INSURANCE (DEPOSITS) ACT 1932
- Updated as at 24 March 1994 (HISTACT CHAP 2876 #DATE 24:03:1994)
*1* The Insurance (Deposits) Act 1932 as shown in this reprint comprises Act
No. 4, 1932 amended as indicated in the Tables below.
Table of Acts
Act Date of Date of Application,
Number Assent commencement saving or
and year transitional
provisions
Insurance Act 1932
4, 1932 12 Mar 1932 23 Mar 1932 (see Gazette
1932, p. 387)
Insurance Act (No. 2) 1932
29, 1932 30 May 1932 23 Mar 1932 -
Judiciary Act 1937
5, 1937 3 July 1937 3 July 1937 -
Insurance Act 1960
76, 1960 9 Dec 1960 18 May 1961 (see Gazette S. 13
1961, p. 2003)
Insurance Act 1963
17, 1963 28 May 1963 28 May 1963 S. 6
Insurance Act 1965
144, 1965 18 Dec 1965 15 Jan 1966 -
Statute Law Revision (Decimal Currency) Act 1966
93, 1966 29 Oct 1966 1 Dec 1966 -
Insurance (Deposits) Act 1973
77, 1973 19 June 1973 Ss. 1, 2 and 5 -
: Royal Assent
Remainder: 1 Aug 1974
(see Gazette 1974, No. 62)
as amended by
Statute Law Revision Act 1973
216, 1973 19 Dec 1973 31 Dec 1973 -
Statute Law Revision Act 1973
216, 1973 19 Dec 1973 31 Dec 1973 -
Insurance (Deposits) Amendment Act 1976
2, 1977 28 Feb 1977 28 Feb 1977 -
Jurisdiction of Courts (Miscellaneous Amendments) Act 1979
19, 1979 28 Mar 1979 Parts II-XVII (ss. 3-123) S. 124
: 15 May 1979 (1)
(see Gazette 1979, No. S86)
Remainder: Royal Assent
Industrial Relations (Consequential Provisions) Act 1988
87, 1988 8 Nov 1988 Ss. 1 and 2: Royal Assent -
Remainder: 1 Mar 1989
(see s. 2 (2) and
Gazette 1979, No. S53)
Table of Amendments
ad=added or inserted am=amended rep=repealed rs=repealed and substituted
Provision affected How affected
Short title am. No. 77, 1973 (as am. by No. 216, 1973)
