Insurance Regulations (Amendment) (Cth)

Statutory Rules 1985 No. 1891

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Insurance Regulations2 (Amendment)

I, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council and pursuant to section 4 of the Acts Interpretation Act 1901, hereby make the following Regulations under the Insurance Act 1973.

Dated 30 July 1985.

N. M. STEPHEN

Governor-General

By His Excellency's Command,

 

C.J. HURFORD

Minister of State for Immigration and Ethnic Affairs

For and on Behalf of the Treasurer

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Commencement

1. Regulations 7, 16 and 17 of these Regulations shall come into operation on 1 October 1985.

2. After regulation 5 of the Insurance Regulations the following regulation is inserted:

Application for approval of appointment of auditor

"5A. (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 the Commissioner 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 sub-regulation (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.".

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(S.R. 100/85) Cat. No.  Recommended retail price $1.00  10/5.6.1985

Particulars to be given concerning proposed auditor

3.Regulation 6 of the Insurance Regulations is amended—

(a) by inserting in sub-regulation (1) "and sub-regulation 5a (2)" after "paragraph 5 (f)";

(b) by omitting from paragraph (1) (e) "other interests" (wherever occurring) and substituting "other prescribed interests"; and

(c) by omitting sub-regulation (2) and substituting the following sub-regulation:

"(2) In this regulation, “prescribed interest' means a prescribed interest as defined in sub-section 5 (1) of the Companies Act 1981.".

Documents to be lodged with an application

4.Regulation 7 of the Insurance Regulations is amended—

(a) by omitting paragraphs (1) (c), (d), (e), (f) and (g) and substituting the following paragraph:

"(c) statements in accordance with Forms 3 and 4 made as at a date not more than 3 months before the date of the application; and";

(b) by omitting from sub-regulation (2) "paragraphs (1) (c), (d), (e), (f) and (g)" and substituting "paragraphs (1) (c) and (h)"; and

(c) by omitting sub-regulation (3).

Valuation of assets for statements of assets and liabilities

5.Regulation 8 of the Insurance Regulations is amended—

(a) by omitting "paragraphs 7 (1) (c), (d), (e), (f) and (g)" and substituting "paragraph 7 (1) (c)"; and

(b) by omitting ", (5)".

Apportionment of receipts and payments between classes of insurance business

6.Regulation 10 of the Insurance Regulations is amended—

(a) by omitting from paragraph (a) "accounts" and substituting "statutory accounts"; and

(b) by omitting from paragraph (b) "accounts" and substituting "statutory accounts".

Forms of various accounts and statements to be lodged with the Commissioner—sub-section 44 (7)

7.Regulation 11 of the Insurance Regulations is amended by omitting paragraphs (n) and (o) and substituting the following paragraphs:

"(n) a statement of assets and liabilities referred to in paragraph 44 (4) (a) of the Act shall be in accordance with Part A of Form 16;

(o) a statement of premiums and claims referred to in paragraph 44 (4) (b) of the Act shall be in accordance with Part B of Form 16

and, where required by the Commissioner under sub-regulation 23 (3), Part C of Form 16; and".

Copies of documents to be lodged with the Commissioner

8.Regulation 13 of the Insurance Regulations is amended—

(a) by omitting from sub-regulation (1) "quintuplicate" and substituting "quadruplicate"; and

(b) by omitting from sub-regulation (2) "quadruplicate" and substituting "triplicate".

Statements of assets and liabilities

9.Regulation 16 of the Insurance Regulations is amended—

(a) by omitting from paragraph (1) (h) "and"; and

(b) by adding at the end of sub-regulation (1) the following word and paragraph:

"; and (k) attach to the statement particulars of the debtor in relation to each amount entered in the statement in respect of the items in the form marked with the symbol ** where the amount owing by the debtor exceeds 10% of the amount so entered.".

10. Regulation 18 of the Insurance Regulations is repealed and the following regulations are substituted:

Statements of premium income and unearned premiums

"18. A body corporate when lodging with the Commissioner a statement in accordance with Form 5 shall attach to it—

(a) particulars of the basis upon which the several premium provisions entered in the columns of Part A of that Form numbered (8), (9), (10) and (11) were calculated; and

(b) particulars of the basis upon which the several premium provisions entered in the columns of Part B of that Form numbered (6), (7), (8) and (9) were calculated.

Statements of provision made for claims

"18a. A body corporate, in specifying the numbers of claims in the columns numbered (8) and (9) of Form 6, shall include inward facultative reinsurance claims reported to the body corporate during the current year and reported inward facultative reinsurance claims outstanding as at the end of the current year and shall not include inward treaty reinsurance claims reported to the body corporate during the current year or reported inward treaty reinsurance claims outstanding as at the end of the current year.".

