16Prevention notices—price exploitation

16 Prevention notices—price exploitation

16 Prevention notices—price exploitation

(1) The Monitor may give an insurance company a written notice (a prevention notice) if the Monitor considers that giving the notice will aid the prevention of price exploitation.

(2) A prevention notice must—

(a) state the notice is given under this section, and

(b) specify the name of the insurance company to which the notice applies, and

(c) specify the regulated contract of insurance, or class of regulated contracts of insurance, to which the notice applies, and

(d) specify the detailed reasons for giving the notice and the matters to which the Monitor had regard in deciding whether to give the notice, and

(e) state the insurance company, within the reasonable time specified in the notice, must give the Monitor the information specified in the notice about the steps taken by the insurance company in response to the notice to prevent price exploitation.

(3) The Monitor must have regard to guidelines issued under section 20 in relation to price exploitation in deciding whether to give a prevention notice.

(4) The Monitor may vary or revoke a prevention notice on—

(a) the Monitor’s own initiative, or

(b) the application of the insurance company to which the notice was given.

(5) The Monitor must, within 3 days after varying or revoking a prevention notice, give written notice to the insurance company of the variation or revocation.

(6) An insurance company given a prevention notice must comply with the notice.

Maximum penalty for subsection (6)—100 penalty units.