Undertaking to Emergency Services Levy Insurance Monitor

Given under section 31H of the Emergency Services Levy Insurance Monitor Act 2016 [‘the Act’] by [Company and ACN].

  1. Parties
  2. Person(s) giving the Undertaking:

This Undertaking is given to the Emergency Services Levy Insurance Monitor (“the Monitor”) by:

[Company name]

ACN [insert ACN]

[Address of Registered office]—

(“the Company”). For the purposes of section 31H of the Act, with respect to the resolution of an over-collection amount, assessed by the Monitor and accepted by the company as [$####] relating to:

1.2.the final 2 years of the emergency services funding scheme, being the scheme for funding certain fire and emergency services from contributions required to be paid by insurance companies under the following provisions, as in force before the enactment of the Fire and Emergency services Levy Act 2017:

  • Part 5 of the Fire Brigades Act 1989;
  • Part 5 of the Rural Fires Act 1997; and
  • Part 5A of the State Emergency Service Act 1989.

[Or]

the transition period, being the financial years commencing on 1 July in 2017 and 2018.

  1. Background
  2. The Monitor is the person, appointed under section 5 of the Act to oversee and monitor emergency services levy reform. The functions of the Monitor under section 9(2) include to:

“(a)provide information, advice and guidance in relation to the emergency services levy reform and prohibited conduct,

(b)monitor prohibited conduct and compliance with this Act and the regulations,

(c)monitor prices for the issue of regulated contracts of insurance,

(d)monitor the impact of the emergency services levy reform on the insurance industry and levels of insurance coverage,

(e)prepare and publish guidelines relating to the operation and enforcement of this Act and the regulations,

(f)receive complaints about prohibited conduct and to deal with them in accordance with this Act, and

(g)investigate and institute proceedings in respect of prohibited conduct or any contravention of this Act or the regulations.”

2.2.[Description of the nature and extent of the over-collection amount revealed by the Monitor’s investigation]

2.3.Explanation of why the Monitor considers that there has been an over-collection amount for which the company is liable

2.4.Response from the company - for example: In response to the Monitor’s investigation, Company has:

2.4.1.[admitted] [acknowledged] that there has been an over collection amount, and that the insurance company is liable for the over-collection amount, and that the insurance company will refund the whole or a part of the over-collection amount and,

2.4.2.offered this Undertaking to the Monitor.

  1. Commencement of this Undertaking
  2. This enforceable undertaking comes into effect when:
  3. this enforceable undertaking is executed by [Insurance Company], and
  4. this enforceable undertaking so executed is accepted by the Monitor

(the Commencement Date).

  1. Undertaking
  2. [Company] undertakes for the purposes of section 35 of the Act that:
  3. it will not, in trade or commerce, [to be agreed]
  4. that it will: [to be agreed]

[If inclusion of compliance program obligations is required, insert here in the following format:

4.1.3.develop, update and implement a Compliance Management System (CMS) designed to minimise the company’s risk of future contraventions of [INSERT: relevant sections or parts of the Act] and to ensure its awareness of the responsibilities and obligations in relation to the requirements of [INSERT: relevant sections or parts of the Act] within # months of the date of this Undertaking coming into effect;

4.1.4.maintain and continue to implement the CMS for a period of # years from the date of this Undertaking coming into effect, and

4.1.5.provide, at its own expense, a copy of any documents reasonably required by the Monitor for the purposes of monitoring compliance with the terms of the undertaking.

  1. Acknowledgements
  2. [Insurance Company] acknowledges that:
  3. the Monitor will make this enforceable undertaking publicly available including by publishing it on the Monitor’s public register of enforceable undertakings on its website;
  4. the Monitor will, from time to time, make public reference to this enforceable undertaking including in news media statements and in Monitor publications;
  5. this undertaking in no way derogates from the rights and remedies available to any other person arising from the alleged conduct, and
  6. a summary of any Compliance Program review reports, conducted by the Monitor, may be held with this undertaking in the Monitor’s public register.

  1. Executed as an undertaking

Executed by [insert full name of Company] [insert ACN] pursuant to section 127(1) of the Corporations Act 2001 by:

Signature of director / Signature of a director/company secretary (delete as appropriate, or entire column if sole director company)
Name of director (print) / Name of director/company secretary (print)
Date / Date

Accepted by the Monitor pursuant to section 35 of the Act on:

Date

Signed by the Monitor:

Prof. Allan Fels AO
Date