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Insurance Act 1973
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Department of the Treasury
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C2025C00157 (C73)
21 February 2025
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Part I—Preliminary
1 Short title
2 Commencement
2A Main objects of this Act
3 Interpretation
3A Certain insurance contracts not taken to be insurance business
4 Meaning of subsidiary
4A Meaning of relevant group of bodies corporate
4B Determining whether bodies corporate are related to one another
5 Application of Act
6 Act extends to external Territories
7 Determination that certain provisions do not apply
7A Breach of condition of a determination
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Part II—Administration
8 General administration of Act
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Part III—Authorisation to carry on insurance business
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Division 1—Need to be authorised
9 Persons other than bodies corporate and Lloyd’s underwriters carrying on insurance business
10 Bodies corporate and Lloyd’s underwriters carrying on insurance business
11 Meaning of general insurer
11A Injunctions
Division 2—Authorisation to carry on insurance business
12 Obtaining an authorisation
13 Conditions on an authorisation
14 Breach of authorisation conditions
Division 3—Revocation of an authorisation
15 Revocation of authorisation etc.
16 When APRA must revoke a general insurer’s authorisation
16A Continuation of effect of general insurer’s authorisation
17 Assignment of liabilities to enable revocation
Division 3A—Transfer and amalgamation of insurance business
17A Interpretation
17B Transfer or amalgamation of insurance business
17C Steps to be taken before application for confirmation
17D Actuarial report on scheme
17E Application to Court
17F Confirmation of scheme
17G Effect of confirmation etc.
17H Costs of actuary’s report
17I Documents to be lodged in case of transfer or amalgamation
Division 4—Authorisation to be a NOHC of a general insurer
18 Authorisation to be a NOHC
19 Conditions on a NOHC authorisation
20 Breach of conditions on a NOHC authorisation
21 When APRA may revoke a NOHC authorisation
22 When APRA must revoke a NOHC authorisation
22A Continuation of effect of body corporate’s NOHC authorisation
23 Publication of list of authorised NOHCs
23A APRA may give notice to ensure that general insurer has an authorised NOHC
Division 5—Directors, senior managers and other representatives of general insurers and authorised NOHCs
24 Disqualified persons must not act for general insurers or authorised NOHCs
25 Who is a disqualified person?
25A Court power of disqualification
26 Court power to revoke or vary a disqualification etc.
26A Privilege against exposure to penalty—disqualification under section 25A or 44
27 APRA may remove a director or senior manager of a general insurer, authorised NOHC or corporate agent
Division 6—Other matters
28 General insurer must hold sufficient assets
28A Commencement and cessation of insurance business
29 Change of name of a general insurer or authorised NOHC
30 General insurer or authorised NOHC ceasing to exist
31 Effect of authorisation as a general insurer
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Part IIIA—Prudential supervision and monitoring of general insurers, authorised NOHCs and their subsidiaries
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Division 1—The prudential standards
32 APRA may determine prudential standards
34 Notification of prudential standards
35 Obligation to comply with the prudential standards
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Division 2—Conversion and write off provisions
36A Definitions
36B Conversion and write off provisions
36C Conversion or write off etc. not grounds for denial of obligations
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Division 3—Monitoring of prudential matters
38 APRA to monitor prudential matters
38AA Requirement to notify APRA of certain matters
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Division 4—Protections in relation to information
38F Self incrimination
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Part IV—Auditors, actuaries and accounts
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Division 1—The auditors and actuary of a general insurer
39 Requirement for general insurers to have an auditor and actuary
40 Additional auditors
41 Compliance with prudential standards
43 When a person stops holding an appointment
43A Disqualified persons must not act as auditor or actuary of general insurer
44 Court power of disqualification
45 Court power to revoke or vary a disqualification etc.
46 Notification of appointment as an auditor or actuary
48 Referring matters to professional associations for auditors and actuaries
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Division 2—Provision of information to APRA
49 Duty of auditors and actuaries to give information when required
49A Additional duty of auditors and actuaries to give information
49B Auditor or actuary may give information to APRA
49D Auditor must notify APRA of attempts to unduly influence etc. the auditor
49DA Giving false or misleading information to auditor
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Division 3—Actuarial investigation required by APRA
49E Actuarial investigation of liabilities
49F Offence for contravening section 49E
49G Who can be appointed as a section 49E actuary
49H Delegate’s decision to extend time for providing actuary’s report
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Division 4—Role of auditor and actuary of a general insurer
49J Auditor’s role
49K Actuary’s role
49L Lodgment of auditor’s certificate and actuary’s reports
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Division 5—Accounts
49Q Keeping of accounting records
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Division 6—Removal of auditors and actuaries
49R APRA may direct removal of auditor or actuary
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Part V—Investigations of general insurers etc.
