Insurance Regulations (Amendment) (Cth)

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Statutory

Rules1992No. 177 1

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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 18 June 1992.

BILL HAYDEN

Governor-General

By His Excellency’s Command,

PETER BALDWIN

Minister of State for Higher Education and Employment Services

for and on behalf of the Treasurer

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1. Commencement

1.1 These Regulations commence on 1 July 1992.

2. Amendment

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

3. Regulation 2 (Interpretation)

3.1 Before the definition of “applicant”, insert:

“ ‘accounting standard’ has the same meaning as in the Corporations Law;”.

3.2 Definitions of “current year”, “first complete financial year” and “prescribed period”:

Omit the definitions.

3.3 Add at the end:

“(2)

A reference in a direction for completing a form in the Schedule to an accounting standard by letter and number is read as a reference to an accounting standard that is so lettered and numbered.

“(3)

A reference in a direction for completing a form in the Schedule to an ADP code, either by number or generally, is read as a reference to:

(a)

the number in an item in a column of the form; or

(b)

all, or particular, numbers of that kind;

being a column of which the heading is, or includes, ‘ADP code’.”.

4. Regulation 3 (Forms)

4.1 Add at the end:

“(2)

A form, and any attachment to the form, must be completed in accordance with a direction specified in, or at the foot of, the form.

“(3)

On request, the Commissioner must provide to a person for the purposes of lodging a form with the Commissioner a copy of the form to be completed by the person.

“(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
(d)
be dated by each person signing the form.

“(5)

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

“(6)

The Commissioner may refuse to accept a form, or an attachment to a form, unless the form or attachment is clearly and legibly printed, typewritten or handwritten in ink of a type to enable reproduction of the contents of the document in a form that is clear and legible by means satisfactory to the Commissioner.

“(7)

The name of a person signing a form, and any attachment to the form, and the date of signature must be legibly printed, typewritten or handwritten under or beside the signature of the person.”.

5. Regulation 4 (Hours of business of the Commissioner’s office)

5.1 Omit the regulation, substitute:

Business hours for offices of the Commissioner

“4.

(1) The hours of business for an office of the Commissioner are from 9.00 a.m. to 4.00 p.m. on a day other than:

(a)

a Saturday or a Sunday; or

(b)

a public holiday in the place where the office is located; or

(c)
a day observed as a holiday in that place by the Australian Public Service.

“(2)

Subregulation (1) does not prevent an office being open for business at other times.”.

6. Regulation 5 (Particulars to be given concerning applicants)

6.1 Subparagraphs 5 (c) (i), (ii) and (iii):

Add at the end “and”.

6.2 Paragraph 5 (c):

Add at the end:

“and (vi)
the latest balance sheet, profit and loss account and any other financial statement required to be given to the Australian Securities Commission under the Corporations Law;”.

7. Regulation 6 (Particulars to be given concerning the proposed auditor of an applicant)

7.1 Subregulation 6 (2):

Omit the subregulation, substitute:

“(2)

In this regulation, ‘prescribed interest’ has the same meaning as in the Corporations Law.”.

8. Regulation 7 (Documents to be lodged with an application)

8.1 Subregulation 7 (2):

Omit the subregulation, substitute:

“(2)

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

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

9.1 Paragraphs 9 (a), (b), (c), (d), (e), (f), (g), (h), (j) and (k):

Omit the paragraphs, substitute:

“(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.”.

10. Regulation 11 (Forms of various accounts and statements to be lodged with the Commissioner)

10.1 Paragraphs 11 (a), (b), (c) and (d):

Omit “shall”, substitute “must”.

10.2 Paragraphs 11 (e), (f), (g), (h), (j), (k), (l), (m), (n), (o) and (p):

Omit the paragraphs, substitute:

“(e)
a statement of premiums and of reinsurance expense must be in accordance with Form 5; and
(f)
a statement of unearned premiums must be in accordance with Form 10; and
(g)
a statement of claims expense and of claims recoveries revenue must be in accordance with Form 7; and
(h)
a statement of provision made for claims and of claims recoveries must be in accordance with Form 6; and
(i)
a statement of underwriting expenses must be in accordance with Form 8; and
(j)
a statement of general expenses must be in accordance with Form 9; and
(k)
a statement of the cost of meeting claims and of reinsurance recoverables must be in accordance with Form 11; and
(l)
a statement of reinsurance arrangements must be in accordance with Form 12; and

(m)
a statement of assets and liabilities referred to in paragraph 44 (4) (a) of the Act must be in accordance with Parts A, B and D of Form 16; and
(n)
a statement of premiums referred to in paragraph 44 (4) (b) of the Act must be in accordance with Part C of Form 16; and
(o)
a statement of claims referred to in subsection 44 (6) of the Act must be in accordance with Form 15.”.

11. Regulation 12 (Statements of arrangements for the reinsurance of liabilities)

11.1 Omit the regulation, substitute:

Forms of certain statements prescribed under paragraph 44 (2) (m) of the Act

“12.

For the purposes of paragraph 44 (2) (m) of the Act:

(a)
a statement of arrangements for the reinsurance of liabilities is a prescribed statement and must be in accordance with Form 13; and
(b)
a statement of investment revenue is a prescribed statement and must be in accordance with Form 18; and
(c)
a statement of estimated settlement pattern of outstanding claims is a prescribed statement and must be in accordance with Form 19.”.

