Commonwealth Consolidated Acts

PRIVATE HEALTH INSURANCE (PRUDENTIAL SUPERVISION) ACT 2015 - SECT 20

Application for conversion to for profit status

  (1)   A private health insurer may apply to APRA for approval to convert to being registered as a for profit insurer.

  (2)   The application:

  (a)   must be in the approved form and must contain, or be accompanied by, a conversion scheme as required by the approved form; and

  (b)   must be given to APRA at least 90 days before the day specified in the application as the day on which the insurer proposes that it become registered as a for profit insurer.

How APRA decides an application

  (3)   APRA must, in writing, approve the application if APRA is satisfied, within 30 days after the application was made, that:

  (a)   the application complies with subsection   (2); and

  (b)   the conversion scheme would not in substance involve the demutualisation of the insurer.

  (4)   If subsection   (3) does not apply:

  (a)   APRA must, at least 45 days before the day specified in the application, cause a notice of the application to be published in a manner that results in the notice being accessible to the public and reasonably prominent; and

  (b)   within 90 days after the application is made, APRA may, by written notice to the insurer, require the insurer to give APRA such further information relating to the application as is specified in the notice.

  (5)   If subsection   (3) does not apply, APRA must, in writing, approve the application if:

  (a)   APRA is satisfied that the application complies with subsection   (2); and

  (b)   the insurer has given APRA such further information (if any) as APRA has required under paragraph   (4)(b); and

  (c)   APRA is satisfied that the conversion scheme would not result in a financial benefit to any person who is not a policy holder of, or another person insured through, a health benefits fund conducted by the insurer; and

  (d)   APRA is satisfied that the conversion scheme would not result in financial benefits from the scheme being distributed inequitably between such policy holders and insured persons.

  (6)   APRA rules may set out criteria for deciding, for the purposes of subsection   (3), whether a conversion scheme would not in substance involve the demutualisation of the insurer.

  (7)   An approval under this section is not a legislative instrument.

Notification of APRA's decision

  (8)   APRA must notify the insurer in writing of APRA's decision on the application.

Note:   Refusals of applications are reviewable under section   168.