Terrorism Insurance (Member) Appointment (No. 4) 2021

Overview

The Terrorism Insurance (Member) Appointment (No. 4) 2021 instrument, issued by Michael Sukkar, the Assistant Treasurer and Minister for Housing, Minister for Homelessness, Social and Community Housing, was enacted to address a specific gap within the Terrorism Insurance Act 2003. This legislation was introduced to fill the need for qualified individuals to be appointed to the Australian Reinsurance Pool Corporation on a part-time basis, ensuring that the corporation is adequately staffed to manage its responsibilities in providing terrorism insurance. By appointing Julie-Anne Schafer, a person deemed eligible under the Act, for a three-year term starting from the day of registration, the instrument aims to support the efficient and effective operation of the Australian Reinsurance Pool Corporation. This appointment is intended to maintain the stability and functionality of the corporation, thereby contributing to the overarching policy objective of ensuring the availability of terrorism insurance in Australia.

Scope and Application

The Terrorism Insurance (Member) Appointment (No. 4) 2021I applies to the appointment of an individual, Julie-Anne Schafer, to the Australian Reinsurance Pool Corporation on a part-time basis. The appointment is made under the provisions of the Terrorism Insurance Act 2003, which governs the regulation of the Australian terrorism risk insurance market and the activities of the Australian Reinsurance Pool Corporation. The Act applies to the activities of the Australian Reinsurance Pool Corporation, which is responsible for providing terrorism risk insurance to Australian businesses and managing the risk of terrorism-related losses. The appointment is made by the Assistant Treasurer, Michael Sukkar, who holds multiple ministerial portfolios including Housing, Homelessness, and Social and Community Housing. The geographic reach of the Act is national, as it applies to the entire Australian jurisdiction. There are no stated exclusions, exemptions, or thresholds in this instrument, and the application of the Act is not extended or restricted through subordinate instruments. The appointment of Julie-Anne Schafer as a member of the Australian Reinsurance Pool Corporation is for a period of three years from the date of registration of this instrument on the Federal Register of Legislation.

Key Provisions

The main operative sections of the Terrorism Insurance (Member) Appointment (No. 4) 2021I (F2021N00227) involve the appointment of Julie-Anne Schafer as a member of the Australian Reinsurance Pool Corporation (ARPC) on a part-time basis for a period of three years. This appointment is made under the provisions of the Terrorism Insurance Act 2003 (TIA 2003), specifically under subsection 13(1), with Michael Sukkar, the Assistant Treasurer and Minister for Housing, confirming Ms. Schafer’s eligibility for appointment as stipulated in subsection 13(3) of the TIA 2003. This instrument was dated 9 September 2021 and officially registered on the Federal Register of Legislation thereafter. The obligations and requirements imposed on Julie-Anne Schafer by this appointment are primarily to act in the best interests of the ARPC and to fulfil her duties as a member in accordance with the provisions of the TIA 2003. This includes participating in the governance and decision-making processes of the ARPC, ensuring compliance with the legislative requirements, and contributing to the strategic direction and operations of the Corporation. As a part-time member, Ms. Schafer is expected to dedicate the necessary time and expertise to her role, while balancing any other professional commitments she may have. Breaches of the obligations or requirements imposed by this appointment could lead to various civil or criminal consequences. Under the TIA 2003, failure to act in good faith or in the best interests of the ARPC could result in disciplinary action or removal from her position. Additionally, any actions that contravene the provisions of the TIA 2003 could be subject to further legal repercussions, including fines and other penalties as prescribed by the relevant laws. The exact penalties for such breaches are not specified within this instrument but are outlined in the TIA 2003 and other relevant legislation.