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This Act is the Insurance Authority Act 2005.
The dictionary at the end of this Act is part of this Act.
The dictionary at the end of this Act defines certain terms used in this Act, and includes references (signpost definitions) to other terms defined elsewhere in this Act.
For example, the signpost definition ‘territory risk—see section 5.’ means that the term ‘territory risk’ is defined in that section.
A definition in the dictionary (including a signpost definition) applies to the entire Act unless the definition, or another provision of the Act, provides otherwise or the contrary intention otherwise appears (see Legislation Act, s 155 and s 156 (1)).
A note included in this Act is explanatory and is not part of this Act.
See the Legislation Act, s 127 (1), (4) and (5) for the legal status of notes.
For this Act, a territory risk is any risk of the Territory, and includes—
a direct risk of the Territory or a territory entity; and
a risk accepted by the Territory or a territory entity; and
a risk arising under a guarantee or indemnity given by the Territory or a territory entity;
whether or not the risk relates to an officer, employee or agent of the Territory or a territory entity or to property owned by or held on behalf of the Territory or a territory entity.
In this Act:
territory entity means—
a territory authority; or
a public sector company.
In this section:
controlling interest—the Territory or a territory entity has a controlling interest in a company if its interest in the company is of a kind that—
it can—
control the composition of the board of directors of the company; or
cast, or control the casting of, more than 50% of the maximum number of votes that might be cast at a general meeting of the company; or
control more than 50% of the issued share capital of the company (excluding any part of the issued share capital that carries no right to participate beyond a particular amount in a distribution of either profits or capital); or
if paragraph (a) does not apply—no-one else holds a greater interest in the company.
public sector company means—
a territory-owned corporation; or
a subsidiary of a territory-owned corporation; or
a company prescribed by regulation; or
any other company in which the Territory or another territory entity has a controlling interest.
subsidiary, of a territory-owned corporation, means a subsidiary under the Territory-owned Corporations Act 1990 of the territory‑owned corporation.
Note for pt 2
The governance of territory authorities, including the insurance authority, is regulated by the Financial Management Act 1996 (the FMA), pt 9 as well as the Act that establishes them.
The FMA, pt 9 deals, for example, with the corporate status of territory authorities and their powers, the make-up of governing boards, the responsibilities of the governing board and board members, how governing board positions can be ended, meetings of governing boards and conflicts of interest.
The Australian Capital Territory Insurance Authority is established.
The authority is a corporation (see Financial Management Act 1996, s 54, s 72, def relevant territory authority, and s 73).
The Legislation Act, dict, pt 1, defines establish as including continue in existence.
The director‑general is the authority.
The authority has the following functions:
to carry on the business of insurer of territory risks;
to take out insurance of territory risks with other entities;
to satisfy or settle claims in relation to territory risks (including claims that may not necessarily be valid in law);
with the Treasurer’s approval, to take action for the realising, enforcing, assigning or extinguishing rights against third parties arising out of or in relation to its business, including, for example—
taking possession of, dealing with or disposing of, property; or
carrying on a third party’s business as a going concern;
to develop and promote good practices for the management of territory risks;
to give advice to the Minister about insurance and the management of territory risks;
to exercise any other function given to it under this Act or another territory law.
A provision of a law that gives an entity (including a person) a function also gives the entity powers necessary and convenient to exercise the function (see Legislation Act, s 196 and dict, pt 1, def entity).
The authority may ask an agency, or make arrangements with an agency for it, to give the authority information, or a copy of a document, in the agency’s possession or control for the exercise of its functions.
The agency must comply with the request or arrangement.
In this section:
agency means—
an administrative unit; or
a territory entity.
The authority may give an indemnity to a third party for a territory risk arising under a contract to which the Territory or a territory entity is a party only if the Minister has certified that the giving of the indemnity by the authority is in the Territory’s interest.
In this section:
third party means an entity other than the Territory or a territory entity.
The insurance management guidelines must provide for the establishment of an advisory board for the authority.
The authority must establish the advisory board in accordance with the insurance management guidelines.
The Minister may give a written direction to an agency in relation to any of the following:
the management of territory risks;
the insurance of territory risks, including, for example—
what territory risks must or may be insured with the authority; and
what territory risks must or may be insured with other entities.
A direction under this section is a disallowable instrument.
An agency must comply with a direction given to it under this section.
For the Competition and Consumer Act 2010 (Cwlth), this Act authorises—
the giving of a direction under this section; and
the doing of, or the failure to do, anything by the Territory, an agency or the authority to comply with a direction under this section.
In this section:
agency—see section 10 (3).
The Treasurer may make insurance management guidelines for this Act.
Without limiting subsection (1), an insurance management guideline may make provision for the membership and functions of the advisory board under section 12.
An insurance management guideline is a disallowable instrument.