Statement of the cost of meeting claims

11.Regulation 22 of the Insurance Regulations is amended—

(a) by omitting from sub-regulation (3) "a nominated class of insurance business" and substituting "the nominated class of insurance business specified in paragraph (10) (c)";

(b) by inserting after sub-regulation (3) the following sub-regulation:

"(3a) Where the body corporate is a body corporate incorporated in Australia and has, at any time during the prescribed period, carried on business included in a nominated class of insurance business specified in paragraph (10) (a), (b) or (d), the statement shall—

(a) include a separate return of particulars in accordance with Form 11 relating to the gross cost to the body corporate during that period of meeting claims made against it in respect of business included in that class, being business that has been carried on, whether before or during that period, in Australia;

(b) include a separate return of particulars in accordance with Form 11 relating to the net cost to the body corporate during that period of meeting claims made against it in respect of business included in that class, being business that has been carried on, whether before or during that period, in Australia;

(c) include a separate return of particulars in accordance with Form 11 relating to the gross cost to the body corporate during that period of meeting claims made against it in respect of business included in that class, being business that has been carried on, whether before or during that period, outside Australia;

(d) include a separate return of particulars in accordance with Form 11 relating to the net cost to the body corporate during that period of meeting claims made against it in respect of business included in that class, being business that has been carried on, whether before or during that period, outside Australia;

(e) include a separate return of particulars in accordance with Form 11 relating to the cost to the body corporate during that period of meeting claims made against it in respect of excess of loss reinsurance business included in that class, being business that has been carried on, whether before or during that period, in Australia;

(f) include a separate return of particulars in accordance with Form 11 relating to the cost to the body corporate during that period of meeting claims made against it in respect of excess of loss reinsurance business included in that class, being business that has been carried on, whether before or during that period, outside Australia.";

(c) by omitting from sub-regulation (4) "a nominated class of insurance business" and substituting "the nominated class of insurance business specified in paragraph (10) (c)"; and

(d) by inserting after sub-regulation (4) the following sub-regulation:

"(4a) Where the body corporate is a body corporate incorporated outside Australia and has, at any time during the prescribed period, carried on in Australia business included in a nominated class of insurance business specified in paragraphs (10) (a), (b) or (d), the statement shall—

(a) include a separate return of particulars in accordance with Form 11 relating to the gross cost to the body corporate during that period of meeting claims made against it in respect of business included in that class, being business that has been carried on, whether before or during that period, in Australia;

(b) include a separate return of particulars in accordance with Form 11 relating to the net cost to the body corporate during that period of meeting claims made against it in respect of business included in that class, being business that has been carried on, whether before or during that period, in Australia;

(c) include a separate return of particulars in accordance with Form 11 relating to the cost to the body corporate during that period of meeting claims made against it in respect of excess of loss reinsurance business included in that class, being business that has been carried on, whether before or during that period, in Australia.".

Statement of assets, liabilities, premiums and claims

12. Regulation 23 of the Insurance Regulations is amended—

(a) by omitting paragraph (1) (a) and substituting the following paragraph:

"(a) attach to the statement particulars of the debtor in relation to each amount entered in the statement in respect of the items in the form marked with the symbol * where that amount owing by the debtor exceeds 10% of the amount so entered;";

(b) by omitting from sub-paragraph (1) (c) (iii) "and";

(c) by adding at the end of paragraph (1) (c) the following word and sub-paragraph:

"; and (v) assets, other than current assets, acquired or disposed of (in whole or in part), and liabilities, other than underwriting liabilities, incurred, reduced or extinguished, by the body corporate during the period in respect of which the statement is made."; and

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

"(3) A body corporate shall not lodge with the Commissioner a statement in accordance with Part C of Form 16 unless required to do so by the Commissioner.".

The Schedule—Form 4

13.The Schedule to the Insurance Regulations is amended—

(a) by omitting from item 3 in Form 4 "six" (wherever occurring) and substituting "3";

(b) by omitting from item 3 in Form 4 "twelve" (wherever occurring) and substituting "9";

(c) by omitting from item 3 in Form 4 "Other*" and substituting "Other ***";

(d) by inserting in item 5 in Form 4 "—paragraph 30 (1) (ca) of the Act;" after "—paragraph 30 (1) (c) of the Act;";

(e) by inserting in item 5 in Form 4 "—paragraph 30 (1) (fa) of the Act;" after "—paragraph 30 (1) (f) of the Act;"; and

(f) by omitting from the end of item 10 in Form 4 "Fifteen percent" and substituting "20%".

