Insurance Companies' Deposits Act 1953

1: Short Title
This Act may be cited as the Insurance Companies' Deposits Act 1953.
2: Interpretation
In this Act, unless the context otherwise requires,— agent section 3 approved securities
a: any debentures, stock, bonds, or other securities issued by the Government of New Zealand:
b: any debentures, stock, bonds, or other securities issued by—
i: a local authority within the meaning of the Local Government Act 2002
ii: any body that, immediately before the repeal of the Local Authorities Loans Act 1956 Part 6 of that Act section 2 of that Act
c: any debentures, stock, bonds, or other securities issued by any Crown Bank Account Approved Securities: this definition was substituted 2 October 1958 Insurance Companies' Deposits Amendment Act 1958 Approved Securities: this definition was amended 8 December 1971 Insurance Companies' Deposits Amendment Act 1971 by inserting in para (b) the words or Catchment Commission the Bay of Plenty Harbour Board Marlbourough Harbour Board, the Napier Harbour Board, the Nelson Harbour Board, the Northland Harbour Board, the Otago Harbour Board, the Taranaki Harbour Board Napier Harbour Board, the Otago Harbour Board the Gisborne Harbour Board or the Wanganui Harbour Board the Bay of Islands Harbour Board, the Gisborne Harbour Board, the Taranaki Harbour Board, the Tauranga Harbour Board, the Wanganui Harbour Board, or the Whangarei Harbour Board or by any other body or person Approved Securities: this definition was substituted 8 November 1974 section 2(1) Insurance Companies' Deposits Amendment Act 1974 Approved Securities: the words Consolidated Account substituted 1 April 1978 Consolidated Revenue Account Public Finance Act 1977 substituted 1 July 1989 Crown Bank Account section 83(1)(a) Public Finance Act 1989 Approved securities: paragraph (b) of this definition was substituted 1 July 2003 section 262 Local Government Act 2002 See sections 273 to 314 Approved securities: paragraph (c) of this definition was amended 1 July 2003 section 262 Local Government Act 2002 by substituting the word any the Auckland Harbour Bridge Authority or the Christchurch-Lyttelton Road Tunnel Authority or by any other See sections 273 to 314 Commonwealth company Commonwealth country Commonwealth underwriter company mutual insurance association depositor Public Trust Depositor: this definition was amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust the Public Trustee See clause 2 financial year foreign company foreign underwriter insurance Insurance: this definition was inserted 8 November 1974 section 2(2) Insurance Companies' Deposits Amendment Act 1974 insurance business
a: life insurance (including endowment and annuity contracts); and
b: insurance against earthquakes:
c: accident insurance business in terms of the Accident Insurance Act 1998 Insurance business: this definition was substituted 8 November 1974 section 2(3) Insurance Companies' Deposits Amendment Act 1974 Insurance business: paragraph (c) of this definition was inserted 1 July 1999 Accident Insurance Act 1998 local company Minister Minister: this definition was inserted 1 October 1995 section 10(3) Department of Justice (Restructuring) Act 1995 mortgage guarantee insurance Mortgage guarantee insurance: this definition was inserted 8 November 1974 section 2(4) Insurance Companies' Deposits Amendment Act 1974 mutual insurance association mutual insurance association Mutual Insurance Act 1955 Mutual Insurance Association: in this definition the Mutual Insurance Act 1955 has been substituted policyholder premium income Secretary Secretary: this definition was inserted 1 October 1995 section 10(3) Department of Justice (Restructuring) Act 1995 underwriter mutual insurance association 1921–22 No 40 s 2 1927 No 71 ss 2(1), 5 1940 No 27 ss 3, 11(4)
3: Liability to make deposits
1: Deposits with Public Trust
a: every local company, Commonwealth company, or foreign company which at the passing of this Act is carrying on in New Zealand any class of insurance business (except marine insurance business)
b: every mutual insurance association
c: every person (not being a mutual insurance association (except marine insurance business)
d: every person who at the passing of this Act is acting in New Zealand as agent of a Commonwealth underwriter or of a foreign underwriter in respect of any class of insurance business (except marine insurance business)
e: every person who commences after 26 August 1974 to carry on in New Zealand marine insurance business, or to act in New Zealand as an underwriter in respect of marine insurance business, or to act in New Zealand as agent of a Commonwealth underwriter or of a foreign underwriter in respect of marine insurance business.
f: Every person who as at 1 February 1983 acts or who thereafter commences to act in New Zealand as the agent of a company (being a Commonwealth company or a foreign company) which is deemed under subsection (2)
2: For the purposes of this Act, every person who, in the course of his business, negotiates or attempts to negotiate, directly or indirectly (whether through a broker or otherwise), any contract of insurance between—
a: any company engaged in carrying on any class of insurance business or any underwriter (in this section referred to as the insurer); and
b: any other person in New Zealand (in this section referred to as the insured)— shall be deemed to be the agent of the insurer (whether or not he is also the agent of the insured), and, if the insurer is a company and enters into the contract of insurance, the insurer shall be deemed to be carrying on in New Zealand the class of insurance business to which the contract belongs.
