INSURANCE (DEPOSITS) ACT 1932
- Updated as at 7 January 1997 (#DATE 07:01:1997)
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*
INSURANCE (DEPOSITS) ACT 1932
- SECT 2
Commencement
SECT
2. This Act shall commence on a date to be fixed by Proclamation.*1*
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
Workplace Relations Act 1996;
(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.
INSURANCE (DEPOSITS) ACT 1932
- NOTE 1
NOTE
*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 Date of Application
Number and of assent commencement saving or
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
1961, p. 2003)
S. 13
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):
15 May 1979 (see
Gazette 1979, No. S86)
Remainder: Royal Assent
S. 124 (1)
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)
-
Workplace Relations and Other Legislation Amendment Act 1996
60, 1996 25 Nov 1996 Schedule 19 (item 22):
Royal Assent (a)
-
(a) The Insurance (Deposits) Act 1932 was amended by Schedule 19
(item 22) only of the Workplace and Other Legislation Amendment Act
1996, subsection 2(1) of which provides as follows:
"(1) Subject to this section, this Act commences on the day on which
it receives the Royal Assent."
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; No. 60, 1996
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