Mediation of rejected premiums
321 Mediation of rejected premiums
If the MAI commission rejects a premium for an MAI policy under section 320, the matter must be mediated under this section by an accredited mediator.
The mediator must be a person who is independent of the MAI commission and the licensed insurer.
The mediator must be decided by agreement between the MAI commission and the licensed insurer.
The fees and expenses of the mediator must be paid—
as agreed between the MAI commission and the licensed insurer; or
if there is no agreement, by each of them in equal proportions.
If, as a result of the mediation, the MAI commission and the licensed insurer reach an agreement in relation to the premium, the MAI commission must, in writing to the mediator and the insurer, approve or reject the premium in accordance with the agreement.
Criteria for approving or rejecting the premium are in s 318.
In this section:
accredited mediator means a person who is entered as a mediator in the register of nationally accredited mediators maintained by the Mediator Standards Board.
Mediator Standards Board means the incorporated body registered under the Corporations Act as the Mediator Standards Board Limited ACN 145 829 812.
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