Commonwealth: Insurance Act 1973 (Cth)

Insurance Act 1973 No. 76, 1973 Compilation No. 73 Compilation date: 21 February 2025 Includes amendments: Act No. 14, 2025 About this compilation This compilation This is a compilation of the Insurance Act 1973 that shows the text of the law as amended and in force on 21 February 2025 (the compilation date). The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law. Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law. Self‑repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents 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 Part II—Administration 8 General administration of Act Part III—Authorisation to carry on insurance business 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 Part IIIA—Prudential supervision and monitoring of general insurers, authorised NOHCs and their subsidiaries Division 1—The prudential standards 32 APRA may determine prudential standards 34 Notification of prudential standards 35 Obligation to comply with the prudential standards 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 Division 3—Monitoring of prudential matters 38 APRA to monitor prudential matters 38AA Requirement to notify APRA of certain matters Division 4—Protections in relation to information 38F Self‑incrimination Part IV—Auditors, actuaries and accounts 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 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 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 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 Division 5—Accounts 49Q Keeping of accounting records Division 6—Removal of auditors and actuaries 49R APRA may direct removal of auditor or actuary 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 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 Part VB—Judicial management, statutory management, other external administration and winding up 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 Division 1A—Statutory management of general insurers 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 Part VC—Financial claims scheme for policyholders with insolvent general insurers 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 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 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 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 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 Part VI—Review of decisions 63 Review of certain decisions 64 Statements to accompany notification of decisions Part VII—Lloyd's Division 1—Preliminary 65 Simplified outline 66 Definitions 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 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 Division 4—Investigations Subdivision A—Inquiries and directions by APRA 77 Inquiries by APRA 78 Direction not to deal with certain assets 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 Subdivision C—Offences 87 Offences 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 Division 6—Authorisation of Lloyd's underwriters 93 Lloyd's underwriters 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 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 Part IX—Directions 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 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 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 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 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 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 Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history An Act relating to Insurance Part I—Preliminary 1 Short title This Act may be cited as the Insurance Act 1973. 2 Commencement (1) Parts I and II shall come into operation on the day on which this Act receives the Royal Assent. (2) The remaining provisions of this Act shall come into operation on such date as is, or on such dates as respectively are, fixed by Proclamation. 2A Main objects of this Act (1) The main objects of this Act are: (a) to protect the interests of policyholders and prospective policyholders under insurance policies (issued by general insurers and Lloyd's underwriters) in ways that are consistent with the continued development of a viable, competitive and innovative insurance industry; and (b) to promote financial system stability in Australia. (2) This Act, and the prudential standards determined by APRA under this Act, achieve this mainly by: (a) restricting who can carry on insurance business in Australia by requiring general insurers, and the directors and senior management of general insurers, to meet certain suitability requirements; and (b) imposing primary responsibility for protecting the interests of policyholders on the directors and senior management of general insurers; and (c) imposing on general insurers requirements to promote prudent management of their insurance business (including requirements concerning capital adequacy, the valuation of liabilities, reinsurance arrangements and the effectiveness of risk management strategies and techniques); and (d) providing for the prudential supervision of general insurers by APRA; and (e) providing for APRA to manage or respond to circumstances in which the ability of a general insurer to meet its obligations may be threatened; and (f) providing for certain policyholders to be paid amounts where the financial claims scheme has been declared to apply in relation to a general insurer. (3) Generally, the provisions of this Act apply to general insurers. However, there are a number of special provisions that apply only to Lloyd's underwriters. 