Insurance Act 1973

On application by APRA, the Federal Court of Australia may, by order, disqualify a person from being or acting as a person referred to in subsection (2), for a period that the Court considers appropriate, if the Court is satisfied that:

the person is not a fit and proper person to be or act as such a person; and

the disqualification is justified.

For the purposes of subsection (1), the Court may disqualify a person from being or acting as one or more of the following:

a director or senior manager of:

a particular general insurer; or

a class of general insurers; or

any general insurer;

a senior manager, or agent in Australia for the purpose of section 118, of:

a particular foreign general insurer; or

a class of foreign general insurers; or

any foreign general insurer;

a director or senior manager of:

a particular authorised NOHC; or

a class of authorised NOHCs; or

any authorised NOHC;

a director or senior manager of:

a particular corporate agent; or

a class of corporate agents; or

any corporate agent.

In deciding whether it is satisfied as mentioned in paragraph (1)(a), the Court may take into account:

any matters specified in the regulations for the purposes of this paragraph; and

any criteria for fitness and propriety set out in the prudential standards; and

any other matters the Court considers relevant.

In deciding whether the disqualification is justified as mentioned in paragraph (1)(b), the Court may have regard to:

the person’s conduct in relation to the management, business or property of any corporation; and

any other matters the Court considers relevant.

As soon as practicable after the Court disqualifies a person under this section, APRA must cause particulars of the disqualification:

to be given:

if the person is, or is acting as, a person referred to in subparagraph (2)(a)(i)—to the general insurer concerned; or

if the person is, or is acting as, a person referred to in subparagraph (2)(b)(i)—to the foreign general insurer concerned; or

if the person is, or is acting as, a person referred to in paragraph (2)(c)(i)—to the authorised NOHC concerned; or

if the person is, or is acting as, a person referred to in paragraph (2)(d)(i)—to the corporate agent concerned, and to any foreign general insurer for which the agent is the corporate agent; and

to be published in the Gazette.