394DImposing financial penalties

394D Imposing financial penalties (1) The MAI commission may impose a financial penalty on a licensed insurer if the commission— (a) has given the insurer a show cause notice; and

Financial penalties Part 7.6A (b) has considered any written submission given by the insurer in accordance with section 394C (2) (d); and (c) has considered the matters prescribed by regulation; and (d) is satisfied that— (i) a ground for financial penalty exists in relation to the (ii) the imposition of the financial penalty is— (A) in the public interest; and (B) appropriate taking into account the nature of the (2) A financial penalty must not be more than— (a) for a minor contravention—$20 000; or (b) for a serious contravention—$100 000. (3) If the MAI commission imposes a financial penalty on a licensed insurer, the commission must give the insurer a notice (a financial penalty notice) stating— (a) that the commission has decided to impose a financial penalty on the insurer; and (b) the amount of the financial penalty; and (c) the grounds on which the penalty is being imposed; and (d) that the notice is a financial penalty notice under this section; and (e) for a serious contravention—that the insurer may request a mediation under section 394E if the insurer disagrees with the financial penalty; and (f) that the penalty must be paid to the MAI commission in accordance with section 394F.

show cause notice—see section 394C (2).