3 Interpretation (1) In this Act, unless the contrary intention appears: accident insurance business means the business of undertaking liability under policies of insurance in respect of the happening of personal accidents (whether fatal or not), disease or sickness or of any class of personal accidents, disease or sickness. accounting records, in relation to a body corporate, includes invoices, receipts, orders for the payment of money, bills of exchange, cheques, promissory notes, vouchers and other documents of prime entry and also includes such working papers and other documents as are necessary to explain the methods and calculations by which accounts of the body corporate are made up, and such other documents (if any) as are prescribed. accounts, except in Part VII, means ordinary accounts and statutory accounts. ADI (authorised deposit‑taking institution) means a body corporate that is an ADI for the purposes of the Banking Act 1959. administrator, of a body corporate's business, means an administrator appointed under subsection 62ZOA(1) to take control of the body corporate's business. approved form means (except in section 62ZZKA) a form approved, in writing, by APRA. APRA means the Australian Prudential Regulation Authority. APRA member has the same meaning as in the Australian Prudential Regulation Authority Act 1998. APRA Special Account has the same meaning as in the Australian Prudential Regulation Authority Act 1998. APRA staff member has the same meaning as in the Australian Prudential Regulation Authority Act 1998. ASIC means the Australian Securities and Investments Commission. Australia includes a Territory to which this Act extends. Australian business assets and liabilities, of a foreign general insurer, has the meaning given by subsection 62ZVA(3). Australian financial sector statutory manager (or AFS statutory manager) means: (a) a Banking Act statutory manager (within the meaning of the Banking Act 1959); or (b) an Insurance Act statutory manager; or (c) a Life Insurance Act statutory manager (within the meaning of the Life Insurance Act 1995). authorised NOHC means a body corporate: (a) authorised under section 18; and (b) that is a NOHC of a general insurer or general insurers. authorised person: (a) except in Part VA, means a person authorised under subsection (1A); or (b) in Part VA, means APRA, or a person authorised by APRA, in writing, for the purposes of that Part. barrister or solicitor means a barrister or solicitor of the High Court or of the Supreme Court of a State, or of the Australian Capital Territory or the Northern Territory. books includes any register or other record of information or any accounts or accounting records, however compiled, recorded or stored, and also includes any document. business day means a day that is not a Saturday, a Sunday or a public holiday or bank holiday in the place concerned. charge means a charge created in any way and includes a mortgage or an agreement to give or execute a charge or mortgage, whether upon demand or otherwise. civil penalty provision: a subsection of this Act (or a section of this Act that is not divided into subsections) is a civil penalty provision if: (a) the words "civil penalty" and one or more amounts in penalty units are set out at the foot of the subsection (or section); or (b) another provision of this Act specifies that the subsection (or section) is a civil penalty provision. corporate agent means a body corporate that is appointed under section 118 as an agent in Australia for the purpose of that section. data processing device means any article or material (for example, a disk) from which information is capable of being reproduced with or without the aid of any other article or device. debenture includes debenture stock, bonds, notes and any other document evidencing or acknowledging indebtedness of a body corporate in respect of money that is or may be deposited with or lent to the body corporate, whether constituting a charge on property of the body corporate or not, but does not include: (a) for the purposes of a particular provision of this Act—a document prescribed for the purposes of that provision; or (b) for the purposes of this Act generally—a prescribed document. declared general insurer means a general insurer specified in a declaration under section 62ZZC as a general insurer in relation to which Division 3 of Part VC applies. direction under this Act means a direction under any of the following provisions: (a) section 17; (b) section 27; (c) section 49R; (d) section 74; (e) section 76; (f) section 78; (g) section 103B; (h) section 104. director, in relation to a body corporate, includes a member of the governing body of the body corporate. external administrator means any of the following: (a) a liquidator; (b) a receiver, manager, managing controller, receiver and manager or other controller (other than a judicial manager or an Insurance Act statutory manager); (c) a voluntary administrator or administrator of a deed of a company arrangement or a scheme manager. Expressions used in this definition have the same meanings as they have in the Corporations Act 2001. Federal Court means the Federal Court of Australia. Finance Minister means the Minister who administers the Public Governance, Performance and Accountability Act 2013. Financial Claims Scheme Special Account has the same meaning as in the Australian Prudential Regulation Authority Act 1998. financial market has the same meaning as in Chapter 7 of the Corporations Act 2001. Financial System Stability Special Account means the Financial System Stability Special Account established by section 70E of the Banking Act 1959. financial year, in relation to a body corporate, has the same