This Act may be cited as the State Insurance Act 1963.

In this Act, unless the context otherwise requires,—

There shall be an office to be called the State Insurance Office which, under the control of the Minister, shall be charged with the administration of this Act and with such other functions as may from time to time be lawfully conferred on it.

There shall from time to time be appointed under the provisions of the State Services Act 1962 a General Manager of the State Insurance Office, who shall be the administrative head of the Office.

The General Manager is hereby constituted a corporation sole under the style of “The State Insurance General Manager” with perpetual succession and a seal of office, and with power to acquire, hold, and alienate real or personal property and, subject to the provisions of this Act, to do and suffer all things that bodies corporate may do and suffer.

There may from time to time be appointed under the provisions of the State Services Act 1962 a Deputy General Manager of the State Insurance Office.

On the occurrence from any cause of a vacancy in the office of the General Manager (whether by reason of death, resignation, or otherwise), and so long as that vacancy continues, the Deputy shall have and may exercise all the powers, duties, and functions of the General Manager.

The Deputy General Manager shall act as such Deputy in the name and on behalf of the General Manager in case of the illness, absence, or other temporary incapacity of the General Manager, and also (notwithstanding that no such temporary incapacity exists) in all matters in respect of which he is authorised by the General Manager so to act.

Every such authorisation shall be in writing under the hand of the General Manager, and may be either general or in respect of any special matters.

The fact that the Deputy exercises any power, duty, or function of the General Manager, or does any act for the General Manager as aforesaid, shall be sufficient evidence of his authority so to do, and no person shall be concerned to inquire whether any occasion has arisen requiring or authorising him so to do, or be affected by notice that no such occasion has arisen.

There may from time to time be appointed under the provisions of the State Services Act 1962 such other employees as may be deemed necessary for the conduct of the business of the Office.

The General Manager may from time to time, by writing under his hand, delegate to any employee of the Office all or any of his functions, powers, authorities, discretions, rights, and duties, whether under this or any other Act or otherwise howsoever, including any functions, powers, authorities, rights, and duties delegated to him under any enactment or vested in him by virtue of any policy, instrument, or document of whatsoever nature:

Provided that the General Manager shall not delegate any power delegated to him under the State Services Act 1962 without the written consent of the State Services Commission.

Subject to any general or special directions given or conditions attached by the General Manager, the person to whom any functions, powers, authorities, discretions, rights, and duties are delegated under this section may exercise them or carry them out in the same manner and with the same effect as if they had been conferred or imposed on him directly and not by delegation.

Every person purporting to act pursuant to any delegation under this section shall, in the absence of proof to the contrary, be presumed to be acting in accordance with the terms of the delegation.

Any delegation under this section may be made to a specified person or to persons of a specified class, or may be made to the holder or holders for the time being of a specified office or class of offices.

Every delegation under this section shall be revocable at will, and no such delegation shall prevent the exercise of any function, power, authority, discretion, or right or the carrying out of any duty by the General Manager.

Every delegation under this section shall, until it is revoked, continue in force according to its tenor, notwithstanding the fact that the General Manager by whom it was made may have ceased to hold office, and shall continue to have effect as if made by his successor in office.

Nothing in this section shall derogate from the provisions of section 9 of this Act.

Whenever in any Act or otherwise the General Manager is appointed a member of any Board or similar body, any employee of the State Insurance Office having authority to act in his place may act for him as a member of that Board or body, and any such employee while so acting shall be deemed to be a member of the Board or body.

The fact that any such employee so attends and acts at any such meeting shall be conclusive proof of his authority so to do.

The General Manager may from time to time—

Nothing in the State Services Act 1962 or the Superannuation Act 1956 shall apply with respect to the appointment of any person under this section.

Neither the General Manager nor any employee, agent, or representative of the Office shall, in the absence of fraud or unless the act or omission amounts to an offence, be personally liable in respect of any act or thing done or omitted to be done by him in the exercise or bona fide purported exercise of any authority conferred by or pursuant to this Act.

