12Obtaining an authorisation

#### 12 Obtaining an authorisation (1) A body corporate may apply in writing to APRA for an authorisation to carry on insurance business in Australia. > Note: The body corporate may also need to consider the implications of the Foreign Acquisitions and Takeovers Act 1975, the Financial Sector (Shareholdings) Act 1998 and the Insurance Acquisitions and Takeovers Act 1991. (1A) APRA may require the body corporate to provide a statutory declaration in relation to information or documents provided in relation to the application. (1B) APRA may, by legislative instrument, set criteria for the authorisation of a body corporate to carry on insurance business in Australia. (2) APRA may authorise an applicant to carry on insurance business in Australia. The authorisation must be in writing. (3) Without limiting the circumstances in which APRA may refuse an application, APRA may refuse an application if the applicant is a subsidiary of another body corporate that is not an authorised NOHC. (3A) Without limiting the circumstances in which APRA may refuse an application, APRA must refuse an application if: (a) an arrangement under which medical indemnity cover is provided for a health care professional was entered into before 1 July 2003; and (b) the arrangement was not effected by means of a contract of insurance; and (c) the applicant may pay, or may have to pay, an amount under the arrangement at some time after the time when the application is made. Expressions used in paragraph (a) have the same meaning as they have in the Medical Indemnity (Prudential Supervision and Product Standards) Act 2003. > Note 1: This means that an applicant that is an MDO (medical defence organisation) that entered into discretionary medical indemnity arrangements before 1 July 2003 cannot be granted an authorisation under this section while amounts remain potentially payable by the applicant under those arrangements. > Note 2: All medical indemnity arrangements (arrangements under which medical indemnity cover is provided for health care professionals) that are entered into, come into effect or are renewed on or after 1 July 2003 must be by way of contracts of insurance (see section 10 of the Medical Indemnity (Prudential Supervision and Product Standards) Act 2003). (4) If APRA authorises an applicant, APRA must: (a) give written notice to the applicant; and (b) ensure that notice of the authorisation is published in the Gazette. (5) The taking of an action is not invalid merely because of a failure to comply with subsection (4). (6) Part VI applies to a refusal of APRA to authorise an applicant under this section.