3: The fact that any person issues any cover note in respect of a contract of insurance, or gives any information that insurance has been effected, or issues any receipt or other document acknowledging the receipt of a premium in respect of a contract of insurance, or receives any premiums, proposals, or requests for insurance business shall, for the purposes of this section, be conclusive evidence that he is engaged in the business of negotiating or attempting to negotiate contracts of insurance.
4: For the purposes of this Act, a person shall be deemed to act as the agent of an underwriter if that person acts in New Zealand as the agent or servant of a person carrying on business out of New Zealand as the agent of an underwriter.
5: Nothing in this section shall impose an obligation to make a deposit under this Act on any person who, in negotiating or attempting to negotiate any contract of insurance, acts as the servant or authorised agent of an agent or underwriter by whom a deposit has been made in respect of that class of insurance business represented by the contract. 1921–22 No 40 s 3 1922 No 15 s 2 1927 No 71 ss 3, 4 1937 No 17 s 56 1940 No 27 ss 4–8 Subsection (1) amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust the Public Trustee See clause 2 Public Trust Act Commencement Order 2002 Subsection (1)(a) (c) (d) amended 26 August 1974 section 3(1) Insurance Companies' Deposits Amendment Act 1974 by inserting the words (except marine insurance business) Subsection (1)(e) inserted 26 August 1974 section 3(2) Insurance Companies' Deposits Amendment Act 1974 Subsection (1)(f) inserted 30 November 1982 Insurance Companies' Deposits Amendment Act 1982
3A: Deposit may be made by Lloyds of London
1: Public Trust
2: A deposit made in accordance with subsection (1) subsection (5) of section 3 section 10
3: A deposit made in accordance with subsection (1)
a: on the expiration of 6 months after service on Public Trust
b: on satisfying Public Trust
4: Where any notice is served on Public Trust paragraph (a) of subsection (3) it it Section 3A inserted 8 November 1974 section 4 Insurance Companies' Deposits Amendment Act 1974 Section 3A amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust the Public Trustee The Public Trustee See clause 2 Public Trust Act Commencement Order 2002 Subsection (4) amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the word it he See clause 2 Public Trust Act Commencement Order 2002
4: Amount of deposit
1: A deposit of $500,000 shall be made with Public Trust
a: every company commencing after 26 August 1974 to carry on in New Zealand any class of insurance business (whether or not that company was on that date carrying on in New Zealand any other class of insurance business):
b: every person (not being a mutual insurance association) commencing after 26 August 1974 to act in New Zealand as an underwriter in respect of any class of insurance business (whether or not that person was on that date acting in New Zealand as an underwriter in respect of any other class of insurance business):
c: every person commencing after 26 August 1974 to act in New Zealand as agent of a Commonwealth underwriter or of a foreign underwriter in respect of any class of insurance business (whether or not that person was on that date acting in New Zealand as agent of a Commonwealth underwriter or a foreign underwriter in respect of any other class of insurance business): provided that no person shall be required to make a deposit under this subsection in respect of more than one class of insurance business.
1A: Where any person is required to make a deposit under subsection (1)
a: he shall not be required to make a deposit under the provisions of subsection (1B) sections 5 6
b: any money or approved securities deposited by that person under any of those provisions shall be deemed to have been deposited under subsection (1)
1B: Subject to the foregoing provisions of this section and to sections 5 6 6A Schedule 1
2: For the purposes of Schedule 1 Provided that—
a: a person carrying on the business of marine insurance shall not be deemed to carry on the business of fire insurance by reason only that loss by fire is one of the various risks covered by the marine policies issued by that person:
b: a person carrying on the business of insurance against earthquake shall not be deemed to be carrying on the business of fire insurance by reason only that he insures against loss by fire consequential on earthquake:
c: if Public Trust 1921–22 No 40 s 3 1922 No 15 s 2 1927 No 71 ss 3, 6 1940 No 27 ss 4–8 Subsection (1) substituted (1A) (1B) inserted 26 August 1974 section 5 Insurance Companies' Deposits Amendment Act 1974 Section 4 amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust the Public Trustee See clause 2 Public Trust Act Commencement Order 2002
4A: Amount of deposit to be made by agent of Commonwealth company or foreign company
1: A deposit shall be made with Public Trust section 3(2)
2: The amount of the deposit that the person who acts as agent is liable to make under subsection (1)
3: Nothing in this section or in section 3
a: has made a deposit under this Act; or
b: is not liable under this Act to make a deposit in respect of the class of insurance business represented by the contract. Sections 4A 4B inserted 30 November 1982 Insurance Companies' Deposits Amendment Act 1982 Subsection (1) amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust the Public Trustee See clause 2 Public Trust Act Commencement Order 2002
4B: Public Trust
1: Notwithstanding anything in this Act, Public Trust
2: A deposit accepted under subsection (1)
3: No deposit shall be made or accepted by Public Trust Gazette
