Suspended insurer selected after suspension
389 Suspended insurer selected after suspension
If a suspended insurer is selected under part 6.4 (Selecting an MAI insurer) to be the MAI insurer for an MAI policy, the MAI commissioner must allocate another insurer under subsection (3) or (4) to be the MAI insurer for the MAI policy.
The MAI commission—
must consult with the remaining licensed insurers about their capacity to underwrite the suspended insurer’s MAI policies; and
may consult with any insurer the MAI commission considers may be appropriate to become a licensed insurer; and
must have regard to the result of any consultation with APRA relevant to the matter.
The MAI commission must randomly allocate the MAI policies to the remaining licensed insurers in proportion to their shares of the market for MAI insurance.
However, the MAI commission must not allocate MAI policies, if—
the MAI commission decides that the remaining licensed insurers do not have capacity to underwrite the MAI policies; or
an insurer mentioned in subsection (2) (b) becomes a licensed insurer.
This Act’s bill:Explanatory statementSecond reading speech
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