Insurance Amendment Act 20XX (DRAFT - Eligible Capital)

Summary

This is a draft, unfinished Bill (using a placeholder year and clearly incomplete template text) circulated by the BMA that would amend section 6 of the Insurance Act 1978 to introduce eligible capital requirements for certain insurer registration classes. It is a consultation draft only, not enacted law, and has no current legal effect.

• Section 6(1) amendment: Replaces the generic reference to 'a body' with a list of specific insurer classes: Class 1, Class 2, Class 3, Class 3A, long term, and Special Purpose insurers.
• New subsection (1A): Provides that the BMA shall not register a Class 3B or Class 4 insurer under section 4 unless satisfied that the insurer's available statutory capital and surplus exceeds a prescribed amount and meets a prescribed eligible capital limit.
• Commencement: The Act, once finalised and enacted, would come into operation on a day appointed by the Minister via notice in the Gazette, not automatically on passage.

Because this is a draft consultation bill with placeholder text (including an unrelated title fragment and a '20XX' year), it should be treated as indicative of the BMA's proposed direction on eligible capital for Class 3B and Class 4 insurers rather than a binding requirement.

Key obligations

• Once enacted, Class 3B and Class 4 insurers would need to demonstrate available statutory capital and surplus exceeding a prescribed amount and meeting a prescribed eligible capital limit before the BMA will register them.

Applies to

Class 1 insurers, Class 2 insurers, Class 3 insurers, Class 3A insurers, Class 3B insurers, Class 4 insurers, long term insurers, Special Purpose insurers

Deadlines

• such day as the Minister may appoint by notice published in the Gazette: Proposed commencement date of the Insurance Amendment Act, to be fixed later by ministerial notice

Related documents

• This document amends Insurance Act 1978