Document ID: chunk:federal_register_of_legislation:C2005C00502:clause:1_116a:p1
Version: federal_register_of_legislation:C2005C00502
Segment Type: clause
Provision Reference: sch 1 cl 116A (pt 1/2)
Character Range: 86825–89446

116A  Assets and liabilities in Australia

 (1) For the purposes of section 28 (General insurer must hold sufficient assets), an amount is taken to be an asset in Australia of a general insurer if:
 (a) the insurer expects to recover the amount under a contract of reinsurance entered into with a person who is outside Australia; and
 (b) the amount relates to claims in respect of liabilities in Australia of the insurer, whether or not the claims have been paid by the insurer; and
 (c) under the terms of the contract, payments by way of reinsurance are to be made in Australia.

 (2) For the purposes of section 116 (General insurer not to carry on insurance business after start of winding up) and section 28, a liability is taken to be a liability in Australia of a general insurer if it is undertaken by the insurer under a contract of insurance (including reinsurance) made in Australia or in respect of which a proposal was accepted or a policy issued in Australia, other than a contract:
 (a) that relates only to a liability contingent on an event that can happen only outside Australia, not being a liability that the body corporate has undertaken to satisfy in Australia; or
 (b) if the insurer carries on insurance business both in and outside Australia—that relates only to a liability that the insurer has undertaken to satisfy outside Australia.

 (3) For the purposes of section 28, a liability is also taken to be a liability in Australia of a general insurer if it is undertaken by the insurer under a contract of insurance (including reinsurance) made outside Australia or in respect of which a proposal was accepted or a policy issued outside Australia, if the contract:
 (a) relates to a liability contingent on an event that can happen only in Australia; or
 (b) if the insurer carries on insurance business both in and outside Australia—relates to a liability that the insurer has undertaken to satisfy in Australia;
and any part of the negotiations or arrangements leading to the making of the contract, the acceptance of the proposal or the issue of the policy took place or were made in Australia.

 (4) For the purposes of section 116 and section 28, unless the contrary intention appears, a reference to liabilities of a body corporate includes a reference to provision for liabilities made in its accounts, or directed in accordance with section 49M to be made, but does not include:
 (a) a liability in respect of share capital; or
 (b) where the body corporate is registered under the Life Insurance Act 1995, a liability that is, in accordance with that Act:
 (i) referable to a class of