meaning as that expression has in relation to a body for the purposes of the Corporations Act 2001 (disregarding Schedule 2 of that Act). foreign general insurer means a body corporate that: (a) is a foreign corporation within the meaning of paragraph 51(xx) of the Constitution; and (b) is authorised to carry on insurance business in a foreign country; and (c) is authorised under section 12 to carry on insurance business in Australia. friendly society means: (a) a body that is a friendly society for the purposes of the Life Insurance Act 1995; or (b) a body that is registered or incorporated as a friendly society under a law of a State or Territory; or (c) a body that is permitted, by a law of a State or Territory, to assume or use the expression friendly society; or (d) a body that, immediately before the date that is the transfer date for the purposes of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999, was registered or incorporated as a friendly society under a law of a State or Territory. general insurer has the meaning given by section 11. government entity has the meaning given by subsection 114(5). holding company, of a body corporate, means another body corporate of which the first body corporate is a subsidiary. Insurance Act statutory manager has the meaning given by subsection 62ZOA(8). insurance business means the business of undertaking liability, by way of insurance (including reinsurance), in respect of any loss or damage, including liability to pay damages or compensation, contingent upon the happening of a specified event, and includes any business incidental to insurance business as so defined, but does not include: (a) life insurance business; or (b) accident insurance business undertaken solely in connexion with life insurance business; or (c) pecuniary loss insurance business carried on solely in the course of carrying on banking business and for the purposes of that business by an ADI; or (d) business in relation to the benefits provided by a friendly society or trade union for its members or their dependants; or (e) business in relation to the benefits provided for its members or their dependants by an association of employees or of employees and other persons that is registered as an organisation, or recognised, under the Fair Work (Registered Organisations) Act 2009; or (f) business in relation to a scheme or arrangement under which superannuation benefits, pensions or payments to employees or their dependants (and not to any other persons) on retirement, disability or death are provided by an employer or an employer's employees or by both, wholly through an organization established solely for that purpose by the employer or the employer's employees or by both; or (g) business in relation to a scheme or arrangement for the provision of benefits consisting of: (i) the supply of funeral, burial or cremation services, with or without the supply of goods connected with any such service; or (ii) the payment of money, upon the death of a person, for the purpose of meeting the whole or a part of the expenses of and incidental to the funeral, burial or cremation of that person; and no other benefits, except benefits incidental to the scheme or arrangement; or (h) business undertaken by a person, being a carrier, carrier's agent, forwarding agent, wharfinger, warehouseman or shipping agent, relating only to the person's liability in respect of goods belonging to another person and in the possession, or under the control, of the first‑mentioned person for the purpose of the carriage, storage or sale of those goods; or (i) business undertaken by a person, being an innkeeper or lodging‑house keeper, relating only to the person's liability in respect of goods belonging to another person and in the possession or under the control of a guest at the inn or lodging‑house of which the first‑mentioned person is the innkeeper or lodging‑house keeper or deposited with the innkeeper or lodging‑house keeper for safe custody; or (j) the business of insuring the property of a registered religious institution (within the meaning of the Fringe Benefits Tax Assessment Act 1986) where the person carrying on the business does not carry on any other insurance business; or (ja) health‑related business within the meaning of section 131‑15 of the Private Health Insurance Act 2007 carried on by a private health insurer within the meaning of that Act through a health benefits fund within the meaning of section 131‑10 of that Act; or (k) health insurance business within the meaning of Division 121 of the Private Health Insurance Act 2007 carried on by a private health insurer within the meaning of that Act. Note: Some contracts of insurance may be excluded from this definition under section 3A. judicial manager means a judicial manager appointed by the Federal Court under section 62R. life insurance business has the same meaning as in the Life Insurance Act 1995. liquidator includes a provisional liquidator. listing rules has the same meaning as in the Corporations Act 2001. Lloyd's means the society of that name incorporated by the Act of the United Kingdom known as Lloyd's Act 1871. Lloyd's underwriter means an underwriting member of Lloyd's. NOHC or non‑operating holding company, in relation to a body corporate, means a body corporate: (a) of which the first body corporate is a subsidiary; and (b) that does not carry on a business (other than a business consisting of the ownership or control of other bodies corporate); and (c) that is incorporated in Australia. NOHC authorisation has the meaning given by section 18. NOHC/NOHC subsidiary has the meaning given by subsection 103A(5). ordinary accounts