4: Notwithstanding anything in this Act, no Commonwealth underwriter or foreign underwriter or Commonwealth company or foreign company shall be liable to make a deposit under this Act in respect of any class of insurance business placed with that Commonwealth underwriter or foreign underwriter or Commonwealth company or foreign company by an agent to which subsection (1) Sections 4A 4B inserted 30 November 1982 Insurance Companies' Deposits Amendment Act 1982 The heading to section 4B amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust Public Trustee See clause 2 Public Trust Act Commencement Order 2002 Section 4B amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust the Public Trustee See clause 2 Public Trust Act Commencement Order 2002 Subsection (3) amended 1 October 1995 section 10(3) Department of Justice (Restructuring) Act 1995 by omitting the words of Justice
5: Smaller deposits permitted in certain cases
1: This section shall apply with respect to—
a: every local company to which section 5 of the Insurance Companies Act 1940 section 5 of the Insurance Companies' Deposits Amendment Act 1950
b: every person to whom section 8 of the Insurance Companies Act 1940
2: Where at the passing of this Act any local company or person to which or to whom this section applies has made the full deposit required to be made by that company or person in respect of the carrying on of any class of insurance business under the provisions of Part 1 of the Insurance Companies Act 1940 section 5 of the Insurance Companies' Deposits Amendment Act 1950 subsection (3) of this section section 10
3: If the premium income in respect of any class of insurance business earned in the last financial year of the depositor ended before the passing of this Act or in any subsequent financial year by any local company or person to which or to whom this section applies is such that, if the amount of the deposit required by this Act in respect of that class of business were computed on the basis of a sum of $2,000 $2,000 $5,000
4: No local company or person shall be required under this section to deposit in respect of any class of insurance business a greater sum than the sum specified in Schedule 1
5: Where by reason of the provisions of this section an increase in any deposit is required, that deposit shall be made within 6 months after the end of the financial year in which the premium income is such that an increase in the amount of the deposit is required. 1940 No 27 ss 5, 6, 8 1950 No 82 s 5
6: Deposits to be made by mutual insurance associations
1: Every mutual insurance association Public Trust $2,000 $2,000 $5,000
2: Every mutual insurance association Public Trust $2,000
3: If the premium income earned by any mutual insurance association $2,000 $2,000 $5,000 Public Trust
4: Notwithstanding anything in this section, no mutual insurance association $45,000 Section 6 amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust the Public Trustee See clause 2 Public Trust Act Commencement Order 2002
6A: Deposits by existing companies carrying on mortgage guarantee insurance business
1: Every company that is, on 26 August 1974, carrying on in New Zealand the business of mortgage guarantee insurance shall make with Public Trust Provided that no company that has made a deposit of that amount under section 4
2: Notwithstanding subsection (1) subsection (3) subsection (1) subsection (4)
3: The matters referred to in subsection (2)
a: the average total mortgage indebtedness that is the subject of the guarantees given by the company in relation to the average value of the properties over which that total mortgage indebtedness is secured; and
b: the company's total contingent liabilities (net of reinsurance) in relation to a company's net assets; and
c: the class of properties over which the mortgage indebtedness guaranteed by the company is secured; and
d: such other matters as the Minister considers relevant to a proper assessment of the company's financial position.
4: The condition referred to in subsection (2) Public Trust
5: For the purposes of paragraph (a) of subsection (3)
6: Once in every year the Minister shall review the financial position of each company to which he has granted an exemption under subsection (2)
7: Any exemption granted by the Minister under subsection (2)
8: Notwithstanding any other provision of this Act, no deposit shall be required to be made by Housing New Zealand Corporation Section 6A inserted 8 November 1974 section 6 Insurance Companies' Deposits Amendment Act 1974 Section 6A amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust the Public Trustee See clause 2 Public Trust Act Commencement Order 2002 Subsection (8) amended 1 July 2001 section 24(1) Housing Corporation Amendment Act 2001 by substituting the words Housing New Zealand Corporation the Housing Corporation of New Zealand
6B: Deposits by companies proposing to carry on fidelity guarantee insurance or professional liability indemnity insurance
1: Notwithstanding section 4(1)
a: that in terms of the company's memorandum of association or constitution
b: that, having regard to the matters referred to in subsection (2) exempt the company from the requirement to make a deposit under the said section 4(1) subsection (3)
2: The matters referred to in subsection (1)
a: the financial position of the company; and
b: such other matters as the Minister considers relevant.
3: The condition referred to in subsection (1) Public Trust Section 6B inserted 8 November 1987 section 7 Insurance Companies' Deposits Amendment Act 1974 Subsection (1)(a) amended 1 July 1994 section 2 Company Law Reform (Transitional Provisions) Act 1994 by inserting after the word association or constitution Subsection (3) amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust the Public Trustee See clause 2 Public Trust Act Commencement Order 2002
7: When deposits to be made
1: Every person (not being a mutual insurance association
2: Every company which hereafter proposes to commence to carry on in New Zealand any class of insurance business shall, before commencing that class of business, make the deposit required by this Act in respect of that class of business.
