105LSuspension of licences

105L Suspension of licences

105L Suspension of licences

(1) The Authority may, by notice served on a licence holder, suspend the holder’s licence and the holder is thereby prohibited from entering into any building cover contracts after the date that is specified in the notice for the purpose.

(2) A licence holder who contravenes, whether by act or omission, the terms of any such notice is guilty of an offence.

Maximum penalty—1,000 penalty units.

(3) A suspension of a licensed insurer’s licence may be effected only if—

(a) subject to subsection (5), the insurer has contravened its licence or this Act or the regulations, or

(b) the insurer ceases to be a person who carries on insurance business within the meaning of the Insurance Act 1973 of the Commonwealth or to hold any authorisation under that Act that the person is required to hold, or

(c) a provisional liquidator, liquidator or official liquidator, or a receiver, receiver and manager, official manager or trustee, is appointed over all or any part of the assets or undertaking of the insurer, or

(d) the insurer is given a direction under Part IX of the Insurance Act 1973 of the Commonwealth or an inspector is appointed to investigate the affairs of the insurer under Part V of that Act, or

(e) after receiving a report under section 105Y, the Authority is of the opinion that the insurer is, or is likely to become, unable to meet its liabilities under this Act or under contracts of insurance under Part 6, or

(f) there is any default by the insurer in the payment of principal or interest in excess of $100,000 under any debenture, or series of debentures, issued by the insurer (except where the default occurs because the insurer genuinely disputes its liability to make the payment), or

(g) the insurer enters into, or resolves to enter into, any arrangement, composition or compromise with its creditors or any assignment for the benefit of its creditors, or proceedings are commenced to sanction any such arrangement, composition, compromise or assignment (except for the purposes of a reconstruction or amalgamation, on terms that have been approved by the Authority), or

(h) an application (other than a frivolous or vexatious application) or an order is made for the winding up or dissolution of the insurer or a resolution is passed for the winding up or dissolution of the insurer (except for the purposes of a reconstruction or amalgamation, on terms that have been approved by the Authority), or