means ledgers, journals, profit and loss accounts and balance‑sheets, whether or not prepared for the purposes of any law (including this Act), and includes statements, reports and notes (other than auditors' reports or directors' reports) attached to, or intended to be read with, any of the foregoing, but does not include statutory accounts. pecuniary loss insurance business means the business of undertaking liability by way of insurance against any one or more of the following risks: (a) risks of loss to the persons insured arising from the insolvency of their debtors or from the failure (otherwise than through insolvency) of their debtors to pay their debts when due; (b) risks of loss to the persons insured arising from their having to perform contracts of guarantee; (c) risks of loss to the persons insured attributable to interruptions of the carrying on of business carried on by them; (d) risks of loss to the persons insured attributable to their incurring unforeseen expense. personal information has the same meaning as in the Privacy Act 1988. pre‑authorisation liability means a liability, contingent or otherwise, that is assumed (whether in Australia or elsewhere) by a body corporate that, after assuming the liability, becomes authorised under section 12 to carry on insurance business in Australia. principal auditor, of a general insurer, means an auditor appointed by the insurer under paragraph 39(1)(a). profit and loss account includes income and expenditure account, revenue account and any other account showing the results of the business of a body corporate for a period. protected policy means a policy other than: (a) a policy prescribed by the regulations as not being a protected policy; and (b) a policy determined under section 62ZY not to be a protected policy. prudential matters means matters relating to: (a) the conduct of any part of the affairs of, or the structuring or organising of, a general insurer, an authorised NOHC, a relevant group of bodies corporate, or a particular member or members of such a group, in such a way as: (i) to keep the general insurer, NOHC, group or member or members of the group in a sound financial position; or (ii) to facilitate resolution of the general insurer, NOHC, group or member or members of the group; or (iii) to protect the interests of policyholders of any general insurer; or (iv) not to cause or promote instability in the Australian financial system; or (b) the conduct of any part of the affairs of a general insurer, an authorised NOHC, a relevant group of bodies corporate, or a particular member or members of such a group, with integrity, prudence and professional skill. prudential standard means a standard determined by APRA under section 32. recapitalisation direction means a direction given by APRA under subsection 103B(1) or (1B). related body corporate, in relation to a body corporate, means: (a) in Part V—a body corporate that is related to the first‑mentioned body, as determined in accordance with section 50; and (b) otherwise—a body corporate that is related to the first‑mentioned body, as determined in accordance with section 4B. relevant group of bodies corporate has the meaning given by section 4A. resolution means the process by which APRA or other relevant persons manage or respond to an entity: (a) being unable to meet its obligations; or (b) being considered likely to be unable, or being considered likely to become unable, to meet its obligations; or (c) suspending payment, or being considered likely to suspend payment; including through the exercise of powers and functions under this Act or another law. RSA has the same meaning as in the Retirement Savings Accounts Act 1997. securities exchange means: (a) ASX Limited; or (b) a licensed market (within the meaning of the Corporations Act 2001) whose licence covers dealing in derivatives; or (c) any other body (whether in or outside Australia) approved by the Minister as a securities exchange for the purposes of this Act. senior manager of a general insurer or a corporate agent means a person who has or exercises any of the senior management responsibilities (within the meaning of the prudential standards) for the insurer or agent. share means a share in the capital of a body corporate, and includes stock. statutory accounts, in relation to a body corporate, means the reporting documents that the body corporate is required under section 13 of the Financial Sector (Collection of Data) Act 2001 to lodge with APRA. subsidiary has the meaning given by section 4. transferred liabilities determination means a determination under subsection 62ZZMA(1). wind up, in relation to a company, means wind up the company in accordance with the Corporations Act 2001. yearly statutory accounts, in relation to a body corporate, means the reporting documents that the body corporate is required under section 13 of the Financial Sector (Collection of Data) Act 2001 to lodge with APRA in respect of a financial year. (1A) APRA may, in writing, authorise an APRA member or an APRA staff member to perform the functions of an authorised person under this Act. (2) The Minister may, by legislative instrument, give approvals for the purposes of paragraph (c) of the definition of securities exchange in subsection (1). (4) A reference in this Act to a general insurer having no liabilities in respect of insurance business carried on by it in Australia includes a reference to a general insurer who has assigned, other than by an equitable assignment, all of its interests (including rights and benefits) under all contracts of insurance in respect of insurance business carried on by it in Australia to another