New South Wales Repealed Acts

This legislation has been repealed.

LEGAL PROFESSION ACT 1987 - SECT 44B

44B Payments relating to other defaulting insurers

(1) Payments may 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 a defaulting insurer, in accordance with arrangements approved from time to time by the Attorney General.

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

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

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

(b) the recovery by the company from a defaulting insurer of any amount paid from the Indemnity Fund under this section.

(4) 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 a defaulting insurer 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.

(5) Any amount recovered by the company as a result of the exercise of its functions under this section (including its functions under an 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.

(6) 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 an agreement referred to in this section.

(7) For the purposes of this section, an insurer under an approved insurance policy is a "defaulting insurer" if the company is satisfied that:

(a) the insurer is unwilling or unable to meet any claims or other liabilities under the approved insurance policy, or

(b) a liquidator or provisional liquidator has been appointed in respect of the insurer, or

(c) the insurer has been dissolved.