Commonwealth Numbered Regulations - Explanatory Statements

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INSURANCE CONTRACTS REGULATIONS (AMENDMENT) 1998 NO. 78

STATUTORY RULES NO. 78

Issued by the authority of the Assistant Treasurer

Insurance Contracts Act 1984

Insurance Contracts Regulations (Amendment)

The Insurance Contracts Act 1984 (the Act) and the Insurance Contracts Regulations (the Principal Regulations) provide for a fair balance between the interests of insurers, insureds and other members of the public. The Act ensures that the terms of contracts of insurance, and the practices of insurers in relation to such contracts, are fair and reasonable.

Section 78 of the Act provides that the Governor-General may make Regulations for the purposes of the Act.

The purpose of the proposed Regulations is to correct a drafting error in Regulation 36 of the Principal Regulations. Regulation 36 prescribes financial sector supervisory agencies, law enforcement agencies and overseas financial sector supervisory agencies for the purposes of section 11F of the Act.

Section 11F of the Act provides for secrecy in respect of information acquired for purposes of the Act. Section 1 1F allows that information may be disclosed to prescribed financial sector supervisory agencies, law enforcement agencies and overseas financial sector supervisory agencies. Section 11F and the Principal Regulations are aimed at facilitating the ability of the Insurance and Superannuation Commission to act quickly to exchange information to prevent and/or manage a crisis situation within financial conglomerates.

Regulations 1 and 2 are self explanatory. Regulation 3 amends Regulation 36 of the Principal Regulations to correct a drafting error. The amendment omits the reference to the 'Queensland Motor Accident Authority' and inserts a reference to the 'Motor Accident Insurance Commission, Queensland'. The drafting error was inserted into Regulation 36 of the Principal Regulations by Statutory Rule Number 239 of 1997.

The Regulations commence on gazettal.