general insurer. (5) Without limiting the scope of what is incidental to insurance business for the purposes of the definition of insurance business in subsection (1), a business of a person is taken, for the purposes of that definition, to be a business incidental to insurance business to the extent that it involves one or more of the following kinds of acts: (a) inducing others to enter into contracts of insurance with the person as the insurer; (b) publishing or distributing a statement relating to the person's willingness to enter into a contract of insurance as an insurer; (c) procuring the publication or distribution of such a statement. (5A) Subsection (5) does not apply if the contracts of insurance referred to in that subsection are contracts of reinsurance. (6) Without limiting the circumstances in which a person is taken, for the purposes of this Act, to carry on insurance business in Australia, a person is taken to carry on insurance business in Australia if: (a) the person carries on a business outside Australia that, under this Act, would constitute insurance business if it were carried on in Australia; and (b) another person in Australia acts: (i) directly or indirectly on behalf of the first‑mentioned person; or (ii) as a broker of insurance provided by the first‑mentioned person, or directly or indirectly on behalf of such a broker; in relation to the business carried on outside Australia. (6A) Subsection (6) does not apply if the business referred to in paragraph (a) of that subsection is solely a business of reinsurance. (7) In considering for the purposes of this Act whether a person carries on insurance business in Australia, an act of a kind referred to in paragraph (5)(a), (b) or (c) done outside Australia is taken to occur in Australia to the extent that it has, or is likely to have, its effect in Australia. 3A Certain insurance contracts not taken to be insurance business (1) For the purposes of this Act, insurance business does not include undertaking liability under a contract of insurance, or a kind of contract of insurance: (a) specified in the regulations for the purposes of this subsection; or (b) in circumstances specified in the regulations for the purposes of this subsection. (2) Without limiting subsection (1), the regulations may specify a contract of insurance, a kind of contract of insurance, or circumstances, by reference to: (a) particular general insurance products (within the meaning of the Corporations Act 2001), or particular kinds of such products; or (b) particular persons, or particular kinds of persons, who are insured under a contract of insurance, or a kind of contract of insurance. (3) Without limiting subsection (1): (a) the regulations may specify a contract of insurance, a kind of contract of insurance, or circumstances, by reference to: (i) a decision of APRA or a person; or (ii) a certificate or other document issued by APRA or a person; and (b) if the regulations do so—the regulations may impose obligations on APRA or the person in relation to the decision, certificate or other document. 4 Meaning of subsidiary For the purposes of this Act (except Part V), the question whether a body corporate is a subsidiary of another body corporate is to be determined in the same way as that question is determined for the purposes of the Corporations Act 2001. 4A Meaning of relevant group of bodies corporate For the purposes of this Act: (a) a general insurer and its subsidiaries together constitute a relevant group of bodies corporate; and (b) an authorised NOHC and its subsidiaries together also constitute a relevant group of bodies corporate. 4B Determining whether bodies corporate are related to one another For the purposes of this Act (except Part V), the question whether a body corporate is related to another body corporate is to be determined in the same way as that question is determined for the purposes of the Corporations Act 2001. 5 Application of Act (1) This Act does not apply to State insurance whether or not extending beyond the limits of the State concerned. (2) This Act does not apply to or with respect to insurance business carried on by: (a) the Commonwealth (including the Territories); or (b) a body corporate prescribed by the regulations; or (c) a body corporate, being insurance business of a kind prescribed by the regulations. 6 Act extends to external Territories This Act extends to every external Territory. 7 Determination that certain provisions do not apply (1) APRA may, in writing, determine that any or all of the following provisions of this Act do not apply to a person while the determination is in force: (a) a provision of Part III (other than a provision of Division 3A of that Part); (b) section 35; (c) section 39; (d) section 41; (e) a provision of Division 3 or 4 of Part IV; (f) section 49Q; (g) section 117; (h) section 118; (i) section 120; (j) section 121. (2) The determination may: (a) be expressed to apply to a particular person or to a class of persons; and (b) specify the period during which the determination is in force; and (c) be made subject to specified conditions. (2A) If APRA makes a determination that applies to a particular person, APRA must also give the person written notice of the determination. (3) APRA may, in writing, vary or revoke a determination under this section. (4) The following instruments made under this section are not legislative instruments: (a) a determination that applies to a particular person; (b) an instrument varying or revoking a determination that applies to a particular person. (5) Otherwise, an instrument made under this section is a legislative instrument. (6) Part VI applies to the following decisions made under this section: (a) a refusal to determine that one or more provisions of this Act do not apply to a particular person; (b) a decision to impose conditions on, or specify a period in, a determination made under this section in relation to a particular person; (c) a decision to vary or revoke a determination made under this section in relation to a particular person. 