Commonwealth Numbered Regulations - Explanatory Statements

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INSURANCE REGULATIONS (AMENDMENT) 1992 NO. 177

Statutory Rules 1992 No. 177

Issued by the Authority of the Treasurer

Insurance Act 1973

Insurance Regulations (Amendment)

Section 132 of the Insurance Act 1973 (the Act) provides that the Governor-General may make regulations for the purpose of the Act.

The Act provides authority for the prudential supervision by the Commonwealth of the general (non-life) insurance industry. The framework under which the industry is supervised involves authorisation of companies to carry on insurance business and, among other things, completion of quarterly and annual forms to be lodged with the Insurance and Superannuation Commissioner.

These forms were originally determined some 17 years ago and remained largely unchanged in that time. A two-year review of reporting requirements was recently completed and resulted in substantial alterations to the forms being recommended.

These Regulations up-date and modernise the prescribed statutory forms, in order to achieve closer conformity with recently altered Corporations Law requirements (in particular accounting standard AASB 1023 which has mandatory application for general insurers with financial years ending on or after 30 June 1992) and to meet contemporary supervisory requirements as well as current industry practices having regard to changes in resources and technology.

The Regulations replace the existing forms to achieve the above aims and at the same time simplify the manner in which they are to be completed. In this respect, directions for completion of forms are now an integral part of the forms themselves thereby making them more self-contained.

Regulation 1 provides that the amended Regulations commence on 1 July 1992.

Regulation 2 cites the Insurance Regulations as the amended Regulations.

Regulation 3 amends previous Regulation 2 by adding a definition, omitting certain definitions, and giving general directions for references contained in the forms as set out in the Schedule.

Regulation 4 amends previous Regulation 3 by adding general directions concerning adherence to instructions in completion of forms, the numbering of attachments, and prescribing that, upon request, a copy of any form to be lodged is to be made available to the insurer by the Commissioner.

Regulation 5 amends previous Regulation 4 to set revised business hours for offices of the Commissioner.

Regulation 6 amends previous Regulation 5 by inserting a new subparagraph requiring certain accounts of related companies to be lodged with the Commissioner.

Regulation 7 amends previous Regulation 6 by giving 'prescribed interest' the same meaning as in the Corporations Law.

Regulation 8 amends previous Regulation 7 by specifying that only two copies of accounts, statements or reports are to be lodged with the commissioner.

Regulation 9 amends previous Regulation 9 by changing the prescribed classes of business for the purposes of the Act.

Regulation 10 amends previous Regulation 11 to reflect changes to the titles of forms specified in the Schedule.

Regulation 11 amends previous Regulation 12 by bringing new forms relating to reinsurance, investment revenue and estimated settlement pattern of outstanding claims into effect.

Regulation 12 omits previous Regulation 13 and inserts a new Regulation changing the number of copies of accounts, etc to be lodged under Regulations 11 and 12 to two.

Regulation 13 omits previous Regulation 14 and inserts a new Regulation specifying that certain parts of forms do not have to be audited.

Regulations 14-24 omit previous Regulations 15-24 which are no longer required.

Regulation 25 amends previous Regulation 29 to provide for a new schedule of fees payable to the Commissioner for the provision of certain information.

Regulation 26 substitutes the existing Schedule of forms with a new Schedule of forms to be completed by insurers.

Regulation 27 provides for certain transitional arrangements for some forms following commencement of the Regulations.