Commonwealth Numbered Acts Commonwealth Numbered ActsWhen a direction may be given
(1) APRA may, by written notice to a private health insurer, direct the insurer to terminate the appointment of a person as the appointed actuary of the insurer if APRA is satisfied that there is a ground under subsection (2) for giving the direction.
Note: Decisions to give directions under this section are reviewable under section 168.
(2) The grounds for giving a direction to terminate a person's appointment are:
(a) the person is disqualified from being or acting as an actuary of the private health insurer because of an order under section 120; or
(b) the person is a disqualified person (other than only because of an order under section 120); or
(c) the person is not a fit and proper person to hold the appointment; or
(d) the person has failed to perform adequately and properly the person's statutory functions and duties as an actuary of the insurer.
Notice to be given before direction
(3) Before directing a private health insurer to terminate a person's appointment, APRA must:
(a) give written notice to:
(i) the insurer; and
(ii) the person; and
(b) give the insurer and the person a reasonable opportunity to make submissions on the matter.
(4) The notice must include a statement that any submissions in response to the notice may be discussed by APRA with other persons as mentioned in paragraph (5)(b).
(5) If a submission is made in response to the notice, APRA:
(a) must have regard to the submission; and
(b) may discuss any matter contained in the submission with any persons APRA considers appropriate for the purpose of assessing the truth of the matter.
When a direction takes effect
(6) A direction to terminate a person's appointment takes effect on the day specified in the notice giving the direction, which must be at least 7 days after the day on which notice is given.
Insurer and person to be given copy of direction
(7) If APRA directs a private health insurer to terminate a person's appointment, APRA must give the insurer and the person a copy of the direction.
Offence
(8) A private health insurer commits an offence if:
(a) the insurer is given a direction under this section; and
(b) the insurer fails to comply with the direction.
Penalty for contravention of this subsection: 30 penalty units.
Note: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.