MOTOR ACCIDENT INSURANCE ACT 1994 - SECT 67
Effect of withdrawal or suspension on existing liabilities etc.
MOTOR ACCIDENT INSURANCE ACT 1994 - SECT 67
Effect of withdrawal or suspension on existing liabilities etc.
67 Effect of withdrawal or suspension on existing liabilities etc.
(1) The withdrawal or suspension of a licence does not affect liabilities that
had been incurred, or had accrued, before the day of withdrawal or suspension,
nor does it affect the insurer’s liabilities under CTP insurance policies
that came into force before the day of the withdrawal or suspension.
(2) An
insurer whose licence has been withdrawn, or is under suspension, is subject
to this Act and the industry deed in the same way and to the same extent as a
licensed insurer until all the insurer’s liabilities for CTP insurance
business have been fully satisfied.
(3) If an insurer whose licence has been
withdrawn, or is under suspension, is selected or re-selected to be the
insurer under a CTP insurance policy, some other insurer decided under
subsection (5) or (6) is to be the insurer under the insurance policy.
(4)
The commission—
(a) must consult with the remaining licensed insurers about
their capacity to underwrite the CTP insurance policies; and
(b) may consult
with any insurer the commission considers appropriate for the purpose of the
insurer becoming a licensed insurer; and
(c) must have regard to the results
of any consultation with APRA relevant to the matter.
(5) Subject to
subsection (6) , transport administration must randomly allocate the CTP
insurance policies to the remaining licensed insurers in proportion to their
shares of the market for CTP insurance.
(6) Subsection (5) does not apply,
and transport administration must allocate the CTP insurance policies as
decided by the commission, if—
(a) the commission decides that the remaining
licensed insurers do not have the capacity the commission considers
appropriate to underwrite the CTP insurance policies that would be randomly
allocated to them under subsection (5) ; or
(b) an insurer mentioned in
subsection (4) (b) becomes a licensed insurer.
(7) Subsections (3) , (5) and
(6) are subject to section 67A.
(8) This section is subject to the following
qualifications where a licence is withdrawn on the transfer, or because of the
transfer, of CTP insurance business under part 3 , division 5 —
(a) if the
transferor’s entire CTP business is transferred—this section does not
apply to the withdrawal of the licence;
(b) if part of the transferor’s CTP
business is transferred—this section applies to the withdrawal subject to
section 30(4) .
(9) In this section—
"APRA" means the Australian Prudential Regulation Authority established under
the Australian Prudential Regulation Authority Act 1998 (Cwlth) .
