80‑5 Meaning of insurance policy settlem80‑5 Meaning of insurance policy settlement sharing arrangement etc.

80‑5 Meaning of insurance policy settlement sharing arrangement etc.

Meaning of insurance policy settlement sharing arrangement (1) An insurance policy 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 the *operators of a *compulsory third party scheme or schemes who have issued *insurance policies to persons involved in the accidents or incidents; 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 or one of the compulsory third party schemes, relating to the accidents or incidents; and (ii) each other party (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.