A general insurer immediately notifies APRA in writing if it has contravened, or is going to contravene, an Act or prudential-standard provision that concerns its financial obligations to policyholders or its minimum capital requirements (s 38AA(1); offence, 200 penalty units under s 38AA(2)). A defence applies if the insurer learned of the breach from its auditor or actuary, was told they had already notified APRA, and had no reason to disbelieve them (s 38AA(3)). Separately, a general insurer, authorised NOHC or subsidiary that becomes aware of another breach that is or will be significant (judged by factors such as frequency and impact), or of a matter materially and adversely affecting its financial position, sends APRA a written report promptly, and no later than 10 business days afterward (s 38AA(4)-(5)).
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.