S. 3 am. No. 29, 1932; No. 76, 1960; No. 17, 1963; Nos.
77 and 216, 1973; No. 19, 1979; No. 87, 1988
S. 4 am. No. 216, 1973
S. 5 am. No. 77, 1973; No. 2, 1977
S. 5A ad. No. 76, 1960
S. 7 am. Nos. 77 and 216, 1973
S. 8 am. No. 77, 1973
rep. No. 216, 1973
S. 9 am. No. 76, 1960; No. 93, 1966; No. 77, 1973; No.
2, 1977
S. 10 rep. No. 76, 1960
S. 11 am. No. 29, 1932
rs. No. 76, 1960
am. No. 93, 1966; No. 77, 1973
S. 12 rs. No. 76, 1960
am. No. 93, 1966
S. 13 rs. No. 76, 1960
am. No. 93, 1966; No. 77, 1973
S. 13A ad. No. 76, 1960
rs. No. 144, 1965
am. Nos. 77 and 216, 1973
S. 13B ad. No. 76, 1960
am. No. 93, 1966; No. 77, 1973
S. 13C ad. No. 76, 1960
am. No. 93, 1966
S. 14 rs. No. 76, 1960
am. No. 93, 1966; No. 77, 1973
S. 14A ad. No. 76, 1960
am. No. 93, 1966
S. 15 rs. No. 76, 1960
am. No. 77, 1973
S. 16 am. No. 29, 1932
rs. No. 76, 1960
am. No. 93, 1966; Nos. 77 and 216, 1973
S. 17 rs. No. 19, 1979
S. 18 am. No. 76, 1960; No. 19, 1979
S. 20 am. No. 76, 1960; No. 93, 1966; No. 19, 1979
S. 20A ad. No. 76, 1960
S. 20B ad. No. 76, 1960
am. No. 77, 1973
S. 21 rs. No. 17, 1963
S. 22 am. No. 76, 1960; No. 17, 1963; No. 77, 1973
S. 24 rep. No. 19, 1979
S. 25 am. No. 5, 1937
rep. No. 19, 1979
S. 26 am. No. 76, 1960; No. 77, 1973; No. 2, 1977
S. 26A ad. No. 76, 1960
S. 26B ad. No. 76, 1960
am. No. 77, 1973
INSURANCE (DEPOSITS) ACT 1932 - TABLE OF PROVISIONS
TABLE
TABLE OF PROVISIONS
Section
1. Short title
2. Commencement
3. Interpretation
4. Application to Territories
5. Act not to apply to person to whom Insurance Act 1973 does
not apply
5A. Delegation
6. Insurance business done on behalf of associations outside
Commonwealth
7. Deposits under State Acts
9. Termination of requirement to lodge deposits
11. Deposits by persons carrying on insurance business at
commencement of Act
12. Deposits by foreign companies commencing to carry on
insurance business after commencement of Act
13. Deposits by certain persons (other than foreign companies)
commencing to carry on insurance business after commencement
of Act
13A. Deposits by certain persons who contravened Insurance Act
1932-1937
13B. Deposits in other cases
13C. Additional deposits
14. Deposits by companies beneficially owning shares of other
companies
14A. Notice of lease or acquisition of land deposited as security
15. Exemption from deposit requirement limited to Territories to
which Insurance Act 1973 does not extend
16. Information and returns
17. Question to be decided by Treasurer
18. Interest on deposits etc.
19. Certificate of deposits
20. Increase of deposit where securities have depreciated
20A. Decrease of deposit in certain cases
20B. Revocation of approval
21. Deposits to be security to policy owners
22. Deposits available to satisfy judgments and meet liabilities
23. Responsibility for lost securities
26. Return of deposit on termination of requirement to lodge
deposits
26A. Expenses
26B. Notices, returns etc.
27. Regulations
INSURANCE (DEPOSITS) ACT 1932 - LONG TITLE
SECT
An Act relating to Insurance
INSURANCE (DEPOSITS) ACT 1932 - SECT 1
Short title
SECT
1. This Act may be cited as the Insurance (Deposits) Act 1932.*1*
SEE NOTES TO FIRST ARTICLE OF THIS CHAPTER .
INSURANCE (DEPOSITS) ACT 1932 - SECT 2
Commencement
SECT
2. This Act shall commence on a date to be fixed by Proclamation.*1*
SEE NOTES TO FIRST ARTICLE OF THIS CHAPTER .
INSURANCE (DEPOSITS) ACT 1932 - SECT 3
Interpretation
SECT
3. (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 any class of personal
accidents, disease or sickness;
"Actuary" means a Fellow of The Institute of Actuaries incorporated by Royal
Charter on 29th July, 1894, or a Fellow of the Faculty of Actuaries in
Scotland, and, when an Institute of Actuaries is established in Australia and
has been approved by the Governor-General, includes a Fellow of that
Institute;
"Approved securities" means:
(a) Government securities of the Commonwealth or of any State or of the
United Kingdom or of any other part of the Queen's dominions;
(b) Municipal securities which have been approved by the Treasurer;
(c) Debentures of any corporation (whether public or private) formed or
constituted in the Commonwealth, which has been approved by the Treasurer;
(d) Fixed deposits in any bank, carrying on business in the Commonwealth,
which has been approved by the Treasurer;
(e) Bank guarantees or undertakings which are in the prescribed form and
which have been approved by the Treasurer;
(f) Instruments of title to unencumbered freehold lands in the Commonwealth
approved by the Treasurer;
(g) First mortgages of freehold lands in the Commonwealth approved by the
Treasurer in which the sum secured does not exceed two-thirds, or such other
proportion as the Treasurer determines, of the improved value of the lands;
and
(h) Any other securities approved by the Treasurer;
"Foreign company" means a company which is incorporated, or the head office
of which is, outside the Commonwealth;
"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;
(b) accident insurance business undertaken solely in connexion with life
insurance business;
(c) pecuniary loss insurance business carried on solely in the course of
carrying on banking business and for the purposes of that business by a bank
within the meaning of the Banking Act 1959-1967;
(d) business in relation to the benefits provided by a friendly society or
trade union for its members or their dependants;
(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 an organisation within the meaning of the Industrial Relations Act
1988;
(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 his employees or by both, wholly through an organization
established solely for that purpose by the employer or his employees or by
both;
(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;
(h) business undertaken by a person, being a carrier, carrier's agent,
forwarding agent, wharfinger, warehouseman or shipping agent, relating only to
his liability in respect of goods belonging to another person and in his
possession or under his control for the purpose of the carriage, storage or
sale of those goods;
(j) business undertaken by a person, being an innkeeper or lodging-house
keeper, relating only to his 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;
(k) the business of insuring the property of a religious organization where
the person carrying on the business does not carry on any other insurance
business; or
(l) business as a registered medical benefits organization or a registered
hospital benefits organization carried on by an organization that is a
registered organization within the meaning of Part VI of the National Health
Act 1953-1973;
"Owner", in relation to any policy, means the person who for the time being
is the legal holder of the policy, and, where the legal holder of the policy
is liable to pay workers' compensation to, or to the dependants of, a person
and is entitled to be indemnified by the policy against that liability,
includes that last-mentioned person or any of those dependants;
"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;
"Policy" means a policy of insurance issued in the course of any insurance
business;
"Premium income" means income derived from premiums after deducting
reinsurances, returned premiums and cancellations;
"The Commonwealth" includes all the Territories.
