54CResidential building insurance

54C Residential building insurance Residential building insurance is insurance, or a similar kind of indemnity, that indemnifies the beneficiary of the residential building insurance against financial loss incurred in relation to prescribed residential building work because: (a) a residential builder has failed to complete the work or has contravened a consumer guarantee; and (b) any of the following events has occurred: (i) the builder has died, disappeared or become bankrupt or insolvent; (ii) the builder's registration has ceased for a reason specified by regulation. 54CA Approval of insurers The Minister may, by Gazette notice, approve any of the following to issue authorised RBI policies: (a) a body corporate authorised under the Insurance Act 1973 (Cth) to carry on insurance business; (b) a person entitled under a law in force in the Territory to carry on business in connection with providing residential building insurance. 54CB Authorised RBI policy (1) An authorised RBI policy is a policy or another form of agreement: (a) under which an approved insurer provides residential building insurance: (i) in accordance with this Division, regulations made under this Division and the directions of the Minister under section 54CG; and (ii) for the period prescribed by regulation; and (b) under which the whole of the premium payable for the period prescribed under paragraph (a)(ii) has been paid; and (c) in the form approved in writing by the Minister. Building Act 1993 59 (2) An approved insurer must not represent that an insurance policy or another form of agreement issued, or to be issued, by the insurer is an authorised RBI policy if the insurer knows it is not an authorised RBI policy. Maximum penalty: 250 penalty units. 54CC Provisions of authorised RBI policy (1) Subject to section 54CB(1), an approved insurer: (a) must specify in an authorised RBI policy the provisions required by regulation; and (b) may specify in the policy: (i) the provisions the insurer considers appropriate for the policy; and (ii) the premium payable by a residential builder under the policy. (2) An authorised RBI policy must provide for cover of a minimum amount as prescribed by regulation. (3) The approved insurer must submit to the Minister, for the Minister's approval, the general form and provisions for each type of policy the insurer intends to issue for providing residential building insurance. (4) An authorised RBI policy that contains a provision not approved by the Minister: (a) is not invalid only for that reason; but (b) the provision has no effect. (5) An authorised RBI policy that contains a provision that is inconsistent with this Act, the Regulations or a direction of the Minister under section 54G: (a) is not invalid only for that reason; but (b) is of no effect to the extent of the inconsistency. 54CD RBI policy document (1) When an approved insurer issues an authorised RBI policy, the insurer must give an RBI policy document to the residential builder who will be carrying out the prescribed residential building work covered by the policy. Building Act 1993 60 (2) An RBI policy document is a document, in the form approved in writing by the Minister, that: (a) is evidence of an authorised RBI policy; and (b) specifies the prescribed residential building work to which the authorised RBI policy relates. 54CE Annual statement about claims (1) An approved insurer must, within the period specified by regulation, give the Minister a written statement about claims on authorised RBI policies dealt with by the insurer during a financial year. (2) The statement must include the following information: (a) the number of claims; (b) the amount of each claim; (c) the number of claims that were paid; (d) the amount paid on each claim; (e) if a claim was rejected – the reason for its rejection. 54CF Notice of cessation as approved insurer (1) A person who was approved under section 54CA to issue authorised RBI policies ceases to be an approved insurer if the person: (a) ceases to be a body corporate authorised under the Insurance Act 1973 (Cth) to carry on insurance business; or (b) ceases to be entitled under a law in force in the Territory to carry on business in connection with providing residential building insurance. (2) A person must, within 7 days after an occurrence mentioned in subsection (1)(a) or (b), give written notice of the occurrence to the Minister. Maximum penalty: 50 penalty units. (3) An offence against subsection (2) is a regulatory offence. Building Act 1993 61 54CG Directions by Minister The Minister may: (a) give general directions to approved insurers in relation to authorised RBI policies; and (b) direct an approved insurer to include in an authorised RBI policy to be issued by the insurer the provisions specified by the Minister. 54CH Offence to give misleading information or document (1) A residential builder must not give an approved insurer information the builder knows is misleading information. Maximum penalty: 200 penalty units. (2) A residential builder must not give an approved insurer a document containing information the builder knows is misleading information. Maximum penalty: 200 penalty units. (3) However, subsection (2) does not apply if the residential builder, when giving the document to the approved insurer: (a) draws the misleading aspect of the document to the insurer's attention; and (b) to the extent to which the builder can reasonably do so – gives the insurer the information necessary to remedy the misleading aspect of the document. 54CI Insurer's liability not affected if given misleading information An approved insurer is not entitled to avoid liability under an authorised RBI policy only because the residential builder to whom the policy applies gave the insurer misleading information to obtain the policy. 54CJ Regulations A regulation may provide for matters relating to approved insurers and authorised RBI policies, including any of the following: (a) the criteria for giving approval under section 54CA; (b) provisions that must be included in an authorised RBI policy (a policy); (c) losses to be indemnified by a policy; Building Act 1993 62 (d) the beneficiaries to whom a policy must provide specified indemnity and persons not entitled to the benefit of an indemnity; (e) the notification by a beneficiary of an event giving rise to an entitlement to make a claim under a policy; (f) the making of a claim by a beneficiary under a policy; (g) criteria for establishing a residential builder's failure to complete prescribed residential building work or for establishing other events giving rise to an entitlement to make a claim under a policy; (h) limitations or reductions in liability; (i) recovery by an approved insurer of an amount paid by the insurer on a claim made by a beneficiary under a policy and subrogation of the beneficiary's rights. Division 4 Fidelity certificates and approved fidelity fund schemes