Commonwealth Consolidated Acts

LIFE INSURANCE ACT 1995 - SECT 245

             (1)  For the purposes of this Act, a person is a disqualified person if, at any time:

                     (a)  the person has been convicted of an offence against this Act or the Life Insurance Act 1945 ; or

                     (b)  the person has been convicted of an offence against any other law of the Commonwealth or a law of a State, a Territory or a foreign country, being an offence in respect of:

                              (i)  conduct relating to insurance; or

                             (ii)  dishonest conduct; or

                     (c)  the person has:

                              (i)  become bankrupt; or

                             (ii)  applied to take the benefit of a law for the relief of bankrupt or insolvent debtors; or

                            (iii)  compounded with his or her creditors; or

                     (d)  the Federal Court of Australia has disqualified the person under section 245A.

             (2)  A person commits an offence if:

                     (a)  the person is a disqualified person; and

                     (b)  the person is or acts as:

                              (i)  a director of a company, or body corporate, registered under this Act; or

                             (ii)  a principal executive officer of a company, or body corporate, registered under this Act; or

                            (iii)  an appointed actuary of a company registered under section 21; or

                            (iv)  an auditor of a company, or body corporate, registered under this Act; and

                     (c)  for a person who is a disqualified person only because he or she was disqualified under section 245A--the person is disqualified from being or acting as that director, principal executive officer, actuary or auditor (as the case requires).

Penalty:  Imprisonment for 2 years.

             (3)  A person commits an offence if:

                     (a)  the person is a disqualified person; and

                     (b)  the person is or acts as:

                              (i)  a director of a company, or body corporate, registered under this Act; or

                             (ii)  a principal executive officer of a company, or body corporate, registered under this Act; or

                            (iii)  an appointed actuary of a company registered under section 21; or

                            (iv)  an auditor of a company, or body corporate, registered under this Act; and

                     (c)  for a person who is a disqualified person only because he or she was disqualified under section 245A--the person is disqualified from being or acting as that director, principal executive officer, actuary or auditor (as the case requires).

Penalty:  60 penalty units.

             (4)  Subsection (3) is an offence of strict liability.

Note:          For strict liability , see section 6.1 of the Criminal Code .

             (5)  A company or body corporate commits an offence if:

                     (a)  the company or body corporate is registered under this Act; and

                     (b)  a person is a disqualified person; and

                     (c)  the person is or acts as:

                              (i)  a director of the company or body corporate; or

                             (ii)  a principal executive officer of the company or body corporate; or

                            (iii)  an appointed actuary of the company; or

                            (iv)  an auditor of the company or body corporate; and

                     (d)  for a person who is a disqualified person only because he or she was disqualified under section 245A--the person is disqualified from being or acting as that director, principal executive officer, actuary or auditor (as the case requires); and

                     (e)  in any case--the company or body corporate allows the person to be or act as a director, principal executive officer, actuary or auditor (as the case requires).

Penalty:  250 penalty units.

          (5A)  A company or body corporate commits an offence if:

                     (a)  the company or body corporate is registered under this Act; and

                     (b)  a person is a disqualified person; and

                     (c)  the person is or acts as:

                              (i)  a director of the company or body corporate; or

                             (ii)  a principal executive officer of the company or body corporate; or

                            (iii)  an appointed actuary of the company; or

                            (iv)  an auditor of the company or body corporate; and

                     (d)  for a person who is a disqualified person only because he or she was disqualified under section 245A--the person is disqualified from being or acting as that director, principal executive officer, actuary or auditor (as the case requires); and

                     (e)  in any case--the company or body corporate allows the person to be or act as a director, principal executive officer, actuary or auditor (as the case requires).

Penalty:  60 penalty units.

          (5B)  Subsection (5A) is an offence of strict liability.

Note:          For strict liability , see section 6.1 of the Criminal Code .

             (6)  A failure to comply with this section does not affect the validity of an appointment or transaction.

             (7)  A reference in subsection (1) to a person who has been convicted of an offence includes a reference to a person in respect of whom an order has been made under section 19B of the Crimes Act 1914 , or under a corresponding provision of a law of a State, a Territory or a foreign country, in relation to the offence.

             (8)  In this section:

"director" , in relation to a life company that is an eligible foreign life insurance company, means a member of the Compliance Committee of the company.