(2) For the purpose of paragraph (f) of the definition of "Approved
securities" in the last preceding subsection, freehold land shall be deemed
not to be encumbered by reason only that:
(a) any rates or land tax payable in respect of the land or a part of the
land has not been paid; or
(b) the land or a part of the land is subject to a lease or easement.
(2A) A reference in this Act to a liability under a policy shall be read as
not including a reference to a liability to refund the whole or a part of a
premium or to any other liability arising otherwise than by way of insurance.
(3) The express references in this Act to companies do not imply that
references to persons do not include references to companies.
(4) A reference in this Act to money deposited by a person with the
Treasurer for the purposes of this Act shall, unless the contrary intention
appears, be read as including a reference to any securities in which that
money has been invested by the Treasurer under subsection (1) of section 18.
(5) For the purposes of this Act, a person who has at any time carried on
insurance business in the Commonwealth shall be deemed to be so carrying on
insurance business until the liabilities (including contingent liabilities) of
that person to policy owners in the Commonwealth have been met to the extent
required by law.
INSURANCE (DEPOSITS) ACT 1932 - SECT 4
Application to Territories
SECT
4. This Act shall extend to the Territories.
INSURANCE (DEPOSITS) ACT 1932 - SECT 5
Act not to apply to person to whom Insurance Act 1973 does not apply
SECT
5. (1) This Act shall not be deemed to apply to State insurance within the
limits of the State concerned.
(2) The provisions of this Act, other than this section, subsection (5) of
section 26 and section 26A, do not apply to:
(a) a person where, by reason of section 5 of the Insurance Act 1973, that
Act does not apply to or with respect to insurance business carried on by that
person; or
(b) a body corporate in respect of which an exemption under section 37 of
that Act is in force.
INSURANCE (DEPOSITS) ACT 1932 - SECT 5A
Delegation
SECT
5A. (1) The Treasurer may, either generally or in relation to a matter or
class of matters, by writing under his hand, delegate all or any of his powers
and functions under this Act or the regulations (except this power of
delegation).
(2) A power or function so delegated may be exercised or performed by the
delegate in accordance with the instrument of delegation.
(3) A delegation under this section is revocable at will and does not
prevent the exercise of a power or the performance of a function by the
Treasurer.
INSURANCE (DEPOSITS) ACT 1932 - SECT 6
Insurance business done on behalf of associations outside Commonwealth
SECT
6. (1) Any person granting cover or receiving premiums, proposals or
requests in respect of insurance business on behalf of or for transmission to
any company, person or association of persons outside the Commonwealth (in
this section referred to as the insurers) shall be deemed for the purposes of
this Act to be carrying on in the Commonwealth the insurance business to which
the cover, premiums, proposals or requests relate, and the firstmentioned
person shall, subject to this section, make deposits in accordance with this
Act.
(2) If several persons act in association in the Commonwealth in respect of
the granting of cover, or in the doing of any of the acts specified in the
last preceding subsection through a person outside the Commonwealth on account
of one insurer or on account of a group of insurers (no member of which is a
company or is acting on behalf of a company), the business carried on in the
Commonwealth by the persons so acting shall, for the purposes of this Act, if
the Treasurer so directs, be regarded as business carried on by one person,
and the amount of any deposit required to be made under this Act shall be
calculated accordingly.
INSURANCE (DEPOSITS) ACT 1932 - SECT 7
Deposits under State Acts
SECT
7. (1) No State Act, whether passed before or after the commencement of this
Act, to the extent to which it requires a person carrying on or proposing to
carry on insurance business to make any deposit or to make any payment by way
of licence fee or to make, as a condition upon which that person may carry on
insurance business, any other payment, shall, subject to this Act, have any
force or effect:
Provided that this subsection shall not affect the operation of any State Act,
in force on 1st February, 1932, in so far as the State Act imposes stamp duty
upon licences issued to persons engaged in insurance business.
INSURANCE (DEPOSITS) ACT 1932 - SECT 9
Termination of requirement to lodge deposits
SECT
9. (1) Subject to subsections (2) and (2A), a person shall not carry on
insurance business in the Commonwealth unless he has lodged a deposit with the
Treasurer as required by this Act.
Penalty: Four thousand dollars, and, in addition, One thousand dollars per day
for each day on which business is unlawfully carried on.