The business of the State Insurance Office shall be to carry on any class of insurance business other than life insurance.

The Office shall not, without the consent of the Minister, carry on any insurance business outside New Zealand, Western Samoa, or the Cook Islands.

The General Manager may from time to time enter into, perform, and enforce any contracts which may be lawfully made for the purpose of carrying out the business of the Office, and generally do whatever he considers necessary in connection with or incidental to that business.

Any contract entered into by the General Manager shall be subject to such terms and conditions and shall provide for the payment of such premiums as the General Manager in his discretion thinks fit.

The General Manager in his discretion may enter into any contract or arrangement with any insurance broker in respect of the acceptance of insurance business from that broker.

The General Manager shall not, without the consent of the Minister, enter into any agreement with any insurance company or companies fixing the rate of premiums payable:

Provided that the General Manager may enter into any agreement with any such company to insure any person or property, in conjunction with that company, at such rates of premiums and subject to such terms and conditions as may be agreed to by the General Manager.

The General Manager, on behalf of the Office, may enter into any contract, agreement, or arrangement with any insurance company (other than a life insurance company) for the carrying on of any insurance business jointly with that company or for any matters necessary or desirable for the conduct of the business of the Office.

Without limiting the provisions of subsection (1) of this section, the General Manager may enter into contracts of reinsurance in respect of the whole or any part of any insurance business accepted by the Office.

The General Manager, with the consent of the Minister, may acquire or subscribe for shares or stock in any company with which an agreement in respect of reinsurance has been entered into under this Act.

The General Manager may exercise all rights and powers as the holder of shares and stock so acquired or subscribed for by him and may advance to or deposit with a company in which shares or stock have been acquired or subscribed for by the General Manager as aforesaid money required by the company for carrying on its business.

The General Manager may, with the consent of the Minister, give such guarantee, indemnity, or security as he thinks fit to or for the benefit of any company in which he has acquired or subscribed for shares or stock under this section.

The General Manager may from time to time, with the consent of the Minister, establish and carry on such branch offices for the purposes of the business of the Office, as he thinks fit and may, with the like consent, close any such branch office.

With the consent of the Minister, the General Manager may from time to time enter into agreements with any company carrying on in New Zealand any insurance business which the Office is authorised under this Act to carry on for the management by the General Manager of the business of that company on such terms and conditions as may be agreed upon between the company and the General Manager.

With the consent of the Minister, the General Manager may act as the agent of any company carrying on, whether in New Zealand or elsewhere, any insurance business which the Office is authorised under this Act to carry on.

The General Manager shall be described in all deeds, policies, instruments, and other documents of any kind relating to the business of the Office by his corporate name; and where the General Manager is authorised to enter into any contract or exercise any power, that authority may be exercised as follows:

Where the Deputy General Manager enters into any contract or exercises any power on behalf of the General Manager under any powers conferred on the Deputy General Manager in that behalf, he shall in the presence of one or more witnesses sign the contract or document exercising the power in the following manner:

with the addition, in the case of a contract or the exercise of a power required to be by deed or in writing under seal, of the seal of the General Manager. Every contract or document so executed shall be as valid and effectual according to its tenor as if it had been signed personally by the General Manager.

The General Manager may sue and be sued in all actions arising out of any act, matter, or thing whatsoever done or suffered in relation to the Office.

With respect to all such actions the following provisions shall apply:

No action brought by or against the General Manager shall abate or be dismissed on the ground of interest in the Judge or Magistrate hearing the same, by reason merely that the Judge or Magistrate is the holder of or otherwise interested in any policy granted by the General Manager.

Where in any contract of insurance entered into by the General Manager a provision is made for the submission of any dispute or difference to arbitration, nothing in this section shall be construed to limit or affect that provision.

