The Strata Schemes Management Act 1996 is silent on this matter. Lannock’s state on their website that they may in certain circumstances advance a loan on the request of the Executive Committee or Strata Manager. Two things are quite clear though, you need to have adequate insurance maintained under the provisions of the Act, and it’s the OC at a general meeting of all owners which has to set the levy, that cannot be done by an EC or Strata Manager.
Generally loans are one option when the sinking fund balance is insufficient to provide for necessary maintenance. The other way to pay is of course by special levy. In the case of your example though, I would advise calling an EGM to reassess the admin fund levy contributions requirements for the current year. If you have some money in your sinking fund, that could be borrowed to pay the insurance premium, but the Act requires that such temporary borrowing be paid back within three months to the appropriate fund.