(2) Subsection (1) does not apply to a person commencing to carry on
insurance business in Australia after the expiration of the period of two
years after the date of commencement of section 21 of the Insurance Act 1973
or, where a longer period, not exceeding five years after that date, is
prescribed for the purposes of this section before the expiration of the
first-mentioned period, after the expiration of that longer period.
(2A) Subsection (1) does not apply to a person authorized under the
Insurance Act 1973 to carry on insurance business.
(3) In subsection (2), "Australia" includes a Territory to which the
Insurance Act 1973 extends.
INSURANCE (DEPOSITS) ACT 1932 - SECT 11
Deposits by persons carrying on insurance business at commencement of
Act
SECT
11. (1) Subject to the next succeeding subsection, a person (other than a
person to whom section 13A applies) carrying on insurance business in the
Commonwealth at the commencement of this Act shall, from time to time as
prescribed, maintain on deposit with the Treasurer approved securities to the
value of Two thousand dollars in respect of each Ten thousand dollars of his
annual premium income.
(2) The deposit required to be maintained by a person under the last
preceding subsection shall not, in any case, be less than Two thousand dollars
or more than:
(a) in the case of a person other than a foreign company - One hundred and
sixty thousand dollars; or
(b) in the case of a foreign company - Two hundred thousand dollars.
INSURANCE (DEPOSITS) ACT 1932 - SECT 12
Deposits by foreign companies commencing to carry on insurance business
after commencement of Act
SECT
12. A foreign company not carrying on insurance business in the Commonwealth
at the commencement of this Act shall, before commencing to carry on insurance
business in the Commonwealth, deposit with the Treasurer approved securities
to the value of Two hundred thousand dollars and shall, while carrying on
insurance business in the Commonwealth, maintain on deposit with the Treasurer
approved securities to that value.
INSURANCE (DEPOSITS) ACT 1932 - SECT 13
Deposits by certain persons (other than foreign companies) commencing to
carry on insurance business after commencement of Act
SECT
13. (1) A person (other than a company to which the last preceding section
applies or a person to whom section 13A or 13B applies) not carrying on
insurance business in the Commonwealth at the commencement of this Act shall,
before commencing to carry on insurance business in the Commonwealth, deposit
with the Treasurer approved securities to the value of Ten thousand dollars
and shall, while carrying on insurance business in the Commonwealth, maintain
on deposit with the Treasurer approved securities to that value.
(2) Subject to the next succeeding subsection, a person who has made a
deposit in accordance with the last preceding subsection, in respect of
insurance business carried on by him, shall, after making the deposit, from
time to time as prescribed, deposit and maintain on deposit with the Treasurer
approved securities to the value of Two thousand dollars for every Ten
thousand dollars by which his annual premium income exceeds Fifty thousand
dollars.
(3) The last preceding subsection does not require a person to deposit or
maintain on deposit with the Treasurer approved securities to a value
exceeding One hundred and sixty thousand dollars.
INSURANCE (DEPOSITS) ACT 1932 - SECT 13A
Deposits by certain persons who contravened Insurance Act 1932-1937
SECT
13A. A person (other than a company to which section 12 applies) who was
carrying on insurance business in the Commonwealth immediately before the
commencement of the Insurance Act 1960 in contravention of section 9 of the
Insurance Act 1932-1937 shall maintain on deposit with the Treasurer approved
securities to the value of Twenty thousand dollars.
INSURANCE (DEPOSITS) ACT 1932 - SECT 13B
Deposits in other cases
SECT
13B. A person (other than a company to which section 12 applies) not
carrying on insurance business in the Commonwealth at the commencement of the
Insurance Act 1960 shall, before commencing to carry on insurance business in
the Commonwealth, deposit with the Treasurer approved securities to the value
of Twenty thousand dollars and shall, while carrying on insurance business in
the Commonwealth, maintain on deposit with the Treasurer approved securities
to that value.
INSURANCE (DEPOSITS) ACT 1932 - SECT 13C
Additional deposits
SECT
13C. (1) Subject to the next succeeding subsection, a person who makes a
deposit in pursuance of either of the last two preceding sections, in respect
of insurance business carried on by him, shall, after making the deposit, from
time to time as prescribed, deposit and maintain on deposit with the Treasurer
approved securities to the value of Two thousand dollars for every Ten
thousand dollars by which his annual premium income exceeds Fifty thousand
dollars.
(2) The last preceding subsection does not require a person to deposit or
maintain on deposit with the Treasurer approved securities to a value
exceeding One hundred and sixty thousand dollars.