3: Every person who hereafter proposes to commence to act in New Zealand as an underwriter or as an agent of a Commonwealth underwriter or of a foreign underwriter in respect of any class of insurance business shall, before commencing to do so, make the deposit required by this Act in respect of that class of business.
4: Subject to section 4A(3) section 3(2)
5: Subject to section 4A(3) section 3(2) Subsections (4) (5) inserted 30 November 1982 Insurance Companies' Deposits Amendment Act 1982
8: Deposits to be in approved securities
1: Every deposit (including every increase of a deposit) made by any person after the passing of this Act shall be made by the deposit with Public Trust
2: Any person who has deposited approved securities under the provisions of this Act or of any enactment repealed by this Act may withdraw any securities so deposited on depositing with Public Trust Provided that the total value of the securities and money (if any) remaining deposited with Public Trust 1940 No 27 s 11(1)–(3) 1950 No 82 s 2 Section 8 amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust the Public Trustee See clause 2 Public Trust Act Commencement Order 2002
9: Manner in which deposits to be made or withdrawn
1: Every deposit made under this Act shall be made as follows:
a: in the case of approved securities that are payable to bearer, by the delivery of the securities to Public Trust it
b: in the case of approved securities that are not payable to bearer, by the transfer of the securities to Public Trust it
2: Every withdrawal of securities made under this Act shall, unless the depositor otherwise directs in writing delivered to Public Trust
a: in the case of securities that are payable to bearer, by the delivery of the securities by Public Trust
b: in the case of securities that are not payable to bearer, by the transfer of the securities by Public Trust Section 9 amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust the Public Trustee See clause 2 Public Trust Act Commencement Order 2002 Subsections (1)(a) (b) amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the word it him See clause 2 Public Trust Act Commencement Order 2002
10: Increase of deposits where securities have depreciated
1: If Public Trust Public Trust Public Trust Public Trust
2: A notice under this section shall not be issued until after Public Trust
3: If any person fails to deposit with Public Trust Public Trust sections 20 21 22 1940 No 27 s 12 Section 10 amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust the Public Trustee See clause 2 Public Trust Act Commencement Order 2002 Subsection (1) amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the word it he See clause 2
11: Valuation of approved securities
Public Trust its 1940 No 27 s 11(6) Section 11 amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust The Public Trustee by substituting the word its his See clause 2
12: Deposits to be held in trust for policyholders
1: Subject to the provisions of this Act, Public Trust or company Provided that the deposit made in respect of any class of insurance business (not being a deposit made under section 4(1) section 4A section 4(1) section 4B
2: For the purposes of subsection (1)
3: Until all the rights and claims in New Zealand in respect of such policies or contracts as aforesaid are cancelled, annulled, or liquidated, the deposit shall not be liable to be attached or levied upon, or be subject to any debts of or claims against the depositor, without the previous consent in writing of the Minister Public Trust
4: Upon application made by Public Trust High Court Public Trust Public Trust 1921–22 No 40 s 9 Section 12 amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust the Public Trustee See clause 2 Public Trust Act Commencement Order 2002 Subsection (1) amended 30 November 1982 Insurance Companies' Deposits Amendment Act 1982 by inserting the words or company The proviso to subsection (1) substituted 30 November 1982 Insurance Companies' Deposits Amendment Act 1982 See section 8 Finance Act 1961 Subsection (3) amended 20 October 1972 Insurance Companies' Deposits Amendment Act 1972 by substituting the words Minister of Justice Minister of Finance Subsection (3) amended 1 October 1995 section 10(3) Department of Justice (Restructuring) Act 1995 by omitting the words of Justice The words High Court (4) substituted 1 April 1980 Supreme Court section 12 Judicature Amendment Act 1979
12A: Application of securities by
Public Trust
1: This section and sections 12B to 12D
2: Where a company which has deposited securities or any money, or on behalf of which any such deposit has been made, is in liquidation Public Trust
a: convert all the securities to which this section applies and held by Public Trust Public Trust
b: transfer to the liquidator of the company or any nominee of the liquidator all such securities and any money deposited by the company and held by Public Trust
3: Any money paid to the liquidator under subsection (2)(a) subsection (2)(b) subsection (2)(b) Public Trust
4: The payment of any money to the liquidator of the company under subsection (2)(a) subsection (2)(b) Public Trust
5: Nothing in this section shall authorise the payment of any money, or the transfer of any securities to any person outside New Zealand. Sections 12A 12D inserted 6 December 1983 section 2 Insurance Companies' Deposits Amendment Act 1983 The heading to section 12A amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust Public Trustee See clause 2 Public Trust Act Commencement Order 2002 Section 12A amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust the Public Trustee See clause 2 Public Trust Act Commencement Order 2002 Subsection (2) amended 1 July 1994 section 2 Company Law Reform (Transitional Provisions) Act 1994 by substituting the words is in liquidation is being wound up
12B: Liquidator to value policies in winding up
1: In the liquidation
2: Notice in writing of the amount of such liability under each policy of insurance determined under subsection (1)
a: giving it personally to that person; or
b: sending it to that person by post addressed to that person either by name or office at that person's last known place of abode or business, or at any address given by that person.
