Insurance Act 1973

allows the Minister to make a declaration about a general insurer:

that is under judicial management and APRA believes is insolvent; or

that is under statutory management under Division 1A of Part VB; or

for which an external administrator has been appointed under Chapter 5 of the Corporations Act 2001 and APRA believes is insolvent; and

entitles certain persons, who have valid claims connected with certain protected policies issued by a declared general insurer, to be paid certain amounts before they would receive payment in a winding up of the general insurer; and

substitutes APRA for those persons as a creditor of the declared general insurer to the extent of the entitlements; and

allows APRA to facilitate a transfer of business from the declared general insurer to a receiving body under the Financial Sector (Transfer and Restructure) Act 1999 by entitling the receiving body to amounts in respect of the protected policies.