INSURANCE (DEPOSITS) ACT 1932 - SECT 14
Deposits by companies beneficially owning shares of other companies
SECT
14. (1) Where the Treasurer is satisfied that a company (in this section
referred to as "the parent company") has become the beneficial owner of the
shares of another company (in this section referred to as "the subsidiary
company"), a deposit made and maintained by the parent company of a value
equal to the value of the deposit that would be required by this Act to be
made and maintained by the parent company if it carried on the business of the
subsidiary company in addition to its own business is, if the Treasurer, by
writing under his hand, so certifies, a sufficient compliance by the
subsidiary company with the requirements of this Act, and, where the parent
company makes and maintains such a deposit, a deposit is not required to be
made and maintained by the subsidiary company.
(2) Where the parent company has made and maintains a deposit that, by
virtue of the last preceding subsection, is a sufficient compliance by the
subsidiary company with the requirements of this Act:
(a) the Treasurer shall return to the subsidiary company any money or
approved securities previously deposited by that company in accordance with
this Act;
(b) the insurance business carried on in the Commonwealth by the subsidiary
company shall, for the purposes of subsection (4) of section 16, be deemed to
be insurance business carried on by the parent company;
(c) if the subsidiary company carries on business outside the Commonwealth:
(i) subsections (3), (3A) and (4) of section 18 apply, in the event
of the winding-up of the subsidiary company, to the deposit made and
maintained by the parent company as if it had been made and maintained by the
subsidiary company; and
(ii) upon the transfer of the deposit or part of the deposit made
and maintained by the parent company to a liquidator in accordance with
subsection (3) of that section, the deposit shall be deemed to be reduced by
the amount so transferred;
(d) if a policy owner obtains a final judgment against the subsidiary
company in respect of a policy and that judgment is not satisfied within a
period of three months after the date of the judgment, or, in the event of an
appeal from the judgment or in special circumstances, within such further
period as the Treasurer allows:
(i) sections 21 and 22 apply to the deposit made by the parent
company as if it had been made by the subsidiary company; and
(ii) the parent company shall forthwith deposit, and maintain on
deposit, with the Treasurer approved securities to a value equal to the
difference between the value of the deposit previously made by the parent
company under this Act and the sum of the values of the deposits that, but for
this section, would have been required by this Act to have been made and
maintained by the parent company, the subsidiary company and any other
subsidiary company of the parent company that, by virtue of the last preceding
subsection, is not required to make and maintain a deposit under this Act;
and
(e) if a policy owner obtains a final judgment against the parent company in
respect of a policy and that judgment is not satisfied within a period of
three months after the date of the judgment, or, in the event of an appeal
from the judgment or in special circumstances, within such further period as
the Treasurer allows:
(i) the deposit made and maintained by the parent company ceases to
be a sufficient compliance by the subsidiary company with the requirements of
this Act; and
(ii) the subsidiary company shall forthwith deposit, and maintain on
deposit, with the Treasurer approved securities in accordance with this Act.
(3) Where the parent company ceases to be the beneficial owner of the shares
of the subsidiary company, the parent company shall forthwith notify the
Treasurer in writing of that fact.
Penalty: Four hundred dollars.
(4) Where the Treasurer is satisfied that the parent company has ceased to
be the beneficial owner of the shares of the subsidiary company:
(a) he shall notify the subsidiary company in writing that he is so
satisfied;
(b) the deposit by the parent company ceases to be a sufficient compliance
by the subsidiary company with the requirements of this Act;
(c) the subsidiary company shall, upon receipt of the notification,
forthwith deposit, and maintain on deposit, with the Treasurer approved
securities in accordance with this Act; and
(d) until the subsidiary company so makes a deposit, the deposit made and
maintained by the parent company shall, for the purposes of this Act, be
deemed to be a deposit made and maintained by the subsidiary company.
INSURANCE (DEPOSITS) ACT 1932 - SECT 14A
Notice of lease or acquisition of land deposited as security
SECT
14A. (1) Where:
(a) a person has deposited and is maintaining on deposit with the Treasurer
the instrument of title to freehold land for the purposes of this Act; and
(b) while the instrument is so deposited, that person grants a lease of the
land or of a part of the land for a term of not less than ten years;
he shall, within twenty-one days after the grant of the lease, give to the
Treasurer notice in writing of the grant of the lease.
(2) Where:
(a) a person has deposited and is maintaining on deposit with the Treasurer
the instrument of title to, or a first mortgage of, freehold land for the
purposes of this Act; and
(b) while the instrument or mortgage is so deposited, the land or a part of
the land, or an interest in the land or a part of the land, is compulsorily
acquired by or under a law of the Commonwealth, of a State or of a Territory
of the Commonwealth;
the person shall, within twenty-one days after receiving notice of the
acquisition, give to the Treasurer notice in writing of the acquisition.
Penalty: Four hundred dollars.
INSURANCE (DEPOSITS) ACT 1932 - SECT 15
Exemption from deposit requirement limited to Territories to which
Insurance Act 1973 does not extend
SECT
15. The Treasurer may exempt from the requirement to make a deposit under
this Act any body of persons that satisfies him that it carries on or proposes
to carry on insurance business in a Territory to which the Insurance Act 1973
does not extend wholly for the purpose of insuring its members or the
employees of its members or persons engaged in a particular trade, industry,
profession or occupation.
