Insurance Amendment Act 1983
No. 129 of 1983
TABLE OF PROVISIONS
PART I—PRELIMINARY
Section
1. Short title, &c.
2. Commencement
PART II—AMENDMENTS OF THE PRINCIPAL ACT
3. Interpretation
4. Application of Act
5. Repeal of section 13
6. Public servant appointed as Commissioner may continue in office as public servant
7. Termination of appointment
8. Repeal of section 19 and substitution of new sections—
19. Acting Commissioner
19a. Delegation
9. Repeal of section 21 and substitution of new section—
21. Certain persons not to carry on insurance business
10. Application for authority
11. Authority to commence carrying on insurance business
12. Authority to carry on insurance business for body corporate that carried on insurance business before 9 December 1971
13. Repeal of section 26
14. Refusal to grant authority
15. Repeal of section 29 and substitution of new section—
29. Conditions to which authority is subject
16. Assets
17. Liabilities
18. Valuation of assets
TABLE OF PROVISIONS—continued
Section
19. Exemption from requirement relating to assets in Australia
20. Cancellation of authority
21. Exemption in respect of insurance business carried on for benefit of limited class of persons
22. Interpretation
23. Accounting records
24. Accounts and statements to be lodged with Commissioner
25. Audit of accounts
26. Extension of time
27. Report of inspector
28. Directions
29. Review of certain decisions
30. Insertion of new section—
64. Statements to accompany notification of decisions
31. Repeal of section 104
32. Bodies corporate ceasing to carry on insurance business
33. Persons ceasing to carry on insurance business
34. Transitional provisions relating to bodies corporate refused authorities under section 27
35. Power to require production of books
36. Inspection of Register, accounts and auditors’ certificates
37. Annual report
38. Offences
39. Insertion of new sections—
129a. Joinder of charges and penalties for certain offences
129b. Continuing offences
40. Schedule
41. Amendments relating to accounts and accounting records
42. Amendments relating to penalties
43. Formal amendments
44. Application of certain amendments
PART III—INTERIM PROVISIONS
45. Interpretation
46. Notification in Gazette of prescribed bodies corporate
47. Interim application of section 29 of the Insurance Act 1973 to prescribed bodies corporate
48. Directions
SCHEDULE 1
Amendments relating to accounts and accounting records
SCHEDULE 2
Amendments relating to penalties
SCHEDULE 3
Formal amendments
SCHEDULE 4
Interim application of section 29 of the Insurance Act 1973 to prescribed bodies corporate
Insurance Amendment Act 1983
No. 129 of 1983
An Act to amend the Insurance Act 1973, and for related purposes
[Assented to 22 December 1983]
BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:
PART…
Overview
The Insurance Amendment Act 1983No. 129 of 1983 was enacted by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia to amend the Insurance Act 1973 and address certain gaps and issues within the existing framework. The Act primarily seeks to strengthen regulatory oversight over insurance companies, ensuring their financial stability and compliance with legislative requirements. Key changes include the introduction of more stringent financial requirements for insurance companies, such as higher capital thresholds and specific asset and liability conditions. The Act also enhances the powers of the Commissioner, allowing for better management of insurance companies in distress and improved enforcement of compliance through increased penalties and clearer reporting obligations.
Scope and Application
The Insurance Amendment Act 1983 applies to the Commonwealth of Australia and amends the Insurance Act 1973. The Act applies to bodies corporate and Lloyd's underwriters engaged in insurance business within Australia. It also applies to public servants appointed as Commissioner, and to prescribed companies conducting insurance business related to building societies. The Act delineates the roles and responsibilities of the Commissioner and the Treasurer, including the ability to appoint acting Commissioners, delegate powers, and set conditions for insurance business operations. It imposes penalties for unauthorised insurance business and mandates the maintenance and submission of detailed accounting records and financial statements to the Commissioner. Additionally, the Act includes provisions for the review of decisions, the inspection of records, and the enforcement of compliance through fines and potential legal action. The Act does not apply to individuals who are not bodies corporate or Lloyd's underwriters, and it excludes certain documents from the definition of 'debenture'. It also provides for transitional arrangements for bodies corporate that were previously operating under different legislative conditions.
Key Provisions
- The Insurance Amendment Act 1983 makes several amendments to the Insurance Act 1973, impacting both the operative sections and the obligations and requirements imposed on the parties governed by the Act. The Act introduces new definitions, modifies existing provisions, and establishes new conditions for authorities granted to body corporates carrying on insurance business. For instance, Section 3 amends the definition of various terms, such as "accounting records" and "assets," while Section 29 outlines new conditions for the authorities granted to body corporates, including requirements for paid-up share capital, asset values, and reinsurance arrangements.
- The Act imposes specific obligations on body corporates to maintain accounting records, lodge accounts and statements with the Commissioner, and comply with directions regarding reinsurance and other business activities. For example, Section 40 mandates that body corporates keep their accounting records in Australia, and Section 44 requires them to lodge quarterly and yearly statutory accounts with the Commissioner. Additionally, the Act requires body corporates to make provisions in their accounts for liabilities and comply with directions issued by the Commissioner regarding those provisions (Section 31).
- There are also provisions that establish offences and penalties for non-compliance. Section 21 imposes fines on individuals and body corporates that carry on insurance business without proper authorisation, with fines up to $2,000 for individuals and $20,000 for body corporates. Failure to comply with directions or other regulatory requirements can also result in fines, with penalties up to $20,000 for body corporates (Section 62). Additionally, directors, officers, or auditors of a body corporate found to be in any way concerned in or party to certain offences are also deemed guilty and face fines up to $4,000 (Section 128). The Act also allows for the joinder of charges and penalties for certain offences, ensuring that the total penalty does not exceed the sum of the maximum penalties for each offence (Section 129a).
- Area of Law
- Insurance Law
- Corporate Law & Governance
- Instrument
- Act
- Concepts
- Definitions & Interpretation
- Offence Provisions
- Licensing & Registration
- Reporting & Disclosure Obligations
- Enforcement Powers
- Compliance Obligations
- Regulatory Standards