There is hereby established a Board to be known as the State Insurance Investment Board, which shall consist of—

The members of the State Fire Insurance Board appointed under paragraph (c) of section 11 of the State Fire Insurance Act 1908 and in office immediately before the commencement of this Act shall be deemed to have been appointed under paragraph (d) of subsection (1) of this section and shall hold office as appointed members under this section for the residue of the term for which they were appointed.

Except as otherwise provided by this Act, every appointed member of the Board shall be appointed for a term of two years, but may from time to time be reappointed.

If any appointed member is absent without the leave of the Board from three consecutive meetings of the Board, he shall be deemed to have vacated his office on the Board.

Notwithstanding anything to the contrary in this Act, every appointed member, unless he sooner vacates his office under section 19 of this Act, shall continue in office until his successor comes into office.

Any appointed member may at any time be removed from office by the Governor-General for disability, bankruptcy, neglect of duty, or misconduct proved to the satisfaction of the Governor-General, or may at any time resign his office by written notice to the Minister.

If any appointed member dies or resigns, or is removed from or vacates his office, his office shall become vacant and the vacancy shall be deemed to be an extraordinary vacancy.

An extraordinary vacancy shall be filled in the manner in which the appointment to the vacant office was originally made.

Every person appointed to fill an extraordinary vacancy shall be appointed for the residue of the term for which the vacating member was appointed.

If the Minister is absent from any meeting of the Board he may request any other Minister of the Crown to attend the meeting in, his stead.

If the General Manager is absent from any meeting of the Board, he may appoint any employee of the Office to attend the meeting in his stead.

If the Secretary to the Treasury is absent from any meeting of the Board, he may appoint any officer of the Treasury to attend the meeting in his stead.

In any case in which the Minister is satisfied that any appointed member is incapacitated by illness, absence, or other sufficient cause from performing the duties of his office, the Minister may appoint a deputy to act for the member during his incapacity.

Any deputy appointed or acting under this section shall, while he acts as such, be deemed to be a member of the Board.

No appointment of a deputy, and no acts done by a deputy as such, and no acts done by the Board while any deputy is acting as such, shall in any proceedings be questioned on the ground that the occasion for his appointment or acting had not arisen or had ceased.

The Minister, or any other Minister of the Crown attending a meeting instead of the Minister, shall preside at all meetings of the Board at which he is present.

If the Minister is absent from any meeting of the Board and no other Minister attends that meeting in his stead, the General Manager or any employee of the Office attending instead of the General Manager shall be Chairman for that meeting.

The Board shall meet once in each month, at such time and place as the Board may from time to time determine, and shall also meet at such other times as the General Manager may appoint.

At all meetings of the Board the quorum necessary for the transaction of business shall be four members.

Every question before the Board shall be determined by a majority of the valid votes of the members present recorded thereon.

The Chairman at any meeting shall have a deliberative vote, and, in the case of an equality of votes, shall also have a casting vote.

Subject to the provisions of this Act and of any regulations thereunder, the Board may regulate its proceedings in such manner as it thinks fit.

No act or proceeding of the Board or of any person acting as a member of the Board shall be invalidated in consequence of there being a vacancy in the membership of the Board at the time of that act or proceeding, or of the subsequent discovery that there was some defect in the appointment of any person so acting, or that he was incapable of being or had ceased to be such a member, or that the Board had not held a meeting during any month.

The Board is hereby declared to be a statutory Board within the meaning of the Fees and Travelling Allowances Act 1951.

There shall be paid to the members of the Board (other than the Minister) remuneration by way of fees, salary, or allowances and travelling allowances and expenses in accordance with the Fees and Travelling Allowances Act 1951, and the provisions of that Act shall apply accordingly.

The general functions of the Board shall be to control and manage investments of the Office, and to exercise such functions as may be lawfully conferred on it by or under this or any other Act or otherwise howsoever.