50 Interpretation
52 Investigation of general insurer, authorised NOHC or subsidiary by APRA or inspector
54 Entry on premises
55 Powers of APRA or inspector
56 Persons to comply with requirements of APRA or the inspector
57 Person may be represented by a legal practitioner
58 Notes of examination of person
59 Delegation
60 Report of APRA or the inspector
61 Offences
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Part VA—Investigations of unauthorised insurance
62A Investigations relating to contraventions of section 9 or 10 etc.
62B Access to premises
62C Powers of APRA or inspector
62D Persons to comply with requirements of APRA or the inspector
62E Person may be represented by a legal practitioner
62F Notes of examination of person
62G Delegation
62H Investigations to be completed within a reasonable time
62J Report of the inspector
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Part VB—Judicial management, statutory management, other external administration and winding up
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Division 1—Judicial management of general insurers
62K Application for order for judicial management
62L Order for judicial management after investigation
62M Order for judicial management on other grounds
62N Commencement of judicial management
62P Moratorium—effect of judicial management on court and tribunal proceedings
62PA Moratorium—effect of judicial management on enforcement process regarding property
62PB Moratorium—effect of judicial management on disposal of property
62PC Moratorium—Restrictions on exercise of third party property rights
62PD Moratorium—effect of judicial management on supply of essential services
62PE Moratorium—effect of judicial management on annual general meeting
62R Appointment of judicial manager
62S Remuneration of judicial manager
62T Effect of judicial management on powers of officers etc.
62U Effect on external administrator of judicial manager managing general insurer
62V Judicial management not ground for denial of obligations
62W Continued application of other Parts of Act
62X Federal Court’s control of judicial manager
62Y Powers of judicial manager
62Z Judicial manager’s additional powers to facilitate recapitalisation
62ZA Considering report before acting under section 62Z
62ZB Act under section 62Z not ground for denial of obligations
62ZC Application by APRA for instructions to judicial manager
62ZD Request by APRA for information
62ZE Duration of judicial management
62ZF Cancellation of judicial management
62ZG How judicial manager is to manage
62ZH Disclaimer of onerous property
62ZI Report by judicial manager
62ZJ Order of Federal Court on report of judicial manager
62ZK Transfer of business to another general insurer
62ZL Resignation
62ZM Immunity
62ZN Exceptions to Part IV of the Competition and Consumer Act 2010
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Division 1A—Statutory management of general insurers
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Subdivision A—General provisions relating to statutory management
62ZOA Consequences of inability or failure of general insurer etc. to meet certain requirements
62ZOB Start of control of body corporate’s business by Insurance Act statutory manager
62ZOC Insurance Act statutory managers—termination of control
Subdivision B—Provisions dealing with control of a body corporate’s business by an Insurance Act statutory manager
62ZOD Insurance Act statutory manager’s powers and functions
62ZOE Safeguards on exercise of Insurance Act statutory manager’s powers and functions
62ZOF Insurance Act statutory manager’s additional powers to facilitate recapitalisation
62ZOG Considering report before acting under section 62ZOF
62ZOH Act under section 62ZOF not ground for denying obligation
62ZOI APRA may require a person to give information etc. for the purposes of this Division
62ZOJ Administrator in control—additional powers to recommend action by APRA
62ZOK Insurance Act statutory manager’s liabilities and duties
62ZOL Transaction by Insurance Act statutory manager not voidable under section 588FE of the Corporations Act 2001
62ZOM Administrator in control—additional duties
62ZON Administrator in control—additional duties where action may affect financial system stability in Australia
62ZOO Termination of Insurance Act statutory manager’s appointment
62ZOP Effect on directors of Insurance Act statutory manager taking control of a body corporate’s business
62ZOQ Effect on external administrator of Insurance Act statutory manager taking control of a body corporate’s business
62ZOR Moratorium—effect of Insurance Act statutory management on court and tribunal proceedings
62ZOS Moratorium—effect of Insurance Act statutory management on enforcement process regarding property
62ZOT Moratorium—effect of Insurance Act statutory management on disposal of property
62ZOU Moratorium—Restrictions on exercise of third party property rights
62ZOV Moratorium—effect of Insurance Act statutory management on supply of essential services
