Commonwealth Consolidated Acts

INSURANCE ACT 1973 - SECT 62ZZMA

  (1)   APRA may make a determination (a transferred liabilities determination ) if:

  (a)   a general insurer is a declared general insurer as a result of the Minister having made a declaration under section   62ZZC; and

  (b)   APRA has made, or proposes to make, a determination under section   25 of the Financial Sector (Transfer and Restructure) Act 1999 (compulsory transfer determination) that there is to be a total transfer or partial transfer of business from the declared general insurer to a receiving body (within the meaning of that Act); and

  (c)   the transfer of business will transfer the liabilities of the declared general insurer in respect of one or more protected policies issued by the declared general insurer; and

  (d)   APRA is satisfied that it will be able to identify each of those protected policies; and

  (e)   APRA has worked out:

  (i)   APRA's reasonable estimate of the total amount (the FCS amount ) to which policyholders of those protected policies will be entitled (disregarding the determination) under sections   62ZZF and 62ZZG as a result of the Minister's declaration mentioned in paragraph   (a); and

  (ii)   APRA's reasonable estimate of the total amount (the administration amount ) of the costs that would be incurred by APRA in relation to the exercise of its powers and the performance of its functions under this Part relating to the declared general insurer if it did not make the determination; and

  (f)   APRA has worked out a total payment amount in accordance with section   62ZZMB; and

  (g)   APRA considers that it is reasonable in the circumstances to make the determination.

  (2)   However, APRA cannot make the determination if APRA has already issued a certificate of transfer under section   33 of the Financial Sector (Transfer and Restructure) Act 1999 stating that the transfer is to take effect.

  (3)   The determination must be in writing.

  (4)   The determination must specify the following:

  (a)   the declared general insurer;

  (b)   the receiving body;

  (c)   a description, in general or detailed terms, of all the protected policies of the declared general insurer;

  (d)   the FCS amount;

  (e)   the administration amount;

  (f)   the total payment amount;

  (g)   the FCS payment amount;

  (h)   the administration payment amount;

  (i)   any other information that APRA considers appropriate.

  (5)   A determination under subsection   (1) may be varied, but not revoked, in accordance with subsection   33(3) of the Acts Interpretation Act 1901 .

  (6)   A determination made under subsection   (1) is not a legislative instrument.