Commonwealth Numbered Acts

Insurance Amendment Act 1983 No. 129 of 1983 - SECT 48

48. (1) Where it appears to the Commissioner that, by reason of the activities
of a prescribed body corporate in an interim year of that body corporate, the
body corporate is, or is about to become, unable to meet its liabilities or
has contravened or failed to comply with a provision of the Insurance Act 1973
or with a condition or a direction applicable to it under that Act he may, by
notice in writing served on the body corporate in accordance with section 121
of that Act, give directions to the body corporate with respect to the
carrying on of its insurance business.

(2) Where a direction has been given to a body corporate under sub-section (1)
and it appears at any time to the Commissioner that the direction is no longer
necessary or should be varied, the Commissioner shall, by notice in writing
served on the body corporate, revoke or vary the direction.

(3) Where a body corporate to which a direction has been given under
sub-section (1) applies to the Commissioner, by notice in writing, for the
direction to be revoked or varied, the Commissioner shall-

   (a)  if it appears to him that the direction is no longer necessary or
        should be varied-revoke or vary the direction; or

   (b)  in any other case-refuse to revoke or vary the direction,
and shall serve on the body corporate notice in writing of his decision.

(4) A prescribed body corporate that contravenes or fails to comply with a
direction given to it under sub-section (1) is, in respect of each day during
which it so contravenes or fails to comply with the direction (including the
day of a conviction under this sub-section or any subsequent day), guilty of
an offence punishable on conviction by a fine not exceeding $20,000.

(5) Without limiting the directions that may be given to a body corporate
under sub-section (1), the following directions may be given under that
sub-section:

   (a)  a direction that the body corporate shall not issue policies or
        undertake liability under contracts of insurance;

   (b)  a direction that the body corporate shall not renew policies;

   (c)  a direction that the body corporate shall not issue policies in
        respect of insurance business included in a class of insurance
        business specified in the direction or undertake liability under
        contracts of insurance included in a class of contracts of insurance
        so specified;

   (d)  a direction that the body corporate shall not renew policies in
        respect of insurance business included in a class of insurance
        business specified in the direction;

   (e)  a direction that the body corporate shall limit the amount of its
        premium income during a specified financial year, or the amount of its
        premium income in Australia during a specified financial year, to a
        specified amount.

(6) Part VI of the Insurance Act 1973 applies to a decision of the
Commissioner under sub-section (1), and, for the purposes of the definition of
''reviewable decision of the Treasurer or the Commissioner'' in sub-section 63
(1) of that Act, that Part shall be deemed so to apply by virtue of that Act.

(7) The powers conferred on the Commissioner by this section are in addition
to, and do not derogate from, the powers conferred on the Commissioner or on
the Treasurer by the Insurance Act 1973.

(8) Where a body corporate in respect of which a direction has been given
under sub-section (1) is commenced to be wound up, the direction ceases to
have effect.

(9) Nothing in this section affects the validity of a transaction entered into
by a prescribed body corporate in contravention of a direction given under
sub-section (1).

(10) A direction given under sub-section (1) has effect and shall be complied
with notwithstanding anything in any law of a State or Territory.

(11) Section 19A of the Insurance Act 1973 applies in relation to the powers
of the Commissioner under this section in like manner as it applies to the
powers of the Commissioner under that Act.

(12) Section 129A of the Insurance Act 1973 applies to an offence against
sub-section (4) as if references in that section to provisions of that Act
included a reference to sub-section (2).

(13) Section 129B of the Insurance Act 1973 applies in relation to this
section as if a reference in that section to a provision of that Act were a
reference to this section.

(14) While a person is acting as the Commissioner he has and may exercise all
the powers of the Commissioner under this section.

(15) In this section, unless the contrary intention appears,
''direction'' includes, where a direction is varied, the direction as varied.

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