12. New regulation 13

12.1 Omit the regulation, substitute:

Copies of documents to be lodged with the Commissioner

“13.

Two copies of each account, balance sheet and statement referred to in regulations 11 and 12 must be lodged with the Commissioner.”.

13. Regulation 14 (Underwriting accounts)

13.1 Omit the regulation, substitute:

Certain accounts not to be audited

“14.

For the purposes of subsection 47 (1) of the Act, a statement in accordance with Part C of Form 5 and Part C of Form 7 is prescribed.”.

14. Regulation 15 (Balance-sheets)

14.1 Omit the regulation.

15. Regulation 16 (Statements of assets and liabilities)

15.1 Omit the regulation.

16. Regulation 17 (Particulars of portfolio transfers to be attached to various statements)

16.1 Omit the regulation.

17. Regulation 18 (Statements of premium income and unearned income)

17.1 Omit the regulation.

18. Regulation 18a (Statements of provision made for claims)

18.1 Omit the regulation.

19. Regulation 19 (Statements of underwriting expenses)

18.1 Omit the regulation.

20. Regulation 20 (Statements of management expenses)

20.1 Omit the regulation.

21. Regulation 21 (Statements of unearned premiums)

21.1 Omit the regulation.

22. Regulation 22 (Statement of the cost of meeting claims)

22.1 Omit the regulation.

23. Regulation 23 (Statements of assets and liabilities in Australia)

23.1 Omit the regulation.

24. Regulation 24 (Overseas corporations not required to give certain particulars)

24.1 Omit the regulation.

25. Regulation 29 (Copies of documents to be provided by the Commissioner)

25.1 Subregulation 29 (1):

Omit all the words after paragraph (b), substitute “give to the person a copy of the whole or part of a document referred to in section 123 of the Act”.

25.2 Paragraph 29 (2) (b):

Omit the paragraph, substitute:

“(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”.

26. Schedule

26.1 Heading:

Omit the heading, substitute:

“SCHEDULE Regulation 3

FORMS”.

26.2 Forms 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12 and 13:

Omit the Forms, substitute:

SCHEDULE—continued

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.

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SCHEDULE—continued

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 13; and
(b)
must not make an entry in the first column to the right of ADP codes 14, 16, 17, 19, and 20; and
(c)
must make an entry in the first column to the right of ADP codes 15 and 18 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 5.

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 7, 11, 15, 18 and 19.

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 9 and 12.

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SCHEDULE—continued

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 subclause 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 respect of ADP codes 40, 41, 42, 43 and 44.

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SCHEDULE—continued

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 marked with the symbol ‘#’, details of a matter are to be entered at item (x) or (xi) in Part B.

Life insurance statutory funds

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

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SCHEDULE—continued

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 and B 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 ninth column to the right of ADP codes in Part B were calculated.

Reinsurers not to complete Part C

4. Reinsurers must not complete Part C.

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SCHEDULE—continued

St

SCHEDULE—continued

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 or B 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 the form relates.

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SCHEDULE—continued

DIRECTIONS FOR COMPLETING FORM 7

Insurers incorporated outside Australia

1. An insurer that is not incorporated in Australia must not make entries in Part A or B 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 the form relates.

Reinsurers not to complete Part C

3. Reinsurers must not complete Part C.

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SCHEDULE—continued

DIRECTIONS FOR COMPLETING FORM 8

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.

Method of apportionment

2. Attach to this form details of the method by which the amount entered in the seventh column to the right of ADP code 22 was apportioned between the classes of insurance business specified in the column to the left of the ADP codes.

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SCHEDULE—continued

DIRECTION FOR COMPLETING FORM 9

Insurers incorporated outside Australia

1. An insurer that is not incorporated in Australia must not make an entry in this form in respect of general expenses incurred outside Australia.

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SCHEDULE—continued

DIRECTION FOR COMPLETING FORM 10

Insurers incorporated outside Australia

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

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SCHEDULE—continued

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.

Parts A and B to be completed in respect of certain insurance business

2. Parts A and B 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.

Certain insurance business to be entered in form

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

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SCHEDULE—continued

DIRECTIONS FOR COMPLETING FORM 12

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.

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.

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SCHEDULE—continued

DIRECTION 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.

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26.3 Forms 15 and 16:

Omit the Forms, substitute:

SCHEDULE—continued

DIRECTION 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.

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SCHEDULE—continued

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
(d)
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 marked with the symbol ‘#’, details of a matter are to be entered at item (x) or (xi) 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.

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26.4 Add at the end:

SCHEDULE—continued

DIRECTION FOR COMPLETING FORM 18

Insurers not incorporated in 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.

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SCHEDULE—continued

DIRECTIONS FOR COMPLETING FORM 19

Insurers not incorporated in Australia

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

Interpretation

2. For the purposes of clause 3, 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.

Part A to be completed in respect of certain insurance business

3.(1) Part A must be completed in respect of each nominated class of insurance business carried on by the insurer.

(2) Part A must be completed in respect of direct insurance business and inward facultative reinsurance business, other than inward treaty reinsurance business.

Part B to be completed in respect of certain insurance business

4.(1) Part B must be completed in respect of each class of insurance business carried on by the insurer, other than a nominated class of insurance business for which an entry has been made in Part A.

(2) Part B must be completed in respect of all inward treaty reinsurance business.

27. Transitional

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.

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NOTES

1. Notified in the Commonwealth of Australia Gazette on 25 June 1992.

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.

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