Insurance Regulations (Amendment) (Cth)

Statutory Rules 1994

No. 277 1

__________________

Insurance Regulations 2(Amendment)

I, The Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Insurance Act 1973.

Dated 26 July 1994.

 BILL HAYDEN

 Governor-General

By His Excellency’s Command,

PAUL ELLIOTT

Parliamentary Secretary to the Treasurer

for the Treasurer

____________

1.   Amendment

1.1   The Insurance Regulations are amended as set out in these Regulations.

[NOTE: These Regulations commence on gazettal: see Acts Interpretation Act 1901, s. 48.]

2.   Regulation 2 (Interpretation)

2.1   After subregulation 2 (2), insert:

“(2A)

A requirement in a form to state an amount in monetary terms is taken to be a requirement to state that amount rounded to the nearest amount that is $1,000 or a multiple of $1,000 (unless it is already such an amount).

[Examples:

(a)

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

(b)

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

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

3.1   Omit the regulation, substitute:

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

“9.

(1) For the purposes of Part IV of the Act, each of the following is a prescribed class of insurance business in relation to a body corporate that does not undertake liability by way of reinsurance:

 (a) industrial special risks insurance;

(b)

fire insurance;

(c)

houseowners’ and householders’ insurance;

(d)

compulsory third party motor vehicle insurance;

(e)

commercial motor vehicle insurance;

(f)

domestic motor vehicle insurance;

(g)

construction insurance;

(h)

marine hull insurance;

(i)

marine cargo insurance;

(j)

aviation insurance;

(k)

professional indemnity insurance;

(l)

product liability insurance;

(m)

public liability insurance;

(n)

employers’ liability insurance;

(o)

loan, mortgage and lease insurance;

(p)

trade credit insurance;

(q)

consumer credit insurance;

(r)

extended warranty insurance;

(s)

sickness and accident insurance;

(t)

travel insurance;

(u)

any other insurance.

“(2)

For the purposes of Part IV of the Act, each of the following is a prescribed class of insurance business in relation to a body corporate that undertakes liability by way of reinsurance:

 (a) facultative fire insurance;

(b)

facultative accident insurance;

(c)

facultative other insurance;

(d)

proportional treaty fire insurance;

(e)

proportional treaty accident insurance;

(f)

proportional treaty other insurance;

(g)

excess of loss treaty fire insurance;

(h)

excess of loss treaty accident insurance;

(i)

excess of loss treaty other insurance.”.

4.   Regulation 12 (Form of certain statements prescribed under paragraph 44 (2) (m) of the Act)

4.1   Paragraph 12 (b):

Omit “Form 18; and”, substitute “Form 18.”.

4.2   Paragraph 12 (c):

Omit the paragraph.

5.   Schedule (Forms)

5.1   Omit the Schedule, substitute:

 SCHEDULE Subregulation 3(1)

FORMS

FORM 1

DIRECTIONS FOR COMPLETING FORM 1

Applicable accounting standards

 1.This form is to be completed in accordance with accounting standard AASB 1023 and other applicable accounting standards, other than accounting standard AASB 1024.

Insurers incorporated outside Australia

 2. An insurer that is not incorporated in Australia must not make an entry in the second column to the right of the ADP codes.

Amounts to be rounded to nearest $1,000

 3. 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.

________

DIRECTIONS FOR COMPLETING FORM 2

Applicable accounting standards

 1. This form is to be completed in accordance with accounting standard AASB 1023 and other applicable accounting standards, other than accounting standard AASB 1024.

Insurers incorporated outside Australia

 2. An insurer that is not incorporated in Australia:

 (a) must not make an entry in the second column to the right of ADP codes 1 to 15; and

• (b)

  must not make an entry in the first column to the right of ADP codes 16, 18, 19, 21 and 22; and

• (c)

  must make an entry in the first column to the right of ADP codes 12 and 20 in respect of movements of funds into and out of Australia that are not reported elsewhere in this form.

