(1)

If:

(a)

a contract is a contract of insurance:

(i)

between 2 insurers; or

(ii)

between an insurer and an MDO that are not related bodies corporate; and

(b)

the contract is governed by the laws of a State or Territory;

the contract has effect as if the contract provided, and had at all times provided, that:

(c)

indemnity scheme payments; and

(d)

MDOs' and insurers' rights to indemnity scheme payments;

were to be disregarded for all purposes and, without limiting this, were to have no effect on the amounts payable under the contract by the insurer providing the insurance.

(2)

By force of this subsection, subsection (1) applies to a contract if it is entered into on or after the commencement of this Act.

(3)

By force of this subsection, subsection (1) applies to a contract if it was entered into before the commencement of this Act.