Terrorism Insurance (Member) Appointment (No. 5) 2021

Overview

The Terrorism Insurance (Member) Appointment (No. 5) 2021 was enacted on 9 December 2021 by Michael Sukkar, the Assistant Treasurer and Minister for Housing, Minister for Homelessness, Social and Community Housing, under the authority granted by subsection 13(1) of the Terrorism Insurance Act 2003. This notifiable instrument addresses the need to appoint a qualified individual to the Australian Reinsurance Pool Corporation to ensure the continuity and effectiveness of the nation's terrorism risk insurance arrangements. The policy objective is to maintain a stable and resilient reinsurance market that can effectively manage and mitigate the risks associated with terrorist activities, thereby protecting the broader economy and ensuring the availability of terrorism insurance for businesses and individuals. This appointment of David Foster as a part-time member of the Australian Reinsurance Pool Corporation for a period of three years underscores the government's commitment to maintaining a robust framework for terrorism risk insurance, which is crucial for the economic stability and security of Australia. The enactment of this instrument aims to fill a specific gap by ensuring that the Corporation has the necessary expertise and capacity to oversee and manage the risks involved in terrorism insurance, thereby contributing to the overall resilience of the Australian insurance market.

Scope and Application

The Terrorism Insurance (Member) Appointment (No. 5) 2021I, issued under the authority of the Assistant Treasurer, Michael Sukkar, appoints David Foster as a member of the Australian Reinsurance Pool Corporation on a part-time basis for a duration of three years, commencing from the day following the registration of this instrument on the Federal Register of Legislation. This notifiable instrument applies directly to the individual named, David Foster, and his role within the Australian Reinsurance Pool Corporation. The legislation falls within the Commonwealth jurisdiction, thus it applies nationally across Australia and is not limited to a particular state or territory. There are no specific exclusions, exemptions, or thresholds outlined in this particular instrument; however, it is an appointment under the Terrorism Insurance Act 2003, and the broader applicability of the Act may include additional stipulations or conditions. Any further specifications regarding the appointment or the role of the member may be detailed in subordinate instruments or in the Act itself.

Key Provisions

The Terrorism Insurance (Member) Appointment (No. 5) 2021I, executed by Michael Sukkar in his capacity as Assistant Treasurer, Minister for Housing, Minister for Homelessness, Social and Community Housing, appoints David Foster as a part-time member of the Australian Reinsurance Pool Corporation (ARPC) for a term of three years. This appointment is pursuant to section 13(1) of the Terrorism Insurance Act 2003, which mandates that the Assistant Treasurer must be satisfied that the appointee meets the eligibility criteria outlined in section 13(3) of the Act. The commencement of this appointment is contingent upon the registration of this instrument on the Federal Register of Legislation. The appointment of David Foster under this legislation imposes certain obligations on him as a member of the ARPC. These responsibilities would likely include participating in board meetings, contributing to the strategic direction of the ARPC, and ensuring compliance with the provisions of the Terrorism Insurance Act 2003. As a part-time member, Foster would be expected to dedicate a reasonable amount of time and effort to these duties, aligned with the terms and expectations set forth by the ARPC and the Act. Failure to adhere to the duties and obligations set out in the Terrorism Insurance Act 2003 could result in various legal consequences for David Foster. While specific offences, penalties, or consequences are not detailed in this particular instrument, breaches of the Act generally could lead to disciplinary action, potential disqualification from office, or other civil or criminal liabilities as prescribed by the Act. The maximum penalties for offences under the Act may vary depending on the nature and severity of the breach, but could include substantial fines or imprisonment, reflecting the seriousness of the responsibilities associated with terrorism insurance and reinsurance.