Insurance Supervisory Levies Collection Regulations (Amendment)

Overview

The Insurance Supervisory Levies Collection Regulations (Amendment) 1992 No. 37, issued under the authority of the Treasurer, amends the Insurance Supervisory Levies Collection Regulations 1991. This regulatory amendment is designed to modify the remission available under the Insurance Supervisory Levies Collection Act 1989 for certain authorised general insurers. The primary objective of the Act is to facilitate the collection of annual supervisory levies from authorised general insurers and registered life offices, thereby recovering the costs associated with their supervision as stipulated under the Insurance Act 1973 and the Life Insurance Act 1945. The Insurance Supervisory Levies Collection Regulations 1991 were enacted to provide a structured framework for the collection of these levies, ensuring that the supervisory expenses are adequately covered. The amendment to the regulation enhances the remission available for insurers authorised under section 37 of the Insurance Act 1973, raising it from $9,600 to $11,000. This adjustment is intended to maintain the annual rate of levy for these insurers at $2,000, reflecting the unchanged supervisory requirements despite an increase in the overall supervisory levy rate. The Insurance and Superannuation Commission, responsible for the regulation and supervision of the insurance industry in Australia, oversees these amendments to ensure they align with the legislative intent of recovering the necessary supervisory costs while fairly distributing the financial burden among different insurers.

Scope and Application

The Insurance Supervisory Levies Collection Regulations (Amendment) 1992 No. 37 pertains to the collection of annual supervisory levies imposed on authorised general insurers and registered life offices, as outlined in the Insurance Supervisory Levies Collection Act 1989. This Act applies specifically to entities such as authorised general insurers, Lloyd's, and registered life offices, and is intended to recover the ongoing costs of supervision by the Insurance and Superannuation Commissioner under the Insurance Act 1973 and the Life Insurance Act 1945. The geographic and jurisdictional reach of the Act is national, operating across Australia in accordance with Commonwealth legislation. The Act allows for certain remissions from the full amount of the levy, particularly for insurers authorised under section 37 of the Insurance Act 1973. The amendment to these regulations increases the remission amount from $9,600 to $11,000, thereby maintaining the annual rate of levy for these insurers at $2,000 despite an increase in the supervisory levy rate from $11,600 to $13,000. This adjustment ensures that the supervisory effort required for these insurers remains appropriately reflected in the levied amount.

Key Provisions

The Insurance Supervisory Levies Collection Regulations (Amendment) 1992 No. 37 primarily amend Regulation 3 of the original Regulations. Under Regulation 3 (as amended), there is a provision that allows for a remission from the full amount of the levy for insurers authorised under section 37 of the Insurance Act 1973. This amendment increases the remission amount from $9,600 to $11,000, ensuring that the annual rate of levy payable by these insurers remains at $2,000. The overall aim is to maintain the annual rate of the supervisory levy for these insurers despite the increase in the annual rate of the supervisory levy imposed under the General Insurance Supervisory Levy Act from $11,600 to $13,000. The amended Regulation imposes certain obligations on authorised general insurers under section 37 of the Insurance Act 1973. These insurers must now be aware of the new remission amount, which has been adjusted to $11,000, and ensure that they account for this change in their annual supervisory levies. They must also continue to comply with all other relevant provisions under the Insurance Supervisory Levies Collection Act 1989 and related Acts, ensuring they meet their obligations in a timely and accurate manner. In terms of compliance and consequences, there are no specific offences or penalties mentioned in the Regulations themselves. However, failure to comply with the requirements of the Insurance Supervisory Levies Collection Act 1989, or any related Act, could result in various civil or criminal consequences as stipulated in those Acts. The maximum penalties would depend on the specific breach and the relevant statutory provisions, but could include fines or other legal actions as deemed appropriate by the court. It is important for insurers to adhere to the amended remission provisions and overall requirements to avoid any potential penalties or legal ramifications.