3: Notice given under subsection (2)
4: The amount of the liability of the company as determined by the liquidator under subsection (1) subsection (2)
5: On an appeal to the High Court against the liquidator's determination, the High Court may confirm, reverse, or modify the determination appealed against and may make such other order as it thinks just. Sections 12A to 12D inserted 6 December 1983 section 2 Insurance Companies' Deposits Amendment Act 1983 Subsection (1) amended 1 July 1994 section 2 Company Law Reform (Transitional Provisions) Act 1994 by substituting the word liquidation winding up
12C: Liquidator to distribute securities
1: The liquidator shall, in accordance with this section, distribute to each policyholder entitled thereto—
a: the sum paid to the liquidator by Public Trust section 12A(2)(a)
b: the sum representing the proceeds of conversion into cash of any securities transferred by Public Trust
2: The amount of such sum to which each policyholder is entitled on a distribution under this section shall be—
a: in the case of policyholders of a class of insurance business in respect of which the deposit was held by Public Trust section 12 section 12B
b: in the case of all policyholders of the company in respect of which the deposit was held by Public Trust section 12 section 12B
c: an amount equal to the value of the policy— whichever is the lesser.
3: Distributions under this section shall be made as soon as practicable after—
a: payment to the liquidator by Public Trust section 12A(2)(a)
b: the conversion into cash of any of the securities referred to in subsection (1)(b)
c: the receipt of the proceeds arising from any transfer to a nominee of the liquidator; or
d: the determination of any appeal under 1section 2B whichever is later in time.
4: Every policyholder shall be entitled to prove in the liquidation of a company for any amount which remains owing by the company to that policyholder under a contract of insurance following a distribution under this section. Sections 12A 12D inserted 6 December 1983 section 2 Insurance Companies' Deposits Amendment Act 1983 Section 12C amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust the Public Trustee See clause 2 Public Trust Act Commencement Order 2002
12D: Section 12(4) not to apply where company in liquidation
Where a company is being wound up or is in liquidation, no person shall make an application under section 12(4) Sections 12A to 12D inserted 6 December 1983 section 2 Insurance Companies' Deposits Amendment Act 1983 Section 12D substituted 1 July 1994 section 2 Company Law Reform (Transitional Provisions) Act 1994
13: Investment of cash deposits
Section 13 repealed 1 March 2002 section 170(1) Public Trust Act 2001 See clause 2
14: Income from deposits
1: Except in so far as may otherwise be provided in any order made by the High Court section 12
2: 1921–22 No 40 s 6(2) 1923 No 3 s 2 1940 No 27 s 13 1950 No 82 s 2(2) The words High Court (1) substituted 1 April 1980 Supreme Court section 12 Judicature Amendment Act 1979 Subsection (1) amended 1 March 2002 section 170(1) Public Trust Act 2001 by omitting the words money or See clause 2 Public Trust Act Commencement Order 2002 Subsection (2) repealed 1 March 2002 section 170(1) Public Trust Act 2001 See clause 2 Public Trust Act Commencement Order 2002
15: Cover notes and receipts to refer to deposit
1: Every cover note and every receipt or other document acknowledging the receipt of a premium in respect of a contract of insurance issued by any agent or underwriter required to make a deposit under this Act in respect of the class of insurance business represented by that contract, or issued by any person acting as the servant or agent of any such agent or underwriter, at any time after the deposit is required to be made shall bear on the face thereof the name of the agent or underwriter by whom the deposit has been made, together with a statement to the effect that a deposit has been so made and is available as security for the contract of insurance evidenced by the cover note, receipt, or other document as aforesaid.
2: Every person who issues any such cover note, receipt, or other document as aforesaid that does not conform to the requirements of this section commits an offence, and is liable on summary conviction to a fine not exceeding $100 1927 No 71 s 3(5)
16: Statements to be supplied annually
1: Every person required by this Act to make a deposit with Public Trust Schedule 2
2: The Governor-General may from time to time, on the recommendation of the Minister Schedule 2
3: Before making any recommendation for the purposes of subsection (2)
4: Failure to comply with subsection (3) subsection (2)
5: Notwithstanding subsection (2) Schedule 2
6: Every such statement shall be audited by a person qualified to be the auditor of a company under section 199
7: The original of each statement shall be signed by the auditor, and shall also be signed in the case of a company by the principal officer of the company managing its business in New Zealand, or in the case of a mutual insurance association by the secretary or manager of the association, or in the case of a person not being a company or a mutual insurance association, by that person.
