Further provisions of the Insurance (Prudential Supervision) Act will come into force on 2 February 2011 under the Insurance (Prudential Supervision) Act Commencement Order (No 2) 2010. These include provisions relating to:
- the licensing of insurers and transitional provisions relating to the issuing of provisional licences. The provisions include requirements for fit and proper policies and risk management programmes that must be provided when a person applies for a licence;
- the prudential supervision of insurers by the Reserve Bank of New Zealand (for example, provisions that relate to the supply of information and investigations);
- distress management (for example, provisions that relate to recovery plans and the powers to give directions);
- an offence of making a false declaration or representation for any purpose relating to the Act;
- the restriction on a licensed insurer's constitution in section 221 of the Act;
- the power of a District Court to ban certain persons from participating in insurance business; and
- the transitional power in section 243 of the Act (which allows the Reserve Bank to approve transfers of insurance business between insurers).
Other provisions of the Act will come into force at later dates (to be appointed by one or more Orders in Council). For example, it is anticipated that:
- the provisions relating to statutory funds will come into force on or about 30 June 2011; and
- the main requirement to be licensed in section 15 of the Act will come into force on or about 7 March 2012. Also, various enactments that are replaced by the Act will be repealed at that time (including the Insurance Companies' Deposits Act 1953, the Insurance Companies (Ratings and Inspections) Act 1994, and Parts 1 and 1A of the Life Insurance Act 1908).