62ZOW Moratorium—effect of Insurance Act statutory management on annual general meeting
62ZOX Insurance Act statutory manager being in control not grounds for denial of obligations
62ZOY Application of other provisions
62ZOZ Costs of statutory management
62ZOZA APRA must report to Minister and publish information about statutory management
62ZOZB Exceptions to Part IV of the Competition and Consumer Act 2010
Division 2—Extra provisions relating to external administration of general insurers
62ZP Relationship of this Division with Chapter 5 of, and Schedule 2 to, the Corporations Act 2001
62ZQ Involving APRA in proposed appointment of external administrators of general insurers and NOHCs
62ZR Involving APRA in applications by liquidator
62ZS Application by APRA for directions
62ZT APRA may request information from liquidator
Division 3—Extra provisions for winding up general insurers
62ZU Order to wind up general insurer on APRA’s application
62ZV Relationship with the Corporations Act 2001
Division 4—Special provisions relating to foreign general insurers
62ZVA Limited application of Divisions 1, 1A and 2 to foreign general insurers
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Part VC—Financial claims scheme for policyholders with insolvent general insurers
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Division 1—Preliminary
62ZW Purpose of this Part
62ZX APRA’s functions relating to this Part
62ZY Determination that policies are not protected policies
62ZZ Determination that persons do not have entitlements
62ZZA Allowing extra time for claims
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Division 2—Declaration of general insurer
62ZZC Declaration that Division 3 applies in relation to general insurer
62ZZD Advice and information for decision on making declaration
62ZZE APRA may advise Minister of its belief of insolvency
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Division 3—Early payment of claims
62ZZF Entitlement to payment of claimant under protected policy
62ZZFA Interim claims and payments for section 62ZZF entitlements
62ZZG Entitlement to payment of third party
62ZZGA Interim claims and payments for section 62ZZG entitlements
62ZZH Entitlement on basis of notionally extended cover
62ZZI APRA must determine insurer’s liability in respect of claim
62ZZJ Determinations APRA must make on application
62ZZK Payment
62ZZKA Giving information about payments in a financial year
62ZZL Substitution of APRA as insurer’s creditor
62ZZM Meeting of entitlement taken to be payment by insurer
62ZZMA APRA may make transferred liabilities determination where transfer of business
62ZZMB Payment amounts under transferred liabilities determination
62ZZMC Consequences of transferred liabilities determination once certificate of transfer issued
62ZZMD Certain provisions do not apply in relation to entitlement of receiving body as a result of transferred liabilities determination
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Division 4—Administration
62ZZN APRA to try to ensure awareness of making of claims
62ZZO Requiring assistance
62ZZP Obtaining information relevant to determining and paying entitlements
62ZZQ Enforcing requirement to give information
62ZZR Obtaining further information from claimant or applicant
62ZZS Recovery of overpayments
62ZZT APRA may delegate functions and powers under this Part
62ZZU APRA’s costs of administration
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Division 5—Exceptions to Part IV of the Competition and Consumer Act 2010
62ZZV Exceptions to Part IV of the Competition and Consumer Act 2010
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Part VI—Review of decisions
63 Review of certain decisions
64 Statements to accompany notification of decisions
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Part VII—Lloyd’s
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Division 1—Preliminary
65 Simplified outline
66 Definitions
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Division 2—Security trust fund arrangements
67 Security trust funds
68 Security trust fund arrangements
69 Designated security trust funds
70 Rules about designated security trust funds
71 Transfers to trustee of security trust fund—presumption of regularity
72 When security trust fund constitutes an adequate security for the class of insurance liabilities secured by the fund
73 Affairs of security trust fund
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Division 3—General powers of APRA
74 APRA may direct that Lloyd’s underwriters must not issue or renew policies
75 Actuarial investigation of adequacy of security provided by designated security trust funds
76 Provision for liabilities in the accounts of designated security trust funds
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Division 4—Investigations
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Subdivision A—Inquiries and directions by APRA
77 Inquiries by APRA
78 Direction not to deal with certain assets
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Subdivision B—Investigations