The Schedule—Form 6

14.The Schedule to the Insurance Regulations is further amended by omitting Form 6 and substituting the form set out in Schedule 1 to these Regulations.

The Schedule—Form 11

15.The Schedule to the Insurance Regulations is further amended by inserting in Form 11 —

“Year next but six immediately preceding current year

 /  /  to  /  /

Year next but seven immediately preceding current year

 /  /  to  /  /

Year next but eight immediately preceding current year

 /  /  to  /  / "

after—

“Year next but five immediately preceding current year

 /  /  to  /  /  "

The Schedule—Form 14

16.The Schedule to the Insurance Regulations is further amended by omitting Form 14.

The Schedule—Form 16

17.The Schedule to the Insurance Regulations is further amended by omitting Form 16 and substituting the form set out in Schedule 2 to these Regulations.

The Schedule—Form 17

18.The Schedule to the Insurance Regulations is further amended by omitting from Form 17—

"A. Marine hull and liability

B. Aviation hull and liability

C. Transport

D. Motor

E. Pecuniary loss

F. Personal accident

G. Property

H. Liability"

and substituting—

"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. Property Damage

G. General Liability

H. Pecuniary Loss".

Further amendments of Insurance Regulations

19.The Insurance Regulations are further amended as set out in Schedule 3 to these Regulations.

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SCHEDULE 1  Regulation 14

FORM 6 TO BE SUBSTITUTED IN SCHEDULE TO INSURANCE REGULATIONS

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FORM 6

COMMONWEALTH OF AUSTRALIA

Insurance Act 1973

STATEMENT OF PROVISION MADE FOR CLAIMS

PART A—INSURANCE BUSINESS IN AUSTRALIA

Financial Year commencing on

 /  /  and ending on  /  /

Name of Body Corporate................................................................................................................................................................................

Provision at end of financial year for reported claims outstanding				Number of direct claims including inward facultative reinsurance claims reported during financial year	Number of reported direct claims including inward facultative reinsurance claims outstanding at end of financial year
Class of business	Direct claims including inward facultative reinsurance claims	Inward treaty reinsurance claims	Outward treaty reinsurance claims			Outward facultative reinsurance claims	Net at end of financial year for reported claims ((1) + (2))-((3) + (4))	Net provision at end of financial year for unreported claims	Total net provision for claims at end of financial year (5)+ (6)
(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
A. Fire..........................................................	$	$	$	$	$	$	$	$	$
B. Houseowners and Householders..........................................................
C. Contractors All Risks..........................................................
D Marine..........................................................
E. Comprehensive Motor Vehicle..........................................................
F. Compulsory Third Party Motor Vehicle.....................................................
G. Employers' Liability..........................................................
H. Public Liability..........................................................
J. Loan, Mortgage and Lease..........................................................
K. Other..........................................................
Total..........................................................

Signature of Director................................................................................................................................................................................

Secretary or Agent............................................................................................................................................................................  /  /19

SCHEDULE 1—continued

FORM 6—continued

COMMONWEALTH OF AUSTRALIA

Insurance Act 1973

STATEMENT OF PROVISION MADE FOR CLAIMS

PART B—INSURANCE BUSINESS OUTSIDE AUSTRALIA

Financial Year commencing on

 /  /  and ending on  /  /

Name of Body Corporate ................................................................................................................................................................................

Provision at end of financial year for Reported Claims outstanding				Net provision at end of financial year for reported claims ((1) + (2))-((3) + (4)) year	Net provision at end of financial year for unreported year	Total net provision for claims at end of financial year (5)+(6)	Number of direct claims including inward facultative reinsurance claims reported during financial	Number of reported direct claims including inward facultative reinsurance claims outstanding at end of financial
Class of business	Direct claims including inward facultative reinsurance claims	Inward treaty reinsurance claims	claims Outward treaty reinsurance claims						Outward facultative reinsurance claims
(1)	(2)	(3)	(4)	(5)	(7)	(8)	(9)
A. Fire...........................................................	$	$	$	$	$	$	$
B. Houseowners and Householders...........................................................
C. Contractors All Risks...........................................................
D. Marine...........................................................
E. Comprehensive Motor Vehicle...........................................................
F. Compulsory Third Party Motor Vehicle...........................................................
G. Employers' Liability...........................................................
H. Public Liability...........................................................
J. Loan, Mortgage and Lease...........................................................
K. Other...........................................................
Total...........................................................

Signature of Director................................................................................................................................................................................