7A Breach of condition of a determination (1) A person commits an offence if: (a) the person does an act or fails to do an act; and (b) doing the act or failing to do the act results in a breach of a condition to which a determination in force under subsection 7(1) is subject; and (c) the determination applies to the person. Penalty: 60 penalty units. (2) An offence against this section is an offence of strict liability. Note 1: For strict liability, see section 6.1 of the Criminal Code. Note 2: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility. Note 3: If a body corporate is convicted of an offence against this section, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty above. Part II—Administration 8 General administration of Act (1) Subject to subsections (2) and (3), APRA has the general administration of this Act. (2) ASIC has the general administration of section 114. (3) The Minister may give APRA or ASIC directions about the performance or exercise of its functions or powers under this Act. Part III—Authorisation to carry on insurance business Division 1—Need to be authorised 9 Persons other than bodies corporate and Lloyd's underwriters carrying on insurance business (1) A person commits an offence if: (a) the person carries on insurance business in Australia; and (b) the person is not a body corporate or a Lloyd's underwriter; and (c) there is no determination in force under subsection 7(1) that this subsection does not apply to the person (the effect of which is to allow the person to carry on insurance business without being authorised under the Act to do so). Penalty: 60 penalty units. (2) An offence against subsection (1) is an offence of strict liability. Note 1: For strict liability, see section 6.1 of the Criminal Code. Note 2: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility. 10 Bodies corporate and Lloyd's underwriters carrying on insurance business (1) A body corporate (other than a Lloyd's underwriter) commits an offence if: (a) the body corporate carries on insurance business in Australia; and (b) the body corporate is not a general insurer; and (c) there is no determination in force under subsection 7(1) that this subsection does not apply to the body corporate (the effect of which is to exempt the body corporate from being authorised under the Act to carry on insurance business). Penalty: 60 penalty units. (2) A Lloyd's underwriter commits an offence if: (a) the underwriter carries on any insurance business in Australia; and (b) the underwriter does so at any time after section 93 has ceased to have effect; and (c) there is no determination in force under subsection 7(1) that this subsection does not apply to the underwriter (the effect of which is to exempt the underwriter from being authorised under the Act to carry on insurance business). Penalty: 60 penalty units. (3) An offence against this section is an offence of strict liability. Note 1: For strict liability, see section 6.1 of the Criminal Code. Note 2: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility. Note 3: If a body corporate is convicted of an offence against this section, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty above. 11 Meaning of general insurer A general insurer is a body corporate that is authorised under section 12 to carry on insurance business in Australia. Note: General insurer includes a foreign general insurer (see the definition of foreign general insurer in subsection 3(1)). 11A Injunctions Restraining injunctions (1) If a person has engaged, is engaging or is proposing to engage, in conduct that constituted, constitutes or would constitute: (a) a contravention of section 9 or 10; or (b) attempting to contravene section 9 or 10; or (c) aiding, abetting, counselling or procuring a person to contravene section 9 or 10; or (d) inducing or attempting to induce, whether by threats, promises or otherwise, a person to contravene section 9 or 10; or (e) being in any way, directly or indirectly, knowingly concerned in, or party to, the contravention by a person of section 9 or 10; or (f) conspiring with others to contravene section 9 or 10; the Federal Court may, on the application of APRA or a person whose interests have been, are or would be affected by the conduct, grant an injunction in accordance with subsection (2). (2) The injunction: (a) may restrain the person from engaging in the conduct; and (b) may also require that person to do a particular act or thing, if the Court thinks it desirable to do so. The Court may grant the injunction on such terms as it thinks appropriate. (3) The power of the Court to grant an injunction restraining a person from engaging in conduct may be exercised: (a) whether or not it appears to the Court that the person intends to engage again, or to continue to engage, in conduct of that kind; and (b) whether or not the person has previously engaged in conduct of that kind; and (c) whether or not there is an imminent danger of substantial damage to any other person if the person engages in conduct of that kind. Interim injunctions (4) The Court may grant an interim injunction pending determination of an application under subsection (1) if in the Court's opinion it is desirable to do so. Consent injunctions (5) If an application