LEGAL PROFESSION ACT 1987 - SECT 44A Payments relating to HIH group insurance policies

This legislation has been repealed.

LEGAL PROFESSION ACT 1987 - SECT 44A

44A Payments relating to HIH group insurance policies

(1) Payments must be made by the company from the Indemnity Fund for the purpose of indemnifying any person who is insured under an approved insurance policy that was issued or renewed by an HIH group member, to the extent of the indemnity provided by the approved insurance policy.

Note: HIH Casualty and General Insurance Limited (HIH) was the insurer under the approved insurance policy for the period from 1 July 1998 to 1 July 2001. HIH, together with other HIH group members, were also insurers under approved policies that pre-date that period. A provisional liquidator was appointed in respect of the HIH and other HIH group members on 15 March 2001.

(2) On the making of such a payment from the Indemnity Fund, the company is subrogated to the rights and remedies of the insured person under the approved insurance policy, in connection with the subject matter of the payment, subject to the terms of any agreement entered into under this section.

(3) Subsection (2) extends, but is not limited to, a right or remedy against any of the following:

(a) an HIH group member,

(b) any insurer or re-insurer of an HIH group member,

(c) any person who, under any Act or other law, is liable for a failure of an HIH group member to satisfy its obligations under or in connection with an approved insurance policy.

(4) The company may exercise its rights and remedies under this section in its own name or in the name of an insured person.

(5) If the company exercises its rights and remedies under this section in the name of an insured person, the company is to indemnify the insured person against any liability incurred by the insured person as a result of the exercise of those rights and remedies.

(6) The Law Society and the company may enter into an agreement with an HIH group member (including a provisional liquidator or liquidator of an HIH group member), or with any insured person, in connection with the payment of amounts from the Indemnity Fund under this section.

(7) In particular, any such agreement may provide for the following:

(a) the assignment or subrogation to the company of the rights and remedies of an HIH group member or the insured person (or both) under or in connection with the approved insurance policy,

(b) the recovery by the company from an HIH group member of any amount paid from the Indemnity Fund under this section.

(8) Any payment made from the Indemnity Fund under this section, and any agreement entered into with an insured person under this section, does not prevent the recovery by the company from an HIH group member of any amount that would have been recoverable by the insured person under or in connection with the approved insurance policy had the payment not been made or the agreement not been entered into.

(9) Any amount recovered by the company as a result of the exercise of its functions under this section (including its functions under a subrogation or agreement referred to in this section) is to be paid into the Indemnity Fund. This does not apply to any amount that is payable to another person:

(a) under any other Act or law, or

(b) under any agreement referred to in this section, or

(c) under the regulations.

(10) Payments may be made from the Indemnity Fund for the purpose of meeting any reasonable costs and expenses incurred by the company in exercising its functions under this section, including its functions under a subrogation or agreement referred to in this section.