(1)  Subject to this section, and except as may otherwise be prescribed, the payment and acceptance of a premium that, under Part V , affords cover for any period in respect of a motor vehicle registered in this State has effect as a compulsory third party insurance policy in force during that period in respect of that vehicle while it is being used in any jurisdiction outside the State that is prescribed as a jurisdiction to which this section applies.

(2)  In relation to the use of a motor vehicle in a jurisdiction to which this section applies the compulsory third party insurance policy referred to in subsection (1) is the third party insurance policy required to be entered into under the laws of that jurisdiction in respect of that motor vehicle while it is being used on public roads or streets in that jurisdiction.

(3)  A third party insurance policy referred to in subsection (1) shall be deemed to contain, and to be subject to, such terms and conditions (including conditions as to the avoidance of liabilities under, or the cancellation of, the policy) as may be prescribed, but, notwithstanding anything in the foregoing provisions of this subsection, the policy has effect subject to, and in accordance with, the laws of the jurisdiction referred to in that subsection in which the motor vehicle is being used.