Commonwealth Consolidated Acts

LIFE INSURANCE ACT 1995 - SECT 245

  (1)   For the purposes of this Act, a person is a disqualified person if, at any time:

  (a)   the person has been convicted of an offence against this Act, the repealed Life Insurance Act 1945 or the Financial Accountability Regime Act 2023 ; or

  (b)   the person has been convicted of an offence against any other law of the Commonwealth or a law of a State, a Territory or a foreign country, being an offence in respect of:

  (i)   conduct relating to insurance; or

  (ii)   dishonest conduct; or

  (c)   the person has:

  (i)   become bankrupt; or

  (ii)   applied to take the benefit of a law for the relief of bankrupt or insolvent debtors; or

  (iii)   compounded with his or her creditors; or

  (d)   the Federal Court of Australia has disqualified the person under section   245A.

  (2)   A person commits an offence if:

  (a)   the person is a disqualified person; and

  (b)   the person is or acts as:

  (i)   a director of a company, or body corporate, registered under this Act; or

  (ii)   a principal executive officer of a company, or body corporate, registered under this Act; or

  (iii)   an appointed actuary of a company registered under section   21; or

  (iv)   an auditor of a company, or body corporate, registered under this Act; and

  (c)   for a person who is a disqualified person only because he or she was disqualified under section   245A--the person is disqualified from being or acting as that director, principal executive officer, actuary or auditor (as the case requires).

Penalty:   Imprisonment for 2 years.

  (3)   A person commits an offence if:

  (a)   the person is a disqualified person; and

  (b)   the person is or acts as:

  (i)   a director of a company, or body corporate, registered under this Act; or

  (ii)   a principal executive officer of a company, or body corporate, registered under this Act; or

  (iii)   an appointed actuary of a company registered under section   21; or

  (iv)   an auditor of a company, or body corporate, registered under this Act; and

  (c)   for a person who is a disqualified person only because he or she was disqualified under section   245A--the person is disqualified from being or acting as that director, principal executive officer, actuary or auditor (as the case requires).

Penalty:   60 penalty units.

  (4)   Subsection   (3) is an offence of strict liability.

Note:   For strict liability , see section   6.1 of the Criminal Code .

  (5)   A company or body corporate commits an offence if:

  (a)   the company or body corporate is registered under this Act; and

  (b)   a person is a disqualified person; and

  (c)   the person is or acts as:

  (i)   a director of the company or body corporate; or

  (ii)   a principal executive officer of the company or body corporate; or

  (iii)   an appointed actuary of the company; or

  (iv)   an auditor of the company or body corporate; and

  (d)   for a person who is a disqualified person only because he or she was disqualified under section   245A--the person is disqualified from being or acting as that director, principal executive officer, actuary or auditor (as the case requires); and

  (e)   in any case--the company or body corporate allows the person to be or act as a director, principal executive officer, actuary or auditor (as the case requires).

Penalty:   250 penalty units.

  (5A)   A company or body corporate commits an offence if:

  (a)   the company or body corporate is registered under this Act; and

  (b)   a person is a disqualified person; and

  (c)   the person is or acts as:

  (i)   a director of the company or body corporate; or

  (ii)   a principal executive officer of the company or body corporate; or

  (iii)   an appointed actuary of the company; or

  (iv)   an auditor of the company or body corporate; and

  (d)   for a person who is a disqualified person only because he or she was disqualified under section   245A--the person is disqualified from being or acting as that director, principal executive officer, actuary or auditor (as the case requires); and

  (e)   in any case--the company or body corporate allows the person to be or act as a director, principal executive officer, actuary or auditor (as the case requires).

Penalty:   60 penalty units.

  (5B)   Subsection   (5A) is an offence of strict liability.

Note:   For strict liability , see section   6.1 of the Criminal Code .

  (6)   A failure to comply with this section does not affect the validity of an appointment or transaction.

  (7)   A reference in subsection   (1) to a person who has been convicted of an offence includes a reference to a person in respect of whom an order has been made under section   19B of the Crimes Act 1914 , or under a corresponding provision of a law of a State, a Territory or a foreign country, in relation to the offence.

  (8)   In this section:

"director" , in relation to a life company that is an eligible foreign life insurance company, means a member of the Compliance Committee of the company.