New South Wales Consolidated Acts

GOVERNMENT INSURANCE OFFICE (PRIVATISATION) ACT 1991 - SECT 16

16 Government guarantee continued for existing or pre-sale policies etc

(1) The payment of all money under a policy or contract which, immediately before the repeal of section 8 of the GIO Act, was guaranteed by the State under that section continues to be guaranteed by the State. The guarantee continues despite the repeal of that section and despite the fact that GIO’s liabilities under the policy or contract have been transferred, whether by the operation of this Act or otherwise.

(2) In addition, the payment of all money under a policy or contract of a class approved from time to time by the Treasurer for the purposes of this section is guaranteed by the State. The policies or contracts that may be so approved are those issued or made:

(a) by GIO or a GIO subsidiary at any time when the State of New South Wales holds shares in GIO (being shares issued under Part 2) or at any later time if before that time GIO or the GIO subsidiary offered to issue or make the policies or contracts, or

(b) by the Self Insurance Corporation or other person to whom the excluded undertaking to which the policies or contracts relate is transferred under this Act.

(3) Any liability arising from the guarantee under this section is to be met out of the Consolidated Fund, which is appropriated accordingly.