(1) Licensed insurers are to pay contributions to the Home Building InsurersGuarantee Fund in respect of a relevant period, and of an amount, determined
by the Authority. Contributions are to be made in accordance with the
arrangements prescribed by the regulations.
(2) The Authority is to have
regard to the sufficiency of the Fund to manage the risk of insurers becoming
insolvent when determining the contribution payable to the Fund by licensed
insurers for a relevant period.
(3) It is a condition of the licence of a
licensed insurer that the insurer pay contributions in accordance with this
section.
(4) A
"relevant period" is a financial year or any other period that the Authority
determines from time to time to be a relevant period for the purposes of this
section. Relevant periods can be determined so as to overlap but there must be
no gap between successive relevant periods and each relevant period must not
be longer than 12 months.
(5) The Authority may determine different
contributions for different classes of licensed insurers and may determine
that a licensed insurer or class of licensed insurers is not liable to pay a
contribution in respect of a relevant period.
(6) A contribution that is
payable under this section may be recovered by the Authority in a court of
competent jurisdiction as a debt due to the Authority.
(7) In this section--
"financial year" means a year commencing on 1 July.