8: Nothing in this section shall require a company to prepare a statement or statements in relation to any financial year if the Secretary Subsection (1) amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust the Public Trustee See clause 2 Public Trust Act Commencement Order 2002 Subsection (2) of the original section 16 amended 20 October 1972 Insurance Companies' Deposits Amendment Act 1972 by substituting the word two three Subsection (4) of the original section 16 substituted 20 October 1972 Insurance Companies' Deposits Amendment Act 1972 Section 16 substituted 6 December 1983 section 3(1) Insurance Companies' Deposits Amendment Act 1983 Subsections (2) (3) amended 1 October 1995 section 10(3) Department of Justice (Restructuring) Act 1995 by omitting the words of Justice Subsection (6) amended 1 July 1994 section 2 Company Law Reform (Transitional Provisions) Act 1994 by substituting the words section 199 of the Companies Act 1993 section 402(5) of the Companies Act 1955 Subsections (6) (8) amended 1 October 1995 section 10(3) Department of Justice (Restructuring) Act 1995 by omitting the words for Justice
17: Penalty for false statement
Every person who signs or deposits any statement required by this Act, knowing the same to be false in any particular, is liable on summary conviction to a fine not exceeding $100 1940 No 27 s 16
18: Statement by Registrar of Motor Vehicles
Section 18 repealed 8 November 1974 section 9 Insurance Companies' Deposits Amendment Act 1974
19: Withdrawal of deposits
1: If any person who has made any deposit with Public Trust any of the provisions of this Act (except subsection (1) of section 4
a: on the expiration of 6 months after service on Public Trust
b: on satisfying Public Trust
c: on satisfying Public Trust
1A: If any person who has made a deposit with Public Trust subsection (1) of section 4
a: on the expiration of 6 months after the service on Public Trust
b: on satisfying Public Trust
c: on satisfying Public Trust
1B: Any person who has made a deposit with Public Trust section 3(1)(d) section 3(5)
1C: Any person who has made a deposit with Public Trust section 3(1)(e) section 3(5)
1D: Any person who has made a deposit with Public Trust section 3(1)(f) section 3(5)
2: For the purposes of this section a person in New Zealand shall be deemed to be carrying on a class of insurance business in New Zealand not only if he does so on his own account but also if he acts as agent of a Commonwealth underwriter or of a foreign underwriter in respect of that class of business.
3: Public Trust it 1921–22 No 40 s 8 1947 No 58 s 36 1950 No 82 s 3 Section 19 amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust the Public Trustee The Public Trustee See clause 2 Subsection (1) amended 8 November 1974 section 10(1) Insurance Companies' Deposits Amendment Act 1974 by substituting the words any of the provisions of this Act (except subsection (1) of section 4 this Act Subsection (1A) inserted 8 November 1974 section 10(2) Insurance Companies' Deposits Amendment Act 1974 Subsection (1B) inserted 23 December 1977 Insurance Companies' Deposits Amendment Act 1977 Subsections (1C) (1D) inserted 6 December 1983 section 4 Insurance Companies' Deposits Amendment Act 1983 Subsection (3) amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the word it he its his See clause 2
20: Penalty for non-compliance
1: A person who defaults in complying with any of the requirements of this Act and, if that person is a company or mutual insurance association, every officer of that company or mutual insurance association that is in default, commits an offence and is liable on summary conviction,—
a: in the case of a company or a mutual insurance association, to a fine not exceeding $200,000:
b: in the case of an individual, to a fine not exceeding $50,000.
2: For the purposes of this section the expression officer of that company or mutual insurance association who is in default
a: knowingly and wilfully authorises or permits the default; or
b: knew or ought to have known of the default, and did not take all reasonable steps to secure compliance by the company or mutual insurance association with the requirements of this Act. Section 20 substituted 6 December 1983 section 5 Insurance Companies' Deposits Amendment Act 1983 Subsection (1) substituted 22 November 2006 section 4 Insurance Companies' Deposits Amendment Act 2006
20A: Prohibition against agent negotiating contracts of insurance
1: No agent shall negotiate, or attempt to negotiate, or hold himself out as having authority to negotiate any contract of insurance on behalf of any company or underwriter, which has not made the deposit required under this Act.
2: Any agent who negotiates, or attempts to negotiate, or holds himself out as having authority to negotiate any contract of insurance on behalf of any company or underwriter, who has not made the deposit required under this Act, commits an offence and shall be liable on summary conviction to a fine not exceeding $100.
3: Nothing in this section shall apply to—
a: an agent of a company or an underwriter if that agent has made the deposit required to be made by him under this Act as the agent of that company or underwriter:
b: an agent of a Commonwealth underwriter or a foreign underwriter, or a Commonwealth company or a foreign company if that agent has made a deposit under section 4B
4: It shall be a defence to a charge under this section if the agent proves that he had reasonable grounds for believing and did believe that the deposit had been made by the company or underwriter. Section 20A inserted 6 December 1983 section 6 Insurance Companies' Deposits Amendment Act 1983
21: Prohibition against carrying on business
1: If any person makes default in complying with any of the requirements of this Act, and such default continues for a period of 3 months, the Minister Gazette
2: Notwithstanding subsection (1) Gazette
3: For the purposes of this section a person shall be deemed to be carrying on insurance business in New Zealand not only if he does so on his own account but also if he acts as agent in respect of insurance business. The original section 21 amended 20 October 1972 section 2 Insurance Companies' Deposits Amendment Act 1983 by substituting the words Minister of Justice Minister of Finance Section 21 substituted 6 December 1983 section 7 Insurance Companies' Deposits Amendment Act 1983 Subsections (1) (2) amended 1 October 1995 section 10(3) Department of Justice (Restructuring) Act 1995 by omitting the words of Justice
22: Further penalty for carrying on business after notice prohibiting
1: Any person prohibited from carrying on insurance business or any class of insurance business under section 21 section 21 $2,000 section 20 section 20A
2: For the purposes of this section, a person shall not be regarded as carrying on insurance business or any class of insurance business in New Zealand by reason only that he receives premiums or other money or does any other acts in respect of policies that have already been issued.
