Reinsurance
86 Reinsurance
A self-insurer must, before the issue or renewal of a licence—
effect, with an approved insurer, a contract of reinsurance of liabilities approved by the Regulator; and
give the Regulator a copy of the contract certified by the approved insurer.
The self-insurer’s liability under the contract must be an amount chosen by the self-insurer that is not less than $300,000 or more than the set limit.
The approved insurer’s liability under the contract must be for an unlimited amount in excess of the self-insurer’s liability for each event that may happen during the period of reinsurance.
The contract—
must be current for the period of the licence; and
must not be cancelled or varied by the self-insurer, or the approved insurer, without the Regulator’s consent.
The approved insurer must endorse the contract to the effect that it can not be cancelled or varied without the Regulator’s consent.
In this section—
approved insurer means an insurer approved by the Australian Prudential Regulation Authority under the Insurance Act 1973 (Cwlth).
set limit means an amount of $1m or more set by the Regulator on application in the approved form by the self-insurer.
This Act’s bill:Explanatory memorandum
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