INSURANCE (DEPOSITS) ACT 1932 - SECT 16
Information and returns
SECT
16. (1) Subject to subsection (10), a person carrying on insurance business
in the Commonwealth shall, within 21 days after the person commences to carry
on business in Australia, furnish to the Treasurer in writing:
(a) in the case of a person being a company:
(i) a copy of the Act, charter, deed of settlement or memorandum of
association and articles of association of the company, or any other document
by which the company is constituted; and
(ii) the full name and address of the principal officer of the
company or, in the case of a foreign company, of the principal officer or
representative of the company in Australia; and
(b) in any case:
(i) an address in Australia for service of notices; and
(ii) the date on which the annual trading period of the person ends.
(3) A person carrying on insurance business in the Commonwealth shall,
within twenty-one days after the making of an alteration:
(a) in the case of a person being a company:
(i) in the Act, charter, deed of settlement or memorandum of
association and articles of association of the company, or any other document
by which the company is constituted; or
(ii) in the name and address of the principal officer of the company
or, in the case of a foreign company, of the principal officer or
representative of the company in Australia; or
(b) in any case:
(i) in the address in Australia for service of notices; or
(ii) in the date on which the annual trading period of the person
ends;
furnish to the Treasurer particulars in writing of the alteration.
(4) A person who has made a deposit with the Treasurer under this Act shall
furnish to the Treasurer, within the prescribed period, a return, signed by
the person, showing the premium income in respect of the insurance business
carried on by the person in the Commonwealth during the last preceding annual
trading period of the person.
(5) The last preceding subsection does not apply to a person who has
deposited and is maintaining on deposit with the Treasurer money or approved
securities:
(a) in the case of a foreign company - to a value of Two hundred thousand
dollars; or
(b) in any other case - to a value of One hundred and sixty thousand
dollars.
(6) Where a person is required to furnish a return under this section, the
Treasurer may, by notice in writing under his hand to the person, require the
person, at the expense of that person, to furnish with the return a
certificate as to the correctness of the return by a qualified public
accountant or an actuary, approved by the Treasurer, and where the Treasurer
so requires, the return shall be deemed not to have been furnished until the
certificate is furnished.
(7) A person carrying on insurance business in the Commonwealth shall
furnish to the Treasurer such other returns and information as are prescribed
at such times as are prescribed.
(8) A person carrying on insurance business in the Commonwealth shall not
refuse or fail to furnish to the Treasurer a return or other information
required by or under this section. Penalty: Four hundred dollars.
(9) A person shall not wilfully or knowingly furnish a return or other
information required by or under this section that is false in a material
particular.
Penalty for a contravention of this subsection: Imprisonment for two years.
(10) This section does not apply to a person authorized under the Insurance
Act 1973 to carry on insurance business.
INSURANCE (DEPOSITS) ACT 1932 - SECT 17
Question to be decided by Treasurer
SECT
17. (1) Where any question arises under this Act as to the net liability or
premium income of any person carrying on insurance business, as to the value
of securities deposited under this Act or otherwise as to the amount of a
deposit required by this Act, the question shall, for the purposes of this
Act, be decided by the Treasurer, whose decision is, subject to subsection
(2), binding and conclusive.
(2) Applications may be made to the Administrative Appeals Tribunal for
review of decisions of the Treasurer under subsection (1).
INSURANCE (DEPOSITS) ACT 1932 - SECT 18
Interest on deposits etc.
SECT
18. (1) Every sum of money deposited in accordance with the requirements of
the Insurance Act 1932, or that Act as amended before the commencement of the
Insurance Act 1960, shall be invested by the Treasurer in such of the
securities prescribed for the purposes of this section as the depositor
selects or, in default of such selection within fourteen days after the
deposit has been made, in such prescribed securities as the Treasurer
determines.
(2) All deposits made in accordance with the requirements of this Act shall
be deemed to form part of the assets of the depositor, and all interest
accruing due on the deposits or the securities in which they are for the time
being invested shall be paid to him.
(3) In the event of the winding-up of a company or the sequestration of the
estate of a person other than a company, being a company or person that
carries on business outside the Commonwealth and has made a deposit under this
Act, the Federal Court of Australia may, notwithstanding anything in this Act,
order the deposit or a part of the deposit to be transferred by the Treasurer
to a liquidator of the company, or trustee in bankruptcy of the person other
than a company, outside the Commonwealth on such terms and conditions, if any,
as the Court directs.
