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CORPORATIONS REGULATIONS 2001 - REG 7.9.15

More detailed information in Product Disclosure Statement: unauthorised foreign insurer

             (1)  For paragraph 1013D(4)(c) of the Act, the more detailed information that must be included in a Product Disclosure Statement that relates to a financial product issued by an unauthorised foreign insurer is:

                     (a)  a statement that the product issuer is:

                              (i)  an unauthorised foreign insurer; and

                             (ii)  not authorised under the Insurance Act 1973 to conduct insurance business in Australia; and

                     (b)  a statement that an insurer of that kind is not subject to the provisions of the Insurance Act 1973 , which establishes a system of financial supervision of general insurers in Australia; and

                     (c)  a statement that the person should consider whether to obtain further information, including:

                              (i)  the country in which the product issuer is incorporated, and whether the country has a system of financial supervision of insurers; and

                             (ii)  the paid up capital of the product issuer; and

                            (iii)  which country's laws will determine disputes in relation to the financial product; and

                     (d)  a statement that an insurer of that kind cannot be a declared general insurer for the purpose of Part VC of the Insurance Act 1973 , and, if the insurer becomes insolvent, the person will not be covered by the financial claims scheme provided under Part VC of that Act.

             (2)  In this regulation:

unauthorised foreign insurer means:

                     (a)  an insurer that:

                              (i)  does not have an authority under the Insurance Act 1973 to carry on insurance business; and

                             (ii)  is not a person who, because of section 5 of that Act, is not required to have such an authority; and

                            (iii)  carries on insurance business outside Australia and the external Territories to which the Insurance Act 1973 extends; or

                     (b)  if a direction is in force under section 74 of the Insurance Act 1973 --a Lloyd's underwriter.



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