Anything that may be done by resolution passed at a meeting of the Board may be done by the Board without a meeting by means of an entry in its minute book signed by at least four of its members entitled to vote at a meeting of the Board.

Any such entry may be signed on behalf of a member by his deputy if at the time of the signing thereof the deputy would have been entitled to attend and act at a meeting of the Board in the absence of the member if a meeting had then been held, and the fact that a deputy signs an entry shall, in the absence of proof to the contrary, be sufficient evidence that he was so entitled.

For the purposes of this section a memorandum permanently affixed in the minute book and purporting to have been signed for the purpose of becoming an entry therein shall be deemed to be an entry in the minute book, and any such entry may consist of several documents in like form each signed by one or more members or their deputies.

The General Manager shall report to and lay before the Board at each meeting all entries made in the minute book in accordance with this section since the previous meeting of the Board.

The Board may from time to time by resolution delegate any of its powers to the General Manager, either as to matters within its jurisdiction generally, or in any particular case or matter, or in any particular class of cases or matters:

Provided that where the Board so directs, the General Manager shall report to the Board at its next meeting any acts of authority exercised by him pursuant to any such delegation.

Subject to any general or special directions given by the Board, the General Manager may exercise any powers so delegated to him in the same manner and with the same effect as if they had been directly conferred on him by this Act and not by delegation.

Where the General Manager purports to act under any delegation under this section he shall, in the absence of proof to the contrary, be presumed to be acting within the terms of the delegation.

Any such delegation may be at any time revoked by the Board, in whole or in part, but that revocation shall not affect in any way anything done under the delegated authority.

No such delegation shall prevent the exercise by the Board itself of any of its powers under this Act.

Except where the Board has delegated its powers in that behalf to the General Manager, investments of the Office shall be made only pursuant to a resolution of the Board:

Provided that no such investment shall be made unless the Minister or his deputy or, if the Minister or his deputy has not voted on the resolution, the General Manager or his deputy votes in favour of the resolution to make the investment.

For the purposes of this Act there shall be established at the Reserve Bank an account to be known as the State Insurance Account which shall be operated on in such manner as the General Manager from time to time directs.

The General Manager may from time to time open such imprest or subsidiary bank accounts whether in New Zealand or elsewhere as he considers necessary for the conduct of the business of the Office and all references to the State Insurance Account shall include a reference to any account opened under the authority of this subsection.

All money received as a result of the operations of the State Insurance Office shall be either paid into the State Insurance Account or such subsidiary account as the General Manager directs.

The General Manager may obtain advances by way of overdraft in aid of the State Insurance Account from the Public Account or from the Reserve Bank of New Zealand or any other bank, for such periods and at such rates of interest as may be mutually agreed upon, by hypothecating securities held by him in respect of investments of the Office, or in such other mode as may be agreed upon.

All advances made from the Public Account pursuant to this section may be treated as an investment of money under the provisions of section 39 of the Public Revenues Act 1953, or may be charged against the Public Account Cash Balance Investment Account established pursuant to subsection (2) of that section.

Except as provided by subsection (2) of this section, all money payable out of the State Insurance Account shall be paid without further appropriation than this section.

All salaries and administrative expenses payable by the Office shall be payable out of money in the State Insurance Account appropriated by Parliament for the purpose.

If at any time the money in the State Insurance Account is insufficient to discharge the amounts chargeable under this section, the Minister of Finance on the requisition of the General Manager, countersigned by the Controller and Auditor-General, shall, without further appropriation than this section, issue the amount of the deficiency out of the Consolidated Fund to the credit of the State Insurance Account; and it shall be the duty of the Minister of Finance, within fourteen days after the issue of any such money from the Consolidated Fund, to certify every such deficiency to Parliament if Parliament is then sitting, and if not, then within fourteen days after the commencement of the next ensuing session.