Secretary or Agent................................................................................................................................................................................   /  /19

 

SCHEDULE 2  Regulation 17

FORM 16 TO BE SUBSTITUTED IN SCHEDULE TO INSURANCE REGULATIONS

FORM 16

COMMONWEALTH OF AUSTRALIA

Insurance Act 1973

QUARTERLY STATEMENT OF ASSETS, LIABILITIES, PREMIUMS AND CLAIMS AS AT

 /  /

PART A—ASSETS AND LIABILITIES

Name of Body Corporate...........................................................................................................................

In Australia		Outside Australia
ASSETS	$	$
1. Fixed Assets
Land and buildings (other than land and
buildings held for development and sale)
Motor vehicles and office equipment......
Other....................................................
Sub-total.........................................
2. Investments

Public Securities—
Australian Government, local government and semi-government securities
- listed........................................
- unlisted....................................
Securities issued by governments outside......................................................
Australia........................................
Sub-total........................................
Land and buildings held for development and sale..................................................
In Australia		Outside Australia
Related bodies corporate	Other	Related bodies corporate	Other
Other	$	$	$	$
Shares
- listed on a stock exchange...................
- other..................................................
Debentures and notes
- listed on a stock exchange...................
- other..................................................
Deposits and loans
- secured...............................................
- by mortgages on real property..............

SCHEDULE 2—continued

In Australia		Outside Australia
Related bodies corporate	Other	Related bodies corporate	Other
$	$	$	$
- other.............................................
- unsecured........................................
- to directors of the body corporate or related bodies, and the spouses of those directors.......................................................
- to employees of the body corporate
- Secured........................................
- unsecured.....................................
- other................................................
Other.................................................
Sub-total............................................
3. Current Assets
Cash..........................................................
Premiums outstanding
- for 3 months or less *...........................
- for more than 3 but not more than 9 months*........................................................
- for more than 9 months *......................
Amounts retained under reinsurance contracts*..............................................................
Amounts due from bodies predominantly engaged in
- insurance business *.............................
- other business*.....................................
Sundry debtors
- trade*..................................................
- other*..................................................
Other.........................................................
Sub-total.............................................
4. Total Assets..................................................
LIABILITIES
5. Underwriting Provisions
- Premium provisions
- unearned premium provision
- other premium provisions (specify)
- Outstanding claims provision
- Other underwriting provisions (specify)
6. Long Term Liabilities
Bank loans................................................
Amounts due to bodies corporate predominantly engaged in..............................................
- insurance business................................
- other business......................................
Debentures
Other loans
- secured................................................
- unsecured............................................
Other........................................................
Sub-total.............................................

SCHEDULE 2—continued

In Australia		Outside Australia
Related bodies corporate	Other	Related bodies corporate	Other
$	$	$	$
7. Current Liabilities
Provisions
- taxation.............................................
- long service leave...............................
- dividends...........................................
- statutory charges................................
- other provisions excluding provisions for doubtful debts................................
Bank overdrafts.......................................
Amounts due to insurers under reinsurance contracts...............................................
Amounts due to bodies predominantly engaged in
- insurance business..............................
- other business....................................
Debentures..............................................
Other loans
- secured..............................................
- unsecured..........................................
Sundry creditors.......................................
Other.......................................................
Sub-total..........................................
8.Total Liabilities............................................
9. Contingent Liabilities (specify).....................
In Australia		Outside Australia
ASSET MOVEMENTS	$	$
10. Difference between assets and liabilities at beginning of quarter (item 4 less item 8 last quarter).......................................................
11. Estimated profit or loss after taxation for quarter...................................................................
12. Increase or decrease in capital funds during quarter...................................................................
13. Change in market value of assets during quarter...................................................................
14. Other (specify)............................................
15. Difference between assets and liabilities at end of quarter (item 4 less item 8 above).................

Signature of

Director, Secretary or Agent...................................... / /19

SCHEDULE 2—continued

PART B—PREMIUMS

Direct premiums (including inward facultative reinsurance premiums) less returned premiums and rebates	Inward treaty reinsurance premiums less returned premiums and rebates	Outward reinsurance premiums less returned premiums and rebates	Amounts paid with respect to statutory charges	Premium income
$	$	$	$	$
1. IN AUSTRALIA
- Month 1
- Month 2 (1)
- Month 3
Total for 3 months
Total for 12 months ending this quarter
2. OUTSIDE AUSTRALIA
- Month 1
- Month 2 (1)
- Month 3
Total for 3 months
Total for 12 months ending this quarter

(1) Where inward treaty reinsurance business is accounted for on a quarterly basis, include inward treaty reinsurance business derived during the quarter as premium derived during month 2.

