7Certain consequences of transfer

7 Certain consequences of transfer

Application of section (1) This section applies in relation to a liability that, under section 5 or 6, ceases to be a liability of one entity (the transferor) and becomes a liability of another entity (the receiver) at a particular time (the transfer time). Contracts of insurance (2) From the transfer time, any contract of insurance to which the transferor was, or was taken to be, a party immediately before the transfer time has effect in relation to the liability as if: (a) the receiver were substituted for the transferor as a party to the contract; and (b) any reference in the contract to the transferor were (except in relation to things that happened before that time) a reference to the receiver. Conduct of actions, enforcement of judgments etc. (3) Without limiting the generality of section 5 or 6: (a) if, at the transfer time, action is being taken relating to the liability—the receiver must, immediately after the transfer time, take over the conduct of that action; and (b) if, at the transfer time, action is being taken relating to the liability before a court—the receiver: (i) replaces the transferor as a party to the action from the transfer time; and (ii) may, if the receiver thinks it appropriate to do so, apply on or after the transfer time to the court to join any other person as a party to the action; and (iii) may, on or after the transfer time, conduct or settle the action; and (c) if, at the transfer time, a judgment relating to the liability has been obtained in favour of the transferor but not enforced—the receiver may take such steps as are necessary to enforce the judgment. Transferor must comply with certain requirements of receiver (4) The transferor must comply with any reasonable requirement of the receiver: (a) relating to the conduct of any action in respect of the liability; or (b) made for the purposes of assisting the receiver to manage the liability; including a reasonable requirement that the transferor sign any documents.