Any money belonging to the Office may from time to time be invested—

The accounts of the State Insurance Office shall be audited by the Audit Office which for that purpose shall have all such powers as it has under the Public Revenues Act 1953 in respect of public money and public stores.

As soon as reasonably practicable after the end of each financial year the General Manager shall prepare a balance sheet and such other statements of account as are necessary to show fully the financial position of the State Insurance Office and the financial results of its operation during that year together with a report of the operations of the Office for that year.

A copy of the report, and of the accounts and balance sheet certified by the Audit Office, shall be laid before Parliament if then sitting, and, if not, within twenty-eight days after the commencement of the next ensuing session.

With the consent of the Board and the approval of the Minister, the General Manager may from time to time out of money in the State Insurance Account—

With the consent of the Board, the General Manager may from time to time—

With the consent of the Board and the approval of the Minister, the General Manager may from time to time sell, or exchange for other land or buildings, or otherwise dispose of any land or buildings acquired by him or any part thereof or any interest therein, either altogether or in lots, by public auction, public tender, or private contract, or partly by one and partly by any other such mode of disposition, and subject to such conditions as to title or evidence of title or mode of payment of purchase money as the General Manager thinks fit.

With the consent of the Board and the approval of the Minister, the General Manager may grant options to purchase or to take on lease any such land or buildings or any part thereof, but no such grant of option shall enure for a period exceeding six months from the date of the grant.

The surplus profits of the Office for each year ending with the thirty-first day of December shall be paid into a Reserve Fund, which with all accumulations of interest thereon shall be applied, held, and invested by the General Manager under the provisions of this Act.

Where the Minister considers that the funds of the Office are sufficient to meet all its actual and contingent liabilities he may, on the recommendation of the General Manager, direct that a rebate be allowed to persons insuring with the Office in respect of premiums, or of any class or classes of premiums, thereafter becoming payable.

The amount of any such rebate, and the terms and conditions under which the same shall be allowed, shall be determined by the Minister from time to time, and the decision of the Minister shall in every case be final.

Without affecting the generality of the foregoing provisions of this section, the Minister may, in his discretion, refuse to allow a rebate to any person who has made a claim under any insurance policy issued by the Office, or any other insurance policy of a similar nature issued by another insurer, during the period of three years immediately before the date when the premium in respect of which the rebate is claimed became payable.

All real and personal property, whether in New Zealand or elsewhere, which immediately before the commencement of this Act, was vested in or belonged to the State Fire Insurance Office or the Government Accident Insurance Office or the State Fire Insurance General Manager is hereby vested in the General Manager in his corporate name and capacity without conveyance, transfer, or assignment.

The District Land Registrar, on request by the General Manager, shall, with respect to land in New Zealand, make such entries in his registers and on any outstanding documents of title and generally do all such other things as may be necessary to give effect to the provisions of subsection (1) of this section.

All rights, obligations, and liabilities which immediately before the commencement of this Act were vested in or imposed upon the State Fire Insurance Office or the Government Accident Insurance Office or the State Fire Insurance General Manager are hereby vested in or imposed on the State Insurance Office or the General Manager, as the case may require.

Every reference to the State Fire Insurance Office or the Government Accident Insurance Office or the State Fire Insurance General Manager in any enactment or in any agreement, deed, instrument, application, notice, or other document whatsoever shall, unless the context otherwise requires, be read as a reference to the State Insurance Office or, as the case may require, the State Insurance General Manager.

Every reference to the State Fire Insurance Account or the Government Accident Insurance Account in any enactment or in any agreement, deed, instrument, application, notice, or other document whatsoever shall, unless the context otherwise requires, be read as a reference to the State Insurance Account.

The Governor-General may from time to time, by Order in Council, make regulations providing for such matters as are contemplated by or necessary for giving full effect to the provisions of this Act and for the due administration thereof.

The enactments specified in Part I of the Schedule to this Act are hereby repealed.

The regulations specified in Part II of the Schedule to this Act are hereby revoked.