115APRA may direct removal of actuary

115 APRA may direct removal of actuary

When a direction may be given (1) APRA may, by written notice to a private health insurer, direct the insurer to terminate the appointment of a person as the appointed actuary of the insurer if APRA is satisfied that there is a ground under subsection (2) for giving the direction.

Note: Decisions to give directions under this section are reviewable under section 168.

(2) The grounds for giving a direction to terminate a person’s appointment are: (a) the person is disqualified from being or acting as an actuary of the private health insurer because of an order under section 120; or (b) the person is a disqualified person (other than only because of an order under section 120); or (c) the person is not a fit and proper person to hold the appointment; or (d) the person has failed to perform adequately and properly the person’s statutory functions and duties as an actuary of the insurer. Notice to be given before direction (3) Before directing a private health insurer to terminate a person’s appointment, APRA must: (a) give written notice to: (i) the insurer; and (ii) the person; and (b) give the insurer and the person a reasonable opportunity to make submissions on the matter. (4) The notice must include a statement that any submissions in response to the notice may be discussed by APRA with other persons as mentioned in paragraph (5)(b). (5) If a submission is made in response to the notice, APRA: (a) must have regard to the submission; and (b) may discuss any matter contained in the submission with any persons APRA considers appropriate for the purpose of assessing the truth of the matter. When a direction takes effect (6) A direction to terminate a person’s appointment takes effect on the day specified in the notice giving the direction, which must be at least 7 days after the day on which notice is given. Insurer and person to be given copy of direction (7) If APRA directs a private health insurer to terminate a person’s appointment, APRA must give the insurer and the person a copy of the direction. Offence (8) A private health insurer commits an offence if: (a) the insurer is given a direction under this section; and (b) the insurer fails to comply with the direction.

Penalty for contravention of this subsection: 30 penalty units.

Note: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.