for an injunction under subsection (1) has been made, the Court may, if the Court thinks it appropriate, grant an injunction by consent of all the parties to the proceedings, whether or not the Court is satisfied that the subsection applies. Variation or discharge of injunctions (6) The Court may discharge or vary an injunction granted under subsection (1) or (5). Damages undertakings (7) APRA cannot be required, as a condition of granting an interim injunction, to give an undertaking as to damages. Damages orders (8) If the Court has power under this section to grant an injunction restraining a person from engaging in particular conduct, or requiring a person to do a particular act or thing, the Court may, either in addition to or in substitution for the grant of the injunction, order that person to pay damages to any other person. Federal Court's other powers unaffected (9) The powers conferred on the Court by this section are in addition to any other of its powers, and do not derogate from its other powers. Division 2—Authorisation to carry on insurance business 12 Obtaining an authorisation (1) A body corporate may apply in writing to APRA for an authorisation to carry on insurance business in Australia. Note: The body corporate may also need to consider the implications of the Foreign Acquisitions and Takeovers Act 1975, the Financial Sector (Shareholdings) Act 1998 and the Insurance Acquisitions and Takeovers Act 1991. (1A) APRA may require the body corporate to provide a statutory declaration in relation to information or documents provided in relation to the application. (1B) APRA may, by legislative instrument, set criteria for the authorisation of a body corporate to carry on insurance business in Australia. (2) APRA may authorise an applicant to carry on insurance business in Australia. The authorisation must be in writing. (3) Without limiting the circumstances in which APRA may refuse an application, APRA may refuse an application if the applicant is a subsidiary of another body corporate that is not an authorised NOHC. (3A) Without limiting the circumstances in which APRA may refuse an application, APRA must refuse an application if: (a) an arrangement under which medical indemnity cover is provided for a health care professional was entered into before 1 July 2003; and (b) the arrangement was not effected by means of a contract of insurance; and (c) the applicant may pay, or may have to pay, an amount under the arrangement at some time after the time when the application is made. Expressions used in paragraph (a) have the same meaning as they have in the Medical Indemnity (Prudential Supervision and Product Standards) Act 2003. Note 1: This means that an applicant that is an MDO (medical defence organisation) that entered into discretionary medical indemnity arrangements before 1 July 2003 cannot be granted an authorisation under this section while amounts remain potentially payable by the applicant under those arrangements. Note 2: All medical indemnity arrangements (arrangements under which medical indemnity cover is provided for health care professionals) that are entered into, come into effect or are renewed on or after 1 July 2003 must be by way of contracts of insurance (see section 10 of the Medical Indemnity (Prudential Supervision and Product Standards) Act 2003). (4) If APRA authorises an applicant, APRA must: (a) give written notice to the applicant; and (b) ensure that notice of the authorisation is published in the Gazette. (5) The taking of an action is not invalid merely because of a failure to comply with subsection (4). (6) Part VI applies to a refusal of APRA to authorise an applicant under this section. 13 Conditions on an authorisation (1) APRA may, at any time, by giving written notice to a general insurer: (a) impose conditions, or additional conditions, on the insurer's authorisation under section 12; or (b) vary or revoke conditions imposed on the insurer's authorisation under section 12. The conditions must relate to prudential matters. (2) A condition may be expressed to have effect despite anything in the prudential standards. (3) Without limiting the conditions that APRA may impose on an authorisation, APRA may make the authorisation conditional on a body corporate, of which the general insurer is a subsidiary, being an authorised NOHC. (4) If APRA imposes, varies or revokes the conditions on a general insurer's authorisation, APRA must: (a) give written notice to the insurer; and (b) ensure that notice that the action has been taken is published in the Gazette. (5) The taking of an action is not invalid merely because of a failure to comply with subsection (4). (6) Part VI applies to the following decisions made under this section: (a) a decision to impose conditions, or additional conditions, on an insurer's authorisation under section 12; (b) a decision to vary conditions imposed on an insurer's authorisation under section 12. 