Commonwealth Consolidated Acts

INSURANCE ACT 1973 - SECT 92M

  (1)   The judicial trustee of a designated security trust fund may, by writing, formulate a scheme for the winding - up or dissolution, or both, of the fund.

  (2)   The scheme must be consistent with any principles that are set out in the fund's trust deed for the purposes of this section.

  (3)   The scheme may make provision for and in relation to the following matters:

  (a)   empowering the judicial trustee to make written determinations about the following matters:

  (i)   whether the fund has a liability to a holder of a contract of insurance covered by the fund;

  (ii)   if the fund has such a liability--the amount of that liability;

  (b)   requiring notification of determinations referred to in paragraph   (a) to be given to affected holders of contracts of insurance covered by the fund;

  (c)   providing that, for the purposes of the winding - up of a fund:

  (i)   the trustee of the fund is taken to have a liability for the amount specified in the determination to the person to whom the determination relates; and

  (ii)   that person is to be bound by the judicial trustee's determination;

  (d)   the manner in which the assets of the fund are to be applied, in a winding - up of the fund, to discharge liabilities of the fund.

  (4)   If the judicial trustee makes a determination that the fund has, or does not have, a liability to a holder of a contract of insurance covered by the fund, the Federal Court may, on application by the holder, review the determination.

  (5)   Despite paragraph   (3)(c), a person who is notified of an amount as mentioned in paragraph   (3)(b) may dispute the amount:

  (a)   in accordance with the Rules of Court of the Federal Court; or

  (b)   as the Federal Court otherwise directs in the particular case.

  (6)   Subsection   (3) does not limit subsection   (1).

  (7)   A scheme formulated under this section has no effect unless it is approved by the Federal Court on the application of the judicial trustee of the fund concerned.

  (8)   The Federal Court must not approve a scheme formulated under this section unless the Court is satisfied that the scheme is in the interests of the holders of contracts of insurance covered by the fund concerned.

  (9)   A designated security trust fund must not be wound up or dissolved except in accordance with a scheme formulated under this section.

  (10)   APRA and any person interested are entitled to be heard on an application under subsection   (7).