
am. 1981 No. 209
rs. 1992 No. 177; 1994 No. 277
am. 1995 No. 140
rep. 1997 No. 369
Form 13...............................	1974 No. 141
am. 1981 No. 209
rs. 1992 No. 177; 1994 No. 277
rep. 1997 No. 369
Form 14...............................	1974 No. 141
am. 1981 No. 209
rep. 1985 No. 189
Form 15...............................	1974 No. 141
am. 1981 No. 209
rs. 1990 No. 446; 1992 No. 177; 1994 No. 277
rep. 1997 No. 369
Form 16...............................	1974 No. 141
am. 1981 No. 209
rs. 1985 No. 189; 1992 No. 177; 1994 No. 277
am. 1996 No. 302
rep. 1997 No. 369
Form 17...............................	ad. 1976 No. 288
am. 1985 No. 189
rs. 1994 No. 277
Form 18...............................	ad. 1992 No. 177
rs. 1994 No. 277
rep. 1997 No. 369
Form 19...............................	ad. 1992 No. 177
rep. 1994 No. 277

Table AApplication, saving or transitional provisions

Statutory Rules 1992 No. 177

27Transitional

• 27.1

  Form 15 in the Schedule as in force on 30 June 1992 continues to apply in respect of a month before April 1992.

• 27.2

  Form 16 in the Schedule as in force on 30 June 1992 continues to apply in respect of a period of 3 months ending on 31 March, 30 June, 30 September or 31 December before April 1992.

• 27.3

  The Forms, other than Forms 15, 16 and 17, in the Schedule as in force on 30 June 1992 continue to apply in relation to the insurance business of a body corporate in respect of a financial year of the body corporate ending before 30 June 1992.