Notice varying conditions on Authorisation to carry on insurance business
Insurance Act 1973
TO: ANZcover Insurance Pty Ltd ABN 97 082 275 125 (the general insurer) Level 9, 833 Collins Street, Melbourne 3000 Victoria
SINCE
A. APRA issued to the general insurer an Authorisation to carry on insurance business in
Australia under subsection 12(1) of the Insurance Act 1973 (the Act), on 25 June
2002 (the Authorisation); and
B. the Authorisation is subject to conditions,
I, Keith Chapman, a delegate of APRA:
(i) under paragraph 13(1)(b) of the Act, REVOKE those conditions on the Authorisation, specified in the attached Schedule; and
(ii) under paragraph 13(1)(a) of the Act, IMPOSE those conditions on the Authorisation,
specified in the attached Schedule.
When this Notice takes effect, the conditions which apply to the Authorisation are set out in the attached Schedule of consolidated conditions.
This Notice takes effect on the date of execution of this Notice.
Dated: 8 January 2013
[Signed]
Keith Chapman
Executive General Manager
Diversified Institutions Division
Interpretation Document ID: 207146
In this Notice
APRA means the Australian Prudential Regulation Authority. insurance business has the meaning given in section 3 of the Act. prudential standard has the meaning given in section 3 of the Act.
Note 1
Under subsection 13(1) of the Act, APRA may, at any time, by written notice to the general insurer
impose conditions or additional conditions or vary or revoke conditions imposed on the insurer's authorisation under section 12 of the Act. The conditions must relate to prudential matters.
Note 2
Under subsection 13(2) of the Act, a condition may be expressed to have effect despite anything in
the prudential standards.
Note 3
Under subsection 13(4) of the Act, if APRA imposes, varies or revokes the conditions on a general
insurer's authorisation, APRA must give written notice to the insurer and ensure that notice that the action has been taken is published in the Gazette.
Note 4
Under subsection 14(1) of the Act, a general insurer commits an offence if:
(a) the insurer does an act or fails to do an act; and
(b) doing the act or failing to do the act results in a contravention of a condition of the insurer's authorisation under section 12 of the Act; and
(c) there is no determination in force under subsection 7(1) of the Act, that subsection 14(1) of the Act does not apply to the insurer.
The penalty is 300 penalty units. Under subsection 14(1A) of the Act, where an individual commits an offence against subsection 14(1) of the Act, because of Part 2.4 of the Criminal Code or commits an offence under Part
2.4 of the Criminal Code in relation to an offence against subsection 14(1) of the Act, the individual is punishable, on conviction, by a penalty not exceeding 60 penalty units. Under subsection 14(2) of the Act, an offence against section 14 of the Act, is an offence of strict liability.
Note 5
Under subsection 13(6) of the Act, a decision to impose conditions, or additional conditions, or to
vary the conditions on the Authorisation are reviewable decisions to which Part VI of the Act applies. If you are dissatisfied with a reviewable decision, you may seek reconsideration of the decision by APRA in accordance with subsection 63(2) of the Act. The request for reconsideration must be in writing, must state the reasons for the request, and must be given to APRA within 21 days after the decision first comes to your
notice or within such further period as APRA allows. If dissatisfied with APRA’s reconsidered decision confirming or varying the first decision, you may, subject to the Administrative Appeals Act 1975, apply to the Administrative Appeals Tribunal for review of the reconsidered decision.
The address where written notice may be given to APRA is Level 26, 400 George St, Sydney NSW 2000.
Schedule - the conditions which are being revoked
1. The insurer may only underwrite the insurable risks of the Australia and New Zealand Banking Group Limited (“ANZ”) and any of its subsidiaries. A body corporate is a subsidiary of ANZ if ANZ holds more than one-half of the issued share capital of the body corporate (excluding any part of that issued share capital that carried no right to participate beyond a specified amount in distribution of either profits or capital) or the body corporate is a subsidiary of a subsidiary of ANZ.
Schedule - the conditions being imposed
- Insurance business conducted in Australia by the general insurer can only be conducted
for the sole purpose of discharging liabilities that arose under insurance contracts entered into prior to 1 December 2012.
Schedule of consolidated conditions
1. Insurance business conducted in Australia by the general insurer can only be conducted for the sole purpose of discharging liabilities that arose under insurance contracts entered into prior to 1 December 2012.