Commonwealth Consolidated Acts

INSURANCE ACT 1973 - SECT 62ZZMC

Application of section

  (1)   This section applies if:

  (a)   APRA has made a transferred liabilities determination; and

  (b)   APRA has 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.

Receiving body entitled to total payment amount

  (2)   The receiving body is entitled to be paid by APRA an amount equal to the total payment amount specified in the determination.

Reduction of rights and entitlements of policyholder

  (3)   A policyholder's entitlement under this Division to be paid an amount in respect of a protected policy with the declared general insurer is reduced to nil, if the transfer of business will transfer the liability of the declared general insurer in respect of that protected policy.

Declared general insurer liable to APRA for total payment amount

  (4)   The declared general insurer is liable to pay to APRA an amount equal to the sum of the total payment amount specified in the determination.

  (5)   That liability is due and payable to APRA when the certificate of transfer comes into force.

  (6)   Despite subsection   62ZZL(1), APRA does not have the rights mentioned in that subsection.