80‑40 Meaning of nominal defendant settl80‑40 Meaning of nominal defendant settlement sharing arrangement etc.

80‑40 Meaning of nominal defendant settlement sharing arrangement etc.

Meaning of nominal defendant settlement sharing arrangement (1) A nominal defendant settlement sharing arrangement is an arrangement: (a) that relates to an accident or other incident or 2 or more related accidents or other incidents; and (b) to which the parties are *operators of a *compulsory third party scheme, where they are parties because the person involved in the accidents or incidents was not covered under an *insurance policy; and (c) under which: (i) one party (the managing operator) is to make one or more payments or supplies in settlement of a claim, under the compulsory third party scheme, relating to the accidents or incidents; and (ii) the other party, or one or more of the other parties, (each being a contributing operator) is to make a payment to the *managing operator in respect of that operator settling the claim. Meaning of managing operator’s payment or supply (2) If a payment or supply mentioned in subparagraph (1)(c)(i) is not a *CTP ancillary payment or supply, it is a managing operator’s payment or supply. Meaning of contributing operator’s payment (3) A payment mentioned in subparagraph (1)(c)(ii), to the extent that it is not a fee to the *managing operator for managing the process of making settlements under the arrangement, is a contributing operator’s payment.