SGIC (Sale) Act 1995

The Treasurer guarantees the liability of a designated transferee company under a Part B policy if—

the policy was issued before the transferee company's date of divestiture; and

the liability falls due after the date of divestiture; and

a written demand on the transferee company for payment is made within 12 months after the liability falls due (but if the liability falls due on the making of a written demand for payment, no further demand is required under this paragraph).

This guarantee—

is subject to the amortisation principle; and

does not apply to—

a policy that has been reinstated after the company's date of divestiture; or

to any increase in liability under the policy arising after the date of divestiture under the terms of the policy or from an agreement made before, on or after the date of divestiture (in exercise of an option or otherwise); or

to a liability for life insurance if the person whose life is insured was not covered by the policy as at the date of divestiture.

A payment or transfer of money under a Part B policy that diminishes a transferee company's liability under the policy is taken to diminish a liability guaranteed under this section before it diminishes any other liability.