American Home Assurance Company, in the matter of American Home Assurance Company [2010] FCA 1499

FEDERAL COURT OF AUSTRALIA

American Home Assurance Company, in the matter of American Home Assurance Company [2010] FCA 1499 Citation: American Home Assurance Company, in the matter of American Home Assurance Company [2010] FCA 1499

Parties: AMERICAN HOME ASSURANCE COMPANY

File number(s): NSD 1244 of 2010

Judge: EMMETT J

Date of judgment: 10 November 2010

Legislation: Insurance Act 1973 (Cth) s 17C

Date of hearing: 10 November 2010

Place: Sydney

Division: GENERAL DIVISION

Category: No catchwords

Number of paragraphs: 14

Counsel for the Applicant: I.M. Jackman SC

Solicitor for the Applicant: Allens Arthur Robinson

Counsel for the Australian Prudential Regulation Authority: D. Sun

IN THE FEDERAL COURT OF AUSTRALIA NEW SOUTH WALES DISTRICT REGISTRY GENERAL DIVISION NSD 1244 of 2010

IN THE MATTER OF AMERICAN HOME ASSURANCE COMPANY AMERICAN HOME ASSURANCE COMPANY

JUDGE: EMMETT J DATE OF ORDER: 10 NOVEMBER 2010 WHERE MADE: SYDNEY

THE COURT ORDERS THAT:

1. In relation to the proposed scheme for the transfer of the insurance business carried on by the Australian branch of American Home Assurance Company (AHAC) to Chartis Australia Insurance Limited (CAIL), the need for the applicant to comply with s 17C(2)(c) of the Insurance Act 1973 (Cth) (the Act) is dispensed with provided that the applicant complies with paragraphs 2, 3 and 4 below. 2. In relation to the scheme, the applicant cause a copy of the summary of the scheme approved by the Australian Prudential Regulation Authority (the Approved Summary) to be sent by pre-paid post to: Policyholders of current booked policies (a) All policyholders of a current booked policy issued by the applicant, as identified in the list referred to in paragraph 98(b) of the affidavit of Matthew Everingham (the Everingham Affidavit), and for which the applicant has an address on record, to the most recent address identified in the verification process referred to in paragraph 100 of the Everingham Affidavit; Policyholders with open claims (b) All policyholders of the applicant that have a reported claim relating to insurance policies issued by the applicant, as identified in the report as generated from the AEGIS system and referred to in paragraph 64 of the Everingham Affidavit, and for which the applicant has an address on record, to the most recent address disclosed on the applicant's records; Policyholders with expired policies (c) Those policyholders of expired policies issued by the applicant that are listed in the "Expired Policyholder Notification List" referred to in paragraph 20 of the affidavit of Ian Reed (the Reed Affidavit) and paragraph 88(b) of the Everingham Affidavit, for which the applicant has an address on record, to the most recent address identified in the verification process referred to in paragraph 100 of the Everingham Affidavit; Voluntary Group Accident Employee Insurance (d) Each employer sponsor of the Voluntary Group Accident Employee class of insurance as identified in the report referred to in paragraph 37 of the Everingham Affidavit, and for which the applicant has an address on record, to the most recent address disclosed on the applicant's records; eTravel (e) The third party administrators iTrek and Insure&Go of the eTravel class of business identified in paragraph 48 of the Everingham Affidavit, and request that those organisations provide a copy of the Approved Summary to all holders of current policies issued by the applicant that were written through such organisation; Casualty Bulk booked scheme business (f) Each agent in relation to the Casualty Lines bulk booked scheme business identified in paragraph 72 of the Everingham Affidavit and in respect of which the applicant does not hold policyholder names and address details in its ALPS and AEGIS system and request that each such agent provide a copy of the Approved Summary to all holders of current policies issued by the applicant that were written through each bulk booked scheme as managed by the agent; Aon Scheme (g) To each of Aon Australia and ACE Insurance Ltd and subject to the consent of ACE Insurance Ltd, to any other agent in respect of the Aon Scheme as identified by the applicant and referred to in paragraphs 78 and 79 of the Everingham Affidavit; Corporate Partner Programs (h) Each of the 6 corporate partners referred to in paragraph 82 of the Everingham Affidavit with which the applicant has insurance agreements as part of its corporate partner programs, and request that each such corporate partner create a section on its website linking to a copy of the Approved Summary up until the effective date of the scheme. 3. In relation to the scheme, the applicant cause a copy of the Approved Summary to be sent by email to those policyholders of: (a) eTravel policies issued by the applicant identified in paragraph 49 of the Everingham Affidavit; (b) Policies issued under the Insurance Made Easy for Travel Agents bulk booked scheme as identified in paragraph 71 of the Everingham Affidavit; and (c) Policies of reinsurance as identified in paragraph 66(e) of the Everingham Affidavit and for which the applicant has an email address on record, to the most recent email address disclosed on the applicant's records. 4. In relation to the scheme, the applicant cause a copy of: (a) The Approved Summary; (b) The Scheme document; (c) The notice of intention to apply to the Court; and (d) The actuarial report to be made available via a link on the Australian website of Chartis, being www.chartisinsurance.com.au. 5. The applicant pay the costs of the Australian Prudential Regulatory Authority of this motion as taxed or agreed. 6. These orders be entered forthwith. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules. The text of entered orders can be located using Federal Law Search on the Court's website.