Insurance Act 1973

This section applies if:

a body corporate is a holding company of a general insurer; and

the general insurer is not a subsidiary of an authorised NOHC.

APRA may, by notice in writing to the body corporate, require it to ensure, in accordance with the conditions (if any) specified in the notice, that either of the following occurs:

the body corporate becomes an authorised NOHC of the general insurer;

a subsidiary of the body corporate becomes an authorised NOHC of the general insurer.

See Part 4A of the Financial Sector (Transfer and Restructure) Act 1999 for other provisions that deal with a restructure arrangement to make an operating body a subsidiary of a NOHC.

The notice may deal with the time by which, or period during which, it is to be complied with.

The body corporate has power to comply with the notice despite anything in its constitution or any contract or arrangement to which it is a party.

APRA may, by notice in writing to the body corporate, vary the notice mentioned in subsection (2) if, at the time of the variation, it considers that the variation is necessary and appropriate.

The notice mentioned in subsection (2) has effect until APRA revokes it by notice in writing to the body corporate. APRA may revoke the notice mentioned in subsection (2) if, at the time of revocation, it considers that the notice is no longer necessary or appropriate.

Part VI applies to a decision to give a notice under subsection (2).

Section 108 applies in relation to a notice to a body corporate under subsection (2) in the same way in which it applies to a direction to a general insurer under section 104.

However, section 108 does not apply to a contravention by a body corporate of a requirement in a notice under subsection (2) if:

the contravention happens merely because APRA refuses to authorise the body corporate (or its subsidiary) under section 18; and

APRA’s reasons for that refusal do not include the reason that one or more conditions specified in the notice are not satisfied.