Details of certain business

 3. Attach to this form a statement of details of the nature of each business that relates to the amounts entered in respect of ADP code 7.

Other relevant accounting standards in relation to certain other matters

 4. Attach to this form details in accordance with accounting standard AASB 1018 in relation to each matter in respect of ADP codes 9, 13, 17, 20, and 21.

Requirements of clause 10 of Schedule 5 to the Corporations Regulations

 5. Attach to this form details in accordance with clause 10 of Schedule 5 to the Corporations Regulations in relation to matters in respect of ADP codes 11 and 14.

Amounts to be rounded to nearest $1,000

 6. 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.

DIRECTIONS FOR COMPLETING FORM 3

Applicable accounting standards

 1. This form is to be completed in accordance with accounting standard AASB 1023 and other applicable accounting standards, other than accounting standard AASB 1024.

Insurers incorporated outside Australia

 2. An insurer that is not incorporated in Australia must not make an entry in the second column to the right of ADP codes 1 to 35.

Requirements of subclause 15 (1) of Schedule 5 to the Corporations Regulations

 3. An insurer that is incorporated in Australia must attach to this form details in accordance with clause 15 (1) of Schedule 5 to the Corporations Regulations in relation to matters in respect of ADP codes 36, 37 and 38.

Requirements of clause 16 of Schedule 5 to the Corporations Regulations

 4. An insurer that is incorporated in Australia must attach to this form details in accordance with clause 16 of Schedule 5 to the Corporations Regulations in relation to matters in respect of ADP codes 40, 41, 42, 43 and 44.

Amounts to be rounded to nearest $1,000

 5. 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.

DIRECTIONS FOR COMPLETING FORM 4

Insurers incorporated outside Australia

 1. An insurer that is not incorporated in Australia must not make entries in the fourth, fifth and sixth columns to the right of the ADP codes in Part A.

Only certain amounts to be entered in Part A

 2. In completing Part A, the only amounts to be entered are those that are considered recoverable under rights of subrogation in respect of which the judgment of a court or an arbitral award has been obtained in favour of the insurer, or in respect of which the liable person, or a person acting on behalf of that person, has agreed in writing to pay the amount due.

Matter followed by an asterisk

 3. In respect of items in Part A marked with the symbol “*”, details of a matter are to be entered at item (vi) in Part B.

Matter followed by 2 asterisks

 4. In respect of items in Part A marked with the symbol “**”, details of a matter are to be entered at item (vii) in Part B.

Matter followed by the symbol #

 5. In respect of items in Part A followed by the symbol “#”, details of a matter are to be entered at item (ix) in Part B.

Life insurance statutory funds

 6. The assets and liabilities of life insurance statutory funds must not be entered in this form.

Amounts to be rounded to nearest $1,000

 7. 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.

FORM 5

DIRECTIONS FOR COMPLETING FORM 5

Insurers incorporated outside Australia

 1. An insurer that is not incorporated in Australia must not make entries in:

 (a) Parts A, B, E and F in respect of insurance business outside Australia; and

• (b)

  the second column to the right of ADP codes in Part D.

Portfolio transfers

 2. Attach to this form details of all portfolio transfers made to, or by, the insurer during the period to which this form relates.

Details of the calculation of certain amounts

 3. Attach to this form details of the basis on which the amounts entered in the third column to the right of ADP codes in Part B or Part F were calculated.

Reinsurers not to complete Parts A, B and C

 4. Reinsurers must not complete any of Parts A, B and C.

Insurers that are not reinsurers not to complete Parts E and F

 5. Insurers that are not reinsurers must not complete any of Parts E and F.

Amounts to be rounded to nearest $1,000

 6. 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.

FORM 6

DIRECTIONS FOR COMPLETING FORM 6

Insurers incorporated outside Australia

 1. An insurer that is not incorporated in Australia must not make entries in Part A, B, C or D in respect of insurance business outside Australia.

