{"id":"F2010L02502","name":"Insurance (Financial Claims Scheme for General Insurers—Australian Family Assurance Limited) Declaration 2009","slug":"insurance-financial-claims-scheme-for-general-insurers-australian-family-assurance-limited-declarati","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":84428,"registerId":"commonwealth-F2010L02502-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Name","content":"#### 1 Name\n\n  This instrument is the Insurance (Financial Claims Scheme for General Insurers—Australian Family Assurance Limited) Declaration 2009.\n\n> Note: The name of this instrument has been amended. This instrument was previously named the Declaration that Division 3 of Part VC of the Insurance Act 1973 applies to AFA Pty Ltd.","sortOrder":0},{"sectionNumber":"1A","sectionType":"section","heading":"Authority","content":"#### 1A Authority\n\n  This instrument is made under the Insurance Act 1973.","sortOrder":1},{"sectionNumber":"1B","sectionType":"section","heading":"Definitions","content":"#### 1B Definitions\n\nNote: Expressions have the same meaning in this instrument as in the Insurance Act 1973 as in force from time to time—see paragraph 13(1)(b) of the Legislation Act 2003.\n\n  In this instrument:\n\n> ABN has the meaning given by the A New Tax System (Australian Business Number) Act 1999.\n\n> the Act means the Insurance Act 1973.","sortOrder":2},{"sectionNumber":"2","sectionType":"section","heading":"Declaration of general insurer","content":"#### 2 Declaration of general insurer\n\n  Under subsection 62ZZC(1) of the Act, Division 3 of Part VC of the Act is declared to apply in relation to Australian Family Assurance Limited (ABN 78 003 044 862).","sortOrder":3},{"sectionNumber":"3","sectionType":"section","heading":"Amount credited to Financial Claims Scheme Special Account","content":"#### 3 Amount credited to Financial Claims Scheme Special Account\n\n  For the purposes of subsection 62ZZC(2) of the Act, the following amount is to be credited to the Financial Claims Scheme Special Account in connection with the application of Division 3 of Part VC of the Act in relation to Australian Family Assurance Limited: $1,531,558.92.\n\n> Note 1: Where an amount specified to be credited to the Financial Claims Scheme Special Account has been later reduced, by way of an amendment, an amount equal to the reduction must be debited from the Special Account—see section 54D of the Australian Prudential Regulation Authority Act 1998.\n\n> Note 2: In 2024, this section was amended to reduce the amount to be credited to the Financial Claims Scheme Special Account.","sortOrder":4},{"sectionNumber":"4","sectionType":"section","heading":"Amount credited to the APRA Special Account","content":"#### 4 Amount credited to the APRA Special Account\n\n  For the purposes of subsection 62ZZC(3) of the Act, the following amount is to be credited to the APRA Special Account in connection with the administration of Part VC of the Act in relation to Australian Family Assurance Limited: $490,000.","sortOrder":5}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This instrument has not expanded beyond its original purpose. It was always intended as a specific, one-off declaration for a single failed insurer (originally AFA Pty Ltd, later renamed Australian Family Assurance Limited). The 2024 amendment merely reduced the specified amounts to reflect actual costs, and the name change tracked the company's renaming. The scope remains tightly confined to this single corporate failure."},"complexity_factors":["Extremely short: only 4 substantive sections plus naming/authority provisions","Minimal defined terms: only 2 definitions (ABN and 'the Act')","No cross-references beyond the single empowering provision (subsection 62ZZC(1)) and incidental references to other Acts","No conditional logic or exceptions — purely declaratory and monetary specification","Single subject matter: one specific failed insurer with fixed dollar amounts","Straightforward structure: name, authority, definitions, declaration, two monetary provisions"],"plain_english_summary":"This declaration activates Australia’s Financial Claims Scheme for the failed insurer Australian Family Assurance Limited, providing emergency protection so policyholders can still claim their entitlements. It also allocates government funds into special accounts—$1,531,558.92 for claim payments and $490,000 for APRA’s administration.\n\nIt matters because taxpayers backstop the scheme, preventing insured individuals and businesses from losing premiums when an insurer collapses."},"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":true,"description":"The core declaration that Division 3 of Part VC applies to AFA remains unchanged (s2). However, the instrument’s form and financial effect were altered: the instrument name was amended (note to s1) and the amount credited to the Financial Claims Scheme Special Account was later reduced (note to s3, referencing a 2024 amendment). These changes adjust the monetary allocation without altering the declaration’s statutory reach."},"complexity_factors":["Short instrument with four operative provisions (ss1–4) and two declaratory notes","Direct application of an existing statutory regime (Division 3 of Part VC of the Insurance Act) rather than new rules (s2)","Fixed monetary instructions reduce discretionary complexity (ss3–4)","Cross-references to other legislation and administrative mechanisms (Insurance Act 1973 authority, note referring to s54D of the APRA Act)","Amendment history affects amounts and the instrument name (notes to s1 and s3) — requires checking later amendments to know current figures"],"plain_english_summary":"This instrument applies Division 3 of Part VC of the Insurance Act 1973 (the Financial Claims Scheme) to Australian Family Assurance Limited (AFA) (s2). It requires specified sums be credited to two APRA-held accounts: $1,531,558.92 to the Financial Claims Scheme Special Account (s3) and $490,000 to the APRA Special Account for administration (s4); the instrument is made under the Insurance Act (s1A)."}},"importantCases":[],"_links":{"self":"/api/acts/insurance-financial-claims-scheme-for-general-insurers-australian-family-assurance-limited-declarati","history":"/api/acts/insurance-financial-claims-scheme-for-general-insurers-australian-family-assurance-limited-declarati/history","analysis":"/api/acts/insurance-financial-claims-scheme-for-general-insurers-australian-family-assurance-limited-declarati/analysis","conflicts":"/api/acts/insurance-financial-claims-scheme-for-general-insurers-australian-family-assurance-limited-declarati/conflicts","importantCases":"/api/acts/insurance-financial-claims-scheme-for-general-insurers-australian-family-assurance-limited-declarati/important-cases","documents":"/api/acts/insurance-financial-claims-scheme-for-general-insurers-australian-family-assurance-limited-declarati/documents"}}