Insurance Regulations (Amendment)

Legislation au C1932L00100 Regulations Not in force Legislative Instrument

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STATUTORY RULES.

1932. No. 100.

 

REGULATIONS UNDER THE INSURANCE ACTS 1932.

I, THE DEPUTY OF THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Insurance Acts 1932, to come into operation as from the date of commencement of the Insurance Regulations (Statutory Rules 1932, No. 73).

Dated the twenty-first day of September, 1932.

PHILIP GAME

Deputy of the Governor-General.

By His Excellency’s Command,

W. MASSY GREENE

for Treasurer.

 

Amendment of the Insurance Regulations.

(Statutory Rules 1932 No. 73.)

Bank guarantees

1. Regulation 3 of the Insurance Regulations is amended by omitting the words “ Form A ” and inserting in their stead the words "Form A.1. or Form A.2.”.

2. After Regulation 17 of the Insurance Regulations the following Regulation is inserted:—

Forms to be substantially in accordance with prescribed forms.

“18. The Treasurer may accept, in lieu of any prescribed form other than the form of Bank guarantee or undertaking, any document which is substantially in accordance with the prescribed form.”

Amendment of Form A.

3. The Schedule to the Insurance Regulations is amended by omitting Form A and inserting in its stead the following Forms:—

“Commonwealth of Australia.

Insurance Acts 1932.

Form A.1. Regulation 3.

BANK GUARANTEE.

The *.............................................(hereinafter referred to as “the Bank”) hereby guarantees that in the event of the failure or refusal of ……………………………………………………….to pay on demand any amount which the Treasurer of the Commonwealth of Australia (hereinafter referred to as “The Treasurer ”) may at any time and from time to time require it/him/them to pay in discharge of its/his/their liability to deposit money or approved securities under the Insurance Acts 1932 (as to the occurrence of which event the Bank will accept a Certificate signed by the Treasurer as conclusive) the Bank will forthwith on demand by the Treasurer, pay to him that amount, provided that the total liability of the Bank under this guarantee shall not exceed £             

 

* Here Insert the name of the Bank.

† Here insert the name at notice of the company, companies, individual or individuals.

2958.—Price 3D.

This guarantee shall be a continuing security and will not be revoked except with the consent of the Treasurer, or by twelve months’ notice being given to the Treasurer in writing, but such revocation shall not release or prejudice the liability (to the limit aforesaid) of the Bank hereunder existing at the date of such revocation.

Dated at.........................this..........................day of               One thousand nine hundred and             

The common seal of............................

was hereunto affixed by.............................  (L.S.)

in the presence of.................................

Commonwealth of Australia.

Insurance Acts 1932.

Form A.2. Regulation 3.

UNDERTAKING BY BANK.

The *...................................................(hereinafter referred to as “the Bank”) hereby undertakes to pay to the Treasurer of the Commonwealth of Australia (hereinafter referred to as “the Treasurer”) on demand any amount which the Treasurer at any time, and from time to time certifies to be an amount required to be deposited by †               in discharge of its/his/their liability under the Insurance Acts 1932, but not exceeding in all the sum of £………….

This undertaking shall be a continuing security and will not be revoked except with the consent of the Treasurer, or by twelve months’ notice being given, to the Treasurer in writing, but such revocation shall not release or prejudice, the liability (to the limit aforesaid) of the Bank hereunder existing at the date of such revocation.

Dated at..............................this..........................day of …………………………….One thousand nine hundred and             

The common seal of *..........................

was hereunto affixed; by............................  (l.s.)

in the presence of.................................

 

* Here insert the name of the Bank.

† Here insert the name or names of the company, companies, individual, or individuals.

 

By Authority: L. F. Johnston, Commonwealth Government Printer, Canberra.

Overview

The Insurance Regulations 1932, Statutory Rules 1932 No. 100, were made under the authority of the Insurance Acts 1932 to refine and further regulate the insurance industry within Australia. These regulations were enacted by the Commonwealth Parliament, reflecting the policy objective to provide a structured and consistent framework for the administration of insurance practices. The regulations specifically address the amendment of forms for bank guarantees and undertakings, ensuring that these documents are substantially in accordance with prescribed forms. This legislative instrument aims to fill gaps in the regulatory oversight of insurance companies, particularly in the area of financial guarantees and securities, thereby safeguarding the interests of policyholders and maintaining the stability of the insurance sector.

Scope and Application

The Insurance Regulations, as amended by Statutory Rules 1932 No. 100, pertain to entities providing bank guarantees and undertakings in relation to the Insurance Acts 1932. These regulations primarily affect banks that issue guarantees or undertake payments to the Treasurer of the Commonwealth of Australia, ensuring compliance with the stipulated forms and conditions outlined in the Insurance Acts. The regulations specify that these entities must adhere to forms A.1 and A.2 for bank guarantees and undertakings, respectively. The geographic reach of these regulations is national, applying across the Commonwealth of Australia. There are no exclusions or exemptions stated in these regulations, meaning all banks and entities entering into such agreements must comply with the prescribed forms and conditions. The application of these regulations can be extended or restricted through subordinate instruments, allowing for adjustments to the forms and conditions as necessary.

Key Provisions

The main operative sections of these Regulations under the Insurance Acts 1932 (Sections 1-3) primarily focus on modifying existing bank guarantee forms and introducing a new regulation regarding the acceptance of documents that substantially align with prescribed forms, rather than strictly adhering to the prescribed forms. Specifically, Regulation 3 is amended to allow for the use of either Form A.1 or Form A.2 for bank guarantees (Section 1). Furthermore, Regulation 18 is introduced, allowing the Treasurer to accept documents that are substantially in accordance with prescribed forms, excluding bank guarantees or undertakings (Section 2). Lastly, the Schedule to the Insurance Regulations is amended to replace the existing Form A with new Forms A.1 and A.2 (Section 3). These Regulations impose obligations on the parties involved, specifically banks providing guarantees or undertakings under the Insurance Acts 1932. Banks must now use either Form A.1 or Form A.2 for bank guarantees, ensuring that the documents are substantially in accordance with the prescribed forms. The guarantee or undertaking provided by the bank must be a continuing security, which cannot be revoked except with the consent of the Treasurer or by giving twelve months' notice in writing to the Treasurer (Regulations 3 and 18). Moreover, the bank's liability under the guarantee or undertaking is limited to a specified amount. Failure to comply with these Regulations may result in civil or criminal consequences. However, the specific offences, penalties, or consequences for breach are not explicitly stated within the text of the Regulations. The maximum penalties for breaches of the Insurance Acts 1932 are outlined in the principal Act and may vary depending on the nature and severity of the breach. It is essential for the parties involved to adhere to the Regulations to avoid potential legal repercussions and ensure compliance with the Insurance Acts 1932.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.