Financial Sector Legislation Amendment (Discretionary Mutual Funds and Direct Offshore Foreign Insurers) Act 2007 (149 of 2007)

Schedule 2   Amendments commencing on 1 July 2008

Insurance Act 1973

6   At the end of section 3

Add:

(5) Without limiting the scope of what is incidental to insurance business for the purposes of the definition of insurance business in subsection (1), a business of a person is taken, for the purposes of that definition, to be a business incidental to insurance business to the extent that it involves one or more of the following kinds of acts:

(a) inducing others to enter into contracts of insurance with the person as the insurer;

(b) publishing or distributing a statement relating to the person's willingness to enter into a contract of insurance as an insurer;

(c) procuring the publication or distribution of such a statement.

(6) Without limiting the circumstances in which a person is taken, for the purposes of this Act, to carry on insurance business in Australia, a person is taken to carry on insurance business in Australia if:

(a) the person carries on a business outside Australia that, under this Act, would constitute insurance business if it were carried on in Australia; and

(b) another person in Australia acts:

(i) directly or indirectly on behalf of the first-mentioned person; or

(ii) as a broker of insurance provided by the first-mentioned person, or directly or indirectly on behalf of such a broker;

in relation to the business carried on outside Australia.

(7) In considering for the purposes of this Act whether a person carries on insurance business in Australia, an act of a kind referred to in paragraph (5)(a), (b) or (c) done outside Australia is taken to occur in Australia to the extent that it has, or is likely to have, its effect in Australia.