3: Subject to subsection (2) Section 22 substituted 6 December 1983 section 8 Insurance Companies' Deposits Amendment Act 1983 Subsection (1) amended 22 November 2006 section 5 Insurance Companies' Deposits Amendment Act 2006 by substituting the expression $2,000 $200
22A: Interpretation
In sections 22A to 22I industry association
a: representing members' views to non-members including the Government:
b: providing dispute resolution:
c: providing education and training for members:
d: providing social events for members:
e: establishing rules or codes of conduct New Zealand person
a: a company registered in New Zealand under the Companies Act 1993
b: an association within the meaning of the Mutual Insurance Act 1955
c: an incorporated or unincorporated body established in New Zealand:
d: a New Zealand resident within the meaning of section YD 1 of the Income Tax Act 2007 overseas company Companies Act 1993 specified insurance business
a: business for which a person is liable to pay a deposit under this Act:
b: insurance provided by an association under the Mutual Insurance Act 1955
c: the business of insurance under the Life Insurance Act 1908 Sections 22A 22I inserted 22 November 2006 section 6 Insurance Companies' Deposits Amendment Act 2006 Section 22A New Zealand person amended 1 April 2008 Income Tax Act 2007
22B: Certain New Zealand persons and overseas companies prohibited from holding out New Zealand connection
No New Zealand person or overseas company may hold out outside New Zealand that the person carries on a specified insurance business in New Zealand, or that the person is regulated by New Zealand law in respect of a specified insurance business, if the person does not carry on that specified insurance business in New Zealand. Sections 22A 22I inserted 22 November 2006 section 6 Insurance Companies' Deposits Amendment Act 2006 See section 8(1)
22C: Certain New Zealand persons and overseas companies prohibited from using certain words in their name
1: If a New Zealand person or overseas company does not carry on specified insurance business in New Zealand, the person cannot—
a: be formed, incorporated, or registered using a name or title that includes a restricted word; or
b: change the person's name or title to a name or title that includes a restricted word; or
c: carry on any activity directly or indirectly in New Zealand (whether through an agent or otherwise) using a name or title that includes a restricted word.
2: The restricted words are the following in any language:
a: insurance:
b: assurance:
c: underwriter:
d: re-insurance:
e: any term whose meaning is the same as, or similar to, that of any term in paragraphs (a) to (d) Sections 22A 22I inserted 22 November 2006 section 6 Insurance Companies' Deposits Amendment Act 2006 See section 8(2)
22D: Exception for certain insurance workers and industry associations
1: Sections 22B 22C
a: assists in issuing or administering policies, or in collecting premiums:
b: arranges, negotiates, solicits, or promotes contracts of insurance or the renewals of contracts of insurance (or both).
2: Sections 22B 22C Sections 22A 22I inserted 22 November 2006 section 6 Insurance Companies' Deposits Amendment Act 2006
22E: Exemption from section 22C granted by Secretary
1: The Secretary may issue exemptions from section 22C
a: will not be carrying on specified insurance business in New Zealand; and
b: has a legitimate reason to use the particular word in the person's name.
2: The Secretary may grant an exemption to a person or class of persons on any terms and conditions that the Secretary thinks fit.
3: As soon as practicable, the exemption must be notified in the Gazette
4: However, the Secretary may defer notifying or not notify the reasons for granting an exemption if the Secretary is satisfied that it is proper to do so on the ground of commercial confidentiality.
5: The Secretary may vary or revoke an exemption in the same way as an exemption may be granted under this section.
6: Each notice published in the Gazette Regulations (Disallowance) Act 1989 Acts and Regulations Publication Act 1989 Sections 22A 22I inserted 22 November 2006 section 6 Insurance Companies' Deposits Amendment Act 2006 Information gathering powers This heading was inserted 22 November 2006 section 6 Insurance Companies' Deposits Amendment Act 2006
22F: Secretary's powers of inspection
1: The Secretary, or a person authorised by the Secretary, may exercise any powers described in subsection (2)
a: ascertaining whether a person is complying or has complied with any of the requirements of this Act; or
b: detecting offences against this Act.