Portfolio transfers

 2. Attach to this form details of all portfolio transfers made to, or by, the insurer during the period to which this form relates.

Reinsurers not to complete Parts A and B

 3. Reinsurers must not complete any of Parts A and B.

Insurers that are not reinsurers not to complete Parts C and D

 4. Insurers that are not reinsurers must not complete any of Parts C and D.

Amounts to be rounded to nearest $1,000

 5. 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.

FORM 7

DIRECTIONS FOR COMPLETING FORM 7

Insurers incorporated outside Australia

 1. An insurer that is not incorporated in Australia must not make entries in Parts A, B, D or E in respect of insurance business outside Australia.

Portfolio transfers

 2. Attach to this form details of all portfolio transfers made to, or by, the insurer during the period to which this form relates.

Reinsurers not to complete Parts A, B and C

 3. Reinsurers must not complete any of Parts A, B and C.

Insurers that are not reinsurers not to complete Parts D and E

 4. Insurers that are not reinsurers must not complete any of Parts D and E.

Amounts to be rounded to nearest $1,000

 5. 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.

FORM 8

DIRECTIONS FOR COMPLETING FORM 8

Insurers incorporated outside Australia

 1. An insurer that is not incorporated in Australia must not make entries in Parts A or B in respect of insurance business outside Australia.

Method of apportionment referred to in Part A

 2. Attach to Part A details of the method by which the amount entered in the sixth column to the right of ADP code 23 was apportioned between the classes of insurance business specified in the column to the left of the ADP codes.

Method of apportionment referred to in Part B

 3. Attach to Part B details of the method by which the amount entered in the fifth column to the right of ADP code 10 was apportioned between the classes of insurance business specified in the column to the left of the ADP codes.

Reinsurers not to complete Part A

 4. Reinsurers must not complete any of Part A.

Insurers that are not reinsurers not to complete Part B

 5. Insurers that are not reinsurers must not complete any of Part B.

Amounts to be rounded to nearest $1,000

 6. 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.

FORM 9

DIRECTIONS FOR COMPLETING FORM 9

Insurers incorporated outside Australia

 1. An insurer that is not incorporated in Australia must not make entries in this form in respect of insurance business outside Australia.

Amounts to be rounded to nearest $1,000

 2. 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.

FORM 10

DIRECTIONS FOR COMPLETING FORM 10

Insurers incorporated outside Australia

 1. An insurer that is not incorporated in Australia must not make entries in this form in respect of insurance business outside Australia.

Amounts to be rounded to nearest $1,000

 2. 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.

FORM 11

DIRECTIONS FOR COMPLETING FORM 11

Interpretation

 1. For the purposes of clause 2, the following classes of insurance business are nominated:

 (a) compulsory third party motor vehicle insurance;

• (b)

  commercial motor vehicle insurance;

• (c)

  domestic motor vehicle insurance;

• (d)

  professional indemnity insurance;

• (e)

  product liability insurance;

• (f)

  public liability insurance;

• (g)

  employers’ liability insurance;

• (h)

  trade credit insurance.

Form 11 to be completed in respect of certain insurance business

 2. Form 11 must be completed by:

 (a) an insurer:

• (i)

  of a class of insurance business nominated in paragraph 1 (a) or (g) in respect of each State or Territory where the insurer carries on that class of business; and

• (ii)

  of any other class of insurance business nominated in clause 1 in respect of that class of business carried on by the insurer in Australia; and

• (b)

  an insurer incorporated in Australia in respect of each nominated class of insurance business in respect of that class of business carried on by the insurer outside Australia.

Reinsurers not to complete Form 11

 3.Reinsurers must not complete any of Form 11.

Certain insurance business to be entered in form

 4. This form must be completed in respect of direct insurance business and inward facultative reinsurance business, other than inward treaty reinsurance business.

Amounts to be rounded to nearest $1,000

 5.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.