14 Breach of authorisation conditions (1) 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; and (c) there is no determination in force under subsection 7(1) that this subsection does not apply to the insurer. Penalty: 300 penalty units. (1A) If an individual: (a) commits an offence against subsection (1) because of Part 2.4 of the Criminal Code; or (b) commits an offence under Part 2.4 of the Criminal Code in relation to an offence against subsection (1); he or she is punishable, on conviction, by a fine not exceeding 60 penalty units. (2) An offence against this section is an offence of strict liability. Note 1: For strict liability, see section 6.1 of the Criminal Code. Note 2: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility. Division 3—Revocation of an authorisation 15 Revocation of authorisation etc. (1) APRA may revoke (in writing) a general insurer's authorisation under section 12 if APRA is satisfied that the insurer has no liabilities in respect of insurance business carried on by it in Australia and that: (a) the insurer has failed to comply with: (i) a requirement of this Act (including the requirement to comply with the prudential standards) or of an instrument made for the purposes of this Act; or (ii) a requirement of the Financial Sector (Collection of Data) Act 2001; or (iiaa) a requirement of the Financial Accountability Regime Act 2023; or (iia) a requirement of a provision of another law of the Commonwealth, if the provision is specified in the regulations; or (iii) a direction under this Act to the insurer; or (iv) a condition of the insurer's authorisation; or (b) it would be contrary to the national interest for the authorisation to remain in force; or (c) the insurer has failed to pay: (i) an amount of levy or late penalty to which the Financial Institutions Supervisory Levies Collection Act 1998 applies; or (ii) an amount of charge fixed under section 51 of the Australian Prudential Regulation Authority Act 1998; or (d) the insurer is insolvent and is unlikely to return to solvency within a reasonable period of time; or (e) the insurer has inadequate capital and is unlikely to have adequate capital within a reasonable period of time; or (f) the insurer has ceased to carry on insurance business in Australia; or (fa) both of the following apply: (i) the insurer is a foreign corporation within the meaning of paragraph 51(xx) of the Constitution; (ii) an authorisation (however described) for the insurer to carry on insurance business in a foreign country has been revoked or otherwise withdrawn in that foreign country; or (g) the insurer has not, within the period of 12 months after it was granted an authorisation under this Part, carried on insurance business in Australia. (3) Before revoking a general insurer's authorisation, APRA must give written notice to the insurer advising it that: (a) APRA is considering revoking the authorisation for the reasons specified; and (b) the insurer may make submissions about the revocation to APRA, in accordance with the notice, by a specified date (which must be at least 90 days after the notice is given). (3A) To avoid doubt, APRA may give a notice under subsection (3) to a general insurer even if, at the time the notice is given, APRA is not satisfied that the insurer has no liabilities in respect of insurance business carried on by it in Australia. (3B) If APRA gives a notice under subsection (3) to a general insurer, APRA must not revoke the insurer's authorisation until after the date specified in the notice, and after consideration of any submission, as mentioned in paragraph (3)(b). (4) APRA may decide that subsection (3) does not apply if APRA is satisfied that complying with that subsection could result in a delay in revocation that would be contrary to the national interest. (5) If APRA revokes a general insurer's authorisation, APRA must: (a) give written notice to the insurer; and (b) ensure that notice of the revocation is published in the Gazette. (6) A revocation is not invalid merely because of a failure to comply with subsection (5). (7) Part VI applies to a decision to revoke a general insurer's authorisation under section 12. 16 When APRA must revoke a general insurer's authorisation (1) APRA must revoke (in writing) a general insurer's authorisation under section 12 if: (a) the insurer asks (in writing) APRA to do so; and (b) APRA is satisfied that: (i) the insurer has no liabilities in respect of insurance business carried on by it in Australia; and (ii) revoking the authorisation would not be contrary to the national interest. (2) If APRA revokes a general insurer's authorisation, APRA must: (a) give written notice to the insurer; and (b) ensure that notice of the revocation is published in the Gazette. (3) A revocation is not invalid merely because of a failure to comply with subsection (2). 16A Continuation of effect of general insurer's authorisation If APRA gives a notice of revocation of a general insurer's authorisation under subsection 15(5) or 16(2), the notice may state that the authorisation continues in effect in relation to a specified matter or specified period, as though the revocation had not happened, for the purposes of: (a) a specified provision of this Act or the regulations; or (b) a specified provision of another law of the Commonwealth that is administered by APRA; or (c) a specified provision of the prudential standards; and the statement has effect accordingly. 17 Assignment of liabilities to enable revocation (1) If APRA considers that it would, under section 15, revoke a general insurer's authorisation if the insurer had no liabilities in respect of insurance business carried on by it in Australia, APRA may direct the insurer to arrange, subject to APRA's approval, to assign those liabilities to one or more other general insurers. The insurer must effect the assignment of the liabilities within the period specified in the direction and comply with such conditions relating to the assignment as are specified by APRA in the direction. (2) Subsection (1) has effect despite subsection 17B(1). Note: A general insurer who has asked APRA for a revocation under section 16 may, for the purpose of obtaining the revocation, make an application to the Federal Court under Division 3A for an order transferring the insurer's insurance business to another general insurer. (3) A general insurer must not ass