Signature of

Director, Secretary or Agent................................  /  /19

PART C—CLAIMS

Earned premiums for the quarter	Net claims paid for the quarter	Total net provision for claims at end of quarter	Number of direct claims including inward facultative reinsurance claims reported during quarter	Number of direct claims including inward facultative reinsurance claims outstanding at end of quarter
$	$	$
1. IN AUSTRALIA
Fire.............................................
Houseowners and Householders Contractors All Risks...................
Marine........................................
Comprehensive Motor Vehicle Compulsory Third Party Motor
Vehicle....................................
Employers' Liability.....................
Public Liability............................

SCHEDULE 2—continued

Earned premiums for the quarter	Net claims paid for the quarter	Total net provision for claims at end of quarter	Number of direct claims including inward facultative reinsurance claims reported during quarter	Number of direct claims including inward facultative reinsurance claims outstanding at end of quarter
$	$	$
Loan, Mortgage and Lease............
Other...........................................
Total............................................
2. OUTSIDE AUSTRALIA
Fire..............................................
Houseowners and Householders Contractors All Risks...................
Marine.........................................
Comprehensive Motor Vehicle Compulsory Third Party Motor Vehicle....................................................
Employers' Liability.....................
Public Liability............................
Loan, Mortgage and Lease............
Other...........................................
Total............................................

Signature of

Director, Secretary or Agent......................................  /  /19

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SCHEDULE 3 Regulation 19

FURTHER AMENDMENTS OF INSURANCE REGULATIONS

Regulation 5—

Omit paragraph (b).

Sub-regulation 22 (5)—

(a) Omit "sub-regulation (3)", substitute "sub-regulations (3) and (3a)".

(b) Insert in paragraph (a) "or (3a) (a)" after "(3) (a)".

(c) Insert in paragraph (b) "or (3a) (c)"after"(3) (c)".

(d) Insert in paragraph (c) "or (3a) (b)" after "(3) (b)".

(e) Insert in paragraph (d) "or (3a) (d)" after "(3) (d)".

(f) Insert in paragraph (e) "or (3a) (e)"after"(3) (e)".

(g) Insert in paragraph (f) "or (3a) (f)" after "(3) (f)".

Sub-regulation 22 (6)—

(a) Omit "sub-regulation (4)", substitute "sub-regulations (4) and (4a)".

(b) Insert in paragraph (a) "or (4a) (a)" after "(4) (a)".

(c) Insert in paragraph (b) "or (4a) (b)" after "(4) (b)".

(d) Insert in paragraph (c) "or (4a) (c)" after "(4) (c)".

Sub-regulation 22 (8)—

(a) Omit "(4) and (7)", substitute "(3a), (4), (4a) and (7)".

(b) Omit from paragraph (a) "(4) (a) or (4) (b)". substitute "(3a) (a), (3a) (b), (3a) (c), (3a) (d), (4) (a), (4) (b), (4a) (a) or (4a) (b)".

(c) Omit from paragraph (b) "or (4)", substitute"(3a), (4) or (4a)".

Sub-regulation 22 (9)—

(a) Omit "(4) and (7)", substitute "(3a), (4), (4a) and (7)".

(b) Omit from paragraph (a) "(4) (a) or (4) (b)", substitute "(3a) (a), (3a) (b), (3a) (c), (3a) (d), (4) (a), (4) (b), (4a) (a) or (4a) (b)".

(c) Omit from paragraph (b) "(4) (a) or (4) (d)", substitute "(3a) (a), (3a) (b), (3a) (c), (3a) (d), (4) (a), (4) (b), (4a) (a) or (4a) (b)".

(d) Omit from paragraph (e) "or (4) (a)", substitute ", (3a) (a), (3a) (c), (4) (a) or (4a) (a)".

(e) Omit from paragraph (f) "or (4) (a)", substitute ", (3a) (a), (3a) (c), (4) (a) or (4a) (a)".

(f) Omit from paragraph (g) "or (4) (b)", substitute ", (3a) (b), (3a) (d), (4) (b) or (4a) (b)".

(g) Omit from paragraph (h) "or (4) (b)", substitute ", (3a) (b), (3a) (d), (4) (b) or (4a) (b)".

(h) Omit from paragraph (j) "or (4) (c)". substitute ", (3a) (e), (3a) (f), (4) (c) or (4a) (c)".

(j) Omit from paragraph (k) "or (4) (c)", substitute ", (3a) (e), (3a) (0, (4) (c) or (4a) (c)".

Paragraph 24 (a)—

Omit "and 9", substitute ", 9 and 16".

Regulation 28—

Omit "50 cents", substitute "$5".

NOTES

1. Notified in the Commonwealth of Australia Gazette on 6 August 1985.

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.

                                                           

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