 

_____________

FORM 12

DIRECTIONS FOR COMPLETING FORM 12

Insurers incorporated outside Australia

 1. An insurer that is not incorporated in Australia must not make entries in this form in respect of insurance business outside Australia.

Matters to be included in attachments

 2. Attach to this form details in respect of all clauses specified in the eleventh column in Part B.

Method of apportionment

 3. Attach details of the method used for apportioning premiums between risks inside and outside Australia in respect of each “yes” entry in the thirteenth column in Part B of this statement.

Further matters to be included in attachments

 4. Attach to this form details in respect of all clauses specified in the eleventh column in Part C.

Reinsurers not to complete Parts A, B, C and D

 5.Reinsurers must not complete any of Parts A, B, C and D.

Insurers that are not reinsurers not to complete Part E

 6.Insurers that are not reinsurers must not complete any of Part E.

Amounts to be rounded to nearest $1,000

 7.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.

FORM 13

DIRECTIONS FOR COMPLETING FORM 13

Insurers incorporated outside Australia

 1. An insurer that is not incorporated in Australia must not make an entry in this form in respect of reinsurance arrangements relating only to business outside Australia.

FORM 15

DIRECTIONS FOR COMPLETING FORM 15

Insurers incorporated outside Australia

 1. An insurer that is not incorporated in Australia must not make an entry in this form in respect of insurance business outside Australia.

Amounts to be rounded to nearest $1,000

 2. 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.

___________

FORM 16

DIRECTIONS FOR COMPLETING FORM 16

Insurers incorporated outside Australia

 1. An insurer that is not incorporated in Australia must:

 (a) not make an entry in the fourth, fifth or sixth column to the right of the ADP codes in Part A; and

• (b)

  not make an entry in the second column to the right of ADP codes in Part B; and

• (c)

  not make an entry in respect of ADP codes 15, 16 and 18 in Part B; and

• (c)

  make an entry in the first column to the right of ADP code 17 in Part B in respect of the movement of funds into and out of Australia that are not reported elsewhere in this form.

Only certain amounts to be entered in Part A

 2. In completing Part A, the only amounts to be entered are those that are considered recoverable under rights of subrogation in respect of which the judgment of a court or an arbitral award has been obtained in favour of the insurer, or in respect of which the liable person, or a person acting on behalf of that person, has agreed in writing to pay the amount due.

Matter followed by an asterisk

 3. In respect of items in Part A marked with the symbol “*”, details of a matter are to be entered at item (vi) in Part D.

Matter followed by 2 asterisks

 4. In respect of items in Part A marked with the symbol “**”, details of a matter are to be entered at item (vii) in Part D.

Matter followed by the symbol #

 5. In respect of items in Part A followed by the symbol “#”, details of a matter are to be entered at item (ix) in Part D.

Certain matters to be included in attachments

 6. Attach to this form in respect of ADP code 12 in Part B:

 (a) a statement of the details of business other than general insurance business carried on by the insurer; and

• (b)

  the amounts of profit or loss from Abnormal and Extraordinary items.

Certain other matters to be included in attachments

 7. Attach to this form a statement of details in respect of ADP codes 15, 17 and 18 in Part B.

Life insurance statutory funds

 8. The assets and liabilities of life insurance statutory funds must not be entered in this form.

Amounts to be rounded to nearest $1,000

 9. 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.

FORM 17

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.

________

FORM 18

DIRECTIONS FOR COMPLETING FORM 18

Insurers incorporated outside Australia

 1. An insurer that is not incorporated in Australia must not make an entry in this form in respect of investment revenue outside Australia.

Amounts to be rounded to nearest $1,000

 2. 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

1. Notified in the Commonwealth of Australia Gazette on 2 August 1994.

2. Statutory Rules 1974 No. 141 as amended by 1976 Nos. 90, 126, 139 and 288; 1977 No. 213; 1980 No. 107; 1981 No. 209; 1985 No. 189; 1987 No. 340; 1990 No. 446; 1992 No. 177.