Document ID: chunk:federal_register_of_legislation:C2025C00157:section:62zoa:p1
Version: federal_register_of_legislation:C2025C00157
Segment Type: section
Provision Reference: s 62ZOA (pt 1/3)
Character Range: 225280–228009

62ZOA  Consequences of inability or failure of general insurer etc. to meet certain requirements

Appointment of administrator or control by APRA
 (1) APRA may take control of a general insurer's business or appoint an administrator to take control of the general insurer's business if both of the following requirements are met:
 (a) APRA is satisfied of the matters of which the Federal Court is required to be satisfied for the purposes of section 62L or 62M;
 (b) subsection (2) applies.
 (2) This subsection applies if APRA is satisfied that at least one of the following situations exists:
 (a) both:
 (i) an AFS statutory manager has taken control of a body corporate under this Act, the Banking Act 1959 or the Life Insurance Act 1995 (or APRA intends for that to occur); and
 (ii) the general insurer and the body corporate are related bodies corporate;
 (b) both:
 (i) the general insurer's financial position is deteriorating rapidly, or is likely to deteriorate rapidly; and
 (ii) failure to respond quickly to the deterioration would be likely to prejudice the interests of policyholders of the insurer;
 (c) it is likely that the insurer will be unable to carry on insurance business in Australia consistently with the stability of the financial system in Australia;
 (d) an external administrator has been appointed to a holding company of the general insurer (or a similar appointment has been made in a foreign country in respect of such a holding company), and the appointment poses a significant threat to:
 (i) the operation or soundness of the general insurer; or
 (ii) the interests of policyholders of the general insurer; or
 (iii) the stability of the financial system in Australia;
 (e) if the general insurer is a foreign general insurer:
 (i) an application for the appointment of an external administrator of the foreign general insurer, or for a similar procedure in respect of the foreign general insurer, has been made in a foreign country; or
 (ii) an external administrator has been appointed to the foreign general insurer, or a similar appointment has been made in respect of the foreign general insurer, in a foreign country.
 (3) APRA may take any of the actions mentioned in subsection (4) in relation to a body corporate (the target body corporate) if:
 (a) the target body corporate is a body corporate that is any of the following:
 (i) an authorised NOHC of a general insurer (the relevant general insurer);
 (ii) a subsidiary of an authorised NOHC of a general insurer (also the relevant general insurer);
 (iii) a subsidiary of a general insurer (also the relevant general insurer); and
 (b) the condition in subsection (5), (6) or (7) is satisfied; and
 (c) the target body corporate