Document ID: chunk:federal_register_of_legislation:C2005C00502:clause:1_17:p2
Version: federal_register_of_legislation:C2005C00502
Segment Type: clause
Provision Reference: sch 1 cl 17 (pt 2/2)
Character Range: 20345–21791

first general insurer from the second general insurer.

 (5) If APRA approves an assignment, the general insurer must:
 (a) comply with the conditions on the approval; and
 (b) give reasonable notice (in writing) of the assignment to the insurer's policyholders; and
 (c) give APRA such written evidence of the assignment as APRA reasonably requires.

 (6) An assignment of liabilities under this section may include the assignment of any rights or benefits in connection with contracts of insurance in respect of the insurance business carried on in Australia by the general insurer concerned.

 (7) A direction under subsection (1) has effect despite anything in the Insurance Acquisitions and Takeovers Act 1991.

 (8) A general insurer commits an offence if:
 (a) the insurer does, or fails to do, an act; and
 (b) by doing or failing to do the act, the insurer fails to comply with a direction under this section.

Maximum penalty: 60 penalty units.

 (9) An offence against subsection (8) is an offence of strict liability.

Note 1: For strict liability, see section 6.1 of the Criminal Code.

Note 2: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 3: If a body corporate is convicted of an offence against this section, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty above.

Division 3A—Transfer and amalgamation of insurance business