Financial Sector Legislation Amendment (Prudential Refinements and Other Measures) Act 2010 (82 of 2010)

Schedule 4   Amendment of other Acts

Part 1   Amendments

Financial Sector (Business Transfer and Group Restructure) Act 1999

5   After subsection 25(1C)

Insert:

Transfer of unregulated business from life insurance company

(1D) APRA may make a written determination that there is to be a transfer of only the business that is not regulated business from a life insurance company to a body corporate that is not an insurance company or life insurance company if, and only if:

(a) APRA is satisfied that:

(i) the transferring body has contravened theLife Insurance Act 1995, any regulations or other instruments made under that Act or conditions imposed under that Act; or

(ii) APRA has given the transferring body a written notice under subsection 139(1) of theLife Insurance Act 1995 stating that APRA proposes to investigate life insurance business of the body; or

(iii) a judicial manager of the transferring body has recommended, under subsection 175(2) of theLife Insurance Act 1995, that the business or part of the business of the body be transferred to another company; or

(iv) APRA has made a determination under subsection (1C) for the transfer of some or all of the transferring body's regulated business to another life insurance company (whether or not the transfer has yet happened); and

(b) APRA has considered the interests of policy owners of the transferring body (when viewed as a group) and considers that, having regard to those interests, it would be appropriate for the transfer to be made; and

(c) the conditions in subsection (2) exist.

Transfer of business from general insurer

(1E) APRA may make a written determination that there is to be a transfer of business from one general insurer to another general insurer, other than a transfer only of business of the transferring body that is not regulated business, if, and only if:

(a) APRA is satisfied that:

(i) the transferring body has contravened theInsurance Act 1973, any regulations or other instruments made under that Act or conditions imposed under that Act; or

(ii) APRA has served on the transferring body a written notice under subsection 52(4) of theInsurance Act 1973 specifying matters into which an investigation under section 52 of that Act is to be made; or

(iii) a judicial manager of the transferring body has recommended, under section 62ZI of theInsurance Act 1973, that the body's business be transferred to another general insurer; and

(b) APRA has considered the interests of policy owners of the transferring body (when viewed as a group) and considers that, having regard to those interests, it would be appropriate for the transfer to be made; and

(c) APRA is satisfied that the transfer is appropriate, having regard to the interests of policy owners of the receiving body when viewed as a group; and

(d) the conditions in subsection (2) exist.

Transfer of unregulated business from general insurer

(1F) APRA may make a written determination that there is to be a transfer of only the business that is not regulated business from a general insurer to a body corporate that is not an insurance company or life insurance company if, and only if:

(a) APRA is satisfied that:

(i) the transferring body has contravened theInsurance Act 1973, any regulations or other instruments made under that Act or conditions imposed under that Act; or

(ii) APRA has served on the transferring body a written notice under subsection 52(4) of theInsurance Act 1973 specifying matters into which an investigation under section 52 of that Act is to be made; or

(iii) a judicial manager of the transferring body has recommended, under section 62ZI of theInsurance Act 1973, that the body's business be transferred to another general insurer; or

(iv) APRA has made a determination under subsection (1E) for the transfer of some or all of the transferring body's regulated business to another general insurer (whether or not the transfer has yet happened); and

(b) APRA has considered the interests of policy owners of the transferring body (when viewed as a group) and considers that, having regard to those interests, it would be appropriate for the transfer to be made; and

(c) the conditions in subsection (2) exist.