The case confirms that the discretion under s 562A(4) of the Corporations Act to displace rateable distribution of reinsurance proceeds among insurance creditors requires more than a long-standing commercial relationship between the insured and reinsurer; the insured must demonstrate circumstances comparable to those in the Amaca cases where the insurer was effectively a conduit. The case also raises but does not resolve the question whether amounts received under commutation agreements (as opposed to directly under reinsurance contracts) fall within s 562A(1)(b).
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