96APRA’s power to give directions

96 APRA’s power to give directions

(1) APRA may give a private health insurer a direction of a kind specified in section 97 if APRA reasonably believes that: (a) the insurer has contravened: (i) an enforceable obligation; or (ii) a provision of the Financial Sector (Collection of Data) Act 2001; or (b) the insurer: (i) is likely to contravene an enforceable obligation, or a provision referred to in subparagraph (a)(ii); and (ii) the contravention is likely to give rise to a prudential risk; or (c) the direction is necessary in the interests of policy holders, or prospective policy holders, of the insurer; or (d) the insurer is, or is about to become, unable to meet its liabilities; or (e) there is, or there might be, a material risk to the security of the insurer’s assets; or (f) there has been, or there might be, a material deterioration in the insurer’s financial condition; or (g) the insurer is conducting its affairs in an improper or financially unsound way; or (h) the failure to issue a direction would materially prejudice the interests of policy holders or prospective policy holders of the insurer; or (i) the insurer is conducting its affairs in a way that may cause or promote instability in the Australian private health insurance system.

Note: A decision to give a direction on a ground specified in paragraph (1)(a), (b) or (c) is reviewable under section 168.

(2) A direction must: (a) be given by written notice to the private health insurer; and (b) specify the ground referred to in subsection (1) because of which the direction is given.

Note: Two or more directions may be given in the same notice.

(3) A direction under subsection (1) may deal with the time by which, or period during which, it is to be complied with.