General insurer must hold sufficient assets
28 General insurer must hold sufficient assets
A general insurer commits an offence if:
it does not hold assets in Australia (excluding goodwill and any assets or other amount excluded by the prudential standards for the purposes of this section) of a value that is equal to or greater than the total amount of its liabilities in Australia other than pre‑authorisation liabilities; and
APRA has not authorised the insurer to hold assets of a lesser value; and
there is no determination in force under subsection 7(1) determining that this subsection does not apply to the insurer.
Penalty: 200 penalty units.
Certain amounts are taken to be assets in Australia, and certain liabilities are taken to be liabilities in Australia, under section 116A.
Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.
If a body corporate is convicted of an offence against this section, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty above.
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