(3A) An application for an order under the last preceding subsection may be
made to the Court by or on behalf of the liquidator or trustee in bankruptcy
or by or on behalf of a person who satisfies the Court that he represents a
majority of the policy owners resident within the Commonwealth.
(4) In this section, the expression "winding-up" includes any method of
dissolution or proceedings analogous to the winding-up of a company, and the
expression "liquidator" includes any person occupying the position of a
liquidator.
INSURANCE (DEPOSITS) ACT 1932 - SECT 19
Certificate of deposits
SECT
19. Every person who makes any deposit with the Treasurer in pursuance of
this Act shall be entitled to obtain from the Secretary to the Treasury or
other proper officer a certificate in writing of the deposit made and a
receipt therefor.
INSURANCE (DEPOSITS) ACT 1932 - SECT 20
Increase of deposit where securities have depreciated
SECT
20. (1) Where the Treasurer is satisfied that, by reason of:
(a) depreciation in the value, or reduction in the amount, of:
(i) approved securities deposited by a person with the Treasurer; or
(ii) securities in which money deposited by a person with the
Treasurer has been invested by the Treasurer; or
(b) any other cause;
the value of the deposit falls short of the value required by this Act, he
may, by notice in writing under his hand to that person, require that person
to deposit with the Treasurer approved securities to a value deemed by the
Treasurer to be sufficient to increase the value of the deposit to the value
required by this Act.
(2) A notice under this section shall not be issued until after the
Treasurer has given an opportunity to the person to be heard in connexion with
the matter.
(4) Any person who fails to deposit with the Treasurer approved securities
as required by the Treasurer under this section shall be guilty of an
offence.
Penalty: One thousand dollars, and in addition Two hundred dollars for each
day during which the failure continues.
INSURANCE (DEPOSITS) ACT 1932 - SECT 20A
Decrease of deposit in certain cases
SECT
20A. (1) Where the Treasurer is satisfied that, by reason of:
(a) appreciation in the value of:
(i) approved securities deposited by a person with the Treasurer; or
(ii) securities in which money deposited by a person with the
Treasurer has been invested by the Treasurer;
(b) decrease in the annual premium income of a person; or
(c) any other cause;
the value of the deposit exceeds the value required by this Act, he shall,
subject to the next succeeding subsection, on request in writing by that
person, return to the person securities to a value deemed by the Treasurer to
be sufficient to reduce the value of the deposit to the value required by this
Act.
(2) The last preceding subsection does not require the Treasurer to return
securities to a person where:
(a) in the case of a person being a company - the company is being
wound-up;
(b) in the case of a person not being a company - the estate of the person
has become sequestrated; or
(c) in any case - the Treasurer is not satisfied that that person has made
adequate provision to meet his liabilities (including contingent liabilities)
to policy owners in the Commonwealth.
INSURANCE (DEPOSITS) ACT 1932 - SECT 20B
Revocation of approval
SECT
20B. (1) The Treasurer may revoke an approval given by him for the purposes
of the definition of "Approved securities" in subsection (1) of section 3.
(2) Where, by reason of the revocation of such an approval, a security
deposited by a person with the Treasurer for the purposes of this Act ceases
to be an approved security, the person shall, within one month after receiving
notice in writing under the hand of the Treasurer of the revocation,
substitute for that security an approved security of a value deemed by the
Treasurer to be sufficient to increase the value of the deposit to the value
required by this Act.
(3) Where:
(a) a person has deposited a bank guarantee or undertaking with the
Treasurer as an approved security for the purposes of this Act; and
(b) the bank that gave the guarantee or undertaking notifies the Treasurer
in accordance with the guarantee or undertaking that it proposes to revoke the
guarantee or undertaking;
the person who deposited the guarantee or undertaking shall, within one month
after receiving notice in writing under the hand of the Treasurer of the
proposed revocation, substitute for the guarantee or undertaking another
approved security of a value not less than the value of the guarantee or
undertaking.
INSURANCE (DEPOSITS) ACT 1932 - SECT 21
Deposits to be security to policy owners
SECT
21. All moneys and securities for the time being deposited by any person
with the Treasurer under this Act shall, subject to this Act, be and remain as
a security for the meeting of liabilities of the person under policies issued
by the person and shall not be liable for the meeting of any other liabilities
of the person until the first-mentioned liabilities have been met in full.
INSURANCE (DEPOSITS) ACT 1932 - SECT 22
Deposits available to satisfy judgments and meet liabilities
SECT
22. (1) The moneys and securities deposited with the Treasurer under this
Act shall be available to satisfy any final judgment obtained in the
Commonwealth by a policy owner against the insurer in respect of a liability
under any policy, and the Treasurer may satisfy any such judgment out of such
moneys or securities accordingly, and thereupon the deposit shall be deemed to
be reduced by the amount of the payment so made.
