Commonwealth Consolidated Regulations

CORPORATIONS REGULATIONS 2001 - REG 7.6.08E

             (1)  This regulation applies in relation to a general insurance product:

                     (a)  that is entered into as a result of a dealing in the product, either wholly or partially, by the person; and

                     (b)  that is not a reinsurance contract or a retrocession contract; and

                     (c)  in relation to which an unauthorised foreign insurer is a party to the contract that is the general insurance product.

Note:          An unauthorised foreign insurer may be a party to a contract of insurance to which Part 2 of the Insurance Regulations 2002 applies. These are insurance contracts for:

(a)    high-value insured; and

(b)    atypical risks; and

(c)    risks that cannot reasonably be placed in Australia; and

(d)    contracts required by foreign law.

             (2)  However, if the general insurance product has been dealt with by more than 1 person, this regulation only applies, in relation to the general insurance product, to the person who has:

                     (a)  dealt directly with the unauthorised foreign insurer; or

                     (b)  dealt indirectly with the unauthorised foreign insurer through a foreign intermediary.

             (3)  For section 912CA of the Act, the person must provide information to APRA about the general insurance product entered into within a reporting period specified in subregulation (5):

                     (a)  in accordance with Table 2 in Form 701; and

                     (b)  either:

                              (i)  within the time specified by ASIC or APRA if that is a reasonable time; or

                             (ii)  if ASIC or APRA do not specify a time--within 20 business days after the last day of the applicable reporting period.

Penalty:

                     (a)  for an individual--20 penalty units; and

                     (b)  for a body corporate--200 penalty units.

             (4)  For section 912CA of the Act, the person must provide further information to APRA relating to the information provided in accordance with Table 2 in Form 701:

                     (a)  if APRA makes a request in writing for the further information; and

                     (b)  either:

                              (i)  within 5 business days of receiving the request; or

                             (ii)  if ASIC or APRA specify a later date--by that date.

Penalty:

                     (a)  for an individual--20 penalty units; and

                     (b)  for a body corporate--200 penalty units.

             (5)  The reporting periods are:

                     (a)  1 May to 30 June 2010; and

                     (b)  1 July to 31 December 2010; and

                     (c)  1 January to 30 June in any year after 2010; and

                     (d)  1 July to 31 December in any year after 2010.

             (6)  Strict liability applies to subregulations (3) and (4).