2: The powers are all or any of the following:
a: to require a person, including a person carrying on the business of banking, to produce for inspection relevant documents in that person's possession or control:
b: to inspect and take copies of relevant documents:
c: to take possession of relevant documents and remove them from the place where they are kept, and retain them for a reasonable time, for the purpose of taking copies:
d: to retain relevant documents for a period that is, in all the circumstances, reasonable if there are reasonable grounds for believing that they are evidence of the commission of an offence.
3: The Secretary, or a person authorised by the Secretary, must consult with the Reserve Bank of New Zealand before exercising any of the powers conferred by subsection (2) section 2(1) Reserve Bank of New Zealand Act 1989
4: A person must not obstruct or hinder the Secretary, or a person authorised by the Secretary, while the Secretary or authorised person is exercising a power conferred by subsection (2)
5: If any document is taken under this section, the person who takes it must prepare a written inventory of all documents so taken, and must—
a: leave the inventory at a prominent location at the place from which the document was taken; or
b: send the inventory to the occupier or the person in charge of that place, as the case may be, within 10 working days after taking the document.
6: Nothing in this section limits or affects the privilege against self-incrimination. 1993 No 105 s 365 Sections 22A 22I inserted 22 November 2006 section 6 Insurance Companies' Deposits Amendment Act 2006
22G: Disclosure of information and reports
1: Subsections (2) and (3) section 22F
a: obtained a document or information in the course of making an inspection under that section; or
b: prepared a report in relation to an inspection under that section.
2: The person must, if directed to do so by the Secretary, give the document, information, or report to—
a: the Secretary; or
b: any person authorised by the Secretary to receive the document, information, or report for the purposes of detecting offences against this Act; or
c: the Minister.
3: The person must not disclose the document, information, or report except—
a: in accordance with subsection (2)
b: with the consent of the person to whom it relates and with the approval of the Secretary; or
c: with the approval of the Secretary, for the purposes of this Act; or
d: to the extent that the information, or information contained in the document or report, is available under any Act or in a public document; or
e: in the course of criminal proceedings. 1993 No 105 s 366 Sections 22A 22I inserted 22 November 2006 section 6 Insurance Companies' Deposits Amendment Act 2006
22H: Application of Official Information Act 1982 and Privacy Act 1993
1: This section applies to—
a: the Minister; and
b: the Secretary or a delegate of the Secretary.
2: A person to whom this section applies may refuse to disclose a document, information, or a report in his or her possession obtained in making, or acquired as a result of, an inspection under section 22F
3: If a person requests disclosure of whether an inspection under section 22F Official Information Act 1982
a: the disclosure of that information would not be likely to prejudice the commercial position of any person; and
b: there is no other good reason for withholding that information under that Act.
4: Subsection (2) Official Information Act 1982 Privacy Act 1993 subsection (3) Official Information Act 1982 1993 No 105 s 367 Sections 22A 22I inserted 22 November 2006 section 6 Insurance Companies' Deposits Amendment Act 2006 Appeals This heading was inserted 22 November 2006 section 6 Insurance Companies' Deposits Amendment Act 2006
22I: Appeals from certain decisions
1: A person who is aggrieved by a refusal to disclose a document, information, or a report, or by anything done under any of sections 22F 22G 22H
2: On hearing the appeal, the High Court may confirm the refusal or the doing of the thing, or give any directions, or make any determination in the matter, as the Court thinks fit. 1993 No 105 s 368 Sections 22A 22I inserted 22 November 2006 6 Insurance Companies' Deposits Amendment Act 2006
23: In any action incorporation of company need not be proved
In any action or other proceedings it shall not be necessary to show that a company has been incorporated, but it shall be sufficient to show that the company is carrying on business or has agreed or acted by the style or description by which it is made a party to any action or other proceedings. 1921–22 No 40 s 12
24: Remuneration of
Public Trust Public Trust Public Trust Public Trust's Public Trust's Section 24 substituted 8 November 1974 section 11 Insurance Companies' Deposits Amendment Act 1974 The heading to section 24 amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust Public Trustee See clause 2 Public Trust Act Commencement Order 2002 Section 24 amended 1 March 2002 section 170(1) Public Trust Act 2001 by substituting the words Public Trust the Public Trustee The Public Trustee by substituting the words Public Trust's the Public Trustee's See clause 2 Public Trust Act Commencement Order 2002
25: Repeals and savings
1: The enactments specified in Schedule 3
2: Without limiting the provisions of the Acts Interpretation Act 1924
3: Every deposit held at the passing of this Act by the Public Trustee made by any person under the provisions of the Insurance Companies' Deposits Act 1921–22 Subsection (1) amended 6 December 1983 section 9 Insurance Companies' Deposits Amendment Act 1983 by substituting the number 3 2
26: Regulations
The Governor-General may, by Order in Council, make regulations for all or any of the following purposes:
a: prescribing fees and charges that the Secretary may require to be paid to the Secretary in connection with an application to the Secretary to grant or vary an exemption:
b: prescribing the amounts of those fees or charges or the method by which they are to be calculated. Section 26 inserted 22 November 2006 section 7 Insurance Companies' Deposits Amendment Act 2006