(2) In the event of the winding-up of a company or the sequestration of the
estate of a person other than a company, being a company or person that
carries on insurance business in the Commonwealth and has deposited money or
securities under this Act:
(a) the money or securities so deposited shall, subject to any order made
under subsection (3) of section 18, be held by the Treasurer to meet the
liabilities of the company or person under the policies issued by it or him in
the Commonwealth; and
(b) when the liabilities have been met to the extent having effect in, or
for the purposes of, the winding-up or sequestration, any surplus shall be
paid to the liquidator or trustee in bankruptcy, as the case may be.
(3) For the purpose of enabling the Treasurer to satisfy a judgment or meet
liabilities in accordance with this section out of a security deposited with
him or in which he has invested money deposited with him, the Treasurer may
sell or otherwise realize the security or a part of the security in such
manner, and on such terms and conditions, as he thinks fit.
INSURANCE (DEPOSITS) ACT 1932 - SECT 23
Responsibility for lost securities
SECT
23. If any money or securities deposited under this Act are, while so
deposited, lost, stolen, destroyed or damaged, the injury occasioned to all
persons interested therein shall be made good out of moneys to be appropriated
by the Parliament for the purpose.
INSURANCE (DEPOSITS) ACT 1932 - SECT 26
Return of deposit on termination of requirement to lodge deposits
SECT
26. (1) A person may at any time substitute for any security deposited under
this Act any equivalent approved security, and any security so substituted
shall be subject to the same charge or liability as the security withdrawn.
(2) Any person who makes any such substitution shall be entitled to obtain
from the Secretary to the Treasury or other proper officer a certificate in
writing of the transfer so made.
(3) Where a person has ceased to issue policies to persons in the
Commonwealth, the Treasurer may, in his discretion, permit the withdrawal of
the money or securities deposited by that person under this Act or such part
of that money or those securities as the Treasurer considers reasonable having
regard to the liabilities (including contingent liabilities) of the person to
policy owners in the Commonwealth.
(4) Where a person has ceased to carry on insurance business in the
Commonwealth, the Treasurer shall return to him the money or approved
securities deposited by him under this Act.
(5) Where:
(a) this Act does not, by reason of paragraph (a) of subsection (2) of
section 5, apply to or with respect to insurance business carried on by a
person who has deposited money or approved securities with the Treasurer under
section 9 of this Act;
(b) a body corporate that has deposited money or approved securities with
the Treasurer is granted an exemption under section 37 of the Insurance Act
1973; or
(c) a person who has deposited money or approved securities with the
Treasurer is, at the commencement of this paragraph, authorized, or becomes
authorized, under the Insurance Act 1973 to carry on insurance business;
the Treasurer shall return to the person or body corporate that money or those
approved securities.
(6) After the expiration of the period of two years after the date of
commencement of section 21 of the Insurance Act 1973 or, if a longer period
not exceeding five years after that date is prescribed for the purposes of
section 9 of this Act before the expiration of the first-mentioned period,
after the expiration of that longer period, the Treasurer shall return to a
person carrying on insurance business in Australia the money or approved
securities deposited by that person under this Act.
(7) In subsection (6), "Australia" includes a Territory to which the
Insurance Act 1973 extends.
(8) Subsection (6) does not apply to a body corporate that, before the
expiration of the period, or longer period, as the case may be, referred to in
that subsection, has commenced to be wound up or in respect of which a winding
up order has been made by a court.
INSURANCE (DEPOSITS) ACT 1932 - SECT 26A
Expenses
SECT
26A. A person who is or has been required to deposit money or an approved
security with the Treasurer by or under this Act is liable to pay or make good
any expenses incurred in connexion with:
(a) the deposit of the money or security;
(b) the substitution for the money or security of another approved security;
or
(c) the return or withdrawal of the money or security.
INSURANCE (DEPOSITS) ACT 1932 - SECT 26B
Notices, returns etc.
SECT
26B. (1) Where a notice is required by this Act to be given to or served
upon a person, the notice may be given or served:
(a) in the case of a person not being a company - by delivering it to him
personally or by sending it to him by post at the last address furnished by
him under section 16; or
(b) in the case of a company - by delivering it personally to an officer or
employee of the company or by sending it to the company by post at the last
address furnished by the company under section 16.
(2) Where a notice, return or other information is required by this Act to
be given or furnished by a person being a company, the notice, return or other
information shall be given or furnished by the principal officer of the
company or, if the company is a foreign company, by the principal officer or
representative of the company in Australia.
INSURANCE (DEPOSITS) ACT 1932 - SECT 27
Regulations
SECT
27. The Governor-General may make regulations, not inconsistent with this
Act, prescribing all matters which by this Act are required or permitted to be
prescribed, or which are necessary or convenient to be prescribed, for
carrying out or giving effect to this Act.