79 Investigation of designated security trust fund by APRA or inspector
80 Entry on premises
81 Powers of APRA or the inspector to obtain information etc.
82 Persons to comply with requirements of APRA or the inspector
83 Person may be represented by a legal practitioner
84 Notes of examination of person
85 Delegation
86 Report of APRA or the inspector
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Subdivision C—Offences
87 Offences
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Division 5—Judicial trusteeship of designated security trust funds
88 Application for order for judicial trusteeship
89 Grounds for order for judicial trusteeship
90 Commencement of judicial trusteeship
91 Stay of proceedings during judicial trusteeship
92 Appointment of judicial trustee
92A Terms and conditions of appointment of judicial trustee
92B Property vesting orders
92C Powers of judicial trustee
92D Court’s control of judicial trustee
92E Direction not to deal with certain assets
92F Provision for liabilities in the accounts of designated security trust funds
92G Application by APRA for instructions to judicial trustee
92H Request by APRA for information
92J Duration of judicial trusteeship
92K Cancellation of judicial trusteeship
92L Report by judicial trustee
92M Judicial trustee may formulate a scheme for the winding up or dissolution, or both, of a designated security trust fund
92N Resignation
92P Indemnity
92Q Security deposit
92R Application of security deposit—costs of judicial trusteeship of designated security trust fund
92S Return of security deposit
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Division 6—Authorisation of Lloyd’s underwriters
93 Lloyd’s underwriters
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Division 7—Miscellaneous
94 Trustee of designated security trust fund not to be treated as carrying on insurance business
94A Injunctions
95 Agent of Lloyd’s
96 Address for service
97 Lloyd’s to give notice of by laws
98 Part does not authorise Lloyd’s underwriter to carry on any business the underwriter could not otherwise have carried on
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Part VIII—Effect of Act on other laws
99 Operation of State and Territory laws on section 10
100 Act not to affect certain State and Territory laws
102 Laws about accounts or accounting records
103 Parts V and VA not to affect operation of certain laws
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Part IX—Directions
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Division 1—Recapitalisation directions
103A Who this Division applies to
103B Recapitalisation direction by APRA
103C Additional contents of a recapitalisation direction
103D Compliance with a recapitalisation direction
103E APRA must obtain expert’s report on the fair value of shares etc.
103F Determination of the fair value of shares by an expert
103G Determination of the fair value of rights by an expert
103H Ascertaining the fair value of other capital instruments
103J Contravention of certain provisions does not affect the validity of recapitalisation direction etc.
103K Recapitalisation direction not grounds for denial of obligations
103L Supply of information about issue and revocation of recapitalisation directions
103M Non compliance with a recapitalisation direction
103N Exceptions to Part IV of the Competition and Consumer Act 2010
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Division 2—Other directions
104 APRA may give directions in certain circumstances
105 Direction not grounds for denial of obligations
106 Supply of information about issue and revocation of directions
108 Non compliance with a direction
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Division 3—Secrecy and disclosure provisions relating to all directions
109 APRA may determine that a direction is covered by secrecy provision
109A Secrecy relating to directions
109B Disclosure of publicly available information
109C Disclosure allowed by APRA
109D Disclosure to legal representative for purpose of seeking legal advice
109E Disclosure allowed by APRA Act secrecy provision
109F Disclosure in circumstances set out in the regulations
109G Disclosure for purpose
109H Exceptions operate independently
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Part X—Miscellaneous
114 Use of words “insurance” and “insurer”
115 Power to require production of information, books, accounts or documents
115AA Information relating to contraventions of section 9 or 10 etc.
115AB Persons to comply with requirements of APRA or authorised person
115A Access to premises
116 General insurer not to carry on insurance business after start of winding up
116A Assets and liabilities in Australia
117 Address for service in Australia
118 Agent in Australia
120 Saving if section 93 ceases to have effect
121 Service of documents and notices
122 Register to be kept
124 Evidence and judicial notice
125 APRA Act secrecy provisions apply
126 Acceptance and enforcement of undertakings
127 Severability
127A Compensation for acquisition of property
127B Protection from liability—general
127C Protection from liability—directions and secrecy
127D Protection from liability—provisions do not limit each other
127E Act has effect despite the Corporations Act
127F Civil penalty for contravening section 8A of the Terrorism and Cyclone Insurance Act 2003
128 Signing of documents
128A Continuing offences
129 Time for bringing proceedings
129AA Institution of offence proceedings no bar to judicial management or winding up
129A Joinder of charges and penalties for certain offences
129D Injunctions
129E Civil penalties
130 Preparation of forms
131 Costs of investigations
131A Authorising contracts etc. for protecting policyholders’ interests and financial system stability
131B Borrowing funds for payments under authorised contracts etc.
132 Regulations
Schedule 1—Civil penalties
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Part 1—Contravention of a civil penalty provision
1 Federal Court may order person to pay pecuniary penalty for contravening civil penalty provision
2 Contravening a civil penalty provision is not an offence
3 Persons involved in contravening civil penalty provision
4 Recovery of a pecuniary penalty
5 Civil evidence and procedure rules for pecuniary penalty orders
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Part 2—Civil penalty proceedings and criminal proceedings
6 Civil proceedings after criminal proceedings
7 Criminal proceedings during civil proceedings
8 Criminal proceedings after civil proceedings
9 Evidence given in proceedings for penalty not admissible in criminal proceedings
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Endnotes
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
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