Cancellation of licences
9.11 Cancellation of licences
The Authority may, by notice served on the licensed insurer, cancel a licence granted under this Division.
The Authority may cancel a licence for any reason it thinks fit, but must give the reasons for its decision.
Without affecting the generality of subsection (2), the Authority may cancel a licence for reasons that relate to the motor accidents scheme under this Act generally, whether or not the reasons relate to the efficiency and conduct of the licensed insurer.
The Authority must, as far as practicable, give a licensed insurer whose licence it proposes to cancel an opportunity to make representations on the matter.
A licence surrendered by a licensed insurer is not cancelled until the Authority approves of the surrender.
The Authority must not cancel a licence unless the Authority is satisfied that the licensed insurer has discharged all of its past, present and future liabilities—
under any third-party policy in respect of which it is the insurer, and
to the Motor Accidents Operational Fund under Division 10.4, and
to any other licensed insurer,
or that the insurer has provided security or entered into other arrangements satisfactory to the Authority in respect of those liabilities.
If the Authority is unable to cancel a licence because of any such liabilities, the Authority may, instead, impose a condition on the licence that prohibits the insurer from issuing any further third-party policies.
This Act’s bill:Explanatory memorandumSecond reading speech
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