Part 3 How is duty paid by an insurer?

247   Who is an insurer?

(1)  An insurer is a life company that writes life insurance or a general insurer.

(2)  A general insurer is a person:

(a)  who writes general insurance, and

(b)  who does so otherwise than as an insurance intermediary, and

(c)  who is authorised as a general insurer under the Commonwealth Insurance Act 1973.

Note. Life company and insurance intermediary are defined in the Dictionary.

248   Insurers must be registered

An insurer must be registered under this Part.

Maximum penalty: 100 penalty units.

Note. An offence against this section committed by a corporation is an executive liability offence attracting executive liability for a director or other person involved in the management of the corporation—see section 121 of the Taxation Administration Act 1996.

249   Application for registration

The Chief Commissioner must register an insurer who applies in the approved form for registration under this Part.

250   Cancellation of registration by the Chief Commissioner

(1)  The Chief Commissioner may, by written notice, cancel an insurer’s registration under this Part:

(a)  if the insurer’s authorisation under the Insurance Act 1973 of the Commonwealth is revoked, or

(b)  if the insurer is made bankrupt or, being a company, is wound up, or

(c)  if the insurer is convicted of an offence under an Act imposing duty, or

(d)  if the insurer’s registration was made in error or as a consequence of a false or misleading statement made in relation to the application for registration, or

(e)  if the Chief Commissioner is of the opinion that the insurer has ceased to write general insurance in New South Wales, or

(f)  if the insurer ceases to be a life company, or

(g)  for any other reason the Chief Commissioner thinks sufficient.

(2)  A cancellation of registration has effect from the date specified for the purpose by the Chief Commissioner in the notice of cancellation.

251   Cessation of business and cancellation of registration by the insurer

(1)  A registered insurer who ceases to write insurance business in New South Wales must:

(a)  give written notice of that fact to the Chief Commissioner, and

(b)  lodge the return required to be lodged under this Part, and

(c)  pay the duty payable in connection with the return on or before the twenty-first day of the month after which the notice is given.

Maximum penalty: 100 penalty units.

Note. An offence against subsection (1) committed by a corporation is an executive liability offence attracting executive liability for a director or other person involved in the management of the corporation—see section 121 of the Taxation Administration Act 1996.

(2)  The notice cancels the insurer’s registration under this Part on the day on which it is received by the Chief Commissioner.

252   Register of insurers

(1)  The Chief Commissioner must keep a register of the insurers who are registered under this Part.

(2)  Anyone may inspect the register without charge at the Chief Commissioner’s principal office during the hours that the office is open to the public.

253   Monthly returns and payment of duty

A registered insurer must, on or before the twenty-first day of each month:

(a)  lodge with the Chief Commissioner a return in the approved form showing:

(i)  the total amount of all premiums for Type A insurance paid to the registered insurer in the preceding month, and

(ii)  the total amount of all premiums for Type B insurance paid to the registered insurer in the preceding month, and

(iii)  the total amount of all premiums for Type C insurance paid to the registered insurer in the preceding month, and

(iv)  the total duty payable on policies of life insurance other than temporary or term insurance effected in the preceding month, and

(v)  the total amount of all first year’s premiums for temporary or term life insurance received by or on behalf of the registered insurer in the preceding month, and all additional premiums referred to in section 243 (2A) (b) (other than premiums for insurance that is exempt from duty by Part 5), and

(vi)  the total amount of all first year’s premiums for life insurance riders received by or on behalf of the registered insurer in the preceding month (other than premiums for insurance that is exempt from duty by Part 5), and

(b)  pay to the Chief Commissioner as duty the amounts determined in accordance with sections 234 and 243.

254   Recovery of duty by registered insurer

(1)  A registered insurer may require a person by whom a premium is payable to the insurer to pay the insurer an amount equal to the duty chargeable.

(2)  The requirement is duly made if it is contained in a written request that is given to the person and that specifies the amount of the duty.

(3)  If the amount is not paid, the insurer may recover it as a debt.